Crypto Academy

Who’s Vitalik Buterin

Who's Vitalik Buterin

Vitalik Buterin

3 min reading

Vitalik Buterin, a major figure in the crypto world. Everything you need to know about him is found here.

Who's Vitalik Buterin

Who's Vitalik Buterin?

Nobody talks about it too much, but the cryptocurrency growth comes from the launch and popularisation of Ethereum. The new environment has maximized the potential of blockchain in the fintech sphere. It gave rise to the launch of new startups and projects, which in turn attracted huge investments. So who is the creator and the main idea inspirer of Ethereum? You will find out in this article right now.

Who is Vitalik Buterin

Vitalik Buterin, a Canadian developer of Russian origin, is the creator of Ethereum. He became interested in cryptocurrencies in 2011, publishing Bitcoin Magazine for a while. That was also when he took a deep dive into programming and thought about creating an advanced blockchain-powered platform. Let’s talk more about his life.

Vitalik Buterin is from Kolomna in the Moscow region, Russia. He was born on 31 January 1994. In 2001, he decided to migrate with his family to Canada. When Vitalik left Russia he was less than 7 years old. Vitalik’s formative period coincided with the spread of Internet technology, in which the hero of our article fell in love. As a child, Buterin was able to solve mathematical tasks much faster than his peers. Already at the age of 10 Buterin could program in C++. While programming Vitalik read a lot of books.  He also became proficient in 3 languages – Russian, English, Chinese, and several programming languages.

Introduction to cryptocurrencies

Vitalik’s first experience with cryptocurrencies was in 2011 when his father told him about bitcoin. After studying currency technology and principles, Vitalik realized how it could make a significant breakthrough in financial payments. From that moment on a new stage started in Vitalik’s life. In the same year, together with his partner Mihai Alisie, Vitalik created “Bitcoin Magazine,” an online resource that reported on blockchain technology and cryptocurrencies. He was the author and editor-in-chief of articles in his magazine. He stepped down as editor-in-chief in mid-2014. In addition to publishing articles in Bitcoin Magazine, Vitalik wrote articles for other resources devoted to cryptocurrencies. He was also an active participant in bitcoin forums. Soon Vitalik decided to quit the University of Waterloo, where he studied programming. During that time, he was getting 5 BTC ($3.5) per article. All this activity made Buterin famous after he started to travel around the world and meet crypto-enthusiasts.

Ethereum foundation

After his travels, Vitalik realized that the Bitcoin cryptocurrency was limited enough that he could not only improve but also expand it. So he created the Ethereum platform. After coming home, Buterin shared his ideas with other programming enthusiasts. Ethereum’s start-up took place in Tel Aviv, Israel. Vitalik found partners: Mihai Alisie, Enthony Di Iorio, Amir Chetrit and Charles Hoskinson. The majority of the software code for the platform was written by Gavin Wood, Joseph Lubin. Buterin and his team immersed themselves in the project. The first investor in the Ethereum blockchain platform was Peter Thiel. He is well known as a successful investor in Facebook and PayPal. He gave the developers $100,000 as a grant. The Ethereum project gradually evolved. Its team required even more money for maintenance and technical support. So Vitalik Buterin decided to raise funds for the development using crowdfunding. Eventually, they managed to raise $18 million. The official release of the Ethereum platform started on July 30, 2015. Society has repeatedly recognized Vitalik as one of the most influential individuals in the world, and he has received worldwide recognition.

However, Vitalik Buterin is also involved in charitable projects. He donates cryptocurrencies to many non-profit organizations. One of them is India COVID-Crypto Relief. About $1.14 billion has been transferred there in support to India in coronavirus control. In general, his donations to various foundations have exceeded $1.5 billion.


Nick Szabo & the bit gold

When Lambo

Nick Szabo & the bit gold

4 min reading

A lot has been said about Bitcoin. Discover the foundations that led to the emergence of Bitcoin.

Nick Szabo & the bitgold

Nick Szabo & the bit gold

Nick Szabo is one of the most recognizable and respected figures in the world of cryptocurrency. He is the inventor of smart contracts and Bit Gold, laying the foundation for the creation of Bitcoin. He defined smart contracts 14 years before Bitcoin. Also, Nick has a very wide range of interests: from the history of money, economics, and law to cryptography and blockchain technology.

It was Nick Szabo who, back at the end of the last century, made the groundwork for the first digital currency. Much of his work was the basis for the now popular Bitcoin. In 1998, Nick developed an algorithm for a decentralized digital currency called “digital gold,” legally named Bit Gold. The essence of the idea was very simple, but at the same time very interesting. First of all, the concept implied the transformation of bits and some digital information into some kind of equivalent, serving as an intermediary for the exchange.

Bit Gold combines various elements of cryptography and mining for decentralization. These elements include time-stamped blocks that are stored in a title registry and are generated using performance validation strings (PoW)Sabo proposed a decentralized PoW feature that can be stored, transmitted, and analyzed securely with minimal trust.

Bitcoin and bit-gold have a lot in common, especially the systems that are used to process transactions and protect the decentralized network. The structure of bit-gold involves a cryptographic puzzle that the user must solve using processing power. Each solution is then part of the following puzzle while creating a chain connecting the solution of the most recent puzzle to the result of the following, thereby validating blocks of transactions. This is a very similar process to block creation in bitcoin, where hash addresses are used as headers pointing to the next set of blocks.

The bit gold system proposed by Szabo is not interchangeable. This means that different amounts of Bit Gold must be combined to make a single transaction. 

Bit Gold operates in a decentralized and distributed system of trust between the individual nodes or participating computers that make up its network.

The entire ICO market, the boom in blockchain projects, the development of decentralized applications, and even the creation of cryptocurrency banks are possible thanks to smart contracts. “Smart contract” was first invented by Nick Szabo and 20 years later implemented in the Ethereum protocol. In 1996, Nick’s article “Smart Contracts: Building Blocks for Digital Free Markets” was published, in which he described the idea: how to achieve an agreement between strangers on the Internet. This is possible through self-executing code. The social contract evolves with society, today it has this form – in digital, which the digital age and the new industrial revolution require.

Moreover, Nick Szabo is present in the public space, he remains a rather mysterious personality. Many believe that Sabo is the founder of bitcoin, Satoshi Nakamoto, although he constantly refutes these rumors. He is not an anonymous fictional character. Mr. Sabo has given many public lectures, worked as a consultant for several projects, and regularly posts on Twitter where he shares his ideas. But nothing is known about his personal life.  

Szabo’s understanding of money, history, and cryptocurrency makes his writings an invaluable resource for those interested in blockchain technology. Bit Gold was the first potential decentralized cryptocurrency project. Nick Szabo conceived Bit Gold to address the inefficiencies of the traditional financial system. A decentralized financial network promises to eliminate dependence on financial institutions and remove barriers to cross-border transactions.


Laszlo Hanyecz & his pizzas

When Lambo

Laszlo Hanyecz & his pizzas

3 min reading

Interested to know about the Bitcoin Pizza guy story? Just read on.

Laszlo Hanyecz & His pizzas

Laszlo Hanyecz & his pizzas

On 22 May 2010, there was one of the well-known cryptocurrency transactions. It has become a day of celebration for the cryptocurrency community. What is the story behind it? You will find out in this article. 

Bitcoin Pizza Guy story

In 2010, Laszlo Hanyecz, a developer living in the US, decided to order a pizza with bitcoins. Hanyecz was trying to figure out how the cryptocurrency worked, and the idea of paying for food with it seemed “incredibly cool” to him. The Las Vegas programmer made his first purchase with bitcoins. It was two $25 pizzas from Papa John and he paid 10,000 BTC for them. He offered such a big price hoping someone would respond – there were hardly any transactions in 2010. Some bitcoin owners even gave the cryptocurrency a way to boost its popularity on the Internet.

On a forum post about bitcoins, Hanyecz wrote that he wanted to pay with cryptocurrency for a pizza. Anyone wishing to receive bitcoins could order a pizza or make one himself. The developer warned that he didn’t like fish and asked to add mushrooms, onions, tomatoes, pepperoni, or sausages. Cheese pizza is also suitable, Hanyecz wrote. Users reacted to the developer’s offer without enthusiasm. But four days later, he reported that he had found someone who agreed to the deal. 

The post was answered by Jeremy Sturdivant, who got his promised cryptocurrency in exchange for order from Papa John’s. Hanyecz got two pizzas and sent 10,000 bitcoins ($40-50 in current). 

In 2013, Hanyecz explained that he hadn’t thought about the bitcoin value and was just studying it. Bitcoins had almost no value at the time, in his opinion, and the idea of exchanging them for pizza seemed incredibly cool. No one realized how it would turn out. Over the last 24 hours, bitcoin has risen by $1,000. The day before, the cryptocurrency passed $10,000, and today it has risen to 32,550. Thus, the value of the pizza ordered by Hanech exceeded $100 million. At that time, 19-year-old Jeremy didn’t think he was getting potential multi-million dollars – the agreement seemed fair to him for both sides. 

Every year the bitcoin exchange rate rose and the Hanyecz and Sturdivant deal became more and more popular. From that time, 22 May has become a holiday for the cryptocurrency community, with the name ‘Bitcoin Pizza Day. On this day, companies and cryptocurrency owners remember Hanyecz on social media and celebrate the date with a pizza.

Eight years later, Hanyecz tries not to worry about this case. There are two reasons: one is that it is useless, and the other is that thinking about possible profits would drive him mad. Hanyecz mined bitcoins for a hobby and admitted to spending them all before the surge. Apart from pizza, there were other goods he paid for with cryptocurrency. 

However, Stardivent also didn’t manage to become a millionaire with the cryptocurrency. He put the bitcoins in his wallet and used them as payment for a trip to the US with his girlfriend. In 2018, Laszlo made the same transaction – he bought two pizzas again with bitcoins. But this time, the price was just 0.00649 bitcoin ($67).


When Lambo

"When Lambo"

3 min reading

Read till the end and get a deeper understanding of what the expression ‘when lambo’ means.

When Lambo

"When Lambo"

In every sphere, sooner or later there appears a peculiar expression denoting a symbol of success, which is shoved in the face of people from the outside, proving their superiority, or is used as a conventional “ruler” to find out who is richer. And it’s everywhere. Sheiks boast of yachts, oligarchs – of soccer clubs, owners of cigar firms in Latin America have popular penknives with ten thousand dollars and more. In the crypto world, the Lamborghini became a symbol of success. And unequivocally and without any alternative.

Recently, the cryptocurrency market has been quite tense: one can not only make millions of dollars on fluctuations of bitcoin, ether, and other tokens, but also lose no less. To understand what traders are talking about, you need to master “professional” slang. Cryptocurrency owners want fast money. There is such slang as “When Lambo.” 

What does it mean? By “When Lambo” they mean “When will you buy a Lamborghini?” – That is, get rich enough on bitcoin to afford to buy a luxury car. Its appearance is because cryptocurrency holders often get rich very quickly. Asking a question like this is asking if he or she has managed to make really good money from cryptocurrencies.  

It all started back in 2017 when the community discussed the purchase of bitcoins of the Lamborghini Huracan ($200,000) by programmer Peter Saddington, who bought bitcoins in 2011 for $3. Another unknown successful cryptocurrency maker bought a supercar for bitcoins to prove a feature of cryptocurrency.There has long been an online website When-Lambo, which allows you to estimate when cryptocurrency savings will allow you to buy a sports car. Also, the exchange Yobit launched in circulation currency Lambo Coin. But unfortunately, as of today it no longer exists. Later, it became a tradition to ask the question “When is a Lambo?” at each new coin presentation. Lamborghini memes flooded all the thematic communities. There is even a famous meme with an image of Vitalik Buterin, the creator of ethereum, as Jesus holding a red Lamborghini. For his part, Buterin threatened to leave the ethereum project if the industry is dominated by quick-enrichment schemes offered by cryptocurrency fans. 

At the same time, Lamborghini itself takes this attention from the cryptocurrency community more than favorably, as sales of supercars are growing thanks to it. Moreover, the management of the automaker admitted that Ethereum price fluctuations have had a noticeable effect on sales lately. Well, of course, the company’s dealers (at least some of them) began to accept the cryptocurrency. And the fastest car in the line – Lamborghini Aventador LP-750-4 SV Roadster – in the U.S. was sold only for bitcoins.


Scammers about cryptos

Scammers about cryptos

3 min reading

Are you eager to know how scammers operate in the crypto world? Read on.

Scammers about cryptos

Scammers about cryptos

The creation of bitcoins and other cryptocurrencies alongside the benefits trading in digital currencies have brought to some individuals, fraudsters have started devising ways by which they can extort money from individuals all in the name of investing in cryptocurrency. Many have had to be victims of these people and because it was probably their first time and anxiety pushed them to do this, however, they fell into the wrong hands. This article aims to reveal some scamming tricks as well as some key points to take note of before investing in any cryptocurrency. 

Common scams and how to avoid being a victim

Impostor websites are one of the ways by which scammers get to extort money from their victims. Before getting into any crypto platform there are many things to verify like the URL has the word ‘secure’ on the web browser’s address bar. Also, verify that the link has “HTTPS” and not “HTTP”. Sometimes you could click on the URL, but because you did not double-check, you find yourself on a completely different platform asking you to make payments elsewhere. The simplest way of avoiding this is by typing correctly the right URL into the browser and always ensuring to double-check. 

Secondly, fake mobile apps are a method scammers use to quickly deceive their users. Given that the internet has advanced over the years, having access to someone’s email address is not difficult. These scammers could send you an email that could be looking very similar to a cryptocurrency platform you may be aware of. To check the authenticity of the email, try getting in touch with a worker from the said company. Sometimes they publish outrageous amounts as profit, however, always double-check and be sure it is from the company’s original platform before investing.

Thirdly, another aspect could be a Ponzi scheme where fraudsters require users to invest in a cryptocurrency for a certain amount to be obtained after a certain period. Sometimes they get you to recruit others into the platform and that you get bonuses when you get others to join in the business. However, be careful because it is all a scam. Sometimes they could offer you a job for free knowing that people are in dire need of a job and end up collecting money from their victims. 

Sometimes, it is better to verify the reviews made by other investors in regards to the platform before diving into investing in that platform. However, there are also fake reviews as well as fake declarations about celebrity investors investing in some of these platforms. Watch out, lest you walk right into a scam. These internet fraudsters can set up and make you see or believe whatsoever, so it is always preferable to double-check before investing.

In summary, the field of digital currency mining is sometimes very difficult for aspiring investors to understand, making them more vulnerable towards scammers. Implementing good old common sense as well as other diligent methods could avoid falling victim. The points listed above do not mean that those are the only methods available. There are other fraudulent methods implemented by these scammers.


What is stacking?

What is staking?

4 min reading

Cryptocurrency and savings account. Interesting discovery!

What is stacking

What is stacking?

If you have an overview of what a savings account is and how it works, you should be able to understand what cryptocurrency staking is. Staking is the act of staking or blocking  funds in a cryptocurrency wallet for the sole purpose of helping keep the proof-of-stake blockchain system running. This activity is somewhat similar to crypto mining because it helps the network reach consensus and also rewards the users who participate in it. So you see this is a win-win situation. Before we get into the full staking process, we need to understand what Proof of Stake (PoS) is.

This is one of the two main ways to achieve consensus on the blockchain. Simply put, this is one of the ways to validate the blockchain. When a transaction is sent to the network, the nodes on the network validate the transaction to ensure that the person has enough tokens or that it will not damage the network. If this has been verified and approved, transactions are added to the blockchain. Proof of Stake originated during the proof of work algorithm, and it is seen as an energy-saving approach to reach consensus. Proof of Stake offers many benefits, to the extent that several major blockchains have switched to Proof of Stake.

What is the staking process?

It simply means that the nodes put their coins or tokens into the game to take part in the network by creating a block. The network’s reward is proportional to the size of the invested bet. However, some proof of stake allows anyone to take part in the process if a sufficient stake has been invested.

Staking against savings

Today, when a person wants to make a profit on his investment, he quickly thinks about a savings account, which is offered by most banks and which offers a regular interest rate on his savings.  However, depending on your country, these savings accounts cannot exceed 2% of actual savings, and they never exceed inflation rates in most countries. Banks offer this percentage because your savings are used to generate their own income. 

For example, they can lend or invest your money. For comparison, with staking, you can get up to 5% of the invested amount.

To start staking, you need to have free funds to buy coins and the ability to freeze them on a special deposit smart contract for an extended period of time.  For example, for staking DASH you need 1,000 coins, and for Ethereum 2.0, you will need at least 32 ETH. The minimum number of coins to participate is determined by each cryptocurrency individually. But the more coins you allocate for staking, the higher your chances of creating a new block in the network. Unlike mining, crypto-staking does not require large expenditures on equipment (ASICs). Once you have added coins to your wallet on the PoS algorithm, then you need to wait for the blocks to appear, on average it is 1-2 days. The PoS protocol may include different algorithms to select a node to add a block. Each cryptocurrency uses its own methods and rules, which, according to the developers, best support their network. People with different capital can participate in stacking. It is also necessary to pledge some amount of coins for collateral. It is because of these complications that today’s stacking through providers (who perform all technical actions for the user) is so popular and even more so is fixed stacking, for which you just need to keep purchased assets in the wallet of the exchange.

Plus, if we compare the time spent on each investment method, it is clear that staking is the fastest method. The cryptocurrency process usually takes a few seconds, while sometimes it takes several days to open a savings account with a bank, which of course can still be declined. These comparisons allow us to see that the rate of cryptocurrency is much simpler and more profitable.


Satoshi Nakomoto

Satoshi Nakomoto

5 min reading

Find out who Satoshi Nakamoto is and what role he played in Bitcoin creation.

Who is Satoshi Nakamoto

Who Is Satoshi Nakomoto?

Bitcoin is the most discussed cryptocurrency, but the details of its creation are still unknown. So who is behind the emergence of Bitcoin? It is high time to get the answer.

Satoshi Nakamoto is the pseudonym of one person or group of people who developed Bitcoin and created the first version of the software where it was implemented. For a very long time, attempts were made to reveal the real identity or group of people behind this name, but none of them were successful. Information about this person has been collected for eight years. But it was not possible to learn something from the biography of Nakamoto. No one knows what language Nakamoto speaks since childhood – Japanese or English, his age is unknown, etc. Then, in 2009, Nakamoto indicated the age-37 years. This means that the man who revolutionized the global financial system was born in 1972. According to another version published in the profile of the off-bank P2P fund, Nakamoto was born on April 5, 1975, in Japan.

Bitcoin Creation

First of all, the history of bitcoin began during the cryptographic research of the XX century. The logical conclusion of the research was the Nakamoto invention. He wrote a paper that focuses on the study of digital currency. The author called this work the “Bitcoin White Paper”.

Bitcoin originated in 2007 when Satoshi Nakamoto wrote the Bitcoin code. The following year, a white paper was already released through an online domain, Satoshi’s article describes how Bitcoin works using computer networks. Moreover, the goal was to eliminate third parties while executing digital transactions. In 2009, BTC was released for people worldwide, and it was the beginning of bitcoin history. The first bitcoin miner was Gal Finney who then mined ten Bitcoins and became one of the earliest Bitcoin users. Interesting to know that Wei Dai, Nick Szabo, and Gavin Andresen are also bitcoin-enthusiasts.

How much Bitcoin does Satoshi Nakamoto own?

It is said that the creator of Bitcoin  – Satoshi Nakamoto – owns 1,125,150 BTC (about $10.9 billion). This is the conclusion reached by analysts of the Whale Alert project, which is popular in the crypto community in their research. Whale Alert specialists built their analysis based on the analyst Sergio Dimian Lerner’s “extra nonce” method. According to Sergio Dimian Lerner, the operations of Satoshi Nakamoto can be distinguished from the general number by using a pattern that he called “Patoshi”. As a result, analysts concluded that 22,503 of the first 54,316 blocks were mined by the creator of Bitcoin. According to Whale Alert, Satoshi Nakamoto continued to mine BTC due to the risks associated with a possible 51% attack on the cryptocurrency network in the early periods of its development.

Why Satoshi Nakamoto chose anonymity 

The most important argument was that Satoshi decided not to “be in the public eye” as a precaution. Bitcoin technology has taken root in cyberpunk!  Cyberpunks are activists who advocate for the use of cryptography, as they promote social and political change. It is believed that Satoshi was wary of becoming vulnerable to attacks from all sides. He was quite far-sighted and foresaw it. Thus, he decided to remain anonymous for his benefit.

However, we can conclude that the identity of the creator may not be as significant as exploring the Bitcoin future. The blockchain is considered to have a huge potential in many areas of human activity. Critics argue that the growth potential can overload the system. Hence, this will not justify the reason for Bitcoin’s development, namely the decentralization of the currency.

In general, even without knowing who Satoshi Nakamoto is, we are happy to use the results of his technology, and even other Blockchain projects have taken their beginning from it.


Maturity of the crypto industry

Maturity of the crypto industry

4 min reading

Many people wonder if the crypto industry is mature? Let's find out in this article.

Is the crypto industry mature

Is the crypto industry mature?

In 2020, the world experienced one of the biggest crises in the last 50 years, but cryptocurrency market players have seen the increase and confirmed the prospects for crypto. Bitcoin once again reached record highs, so virtual money is only gaining momentum and preparing to become a significant part of the global economy at the level of ordinary currencies.


Based on the market capitalization of cryptocurrencies, leading cryptocurrencies have been identified – they currently account for 80% of the global cryptocurrency market. These include Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, Litecoin, and NEM. By now, the markets have also established key market infrastructure players, namely miners, full nodes, exchanges, wallets, and payment companies, that formed the foundation of the cryptocurrency market and now contribute to the development of the market of almost every cryptocurrency.

Crypto infrastructure

Each of the leading cryptocurrencies offers an analysis of main market indicators: market share and its change over the year, the degree of influence of cryptocurrency on the general market of cryptocurrencies, price dynamics, and their volatility. The infrastructure of the market of each cryptocurrency is assessed based on indicators of infrastructure reliability and its trading opportunities. The study showed high growth rates of bitcoin and a number of significant altcoins over the past year, which had a positive effect on the state of the general cryptocurrency market. Almost every cryptocurrency has shown positive trends. Bitcoin and Ethereum are financially risky in terms of volatility but still very attractive for millions of users. In addition, Ethereum has the most reliable infrastructure, and bitcoin is the most equipped with exchanges and wallets. Cardano currency showed the highest growth rates in a short period of time.

Why does the crypto industry grow?

In general, these phenomena are positive predictors for the cryptocurrency industry. The capitalization of the cryptocurrency market is growing steadily. Since the beginning of the first cryptocurrency, the global crypto market has grown significantly, and many participants are looking for benefits in this industry. The scope of their application ranges from fast and safe completion of payments to exchange operations, investments, the realization of smart contracts and the decentralized computing platform, and many other things. 

The scale of growth of the cryptocurrency industry does not go unnoticed by either government agencies or commercial or ordinary users. One of the pressing issues is to define what the cryptocurrency industry is in its entirety and how it fits into the existing framework of the world system.

Cryptocurrency markets are characterized by high volatility, so the choice of optimal risk management strategy is noticeably complicated, as, after all, the range of market risks is quite broad – from insignificant to catastrophic. This choice depends on many factors, including the ability to anticipate future changes in cryptocurrency prices on the market. Market participants must determine for themselves the level of risk they are willing to take a profit, whereas success in achieving this goal depends to a large extent on a management strategy.

The global cryptocurrency market has a great future. The latter offers high growth rates of bitcoin and a number of significant altcoins, the growing number of organizations and companies willing to use cryptocurrencies in their activities, and the growing popularity of cryptocurrencies among ordinary users. All these phenomena are positive predictors for the cryptocurrency industry.


Crypto value

Crypto value

4 min reading

Discover the reasons for the bitcoin value in only one click on this article.

Do cryptos have real value_

Do cryptos have real value?

Anyone who has been involved in cryptocurrency for long enough should know what the value of cryptocurrency is or why Bitcoin is valuable. These questions are not difficult to answer, as it is obvious that Bitcoin and other cryptocurrencies have value.

Cryptocurrency is believed to start a revolution in the financial sector and become a new type of money. Like any other currency or account unit, crypto-asset has value only because people believe it has value and it is profitable to exchange.

As you know, some money is backed by gold or other precious metals. Others are not supported by anything. Currencies have value because people use them for exchanging and making transactions.

The relationship between Bitcoin’s advantages and utility determines its worth. The value should not be confused with price, which is the monetary value of Bitcoin. Besides, many aspects of cryptocurrency contribute to its usefulness and create benefits that not only outweigh traditional fiat money but also support the ecosystem of the crypto world.

The Bitcoin blockchain, being a decentralized network, allows the use of technological innovation. The software model of the Bitcoin network, having open-source code, facilitates the additions and improvements creation based on the existing network. 

The importance of Bitcoin’s function as a payment system, as well as the ability to use a digital currency to store value and record data, is the reason why Bitcoin is gaining popularity around the world. So what is the real value of Bitcoin? Let’s analyze it in detail.

What is the value of Bitcoin?

There are several reasons why Bitcoin has value. First, it cannot be attached. When you put cash in the bank, no one tells you that you are handing over control of your money to the bank and the government. Second, Bitcoin can be sent anywhere in the world. It is similar to money transfers people use around the world without any borders. It takes 10 minutes to validate the transaction and deliver the money.

Third, Bitcoin is a deflationary currency. Against the background of monetary inflation, Bitcoin is a solid asset, compared with gold. No central bank or meddlesome economist can issue more Bitcoins than is presupposed by white paper. Scarcity is believed to be a crucial factor in determining currency worth, and Bitcoin is one of the world’s most scarce assets.

Nevertheless, some experts are adamant about the value of cryptocurrencies being zero, explaining it in the following way: the cryptocurrency does not produce anything and has no fundamental value. According to them, it’s just an entry in a distributed registry, and people are just hoping that the crypto will be bought in the future. It is also believed that Bitcoin is used in the illegal market for some criminal purposes compared with money smuggling years ago.

However, the value of digital money, or cryptocurrencies, is characterized by mathematical accuracy, automation, reliability, and error-free operation of the blockchain technology as a database that stores information about all transactions. The crypto-currency phenomenon is an innovation in the financial sector of the economy and is likely to deal with many challenges related to money.


Investing $100 in Bitcoin

Investing $100 in Bitcoin

5 min reading

Want to invest only $100 in Bitcoin but you are not sure if it’s possible to do this? It’s that time to find out the answer.

Can I invest only 100 in bitcoin_

Can you invest only $100 in Bitcoin?

Today, many newcomers on the crypto market have a lot of questions about the crypto industry. Many people don’t know how much money they should have to start trading cryptocurrency. There are doubts and fears around the amount of money to trade and the platform to start. But the most difficult task is not to lose the starting capital. All in all, is it possible to invest $100 in bitcoin and gain a profit? Let’s figure it out in this article.

Features of the crypto market

First of all, keep in mind that trading is a quite risky way of earning money, requiring special knowledge and skills. Trading crypto-currency can be dangerous for newbies without a special knowledge-based approach as crypto-assets are highly volatile. On the other hand, high fluctuations in the value of digital money not only allow users to quickly lose capital but also multiply it.

Spot market

Many financial experts advise newbies to begin their cryptocurrency trading experience on the spot market. This will provide you with the opportunity to become acquainted with technical analysis, test different trading strategies without exposing your funds to high risks. Furthermore, experts believe that you should invest the sum of money you are ready to lose and do not start with a lot of cash. At the same time, your investments should be enough to trade for a long time in order to be able to improve your trading skills and discover how to operate on the crypto-currency market. 

How to start?

It is believed that $100-200 is enough to explore the market’s functioning features. At the beginning of your trading experience, running after the big profits is a bad idea as you will just waste your energy and desire to trade which will probably shatter your psychological stability. At the initial stage, the main task should be to discover the approach to trading and a trading strategy, profitable enough to bring you vast amounts in the future. 

DCA strategy

Finding the perfect moment to buy bitcoin is literally impossible. Whatever price a trader buys an asset at, it is very likely to fall before entering a long-term growth phase. Therefore, some investors use an “averaging” strategy. This strategy works like this: the user divides his capital into several parts and buys bitcoins with them over time. This way, if the price of the asset falls, you can use this as an opportunity and buy more coins. In this case, the average purchase price of BTC will go down. The best option is to invest $10 in BTC every day. 

At the first successful experience, the average return should be analyzed as the average return obtained while working with a small deposit. Experts also recommend setting a goal that should be achieved in a year or a month. For example, if the yield is 10% per month, the deposit must be $10,000 to receive $1000. 

Theoretically, it would be perfect to trade with an income of 10%, as the income will grow depending on the deposit. But there are no perfect situations in trading crypto-currency, so you should stick to your chosen strategy for long distances.

As experts explain, one of the main crypto market advantages is that users do not need a large start-up capital to start with. In their opinion, a novice trader will only need 100 dollars to buy some crypto on the stock exchange and start trading using the chosen strategy. On the one hand, this amount is sufficient to buy crypto-currency, and on the other hand – not so large as to be afraid to lose it. People must realize that without experience, knowledge, and practice, they may not succeed.

The amount for cryptocurrency trading should be carefully considered to avoid risks without using leverage. Let’s give an example – $13,7 thousand is enough to trade Bitcoin “1 to 1”, or about $400 at the current exchange rate to buy ETH. The more funds in the account, the more comfortable and safer trading will be, and the fewer funds, the greater the amount of borrowing is needed to buy or sell digital assets.

However, trading can be profitable and effective for the experienced trader, having some knowledge in the field of financial analysis. But a newbie needs to learn how to control risks and avoid losses in order to reach a desirable income. Therefore, the initial amount of funds should be sufficient and correlate with the current value of the assets that the investor is going to trade.