Tag: Currency exchange

Trading Tales: Top Reads to Understand Trading and the Stock Market

The term stock market refers to numerous exchanges where publicly traded company shares can be purchased and sold. It is part of a free-market economy. These financial transactions occur on official exchanges and OTC marketplaces governed by specific regulations. The stock exchange ensures that all interested market players have access to data for all buy and sell orders, ensuring that securities are priced reasonably and honestly.

Traders on the stock market comprise market makers, investors, traders, speculators, and hedgers. Trading carries risk, so it’s important to understand how to handle it. Before investors decide, they must carefully weigh the rewards against the risks.

Reading books on these areas can be highly beneficial to people. It helps in understanding the complicated dynamics of the market and different trading strategies. To navigate the stock market successfully, you must first understand its fundamental concepts. The books on this list have been specifically chosen to assist you in this endeavor.

The Art and Science of Technical Analysis
One Up on Wall Street
How to Make Money in Stocks
The Art of Currency Trading
Coffee Can Investing
Trading for a Living
How to Make Money With Breakout Trading
The Little Book of Common Sense Investing

The Art and Science of Technical Analysis

Book	The Art and Science of Technical Analysis
Author	Adam Grimes
Goodreads Rating	4.29 out of 5
Target Audience	Beginner to Intermediate Traders
Focus	Technical analysis, chart reading, trading indicators

This comprehensive guide takes readers on an expedition into the intricate realm of technical analysis, providing a fair blend of theory and practical insights. It focuses on the intersection of quantitative analysis and discretionary trading.

The book explores the history of various indicators, such as stochastic, RSI, and MACD, in the creation of modern technical analysis. It emphasizes what these indicators are capable and not capable of. Grimes even addresses the emotional side of trading and offers helpful coping mechanisms for individuals’ psychological challenges.

One Up on Wall Street

Book	One Up On Wall Street
Author	Peter Lynch
Goodreads Rating	4.27 out of 5
Target Audience	Beginner Investors
Focus	Value investing, identifying undervalued stocks, contrarian approach

Peter Lynch’s classic provides a refreshing and approachable strategy for investing. Lynch’s investment concept is based on common sense. He believes individual investors can use their everyday experiences and insights to find potential investment opportunities. According to the book, investors should be unconventional and seek opportunities where others seem pessimistic. He divides stocks into four groups: cyclicals, rapid growers, stalwarts, and slow growers. Each category requires a different approach to investing. Once you’ve identified them, you can modify your approach suitably.

How to Make Money in Stocks

Book	How To Make Money In Stocks
Author	William J. O’Neil
Goodreads Rating	4.04 out of 5
Target Audience	Beginner to Intermediate Investors
Focus	Can slim investing strategy, fundamental and technical analysis

William J. O’Neil is an acclaimed entrepreneur, stockbroker, and writer. His book has been written for individual investors. O’Neil offers the CAN SLIM strategy, a systematic approach to stock selection based on seven key traits. It is a tried-and-true method for reducing risk while increasing profits. The book further covers technical analysis, including chart reading and the use of technical indicators to detect trends and prospective purchasing opportunities.

The Art of Currency Trading

Book	The Art of Currency Trading
Author	Brent Donnelly
Goodreads Rating	4.46 out of 5
Target Audience	Beginner to Intermediate Investors
Focus	Foreign exchange trading, currency pairs, trading strategies

The Art of Currency Trading is an in-depth manual on foreign exchange trading. The book is authored by a professional interbank FX trader with over 20 years of experience. It covers the fundamentals of the forex market, currency pairs, and trading strategies. The book also studies economic data and news events that can affect currency rates. It discusses the significance of trading psychology and advises investors to refrain from making rash decisions and remain patient.

The Art of Trading Currency by Brent Donnelly

Coffee Can Investing

Book	Coffee Can Investing
Author	Saurabh Mukherjea
Goodreads Rating	4.06 out of 5
Target Audience	Long-term Investors
Focus	Long-term investment strategy, quality mid-cap stocks

Author Saurabh Mukherjea introduces the coffee can investing approach in this book. It is a long-term investment strategy focusing on purchasing and holding high-quality mid-cap equities. The objective is to let the investments compound over time, usually over five years or longer. This low-risk strategy concentrates on quality stocks with solid fundamentals and a track record of performance. Mukherjea also uses case studies and examples to assist readers in comprehending the concept of Coffee Can Investing.

Trading for a Living

Book	Trading for a Living
Author	Alexander Elder
Goodreads Rating	4.06 out of 5
Target Audience	Intermediate to Advanced Traders
Focus	Trading psychology, money management, trading strategies

Alexander Elder’s Trading for a Living delves into the psychology, strategies, and money management aspects of trading. The book highlights the significance of mastering the three M’s of trading: Mind, Method, and Money. A major focus of the book is the significance of risk management.

Dr. Elder highlights the importance of using stop-loss orders and risk management to protect capital. He treats trading as a serious business and encourages readers to take a professional approach. This includes keeping accurate records and approaching trading as a talent that can be refined over time.

How to Make Money With Breakout Trading

Book	How to Make Money With Breakout Trading
Author	Indrazith Shantharaj
Goodreads Rating	4.25 out of 5
Target Audience	Intermediate Traders
Focus	Breakout trading strategy, entry and exit points

How to Make Money With Breakout Trading focuses primarily on breakout trading, a strategy in which an investor enters the stock market when the price breaks over a level of support or resistance, hoping the momentum will carry over.
Breakout trades must have a clear entry trigger. This guarantees that you enter the deal with reasonable expectations and at the right time. The book also discusses defining exit circumstances for profitable and failed bets.

The Little Book of Common Sense Investing

Book	The Little Book of Common Sense Investing
Author	John C. Bogle
Goodreads Rating	4.16 out of 5
Target Audience	All Investors
Focus	Passive investing, index funds, minimizing investment costs

John Clifton is the founder and former CEO of The Vanguard Group. This widely regarded book offers major insights into the basics of passive investing and index funds. The book’s key point is to keep investment expenses as low as possible. According to Bogle, excessive fees associated with actively managed funds can considerably erode returns over time, and investors are better off focusing on low-cost solutions. The book warns readers to be aware of new investing trends and to keep investment techniques simple.

Conclusion

In the constantly changing world of finance, it’s critical to keep informed and never stop learning. Each recommended book offers a unique perspective, allowing readers to traverse the complexities of trading and the stock market confidently.

FAQs

Which are the best books to understand trading and the stock market?

Some of the best books to understand trading and stock market are:

The Art and Science of Technical Analysis
One Up on Wall Street
How to Make Money in Stocks
The Art of Currency Trading
Coffee Can Investing
Trading for a Living
How to Make Money With Breakout Trading
The Little Book of Common Sense Investing

Can I learn trading on my own?

Yes, you can learn trading on your own through self-study and practice. However, learning trading doesn’t happen overnight. If you don’t have the time or motivation to train yourself well in trading, then it’s better not to trade. Achieving a winning trading system in the long term would require a lot of hard work and effort.

What is a good P/E ratio?

Typically, the average P/E ratio is around 20 to 25. Anything below that would be considered a good price-to-earnings ratio, whereas anything above that would be a worse P/E ratio. But it doesn’t stop there, as different industries can have different average P/E ratios.

February 16, 2024

13 Best Foreign Exchange Companies to Look For in 2022
180 currencies are recognized as legal tender around the world today. Foreign exchange is the process of changing one currency into another for various reasons, usually for commerce, trading, or tourism. It is one of the most actively traded markets in the world, with an average daily trading volume of $6.6 trillion.

The vast majority of currency conversion is undertaken to earn a profit. A foreign exchange company also known as a foreign exchange broker or simply forex broker is a company that offers currency exchange and international payments to private individuals and companies.

The foreign exchange market is a global decentralized or over-the-counter market for the trading of currencies. The conversion rates for almost all currencies are constantly floating as they are driven by the supply and demand market forces.

Factors Affecting Currency Value
- The value of any particular currency is determined by market forces related to trade, investment, tourism, and geopolitical risk.
- Foreign exchange is handled globally between banks and all transactions fall under the auspice of the Bank for International Settlements (BIS).
- The factors include various economic, political, and even psychological conditions.
- The economic factors include a government’s economic policies, trade balances, inflation, and economic growth outlook.
- Another important factor of demand occurs when a foreign company seeks to do business with another in a specific country.
1. Citigroup Inc.
2. HSBC Holdings Plc
3. State Street Corporation
4. Deutsche Bank AG
5. JPMorgan Chase & Co.
6. Barclays PLC
7. XTX Markets Limited
8. Goldman Sachs Group, Inc.
9. Standard Chartered Group
10. UBS AG
11. BNP Paribas Group
12. Royal Bank of Scotland Plc
13. Saxo Bank

1. Citigroup Inc.

Founded: 1998

Headquarters: New York

Citigroup website homepage

Citigroup Incorporation is also known as Citi is a financial service corporation started in 1998. It is an American-based multinational company focusing on financial services and is headquartered in New York. Citigroup is given the tag of being the third largest banking institution group in the US and also forms an integral part of the big four banking institutions of the US.

The formation of Citigroup Incorporation was quite dramatic with the merger of two big firms named Citicorp and Travelers Group. Citicorp was a banking giant whereas Travelers Group was a big financial corporation. Citigroup mainly focuses on providing the best financial services to its clients.

The services given by Citigroup, in general, include facilities like providing financial services to different people falling in the organization of government, corporate, institution, etc. They also strive to provide simple yet effective financial solutions to their clients.

Pros of Citigroup Inc forex:
- Includes more than one brand for its clients to select from for forex trading.
- The platform allows international trading of foreign currency with its wide working area.
- Allows forex trading at $0 commission to its clients.
2. HSBC Holdings Plc

Founded: 1865

Headquarters: London

HSBC website

HSBC is acknowledged as the largest bank in Europe initiated in the year 1865. It is a multinational universal bank along with a financial holding British company. It is headquartered in London. The letters HSBC belong to the initials of its origin by the Hongkong and Shanghai Banking Corporation.

HSBC is one of the biggest banking service-providing companies with more than 64 countries covered and around 40 million customers served. The company mainly focuses on providing banking and financial services along with inventing new methods to make banking easy. It also allows different financial services like trading, private and investment banking, capital market, etc.

Pros of HSBC Holdings Plc forex:
- Direct access to all facilities is provided rather than the involvement of any third-party service providers.
- The process is made transparent and clear by the platform for easy use.
- Can be accessed from multiple regions.
3. State Street Corporation

Founded: 1792

Headquarters: Boston

State Street Corporation website

State Street Corporation is counted among the oldest operating banking companies in the US. It was initiated in the year 1792 and is headquartered in Boston. State Street Corporation is counted as a financial service provider and a bank holding company.

State Street Corporation is ranked 15th among the largest banks in the United States. The firm is responsible for providing services like cash management, services revolving around international exchanges, financial assets management, and also provides investment advisory services.

Pros of State Street Corporation forex:
- It provides fully automatic service that is 100% transparent for its customers.
- The service is available in almost all major regions across the world.
- Excellent services are provided by the platform including the best customer service support.
4. Deutsche Bank AG

Founded: 1869

Headquarters: Frankfurt

Deutsche Bank AG website

Initiated in the year 1869, Deutsche Bank AG is a Germany-based financial service providing firm. It has its headquarters located in Frankfurt, Germany. The firm mainly works in the field of providing investment banking services along with other financial services to its clients worldwide.

Deutsche Bank AG is considered the largest financial service-providing firm in Germany and is also included in the list of largest banks in the world. The firm focuses on four different aspects of banking services including the investment bank, corporate bank, private bank, and asset management.

The firm helps government and private organizations along with small and medium-sized businesses by providing them with the needed services in the banking field to provide ethical and sustainable services to all.

Pros of Deutsche Bank AG forex:
- The forex process is completely seamless and transparent with quick actions.
- Provides competitive rates on the foreign exchange currency.
- Provides swift transfer of funds through its platform.
5. JPMorgan Chase & Co.

Founded: 2000

Headquarters: New York City

JPMorgan Chase & Co. website

Initiated in the year 2000, JPMorgan Chase & Co. is the largest multi-financial bank in the world at the present year. JPMorgan Chase & Co. is an America-based multinational company focused on providing services related to investment banking services and financial banking services with its headquarters located in New York City.

JPMorgan Chase & Co. forms an integral part of the large four banks of America and is currently in the fifth position of the largest banks in the world for its assets. The firm mainly focuses on providing services like asset management, investment management, private equity, etc. The services provided by them are mainly targeted at individuals and businesses.

Pros of JPMorgan Chase & Co. Forex:
- Services are provided worldwide.
- Has different customizable options for easy understanding of the tools and news.
- Provides access to the largest committee of currency pairs.
6. Barclays PLC

Founded: 1960

Headquarters: London

Barclays PLC website

Barclays PLC was introduced in the year 1960 as the universal multinational bank based in Germany. It has its headquarters located in London and is known to provide services worldwide.

Barclays is operated as two different units termed Barclays UK and Barclays international. The firm mainly focuses on providing services like retail banking, credit services, investment banking, wealth management, etc.

Pros of Barclays PLC forex:
- Provides detailed market insight to their clients.
- Has an excellent customer support system.
- Includes different tools for foreign exchange risk management.
7. XTX Markets Limited

Founded: 2015

Headquarters: London

XTX Markets Limited website

XTX Markets Limited was introduced in 2015 as an algorithmic trading company with its headquarters located in London. XTX Markets Limited is a non-banking firm that still comes under the list of top liquidity providers for the foreign exchange market.

The services provided by XTX Markets Limited mainly focus on equities, foreign exchange, commodities, fixed income, derivatives, etc.

Pros of XTX Markets Limited forex:
- The platform is multilingual and supports 26+ languages.
- Provides fair and efficient services.
- The platform is counted amongst the top 3 forex liquidity providers.
8. Goldman Sachs Group, Inc.

Founded: 1869

Headquarters: New York City

Goldman Sachs Group, Inc. website

Founded in 1869, Goldman Sachs is an America-based investment and financial service providing the firm with its headquarters located in New York City. The firm is quite famous for its investment in budding startups.

Goldman Sachs Group, Inc. comes second in the list of investment banks across the world due to its revenue. And is also included in the list of Fortune 500. The firm mainly provides services like asset management, commercial banking, investment banking, etc.

Pros of Goldman Sachs Group, Inc. forex:
- Has a range of tools that helps its clients with a better estimation of trading platforms.
- Has a demo account for the clients to work and experience the service of Goldman Sachs to try before.
- They serve worldwide.
Currency composition of world FX

9. Standard Chartered Group

Founded: 1853

Headquarters: London

Standard Chartered Group website

Standard Chartered Group was established in 1853 with its headquarters in London. It is a universal bank known to operate a large chain of units. Standard Chartered is a Britain-based multinational company providing financial and investment services.

Standard Chartered Group is known to own a network of more than 1200 branches and outlets in different parts of the world. They cover more than 70+ countries. The firm mainly works in the field of providing services to corporate and institutional services only.

Pros of Standard Chartered Group forex:
- They provide excellent guidance to their clients for a better understanding of the terms and strategies.
- The platform is widely spread across the globe and can give access to multiple currencies.
- Their help support is quite reliable.
10. UBS AG

Founded: 1998

Headquarters: Zurich

UBS AG website

Introduced in 1998, UBS AG is the largest Swiss banking instruction, also co-headquartered in Zurich and Basel. It is a multinational and Switzerland-based financial service providing company also focusing on investment banking.

UBS AG is the third largest bank in Europe. It focuses on providing services to private and government organizations. The services provided by UBS AG fall in the category of global wealth management, personal and corporate banking, investment banking, etc.

Pros of UBS AG forex:
- They provide a worldwide network with a global franchising platform to sort out their client’s needs.
- The platform keeps on updating from time to time to meet up the demands of the real world.
- They provide excellent customer support along with the required guide to the platform.
11. BNP Paribas Group

Founded: 2000

Headquarters: France

BNP Paribas Group website

Founded in 2000, BNP Paribas Group was formed by the merger of two different firms named National Bank of Paris and Paribas. The initials BNP came from the National Bank of Paris and Paribas came from other parts of the merger. It is a French company with its headquarters in France.

BNP Paribas is counted among the top 10 largest banks in the world and is placed second as the largest bank group in Europe. It provides services focused on the category of commercial, personal banking, and services. It also provides services for corporate and institutional banking. It also works to provide investment and financial services.

Pros of BNP Paribas Group forex:
- The platform provides secure and safe transactions.
- Allows access to more than 130 currencies for the FX.
- Provides optimal tools to make the process more efficient.
12. Royal Bank of Scotland Plc

Founded: 1724

Headquarters: Edinburgh

Royal Bank of Scotland Plc website

Introduced in 1724, Royal Bank of Scotland Plc is a major player in the field of the retail and commercial banking sector in Scotland. Its headquarters are in Edinburgh. Royal Bank owns more than 700 branches across the country of Scotland and a few branches spread out in the major towns and cities covering England and Wales.

Royal Bank of Scotland Plc works to provide services to trusts, charities, private companies, etc. Its services include online banking, investments, saving accounts, fund transfer, etc. The firm operates by the means of a large networked server including different branches, outlets, online communication, etc.

Pros of Royal Bank of Scotland Plc forex:
- They provide services concerning more than 60+ currencies from across the world.
- Customized solutions are provided by them to fulfill the needs of their clients.
- Provides help with advanced tools to manage the account and get more insight to risk management terms.
13. Saxo Bank

Founded: 1992

Headquarters: Denmark

Saxo Bank website

Introduced as a brokerage firm in 1992, now called Saxo Bank is a Danish firm giving out services like investment and online trading. It is headquartered in Denmark and the firm operates as an online broker platform.

Saxo Bank is in connection with more than 180 countries and provides services like investment banking solutions, online platforms for trading and investment, etc. The firm is widely spread in different parts of the world.

Pros of Saxo Bank forex:
- Saxo Bank is acknowledged as the best forex broker and has an online trading platform from multiple sources.
- Has great tools to help their customers get their needs completed.
- Multiple currencies are supported by the platform.
Conclusion

The word “Forex” stands for the combination of two words foreign exchange. Forex means changing the currency of one country into another. This method requires different terms and rules to follow than the normal currency exchange. Foreign Exchange of currencies is done because of many reasons but not many platforms are trusted for the process. The above article contains a list of foreign exchange companies with their features.

FAQs

What are the top 10 currencies in the world?

The top 10 currencies in the world are Kuwaiti Dinar, Bahrain Dinar, Oman Riyal, Jordan Dinar, Pound Sterling, Cayman Island Dollar, European Euro, Swiss Franc, US Dollar, and Canadian Dollar.

What is the foreign exchange market?

A foreign exchange market is a trading place where the currencies of multiple countries are bought and sold at different rates just like the stock market.

Which currency has the lowest value?

The least valued currency can keep changing concerning changes in currency value. However, at present time Iranian Rial is considered the lowest valued currency.

What is forex earning?

Forex earning means the profit earned by selling goods and products in the global marketplace. It can also mean the simple exchange of only currencies in the global market as per the demand and supply rule.
July 27, 2022
Cryptocurrency: Boon Or Bane to The World Economy
With the industrialization and absorption of technology, digital currencies are gaining much importance of late. Bitcoin is undoubtedly one of the most popular digital currencies because it was the first-ever cryptocurrency that was discovered in 2009, by the pseudonymous developer Satoshi Nakamoto. Therefore, the people who are aware of cryptocurrencies and their concepts are well-versed with bitcoins at least.

The global cryptocurrency industry was last estimated towards the end of 2021 at $910.3 million and is expected to grow at a CAGR of 11.1% to $1902.5 million in 2028. Though we are still devoid of the exact data, the total cryptocurrency investors in India range between 15-20 million, where the total crypto holdings were estimated at 400 billion rupees ($5.37 billion).

Though the cryptocurrencies or the income drawn by the Indians from the same were not taxed earlier, in a recent move to bring the cryptocurrencies and non-fungible tokens (NFTs) under the tax bracket, the Indian Finance Minister Nirmala Sitharaman announced a 30% tax on the income from the transfer of virtual digital assets on February 1, 2022, Tuesday. Sitharaman further specified that no deductions and/or exemptions would be allowed here. The crypto tax, being proposed at 30%, is the highest tax band that has been introduced in the country so far. This crypto tax news is also happily welcomed by the crypto industry, founders and entrepreneurs alike. The chiefs of 3 major organizations – WazirX, CoinDCX, and ASQI responded cheerfully to the news as soon as it was disclosed by the Indian government, happy at the progressive stance the government is taking.

In this article, we will talk about the significant advantages and disadvantages of Cryptocurrencies.

What Is Cryptocurrency?
Types of Cryptocurrency
Pros of Cryptocurrency
Cons of Cryptocurrency

What Is Cryptocurrency?

Cryptocurrency Adoption in Different Countries

A cryptocurrency is a type of virtual currency that uses digital files as money. Normally, the files are designed using the same methods as cryptography. Cryptocurrencies use ‘decentralized control’, which means that they aren’t managed by the government or one person.

Types of Cryptocurrency

There are many different types of cryptocurrency in the market that are taking the world by storm. Some well-known currencies are:

Bitcoin (BTC)

Bitcoin is the most popular cryptocurrency out there and its development is the inspiration and result of the development of other cryptocurrencies. It was founded in the year 2009 by Satoshi Nakamoto, whose identity is revealed. The current value of bitcoin is INR 1514136.15

Litecoin (LTC)

Litecoin was developed in the year 2011. The creator was Charles Lee, who was a former Google engineer. The current market value of Litecoin is INR 3934.91. It is quite similar to bitcoin and is popular as well.

Ethereum

Ethereum was founded by programmer Vitalik Buterin in 2013, he is also the co-founder of Bitcoin Magazine. The current market value of Ethereum is INR 83896.38.

Zcash (ZEC)

Zcash, another form of cryptocurrency was founded by Zooko Wilcox-O’Hearn. This crypto was developed and released in the year 2016. The current market value of Zcash is INRT 4716.53.

Stellar Lumen (XLM)

Stellar Lumen was created by Jed McCaleb in 2014, who is an American programmer and entrepreneur. as it is cheap it is said to be good for investment. The current market value of Stellar Lumen is INR 8.4.

Cardano

Another cryptocurrency that is taking over the world is Cardano. It was developed by Charles Hoskinson, who is also the co-founder of Ethereum. The current value of Cardano is INR 35.31.

Cons of Cryptocurrency

People are getting more and more obsessed with cryptocurrency. Here are some advantages of Cryptocurrency investments:

Protection from Inflation

It’s one of the great advantages of cryptocurrency as inflation has caused multiple currencies to make their value decline over time. Nearly every cryptocurrency, at the time of its launch, is issued with a set amount. The source code defines the amount of any coin; like, there are only 21 million Bitcoins released in the world. So, as the demand increases, its value will rise, which will keep up with the market and, in the long run, restrain inflation.

Instant and 24 Hour Accessibility

It is possible that you can spend or purchase anywhere you are, and you do not even require a system to use it. Everything can be done from your mobile device, implying that even those with limited usage of technology are still able to make their investments and make decisions in real-time. This convenience is a fundamental feature for the selection and buying of bitcoin and it is being used all over the world to give opportunities for those who would earlier have struggled to become online customers.

Self Governed and Managed

Governance and preservation of any currency are determinants for its development. The cryptocurrency transactions are collected by miners on their hardware, and they get a transaction charge as a reward for doing so. Since the miners are getting paid for it, they keep transaction records precise and updated, maintaining the honesty of the cryptocurrency and the records decentralized.

Secure and Private

Privacy and security have always been a primary concern for cryptocurrencies. The blockchain record is based on many numerical puzzles, which are difficult to decode. This makes a cryptocurrency extra secure than conventional electronic transactions. Cryptocurrencies, for better safety and privacy, use pseudonyms that are unconnected to users, accounts, or saved data that could be connected to a profile.

Ease in Currency Exchange

Cryptocurrency can be obtained using multiple currencies like the US dollar, European euro, British pound, Indian rupee, or Japanese yen. With the help of different cryptocurrency pocketbooks and exchanges, a currency can be converted into another by trading in cryptocurrency, with minimal transaction fees.

Decentralized

A significant advantage of cryptocurrency is its decentralization. The majority of cryptocurrencies are regulated by the developers using them, and the individuals who have a notable amount of the coin. The decentralization assists keep the currency monopoly free and in check so that no organization can ascertain the movement and the value of the coin, which, in turn, will keep it stable and secure, unlike currencies that are controlled by the government.

Cost-Effective Mode Of Transaction

One of the important applications of cryptocurrencies is to transfer money across borders. With the help of cryptocurrency, the transaction expenses handled by a user are decreased to a negligible amount. It does so by eradicating the necessity for third parties, like VISA or PayPal, to approve a transaction. Transactions, whether foreign or national in cryptocurrencies, are lightning-fast. This is because the verification requires very little time, as there are very few hurdles to pass.

Cons of Cryptocurrency

There are many reasons cryptocurrencies are still facing the heat from people. Some of the disadvantages of cryptocurrency investment are:

Used for Illegal Transactions

Since the privacy and security of cryptocurrency transactions are stable, it is difficult for the government to track down each user by their wallet address or keep checks on their data. Bitcoin has been used as a mode of exchanging money for a lot of illegal contracts in history, such as acquiring drugs on the dark web. Cryptocurrencies are also used by some to convert their illegal money through a trustworthy mediator to mask its origin.

No Security in Case of Loss

As with emerging technology, some use incompetence to scam, trick and steal your hard-earned bucks. This has proven to be the problem with digital currencies, so it is necessary to be informed of the security risks. With a few primary security, one can decrease the possibility of causing a loss that cannot be restored.

Conversion of Cryptocurrencies

Some cryptocurrencies can only be patronized in one or a few fiat currencies. This limits the user to convert these currencies into one of the major currencies, like Ethereum or Bitcoin, then through other exchanges, to their wanted coin. By doing so, the additional transaction fees are added in the process, requiring unnecessary money.

Adverse Effects of Mining on the Environment

Mining cryptocurrencies requires a lot of power and electricity, making it extremely energy-intensive. The greatest culprit in this is Bitcoin. Mining Bitcoin requires advanced computers and enormous energy. It cannot be done on regular computers.

No Refund or Cancellation Policy

If there occurs a dispute between involving parties, or if a person wrongly transfers funds to the wallet address, they cannot be recovered by the sender. As there are no rebates, one can generate a transaction whose product or services they never received.

Prone to Market Fluctuations

There are numerous ways that one can use cryptocurrencies, but a lot of people utilizing them at the moment are solely using them as an investment. While eager users are using their digital money to purchase tickets to sporting events, gamble online, or wait for the market fluctuations to work in their favour. Treating your bitcoins as any other commodity may be the way to initiate a more widespread understanding and trust in the new currencies.

Conclusion

With recent developmental and rules regarding cryptocurrency in every country. People are getting more and more interested in them. Of course, there are cons of cryptocurrencies that make people question themselves before indulging in them. However, with technology taking over the world, people cannot deny the pros of cryptocurrencies. It is just a matter of time before cryptocurrency will take over the world.

FAQs

What are the advantages of Cryptocurrency?

The advantages of Cryptocurrency are that it is decentralized in nature, it is not affected by inflation, and transferring money across borders is easy.

What are the disadvantages of Cryptocurrency?

Some of the disadvantages of cryptocurrency are, It is used for money laundering, it is highly volatile and it has high-security risks.

Is it good to invest in Cryptocurrency?

Investing in crypto can be profitable but it is risky too, as it is a highly volatile currency and is prone to market fluctuations.

What are the different Cryptocurrency wallets?

Some of the best Cryptocurrency wallets are:
- Coinbase
- Binance Chain (BNB)
- PointPay Banking Wallet
- Bitfinex
- Blockchain
- Paxful Wallet
- Overbit
- eToro
- Ledger Nano
- WireX
July 2, 2022
What is Stablecoin and How is it better than Bitcoin

Stablecoins are gaining popularity in the recent years. As of May 2020 Stablecoins, were worth USD 10 billion. In certain countries like Brazil, people are preferring stable coins to their national currencies. That is during uncertain economic conditions. Let’s look at the below article for the meaning of stable coins and is stable coins better than bitcoins.

What are Stablecoins?
List of Stablecoins
Real-world Applications of Stablecoins
Why is it better than bitcoin?
FAQ

What are Stablecoins?

Stablecoins are a new group of cryptocurrencies. The name itself gives the meaning which says stable. Stablecoins are cryptocurrencies that attempt to offer stability in the price movement. They are backed by a reserve asset.

It is a cryptocurrency that is tied to an outside asset such as U.S Dollar, Gold, or any other asset to stabilize the price. Stablecoins have gained fiction as they attempt to offer the best of both the worlds such as the privacy of payments of cryptocurrencies and the instant processing plus the volatility-free stable valuations of fiat currencies.

The popularity of stable coins has risen so far that the headlines of the crypto market in recent months have Stablecoins in it. They are primarily developed to minimize the volatility of the price.

List of Stablecoins

Fiat-collateralized Stablecoins

This type of Stablecoins is the ones which have its underlying value derived from a fiat currency or in simple words the Stablecoins are pegged towards certain country’s currency such as U.S Dollar, Euro, Yen, etc.

One of the well-known fiat collateralized stable currency is Tether which is shortly known as USDT. This Stablecoin is pegged to the value of the U.S dollar in the ratio 1:1. This means that 1 Tether is equal to the value of 1 U.S Dollar.

Another example of a well-known Stablecoin is Gemini which is shortly known as GUSD. This Stablecoin is pegged to the value of the U.S dollar in the ratio 1:1. This means that 1 Gemini is equal to the value of 1 U.S Dollar.

Reasons Why Indian government wants to ban Cryptocurrency

Indian Government is planning to introduce a new bill that will ban all theprivate cryptocurrencies in the country. The government has plans to bancryptocurrencies such as bitcoin and Ethereum and to introduce a nationalcryptocurrency. The new bill is planned to be introduced in the lower house o…

StartupTalkyAlan Joseph

Non-Collateralized stablecoins

Non-collateralized Stablecoins are not backed by any asset classes. These Stablecoins run on certain algorithms which will manage the supply and demand of these coins and keeps the prices stable. Some examples for Non-Collateralized Stablecoins are CarbonUSD which is also known as Carbon and kUSD which is also known as Kowala.

Types of Stablecoins

Commodity-Collateralized Stablecoins

Some Stablecoins are backed to certain precious metals such as gold, metals, or commodities such as oil. These Stablecoins are known as commodity-collateralized Stablecoins.

One of the well-known commodity-collateralized Stablecoin is Digix that has its short form as DGX which is backed by the commodity Gold. This means that 1 DGX is equal to 1 gram of Gold on the ETH network.

One of the other examples of commodity-collateralized Stablecoins is Tiberius Coin which has its short form as TCX. The Stablecoins are backed by the combination of 7 different metals which is commonly used in the development of hardware technologies. The idea behind pegging it towards the 7 metals is as these metals are extensively used to make technology will indirectly increase the value of TCX.

Crypto-Collateralized Stablecoins

These are stable coins which are pegged against different cryptocurrencies. Crypto-collateralized Stablecoins will always be in the 1:1 ratio through over-collateralization.

BitUSD is a well-known Stablecoin which is crypto-collateralized token, that is collateralized towards a cryptocurrency named Bitshares.

Why Most of the Wealthy Investors avoid Investing in Bitcoin

Most of us would have heard about bitcoin and cryptocurrencies. It is all overthe news and everyone speaks about the fancy returns provided by this digitalcoin. It has created its mark in the market. It was not so famous some yearsback and the value of the coin was not so high. The popularity h…

StartupTalkyAlan Joseph

Real-world Applications of Stablecoins

Day-to-day currency

Stablecoins can be used as fiat currency that can be used as a mainstream payment. It has an additional benefit of being a virtual coin. It is legally backed and secured as well. These are also very useful for overseas payment as no conversions of fiat currencies and can be used irrespective of the country or place.

In streamlining P2P payments

You can use Stablecoins as an ideal payment option for loan payments, rent payments, subscriptions and more as it is irreversible, traceable and transparent.

Protection from local currency crashes

On an average the prices of goods keep doubling every few weeks. Stablecoins are used as a replacement to maintain fiat currencies from crashing in value.

Stablecoins will offer notable solution to all these problems by allowing them to quickly exchange their fiat currency into a stable currency. Thus, it prevents them from further price drops.

Why is it better than bitcoin?

Stablecoins provide stability and it is one of the major reasons why it is better than bitcoins as the world looks at stability. Stablecoins also ensure faster transfer of money across different locations. Stablecoins can also replace fiat currencies in certain countries where their currencies are unstable.

The Story of Dogecoin | Everything You Need to Know about Dogecoins

Invented by software engineers Billy Markus & Jackson Palmer, Dogecoin is acryptocurrency. It features the face of Shiba Innu dog from the “Doge” meme asits logo & name. Discover all about the Story of Dogecoin in the article ahead… What are Dogecoins?Formation and History of DogecoinDogecoi…

StartupTalkyPratiksha Bajikar

FAQ

What is an example of a Stablecoin?

Tether (USDT) is a Stablecoin, So named because it “tethers” itself to the value of the USD, Tether is the most well-known Stablecoin in the crypto world. It’s backed by gold, traditional currency and cash equivalents.

What is Stablecoin used for?

Stablecoins are cryptocurrencies that attempt to peg their market value to some external reference. Stablecoins may be pegged to a currency like the U.S. dollar or to a commodity’s price such as gold.

Can Stablecoins increase in value?

Fiat-backed stablecoins are considered to be the most stable of stablecoins, but this stability doesn’t make them a very profitable long-term investment and their value is unlikely to increase significantly over time.

Conclusion

We may see stablecoins demand increasing in the future and will even be able to see much more stablecoins coming up in the future.

April 17, 2021