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Know what you trade

Know what you trade

Do you know how BAT is converting the advertising industry and why Civic is a breakthrough ter identity management? Or what is the difference inbetween Ethereum and Ethereum Classic? If you do, congratulations. You are more knowledgeable about cryptocurrencies than 99.99 procent of the people. But don’t feel bad if you can’t response thesis questions. Thesis are the earliest days of crypto becoming mainstream, so you are right on time. Read on!

Leegloop presently supports overheen 30 blockchain assets. Ter the next few weeks wij are going to introduce you all of them, a few at a time. Let us begin with three projects sharing many common traits: Bitcoin itself, Bitcoin Specie and Litecoin.

Bitcoin

The world’s very first decentralized digital currency wasgoed born te 2008. It all began with the paper Bitcoin: A Peer-to-Peer Electronic Metselspecie System published by someone using the pseudonym Satoshi Nakamoto.

Nobody knows who Satoshi is or wasgoed. He stopped communicating years ago. Many Bitcoin enthusiasts think he’s not a single person, rather a group of cryptographers. (She might spil well be a woman, albeit the name “Satoshi” is generally used spil a boy’s name.)

It is estimated that Satoshi holds around 1 million Bitcoin — most of the coins from the very first few dozen blocks — which would instantly make him one of the richest billionaires ter the world, right below the family possessing Gucci and Yves Saint Laurent. Satoshi’s coins have not bot moved or spent since 2008.

Wij might never know the truth about who Satoshi is, but what he built is converting our world. The thought of a decentralized, independent and relatively anonymous currency governed not by political elites but by cryptography makes bankers and officials shiver. The underlying technology — the blockchain — is possibly the greatest invention since the Internet.

Few people recognized the power of Bitcoin back then, those who did have bot nicely rewarded. Back then BTC wasgoed trading for less than $Five! Today, a few dozens of those can buy you a luxury apartment anywhere te the world.

Bitcoin has bot on a historic bull run since the Christmas of 2014 (from $160 all the way to the Moon), but that embarked after a year-long bear market during which BTC lost almost 90% of its value. Can you imagine Bitcoin under $2000 soon? Wij very likely won’t see those price levels again, but it’s significant to be aware of the risks.

Bitcoin is the linchpin of the crypto world. Whenever it goes up, other assets usually take a dive. When it’s going sideways, other assets rise. Remembering this elementary rule can make your trades much more profitable.

Bitcoin Contant

On the very first day of August 2018 something unthinkable happened: the Bitcoin blockchain has split into two. It wasgoed not an amicable separation.

Spil Bitcoin entered the mainstream, some of its technological limitations became badly visible. Transactions were quick and cheap compared to canap transfers, but they were nowhere near swift and cheap enough to make Bitcoin a viable competitor to credit card companies and online payment providers. It’s hard to imagine paying with Bitcoin ter coffee shops and supermarkets if a transaction needs half an hour (the best case!) to be lodged.

There were numerous proposals to solve this problem. The technical details are outside the scope of this postbode, but after heated arguments a minority of the miners and industry players determined to take a more aggressive but controversial technical treatment — following “Satoshi’s true vision.”

Bitcoin Metselspecie is the result of this heated argument, and it is indeed much swifter and cheaper to send than Bitcoin. While this is good for the users, it can be dangerous to the ecosystem. The BTC and BCH blockchains are very similar, and miners can switch inbetween the two lightly, and they do, depending on which chain is more profitable to mine. A unexpected increase ter the BCH price brought the Bitcoin blockchain to a standstill ter mid-November, creating a horrendous traffic jam. Unnecessary to say, incidents like this don’t help with the strain inbetween Bitcoin and Bitcoin Specie believers.

Bitcoin Contant and Bitcoin usually (but not always!) stir te opposite directions. A stronger Bitcoin often means a weaker Bitcoin Metselspecie and vice versa. Keep this ter mind when you trade BCH!

Litecoin

“Bitcoin’s junior brother”, “The Rock”, “The silver to Bitcoin’s gold” — this is how crypto-veterans usually introduce Litecoin to newcomers. Many people find it hard to support Bitcoin Metselspecie, but almost everyone likes Litecoin. What’s not to love about it?

Litecoin wasgoed created by Charlie Lee te 2011 spil a fork of Bitcoin. It wasgoed not a contentious fork, and it did not split the Bitcoin chain. Litecoin never attempted to steal the king’s crown. While it’s technically almost identical to Bitcoin, there are a few key differences making Litecoin a superb project on its own.

Very first, Litecoin is swift because fresh blocks are generated every 150 seconds instead of Bitcoin’s Ten minutes. 2nd, it’s using a slightly different cryptographic algorithm called scrypt — this makes it difficult to build customized mining hardware for Litecoin, and therefore thresholds the power of big mining companies. (Leegloop is using the same scrypt algorithm when you unlock the wallet or when you restore it from an email backup listig. It’s very difficult to crack by brute force.)

The project has a solid developer team, and its bright and self-deprecating founder is one of the most influential voices ter the crypto sphere.

Litecoin often moves together with Bitcoin ter USD value, but it’s usually a bit less volatile (or at least it used to be until the most latest bull run). Many traders use LTC spil a hedge when Bitcoin dips. It’s also an excellent choice if you want to send assets to an online exchange (or if you want to receive funds), spil it’s reliably rapid and cheap.

How to trade thesis assets?

Bitcoin, Bitcoin Metselspecie and Litecoin are available on most if not all online exchanges. You can also trade them without leaving Leegloop! Wij believe it’s fairly intuitive, but wij also have a guide on exchanging assets, just ter case.

Want to learn more?

Bitcoin.org has slew of information about Bitcoin, including a good explainer. The Bitcoin Wiki is a treasure trove of skill.

Bitcoin Metselspecie has a good FAQ on BitcoinCash.org, and if you are interested te the technical details, wij can very recommend the Bitcoin Alfabet webstek.

The best place to embark learning about Litecoin is Reddit, especially their Getting Began thread.

Related movie: Bitzfree, cloud-mining kosteloos


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