Crypto newbie – Midas.Investments. Crypto investment company blog. https://blog.midas.investments All about passive income in crypto by Midas.Investments. How-to, announcements, coin news and articles. Mon, 21 Nov 2022 12:42:55 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.9 https://blog.midas.investments/wp-content/uploads/2021/05/cropped-favicon-32x32.png Crypto newbie – Midas.Investments. Crypto investment company blog. https://blog.midas.investments 32 32 A Guide to Crypto Collectibles and Non-fungible Tokens (NFTs) https://blog.midas.investments/a-guide-to-crypto-collectibles-and-non-fungible-tokens-nfts/ https://blog.midas.investments/a-guide-to-crypto-collectibles-and-non-fungible-tokens-nfts/#respond Wed, 28 Apr 2021 12:57:20 +0000 https://blog.midas.investments/?p=1413 Whether collecting priceless pieces of artwork worthy of being hung up in the Louvre, or simply tingling senses with a hobby by assembling collections of stamps or beanie babies, the essence remains the same – owning a set or a unique item that bears either intrinsic or sentimental value. The uniqueness of the item in question is highlighted by its scarcity – a quality that sets said item apart in the overall economic system as a rare and, ergo, a highly demanded object. The law of scarcity thus intertwines with the law of supply and demand, ensuring the rise in price and value of the given item by virtue of its being unique. As the supply of an item decreases, demand for it must increase based on economic sense and basic human nature that wishes to have an individual stand out from the crowd by showcasing the possession of rare objects of luxury or value. The digital realm is the latest iteration of the economic battlefield, where advanced and innovative technologies are vying for market segments, and the volumes of funds circulating there. Truth be told, there is always money to be made on innovations, provided they are accurately targeted […]

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Whether collecting priceless pieces of artwork worthy of being hung up in the Louvre, or simply tingling senses with a hobby by assembling collections of stamps or beanie babies, the essence remains the same – owning a set or a unique item that bears either intrinsic or sentimental value.

The uniqueness of the item in question is highlighted by its scarcity – a quality that sets said item apart in the overall economic system as a rare and, ergo, a highly demanded object. The law of scarcity thus intertwines with the law of supply and demand, ensuring the rise in price and value of the given item by virtue of its being unique. As the supply of an item decreases, demand for it must increase based on economic sense and basic human nature that wishes to have an individual stand out from the crowd by showcasing the possession of rare objects of luxury or value.

The digital realm is the latest iteration of the economic battlefield, where advanced and innovative technologies are vying for market segments, and the volumes of funds circulating there. Truth be told, there is always money to be made on innovations, provided they are accurately targeted on lucrative forms of application of the underlying technology to cater to the participants of said markets.

The advent of decentralized technologies has heralded a completely new turn in the development of real-world assets as their digital counterparts emerged in the form of Non-Fungible Tokens.

The NFT Phenomenon

When it comes to immutability, the blockchain is the undisputed leader, allowing anyone to view, track and audit the movement of assets anywhere on the network. The same quality of immutability can also be used to the advantage of users seeking to solidify their rights to certain assets that exist outside the digital space. Though it had seemed daunting at first, the issue of bridging the gap between the digital and physical worlds was overcome through the advent of two unique token standards – the ERC-721 and ERC-1155.

Both standards allow tokens on their basis to be issued in unique formats with distinctive identifiers that automatically adhere to the qualities stated in their description details. But the Ethereum network is not the only one to have released NFT standards, as NEO, Tron, Eos and other blockchains have all rushed to provide their own formats in order to attract, or rather detract, developers from Ethereum to their own chains.

Blockchain debates aside, all NFTs share a set of characteristics that make them the ideal technological medium for guaranteeing rights of ownership to assets tethered to them.

First, all Non-Fungible Tokens are non-interoperable, which means that they will exist solely on the blockchain they were issued on. In practice, this means that an asset, be it a work of art NFT or a gaming character NFT, will be operable only on the blockchain it was released for. This measure guarantees the NFT will never be lost or lose its value due to swaps or migrations from one blockchain to another.

Second, NFTs cannot be divided into any portions smaller than they already are. Unlike Bitcoin, which can be fractured into Satoshi, Gwei etc., an NFT will remain wholesome throughout the duration of its existence.

Third, all NFT are issued indefinitely, which means that their existence is directly tied to the overall existence of the underlying blockchain’s entire string of records. Once issued, an NFT is permanently and immutably recorded into the network. This measure is an added guarantee against any forgery, replication, duplication, removal or destruction of the asset from circulation. Once a buyer acquires an NFT, it is permanently theirs to dispose of, unlike the tethered real-world object, which can be damaged, lost, destroyed or duplicated. The given quality is an excellent measure of defense against any kind of forgery, as there cannot be two of the same objects in existence if one of them is registered by an NFT.

Fourth, all NFTs can be verified, like any other digital asset on the blockchain. Their records are permanently engraved into the blockchain, which allows anyone to freely trace their origin to the original owner, creator or issuer. This measure hides another benefit, which is the lack of need for any intermediaries when it comes to verifying the authenticity of ownership rights. Unlike specialized agencies that evaluate artwork for authenticity, the blockchain allows anyone with an ETH or other tracker to check the information backing any NFT on the market.

Why NFTs Matter At All

Piracy and forgery are mainstays of the art and creator markets. Just as criticism became the inevitable afterbirth of art, so too did the desire to replicate it without having to pay the original price to the creator. The given actions constitute infringement of authorship and copyright laws – crimes that are punishable to a significant degree in virtually all countries of the world. However, laws are often insufficient to stop forgers from copying priceless paintings and selling them as originals, or digital pirates from copying music and video games for the same purposes of illegal enrichment on the hard work and talent of others.

With crime identification – being caught is the crime, not the act itself. The end losers of the incessant battle between forgers and creators are the artists, who are losing significant amounts of revenue to criminals, who simply copy original works and sell them at considerably lower prices. This state of affairs is precisely what the advent of Non-Fungible Tokens can change.

Apart from being the perfect medium for verifying the origin, authenticity and ownership of rights to artwork as a guarantee against replication and illicit sales, NFTs are also a form of art in themselves. It would be foolish to think that art can be limited to classical paintings or music, as any form of expression accessible to human thought and senses can be considered a form of art in varying degrees of recognition and value.

Where NFTs Can Be Used

Art is not the only area of application for NFTs, but it is the best illustration of their capabilities, as the owner of an NFT tethered to a work of art owns it by right, but the artwork itself can remain in a museum for all to enjoy. In fact, NFTs have immense, untapped potential in terms of application in the real world. The following are just some of the areas where they can be applied:

The gaming industry is one of the largest markets of entertainment, and the decentralized gaming market is catching up rapidly, inching console and PC games off the pedestals of popularity. By being accessible, portable, lightweight, convenient in use, innovative, engrossing and, most importantly – profitable – decentralized games are occupying over 80% of all transaction traffic on the Ethereum network. Such games now feature advanced technologies and graphics visualization through Virtual Reality and Augmented Reality. Most have fascinating storylines and gameplay mechanics that are both addictive and entertaining. In addition, games of this sort sport numerous in-game economic features that allow gamers to monetize the content they create themselves and the items they receive through in-game feats and draws. NFTs have immense applications in the gaming industry, as they allow players to own unique in-game items, weapons, upgrades, characters, collectible, and so on and so forth, while having absolute guarantees that no one will be able to cheat in the game and own the same item that they had paid real money for.

The financial industry has its fair share of use cases for NFTs, as shares, bonds and other valuable instruments can be sold via NFT format to prevent fraud. Banks and other institutions can leverage the qualities of NFTs to issue cards, safe deposit boxes and much more – anything that has to be attributed to a single owner.

The music and visual arts industry are thriving on the NFT sector as DJs and composers are issuing their albums in NFT format alongside digital artists like Beeple, who are selling their works for millions of dollars apiece. A tangible example is the EVERYDAYS: THE FIRST 5000 DAYS artwork by Mike Winkelmann “Beeple”, which was sold on the renowned Christie’s auction – a first for it – for a paltry $69.3 million. Another example is the CryptoPunk random pixelated artwork of a punk’s head that sold for $7.5 million.

Real world corporations and state applications are also in store for NFTs, as governments and companies can use the qualities of Non-Fungible Tokens for selling unique items. Examples include airplane tickets with unique identifiers, or even voting ballots tied to individual users. Luxury and mass brands are rushing to the NFT sector as Gucci is releasing virtual sneakers, McDonald’s is releasing NFT-tethered fries and nuggets, etc.

Money To Be Made On NFTs?

Projects releasing unique NFTs are attracting millions of dollars in investments not only from private users, but from institutional investors. Among some of the more prominent examples in the gaming industry is the Sorare fantasy football game that attracted a whopping $60 million during its sales rounds from such giants as Benchmark Capital. Another example from the gaming industry is the highly popular Japanese gacha-style Chainbinders game set in a fatnasy post-apocalyptic world that attracted over $7 million in investments and offers players a host of collectible cards.

The art industry is also making immense amounts of money on NFTs, as the renowned Christie’s auction house’s Deputy Chairman launched her own NFT platform called TR Lab in partnership with the Rockbund Art Museum and many other esteemed names in the business.

Summary

NFTs are a technology bridging the world of assets to the digital realm, facilitating ownership rights verification and dealing a severe blow to illegal use of intellectual property.

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Escaping Centralization – The DAO Approach https://blog.midas.investments/escaping-centralization-the-dao-approach/ https://blog.midas.investments/escaping-centralization-the-dao-approach/#respond Thu, 01 Apr 2021 13:05:34 +0000 https://blog.midas.investments/?p=1393 Centralization is an essential part of human civilization. It is in human nature to have a representative – a leader, a chief, a decision maker, a center of power that establishes and maintains order, makes important choices and sets the course of a society’s existence and development through time. Centralization works everywhere from the biological starting point of the human brain to national governments. A single center for all decision making. Be it the head of state, a CEO in a corporation, or the head of a family – centralization has spread through every industry, and people are fine with it. The benefits of centralization are numerous, as the dissipation of responsibility and its delegation to a trusted center elected by a majority, or established through historical events, allows the majority to disengage from critical decision making and go about their businesses. Centralization also grants stability, a certain degree of trust in the correctness of the choices made, and the possibility of having a single point of blame if the choices made were wrong. However, centralization has disadvantages as well, the most obvious of which is the loss of independence and freedom by the majority in case the elected or […]

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Centralization is an essential part of human civilization. It is in human nature to have a representative – a leader, a chief, a decision maker, a center of power that establishes and maintains order, makes important choices and sets the course of a society’s existence and development through time. Centralization works everywhere from the biological starting point of the human brain to national governments. A single center for all decision making. Be it the head of state, a CEO in a corporation, or the head of a family – centralization has spread through every industry, and people are fine with it.

The benefits of centralization are numerous, as the dissipation of responsibility and its delegation to a trusted center elected by a majority, or established through historical events, allows the majority to disengage from critical decision making and go about their businesses. Centralization also grants stability, a certain degree of trust in the correctness of the choices made, and the possibility of having a single point of blame if the choices made were wrong.

However, centralization has disadvantages as well, the most obvious of which is the loss of independence and freedom by the majority in case the elected or established centralized power base either goes out of control, becomes corrupt, or is taken over by malicious external forces. Centralization can act both in the benefit of the majority and against it. But the biggest disadvantage of centralization is the abuse of the power granted to it. Corruption, profiteering, embezzlement and other unsightly manifestations of centralization are many in governments and large corporations, spreading to entire industries and, ultimately, affecting the welfare of the majority.

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Decentralizing Authority

The advent of blockchain technologies has led to the emergence of a new kind of authority-making mechanism that was to become as decentralized as the blockchain network supporting it. The DAO, or Decentralized Autonomous Organization – is a completely autonomous organization capable of acting in any area or industry via a set of computerized nodes on the blockchain and program coding that ensure its viability, immutability and transparency.

In essence, a DAO can be fully independent of human interference through its reliance on the smart contract structure that allows it to communicate with the real world and receive vital input about external events. Though autonomous by code, a DAO is run by its members, who are bound by a single idea that the DAO was built for and upon. No contract obligations or paperwork exist in a DAO and all major decisions are made on the basis of proposals submitted by the members of the DAO. Much like in a voting process for elections or in decision-making in corporations at meetings of board directors, the members of the DAO vote on the proposals submitted and a basic majority of votes wins to pass or reject a proposal.

The members eligible for voting are called stakeholders, as they hold some part of the DAO’s issued internal currency, or have some share of its computing power. Some other forms of DAOs have proposals passed not by majority voting, but on the basis of fulfillment of some form of consensus algorithm that stands at the base of the DAO in the form of a set of rules.

The lack of a hierarchy is what sets DAOs apart from corporations and centralized authorities, as all members and stakeholders of the DAO have equal voting rights, regardless of the size of their stake. Though a DAO may look like an ideal democracy, the fact is that the interests of the members of the DAO are governed by common economic interests that are usually found at the base of all cryptocurrency economics in the form of the game theory.

The Advantages

DAOs have a major advantage over centralized organizations, as they have no leader or single decision-making entity called a principal agent. The dispersal of decision making throughout the members of the DAO makes it impossible for a majority to be formed on the basis of malignant intent, a conspiracy or insider information, thus ensuring that all decisions are transparent and their reasons evident.

Such decentralization makes corruption impossible in a DAO. In addition, the possibility of a majority taking over the organization and taking decisions on the behalf of the remaining minority is also impossible, given the fact that the stakeholders do not know and cannot physically know each other due to their geographic locations in various parts of the world.

The blockchain ensures the immutability and transparency of all transactions and decisions in a DAO, acting as the guarantor of fairness. The Bitcoin network is an excellent example of a DAO with the protocol acting as the main ruleset for all members of the network, while the currency acts as the mechanism that sets their actions in motion as an incentive instrument.

In essence, a DAO can be applied not only to base cryptocurrency operations, but real-world mechanisms requiring transparency, such as elections, government processes, corporate governance, and much more.

Full-Proof?

DAOs have been faced with criticism, considering that they do not hold any legal status under any legislative base or regulatory framework in any country. In addition to legal issues, DAOs have been accused of being susceptible to a 51% Attack, during which hackers may take control of a majority of the stakes in the organization and thus take centralized decisions. Finally, though autonomous, there is a chance that a majority of stakeholders of a DAO may cooperate and form a centralized point of governance and thus take control of a DAO.

Conclusion

A DAO is an online democracy in which the members of a community coordinate for the common benefit guided by a common goal with no fear of being governed by a central authority. Though the applications of DAOs are many, only time will tell if their digital manifestation can eventually be applied to real-world issues.

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Tether (USDT) Coin: A Stable Digital currency on the Blockchain https://blog.midas.investments/tether-usdt-coin-a-stable-digital-currency-on-the-blockchain/ https://blog.midas.investments/tether-usdt-coin-a-stable-digital-currency-on-the-blockchain/#respond Tue, 30 Mar 2021 15:46:17 +0000 https://blog.midas.investments/?p=1390 Cryptocurrencies are synonymous with volatility. Leading coins like Bitcoin can fluctuate more than 10 percent in a few hours of trading. Speculative traders thrive on this level of movement. However, it kept many traders from crypto.  That was until the introduction of USDT and other stablecoins. They facilitate the involvement of investors who are wary of the significant risk of volatility. Accordingly, it’s only natural for people to inquire, asking what is Tether (USDT) and Stablecoins. Simply put, a stablecoin is a blockchain instrument that has its value pegged to outside commodities. In this case, each Tether coin has a value that seeks to track the price of the USD.  However, the digital asset can be pegged to the Euro, JPY, and others. Maintaining this value is not easy. Tether Limited, which now has its base in Hong Kong, is the official issuer. It says that for every USDT issued, the firm holds an equivalent amount of USD, cash equivalent, and other assets kept in its reserve. A Brief History of Tether (USDT) Coin Tether emerged from the Realcoin Project in 2014. Real coin published a whitepaper in 2014 making the case for fiat currencies on the blockchain.  The issuer […]

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Cryptocurrencies are synonymous with volatility. Leading coins like Bitcoin can fluctuate more than 10 percent in a few hours of trading. Speculative traders thrive on this level of movement. However, it kept many traders from crypto. 

That was until the introduction of USDT and other stablecoins. They facilitate the involvement of investors who are wary of the significant risk of volatility. Accordingly, it’s only natural for people to inquire, asking what is Tether (USDT) and Stablecoins.

Simply put, a stablecoin is a blockchain instrument that has its value pegged to outside commodities. In this case, each Tether coin has a value that seeks to track the price of the USD.  However, the digital asset can be pegged to the Euro, JPY, and others.

Maintaining this value is not easy. Tether Limited, which now has its base in Hong Kong, is the official issuer. It says that for every USDT issued, the firm holds an equivalent amount of USD, cash equivalent, and other assets kept in its reserve.

A Brief History of Tether (USDT) Coin

Tether emerged from the Realcoin Project in 2014. Real coin published a whitepaper in 2014 making the case for fiat currencies on the blockchain. 

The issuer proposed to maintain a one-to-one ratio between cryptocurrency and fiat. The platform uses the blockchain, Proof of Reserves, and other audit methods to prove that issued tokens are fully backed and reserved at all times. 

From the Tether website, its co-founders are Brock Pierce, Reeve Collins, and Craig Sellars. Realcoin began using the name Tether in November 2014. The platform focused on three currencies; the US Dollar, the Euro, and the Japanese Yen. The US dollar has become its most popular iteration.

The stablecoin made a debut on Bitfinex exchange in January 2015. Bitfinex soon became the leading USDT marketplace, and that remained the situation for two years. 

The Tether (USDT) Lawsuit 

In 2017, the bombshell release of the Paradise papers rocked Tether (USDT) coin. These papers revealed an elaborate scheme by corporations and powerful individuals to avoid taxes by using offshore accounts. The scandal inadvertently revealed that Tether and Bitfinex shared the same management and corporate structure. Their close alliance was no coincidence. 

Fortunately, Tether emerged from this bad press period without taking a fatal blow. The 2017 crypto market Bull Run was immense for all cryptocurrencies. Some see the entry of USDT as one of the triggers for the run. 

Tether got more bad press after a subpoena from the New York Attorney General (NYAG). In the Tether (USDT) Lawsuit, the New York AG claimed that there was impropriety in USDT covering up losses. Tether and Bitfinex reached an agreement with the New York attorney general’s office to pay an $18.5 million fine. 

The management will have to do more to reassure the public that it has enough cash reserves to back all the tether tokens in circulation.

Tether (USDT) Use-Cases

USDT’s primary function is to allow traders to purchase other cryptocurrencies. Tether dominance chart shows that the stable coin leads. It is a useful way to hold cryptocurrency risk-free without having to convert to fiat. 

Tether (USDT) Etherscan data shows there are over 93 million transactions by early March 2021. The biggest USDT holders are Binance, Huobi, and DeFi protocols like Huobi.

The following is a summary of its application: 

  • Managing Volatility

Tether’s primary role is for traders to handle volatility. In bearish markets, investors don’t have to trade their holdings or convert to fiat. Tether provides an option to deal with such volatility. This conversion is convenient and reduces friction. Converting to fiat is cumbersome and attracts more fees. 

  • Payments

Bitcoin is immensely valuable. However, it is inconvenient as a payment tool because of its momentary volatility. Using Tether wallets, it allows for accounting as it is equal to fiat.

  • Transit Cryptocurrency 

Tether is a direct link between crypto and fiat. Accordingly, it provides useful transaction utility across borders. The transfers are seamless with little risk of loss of value. 

  • Liquidity for Exchanges 

USDT has since become the most popular stablecoin. It provides liquidity for exchanges. It is a significant trading pair for traders who do not have to deal with fiat. Most Bitcoin trading today is done using USDT trading pairs. Exchanges can also reduce their regulatory obligations when fiat is transacted less. 

Accordingly, Tether has become one of the most traded cryptocurrencies on crypto exchanges.  Exchanges can also use it to settle fiat balances in real-time. 

Tether Market Capitalization 

The USDT price maintains a value close to one dollar. It has a circulating supply of 20.3 million USDT and a trading volume of approximately $98.5 million.

As per the proof of funds update, Tether has at least $2,545,067,236.82 in cash to back its tokens. A law firm called Freeh, Sporkin & Sullivan LLP (“FSS”) provides counsel regarding bank documentation. 

At press time, it had a market capitalization of over $36 billion with a similar amount of USDT tokens in circulation. This figure has risen steadily with the market rally. 

In Summary

Tether plays an indispensable role in the crypto market. Its existence may baffle people new to crypto because it seems like the antithesis of cryptocurrency, explaining the many inquires searching for what is Tether. However, it has a legitimate function in stabilizing markets. 

Tether Limited will have to be transparent about its cash reserves continually. Questions about the veracity of their collateral claims continue to linger. However, the settlement of the Tether lawsuit with New York State is enough to assuage concerns.Regardless, USDT plays a vital role in making crypto handling possible for many traders. Tether (USDT) has been listed at Midas.Investments. Stakers of USDT can earn up-to 15 percent APY.

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Ultimate Guide to Investing in Crypto for Beginners https://blog.midas.investments/ultimate-guide-to-investing-in-crypto-for-beginners/ https://blog.midas.investments/ultimate-guide-to-investing-in-crypto-for-beginners/#respond Wed, 10 Mar 2021 13:22:03 +0000 https://blog.midas.investments/?p=1375 Today, when the cryptocurrency market is becoming more mature and boasts hardly believable ROI, more and more traditional finance-minded people are investing in crypto for superior gains. We decided to help newcomers with their first steps and present a quick introduction to the most important aspects of crypto investments. Every novice investor has a number of questions that immediately arise in his/her head: what to buy, when to buy, and where to buy. We will try to clarify the main points that many beginners are concerned about. What cryptocurrencies are there? Launched in 2009 by Satoshi Nakamoto, Bitcoin was the first and the best-known cryptocurrency in the world. But what is cryptocurrency?  To make the long story short, crypto is a digital currency built on the blockchain, somewhat like a totally decentralized and immutable database where no single person or group has control over the system. This makes crypto decentralized and non-controlled by governments financial instruments that can be used for payments, investments, store of value, etc. Soon after the appearance of Bitcoin, alternative coins — or altcoins — began to appear. The best-known altcoins that are issued on their own blockchains are possibly Ethereum and Litecoin, but there are […]

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Today, when the cryptocurrency market is becoming more mature and boasts hardly believable ROI, more and more traditional finance-minded people are investing in crypto for superior gains. We decided to help newcomers with their first steps and present a quick introduction to the most important aspects of crypto investments.

Every novice investor has a number of questions that immediately arise in his/her head: what to buy, when to buy, and where to buy. We will try to clarify the main points that many beginners are concerned about.

What cryptocurrencies are there?

Launched in 2009 by Satoshi Nakamoto, Bitcoin was the first and the best-known cryptocurrency in the world. But what is cryptocurrency? 

To make the long story short, crypto is a digital currency built on the blockchain, somewhat like a totally decentralized and immutable database where no single person or group has control over the system. This makes crypto decentralized and non-controlled by governments financial instruments that can be used for payments, investments, store of value, etc.

Soon after the appearance of Bitcoin, alternative coins — or altcoins — began to appear. The best-known altcoins that are issued on their own blockchains are possibly Ethereum and Litecoin, but there are many more.

What are tokens?

Tokens, unlike coins, are not based on their own blockchain but are built on top of other blockchains, Ethereum or Tron for example. They are more like company shares or internal currency. Some tokens confirm your right to have a share in the project; others allow for using some ecosystem privileges, for example, to reduce the fees. 

Why do you need tokens if there are coins?

To the investors, tokens sometimes have a greater value than coins. Investing in crypto means investing in the success of some blockchain, whereas token investments are exposed to the success of a single project. Thus, the risk of investing in tokens is usually higher as well as the possible gains. Still, knowing the difference between a crypto coin and a token is paramount.

The investing process, especially when searching for cryptocurrency to invest in, is easier when all your crypto trading activities are presented on a single dashboard. Midas.Investments offers a complete solution for managing and monitoring passive income portfolios, which will be easy and convenient to use even for beginners.

How to choose a cryptocurrency wallet?

Choosing a crypto wallet is one of the main stages in the process of working with digital assets.

There are several main types of crypto wallets, that are presented below.

Type of crypto walletDescriptionSecurity
Online walletThese wallets are available from any device: you just need to browse the page and enter your username and password. Each digital currency (for example, Bitcoin, Ethereum, Monero) has its own online service for creating a wallet.They are considered the least reliable of all the wallets connected to the web.
Local wallet with installation on a PCThese are programs that are installed on your computer. They often take up a lot of hard disk space (about 100 MB).They are considered the most secure among wallets, connected to the web because the secret keys are stored locally on the device, and not on any third-party server.
Hardware walletA hardware wallet looks like a flash drive, meaning they store private keys securely on a physical means.Such devices are considered the most reliable, since they are not connected to the Internet, which means that it will not be possible to hack such wallets from the outside.
Apps for smartphonesA mobile wallet is the best choice for users who earn money by trading Bitcoin online or often pay with cryptocurrency on the go.High-quality mobile wallets securely encode the secret key and store it on your smartphone.
Wallet on the account of the cryptocurrency exchangeWallet on the account of the cryptocurrency exchange features support for a large number of cryptocurrencies in one account and, in addition, are available from any device.Since users sign up on them remotely, and their data is stored on the server, such wallets are also considered insufficiently secure.

All these repositories for digital money differ from each other in the level of security and usage opportunities.

There is a myth that online wallets are not secure, because many of them store private keys on their servers, which can easily be hacked, but reliable online wallets do not have servers connected to the web, which protects them from possible attacks. Midas.Investments has multi-layer wallet security that protects your coins.

How and where can you exchange cryptocurrency?

There are several ways of exchanging cryptocurrencies for regular, fiat money (for example, dollars and euros): cryptocurrency trading platforms, cryptocurrency cards, which can be used to withdraw cash from crypto ATM, and the most popular – cryptocurrency exchanger.

The exchange algorithm is simple and clear even for beginners. It is alike on most exchanges: you find an appropriate exchange pair (for example, bitcoin-dollars), create a request form with wallet numbers, and receive your money within 15 minutes. The only drawback of this method is that you can often come across high fees. There are usually not enough reserve funds for popular exchange pairs on the platforms with small fees. For example, the Binance fee reaches 0.1% from each side, and the fee on one of the largest decentralized exchanger Bisq reaches 0.7% for the buyer.

Please note that there are a large number of scammers, so before exchanging money, make sure that you are going to work with a trusted platform. Thoroughly read cryptocurrency exchange reviews for an initial image before dabbling.

If you do not know where to start, just start with Midas.Investments. We have different strategies and shares that will help you to start your journey in crypto market

What do you need to know before investing in crypto markets?

Despite the fact that the cryptocurrency market is very attractive, it is also very risky, therefore caution must be practiced before investing in crypto. Unfortunately, fraud is a common practice in the digital world and cryptocurrency projects are no different. There are several most frequent scams in crypto: fake websites and mobile apps, scamming letters on social media and emails, pyramid schemes, fake cryptocurrencies and others.

Furthermore, provided by the specifics of the market, the prices of cryptocurrencies are very sensitive to events taking place in the world and are therefore very unstable. When you become a crypto investor, you should form your own predictions about the events that influence the market and its further development, because crypto experts can also make mistakes.

To stay updated, you should check out these resources: CoinDesk, CoinTelegraph, TodayOnChain, CoinGecko, CryptoSlate, CoinMarketCap, Bitcointalk. With these resources, you will not only be able to learn more about cryptocurrency but also become a part of the community and take part in conversations with many crypto enthusiasts.

If you want to read more from us, you can follow our blog, where we frequently post on crypto-related subjects.It’s time to get started. Join us and start investing!

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Building your first crypto investment portfolio the easy way with Midas.Investments https://blog.midas.investments/building-your-first-crypto-investment-portfolio-the-easy-way-with-midas-investments/ https://blog.midas.investments/building-your-first-crypto-investment-portfolio-the-easy-way-with-midas-investments/#respond Fri, 26 Feb 2021 12:02:36 +0000 https://blog.midas.investments/?p=1364 Even if you’ve never invested in cryptocurrencies before, now is the time to start. The recent Bitcoin rally to $55k is just the beginning: many coins could grow by 100% in 2021. But how to create a profitable portfolio and minimize the risks? In this article, the analysts of the leading passive investment ecosystem Midas.Investments offer their advice.   Passive or active investing?  If you are beginning to invest in crypto in 2021, you have three basic choices:  1) Passive HODL HODLing means simply buying and holding crypto in a wallet, waiting for the price to grow. It’s the easiest method, but it’s actually not very passive at all: you have to keep tracking the market so that you don’t miss the moment to sell. Plus, you might have to wait many months to get your first profit. 2) Active investing: masternodes vs. DeFi protocols A masternode (MN) is a special blockchain node that ensures network stability and receives regular rewards (between 10% and 50% a year). They are considered one of the best crypto investments for beginners.  On the other hand, there is a very attractive DeFi sector which was all the rage in 2020. Here, investors can provide liquidity […]

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Even if you’ve never invested in cryptocurrencies before, now is the time to start. The recent Bitcoin rally to $55k is just the beginning: many coins could grow by 100% in 2021. But how to create a profitable portfolio and minimize the risks? In this article, the analysts of the leading passive investment ecosystem Midas.Investments offer their advice.  

Passive or active investing? 

If you are beginning to invest in crypto in 2021, you have three basic choices: 

1) Passive HODL

HODLing means simply buying and holding crypto in a wallet, waiting for the price to grow. It’s the easiest method, but it’s actually not very passive at all: you have to keep tracking the market so that you don’t miss the moment to sell. Plus, you might have to wait many months to get your first profit.

Stable Yield Automatic Portfolio

Stable YAP offers investors the opportunity to invest in a fully managed and automated investment portfolio that offers long-term growth potential as well as a weekly payout in BTC

Stable YAP offers investors the opportunity to invest in a fully managed and automated investment portfolio that offers long-term growth potential as well as a weekly payout in BTC.

2) Active investing: masternodes vs. DeFi protocols

A masternode (MN) is a special blockchain node that ensures network stability and receives regular rewards (between 10% and 50% a year). They are considered one of the best crypto investments for beginners. 

On the other hand, there is a very attractive DeFi sector which was all the rage in 2020. Here, investors can provide liquidity to decentralized protocols, DEXes for example, but it is far too complex and risky due to impermanent losses and thus is not recommended to inexperienced investors.

Most investors choose shared masternodes, since operating an MN yourself is expensive and technically demanding. One of the best-known MN investment platforms is Midas.Investments, where you can choose between dozens of MN coins yielding between 6% and 430% a year. You can invest any amount directly in BTC, and rewards are mostly paid daily.

3) Active trading

The most basic strategy is to buy when an asset is cheap and sell when it appreciates. The advantage is that you can make 20-30% on a single trade, but prepare to spend a lot of time – possibly all your free time. Plus, the risks are high: some say that 95% of beginner traders lose money.

4 best tips from Midas Investments managers

1) Don’t chase the cheapest coins/masternodes. Some MNs are priced between $100 and $1,000, while others are worth $5,000 and more. A balanced beginner portfolio should center around mid-range and high-range coins because they offer a better risk-reward ratio. For instance, the highly-successful Midas YAP product (see below) includes MNs priced between $2,000 and $25,000 and yields around 26% a year. 

2) Don’t dump everything into Bitcoin. Bitcoin will certainly grow further, so you should allocate a part of your portfolio to it. But there are many cheaper, high-potential coins that can appreciate more than Bitcoin in 2021 and yield a higher passive income while you hold them. Examples include Midas (24% APY), Energi (33%), and DIVI (25%).

3) Invest in a ready-made portfolio. If you are not sure how to allocate your funds, it’s better to pick a managed portfolio designed by a professional fund. For example, Midas Investments offers a product called Masternode YAP (Yield Automated Portfolio): a balanced portfolio of 8 coins that pays 16% APY. All the rewards are paid in BTC on a weekly basis. 

4) Try social trading – but be careful. Many newbie traders use social or copy trading, meaning that they automatically copy the orders opened by experienced traders. This is usually a paid service, and the idea is that you risk less by following a pro. The problem with this method is that you don’t know the pro trader’s strategy and you can’t judge their skills. If you lose money – which happens very often in copy trading – you won’t even learn anything.

A few final words

If you want to get the most out of the 2021 crypto rally, it’s better to act now. Head over to https://midas.investments/, register an account in one minute, choose your masternode coin – and enjoy daily rewards starting from tomorrow. When your coins appreciate, you can withdraw and instantly sell them on the built-in Midas Exchange. This will give you the best of active and passive crypto investments with minimal risks. For more information, read guide how to earn crypto interest.

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