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Top 5 Tips Prior to Engaging in OTC Bitcoin Trading

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When it comes to dealing with Bitcoin trading, there are numerous options one can easily explore. Whether it is through regular exchanges, OTC trading, or peer-to-peer trading, any and everyone option can be worth exploring. However, those who want to experiment with OTC Bitcoin trading need to keep some very basic tips in mind at all times. No one wants to lose money in a way that could have easily been avoided.

Contents [hide]

  • 1 Private OTC Chat Rooms are a No-no
  • 2 Never Deal With Just Individuals
  • 3 Proper OTC Desks are Easy to Find
  • 4 If it’s too Good to be True…
  • 5 Don’t Invest Money one Can’t Afford to Lose

Private OTC Chat Rooms are a No-no

On the surface, there won’t be too many people who bat an eye where private OTC Bitcoin trading groups are concerned. Similar to pump signal groups or altcoin discussion groups, OTC trading is not necessarily a business activity out in the open at all times. Over the past few years, there have been plenty of legitimate private OTC groups, albeit the number of potential scammers should never be overlooked either. Since these criminals know people simply want to buy BTC at a competitive price, they will try to obtain customer funds without handing over any BTC.

Whereas most people would automatically assume such businesses are shut down pretty quickly, the reality is often different. Since these trades involve private groups, the information is usually not shared with the rest of the world. This is primarily because users know all too well they opted for a less-than-legal option and must pay the price for trying to take a shortcut. That doesn’t mean fake private OTC Bitcoin trading groups aren’t shut down in the end, though, but it seems unlikely any stolen money will ever be recovered.

Never Deal With Just Individuals

Over the past few years, the number of people who own Bitcoin has seemingly increased. As such, one would expect the OTC market to grow by leaps and bounds. Anyone is free to buy and sell Bitcoin at their own pace, as long as they don’t try to make millions of dollars from doing so. When traders deal with very high volumes of Bitcoin and fiat, they will need to obtain a money transmitter license sooner rather than later.

This is why private individuals offering OTC Bitcoin trading services are best avoided. It is very uncommon for any of these individuals to be officially licensed. As such, these users often tend to scam others and run off with their hard-earned money. While it may seem convenient to deal with an individual rather than a proper company, the results will often be disappointing or even worse.

Proper OTC Desks are Easy to Find

As the popularity of Bitcoin continues to grow by leaps and bounds, there are more and more legitimate and registered companies who engage in OTC Bitcoin trading. Some of the well-known names include Japan’s Coincheck, Kraken, Huobi, and Itbit.  These are just three examples of how many companies users can go through for all of their Bitcoin needs. It might involve a bit more work to get everything set up accordingly, but it greatly reduces the risk of losing any money in the process.

Speaking of finding a legitimate Bitcoin OTC trading provider, there are more and more companies joining the fray. This further expands the number of options users have to legitimately obtain Bitcoin through methods which suit their needs the best. To properly engage in this type of business activity, users should always conduct their thorough research before making any decision. It takes effort to get in on the Bitcoin action, after all.

If it’s too Good to be True…

It is better to avoid such offers altogether. No one will openly reject an option to buy Bitcoin slightly below market prices, but any price difference that seems too good to be true is almost always a scam. Offers like these will become a lot more apparent when the next Bitcoin bull run commences and FOMO starts kicking in accordingly. It is very difficult to buy Bitcoin at the real market price, primarily because the value fluctuates quite a bit every single day.

Moreover, any relatively shady business which explains why a user or company is engaged in OTC Bitcoin trading will usually indicate a scam looms ahead. Similar to the point above, conducting thorough research can usually prevent users from losing their money. A somewhat dubious background story combined with a too cheap Bitcoin price is usually a major red flag. Even so, there will be people who fall for these kinds of schemes simply because greed gets the best of them.

Don’t Invest Money one Can’t Afford to Lose

The golden rule as far as overall investing is concerned is to never spend money on such markets if the funds can’t be written off when things go awry. The same principle applies to OTC Bitcoin trading, as Bitcoin’s price is very volatile. Given the current value per BTC, there is a lot of money involved when one tries to obtain a full Bitcoin. As such, do not try to chase potential profits if the money is not there to spend on extras like these in the first place.

Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency.

 

source :nulltx

Bitcoin

Max Keiser: New Bitcoin Network Hash Rate High Suggests Price Is Next

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The Bitcoin (BTC) hash rate has broken yet another new all-time high, according to Aug. 19 data from monitoring resource Blockchain.com.

The top coin’s hash rate has continued to break previous records throughout summer, today hitting an whopping 82.5 TH/s.

Bitcoin network hash rate, 1-year chart

Bitcoin network hash rate, 1-year chart. Source: blockchain.comIn a tweet posted earlier this month, Bitcoin investor Max Keiser reiterated his mantra that:

“Price follows hashrate and hashrate chart continues its 9 yr bull market.”

The argument goes that the higher the Bitcoin hash rate, the more secure the network, the higher the investor confidence will be, driving up demand. Therefore, Keiser argues that price is playing catch up with network fundamentals.

Network Fundamentals

The hash rate of a cryptocurrency — sometimes referred to as hashing or computing power — is a parameter that gives the measure of the number of calculations that a given network can perform each second. A higher hash rate means greater competition among miners to validate new blocks; it also increases the amount of resources needed for performing a 51% attack, making the network more secure.

The string of new records posted throughout summer is a bullish sign, with analysts and traders alike buoyed by signs of the strength and robustness of the network.

Looking ahead

Bitcoin’s halving — a pre-coded 50% reduction of block rewards for miners— remains some time away: May 2020. 

While the event can have bullish implications for a coin’s price (by increasing scarcity), its impact on miners is keenly watched, with some concerned that lower block rewards will deter network participants and adversely impact the network’s hashing power.

This summer, Litecoin (LTC) creator Charlie Lee — who had forecast a post-halving shock to the coin’s mining ecosystem — had his expectations overturned when the network’s post-event hash rate was revealed to be just as robust as ever.

Source:cointelegraph

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World’s Largest Crypto Trading Competition Announces 600,000 USDT Prize

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The Bitcoin (BTC) hash rate has broken yet another new all-time high, according to Aug. 19 data from monitoring resource Blockchain.com.

The top coin’s hash rate has continued to break previous records throughout summer, today hitting an whopping 82.5 TH/s.

Bitcoin network hash rate, 1-year chart

Bitcoin network hash rate, 1-year chart. Source: blockchain.comIn a tweet posted earlier this month, Bitcoin investor Max Keiser reiterated his mantra that:

“PRICE FOLLOWS HASHRATE AND HASHRATE CHART CONTINUES ITS 9 YR BULL MARKET.”

The argument goes that the higher the Bitcoin hash rate, the more secure the network, the higher the investor confidence will be, driving up demand. Therefore, Keiser argues that price is playing catch up with network fundamentals.

Network Fundamentals

The hash rate of a cryptocurrency — sometimes referred to as hashing or computing power — is a parameter that gives the measure of the number of calculations that a given network can perform each second. A higher hash rate means greater competition among miners to validate new blocks; it also increases the amount of resources needed for performing a 51% attack, making the network more secure.

The string of new records posted throughout summer is a bullish sign, with analysts and traders alike buoyed by signs of the strength and robustness of the network.

Looking ahead

Bitcoin’s halving — a pre-coded 50% reduction of block rewards for miners— remains some time away: May 2020. 

While the event can have bullish implications for a coin’s price (by increasing scarcity), its impact on miners is keenly watched, with some concerned that lower block rewards will deter network participants and adversely impact the network’s hashing power.

This summer, Litecoin (LTC) creator Charlie Lee — who had forecast a post-halving shock to the coin’s mining ecosystem — had his expectations overturned when the network’s post-event hash rate was revealed to be just as robust as ever.

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Why Bitcoin Matters: Ghana Finance Crisis Ties Up $1.6 Billion for 70,000

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For the longest time, Bitcoin (BTC) has been viewed as something with no inherent value.

Legendary investor Warren Buffett, for instance, once called the cryptocurrency “rat poison squared”, later explaining that there isn’t much inherent value in the project. Other notable players in finance and politics, including U.S. President Donald Trump, have echoed this analysis, using phrases like “thin air” and “unbacked” to get their point across.

Unlike traditional stocks and assets, Bitcoin doesn’t provide a fixed yield, a dividend, or generate cash flow. And compared to traditional and modern fiat currencies, BTC isn’t backed by the power of a government or the scarcity of an underlying asset.

But, a series of recent macroeconomic and geopolitical events all across the world have begun to prove that Bitcoin is needed, whether governments, Wall Street, Silicon Valley, or central bankers like it or not.

Bitcoin is Needed, Now

According to a recent report from Bloomberg, Ghana is in the midst of a financial crisis. The report, published this weekend, suggests that there are 70,000 Ghanaian investors affected in a “cleanup” of the nation’s banking industry.

The outlet writes that the crackdown, which resulted in many local lenders and savings companies shuttering their businesses, “triggered a run on fund managers”, most of which who weren’t liquid enough to satisfy the demands of their investors.

Due to this, there exist a purported 70,000 Ghanian investors who can’t access $1.6 billion worth of their investments, more than a third of the African country’s private fund sector. Yikes.

According to cryptocurrency commentator Rhythm, Bitcoin “fixes this”. What he/she seems to be referring to is the fact that unlike the traditional fiat system, Bitcoin and other decentralized technologies don’t require middlemen.

Should you be investing in the right products and with the right infrastructure, you should be the only one that can manage your Bitcoin and cryptocurrency investments.

This crisis in Ghana is somewhat reminiscent of what happened in Cyprus around five years ago. For those who missed the memo, the European island nation was required to bail in its commercial banks, resulting in thousands losing their wealth, a run on the banks, and a subsequent spike in local Bitcoin demand.

Of course, Ghana is in a different situation, but the underlying need for Bitcoin then and now is all the same, if not more accentuated. Bitcoin is decentralized, non-sovereign, scarce, immutable, programmable, and unconfiscatable.

World is Screaming for An Alternate Economy

This crisis comes as many other facets of the world are starting to scream for something new, something different.

Just look to Argentina, where the incumbent president lost a recent race to someone who analysts say will plunge the South American economy into yet another bout of chaos. This political result led to a 20% collapse in the Peso against the U.S. Dollar, a 50% collapse in the local stock market, and a slight uptick in Bitcoin volumes and a premium for cryptocurrency.

There’s also a crisis in Hong Kong, where literally millions of locals have been taking to the streets to protest the actions of the local government and the mainland Chinese government, who they say are encroaching on their democratic freedoms. There, too, a premium on the price of Bitcoin has been seen.

Bitcoin, according to a growing number of analysts, is a perfect hedgeagainst macroeconomic turmoil, geopolitical debacles, inflationary monetary policies, irresponsible fiscal policy, and so on and so forth.

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