The most common mistake people seem to make is investing solely based on the price alone and its short term historical trajectory, and nothing else. The second mistake is investing in assets that they don’t actually understand or believe in long term, are not planning to hold for at least 5 years, and will be tempted to sell if the price begins to fall in the short term. The third mistake is believing that they’ve already missed the boat on the most established and successful cryptocurrencies, like bitcoin and ethereum, and that consequently they should invest in much less established, much more speculative ‘altcoins’ to achieve truly outsized gains, for no truly good reason besides the fact that the price/market cap for the altcoin is a lot lower than bitcoin’s, and seems like it has more room to grow. The fourth mistake is day trading, and trying to capitalize on short term market movements. I’ll address each of these in turn, and why I believe them to be mistakes.
Cryptocurrencies are a completely digital form of money designed specifically to take advantage of the architecture of the internet. They can be used in ways that ordinary currencies can’t. Cryptocurrencies don’t rely on a standard financial institution to guarantee and verify transactions. Instead, cryptocurrency transactions are checked, or “confirmed,” by the computers of the users on the currency’s network. The computers that verify the transactions usually receive a small amount of currency as a reward, and the process of receiving rewards in exchange for verifying transactions is called “mining”. Mining is the main way how a new currency is produced here, and it works differently for different currencies.
Basecoin is a stable coin (not volatile cryptocurrency) whose money supply algorithmically contracts and expands based on market demand and a decentralized Consumer Price Index.  What this means in english is that this token is effectively managed by a robot central bank free from the political interference that real central banks face.  We still have not come across a stable coin that can act as an everyday usable cryptocurrency, but doesn’t wind up in fiascos involving the legality of the token (see Tether articles).  If the project works as intentioned, it could change modern currency markets.  One could reasonably pay wages in basecoin, or use basecoin to more effectively trade digital assets, but the best use case of the basecoin would be for the digital currency to alleviate the inflation madness occurring in countries like Venezuela or Zimbabwe.  
To buy/sell on Coinbase or GDAX, you need no wallet, as Coinbase/GDAX will keep your coins for you. You’ll want to enable Google Authenticator for two factor authentication and keep your passwords and your phone incredibly secure, however, as if someone hacks your account, all your money is gone for good with no recourse. This happens a lot. Use a super strong password that you have not used elsewhere and that no one knows and that you won’t forget.

This is when I first saw the light, and realized that investing in altcoins that I didn’t really believe in, and that didn’t really have any truly compelling reasons they would ever overtake bitcoin or deserve any level of market share, was an incredibly foolish move. It was certainly true that these altcoins did often gain on bitcoin and appreciated far more rapidly in many cases while the bubble held strong, but the moment it began to collapse, the altcoins were the first to go, and often fell all the way to zero.


Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world. Follow @DanCaplinger

Zcash is a crypto that aims to solve the same issues Monero does. Zcash leverages zero-knowledge proof constructions called zk-SNARKs. These constructions allow two users to exchange information without revealing their identities. The bitcoin blockchain contains records of the participants in a transaction, as well as the amount involved. On the other hand, Zcash’s blockchain shows only that a transaction took place, not who was involved or what the amount was.


The emergence of Bitcoin has sparked a debate about its future and that of other cryptocurrencies. Despite Bitcoin’s recent issues, its success since its 2009 launch has inspired the creation of alternative cryptocurrencies such as Litecoin, Ripple and MintChip. A cryptocurrency that aspires to become part of the mainstream financial system would have to satisfy very divergent criteria. While that possibility looks remote, there is little doubt that Bitcoin’s success or failure in dealing with the challenges it faces may determine the fortunes of other cryptocurrencies in the years ahead.
While the adjusted outlook lists cryptocurrency instability as a possible risk factor, it also states that “we continue to believe that such declines will not negatively impact the performance of broader financial assets, because cryptocurrencies represent just 0.3 percent of world GDP as of mid-2018.” The report adds that cryptocurrencies “would not retain value in their current incarnation.”
Writer and hustler. Adventurer and vagabond. Master of the handstand pushup. Conqueror of mountains, survivor of deserts and crusader for cheap escapades. Will has been on the road for nine years, travelling to far-flung lands on a budget. Today, he runs a number of online ventures. He is passionate about teaching others how to ditch their desks, hit the road and achieve real freedom by earning money online. Currently, Will is on a four year journey from the UK to Papua New Guinea; travelling through truly special countries such as Iran, Pakistan and Bhutan whilst running his businesses online.
NEW YORK, Aug. 2, 2017 /PRNewswire/ -- Grayscale Investments, LLC, the sponsor (the "Sponsor") of the Bitcoin Investment Trust (the "Trust") (OTCQX:GBTC), announced that a fork in the Bitcoin blockchain occurred yesterday, August 1, 2017. The Sponsor is monitoring events relating to the fork and the Bitcoin Cash resulting from the fork. A record date has not been established for the purposes of any distribution that may be made in connection with Bitcoin Cash. The Sponsor will announce a record date, if any, once established.
Update 1st October 2018: The cryptocurrency market has been volatile as ever over the last 6 months. Unless you are a skilled trader, it is harder to make money in a bear market than in a bull market – and we have been in a bear market for some time now. Personally, I have stopped trading and I am now focussing on growing my portfolio passively using a cryptocurrency trading bot – you can find out more about this here.  If you are new to crypto, read on!
You might buy in to your Ethereum position at $1000, you set your sell position $1300. Your sell order could take days, weeks, months, years or till the end of time to be filled. Once it has been filled, you then take that profit and you roll it over in to a new buy over at, say, $1100. Choosing good targets for your buy and sell orders is crucial if you want to be a successful swing trader but overall swing trading cryptocurrency is pretty easy – set your orders and then just wait.
OmiseGO (OMG) is a public financial technology that’s based on Ethereum. The concept of OMG is to enable peer-to-peer value exchange and payment service in real time across not only decentralized currencies but fiat money as well. OmiseGO allows anyone on its network to process financial transactions (payrolls, B2B, remittances, payments, etc.) in a much more inexpensive and decentralized manner.
Like any speculative investment, buying bitcoin at sky-high valuations is risky business. If you’re asking, “Is it smart to invest in bitcoin?” you might do well to heed this advice from billionaire investor Mark Cuban, who told MONEY, “It’s still very much a gamble.” You need to know that your bitcoin investment might lose money. If you’re not prepared to face that prospect, bitcoin investment might not be for you.

Disclaimer: I am not a professional (or even a veteran) trader. I am an intermediate trader with a passion for cryptocurrency. I am disclosing my own ventures in crypto because cryptocurrency trading does make up a chunk of my online income and I want to be 100% transparent with you when it comes to making money online. Investing in cryptocurrencies carries a risk – you may lose some or all of your investment. Always do your own research and draw your own conclusions. Again – this article is aimed purely at advising; draw your own conclusions on whether cryptocurrency trading is right for you.


TIP: In cases where the price of a coin (or another asset) is plunging slowly towards its doom, buying the bottom of a dip can be hard if not impossible to pull off. In cases like this, you more-so end up dollar cost averaging down the side of the mountain. Watching any asset lose value is stressful, but there is a lot of precedent for this paying off in cryptocurrency when we are talking about buying the dips on top coins like Bitcoin, Ethereum, and Ripple. No plan is foolproof, but the logic here is this: It is better to mistime buys at the bottom than to mistime buys at the top. Thus, buy the dips…

Nevertheless, NVIDIA and AMD aren't absolved from downside, either. In fact, you could say the two are stuck in a pervasive cryptocurrency conundrum. As a result of the high demand for GPUs, graphics card prices have shot through the roof. In doing so, it's angered their core gaming customers, who are being forced to pay significant premiums for graphics cards at the moment. These companies could risk alienating their core customer and do nothing or they could create a GPU specific for miners, hurting the growth they've received from miners by increasing supply. 

No. 1: U.S. regulators recently have been constructive about crypto: Regulators across the world have realized that cryptocurrencies are here to stay. Still, there are numerous issues to negotiate: 1) Identifying players who have been defrauding investors with phony initial coin offerings (ICOs). 2) Defining the differences between utility tokens and security tokens; 3) Working with crypto businesses to create appropriate regulations to protect investors without hurting innovation. Overall, the industry and regulators are heading in the right direction, though it could take a few more years before they develop common standards.

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