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Hot wallets: A hot wallet is a crypto wallet that offers online storage that you can access from a computer, phone, or tablet. A hot wallet has a security risk because it’s stored on the internet and is more susceptible to cyber-attacks.
Whether or not cryptocurrency is a security is a bit of a gray area right now. To back up a little, generally, a “security” in finance is anything that represents a value and can be traded. Stocks are securities because they represent ownership in a public company. Bonds are securities because they represent a debt owed to the bondholder. And both of these securities can be traded on public markets.
First, you need a cryptocurrency wallet, which is a digital wallet similar to a digital bank account, allowing you to receive, send and store cryptocurrencies. There are various wallets to choose from:
Trading one cryptocurrency for another is known as converting crypto, and can often be done instantaneously and without fees. If you can predict where the price of a digital asset will go, you can make big profits this way. Say you’ve converted your Bitcoin into Ethereum — if Bitcoin drops or Ethereum rises, you can increase your BTC holdings without paying a cent.
Trading one cryptocurrency for another is known as converting crypto, and can often be done instantaneously and without fees. If you can predict where the price of a digital asset will go, you can make big profits this way. Say you’ve converted your Bitcoin into Ethereum — if Bitcoin drops or Ethereum rises, you can increase your BTC holdings without paying a cent.
Trading cryptocurrency is not unlike trading stocks in the traditional markets. The principles are similar albeit there are a few differences in execution. To start trading crypto, follow these steps:
A software wallet is digital storage solution that is almost always connected to the internet. They are also often called hot wallets, though these terms aren’t entirely interchangeable. Hot wallets are internet-connected and not all software wallets meet this criterion (though cold software wallets are rare). A non-custodial software wallet is a personal wallet that gives you full control over your crypto and is not tied to an exchange. These wallets are generally very convenient and easy to use, but their internet connectivity makes them more vulnerable to security threats like phishing, social engineering, malware, and hacking attempts. A few of the most popular hot wallets include MetaMask, Coinbase Wallet, Phantom, and Trust Wallet. Most of these popular options offer both browser or desktop versions as well as mobile apps.
A crypto swing trader will aim to take advantage of an incoming or ongoing trend. In crypto, this strategy is sometimes referred to as BTFD (“buying the f’n dip”). It means buying when the price is low and selling when the price is high. Extensive application of both FA and TA techniques is necessary when using this strategy.
First of all, a blockchain is irreversible, which means that once you broadcast a transaction, it’s impossible to take it back. If you want to change a block’s information, you must change the one, consisting of the previous piece. This rule theoretically makes the blockchain unable to get hacked.
Ethereum uses the same underlying technology as Bitcoin, but instead of strictly peer-to-peer payments, the cryptocurrency is used to pay for transactions on the Ethereum network. This network, built on the Ethereum blockchain, enables entire financial ecosystems to operate without a central authority. To visualize this, think insurance without the insurance company, or real estate titling without the title company.
First of all, a blockchain is irreversible, which means that once you broadcast a transaction, it’s impossible to take it back. If you want to change a block’s information, you must change the one, consisting of the previous piece. This rule theoretically makes the blockchain unable to get hacked.
Ethereum uses the same underlying technology as Bitcoin, but instead of strictly peer-to-peer payments, the cryptocurrency is used to pay for transactions on the Ethereum network. This network, built on the Ethereum blockchain, enables entire financial ecosystems to operate without a central authority. To visualize this, think insurance without the insurance company, or real estate titling without the title company.
