Implementing cryptocurrency payments into a small business venture can have numerous advantages for both the business and its customers. Using cryptocurrencies as a payment method lowers fees, makes transactions faster, and allows anonymous payments.

This article will go over how to implement cryptocurrencies into your small business's day-to-day operations. It goes beyond just making payments with Bitcoin, as there's much more that cryptocurrencies can offer a small business owner. Small businesses should also lean into the unique features the payments provide to the customers, as they need to compete for every potential customer, often against much bigger companies.

Accept Bitcoin Payments

 When small business owners learn to make money with Bitcoin, they usually start by simply providing the same services and goods but allow users to pay for them with crypto. It has many benefits for both the business and the consumer.

Payments made with Bitcoin are faster, safer, and can be made without providing personal information. It also helps small businesses position themselves in the market as a business that is open to crypto users – a younger and more affluent demographic.

Discounts for Crypto Users

One of the ways to implement the use of a new payment option is to link it with a discount. 

The discount can be limited based on the amount that's being transferred, a specific set of products or services, or a one-time payment. It can also be limited to a set time while the business is transitioning to crypto payments.

The cost of these discounts can be offset by the lower cost of transfers that come with using Bitcoin, but also with increased interest and a new customer base. 

It's also important to take into account that the value of cryptocurrencies fluctuates and can affect the discount value.

Crypto in a Physical Location

This option is often overlooked as crypto payments are first and foremost associated with online payments. However, crypto ATMs are a useful feature and a way for businesses based in physical locations to implement them organically.

This allows customers to buy cryptocurrencies with cash or sell their digital assets for fiat currency. As is the case with any other business based on a physical location, the key feature to consider is the location itself. If the company is located in an area where there's a need for this service, it will do well.

 Launching an ICO

 If your business is offering a unique service or a product, one of the ways to finance it and earn money is to create an ICO that will stand for fractal ownership of that product. ICO stands for Initial Coin Offering, and in essence, businesses create their crypto coin that will represent ownership over a certain asset.

This is a complex process, and businesses should go into it only if they've already built a community of users around their business. It should be done with proper legal guidance and based on a solid whitepaper that goes over objectives, technology, tokenomics, roadmap, team members, and legal considerations.

Implement Blockchain Technology

 Blockchain technology can have a lot of uses for a small business. Terms of the contract between a user and a business can be written into the contract. That way, the payments made between them are automated and completed as soon as the set terms are met.

It can be used to automate the process when it comes to agreements and transactions, supply chain management, or digital identity verification. For a small business, streamlining all of these processes reduces the cost of running a company, and for a user, it makes the interaction with the business smoother and faster.

Blockchain-Based Loyalty Programs

 Loyalty programs are based on a simple proposition – the users, clients, and customers who are loyal to a small business are rewarded for it with discounts and special offers. The loyalty program can come in many different forms – businesses often offer points for each purchase a customer makes. These points can later be traded for discounts or access to limited goods or services.

Blockchain can play a role in setting up such a system, as it can automate it and make it more transparent for all the parties involved. Transfers made with blockchain are part of an immutable ledger, and they can be automated to make the loyalty program instant.

Donations Made in Crypto

 Bitcoin can be used to make any payments; otherwise, it can be made with fiat money. 

One of the best ways small businesses can create a meaningful community around their customer base is to take part in charitable efforts and accept donations.

Using cryptocurrencies to make donations comes with the same benefits you would get from making purchases this way. The payments are faster, more secure, and less expensive. Many small businesses also let their users and customers choose the charitable causes the company will donate to.

Paying Suppliers or Employees

 Small businesses haven't started paying their employees in crypto in large numbers, although large companies are already doing so. A good way to implement the use of crypto gradually is for businesses to try to pay a portion of their salaries in fiat money and a portion in Bitcoin.

When it comes to paying suppliers, the practice is more common. It allows the payments to be automated, and blockchain makes supply chain management more transparent and less labour-intensive.

Affiliate Programs 

Affiliate programs are a common marketing technique for small companies. They are used to reward customers and clients that bring in new business. The rewards can come in many different shapes and sizes, but they are usually some form of discount or access to special offers.

An affiliate program can be used to bring in customers who will use cryptocurrencies as a payment option. It's especially useful for businesses that are trying to build up a base of users that commonly use cryptocurrencies. The rewards can be discounts, just as with fiat money, or they can be actual crypto payments.

Educate the Customers

It may seem like a complicated and expensive endeavour, but in the long run, educating potential customers and users about the use of crypto goes a long way. 

The technology is no longer new, and cryptocurrencies have a mainstream appeal. It's just a matter of showing that to your customers.

At the same time, small business owners should make sure that they are educated about the latest developments in crypto. It's important to keep following the industry news and to do so from respectable sources.

Conclusion

 Small businesses can benefit from introducing cryptocurrencies to their day-to-day business practices. There are plenty of users out there, and Bitcoin is now widely used by mainstream financial institutions. Introducing crypto to your business also opens it up to a new set of clients and customers who are used to making payments this way.

There are many ways to do it, starting from introducing it as a payment method, paying salaries and suppliers with crypto, and providing affiliate and marketing programs for those who use it. Businesses can also use blockchain technology to automate payments and make them more transparent.

Crypto Futures: Trading Tactics for Modern Investors

Futures contracts are a unique way for investors to guess how much digital assets will be worth without actually having them. This is especially useful in the volatile world of cryptocurrency trade. Traditional trading involves instantaneous asset purchases and sales, but futures trading involves participants agreeing to buy or sell an item at a predetermined price on a future date. 

Successful investors in this ever-changing market have a deep familiarity with the fundamental commercial and technical aspects that determine Bitcoin's value. Traders can make money on both rising and dropping markets, which is why it is so popular with modern investors who want to get the best returns and spread out their holdings.

Strategies for Achieving Goals

It can be hard to find your way around bitcoin futures trading, but investors can get the most out of their trading if they know the right tactics. It is important to understand how the market works and what things affect Bitcoin values. For buyers, staying up to date on news and changes in the Bitcoin world can also give them useful information that helps them make smart choices.

To improve their chances of success in the bitcoin futures market, modern buyers can do the following:

• Technical Review: Use technical measures, like moving averages, MACD, and RSI, to find trends and possible times to enter and leave the market.
• Risk management includes being smart about debt and putting in place stop-loss orders to lower the amount of money that could be lost.
• The mood on the market: Stay up to date on market news and events so you can predict how prices will move and make smart buying decisions.
• To lower your risk and increase your possible returns, invest in several different cryptocurrencies. This is known as variety.
• Keeping your cool: Stick to your trade plan and don't make hasty choices based on how you feel or how the market is changing.

Margin and Leverage Trading

An integral part of futures trading is leverage, which allows one to manage a larger position with a relatively small starting investment. Although using leverage might increase profits, there is a larger potential that you will experience significant losses if the market moves against you. Therefore, it is essential to use leverage with caution and to continuously use a clearly defined risk management plan.

When selecting a crypto futures trading platform, it's critical to consider the margin requirements, fee schedule, and possible leverage of the platform. Certain platforms may be less profitable despite having substantial leverage due to their higher costs. To safeguard your money, use a platform that has strong risk management features like stop-loss orders.

Hedging Strategies

Hedging is an important strategy employed by futures traders to safeguard their positions from adverse market price movements. One frequent hedging approach is to take the opposite position in the spot market to reduce the risk of a futures contract. To hedge a position, a trader long on a cryptocurrency futures contract might short the same asset on the spot market.

Options contracts are yet another way to protect yourself. These agreements provide the holder the freedom, but not the obligation, to buy or sell an asset on or before a specified date for a specific price. Purchasing put options allows traders to protect their long holdings from downside risk, and purchasing call options protects their short positions from upside danger.

Portfolio diversification may involve adding assets that have a negative correlation with the bitcoin market in addition to hedging. During market downturns, holding gold or government bonds, for example, can help offset losses in a portfolio heavily weighted towards cryptocurrencies.

Outcome

Having a solid understanding of the market and trading with discipline are essential for handling the bitcoin futures market. By employing the right techniques and strategies, modern investors may maximize their returns and raise their chances of success. Reducing risk requires employing risk management and technical analysis techniques, staying up to date on market trends and developments, and considering leverage and hedging strategies.

Because choosing the finest cryptocurrency trading platform has an impact on available leverage, margin requirements, and fee schedules, it is also crucial. In the end, traders should never stray from their discipline and trading plan, refraining from making hasty decisions affected by their emotions or outside market noise. Trading cryptocurrency futures may be a profitable venture for modern investors looking to diversify their holdings and take advantage of the chances provided by the digital asset market if they employ the right method.

Cryptocurrencies, such as Bitcoin, Ethereum and Litecoin, offer traders the chance to gain exposure to digital assets with high levels of volatility and potential returns.

The city of Dubai has shown a clear interest in blockchain and digital currencies - making it the perfect destination for traders looking to gain access to this burgeoning asset class. This guide will explore the ins and outs of crypto forex trading in Dubai, discussing things potential investors and traders need to know about cryptocurrency trading in the city.

Risk management

Traders in Dubai must be aware of the risks associated with cryptocurrency trading. As with any investment, there are general market risks like liquidity and volatility that investors should consider when entering a trade. Traders must also consider the potential for regulatory changes or other factors impacting their investments. Crypto forex is not considered legal tender in Dubai, so traders should know the potential for losses due to government regulation or other external factors. Understanding the mechanics behind crypto forex trading is crucial to effectively manage risk and minimise exposure to possible losses.

Traders must devise a strategy that includes stopping loss orders and taking profit orders to protect their capital and ensure that their positions do not remain open for too long. Leverage is also a risk for traders in Dubai, as higher leverage levels can result in more significant losses if the market moves against them.

Choosing an exchange

When trading crypto forex in Dubai, it is vital to choose a suitable exchange. Various cryptocurrency exchanges are available in the city, offering different features and services for traders. The most crucial factor to consider when selecting an exchange is security. It is essential to choose one that is reputable and secure. Traders should compare fees associated with each exchange to ensure they get the best deal possible.

It would also help to consider liquidity, geography restrictions, ease of use and customer support. Traders should also look for exchanges offering low-latency trading, which can be critical when trading in fast-paced markets.

Doing research

Research is a crucial component of successful crypto forex trading in Dubai. Investors should begin by familiarising themselves with the basics of cryptocurrency trading, such as how to read charts and understand different technical indicators. Research will also help inform traders about current market conditions and possible trading opportunities.

In addition, investors should take advantage of industry news sources and keep up-to-date with significant developments in the crypto forex space. By staying informed, traders are more likely to make informed decisions and gain a competitive edge over other traders.

Setting up an account

Setting up an account for crypto forex trading in Dubai is relatively straightforward. The first step is choosing an exchange that fits your needs and preferences and registering an account with the chosen platform. Once registered, traders must complete the Know Your Customer (KYC) process and verify their identity with the exchange.

After completing the KYC process, investors must fund their accounts by transferring money from a bank account or credit card. Traders can start trading crypto with their newly funded account once all verification processes have been completed.

Placing orders

Placing orders is an essential component of successful crypto forex trading in Dubai. You can place two types of orders when you trade crypto - limit orders and market orders. Limit orders allow the trader to specify the price at which they want to buy or sell a particular asset, while market orders are executed at the current market price.

It is important to remember that crypto forex markets are highly volatile, and prices can fluctuate rapidly. As such, traders need to familiarise themselves with order types and how they work to effectively manage their positions in different market conditions.

Withdrawing profits

Once traders have started trading crypto forex in Dubai and made a profit, they must understand the process for withdrawing their funds. Depending on the chosen exchange, withdrawals can take up to several days to complete due to verification processes. Withdrawal fees may also be charged depending on the platform.

Traders should understand the withdrawal process and fees associated with the chosen exchange before placing trades. It will help ensure that their funds are available when needed and that their profits are not diminished due to costly withdrawal fees.

In conclusion

Crypto forex trading in Dubai can be a lucrative investment opportunity for individuals seeking to diversify their portfolios and access digital assets with high levels of volatility and potential returns. However, traders must understand the risks associated with this type of trading and be aware of the factors to consider when selecting a suitable exchange.

Traders should familiarise themselves with placing orders and withdrawing profits from their trading accounts to effectively manage their positions and potentially maximise returns. With the proper education and the right utilisation of crypto forex trading strategy, traders can make the most of their investments.

Basics Of Cryptocurrency Programming

First and foremost, it is important to understand the basic concepts of cryptocurrency programming. Cryptocurrencies are digital tokens that are secured with cryptography, meaning they are protected from counterfeiting and double-spending. These tokens are created and stored on a public ledger called a blockchain and can be exchanged for goods and services.

A cryptocurrency program is a software-based system that allows users to buy, sell, and manage their digital tokens. A search engine or a mobile app may often be used to access these programmes. Popular programs include Coinbase and Binance, which allow users to buy, sell, and trade digital tokens.

The process of programming a cryptocurrency is complex and requires a thorough understanding of computer programming languages and cryptography. Developers must learn the fundamentals of blockchain technology, as well as the basics of the programming language used to write the code. 

Crypto Market Analysis

A thorough understanding of the cryptocurrency market is also essential. Developers must be able to analyze the data and market trends to create an effective program. In addition, they must understand the economic principles of supply and demand, as well as the impact of external factors such as government regulations. 

Finally, developers must be aware of the security risks associated with cryptocurrency programming. Hackers can exploit vulnerabilities in the code for malicious purposes, such as stealing funds or mining for coins. Developers need to understand the risks associated with programming and take the necessary steps to mitigate them.

Cryptocurrency Programming Vs. Cryptocurrency Mining

Cryptocurrency programming and cryptocurrency mining are two different ways to participate in the cryptocurrency ecosystem. Although they both play a significant role in the bitcoin ecosystem, there are some significant distinctions between them. Let's take a closer look at the differences between cryptocurrency programming and cryptocurrency mining.

Cryptocurrency Programming

Cryptocurrency programming involves the development of software applications and protocols that enable the use of cryptocurrency. Creating apps for purses, swaps, and other venues where bitcoin is traded and stored falls under this category. It also includes developing the underlying blockchain technology and protocols that enable the secure transfer of funds in the form of cryptocurrency.

Cryptocurrency programming requires a significant amount of technical knowledge and experience in coding and software development. To design safe and effective code, programmers should be able to comprehend the standards and core blockchain solutions. Visit the site to know more about cryptocurrencies here.

Cryptocurrency Mining

Guaranteeing blockchain transactions is the method of mining bitcoin, which is an essential component of the global financial system. The cryptographic problems that are used to accept payments and add them to the ledger are solved by miners using specialized gear. Cryptocurrency is given to miners as payment for their labour.

Mining calls for a substantial investment in computation and energy. In addition, specific gear and an understanding of the bitcoin network are needed. As the puzzles become more complex, more computing power is required to solve them.

Final Words

In conclusion, cryptocurrency programming is a complex field that requires a great degree of knowledge and expertise. By understanding the fundamentals of blockchain technology, cryptocurrency markets, and security considerations, developers can create effective programs that can help them make money and be successful in the world of cryptocurrency.

Cryptocurrency programming and cryptocurrency mining are two different ways to participate in the cryptocurrency ecosystem. Both are important components of the cryptocurrency economy, but they require different skill sets and have different rewards. Cryptocurrency programming requires technical knowledge and coding experience, while cryptocurrency mining requires computing power and specialized hardware.

How Long Will Crypto Winter Last?

The last crypto winter lasted for 2 years, it may have lasted even longer if COVID-19 hadn’t sparked DeFi summer in July of 2020. Prior crypto winter cycles only lasted for between 111-547 days, with the average being skewing longer during the last three downturns. The catalyst for a return to the bull market is novel utility, and with more people developing within the ecosystem than ever before, we’d expect it to retain the 15-18 month recovery timeline, and this time around with consumer products breaking through to larger mainstream recognition, though the larger macro-economic environment is a major factor in its recovery as well.

Recovering from crypto winter will continue to be far more tied to the larger environment, specifically the performance and sentiment around the tech sector, which is typically seen as growth stocks and will now need to tamp down growth expenses and shape up its core operations to become an attractive investment to buyers with a risk-averse mindset. This same mindset will affect investing in cryptos and how capital is allocated throughout this crypto winter. Fortunately for those with software development skill sets, writing code is a function of investing time to a goal and can survive in a low funding environment. Teams that are developing software products that address real problems will attract the capital necessary to grow when the time comes, and those that can develop financial traction before raising funds will be in the strongest positions to receive investment. 

What will mark the return of a crypto bull market?

Ultimately the money that often gets spent in wasteful ways during bull market cycles has disappeared, and teams must be far more strategic about deploying capital and focused on building sustainable business models around their solutions if they are going to win out. If we look at historical trends of how long it takes software companies to acquire their first million users or customers, a clear benchmark of success and some modicum of product market fit, we should begin to see the light at the end of the crypto bear market in 18-24 months as projects work towards those noteworthy goals. 1-2 breakout successes from a product perspective could be enough to ignite a longer-term bull market rally.

TradFi + DeFi = New Future

As to how the crypto market will impact the traditional markets moving forward, it’s expected that more and more companies will have exposure to cryptocurrencies on their balance sheets, particularly data-driven organisations whose data silos would benefit from the tokenisation of these assets and the new revenue streams available to them monetising those assets. Forward-looking tech companies will look past the threat of disintermediation by opening up access to their proprietary data models and allowing users to leverage their personal data on competing platforms in order to establish their brand as a leader in the emerging tech space or risk getting left behind. Again, because most software systems are derivations of one another with a fairly common and understood use case they function more as a commodity or utility than a traditional product or service and can be delivered for a fairly cheap cost, meaning that many of these systems will compete on brand of which legacy tech companies would have the first mover advantage with.

There are a lot of externalities that could change the landscape and trajectory of the economic environment for crypto and other financial markets, and we likely have not yet seen the bottom of this crypto winter, so bundle up.

About the author: Connor Borrego is a Midwest Based Technology Entrepreneur. He received his Master’s of Science in Business Intelligence Systems from Syracuse University, and he received his Bachelor of the Art’s in Entrepreneurial Communications from the University of Michigan. He has worked for the past decade in the advertising technology industry, most notably as a Startup Growth Consultant for Google. Currently, Connor is commercialising a blockchain-powered software to help musicians increase their earnings as an artist and grow their online audience.

According to CoinDesk data, the world’s largest cryptocurrency briefly plunged from $22,738 to below $21,500 at 2:30 am ET before recovering slightly to just under $22,000.

Ethereum plunged from $1,808 to $1,728 at the same time before a muted rebound. By 3:05 am ET, it stood at $1,733.

Binance Coin, Cardano, and Solana also fell, though the cause of the widespread crypto drop was not immediately clear.

On Tuesday, Bitcoin and Ether ended in the red, though Ether is up more than 100% since mid-June amid investor preparation for a significant upgrade in the Ethereum network.

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Evaluation of market sentiment is an analysis that uses the information to attempt to project the future price performance in the crypto or other kinds of the financial market. 

By monitoring the characteristics of a financial market and the people’s general perspective, you may be able to understand the intensity of enthusiasm or perturbation over a particular crypto asset. 

This can also guide many investors in making worthwhile decisions in determining the ideal moment to invest or exit their current positions or holdings in the market. 

Market Sentiment In Cryptocurrency

Market sentiment refers to the perspective or opinion expressed about the market's current status. It shows the emotional overview of the attitudes and opinions of the investors towards a crypto asset. 

It transmits the mass psychology of those who are involved in the trading and development of the digital currency, as revealed through social and trading metrics. Analysis of the market sentiment in digital currencies is essentially a psychological assessment of several factors that hugely impact the assets' price movements. 

How investors feel about a certain digital asset can have tangible effects on the market cycles and crypto assets' value. If many traders and investors take action in these thoughts, ideas, and feelings that they convey, whether they are based on factual information or not, it will surely have weighty consequences. 

For instance, Elon Musk's tweets on social media have a huge influence on the price of Bitcoin, which in turn created a bullish sentiment. 

When traders and investors evaluate the feelings and attitudes of others towards a particular crypto asset, it’s called market sentiment. Sentiment in the financial market doesn’t use systematic and technological evaluation. 

Attitudes towards a financial market do not always relate to the quantifiable data but rather convey the collective emotion of the masses. 

How Crypto Market Sentiment Is Measured

Psychological factors have a significant impact and influence on any financial market in determining the assets' price value. Doing a thorough analysis and in-depth study of the market mood indicators can greatly help you make informed and smart decisions in your crypto investments.

How crypto investors choose, a crypto exchange can have an effect on the crypto market sentiment. Suppose an exchange encounters hack and crash or collapse issues. In that case, many traders and investors in the crypto industry will lose their trust, and this might psychologically affect their investment decisions, which can also result in negative market sentiment.  

That’s why many new and experienced investors turn to bitcoin-profit.app, as their brokers can provide you with top-notch tools that could help you reach your trading goals. If you are curious to learn more, you can visit their terms and conditions page.

Here are some ways how market sentiments are measured:

Bullish Percent Index (BPI)

The bullish percent index gauges the number of equities that show bullish patterns. It is predicated on diagram figures. The market sentiment is considered to be highly enthusiastic if the BPI hits an index level of 80% or more, thus contemplating an asset's price as overvalued. 

Any intermediate asset has a positive proportion of around 50%. Meanwhile, when it reaches 20% or lower, the market sentiment is considered unfavourable and shows signs that the marketplace has been overbought. 

VIX Index (Volatility Index)

The volatility index (VIX) is also known as the fear index. This is gauged by the price options on the financial market. A surging VIX shows higher demand for insurance within the marketplace, whereas increased volatility shows that traders or investors are feeling the desire to cover themselves against the risk. To better measure whether the index is relatively high or low, moving averages are added to the volatility index. 

Moving Averages (MA)

Many investors frequently look at the 50-day and the 200-day moving average, respectively, when studying the nature of the market. Every time the 50-day moving average crosses over the 200-day moving average, it indicates that the movement has changed to an upward direction. 

This is commonly known as the "golden cross" that results in strong optimism and confidence in the financial market. However, when the 50-day moving average crosses below the 200-day moving average, it shows that an asset's price is likely to drop, resulting in a pessimistic mood and attitude among traders and investors. 

Conclusion

To have a deeper understanding and analysis of the market’s sentiment, an investor or trader must collect the ideas, views, and perceptions of the people in the crypto industry or any other financial market. 

Evaluating the market sentiment can be beneficial, but you should not set your entire focus solely on this factor. There are still a lot of things to consider when analysing the assets’ price performance. 

But don't worry. Keep reading because we've created this guide to help you understand the key difference between Bitcoin and Ethereum. After reading this guide, you'll be able to make an informed decision about which cryptocurrency is right for you.

Different Use Cases Of Bitcoin And Ethereum

Wondering what the use cases of both projects are? Let's take a look now:

Bitcoin's Use Cases

Bitcoin was created as a peer-to-peer electronic cash system. Its use cases include:

1. P2P Payments

You can use Bitcoin to make fast and convenient P2P payments. All you need is the recipient's Bitcoin address. You can learn more in this thorough guide.

2. Store Of Value

Bitcoin is often referred to as "digital gold" due to its scarcity and the government's inability to manipulate it. This makes it an excellent store of value for long-term investment.

3. Borderless Transactions

The beauty of Bitcoin is that it knows no borders. Whether you're sending money to a friend in another country or paying for goods and services online, you can use Bitcoin to make borderless transactions with ease. 

Ethereum's Use Cases

Ethereum was created as a decentralised platform that runs smart contracts. Its use cases include:

1. Decentralised Applications (dApps)

dApps are applications that run on the Ethereum network. They are often compared to traditional apps, but they are more secure and decentralised.

2. Initial Coin Offerings (ICOs)

ICOs are a popular way to raise funds for blockchain projects. They involve selling tokens in exchange for Ether.

3. Smart Contracts

A smart contract is a self-executing contract that you can use to automate transactions or create decentralised applications. This type of contract is based on a set of predetermined conditions, which are then enforced by the code of the contract. 

4. Decentralised Finance (DeFi)

DeFi is a growing sector that refers to the use of blockchain technology to provide financial services. This includes lending, borrowing, and trading platforms.

5. Tokenisation

You can use Ethereum to tokenise assets such as real estate or art. This allows for fractional ownership and more liquidity.

As you can see, both Bitcoin and Ethereum have different use cases. While Bitcoin is mostly used as a store of value or for P2P payments, Ethereum is used for a variety of purposes including dApps, ICOs, smart contracts, and DeFi.

How Immutable Are Bitcoin and Ethereum?

Another key difference between Bitcoin and Ethereum is immutability. Immutability refers to the ability of a blockchain to resist changes to its data.

Bitcoin is considered to be immutable because it is incredibly difficult to change the data on the Bitcoin blockchain. This is because Bitcoin is powered by proof-of-work (PoW), which makes it very secure.

Ethereum is also considered to be immutable. However, there have been some instances where the Ethereum network has been forked to fix critical issues. For example, the DAO hack occurred in 2016 and led to a hard fork of the Ethereum network.Nonetheless, Ethereum's immutability is still debated by some in the crypto community.

What Is The Difference Between Bitcoin And Ethereum Mining?

Another key difference between Bitcoin and Ethereum is mining. Mining is the process of adding transaction records to a blockchain. Miners are rewarded for their work with crypto tokens.

Bitcoin mining is done using specialised ASIC chips. These chips are designed specifically for mining Bitcoin and are very efficient. Ethereum mining, on the other hand, you can do using GPUs. This makes it more accessible to hobbyists and small-scale miners.

What Is The Difference Between Bitcoin And Ethereum Blocks?

A block is a group of transactions that have been verified and added to a blockchain. Each block contains a unique hash, which links it to the previous block.

The main difference between Bitcoin and Ethereum blocks is their size. Bitcoin blocks are limited to 1 MB in size, while Ethereum blocks can be up to 2 MB in size. This is due to the different ways that each blockchain handles data.

What Is The Difference Between Bitcoin and Ethereum Transactions?

Bitcoin and Ethereum transactions are similar in that you need to verify both to add to the blockchain. However, there are some key differences between the two.

The main difference is that Ethereum transactions can contain data, while Bitcoin transactions cannot. This is due to the different designs of each blockchain. Ethereum's design allows for more flexibility, which has led to its popularity for dApps and smart contracts.

What Are the Pros And Cons Of Bitcoin And Ethereum?

Now that you know the key differences between Bitcoin and Ethereum, let's take a look at the pros and cons of each.

Bitcoin Pros

Ready to learn about the many pros of bitcoin? Let's look at them now:

1. Security

If security is your top priority, then Bitcoin is the better choice. Since Bitcoin uses a proof-of-work algorithm, it is much more difficult to hack than Ethereum. Ethereum's proof-of-stake algorithm makes it more vulnerable to attacks since hackers can simply buy up a large amount of ETH and then attempt to 51% attack the network.

While this has yet to happen, it is a very real possibility. In contrast, the proof-of-work algorithm used by Bitcoin makes 51% of attacks much more difficult and expensive to carry out.

2. Store Of Value

Bitcoin is often referred to as digital gold because it has many of the same properties as gold. It is scarce and durable, which makes it a good store of value. Unlike fiat currencies, which central banks can print, there is a limited supply of Bitcoin. This scarcity, combined with its usefulness as a medium of exchange, makes Bitcoin a very appealing investment.

In addition, Bitcoin is much more durable than paper money. You can store it securely offline in a digital wallet, making it an ideal asset for long-term investing. Thus, due to its scarcity and utility, Bitcoin is often compared to gold and other precious metals.

3. Censorship Resistant

Bitcoin is censorship resistant because it is decentralised. No government or financial institution can censor or block transactions. This allows people to use Bitcoin without fear of censure from their government or financial institution. Bitcoin is also resilient to attacks by censors.

If one group of people tries to censor Bitcoin, another group can fork the blockchain and create a new, uncensored version of Bitcoin. This makes it difficult for censors to effectively attack Bitcoin. Finally, Bitcoin is private and anonymous. This means that people can use Bitcoin without revealing their identities.

This makes it difficult for sensors to track and target users of Bitcoin. Overall, the decentralised, resilient, and private nature of Bitcoin make it censorship resistant.

Ethereum Pros

Want to know the pros of Ethereum? Let's have a look at them now:

1. Flexibility

Flexibility is one of the key advantages that Ethereum has over Bitcoin. While Bitcoin is primarily a cryptocurrency, Ethereum is a platform that you can use to create decentralised applications (dApps) and smart contracts. This flexibility has led to the widespread adoption of Ethereum by developers and businesses.

Smart contracts in particular have been heralded as a game-changing use case for blockchain technology, and Ethereum is the clear leader in this area. As the blockchain space continues to evolve, Flexibility will likely become even more important for Ethereum.

2. Scalability

Ethereum's blockchain is currently affected by scalability issues. However, developers are currently working on a switch to proof-of-stake (PoS), which should help to improve transaction times and reduce fees. In the meantime, users may have to pay higher fees and wait for long periods to process their transactions.

However, once the switch to PoS is complete, Ethereum should be able to handle many more transactions per second than it can currently. This will be a welcome relief for users who have been frustrated by the slow speeds and high fees.

3. Environmental Impact

As the world becomes increasingly aware of the need to protect the environment, many organisations are looking for ways to reduce their impact. One area that has come under scrutiny is cryptocurrency mining, which consumes a great deal of energy. Ethereum, one of the most popular cryptocurrencies, is currently moving to a new system called Proof of Stake (PoS).

Under PoS, you will no longer need miners to mine new Ethereum tokens. This change will help to reduce Ethereum's environmental impact, as well as make it more energy-efficient. In addition, Ethereum's move to PoS may encourage other cryptocurrencies to adopt similar systems, further reducing the impact of mining on the environment.

Want To Learn More About The Difference Between Bitcoin And Ethereum?

So, what’s the difference between Bitcoin and Ethereum? In short, Bitcoin is a store of value or digital gold, whereas Ethereum is a platform that allows for the development of decentralised applications.

If you want to learn more about investing in Bitcoin or investing in Ethereum, be sure to check out our blog where we explore these investing strategy topics in-depth. Thanks for reading!

The Pullback Strategy

The pullback strategy is one of the most powerful yet popular trading strategies out there. As you can see in the name, the trading strategy is based on price pullbacks.

Price pullbacks are a common thing during trending markets when the price breaks below or above the resistance or support level, reverses and gets back to the broken level.

Talking about resistant levels, it is a price point at which the market fails to break above. On the other hand, support levels are price points where the market is having difficulties breaking below.

During a market uptrend, the price breaks above an established resistance level and reverses and retests the resistance level. Once the retest is completed, you can enter the market by taking a long position in the direction of the underlying uptrend.

On the other hand, during an uptrend, the price breaks below an established support level. Then it reverses and returns to the support level again. This creates a pullback, and you can enter the market with a short position in the direction of the downtrend.

In the market, pullbacks are a common thing, and it appears when traders start taking profit which pushes the price of crypto futures in the opposite direction of the original breakout. So the traders who missed the initial price point can wait for the price to come down to the resistance level so they can enter the market. And this pushes the price of the crypto futures to go up again.

Going Long Or Short

Going long or short are two of the best crypto futures trading strategies. By going long, you hope that the crypto futures price will go up over a certain period of time. And when it reaches a favourable price point, you simply sell your holdings and book a profit.

As a trader, your job is to predict the direction and timing of the crypto futures market. To do this, you need to learn about technical analysis, which is a study of historical market data and patterns. Plus, use different indicators to figure out the next move of the market.

Also, apart from going long, you can short sell crypto futures. This means that if you believe that the price of crypto futures will fall, then you have to sell your assets first, and once the price of the crypto futures goes down, you simply buy your assets back. Plus, thanks to leveraged trading, you can enjoy maximised profits if trades go in your favour. But if it does not go as per your predictions, there will be huge losses too.

Breakout Trading

Breakout trading is another popular trading method that is used mainly in day trading. But it can also be used for trading crypto futures. A breakout occurs when an underlying asset’s price moves out of an established trading range.

Breakout trading purposes of catching the market volatility when the price is breaking out of support and resistance levels, trendlines, and other technical levels.

Breakouts often happen in the market, and you can easily spot them by using different indicators and trendlines. And it gets accompanied by an increase in the volume of buys or sales in the market.

Also, after a breakout happens, the market experiences great volatility. This happens due to executions of numerous pending orders.

You can take advantage of this volatility by taking a long or short position. You need to take a short position when the price breaks below support. Or go into a long position when the markets break the resistance levels.

Spread Trading

You can next try out spread trading. In this trading strategy, you are required to purchase 1 crypto futures contract and sell another futures contract at a different time. The main goal of this strategy is for you to profit from an unanticipated change in the relationship between the buying price of 1 contract and the selling price of another crypto futures contract.

Spread trading lowers your risk in trading. Also, each spread is a hedge, and trading differences between 2 crypto futures contracts result in lower risks to a trader. Plus, spread trading is also not affected by market volatility.

Trading The Range

Trading the ranger stands for a trading bounce off important support and resistance levels in a chart. In this case, when the market faces difficulties breaking above a certain level, the market participants will refer to that level as the resistant level.

And when the price reaches the same level again, there will be some traders who will start taking profits, and others will open short positions in the market. This will increase selling pressure on the crypto futures price, and the price of it will fall down.

Similarly, when the price fails to break below a certain level and reaches the same price level again, traders who have short sales will start taking profits. Also, some traders will start buying at a lower price. This will create buying pressure in the market which will drive the price up.

When trading in the range, the first thing you need to care about is whether the market is actually trading in a range or sideways. If there is an absence of higher highs or lower lows in the price, then the current market environment would be a ranging market typically.

Additionally, you can use trend-following technical indicators like the ADX indicator. An ADX value below 25 indicates that the market is not in a trend. So you can place your stop loss at important resistance levels if you are shorting the market or below an important support level in case of taking a long position.

Buyer And Seller Interest

As a trader, you can also use the data of buyer and seller interest to decide whether to buy or sell a futures contract. Buyer and sellers' interest is determined by the Depth of the Market or DOM window, which shows the number of open buys and sells orders for a crypto futures contract at a number of price levels. 

Also, DOM shows the liquidity for the underlying futures contracts. If there is a higher number of market orders at each price, then it refers to higher liquidity and vice versa.

Some brokers refer to the depth of the market as the order book, which is a common thing found across all the exchanges.

The order book gets updated in real-time, and it reflects the current trading activity in the market. Also, you should know that large trading orders will not affect the price of highly liquid security.

But if the depth of the market and liquidity is low, even small trading orders can have a significant impact on the price.

Counter-Trend Trading

Finally, there is counter-trend trading. In this trading strategy, you can take positions in the opposite of the underlying trend. For instance, a counter-trend trader would look for sell opportunities during uptrends and buy opportunities during downtrends.

In counter-trend trading, your job is to take advantage of the price common that succeeds each impulse move and place your profit targets at around 50% of the impulse move or at an important Fibonacci level. However, you should know that counter trend trading is extremely risky compared to other crypto futures trading strategies. And you should only follow this strategy once you have gained enough experience in crypto futures trading.

Final Words

So those were some of the best crypto futures trading strategies. As a trader, you must try out different strategies, learn technical analysis and follow proper money management. Once you have gained enough experience, you should only then risk higher funds when trading. 

Potential for growth

Cryptocurrencies have dominated the growth conversation in recent years, with their promise of rapid and high increases. For example, Bitcoin and Ethereum have grown astronomically in recent years. While five years ago a single Bitcoin could be purchased for around US$500, by the end of March 2022, one Bitcoin cost over US$45,000, representing growth of about 9,000%. Likewise, Ethereum saw its price increase by more than 500% when it peaked earlier this year.

However, cryptocurrencies can also be very volatile, as evidenced by the recent dramatic price drops. As of 30th June 2022, Bitcoin’s value stood at $19,985 – a price decrease of over US$25,000 in the space of three months. What’s more, Ethereum’s value fell by 6% in just one day (30th June).

Stocks have the potential for rapid growth, just like crypto, but with far less risk. Following the outbreak of Covid-19 in March 2020, Zoom quickly became a household name. Communication suddenly went fully online and the demand for video calling skyrocketed. This demand remained high throughout 2020 with shares in Zoom peaking at around US$560. At the beginning of March 2020, they were around US$110 per share, compared to just US$36 per share the year before – a remarkable price increase.

But Zoom is not an outlier. The video conferencing tool is just one of many stocks to have seen price increases so high that they wouldn’t look out of place in the cryptocurrency market. 2022 has been a strong year for energy companies to date, oil and gas giants Exxon Mobil (39.96%) and Shell (20.48%) have both seen their share prices rise significantly in 2022. Elsewhere, drug manufacturers have performed well so far this year, with AstraZeneca, Eli Lilly and Merck all seeing their share prices increase by more than 13%. 

Cryptocurrency risks

While both crypto and stocks have a lot of potential for growth, there is a key difference – risk. With stocks, investors are better protected against downside risks, which makes them a comparatively safer investment. The same cannot be said for cryptocurrencies. In part, this is because crypto is still relatively new. As such, if confidence drops in the coin or a regulatory barrier is created, users are deterred and any investment could quickly go up in smoke. Furthermore, however high the value of one Bitcoin is, its inherent value is zero. Therefore, even if the price surges due to high demand and speculation of further price rises, there is no protection against loss. Crypto exists in a continual cycle whereby all these factors lead to rapid rises in price, but also rapid falls.

Crypto may not be like this forever – it is still in the early stages. As time goes on, investors are gaining a greater understanding of what factors influence the market and prices, and this will only continue as crypto gains more popularity and becomes more widely accepted. But, on the other side of the coin, the volatility – and therefore the potential gains – may also be significantly reduced. Ultimately, cryptocurrencies, for all their upside, come with considerable risks. Investing is inherently a risk-based exercise but even then, crypto is particularly risky. Consequently, a diversified range of stocks is a better route for the more risk-averse. There remains scope for significant growth, just in a less risky context.

Loss prevention tools

Recently, more and more brokers have started to offer risk management tools for those wishing to engage in high-risk trading. Although not yet widely available across the retail market, these management tools, such as AvaProtect, can offer further protection against potential risk. Not unlike an insurance policy, these tools generally require a small fee. Traders are then able to stay in the trade and ride out any short-term drops in value, and therefore benefit from a positive overall momentum of the position. What this means is that if the market moves in a different direction than what was originally expected, traders can recover their losses, only minus the cost of purchasing the protection – a significantly better option than losing their whole investment.

Another option to protect against significant loss is a ‘take profit’ order together with a ‘stop loss’ order. Both tools allow traders to set limits on profit and on loss, so they are not exposed to more risk than they are comfortable with. In the case of a take profit order, the trader can specify the exact price at which they would like their open position to be closed out. This enables them to make a profit without the risk of subsequently losing it. A stop loss order works in a similar way, with the trader being able to set the limit at which they would like to buy or sell a stock once it reaches a certain price. This ensures that they are not exposed to more risk of loss than they want.

Investing is inherently a risky practice but those traders who have taken the time to understand these risks and review the options available to them may find that investing in stocks is the best option for them. Stocks offer high growth and there are ways to protect against rapidly losing these gains. As more and more people begin using trading platforms to invest in stocks, brokers will embrace risk management tools to attract and retain new users, making investing in stocks even more appealing.

About the author: Dáire Ferguson is CEO at AvaTrade.

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As the total crypto market cap dropped by $90 billion within 24 hours, the number of searches containing “Bitcoin dead” surged.

While experts are divided on what the plummeting of cryptocurrency means — a temporary setback or signs of a larger recession — it is clear that the increased volatility of the market offers many lessons for investors. Whether you’ve been hesitant to invest in crypto or are second-guessing your choice to do so, here’s how the crypto crash illustrates the risks of cryptocurrency investments and what you can do to manage those risks.

Understanding the risks associated with crypto

The crypto market isn’t a stranger to crashes. Bitcoin alone experienced a major crash in late 2018, followed by significant crashes during the COVID-19 pandemic. However, crypto’s tumble into its lowest levels since 2020 is evidence that holding onto your crypto assets can be a dangerous game in itself. Even Coinbase has laid off 18% of its workforce, and many investors are predicting a long-lasting crypto winter. We’ll explore some of the risks that the current state of the market has unearthed.

Loss of money

One of the core lessons that the crypto crash can teach investors is the fact that cryptocurrency isn’t a reliable investment at all. When you hold onto your crypto assets through a crash — or when you decide to take advantage of low costs to invest — there’s never a guarantee that your assets will bounce back. This is because cryptocurrency like Bitcoin has no intrinsic value.

To manage your risk, it’s important to avoid putting all (or even most) of your eggs in the crypto basket. Crypto should be treated as a gamble. Whether you sell or keep your crypto assets should be a question of how much you’re willing to risk, and perhaps what reward you’re waiting for before you cash out. If you’re looking to increase your profit to reach your long-term financial goals, maintaining safer investments, like high-yield savings accounts and index funds, is ideal.

Reputational harm

If you’ve developed a professional network or gained followers due to your crypto usage, the current crypto crash may have been a blow to your reputation. For many old-school investors and others outside of the investment world, the crash is being viewed as evidence that crypto isn’t a legitimate investment.

One key to risk management for crypto investors is being willing to take ownership. When crypto falls more than you expected, be willing to admit your miscalculations. Continuing to promote crypto as a volatile market can damage your reputation further when the market fails to bounce back quickly.

Cybersecurity threats

The plunge in cryptocurrency value hasn’t deterred blockchain hackers from taking advantage of virtual vulnerabilities. As the market crashed, hackers made off with $100 million in cryptocurrency. Crypto and NFT thefts and fraud are continuing to rise.

Choosing a secure internet and a cold wallet is key to reducing risk when investing in crypto. Cold wallets aren’t connected to the internet — which limits your susceptibility to cyberattacks — and are protected by physical keys that you can store in a secure place. You can even store your assets in multiple wallets to get further protection.

However, it’s always important to keep potential insider threats, which cause over 30% of breaches, in mind. People close to you — and even those inside investment firms — are more easily able to hack crypto wallets and steal funds. Avoid having your entire investment portfolio on a public blockchain, which can make you a greater target for hackers. Ideally, crypto shouldn’t make up more than 5% of your portfolio.

Environmental issues

Cryptocurrency is widely recognised as a threat to the environment due to the large amount of energy needed for mining. Unfortunately, the crypto crash doesn’t have much of a silver lining, as the amount of processing power used for mining isn’t declining. This is an important time for investors to consider the carbon footprint they’re leaving behind, as well as evaluate whether the environmental and financial costs of energy are worth the uncertain earnings.

Stablecoins are not so stable after all

Many crypto investors turn to stablecoins to avoid the volatility of the greater crypto market. Stablecoins, like Tether and Terra, are meant to maintain their value since they’re pegged to real assets, like gold or the U.S. dollar. However, TerraUSD crashed with the rest of the crypto market, leading to disastrous results for its sister token Luna.

Investors must recognise that there isn’t actually a safe way to enter the crypto market. Stablecoins don’t provide the stability they’re meant to, which means they can’t reduce your risk. As international governments discuss the possibility of regulating stablecoins, the future of stablecoins is largely unknown and, once again, a gamble.

Protecting yourself from bad crypto investments

While there isn’t an easy way to protect yourself from bad crypto investments, there are a few ways you can evaluate how reputable a cryptocurrency is. For instance, you can read up on the team behind the cryptocurrency — which should be disclosed and experienced — and read about their roadmap, so you can evaluate their potential for success. Taking a look at a cryptocurrency’s trading history, which should display steady growth, is also key to limiting your risk.

If you’re part of an investment firm — which is likely already taking steps to evaluate crypto — you can still take action to protect your business by keeping your organisation agile. In a volatile market, a firm that learns from failure and eliminates bottlenecks created by silos and hierarchies is best equipped to think on its feet when issues occur.

There’s no telling what’s in store for crypto in the future, so anyone involved in or considering investments must be wary of the market’s volatility and take steps to manage their own risk.

About the author: Adrian Johansen lives and thrives in the Pacific Northwest. She covers topics related to business and tech, especially when they intersect with sustainability and diversity issues. You can follow her on Twitter at @AdrianJohanse18.

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In May this year, a crash in crypto prices wiped out over $300 billion of value in one week, igniting fears that the runaway development of crypto could cause a global financial crisis. 

That the crash was triggered by the implosion of a ‘stablecoin’, TerraUSD, caused particular concern. Stablecoins are so named because they are linked to low-risk assets, but TerraUSD’s peg to the US dollar was via another cryptocurrency, Luna – and when the market lost faith in Luna, it took down TerraUSD, along with the confidence of many crypto investors. 

At the same time, in early June Japan became the first major economy to introduce formal regulation on stablecoins, legally defining them as digital currencies. 

Should there be a clamp down on crypto?

Or can it still become a catalyst for positive change if proper measures are implemented? There are strong calls on either side. 

Last year, China banned all crypto transactions, citing crypto’s role in facilitating financial crime and the risk its speculative nature poses to the country’s financial system. In February, the deputy governor of India’s central bank T Rabi Sankar stated “banning cryptocurrency…is the most advisable choice for India.” Most recently, American billionaire businessman Charlie Munger, applauded China’s move to ban crypto, calling for the same to be done in the US.

Crypto concerns are valid

The anonymity of cryptocurrency transactions allowed it to be used for money laundering and financing illegal activities, as well as in Ponzi schemes and other kinds of fraud. Earlier this year, US Senator Elizabeth Warren raised concerns that crypto could also be used by Russia to circumvent economic sanctions.

At the same time, crypto has the potential to bring in major benefits. Lower transaction costs can facilitate micropayments, while smart contracts reduce banking fees, revolutionising financial inclusion, especially in developing and emerging-market countries. “Globally, privileged, developed and free societies account for only 20% of the global population. Crypto provides an alternative economic system that enables greater financial empowerment and independence,” states policy analyst Evin Cheikosman. Others like Alpen Sheth of Mercy Corps Venture highlight crypto’s technological significance, for example how cryptocurrency networks “provide a new paradigm for secure data and value transmission”.

But whatever your position, considering a full ban on cryptocurrencies possible at this stage is wishful thinking. They are already an established feature of the global financial landscape. In 2021 alone, 16% of Americans and 10% of Europeans invested in crypto-assets, and the first Bitcoin exchange-traded fund was launched in the US. Even after the recent crash, the global cryptocurrency market is worth over $900 billion by some estimates. In other words, the genie is out of the bottle.

Suppressing cryptocurrency now would only drive the market underground

Or into jurisdictions where its negative uses would thrive. 

Instead, there should be effective, global regulation implemented to take full advantage of the benefits of this emerging technology. And while cryptocurrency is on the frontier of innovation, looking at past mistakes can be instructive.

This is not the first time the global financial system has faced uncertainty and issues when faced with new asset types. Non-regulated Collateralised Debt Obligations (CDOs) which became notorious as a leading cause of the 2008 financial crisis are one example. Over-the-counter (OTC) derivatives, which are financial contracts that do not trade on an asset exchange, were another instrument found to play a role in the crash. In 2010, regulation of OTC derivatives was brought in with then European Commissioner for Internal Market and Services Michael Barnier stating, “no financial market can afford to remain a Wild West territory”. 

But in the case of both OTC derivatives and CDOs, regulation came after the crash. This time around, regulators seem to be determined to put effective regulation in place before crypto can cause a global financial crisis.

Regulation to prevent crisis

Fabio Panetta, Member of the Executive Board of the European Central Bank, pointed out in April that the crypto market was larger than the $1.3 trillion sub-prime mortgage market which triggered the 2008 global financial crisis. “Now is the time to ensure that crypto-assets are only used within clear, regulated boundaries and for purposes that add value to society,” he said.

Major crypto market players also accept the inevitability of regulation and want to play a part in its development. Changpeng Zhao, CEO of Binance, the world’s largest exchange for trading Bitcoin and other cryptocurrencies, said recently that it is time for regulators and industry players to work together to develop effective, global, fit-for-purpose regulation.  

Conclusion

The debate surrounding cryptocurrency is too often polarised between advocates and detractors. What is clear is that crypto brings in new possibilities but also familiar problems. The latest crash in the global crypto market should serve as a serious warning for governments, investors and the fintech sector to bring in comprehensive regulation. We must learn from past mistakes in order to realise cryptocurrency’s full potential and protect our financial system from a crisis. 

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