Crypto Archives - Simply Flows

Types of Cryptocurrencies that Exist Today

When cryptocurrency first appeared on the market, it was an obscure subject. There were only a handful of coins. Nowadays there are thousands of cryptocurrencies (over 13,000, in fact, according to CoinMarketCap). Some are more popular such as Bitcoin, Ethereum, and Dogecoin. However, there are less known cryptos such as Fusion or Binance Coin. Crypto is a nascent market, with a lot of changes going on, therefore in a constant flux. Even though there are currently thousands of cryptos, they all fall under three main types of cryptocurrencies.

Bitcoin

Bitcoin was created in 2008 by Satoshi Nakamoto – a pseudonym of a person whose identity is still a mystery. This was the beginning of a technological movement. Also, it introduced a new advanced technology called blockchain. Bitcoin is a digital currency and allows you to send money to other people. Bitcoin is also decentralized. One does not need a third party to make transactions and use the currency. Something else, people are able to make anonymous transactions. The underlying blockchain technology makes that possible.

Altcoins

Some altcoins are very similar to Bitcoin with a few small changes. But there are other altcoins such as Ethereum and Chainlink, that are entirely different and built upon a new technology. These types of altcoins introduced the idea of a smart contract. Smart contracts automatically execute transactions. Transactions take place when all of the conditions in the agreement are met. These conditions are previously agreed upon and written into the contract when it is created. Smart contracts do not have a third party involved. A contract could be the sale of a business or the sale of a stock. The introduction of smart contracts also allows people to build applications on these blockchains. These apps are known as dApps or decentralized apps.

Tokens

Tokens are completely different in the sense that they don’t have their own blockchain. They are a form of currency on dApps. When using dApps people can make a purchase using tokens or they can receive deals and benefits. The best part about dApps is that there is no need for a middle man taking a commission or reselling your data.

Ultimately, there are many different types of cryptocurrencies that exist today. However, there are three main types that they fall under. They each have different purposes and functions. You can transfer money, build applications, and make purchases on those applications. Cryptocurrency is versatile and has the potential to serve many different needs today and in the future.

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The Evolution of Day Trading

Day Trading: Almost 150 Years Old

Traces of day trading can be detected back to as early as the late 1800’s. When the telegraph was invented, the stock market used the technology to create the first ticker tape. Ticker tapes then made it easy to communicate information and developments about transactions brokers were making on the stock floor. Brokers would use this information to make educated decisions in the stock market during the day. And during these times there were many barriers to entry when it came to the stock market, so there were not a lot of day traders. Let’s find out how the evolution of day trading played out over the more recent years.

Evening the Playing Field

In the year of 1971, the National Association of Securities Dealers created an electronic communication network (ECN). An ECN is a computer system that matches buyers and sellers for stocks in the stock market. It also allows for trade to take place outside of traditional or standard trading hours, so investors have 24/7 news to react to. ECN’s introduced ease of use and timely matched sellers and buyers, making the process a lot easier to participate in.

In 1997, online brokers launched services that made it even easier for investors, and ordinary people, to invest in the stock market. Individuals now had access to stock prices, trading activities and trends, just an overall live insight on the market. Accessibility of the stock market and the ability to buy and sell, allowed day trading to rise in popularity. This made it possible for ordinary people to participate.

Welcome to the 2000’s

This is when day trading started to be taken more seriously. We can go on the internet and look up Yahoo Finance and find stock prices updated by the second. We can access updated stock information, receive financial news about companies, and upcoming developments on the market like IPO’s. There are plenty of trading apps and websites. Today, day trading is a popular activity and almost seen as a commonplace in the financial markets. It has also risen in popularity amongst common people who do not work in the financial space. With the rise in technology and online trading applications, the evolution of day trading has happened quickly. Day trading has now become something everyone with a device connected to the internet can participate in.

If you are a day trader, find out how Simply Flows can help you evolve.

Six Major Differences Between Crypto and Stocks

There is an abundance of information about crypto and stocks, but do we know the difference between these two investments? People use both to make money, but there is a clear distinction between the two. Let’s explore the six significant differences and how they may impact investment decisions.

It is essential to know the differences between crypto and stocks before you invest. The most important ones are: the assets, the safety of the investments, their volatility, the volumes traded, their liquidity, and the hours of operations of the different exchanges.

Assets

Crypto and stocks are both asset classes but fundamentally different. When you buy a stock, which usually represents a share of a publicly traded company, you are obtaining ownership of part of that company. Companies issue and sell stocks to raise money for growth, expansions, or new product lines. With crypto, you are buying a digital currency that you can trade. You are not obtaining physical shares in a business, you are purchasing digital coins or tokens. With stocks, there is no restriction for the number of shares within a company. Just the opposite is true for crypto, since there is a limited supply of most coins. The assets that crypto and stocks represent are not very similar to one another.

Trading Hours

The hours when trading can occur differ between the stock market and crypto. The stock market operates during regular business hours Monday-Friday and is closed on public holidays. On the other hand, you can trade crypto 24/7 – every day of the week, every hour of the day or night. Trading crypto is around the clock, whereas the stock market has time restrictions.

Liquidity

Liquidity is the ability to quickly buy or sell stocks without sacrificing the price. In general, stocks are more liquid than crypto. Since the stock market has been around for a longer while, and there are many more traders, it has higher liquidity than crypto. Liquidity differs from one cryptocurrency to another. For example, Bitcoin is more liquid than other smaller coins available on the market.

Safety

For both crypto and stocks, there is always the concern of fraud and other safety risks. However, it is improbable for stocks to be fraudulent, since they are highly regulated. Also, public companies go through the scrutiny of quarterly reporting their financials. If a company fails to comply with the regulations, it could be delisted. Crypto is newer and largely unregulated, and therefore, more risky. There are issues with lost or stolen user identity keys as well. Safety is a more significant concern for trading crypto, which is essential to note when investing.

Volume

Stock exchanges have existed for more than two centuries. Cryptocurrency exchanges, on the other hand, have only been around for 10 years. That reflects the daily volumes traded on them. The global equity trading was $38 trillion in Q2 of 2021, while all crypto exchanges accounted for less than $150 billion daily in October, 2021.

Volatility

Volatility can be both positive and negative. There are lots of highs and lows in the market, making it unpredictable. The market is more stable with low volatility, but it takes longer to receive a financial return. Stocks are more likely to follow this ideal, especially since the market is more developed. Crypto is newer and more likely to have more sporadic highs and lows. Since the volatility is constantly changing for the crypto market, people could panic and sell their investments at a loss. Panic selling is more common with crypto due to the unpredictability and lack of stability in the market. Volatility is unforeseeable, making crypto more exposed to change than stocks.

Closing Remarks

All in all, these are the significant differences between crypto and stocks. If you want to go for a risker, new investment, you should focus on crypto. Stocks would be a safer choice with a longer return on investment. It is essential to take these differences into account so you can determine where you wish to invest.

If you want to get involved with stocks and crypto, Simply Flows could help you determine the best investments to make.

Top 3 Benefits of Cryptocurrency for an Organization

Cryptocurrency is a form of digital currency and is a digital asset that is distributed and communicates across a multitude of computers. Cryptocurrency is based on blockchain technology. Blockchain is a type of database that is able to store data in blocks that are chained together. Cryptocurrency runs on a decentralized system. A decentralized system allows it to exist outside of the government and central authorities control. Cryptocurrency has multiple risk associated with it. It could be a means of payment for illegal activities. Furthermore, it has high market volatility and possesses vulnerable infrastructure. However, there are many benefits an organization should consider when deciding to accept and implement cryptocurrency.

Welcomes New Customers

Incorporating cryptocurrency into your organization can serve as a benefit. The use of cryptocurrency opens the organization up to new demographics. People who are cryptocurrency users are more likely to be customers. Deloitte notes in a recent study that up to 40% of customers who pay with a form of cryptocurrency are new customers. These customers also spend twice the amount of credit card users.

New Form of Capital

Cryptocurrency gives opportunity for new forms of capital. Cash loses value and depreciates in time due to inflation. Cryptocurrency is an asset and has the potential to become an alternative to cash. Even though cryptocurrency is technology based, it still can hold very traditional purposes but at an enhanced level.

Security

Cryptocurrency enables real-time and simple money transfers. Transactions have strong security and the strong encryption techniques used throughout the blockchain provides a safeguard against fraud and account tampering. Cryptocurrency allows for confidentiality in transactions. And it guards the privacy of your financial history and protects your account.

Overall, there are many benefits of cryptocurrency for an organization. It allows you to reach new demographics, customers, and can provide the opportunity of a new form of capital. Lastly, the transactions are safe, reliable, and confidential. Cryptocurrency is still fairly new and still in the process of development and governance. The benefits of crypto are apparent and organizations should seriously consider them.

Day Trading Benefits Exceed the Risks

Since COVID-19, most of us have been working from the comfort of our own homes. As we are slowly emerging out of the pandemic, people start returning to the office. For many going back is no longer appealing and they have been looking for other ways to make money. Day trading stocks or crypto is an excellent way to support yourself and can be done from any location. Some risks come with it, but the benefits of day trading could outweigh them if you understand the process.

What is Day Trading?

Trading is the act of buying and selling stocks, cryptocurrencies, ETFs, bonds, etc., to make money. Day trading is when the above shares are bought and sold within the same day. Day traders take advantage of small changes in price throughout the day and buy and sell based on these fluctuations. They must pay attention to the news and the ups and downs of the market to make sure their short-term investment will pay off. Day trading is a great way to make money fast, but knowing the risks and benefits is essential.

What are the Risks?

Any process involving quick thinking and unforeseen circumstances involves risk. Day traders need to understand these risks before going into this practice. If a day trader does not understand the market, then they will not be successful. A person has to have a sound mind and be able to make split-second decisions. If they cannot, then they could lose significant amounts of money from their investments. People engaging in day trading must look out for scams and price fluctuations. If they are unable to do this, then day trading is not the best investment to make. Plus, there is always a chance for drastic changes in the market to happen unexpectedly. Day traders need to be willing to take this chance and understand that they will not succeed if they do not do enough research.

Taking the Chance

Although there certainly are risks, there are many benefits of day trading, as well. The obvious best outcome is making large amounts of money. Once you learn your way around, day trading could be a “get rich quick” situation. Another benefit is the flexibility to work from anywhere. Also, you could work for yourself or get certified and join a brokerage. A day trader makes the decisions of what and when to trade by themselves. This autonomy is empowering and results in higher job satisfaction and fulfillment. As with any stock trading, the risks of a loss are high. A general rule of thumb is to only take risks that you can afford. Starting small, trying out different strategies, learning a lot, and making smart investment decisions could make you quite successful in pursuing this lifestyle.

Read this article to learn how you can get more involved with day trading.

Day Trading Crypto: A Full-Time Job

We hear more and more about trading cryptocurrencies. People have easy access to tools and data, enabling them to try and make money off of this super volatile market. But can someone make a living from day trading cryptocurrencies? Turns out that buying and selling crypto can indeed be a full-time job.

Why Day Trade Crypto?

Many people see day trading crypto as an opportunity to make some extra money to supplement their income. For others it is the primary source of income. Tens of millions of workers were laid off or furloughed during the pandemic, many couldn’t get unemployment benefits and all that put a lot of stress on them. Some people researched the market and began buying and selling crypto to earn an income during this uncertain time.

How to Successfully Day Trade Crypto

When making smart sales, people feel satisfied and empowered. One needs to research the market well to successfully trade crypto. Then, develop strategies based on pricing and trading indicators trends, and also news and social media posts. A person could use trading simulators for training. Also, they can choose from a number of applications to monitor and trade on the market.

Besides this, aspiring traders need to have specific psychological qualities to be successful. They must be self-disciplined, patient, focused, and trustworthy with large amounts of money. There is a lot of mathematics and statistics involved, too. And last but not least, the space is always changing, so traders must enjoy learning – a big portion of their job.

Something else to note is that the crypto market is open 24/7. That could be challenging for one’s work-life balance.

If you want to become a successful day trader, not only do you need to put in the work and understand the crypto market well but equally importantly, you need to posses certain personal traits.

Making this into a Lifestyle

As with any new profession, it takes time to learn it and to make it profitable. Day trading is a business, and you need to have the skills required to perform well. It is essential to select the coin to trade, to have a sound strategy, and to be ok with losses. Learn as much as you can, seek help from experts, rely on the community for advice on tools to use, mark important dates, and follow the news. As with any other occupation nowadays, one needs to be informed, flexible, and to use the right tools to make their work easier and more efficient. And of course, you must have the drive to become successful and to turn crypto day trading into a lifestyle.

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Category Archives: Crypto