DavorCoin and suspicions

When you see a project that promises lucrative outcomes beyond reason, it might be too good to be true.

DavorCoin seems to be one of these projects. DavorCoin platform works as a lending platform, like Bitconnect. Their lending platform had to close. Is it another Bitconnect’s debacle?

 When you see a project that guarantees fixed returns no matter what. This should automatically raise a red flag. It is highly suspicious.

Some exchanges, like Bitfinex or eToro support lending and margin trading. Does it mean that some people might invest in coins like DavorCoin to short them before the lending platform shut down? One can only wonder.

However, a long-term short hold might not be easy to sustain. Cryptocurrencies are such a volatile market. You can also question the morality of someone who will willingly invest in a coin like DavorCoin knowing that the project is built on a suspicious scheme.  Is it an ethic move to invest in DavorCoin with the only aim to profit from the programmed collapse.

You can profit from such a strategy. However you have to know it is highly risky. If you are one to use money you cannot afford to lose, by all means, be quick to pull out your investments.  When is the right moment to pull out? Only a thorough observation of the cryptomarket can tell you. Nobody goes around carrying a crystal ball. Being a crypto-hawk requires time.  If you don’t have that kind of time in your hands, don’t even consider shorting coins. This is a cryptotrader’s move that requires time, attention and experience. In a nutshell, the wisest thing to do is to stay away from lending platforms if you care about ethics, and peace of mind. The outcome, oftentimes is dreadful for new cryptonauts.

Robinhood and Jay-Z

 

Robinhood is going to enable its users to trade cryptos. Most Americans use Coinbase. Apparently, Coinbase do no longer take new users. Robinhood hopes to become a real contestant for Coinbase. In order to make a name for themselves in the cryptosphere, Robinhood is going to launch their cryptocurrency trading platform: Robinhood Crypto.

For those who want to trade cryptocurrencies with Robinhood, it is still possible to register and go into the waiting list. Yes, there is a waiting list. One of the hype factor about Robinhood Crypto is the sudden interest of Beyonce’s husband, Jay-Z. The well-established American music mogul is going to invest in Robinhood Crypto. Is he paid to endorse the site? Nothing is done for free in this world. Even when you trade stocks with the traditional part of Robinhood, it is not really for free.

Robinhood Crypto will enable the crypto-enthusiasts to trade mainly Bitcoin and Ether. Many other coins and tokens would be added in the future.

Jay-Z is not the only celebrity who has shown a vivid interest in cryptocurrencies. The American actor Ashton Kutcher, the British celebrity, Mel B from the Spice Girls, the American heiress and socialite Paris Hilton were also known for publicly expressing their strong interest for the cryptocurrency market. Mel B made headlined for being paid in Bitcoin for her latest album. Paris Hilton was endorsing a coin or a token. Ashton Kutcher publicly explained that he had invested in Bitcoin.

This being said, many people in the cryptosphere do not react as the general public. When a celebrity endorses a product, most of the fans would sheepishly embrace whatever their idol is into. A large number of crypto-enthusiasts pride themselves to have a mind of their own. When a celebrity endorses a project, it is a red flag for many early crypto-traders and crypto-investors.

 

How Does your Cryptobroker, your Exchange Make Money?

If you think that your cryptobroker, your exchange, earns money on commissions and fees, you are absolutely right. However, this is not the only way a cryptobroker can make money.

Every time you buy or sell your altcoins, your cryptobroker takes a commission. Your cryptobroker take a commission on both sides of the trade.

When you are doing margin trading, your cryptobroker is the winner. What is margin trading you might ask? Basically, your cryptobroker lend you money so you can multiply your gains when you trade your altcoins.

You borrow what you need so you can increase the size of your trade, and increase your potential gains… or losses. If you don’t have the sufficient funds to support your losses margin trading might not be the best thing to get involved into. Even if you are the best cryptotrader out there, you will have losses, it is part of the game. Being a good cryptotrader is not about never losing, it is about managing your risks properly. When you lose, you already have a solution put in place to bounce back. A good cryptotrader anticipates his losses. Risk management is key if you want to polish your cryptogame. Never go into a trade without knowing your limits. If you just jump into a trade just because, you are basically gambling, not trading. Trading cryptocurrencies is not that different from trading Forex, for instance. I guess this is what people mean when they say you should trade without emotions.

Whenever you withdraw your money, your cryptobroker takes a bunch of fees. If you don’t trade enough, if the activity on your account is too low, your cryptobroker might also take a commission.

When you depose your assets on your account, your cryptobroker takes interest on all the funds that sits idly on your account. If your funds are not used in trades, your cryptobroker can collect interests. Bear in mind that your cryptobroker has built a business model that benefit him first.

So research thoroughly before throwing your money anywhere, even if you know that you can make more money. Think about your location. If you are in Europe,in Africa or in Asia, you might not need a cryptobroker based in the US. Especially if you want to transfer your cryptogains back into fiat. As usual, do your own research and see what fits you the best.

What’s wrong with Electroneum?

Many people say that Electroneum is a fork from Monero, and it is easy to check. The price of this coin is ridiculously low. After their ICO, Electroneum never really took off. The ICO went sold-out thanks to their program. The community was built very fast thanks to the affiliate links. From a marketing point of you, this might be enticing. However, there is no real incentive to put your money in a coin which does not solve a specific problem. Electroneum raises $40 million through their ICO.

Why is the need to raise so much money when you do not provide the code?

Be careful when there is something sketchy about a coin. It will be really hard for Electroneum to compete about other cryptocurrencies.

When you see a lot of people hyping up a coin, without any reason. Please by all means be on guard. Have a look, a careful look on the white paper, and compare it with the Monero’s white paper. Apart from the so-called mining experience, there is no real innovation.

Does it mean Electroneum is a scam?

Not necessarily. It only means that the marketing part seems to be more important than the developing part of the Electroneum’s project. Early Electroneum’s holders had a rocky start. The access to the coins was delayed. This type of things can happen for security reasons. However, the feeling of trust can be impaired by such delays. Remember that hackers are always on the look out whenever an ICO is announced. It is really essential to double-check the security of your emails. You can create an email dedicated to your crypto-game. Never sign up with an email linked with a LinkedIn or a Dropbox accounts for instance.

Does this mean that Electroneum is what people commonly called a pump and dump coin?

Electroneum is still a young coin. There are still some glitches with their mobile wallet. The updates are scarce. It is not encouraging, regarding the amount of money which was collected through their ICO. In the cryptocurrency world, this is a sign for concern.

What happened with BitConnect, for real?

Let’s play Sherlock. What happened with Bitconnect?

People in the know said that this was not a glitch, but an inside job. This is a hypothesis that cannot be brushed away with a shrug. I do not really like this hypothesis, because this is what it is: a mere hypothesis that cannot be proved.  This incident reminded all of us how important the question of security is.

Let be honest, security is key when you have a company on the Blockchain.

Could BitConnect disappear with the jackpot?

Some people were very scared that Bitconnect just disappear with the jackpot. They’re back. The site,  the team, all their customers’ asset: everything is back.

The question of hacking is still lingering. Did BitConnect got hacked? It is not impossible. Exchanges got hacked. It happened in the past, it can still happen in the future. This is something to take in consideration. After all, there is money lying there on the site. It happens.

How to protect your assets on BitConnect?

At this stage, and with the way the site is set up, there is no much that can be done. The only thing to do is to be cautious. After all, what is yours should not be threatened by security issue.  You  have certain knowledge about the way things are conducted in the cryptocurrency sphere. Always remember that if you do not have your private keys, you do not own anything in the cryptocurrency world. This golden rule is applicable everywhere,even with BitConnect.

At the end of the day, the thing is all those Blockchain companies need our trust to profit. They are not going to communicate with transparency about what happened. The truth might be too disturbing for us to handle. What if knowing the truth disturbed our trust? They are still going to say, this is a system glitch. It is the most acceptable explanation.

Another coin : IOTA

What is IOTA?

IOTA is more of a business to business platform. IOTA is looking to cater for bigger business. The average Joe is not their customer of choice.

How is the IOTA economic system working?

IOTA has a pay-on-demand system. IOTA cherishes the idea of taxing the machines that replaced people. IOTA can solved the problem of the sharing economy. Quantum computing might affect IOTA.

Is IOTA the next Ripple?

Well, there are promising signs pointing towards that direction. First of all, Jamie Burke, the crypto-investor, is really interested in invested in IOTA. Secondly, IOTA has a real purpose. IOTA is dedicated to implement machine to machine inter-connectivity.

In a nutshell, when you invest in IOTA, you do not invest in a simple token, or a mere coin, nope. You are investing in… the future. I am kidding, well, not really.  I am a bit over-dramatic with this one, But all the big, life-changing inventions start by a small step or a humble beginning. IOTA is getting tons of attention from the big fish, well, fro the whales.

Welcome to the real Matrix

IOTA is really something else. IOTA is going to tax the machines, not the humans. Is this even do-able? Apparently, it is. To be more concise, this means that the proof of work would be on the individual, hence no need for mining. It is a new technology and a faster one.The trade volume is  still low.

Is there any smart contracts for IOTA?

This is an interesting question.  However, the answer is negative. There is no smart contracts for IOTA. You might rightfully wonder why there is no smart contract for IOTA. It is highly possible that IOTA would offer another protocol.

Investing in IOTA is risky. The commercial success of IOTA is not guaranteed.

Is it safe to invest in Bitcoin?

It is important to know how to make money, but if you want to be successful in the cryptocurrency game, whatever successful means to you, you need to know an equally important. You need to know how to keep your money.

It is not uncommon to see people who lose all they have in one single day.

People keep on telling you: do not to make any emotional decision.

Stock market and cryptocurrency market?

It all depends how your brain is wired. Some people have irrational emotions that govern them entirely. Some people have really rational emotions. Only a certain percent of the world’s population systematically oppose emotions versus rationality. Others have a complete different outlook on life that helps them to be in tune with themselves and to use their emotions rationally.

The golden rule for those who want to trade in the crypto-currency game is the following:

1. When everything is down and you have some money to spare. Spread it out into the coins you like.

Is it safe to invest in Bitcoin?

If you are a newbie in the cryptocurrency sphere, you might be worried to invest in Bitcoin. So, you’ve bought your first Bitcoin? Congratulations! Maybe, now you start to  get a bit scared.

What is the cryptocurrency market collapse?

I know that if you have a bit of knowledge in the stock market, maybe your heart pounds out of your chest when you have a look on the charts. The best place to keep a vigilent eye on the chart is here : CryptoCurrency Market Capitalizations

 The high volatility is not an alarming factor. Don’t you worry, it is quite normal in the cryptocurrency sphere.

Rest assured that the CEO of Bitcoin would not die… there is no Bitcoin CEO.

If everything is in the red in Crypto coin market, it does not mean that something nefarious happened.

Just keep on investing in the project you truly trust in.

China has banned all ICOs

What does it mean? 

Maybe you are not Chinese, and you might wonder how the fact that China decided to ban all ICOs can affect you, and your crypto game.

The cryptocurrency market is decentralized. However, what happens in China can have a ripple effect on your investment, whether you are in the US, in Africa, in Europe, or in Asia.

Who made the announcement?

The People’s Bank of  China made this announcement. The gist of the announcement is that you cannot trade cryptocurrencies versus tokens.

China has seen an increase in the multiplication of ICOs. The government had to step in because, lots of people took so many risks ( = lose a lot of money in fake, or unreliable ICOs). In a nutshell, the Chinese government is only trying to protect its citizens.

What are the repercussions?

People are getting scared. ICOs platforms have been suspended one after the other. The Bitcoin summit will not take place.

What about NEO?

NEO is more a protocol than anything else. ICO is a tiny part of what NEO is. So, if you like NEO, just keep on trusting in this project.

How to Invest in Crypto Currency?

1. Be patient
An investment requires patience. You are not going to cash out in a week, or a month, or even 6 months. View your investment as a long-term commitment.

2. Be aware that cash has no intrinsic value
Cash is not really an asset. Cash loses its value by the day. In an nutshell, cash can be handy, but it is not an investment.

3. Keep track of your taxes
In the Crypto sphere as long as you do not cash out, you don’t have to pay taxes, yet. It might change over time, as the crypto world becomes more and more mainstream.

 

4. Take advice.
You don’t need to know everything. The crypto world is dense and in constant evolution. Do not hesitate to surround yourself with people who know what you need to know, or people who can teach you and coach you.

5.Only invest in productive coins
You’d better create a portfolio with coins which have real value. The crypto world is filled with a bunch of useless coins. Those should not be found in your portfolio if you want to be a savvy investor.

6.Do your homework
If you want to invest only in productive coins, you have to do your research first. You have to be able to differentiate the good coins from the bad. Good coins are the ones which are profitable. Overtime, they add on more value than you have paid for.

7.Learn from your mistakes
Unless you are a medium or a psychic, you cannot win all the time. Sometimes, you will throw yourself in a bad investment. It is inevitable. There is no perfect investor who makes zero mistake all the time. The trick is to accept your mistakes and learn from them. So, you won’t repeat them

Greed and Piracy Mentality in Crypto-Currency