Category Archives: Altcoin
Any American bitcoin investors who were hoping to avoid paying taxes for their profits this year by trading them for altcoins are in for an unpleasant surprise. New regulations have been tailored specifically to make sure U.S. taxpayers cant use this method to avoid giving the IRS their cut.
Also Read: South Africa Wants to Track and Tax Bitcoin Trading
Until today a crafty tax attorney or accountant could have tried claiming that trading bitcoin for another cryptocurrency is not a taxable event, but U.S. authorities are now moving in fast to plug this loophole. The latest tax bill contains clarifications which make this a non-valid tax-minimizing strategy going forward.
The issue arises from the IRS categorizing bitcoin as property, which can be argued makes crypto to crypto tradeslike kind exchanges underSection 1031 of the Internal Revenue Code. The new tax bill defines like kind exchanges to pertain only to real estate deals. To make things as clear as possible, this means that if you trade bitcoin for tether (USDT) for example, that is a taxable event.
Some people think, Im taking my bitcoin, which the IRS has deemed to be property, swapping it for another property and doing it for investment reasons, so it sounds like it could be a 1031 exchange, Evan Fox, tax manager at New York accounting firm Berdon, told CNBC. I think its a stretch.
According to the current tax framework, Americans need to self report their bitcoin trading profits and calculate their dues according to their tax brackets. Selling after holding the asset for less than a year qualifies as a short term investment and is taxed between 10% to 39.6%. Selling bitcoin after holding for over a year is qualified as a long-term investment and taxed up to 20%. Conveniently, if you traded over $20,000 with Coinbase the IRS already has your records.
If you put money into the cryptocurrency space, and you decide to buy (an altcoin), and you one day monetize it and show up with a $2 million house, the IRS is not stupid, Fox said. Money doesnt just appear out of nowhere.
The IRS can also decide to audit someones tax going up to three years back and is known to use the services of Chainalysis, a blockchain analysis specialist, to hunt down bitcoin users for evading taxes.
If a few years from now the IRS is able to decode what happened, and you made a significant amount of money in 2017 and didnt report it, youll face interest and penalties that have been accruing, Fox explained. It might be a risk some people want to take, but there are some bad consequences if you get caught.
Could tax authorities crack down on altcoin exchanges to make sure investors arent hiding bitcoin gains? Share your thoughts in the comments section below!
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Trading Bitcoin for an Altcoin Won’t Shield You From the IRS …
Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.Litecoin is the biggest Altcoin
Even if they do not accurately understand how it works, most people are at least somewhat familiar with Bitcoin. However, once they begin to get involved with cryptocurrency, they may be surprised to learn that there are actually hundreds of types of cryptocurrencies known as altcoins. Altcoins are anintriguingfacet of the cryptocurrency landscape, but they are not foreveryone. Altcoin newcomers often have many questions, and this guide will provide a brief overview of altcoins to help beginners decide whether or not to invest in them as part of their cryptocurrency portfolio.
The word altcoin is an abbreviation of Bitcoin alternative, and thus describes every single cryptocurrency except for Bitcoin. Altcoins are referred to as Bitcoin alternatives because, at least to some extent, most altcoins hope to either replace or improve upon at least one Bitcoin component.
There are hundreds of altcoins (CoinMarketCap listed 478 at the time this guide was written), and more appear each day. Mostaltcoins are little more than Bitcoin clones, changing only minor characteristics such as its transactions speed, distribution method, or hashing algorithm. Most of these coins do not survive for very long. One exception is Litecoin, which was one of the first altcoins.In addition to using a different hashing algorithm than Bitcoin, Litecoin has a much higher number of currency units. For this reason, Litecoin has branded itself as silver to Bitcoins gold.
However, some altcoins innovate by experimenting with useful features Bitcoin does not offer. For example, Darkcoin hopes to provide a platform for completely anonymous transactions, BitShares describes itself as a fair version of Wall Street, and Ripple serves as a protocol users can employ to make inter-currency payments with ease. Some altcoin ecosystems, such as CounterParty and Mastercoin, even utilize the Bitcoin blockchain to secure their platform.
Many Bitcoin enthusiasts argue that altcoins are completely unnecessary and will not succeed because they cannot rival the infrastructure Bitcoin boasts. However, altcoins serve an important role. Decentralization is one of Bitcoins most prominent goals, and altcoins further decentralize the cryptocurrency community. Moreover, altcoins allow developers to experiment with unique features. While it is true that Bitcoin can copy these features if the developers or community desires, fully-functioning altcoins are much better cryptocurrency laboratories than Bitcoins testnet. Finally, Altcoins give Bitcoin healthy competition. Altcoins give cryptocurrency users alternative options and forces Bitcoins developers to remain active and continue innovating. If users do not feel that Bitcoin satisfies their digital desires, they can adopt an altcoin. If enough users left Bitcoin for a particular altcoin, the Bitcoin developers would have to adopt the features the community desired or risk losing its place as the preeminent cryptocurrency.
Created in April 2011, Namecoin was the first altcoin. Although it also functions as a currency, Namecoins primary purpose is to decentralize domain-name registration, which makes internet censorship much more difficult. As its place among the top ten cryptocurrency market caps suggests, Namecoin has remained one of the most successful altcoins throughout its short lifespan.
Due to how recent cryptocurrency was invented and how rapidly the landscape changes, all cryptocurrency investments carry a great deal of risk. Even Bitcoinby far the most stable cryptocurrencyexhibits price volatility on a regular basis.
By comparison, however, altcoins are exponentially more volatile. Because they have such low market caps (the total value of all coins combined), altcoin markets are highly prone to price manipulation. Wealthy traderscolloquially called whalesoften inject large amounts of capital into low-priced coins to build hype and cause the price to skyrocket. Once the price has risen considerably, the whales sell their coins on exchanges at a massive profit, hurting many gullible investors in the process. This method is known as a pump and dump. Not only does this hurt greedy traders who did not take the time to do their homework, but it often proves to be the breath of an altcoins brief lifespan.
To avoid losing all your money in a pump and dump, focus on long-term investments in coins you believe have immense potential and exhibit overall health. Generally, healthy altcoins possess strong communities, exhibit high liquidity, and have developers who proactively improve the coins source code (though not necessary, many users also prefer developers who reveal their true identities).CoinGeckos comprehensive coin metric analysis algorithm statistically analyzes these three important factors and ranks coins according to overall strength.
If you do choose to invest in altcoins, it is important to remember somebasic tenets of investing. Avoid the hype that coin communities propagate. Investors have an agenda, so you should not take their word at face value. Only invest in coins you have researched. It is unwiseto invest in something you do not understand. Making an ill-informed investment is the first step to losing your hard-earned money. Take the time to research the coins you are considering for long-term investments, and research day-trading before you attempt to become a high-volume, short-term trader. Most importantly, never invest more than you can afford to lose. Far too many people have lost their life savings by centralizing them in volatile investments.
As with Bitcoin, there are a variety of ways to obtain altcoins. The most basic way to obtain altcoins is to accept them as payment for goods or services. If you are interested in doing this, place an ad showcasing your skill-set ona cryptocurrency job board.
You can also trade for altcoins on cryptocurrency exchanges. Most exchange use Bitcoin as an intermediary (although a few include fiat pairs), so if you do not already own bitcoins you will need to buy some before you can trade for altcoins. Some of the most-trafficked exchanges include BTER,Bittrex, MintPal,Cryptsy, and BTC38 (Chinese-only).
Many altcoin communities also sponsor giveaways to increase exposure of their coin and enticenew users to join their communities. This is a great way to acquire coins if you are low on fundsor do not have marketable skills.
Featured images from Shutterstock.
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What is an Altcoin? – ccn.com
Zecoex, as with some other exchanges, started with the promoters getting besotted with bitcoins and wanting to buy some. But we had no idea what bitcoin was and how it worked. We could never place reliance on any other exchange with so many horror stories, so we decided to buy our first bitcoin and start building our own technical expertise on blockchain, and transactions.
We read and read and read, and came to the conclusion that our dear world wide web confused us more, read more… and clarified so little. Our inquisite minds then went on to download various cores, and explore transactions on the core. We hired some developers and ask them to play around with our bitcoin (yes, one split into as many fractions as permissible in satoshis after paying the network fees). All of us read together under the lamp with some article from the net in our hand. And then we started experimenting.
It did work for us. We not only understood how the blockchain worked and behaved, how to transact with wallets and open source codes, how to transact directly with the cores, how to arrive at fool proof methods of keeping our coins secure and transacting with them.
This entire expertise is at your disposal.
We will shortly launch our own hardware wallets, and start a development thread. We are hoping to catch hold of some clients to pay us mega bucks for building some custom solution for them on blockchain. But till the time we get there, feel free to interact with our engineers who are eager to pass on this knowledge, and help you resolve your technical queries, whether they are complex, or straight forward.
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Buy or Sell Bitcoin, Litecoin, Altcoin Multi Crypto Currency …
On October 7, 2017, the decentralized cryptocurrency trading platform Altcoin Exchange announced the team performed the first atomic swap between the Ethereum and Bitcoin blockchains. The exchange says this is the startups first step towards creating a trustless exchange process.
Also Read: Bitcoin Illegal in Nepal? Police Arrest Seven Individuals for Trading Operations
In the cryptocurrency space, atomic swaps are a pretty hot topic, and there are only a few blockchains that have exchanged this way. Atomic swaps allow two parties to transact between two blockchains in a trustless manner without counterparty risk. So far only a few altcoins have performed this function with bitcoin; including currencies like litecoin, decred, and vertcoin. On October 7th the Altcoin Exchange development team processed a swap between both bitcoin and ethereum networks.
We have completed the very first Ethereum Bitcoin atomic swap! More details coming soon, the Altcoin Exchange team announced this week.
The Altcoin Exchange team transferred 0.12345 ETH for 0.12345 BTC using an on-chain open source process. Altcoin Exchange plans to launch the projects Github repository this Tuesday, the companys CEO Andrew Gazdecki told news.Bitcoin.com.
Gazdecki tells us that decentralized exchanges are the future of cryptocurrency trading and atomic swaps will be a big part of the business model. Altcoin Exchange believes the teams demonstration of an atomic swap between ethereum and bitcoin means the centralized trading model is soon to be a memory of the past. Gazdecki explains that atomic swaps will replace traditional exchange transactions with a more secure method and just as speedy.
The team at Altcoin Exchange says they still has some work to do with the code as far as privacy and order matching comes. The group says they are also thankful for the decred development team and Litecoins Charlie Lee for help pioneering the atomic swap effort.
Since June of 2011, 26 exchanges have been compromised, resulting in the loss of millions of dollars worth of coins. To prevent more of these types of hacks, decentralized exchanges are needed, and atomic swaps bring us one step closer to achieving this goal, Gazdecki explains to news.Bitcoin.com.
What makes the technology behind Atomic Swaps so exciting is it allows for nearly instant direct trades between cryptocurrencies. We believe this to be a critical component for creating a truly decentralized exchange that executes transactions at the same speed in which centralized exchanges are able to but without the risk of hacking and theft.
The atomic swaps performed by Altcoin Exchange between the bitcoin and ethereum blockchains can be viewed here with the swap initiation, the participation, and redeem A and redeem B.
What do you think about the first atomic swap between bitcoin and ethereum? Let us know in the comments below.
Images via Shutterstock, the Altcoin Exchange, and Pixabay.
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A modern Altcoin Core REST and RPC client to execute administrative tasks, wallet operations and queries about network and the blockchain.
Install the package via npm:
The network will automatically determine the port to connect to, just like the bitcoind and bitcoin-cli commands.
By default, when ssl is enabled, strict checking is implicitly enabled.
For compatibility with other Altcoin Core clients.
Since version v0.14.0, it is possible to send commands via the JSON-RPC interface using named parameters instead of positional ones. This comes with the advantage of making the order of arguments irrelevant. It also helps improving the readability of certain function calls when leaving out arguments for their default value.
For instance, take the getBalance() call written using positional arguments:
It is functionally equivalent to using the named arguments account and minconf, leaving out include_watchonly (defaults to false):
This feature is available to all JSON-RPC methods that accept arguments.
By default, all methods are exposed on the client independently of the version it is connecting to. This is the most flexible option as defining methods for unavailable RPC calls does not cause any harm and the library is capable of handling a Method not found response error correctly.
However, if you prefer to be on the safe side, you can enable strict version checking. This will validate all method calls before executing the actual RPC request:
If you want to enable strict version checking for the bleeding edge version, you may set a very high version number to exclude recently deprecated calls:
To avoid potential issues with prototype references, all methods are still enumerable on the library client prototype.
Start the bitcoind with the RPC server enabled and optionally configure a username and password:
These configuration values may also be set on the bitcoin.conf file of your platform installation.
By default, port 8332 is used to listen for requests in mainnet mode, or 18332 in testnet or regtest modes. Use the network property to initialize the client on the desired mode and automatically set the respective default port. You can optionally set a custom port of your choice too.
The RPC services binds to the localhost loopback network interface, so use rpcbind to change where to bind to and rpcallowip to whitelist source IP access.
All RPC methods are exposed on the client interface as a camelcase’d version of those available on bitcoind.
For a more complete reference about which methods are available, check the RPC documentation on the Altcoin Core Developer Reference website.
Batched requests are support by passing an array to the command method with a method and optionally, parameters. The return value will be an array with all the responses.
Note that batched requests will only throw an error if the batch request itself cannot be processed. However, each individual response may contain an error akin to an individual request.
Support for the REST interface is still experimental and the API is still subject to change. These endpoints are also unauthenticated so there are certain risks which you should be aware, specifically of leaking sensitive data of the node if not correctly protected.
Error handling is still fragile so avoid passing user input.
Start the bitcoind with the REST server enabled:
These configuration values may also be set on the bitcoin.conf file of your platform installation. Use txindex=1 if you’d like to enable full transaction query support (note: this will take a considerable amount of time on the first run).
Given a block hash, returns a block, in binary, hex-encoded binary or JSON formats.
Given a block hash, returns amount of block headers in upward direction.
Returns various state info regarding block chain processing.
Returns transactions in the transaction memory pool.
Returns various information about the transaction memory pool. Only supports JSON as output format.
Given a transaction hash, returns a transaction in binary, hex-encoded binary, or JSON formats.
Query unspent transaction outputs (UTXO) for a given set of outpoints. See BIP64 for input and output serialisation.
This client supports SSL out of the box. Simply pass the SSL public certificate to the client and optionally disable strict SSL checking which will bypass SSL validation (the connection is still encrypted but the server it is connecting to may not be trusted). This is, of course, discouraged unless for testing purposes when using something like self-signed certificates.
Please note that the following procedure should only be used for testing purposes.
Generate an self-signed certificate together with an unprotected private key:
On Altcoin Core
On Altcoin Core >0.12, use must use stunnel (brew install stunnel or sudo apt-get install stunnel4) or an HTTPS reverse proxy to configure SSL since the built-in support for SSL has been removed. The trade off with stunnel is performance and simplicity versus features, as it lacks more powerful capacities such as Basic Authentication and caching which are standard in reverse proxies.
You can use stunnel by configuring stunnel.conf with the following service requirements:
The key option may be omitted if you concatenating your private and public certificates into a single stunnel.pem file.
On some versions of stunnel it is also possible to start a service using command line arguments. The equivalent would be:
Then pass the public certificate to the client:
By default, all requests made with altcoin-rpc are logged using uphold/debugnyan with altcoin-rpc as the logging namespace.
Please note that all sensitive data is obfuscated before calling the logger.
Example output defining the environment variable DEBUG=altcoin-rpc:
A custom logger can be passed via the logger option and it should implement bunyan’s log levels.
Currently the test suite is tailored for Docker (including docker-compose) due to the multitude of different bitcoind configurations that are required in order to get the test suite passing.
To test using a local installation of node.js but with dependencies (e.g. bitcoind) running inside Docker:
To test using Docker exclusively (similarly to what is done in Travis CI):
Category: Altcoins, Bitcoin, News, Regulation
The Philippines Securities and Exchange Commission (PhSEC) and the Bangko Sentral ng Pilipinas (BSP) have been conducting conversations which may lead to the legalization of cryptocurrencies. Following similar moves towards legislation and regulation in the US, Malaysia, Hong Kong, and Thailand, the Philippines is now seeking to declare cryptocurrencies as securities and put them under the supervision of the PhSEC.
Category: Altcoins, Bitcoin, Mining, News
For many years now, Bitcoin mining has been dominated by the Application-specific Integrated Chip (ASIC), and long gone are the days of mining Bitcoin for profit with a central processing unit (CPU), a graphics processing unit (GPU), or even a field-programmable gate array (FPGA). However, thanks to increasingly popular altcoins such as Ethereum (ETH), Zcash (ZEC) and the recently forked
Category: Altcoins, News, Tech
At the time of publication, the following warning appears on bitcoingold.org welcome page: According to the associated Critical Warning description, Bitcoin Golds (BTG) official GitHub repository served unsigned wallet software for almost five days: Anyone who downloaded the Windows Wallet file between November 21, 2017, 09:39 UTC, and November 25, 2017, 22:30 UTC, should not use the file in any
Category: Altcoins, Bitcoin, News, Regulation
President Alexander Lukashenko is expected to sign a decree which will legalize bitcoin and other cryptocurrencies in Belarus. Once this new law is passed, citizens of Belarus will be able to circulate and mine cryptocurrencies, as well as engage with ICO (initial coin offering) tokens. As large bitcoin and altcoin mining companies are on the horizon; many investors are planning
Category: Altcoins, Bitcoin, Finance, News
BillDesk, one of Indias largest payment gateways, announced the release of their own cryptocurrency exchange on November 24, named Coinome. Touted as the countrys first open order book exchange, BillDesk aims to combine its expertise in online payments with the digital currency market. At the time of its release, Coinome will only support bitcoin and bitcoin cash trading. BillDesk is
Category: Altcoins, Bitcoin, Commentary, News
Alexander Abramov, Roman Abramovich, Roman Trotsenko, and Igor Rybakov are among the many Russian billionaires who are jumping on the crypto-train, prior to the upcoming introduction of the first state-backed cryptocurrency, the CryptoRuble. This should not come as a surprise. To date, Russia has consistently taken a rather hardline on cryptocurrencies and Bitcoin in particular: 2015 Russian authorities impose
Category: Altcoins, News
Ripple, the blockchain focused company, has announced the addition of Benjamin Lawsky to its Board of Directors and the appointment of Ron Will as the companys Chief Financial Officer (CFO). So far, Ripples popularity has been mainly due to their payment protocol, which is essentially a real-time gross settlement (RTGS) system that leverages blockchain technology and is based around an
Category: Altcoins, Bitcoin, Blockchain, News
2017 may go down as the year of the eight times return bitcoin has delivered, but it will also likely be remembered as the year of the hard fork. First, we had Bitcoin Cash, then Bitcoin Gold, and even Bitcoin Clashic but the forks are not quite finished yet. Say hello to Bitcoin Diamond. Bitcoin Fork #4 Bitcoin Diamond
Category: Altcoins, Mining, News
November 20 witnessed the release of a new miner allows you to mine both aeon and monero (XMR), two altcoins based on the Cryptonote protocol. The XMR-Stak 2.0.0 update makes it easier for users to become accustomed to the two privacy-focused altcoins and kill two birds with one stone. The combined AEON-XMR miner is the fruit of fireice_uk and psychocrypts
Category: Altcoins, Bitcoin, Mining, News
The Russian government is considering Siberia and other Far East regions to lure large-scale cryptocurrency mining companies. With time, the country hopes to base an entire town or city around this economic model. Cryptocurrency mining is the process that involves performing trillions of calculations per second using a relatively powerful computer. In exchange for these calculations, miners receive a reward
Altcoins – BTCMANAGER
With bitcoin currently consolidating above $8000 USD after establishing an all-time high of nearly $8400 USD, some liquidity has shifted towards the altcoin markets. This has resulted in several major altcoins setting record dollar-value highs despite holding relatively modest prices when paired with bitcoin. Today, Ethereum set a new all-time high of approximately $420 USD, with prices surpassing $400 USD. Dash and Monero also set a new all-time high today, with Dash testing $600 USD for the first time before retracing to approximately $570 USD, and XMR currently trading for approximately $170 USD.
Also Read:Bitcoin Skeptics Just Too Old to Get Digital World, Says Hedge Fund Mogul Novogratz
As of this writing, the price of a single bitcoin is approximately $8130 USD, following the establishment of a new all-time high of roughly $8380 USD earlier this week. The total market capitalization of bitcoin is over $136 billion USD, with 24-hour trading volume exceeding $4 billion USD.
Bitcoin experienced a dramatic November, with the markets falling by roughly 28% after setting the preceding high of $7890 USD at the beginning of the month. The dip comprised the largest red weekly candle in bitcoins history. However, after making a low of approximately $5450 USD, bitcoin quickly recovered to break above $8000 USD and produce its largest ever green weekly candle.
With Bitcoins price movements calming in recent days, some liquidity has shifted into the altcoin markets triggering the establishment of new all-time dollar highs in several major markets. Bitcoins market dominance is currently 53.1% down approximately 5% from one week ago.
Ethereum gained approximately 13% to establish a new record dollar high today. The total market cap of Ethereum now exceeds $40 billion USD, with ETH currently trading at approximately $420 USD up more than 30% since the start of the month. Earlier this week, Ethereum published the initial version of its Casperprotocol update, which was first presented at Devcon3 earlier this month.
Dash set a new record high today, currently trading at roughly $570 USD after testing $600 for the first time. Dash has rallied since breaking its preceding all-time high of approximately $400 USD on the 12th of November, after the release of Dash Core version 12.2 four days prior. Dash now has the fifth largest market capitalization with nearly $4.4 billion USD.
Monero also established a new all-time high today, with XMR currently trading at nearly $170. Monero is currently the 7th largest crypto market with a total capitalization of over $2.5 billion.
Bitcoin Cash made gains of over 20% today, with BCH currently trading for $1550. The move comes after several days of consolidation between approximately $900 $1300, which followed a more than 60% retrace from BCHs all-time high of nearly $3000 USD earlier this month. Bitcoin Cash currently boasts the third largest cryptocurrency total capitalization with $26.5 billion USD.
Dogecoin was among the top performing markets today, gaining approximately 40% to trade at over $0.0021 USD. As of this writing, Dogecoins total market capitalization is $235 million USD.
Zcash performed well during November and is currently trading at approximately $320 after increasing by over 50% this month. Grayscale Investments announced the launch of its Zcash Investment Trust towards the start of November which, following Edward Snowdens recent praise of Zcash, has likely contributed to the bullish sentiment. Zcash is 15th largest cryptocurrency market with a total capitalization of almost $880,000. Litecoin also performed well this month, gaining by approximately 25% to trade at around $75 USD. Litecoins $4.1 billion USD market cap makes it the 6th largest cryptocurrency by total capitalization.
Despite several major cryptocurrencies establishing new record highs against the dollar, the majority of altcoins have experienced sustained downtrends since midway through 2017 when paired against bitcoin. Although many altcoin/bitcoin markets have seen significant price increases in recent days, whether or not the altcoin markets can sustain dollar gains independent of a rising bitcoin remains to be seen, with some analysts speculating that the recent Tether hack may have contributed to the recent rise in altcoin prices, arguing that traders may have been purchasing cryptocurrencies to reduce USDT exposure.
Do you think the altcoin markets are heating up for another boom, or will the current momentum quickly fizzle out? Share your thoughts in the comments section below!
Images courtesy of Shutterstock, Tradingview, Coinmarketcap
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Markets Update: Bitcoin Bull-Run Primes Altcoin Markets for …
SAN DIEGO, Oct. 15, 2017 /PRNewswire/ — Altcoin Exchange, the decentralized cryptocurrency exchange, is changing its name to Altcoin.io. This marks the beginning of a new era of altcoin trading that promises the cryptocurrency community complete security of their coins and a safer way to trade.
Altcoin.io wants to empower everyone, regardless of market knowledge, to trade altcoins securely and with confidence. This currently isn’t possible with centralized exchanges. They’re vulnerable to theft, and require you to relinquish control of your coins in order to trade.
Since June 2011, there have been 26 known centralized exchange hacks involving the loss of nearly $1,000,000,000 in user funds. Until now, the market has failed to respond with a robust solution, and Altcoin.io’s goal is to solve this problem.
Altcoin.io aims to be the first decentralized exchange with an unparalleled focus on user experience, security, customer support, and design. By collaborating with the trading community, Altcoin.io will create a safe, trustless platform that enables users to make fast trades without worrying if they’re exposing themselves to risk.
Andrew Gazdecki, CEO and founder of Altcoin.io, says, “Our new name is about setting the standard for how we move forward. With this company rebranding, we make it clear our goal is going beyond what already exists to make something bettera decentralized altcoin exchange where you can trade anonymously, securely, and stay in complete control of your funds.”
By eschewing the centralized model, Altcoin.io lets traders retain full control of their coins so they can exchange with confidence. There’s no single point of failure, no central repository for hackers to exploit, and full transparency in every transaction.
“The centralized exchange model is broken,” says Andrew. “As altcoins continue their meteoric rise in popularity, it’s more important than ever to establish a secure and trustless exchange but with the trading community involved. Altcoin.io is being built by traders, for traders.”
Last week, Altcoin.io completed the world’s =”https://medium.com/@altcoinexchnge/the-first-ethereum-bitcoin-atomic-swap-79befb8373a8″ rel=”nofollow” target=”_blank”>first Atomic Swap between the Ethereum and Bitcoin blockchains. Building on Decred’s successful swap of Decred for Litecoin, Altcoin.io transferred 0.1245 Ethereum to 0.12345 Bitcoinswithout first passing ownership to a third party. Atomic Swaps are the key to creating secure decentralized trades that transact as quickly as centralized ones, and this milestone puts Altcoin.io on track for a community release in early 2018.
News of the swap has buoyed Altcoin.io’s growing community and was enthusiastically covered by Bitcoin.com, CoinDesk, The Merkle, Cryptovestand others. While there are still some kinks to iron outsuch as privacy, options, and order matchingAltcoin.io is confident this is just the beginning of better things in the cryptocurrency community: Altcoin.io hopes to shake up this dynamic market by giving traders what they’ve always wanteda safe way to exchange and trade digital assets.
image1.png Altcoin.io Logo
image2.png Altcoin.io Decentralized Exchange
=”https://medium.com/@altcoinexchnge/altcoin-exchanges-purpose-mission-values-and-value-proposition-7d525303c005″ rel=”nofollow” target=”_blank”>Altcoin Exchange’s purpose, mission, values and value proposition.
=”https://medium.com/@altcoinexchnge/for-cryptocurrency-trading-to-flourish-we-need-a-truly-decentralized-exchange-6f2401e20323″ rel=”nofollow” target=”_blank”>For Cryptocurrency Trading To Flourish, We Need A Truly Decentralized Exchange.
View original content with multimedia:http://www.prnewswire.com/news-releases/altcoin-exchange-the-decentralized-cryptocurrency-exchange-rebrands-to-altcoinio-300536914.html
Beside Bitcoin, there are more than 3000 cryptocurrencies existing currently. To give you an easy overview, we got our Altcoin Watchlist (Alternative Cryptocurrencies so all but Bitcoin). We monitor and support the currencies listed. So in our view these currencies have to biggest longterm potencial of them all but as there are so many of them, theres no garantuee this list is complete. Please note that we are NOT an investment information source if you are loocking for a safe or insanly fast investment opportunity, theirs lots of other sources. We focus on the economic and social value of a currency, not its ROI for investors.
The criterias for currencies beeing on our Watchlist are (subject to change) :* Sourcecode for Node must be Opensource* No unreasonable Premine or concentration of Coins from the beginning / for founders (richlist)* CPU/GPU friendly algos that are ASIC-resistant as good as possible and force decentralization.* Innovative Technology that differs it from bitcoin* Does not have to be a currency, but has to have a defined purpose (e.G ETH or DCR)
How to perform your own due-diligencebefore investing in CryptoCurrencies?
One key lesson from Jim Rogers on investing is to do your own thinking. This article will help you understand cryptocurrencies. If you are an altcoin investor (An Altcoin is a cryptocurrency which is not Bitcoin), fundamental analysis will help you choose the ones with long-term potential.
All investments have pros and cons. A Cryptocurrency investor needs to look for the cons first, as some are definite deal breakers. If they exist, it is not worth investing more time in researching the crypto-currency.
Finding the right information about Crypto-Currencies is challenging because:
What are the core reasons to invest in an Altcoin?
The fundamental reason for a cryptocurrency such as Bitcoin or an Altcoin to exist is to serve its users, the only reason why users will engage with an altcoin is, if it is solving a problem they have. Some Altcoins promise to solve problems we did not know we had, for example, LBRY is creating a pay-to-view content system, while others such as Crown Coin, Dash and deCRED are variants of Bitcoin. They are solving the same key problemin different ways. An investor needs to predict who will be the best at it.
Others like EDC and iEx.ec are bringing blockchain or decentralisation to problems which have been addressed by centralised solutions. For an Altcoin to have the wind blowing in its sails, it needs to get the very basic core mission both right the functionally, the context and the timing right.
Branding, Marketing and Visibility:
If they do not know about you, you do not exist.
Marketing is everything. Without knowing about a solution, how can that solution be applied to a users problems? Marketing is about informing the market of the solution.
Branding is about the trust between the Cryptocurrency and its potential investors first; actual users usually will come in later. A hyperinflation ultimately occurs because the users of a currency lose trust in it, but the inverse is also true. Hyper re-valuations (Manias?) occur when many new investors want to buy in the belief that the actual users will come in later.
Re-branding is not an uncommon thing in the crypto space, as an altcoin goes through periods of maturation so does its brand image. Frequent re-brandings are a sign of frequent changes of strategy (or trying to hide something). Frequentand recent re-brands throughout an Altcoins life are not a good indication of future strategic decisions.
Positive mentions in crypto-media outlets such as Cointelegraph.com, CryptoCoinsNews.com and Altcoin Reviews all add credibility to Altcoin when discussed in positive terms.
More street cred is accumulated when the media mentions are outside of the crypto universe. Editorials and articles in Forbes, Bloomberg, Nasdaq add more authority and credibility to an Altcoin. Coverage in general newspapers and news media are indicators of mainstream interest.
Altcoin Social ProofHow many other investors/users believe in the project?
This is one of the most important metrics to evaluate a cryptocurrency as it is the results of all the other metrics combined.
Coin market cap or the total value of a crypto-coin is also a form of social proof. The total value of a coin is the result of investors voting with their wallets for the coin or against.
Cryptocurrency developers and spoke persons, give a face to the project, they consolidate information and can be the champions and evangelists. Spreading the idea and solution to the masses. Any U-turn by these coin champions can have serious adverse effects on the coins value. These spokespeople become key influencers because naive investors delegate their thinking to them.
When high profile coin spokespersons jump from one bandwagon to other many investors could follow and the results could be cataclysmic.
Altcoin development team and technology
The core value of any project is the functionality of the coin. (and how many people know about it and trust it)
Bitcoin has proven itself over and over again, although many have sung to its obituary. Most Altcoins have either modified the Bitcoins block chain code or created an entirely new blockchain tech.
New technologies bring new risks. For example, the now famous DAO hack was the product of a bug in a new smart contract technology. Such breakages in the technology can have different impacts. The DAO was destroyed, but in other instances, it serves as a resilience exercise.
In general when something in the cryptocurrency ecosystem breaks down it does not help the cryptocurrency investor as mainstream adoption is postponed with each of these negative events.
Price, Market and Exchanges
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Altcoin pumping and dumping:
Altcoins usually have a core following which are true believers in the project. These believers are a mix of the founders, developers and those with a vested interested in seeing this coin flourish either ideologically, or for monetary reasons. These groups will promote the pros and try to find solutions to the cons.
There will be other groups who market more the disadvantages of a specific coin over the advantages. This group will be made up of believers in the competing coins and those who missed out on the ICO or buying the coin at lower prices.
Some pumps are focused around a certain new feature being released others can be more structural such as regulation changes, a breakdown or an increase in the competition.
Trying to follow the pumps and dumps is the job of the market makers and the day traders. Other investors choose, not to roll with that roller coaster and focus on the long term fundamentals of the cryptos.
Malicious market makers, pump and dump coins while they skim money from both the greedy investor and the fearful investor. The pumps take placethrough a hype, promises and fear of losing out.
Some pumps are phenomenal for example between Jan and Feb 2017 Dash doubled in price. Such a rise in price needs to be sustained to be of any value to the buy and hold crypto investor. If the prices go up and then comes crashing down, investor confidence erodes each time this takes place.
Can the price of a crypto-currency be manipulated easily by external agents intent on causing harm? This question is more important in the future than today, when investors will be able to invest in cryptocurrency ETFs. When these are approved by the SEC, these ETFs can be used to do naked short selling. This system allows speculators to bet on the downside of a coin, this is done without owning any of the actual coins hence the term naked.
The economics of an altcoin, determine the supply side of the coin. Coin founders amount to the FED of that specific coin, their behaviour needs to be scrutinised as much as that of any central banker!
Within the history of an altcoin, investors can potentially find the virtues, tantrums and the seeds of greatness or otherwise. To go into an Altcoins history,investors need to define what is an Altcoin first.
To me, an Altcoin encompasses the mindset of the founders, the whitepaper, the connection and interaction between the market and the Altcoin developers.
Some Altcoins are scam coins by design, others have good intentions but are implemented badly or too weakly, or the competition is too overwhelming. The past is no guarantee of the future, but the futures foundations are laid down in the past.
Crypto-Currency Regulation challenges
Regulators have the power to destroy the viability of a cryptocurrency overnight, at least within their own borders. Indeed cryptocurrencies are somewhat resilient to such an attack because of their decentralised design. However, the owners of such cryptocurrencies are not. Probably 99% of cryptocurrency holders are good, law abiding citizens.
If a cryptocurrency is declared, investors holding it will probably dump it. The risk to themselves and families will be too high and impossible to mitigate. There are some variables which increase the power of the regulators and the likelihood of being targeted, for example:
Does an altcoin:
Regulation can also ake an altcoin stronger:
Regulators of particular jurisdictions which maintain the status quo or openly accept BlockChain technology push cryptocurrencies more in the mainstream.
Private forms of public blockchain oversight such as companies which monitor blockchains for illicit activities help regulators and discourage illegal use of cryptos. Others firms rank ICOs (Wings.ai, IcoRating ) and this helps private investors make informed decisions.
Another school of thought considers that all forms of impediments thrown at a cryptocurrency only serve to make it stronger. Cryptocurrencies will evolve and change shape to either outsmart, evade or adopt to regulators. Regulations will act like natural forces which will take the weak out and make the stronger more resilient to outside influences.
Regulators have issues with anonymity, and not privacy, blockchains by default provide privacy, and some cryptos build layers of anonymity on top, this is where regulators are most likely to clash with altcoins. If Altcoins are the new Panama, Governments will do everything in their power to stop their use as illegal tax avoidance vehicles.
Scam Warnings from regulators and rating agencies.
Some governments have issued notices concerning particular cryptocurrencies; this is a sign for investors that such coins need closer scrutiny especially when such announcements target a specific Altcoin rather than the who crypto space.
Investors should take a much deeper look at this altcoin, both because of the regulatory threat itself and the possibility that the altcoin is an outright scam or has MLM (multi-level marketing) or scam like tactics/mechanics.
Centralised / Decentralised Network and Governance
Centralised / Decentralised are attributes not adjectives. Some attribute centralised, to bad and decentralised to good. Given the spirit of liberty and autonomy in the crypto space, this is a common misconception.
These two attributes have both their pros and cons.
Centralization brings the perils of cult figures and centralised points of attack, but they also bring the benefits of better coordination, deployment of resources and central points of contact for support and media.
Centralisation of development could be a threat to currency. For Example, Monero an anonymous crypto-currency has a public spokesperson. In a recent podcast, he statedthat he was worried at times being too much in the limelight. If someone wants to lash out at a certain crypto, the people who are the face of that crypto make prime targets.
deCRED has a decentralised development structure, and this gives it strength regarding towards expanding its functionality, but it is more challenging to integrate code coming from different developers.
Most of Crown Coins developers are anonymous; this gives potential entities who would like to disturb the coin network much less of a clear target. However, it also brings a question mark about the reputation and expertise of the devs. Having said that, they are very accessible through their slack channel.
Centralised / Decentralised Infrastructure.
A lot of Bitcoin mining power is located in China. Miners swarm around cheap sources of electricity. These mining clusters can create weak links in the blockchain as it opens the hashing power up to attack. Especially within jurisdictions vulnerable to state interference and failures of infrastructure points.
Other points of failure include service nodes, master nodes, super nodes, exchanges and other critical infrastructure points which maintain the coins value and the ability of users to exchange the coin or use it.
The Future of Bitcoin or the Altcoin
Investing in cryptocurrency can be done by following the momentum and technical analysis of charts. Does this work? Different people have different levels of success with such strategies, the fundamentals approach to investing has worked for Warren Buffet andthere is no reason why it should not work in for cryptocurrency investors. In addition to fundamental analysis dollar cost averaging is alsoan important investing strategy. Buy low and Sell High!
Tips: Sponsor my addiction to tea and biscuits!
Any comments and help to improve this document would be grealty apprciated.
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