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Top 4 Reasons Why You Should Diversify Your Cryptocurrency Portfolio

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While most MyBitcoin.com visitors might be bitcoin loyalists and even maximalists at heart, bitcoin isn't the only cryptocurrency in town and is very evident right out of the start of the new year. On January 1, 2018 the entire cryptocurrency market cap was right at $600B dollars in value. Within the first seven days by January 8th we saw it as high as $830B before slowing down and eventually dropping off as exchanges and countries were consolidated.

But during this massive right it was not bitcoin getting the attention and capturing the awareness of teh public, it was alternative coins as BTC saw as low as 32% market share which is in the all time lows in its 9 year history.

So, you’re ready to take a big step into the world of cryptocurrency investing, huh? Chances are that you have already purchased a sum of the big name in digital currencies, Bitcoin.

You may be considering if it’s best to branch out and invest in some of these newer, lesser known coins, also called AltCoins. Here are four key reasons why it’s a very good idea to diversify your cryptocurrency investment portfolio by spreading out your investments to multiple coins.

1. Unexpected Price Increases & Decreases

A coin’s value could skyrocket or plummet at any time. Take into consideration Bitcoin’s great price increase and subsequent plummet in early 2014. At that time, most investors only held onto Bitcoin and no other currency. In the 3-4 years it took for Bitcoin to regain its value, these investors were left holding onto a coin with diminished value. They also had the chance to sell at a rate much lower than they know was possible.

Investors who possessed coins other than Bitcoin weren’t so unfortunate. Because their portfolio was spread across a broader spectrum, their other investments didn’t take that severe blow. They were able to continue buying and selling (“day trading”) regularly without worrying that they’re trading at rates far below the ATH (“all time high”).

Because any coin can skyrocket and plummet at any time – for any reason – it’s best to ensure your investments are spread out. There are over 1,000 coins on the market right now, and many will double, triple, even go up 10x during their lifetime. You want to ensure that you are not going to miss the boat on any single one.

It is correct that buying multiple coins is ‘watering down’ your profit potential. However this is a safeguard to prevent against value decreases harming the entirety of your portfolio. While you could play it risky and keep all of your coins in one cryptocurrency, you’ll be chronically concerned about potential crashes if you do so.

2. “Don’t Keep All Your Coins in One Basket”

In the world of Wall Street and investing, it’s simple common knowledge that investors should not be fully invested in one stock. This is a no-brainer in the world of investing, and this rule of thumb has been around for decades. However, people getting into cryptocurrency weren’t trained in investing strategies. They know nothing about this rule of diversification.

Therefore, if a new investor commits to only one coin – such as Bitcoin – they’re liable to incredible stress and frustration if a sudden news release causes its value to tank. Spreading out your portfolio is simple. Look at a market cap website to find out what the top 50 or 100 coins are. Research a few that have had upward price swings in the recent past. Figure out if these coins have more potential. If all looks good, then consider investing a percentage of your wealth in those coins.

3. Security of Cryptocurrency Diversification

In addition to safeguarding against sudden price drops, you’ll have enhanced security by having multiple wallets. Every day around the world, hundreds of cryptocurrency “wallets” are hacked, lost, and stolen. If all of your investment is on one wallet, then you’re at risk for any of those three tragedies.

Don’t keep all of your cryptocurrencies on one online exchange or online wallet library. Split them up into multiple accounts, and ensure that you have 2-factor authentication (2FA) enabled to protect against a hacked account.

There are major password breaches announced every year. Chances are, your username, email address, and password is out there somewhere on the Dark Web. It just takes someone trying out your username and password on an online exchange to plunder your wealth and leave you in shambles!

In addition to switching up your password for every online exchange you’re a part of, split your investments into different exchanges to maximize your security.

4. Knowledge of a Variety of Coins & Tokens

As you research all of these AltCoins to determine which ones are best for your next investments, you’ll amass an abundance of knowledge about each of these coins. You’ll learn what unique aspects each coin promotes. You’ll see how these coins are complementary to other cryptocurrencies. And you’ll be better equipped to educate others when they ask you if it’s worth investing in any given coin. Of course it is unreasonable to expect to learn a lot about every one of these thousand cryptocurrencies, but keeping an eye on the top 10 or top 20 coins will give you enough knowledge about this industry to make well-educated decisions.

You cannot trust media headlines to give you all of the knowledge you need to invest. These media publications are watering down the knowledge so that even the uninformed can understand why a certain coin’s value is increasing (or decreasing). This is why you should absolutely be able to write out a short paragraph on each coin you choose to invest in, explaining what it claims to do.

How to Diversify Into New Blockchain CryptoAssets

Start out by learning about five coins that are not Bitcoin. You can browse cryptocurrency market cap online lists to see what coins are worth the most. A market cap is the sum of money of every coin in circulation added together. You cannot determine if a coin is successful based on the price for a single coins, because every currency has a different number of coins in circulation.

After you learn of these five coins, you’ll want to sign up for an account on any one of the major online exchanges. Remember that each exchange offers a different variety of coins for trading, so you may need to register to multiple exchanges. Each exchange has different requirements for joining. Some require you to submit documentation such as a driver’s license or utility bill to prove you are who you say you are. Others may want you to verify your email address and phone number. The more secure and regulated each exchange is, the more they enforce identity verification.

There are some unregulated exchanges out there that do not ask for identity verifications, but these may be shut down at any time for any reason. Before you submit a single item of information, do your research to see if the exchange is legitimate and trusted.

After you make your purchase and successfully diversify your portfolio, you can sit back and watch these coins’ values go up and down over time. Using a spreadsheet, keep track of what price you bought the coin at, and document its value increase or decrease after each month. This will allow you to identify coins that are most successful, and you may choose to invest more in those coins. Over time, add more cryptocurrencies to your portfolio.

There are some investors who have diversified their investments into 100 or more coins! How diversified you want to be is entirely up to you; the only strong recommendation is that you do your research before diving into a coin for the first time.

With a diversified portfolio, you’re empowered to ‘ride the wave’ on multiple coins and see your value flourish in many areas. Keep an eye on news announcement and cryptocurrency blogs to learn of new coin announcements. And most of all, keep your coins safe!

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Cryptocurrency Investing

MetaMask: Ethereum ERC20 Token Wallet Browser Extension Beginner’s Guide

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The Beginner’s Guide to MetaMask

For those new to Ethereum or perhaps even cryptocurrencies in general, the name MetaMask has probably already popped up in conversations. MetaMask is essentially a browser extension, and acts both as a wallet and access point to the Ethereum network. Explained even simpler, MetaMask is a hot wallet.

On the blockchain cryptocurrency networks, users can opt for a hot wallet (“live” or actively connected to the network) or a cold wallet (disconnected from the network). A wallet is necessary to store personal altcoins off exchanges or anywhere else after trading or transacting.

Although many early exchanges act as a bank for digital traders, current wisdom dictates that users maintain their funds offsite. In addition, a user will very often need to fund a trading account from a wallet, as many don’t allow for fiat or legacy payment protocols.

There are pros and cons to both, and current trends see most users employing the duo as their needs dictate. A hot wallet can be accessed and pilfered through phishing or user error, whereas a cold wallet is dead to the network, allowing no access at all. A cold wallet is also sometimes called a vault, as it’s silent, secure and access-restricted.

Many users will encounter the name when looking at ICOs, because ICOs are dominated by the ERC-20 token protocol. ERC-20 is a “type” of token, developed and employed on the Ethereum network, that has proven the most malleable and compatible token structure for crowdfunding purposes. The vast majority of ICOs, while employing their “own” tokens, are actually building those tokens out of the ERC-20 protocol.

MetaMask Details

Looking at a few nuances of the wallet, since it is an organic build from the Ethereum network, the MetaMask wallet will only hold ETH coins and other ERC-20 tokens of whatever origin. Bitcoin, for example, cannot be held in a MetaMask wallet.

The other major component of MetaMask is that it is a gateway to the Ethereum network. What this means is that all of the network’s dapps are available to use for MetaMask wallet holders. Dapps are “decentralized apps” and so named because their backend code is running on a decentralized network, in this case the Ethereum network.

If dapps seem obscure, examples would be the game Cryptokitties or casinos like Etheroll, a marketplace like OpenSea and of course digital exchanges like ForkDelta and IDEX.

Without a middleman like MetaMask, a PC’s browser can’t access the Ethereum network. Not unless a user runs a “full node” and installs the whole 400GB Ethereum blockchain on their PC.

The reason why MetaMask is known as a browser extension is because MetaMask injects a javascript library in your browser page. The javascript is called web3.js and written by the Ethereum development team.

Installation and Setup Of MetaMask

MetaMask is “open source,” which means anyone can view the code on GitHub. Currently, MetaMask functions on the FireFox, Chrome, Brave and Opera browsers. Links to MetaMask extensions for all relevant browsers are readily available on the MetaMask homepage. Once installed, the MetaMask logo will appear in the top right of the screen. Chrome, for one, will typically ask you to enable an extension, but these steps are all linked and users are done with a MetaMask installation in a minute or two.

Users don’t require a username when registering a MetaMask wallet, only a password. With MetaMask, a user’s password is called a “DEN.” although a clever play on words, since the logo is a fox’s face, although this appears to be more coincidence than any deliberate naming.

After creating a password, users are issued with a unique 12-word “seed phrase.” This is a bunch of words employed to safeguard a user’s account. It’s recommended that users stash their seed words in a competent password keeper like LastPass, or similar apps. Users can also generate multiple MetaMask accounts. Every account created by a user with MetaMask will share seed words and the password, but will have a different address.

Transacting With MetaMask

Paying someone or otherwise dispatching tokens from the MetaMask wallet is a simple matter. A single click on “Send” allows users to populate the subsequent screen with a user address. Send the funds and the transaction is done, and users receive a confirmation once the transaction is completed.

When interacting with dapps using MetaMask, provided a user is logged into their MetaMask account, they can access Ethereum network dapps automatically through their browser. Logging into a dapp like OpenSea, for example, the decentralized outlet for crypto collectibles, the dapp notes a user’s MetaMask address. There is no need to log into dapps separately, as the network has user intel integrated, recognizing an account holder wherever they go on the Ethereum blockchain.

MetaMask is free to use, users paying only the “gas” cost – the base cost of transacting on the Ethereum network. Gas is the fee required to effect any transaction on the Ethereum network. It is denominated in “Gwei,” one billionth of an ETH. Looking at overall UX, MetaMask is a reputable offering, with good support and a welcome absence of any dark press.

Protecting Your MetaMask Account

How Safe is MetaMask? In the world of cryptocurrencies, security is top of the list. Constant hacks and successful phishing attempts keep making the papers, while legislators are still battling to bring regulation up to the same level as legacy fintech. Since cryptocurrency thefts cannot be undone by identifying the thief and reclaiming funds, users should always have security uppermost in their minds when employing their MetaMask wallet.

It is advised to log out of a MetaMask account when it’s not being used. When a user is logged in, the account is considered “unlocked” and more vulnerable than when shut down. Open MetaMask accounts  enable crooks to glean a user’s wallet address, token types, the wallet balance and especially transaction history.

Don’t be fooled into thinking that phishing can only happen via mail, however. Users should be aware of suspicious pop-ups or other notifications while signed into their wallet, as this can also be indicative of a phishing attempt.

Things like irregular pop-ups that ask a user to sign for a pending transactions are high risk. So too are messages telling users that their last transaction failed, then rerouting the repeat transaction to a different address. Much like cyber criminals emulate bank UIs and present with all the right logos and all the right colors in place, so too have there been instances of phony interfaces emerging.

For the best secure arrangement, users would employ a cold wallet like Ledger or Trezor Model T. For human reassurance, keeping the bulk of one’s altcoin holdings in a cold wallet can’t be beaten. That said, MetaMask has never suffered a hack nor had other instances of bad, sad press around lost funds and theft.  To date, the wallet is impervious, and user losses stem from phishing attacks for which MetaMask can’t be blamed.

MetaMask Conclusion

MetaMask is elegantly simple and easy to use. The wallet-stroke-network enabler has become the most popular and convenient route to navigating, paying and trading on the Ethereum network. Standing back and looking at the offer as a non-technical or, rather, non-crypto person might, as an offer it’s very simple and easy to install.

Even newcomers can quickly grasp the essence of it and get on with interacting on the Ethereum blockchain. MetaMask is intuitive and has been elegantly simplified because of its homegrown Ethereum nature. Any hot wallet, however, carries a higher risk than any cold wallet, and users should always have caution in mind when transacting via the wallet.

You can read more about MetaMask here: metamask.io

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Top 6 Cryptocurrency Exchanges Using Own Coins For Reduced Fees

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Best Cryptocurrency Coins Which Grant Dividend Or Reduced Fees In 2018

The cryptocurrency space has gained incredible momentum in the last few months. This is fueled especially by the existence of coins that not only earn dividends for the owners but also earn passive income while at the same time offering very low transaction fees.

6 cryptocurrency exchange coins and tokens that make money in the Crypto sphere are discussed below in detail.

KuCoin Shares (KCS)

KCS is a native token owned by KuCoin Cryptocurrency Exchange which is based out of Hong Kong. A total of 100 Million tokens of KCS were distributed during the KuCoin Initial Coin Offering (ICO) in 2017. KCS tokens are fundamentally ERC 20 tokens. The current value per token of KCS is US$ 4.78 and the market capitalization is approximately US$ 435 Million.

Holding KCS tokens is extremely advantageous for both Holders and traders. KuCoin Shares have a reward ratio for the holders. 10% goes to KuCoin, 50% goes to the KCS holder and 40% belongs to the referred individual. 10% of the Exchange`s profits are used in buying back the KCS and then burning the tokens. This means that KCS holders are further rewarded due to the appreciating prices.

Furthermore, Owners of KCS receive 50% reduction of the platform`s trading fees on all the volumes in the Exchange. Due to the referral system at the KuCoin Cryptocurrency Exchange, owners of KCS receive higher passive income.

Binance (BNB) Token

BNB is a native coin that is owned by Binance, which is one of the best cryptocurrency exchanges in the current Crypto market. Binance exchange was developed in China but relocated to Japan in September 2017. BNB has a current market value of US$ 11.82 and a market capitalization of US$ 1.3 Billion.

BNB is also an ERC 20 token with a fixed supply of 200 Million. During the Initial Coin Offering (ICO) in 2017, the BNB token was generated to fund the development of Binance Exchange. Owners of BNB token use it to pay for fees on the Exchange`s platform. These fees include withdrawal fees, Listing fees, Exchange fees and any other applicable fees.

Binance buys back 20% of BNB tokens in every quarter which the Exchange then burns until the total circulation reaches 100 Million. For holders of BNB, the total cost of trading at the platform is reduced by 50%. The owners of BNB also receive regular dividends when the BNB tokens are regularly burnt every quarter till the total supply goes back to 100 Million. The increased daily volumes at the Exchange further increase the benefits by providing an increased passive income.

CryptoBridge (BCO) Coin

BCO is a native crypt-compatible coin created in July 2017. It is owned by the Decentralized Cryptocurrency Exchange (DEX) called CryptoBridge Dex which allows trading of most of the popular Altcoins. This Exchange utilizes the multi-signature federated gateway.

BCO coin is mineble and unlike KCS and BNB, it is not an ERC20 coin. BCO Coin has a current market value of US$ 1.64 and a market capitalization of US$ 45Million. Holders of BCO get 50% of the share bonus earnings of CryptoBridge Exchange when they stake their BCO coins.

For 3 months they receive 20% bonus, for 6 months they receive 50% bonus and for 12 months they receive 100% bonus. However, staking their coins for 1 month yields 0% bonus.

COSS Token

COSS is an ERC20 token that is owned by COSS Cryptocurrency Exchange located in Singapore. COSS exchange has matching features like Binance and KuCoin Exchanges. The Exchange is unique since it embraces plans of being a USD Exchange as well as payment processor.

The current market value of the COSS token is US$ 0.29 with a market capitalization of US$ 23 Million. The COSS Exchange retains and validates all the transactions that are initiated at the platform on the Ethereum Blockchain.

COSS has a great dividend program. The holders of the coin are paid 50% of the total earnings from the Exchange trading fees on a weekly basis. Additionally, holders can store their coins at the COSS Exchange platform or at an ERC20 enabled wallet such as MyEtherWallet.

CryptopiaFeesShares (CEFS) Token

CEFS token is another dividend earning token that is owned by the Cryptopia Exchange which is one of the most popular digital Exchanges trading numerous Altcoins. Cryptopia is headquartered in New Zealand.

CryptopiaFeesShares are very expensive and rare. The current market value is US$ 1,816 per token with a total supply of 6300 CEFS. The Cryptopia mining platform for cryptocurrencies is well streamlined and easy to use.

The holders of CEFS Token receive 4.5% of the monthly earnings from Cryptopia platform which is then distributed proportionately as per the CEFS holdings. Holding the token for longer periods leads to more returns.

Bibox (BIX) Token

BIX is a native token that is owned by the Bibox Exchange, an all enhanced-encrypted Exchange which was founded in China. It also has similar features like Binance. This exchange enables traders to trade numerous Altcoins. The exchange supports different languages like English, Chinese, Korean, Mandarin, Vietnamese and Russian. The Exchange is also unique since it has the capacity to trade cryptocurrencies while utilizing Fiat currency within the same medium.

The current market value of BIX is US$ 0.6 with a market capitalization of US$ 63M and a circulating supply of 105,918,066 BIX. The tokens are bought back and burnt regularly until the total supply reaches 271 Million.

Holders of BIX receive rewards in the form of fee reduction. BIX tokens have various uses especially in paying for the Exchange`s fees like Exchange fees, Listing fees and Withdrawal fees. The discount rates for using BIX are as follows: 50% in year one, 25% in year two, 12.5% in year three, 6.25% in year four and 0% in year five.

Our Final Thoughts

Conclusively, the best coin or token depends on the goal of an individual. For instance, an individual who is actively involved in trading is better suited to possess the BNB token while an individual whose purpose is passive income, then KCS is ideal. High volumes of the trading Exchanges will mean more dividends while the costs in trading and the referral systems will mean more passive income.

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Top 5 Most Common Bitcoin & Cryptocurrency Scams in 2018

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Cryptocurrencies have become a bit of hot cake. On one hand, lots of people are getting in and making a lot of money. Others are getting burned and losing their life savings in a bid to play in the markets and make a killing.

Most of those who do often invest in cryptos known as scam coins. These cryptocurrencies are designed to rip off people, and solely benefit their creators.

But because most newbies have no idea of how to identify the real moneymakers from the scams, many get burned, losing a lot of money in the process. This article is contains information on the more common cryptocurrency scams, show you how to identify them, and more importantly, teach you how to protect yourself, so you don’t get ripped off.

Types Of Cryptocurrency Scams

1. Cloud Mining Pools

Please understand that there are some legitimate cloud mining services out there. So, not all of them are bad. That said, this is one of the more common ways people lose their money.

These companies attract people who want to go into cryptocurrency mining, but have neither the time nor the money to buy and maintain their own cryptocurrency miners. So, these companies offer to help them mine, in exchange for a fee and a promise of the profits.

To identify the legit operations from the fraudulent ones, look for their registrants, company team lead and location. A major red flag is if you cannot find direct details when you do a whois lookup of their domain name.

But that alone isn’t enough. Look for transparency in terms of who runs what. Legitimate cloud mining services will have either their whois details available and/or information on the team managing the service.

Also be wary of companies registered in the US or UK, but with all team members resident abroad. If you cannot find a local address that’s verifiable, you might want to keep your money as that’s another red flag.

2. MLM Cryptocurrency Organizations

These are popping up all over the place and promising to make people instant millionaires. All participants have to do is get more people on board to invest in a specific cryptocurrency or a proxy project and they’ll profit from it.

The reality is that while there are legit multilevel marketing schemes, many of these crypto based MLM programs have no tangible product or service to sell. If the only thing they’re selling is a pyramid scheme, run and don’t look back.

3. Bogus Initial Coin Offerings (ICOs)

More and more people are realizing that they can make a lot of money from initial coin offerings. These people are taking advantage of the unregulated nature of the crypto space and the ease of creating tokens to launch ICOs.

In fact, it is estimated that over $1 billion has been invested in ICOs in the last 6-12 months, with many being unrealistic or downright fraudulent.

Unfortunately, many of these scammers are becoming more savvy and cleaning up their act by presenting a legitimate front –often with roadmaps, white papers, detailed information about their “projects” and other trappings that make their campaigns look legit. So, while it’s getting more difficult to spot the fake ICOs, it’s not impossible.

For starters, research thee company itself. If it’s been in business and has a good reputation, then you have a winner. If it’s new, has no reputation, and isn’t transparent about its processes, team or location, close that tab and keep looking.

Also, look at their management team and research them. Always go for those with well known and reputable team members. And if their promise or project sounds too good to be true, chances are it is.

4. Crypto Investment Packages

These are primarily bitcoin based and more formally known as bitcoin investment packages (BIPs). These are similar to cloud mining in the sense that they promise daily returns which are usually smaller percentages of your investment.

They often start out well to gain your trust, and then one day, disappear. This is another pyramid scheme designed to fleece you of your hard earned money. Users tend to fall for it by reinvesting their funds only to have their returns and payments gradually slow down and stop coming in altogether.

For these packages, we’ll say just walk away completely. And if you want to do this, just understand that it’s a short term Ponzi scheme and go in with your eyes open. For best results, get in at the very early stage, make your money, and cash out.

5. Pump and Dumps

These are projects created by individuals or consortium's for the sole purpose of driving the price wall up, and then cashing out once it reaches a predetermined price.

When you see cryptocurrency prices going up for no reason whatsoever, know that it’s a pump and dump in the making. If you want to partake, just make sure to get in early, enjoy the ride and cash out quickly. However, we don’t recommend investing in schemes like this at all.

There are communities that are solely dedicated to this. The go in and buy huge quantities of a certain cryptocurrency, watch the price artificially inflated and others get on board, then dump the coins after making a lot of money.

How To Protect Yourself From These Cryptocurrency Scams

There’s one simple thing to look for, and that is the use of cryptocurrency. Always lookout for the following when looking to invest in a cryptocurrency:

  • An active community
  • A development team dedicated to the project
  • Transparency from the company
  • Valid viable use case that solves actual problems
  • History

Always research a cryptocurrency before investing in it. A simple search string like “[intended cryptocurrency] daily reddit” will be enough to show if they are legit or not. Also look for mentions in major news outlets, visible team leads with a track record of results in and/or outside the industry and backers.

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