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Want To Start Trading Crypto? Here Are Some Useful Tips

As the number of people using cryptocurrencies like Bitcoin, Ethereum, Litecoin, etc. continues to increase, more and more online exchanges are opening up where you can buy and sell these digital currencies. If you’re interested in trading cryptocurrencies, there are some really useful tips that will help get you started in the right direction.

1. Alternative Platforms

When it comes to buying and selling cryptocurrencies, there are a number of things that you need to take into account. For instance, is there a large enough market for the crypto coin that you’re interested in trading?

In addition, what kind of fees will you have to pay when moving your capital from one exchange to the next? Another thing that you’ll need to do is research what alternative platforms are available. A lot of people that are just starting out might not know that it’s possible to trade with no fees, which as you can imagine is a huge advantage. In other words, there might be a better platform for your crypto-trading needs than those which are the most popular.

While you shouldn’t go to just any site offering benefits, it’s always a good video to look at what people are saying online about different platforms, and make an informed decision from there.

2. Location And Regulations

The legislation that surrounds cryptocurrency is constantly evolving. In some countries, there are next to no regulations when it comes to cryptos, while in other countries there are a number of restrictions.

If you want to do anything with cryptos, it’s important to make sure that you’re not breaking any rules by trading where you live. For instance, as of recently, there are reports that China has banned all crypto transactions – mining and trading included! Because it’s still a relatively new thing, it’s important to stay up to date with the latest regulations if you want to stay on the right side of the law.

A good idea is to check the news daily concerning cryptocurrency and see what’s been going on in countries all over the world. If you keep an eye on everything, you’ll have a lot more of an advantage over those who don’t.

3. Bitcoin And Altcoin

There’s a pretty good reason why Bitcoin is such as hot topic at the moment. It has the highest market capitalisation (the total value of all tokens on circulation), and it drives everything else on the market. That being said, if you’re going to be trading any cryptocurrency, make sure that you’ve figured out which one will be most profitable before you get started.

Even though Bitcoin has the highest market cap, it’s still not something that everyone can get involved with because of how expensive it is to buy. The best thing to do when you’re starting out for cryptocurrency trading is to study coins like Ethereum, Ripple, Dash, and Stellar – in addition to Bitcoin- and the currencies in general. By doing this, you’ll have the best chance of making the most money in the shortest possible time frame. Having a more diverse portfolio is a good way to hedge your bets and increase the potential gains of any trade. Because if you put all of your money into one thing, and it goes down, then it’s going to take even more out of your wallet than if you had diversified earlier on.

If you’re looking at the cryptocurrency market, then it’s important that you’re careful when it comes to altcoins. While some people are trying to make money on them, there are others who want to get their hands on your money. A lot of the time, these cryptocurrencies will simply disappear with your money – and there’s nothing that you can do about it. However, if you want to make the most out of trading altcoins then you need to find high-quality coins that are likely to go up in value over time. The reason for this is that there are thousands of different altcoins out there, but only a few of them will stand the test of time.

4. Blockchain And Mining

When it comes to mining Bitcoin and other cryptocurrencies, there are a number of factors that will impact how much money you’re able to make when you set up your own mining rig.

One of the biggest factors is location, as you’ll need a lot of cooling if you don’t want to burn your house down. In addition, it’s important to note that the cost of electricity will have an impact on how much money you’re able to make from mining. Furthermore, there are a lot of other costs that people simply forget about, like software and hardware costs. It’s important to keep this in mind when you’re looking at the profitability of mining any cryptocurrency.

However, if you invest in mining hardware and cloud storage, then this is one of the most profitable things you can do at the moment. The reason for that is that it’s not like any other business – which usually involves a lot of upfront costs before the business itself becomes profitable enough to run.

5. Security

Not everyone is in the same boat when it comes to security, but no matter how good your security is there are always going to be risks when you’re trading cryptocurrency.

Because of this, it’s important that you understand what the threats are before deciding whether or not you want to get started with trading cryptocurrencies. One of the biggest threats out there is the risk of losing your private keys – so make sure that you keep them as safe as possible. One thing that you can do to help with this is to always double-check that your computer and web browser are protected and updated with the latest security patches. If they aren’t, then hackers will be able to steal everything from you in no time at all.

However, the biggest threat is still the fact that crypto exchanges are vulnerable to attacks. For example, if you’re exchanging Bitcoin for another cryptocurrency through your web wallet or Ethereum in digital currency exchange, then you have to be wary of hackers getting access to your account. One way in which you can try and stop this from happening is to use multi-factor authentication on your account, as well as encrypting your private keys.

In a lot of ways, trading cryptocurrency isn’t all that different from any other industry where you have to be wary of things going wrong. However, unlike traditional businesses which rely on physical assets and people working for them, cryptocurrencies rely on technology and the internet. However, if you’re careful then it’s possible to trade cryptocurrency without having to worry about things going wrong. The best way to do this is by investing in the right equipment and keeping your private keys as safe as possible. Then you can use a trading platform to increase your chances of success even more, which makes cryptocurrency trading a very attractive proposition!

China bans all crypto transactions

China has officially banned all cryptocurrency transactions and vowed to stop crypto mining, delivering the toughest blow yet to the industry.

Cryptocurrency transactions are now considered illicit financial activity in China, including services provided by offshore exchanges, the People’s Bank of China has said. The PBC added that crypto, including Bitcoin and Ethereum, are not fiat currency and cannot be circulated.

Bitcoin slumped in the wake of the news, falling 8% to about £30000.

Chinese officials are going further to stamp out cryptocurrency trading for its ties to fraud, money laundering and excessive energy usage. China already has rules that stops banks from offering cryptocurrency related services. To get around such rules, traders have moved to digital platforms and offshore exchanges.

Cryptocurrency mining’s massive energy consumption is another reason why the industry is coming under attack. In a separate statement, China’s economic planning agency said it’s an urgent task to stop cryptocurrency mining and the crackdown is important to meet carbon goals.

China is facing a power crisis that’s already curbed commodities from aluminium to steel, and several industries have seen their power supplies restrained in recent weeks.

China is home to a large concentration of cryptocurrency miners and as recently as April had a 46% share of the global hash rate, a measure of computing power used in mining and processing, according to the Cambridge Bitcoin Electricity Consumption Index.

China’s crackdown against cryptocurrency mining and trading activity started in May 2021. That was the first time they had singled out cryptocurrency mining at the national level since dropping it in 2019 from a proposed list of dirty industries to be eliminated.

The announcement caused a collapse in cryptocurrency prices, with Bitcoin losing about half its value between April and July this year. While the market has since gained stability, it’s still far below the all-time high of £46000.

Global Top 40 mining companies resilient in face of COVID-19

The global Top 40 mining companies are so far weathering the COVID-19 crisis but should take advantage of relative stability to adopt strategies to mitigate against further economic and social risks, according to PwC’s Mine 2020 report.

PwC’s forecast for 2020 suggests the big miners will take a modest hit to EBITDA (earnings before interest, tax, depreciation, amortisation & impairment) of approximately 6%. This follows a strong financial performance in 2019 – with revenue up 4% to US$692bn and market capitalisation up 19% to US$898bn (though since reduced to US$752bn on 30 April 2020). On this basis PwC believes the Top 40 are in a strong and resilient position to weather the economic uncertainty created by COVID-19.

Despite this positive outlook, the report cautions that mining companies will need to adapt to long-term impacts caused by COVID-19. Miners may need to think about de-risking critical supply chains and investing more in local communities. A shift towards localisation in supply chains and for smaller deals in local markets, as well as different forms of community engagement, may turn out to be enduring consequences of the pandemic.

Jock O’Callaghan, global leader for mining and metals at PwC, says: ‘In some respects, the mining sector is well-situated in the wake of COVID-19. Mining companies have strong finances and are mostly still operational, albeit with some level of increased precautionary and preventive control.

‘But the longer-term impacts remain uncertain, and ongoing disruption is likely. Top 40 miners should take advantage of their current position of financial stability to revisit their strategies. Doing so will ensure their businesses can enhance their resilience over the long term and meet the demands of the global economy – meeting their aspiration to resource the future.’

A changing outlook for investment & deals

Capital expenditure was up 11% to US$61bn in FY19, according to Mine 2020. PwC expects capital expenditure will slow in 2020, freeing up cash flows, and giving miners the capacity to pay dividends should they choose to do so.

PwC doesn’t expect many mega-deals to take place in 2020 due to increased economic uncertainty and practical constraints of site visits and inspections. However, the current conditions provide opportunities for the Top 40 to capitalise on smaller acquisitions in their local markets.

The enterprise value of mega gold deals totalled US$19.2bn in FY19. Gold deals are not likely to recur to the same size or quantum as in recent years.

Cybersecurity requires attention

Currently just 12% of mining and metals companies’ CEOs are extremely concerned about cyber (down from 21% in FY18 and 14% in FY19). Yet Mine 2020 notes that over a similar period the number of reported cyber breaches among mining companies increase fourfold.

Jock O’Callaghan says: ‘Cybersecurity should be an integral part of the Top 40’s safety and business strategies. Miners should take the opportunity, given their relative resilience, to leverage their strong safety cultures to embed the concept of ‘cyber safety’, which like other forms of safety, is non-negotiable.’

Growing expectations around ESG

Although Mine 2020 has found that most large miners are moving in the right direction on ESG disclosure, some are performing better than others. Only 11 of the Top 40 companies (28%) are setting public ESG commitments and targets, reporting consistently against them, and linking executive and management performance to achieving them.

No one commodity group is outperforming any other. But given rising stakeholder expectations, all Top 40 miners should have moved past the stage of general or variable commitments about ESG.

Jock O’Callaghan says: ‘How should mining come together to take collective ownership of ESG and accept the necessary accountability and transparency that will ensure they are taken seriously? It is time for miners to sit down and work towards a common global standard about what constitutes responsible mining and how companies will report their performance against it.’