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What is ethereum and why is the price dropping

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What Exactly Is Ethereum And Why Is Its Value Decreasing? We explain what you need to know.

But first a word of warning: Buying cryptocurrencies and stocks is a very risky business.

Investing is not a guaranteed way of making money. So make sure you know the risks and can afford to lose the money.

Cryptocurrencies are very volatile, so your money can go down as well as up in the blink of an eye – you can lose all of the money you have deposited.

While Ethereum and other cryptocurrencies have risen this year, they can easily fall – as we’ve seen.

In addition, some products and cryptocurrency services are very complex to understand. You should only invest in things that you understand.

RELATED: New Cryptocurrency Jumps 1000% in Value

There is also no guarantee that you will be able to convert cryptoassests back into cash as this may depend on the demand and supply in the existing market.

Fees and fees can also be higher than for regulated investment products.

We know that crypto firms can also overestimate returns or underestimate the risks. Danger.

Ethereum is trading at $ 2,573.92 at the time of writing on Friday morning, according to CoinmarketCap.

That is around 5% in the last 24 hours and around 3% in the last week.

Ethereum hit an all-time high of $ 4,362.95 on May 12, but the cryptocurrency has fallen around 40% since then.

What is ethereum

Ethereum is a cryptocurrency that was released in 2015. It is the second largest after Bitcoin.

In fact, some experts believe it has the potential to someday overtake Bitcoin as the dominant coin in the market.

It was founded by eight people, one of whom is 27-year-old cryptocurrency celebrity Vitalik Buterin.

He recently became the youngest crypto billionaire in the world when Ethereum rose in value.

Ethereum is also a general ledger technology – which, like Bitcoin, uses “blockchain” – that companies use to create new programs.

In a blockchain, encrypted data can be transmitted securely, so that duplication or falsification is almost impossible.

RELATED: Bitcoin Price Falls Amid Cryptocurrencies

This ledger is the basis of every cryptocurrency transaction.

Cryptocurrency enables people to digitally trade currency or assets outside of a government or bank.

Why is it going down?

Ethereum has appreciated in value over the course of this year.

It hit an all-time high on May 12th after a surge of interest in crypto that drove many digital coin prices soaring that year.

The surge to a record high of $ 4,362.95 meant that Ethereum had shot up more than 2,000% since last year.

The price of Ethereum is currently at $ 2,573.92 at the time of writing on Friday morning, according to CoinmarketCap.

Cryptocurrencies across the board crashed last week after China crackdown was announced and billionaire entrepreneur Elon Musk raised concerns about the environmental impact of Bitcoin mining.

The slump follows a staggering spike for Ethereum as investors bet that ether will be increasingly useful in a future decentralized financial system.

James Quinn, executive director of Q9 Capital, a private cryptocurrency asset manager in Hong Kong, said Ethereum’s surge over the year was also due to a number of other factors.

These include improvements to the Ethereum blockchain and an increasing shift towards “DeFi” or decentralized funding that refers to transactions outside of traditional banking for which the Ethereum blockchain is a critical platform.

This article originally appeared on The Sun and has been reproduced with permission.

Cryptocurrency

State of MI Issues Cryptocurrency Alert

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From the MI Attorney General’s office

Michigan Attorney General Dana Nessel, Michigan Department of Licensing and Regulatory Affairs (LARA) director Orlene Hawks, and Michigan Department of Insurance and Financial Services (DIFS) director Anita Fox issue a consumer warning to admit Michigan help protect yourself using (or investing in) cryptocurrency instead of a currency issued by the U.S. Treasury Department.

The warning explains the basics of digital currency, virtual currency and cryptocurrency as well as scams that exploit people who are unfamiliar with the use of digital currencies as a form of payment or investment.

According to a recent article from the Wall Street Journal, the value of the entire cryptocurrency market is more than $ 2 trillion, down from $ 260 billion a year ago.

For anyone interested in investing in cryptocurrency, here are some key tips to keep in mind:

  • Do your research before investing. Search online by company name as well as the name of the cryptocurrency; Add Review, Fraud, or Complaint to your search.
  • Never transfer or provide credit card or bank account information until you have verified the investment first.
  • Before using a digital payment app like Venmo, make sure you understand the terms and conditions for using and transferring different currencies through the app. Some may charge a fee if the user wants to transfer money to their bank.
  • Be careful when you see a celebrity advertisement. Scammers use popular names and faces to hold appeal to the curb.

“As the popularity of cryptocurrencies increases, so will the prevalence of fraud,” said Nessel. “Bad actors who engage in investment fraud are always looking for new ways to target unsuspecting investors. It is so important to do some research before investing in anything, including how and if you have the ability to transfer digital earnings to your bank. You can lose money instead of making it. ”

“As with any type of potential investment, if a promoter guarantees returns, if an opportunity sounds too good to be true or if you are pressured to act quickly, use extreme caution and be aware of the risk, that your investment could be lost, ”said Falke.

The Michigan Uniform Securities Act (MUSA), 2008 PA 551, regulates the securities industry in Michigan. The Securities & Audit Division – within LARA – oversees the registration of individuals and legal entities providing investment advice based in Michigan. If a consumer wishes to file a complaint against a company that has violated the MUSA, they can file a complaint using the complaint form available on the LARA website.

“Unfortunately, new innovations can sometimes lead to new scams, but good old-fashioned vigilance can help protect you, your money, and your personal information,” said Fox. “It pays to do your homework with reputable sources before initiating a referral or disclosing personal information. Be aware that an offer that seems too good to be true could be a scam.”

DIFS regulates Michigan’s insurance and financial services industries. Consumers who need help with insurance or financial services questions can contact DIFS Monday through Friday from 8 a.m. to 5 p.m. at 877-999-6442 or email them Complaint online. In addition to the tips in the warning, DIFS has this resource for consumers.

The North American Securities Administrators Association also has this helpful resource with additional information.

The Attorney General offers a library of resources that consumers can review anytime on a wide variety of topics.

Your connection to consumer protection is just a click or phone call away.Consumer complaints can be filed online at the Attorney General’s website, or by calling 877-765-8388.

Photo by Executium on Unsplash

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What is Ethereum And Should You Invest in This Cryptocurrency?

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We want to help you make more informed decisions. Some links on this page – clearly marked – may lead you to an affiliate website and may result in us earning a referral commission. For more information, see How We Make Money.

Ethereum is the second largest cryptocurrency by volume and the most widely used blockchain in the world, but its many uses can create a much bigger learning curve than Bitcoin for new investors.

“Ethereum serves two purposes. First, it functions as money and can be a store of value,” said Bill Noble, senior technical analyst at Token Metrics, a cryptocurrency analysis platform. “But Ethereum is also like a freeway for decentralized finance.”

Instead of creating value as “digital gold” like Bitcoin, Ethereum is a software platform that runs on a blockchain. Users can interact with the platform through Ether, the Ethereum-linked cryptocurrency – or buy and store it as a store of value. Ethereum is widely used by developers, but there are also people who invest in the crypto so that its potential is worth more over time.

What is ethereum

Ethereum was invented in 2015 by programmer Vitalki Buterin after Bitcoin.

“He realized that bitcoin was like a calculator, designed to do one thing, and it does it really well, but you can’t do anything else with it,” said Ollie Leech, learning editor at Coindesk, a cryptocurrency news agency.

So Buterin created Ethereum, a blockchain network with an associated cryptocurrency called Ether (ETH) with the potential to do far more.

While you can buy and trade Ethereum as an investment like Bitcoin, it is also a software platform that developers can use to create new applications – often cryptocurrency or otherwise designed to make buying, selling, and using cryptocurrencies smoother. Like the ones on your phone, these apps can be anything from rental apps to payment platforms.

Think of Ethereum like a smartphone, says Leech. Developers can build apps on smartphones, much like they can build apps on Ethereum. While cell phone apps have more universal applicability these days, Ethereum apps are more aimed at crypto users. Using the example of a borrowing app, a developer could create the app that other crypto users in turn could use to borrow and borrow.

“Everything is powered by this idea of ​​smart contracts,” he says. A smart contract is a program that runs autonomously on the Ethereum blockchain, says Leech. Smart contracts fulfill all functions that a third party would normally have to perform.

For example, people can complete direct transactions over the network. Peer-to-peer lending is becoming increasingly popular on Ethereum right now, says Leech. A credit app developed on the Ethereum network enables individuals to lend money to one another without involving a bank.

The smart contracts that power these apps are basically just algorithms that perform a certain function when certain conditions are met. In the case of peer-to-peer credit, the contract triggers the outcome (the lending of the money) if the collateral is deposited in the correct wallet or in the correct account. Possible benefits of using a smart contract over a traditional lender include speed of execution, the absence of human error or bias, and lower fees.

Other uses of Ethereum

Like other popular cryptos, Ethereum was built on the principles of decentralized funding as the products and services that live on Ethereum are available to anyone with access to the internet.

The smart contracts allow developers to create decentralized applications that can serve various purposes. These applications include financial instruments like cryptocurrency exchanges, decentralized lending platforms, and data services like Matcha, which scans multiple cryptocurrency exchanges for the best prices. But there are also categories of dapps for things like buying and selling digital artwork, games, and developer technology.

The open source concept of Ethereum enables developers to build completely new cryptocurrencies on it, such as Chainlink and XRP, which are known as tokens. Some of these assets come in the form of various cryptocurrencies that you may have heard of, such as Tether (USDT), Uniswap (UNI), or USD Coin (USDC).

But cryptocurrencies aren’t the only digital assets that can be created on Ethereum – recently, NFTs, or non-fungible tokens, are another example of something created using Ethereum. These digital tokens are operated by Ethereum and are used to represent ownership of unique items, according to the Ethereum website.

Ethereum vs. Ether

Developers have to pay a fee to the Ethereum network to create new tokens or decentralized apps on the network. You make these payments in Ether, the home currency of Ethereum. According to Noble, this fee is also known as “gas”.

Gas is the price to use the system, such as taking the subway to take the train. Ether is the cash you would use to buy your Metrocard. Think of it “like tolls that you have to pay to get things done and trade on Ethereum,” says Noble. Different promotions are worth different amounts of Ether, and the fees get higher as more people join the network.

These gas prices, and all the uses developers pay to research them, help explain the rise in the value of ether over the years. As more and more developers try to develop things on Ethereum, they have to buy more ether to pay gas fees, which in turn increases the price of ether. Ethereum investors are betting on the continued use of the most widely used blockchain and the potential of their applications for the future.

Gas fees are also one of the biggest barriers to Ethereum’s growth potential, according to Noble. But an ongoing update to the network, Ethereum 2.0, tries to address the problem. The update won’t have any impact on investors or Dapp users, it will only affect developers, according to the Ethereum site.

If you want to invest in Ethereum, buy Ether. An ether token is currently trading for around $ 2,700. Similar to how you would invest in Bitcoin, investing in Ethereum means buying and holding the token (ether) in the hopes that it will increase in value over time.

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Forex cryptocurrency: How to choose what to trade

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Trading cryptocurrencies in Africa is becoming increasingly popular. This is due to a tech-savvy population who were already quick to adopt digital payments via mobile devices. However, forex trading has also seen increased growth in the country with an estimated 1.3 million traders in Africa. With this growth, there are plenty of potential traders who want to start trading but are unsure of which currency to choose in this complex environment.

This is after INFINOX Regional Director, Danny Mawas, who says it is important to do careful analysis before getting into trading. “Identify your personal goals, resources, and risk tolerance before choosing your risk and trade management strategies. It is also important to spend time researching and analyzing both markets before trading. ”

First, it is important to know the differences between the two as they are enormous and can be compared to the proverbial apples and oranges. “Cryptocurrency trading is trading in digital or virtual currencies that are secured by cryptography, the best-known example is Bitcoin. Trading takes place on relatively new decentralized platforms using blockchain technology, a system that makes it almost impossible to change, hack or cheat. “

“Forex is foreign exchange, or FX, and it takes place in the largest, most liquid, and established global markets. Every day, volumes of up to 6.6 trillion US dollars are traded in 150 state-supported national currencies, ”explains Mawas.

When it comes to choosing a trade, Mawas points out that it is important to consider the liquidity of the forex market versus the crypto market. “For example, when forex traders buy and sell these high volumes on a daily basis, it creates a liquid market that offers opportunities for all types of traders. In addition, thanks to their volatility, forex instruments also offer leverage as well as many trading opportunities, which makes trading an easy instrument. “

“The foreign exchange market allows individuals, large institutions, governments, retailers and others to participate,” he says. “Forex trading is essentially less risky, more protected, more regulated, and more stable. It enables investors to react to market movements and is influenced by political or economic factors that cause investors to enter or exit the market accordingly. ”

“However, trading crypto can be riskier as there is less information and fewer case studies to predict performance,” adds Mawas. “There are less established markets and while it may promise higher returns, there is no guarantee of profit, but a long-term option for potential profit.”

Mawas explains that for those looking to start trading Forex, there are proven strategies that beginners can consider. “One viable way to learn and fuel your trading journey is through online community apps like IX Social, where traders can share knowledge, trades and experiences with like-minded traders. It puts users in the spotlight with the latest news, community trending topics, top trades of the day and the latest prices in one place.

“The easy-to-use functionality, coupled with an auto-copy feature that allows traders to automatically copy the top traders to get the same results, makes it the ideal platform for beginners to learn and grow,” says he.

Mawas offers his advice, saying that it is important that you not let your emotions guide you no matter what forex traders choose to trade. “Trading based on an emotional impulse often results in traders buying and selling at inopportune times.”

“While there are great advantages to trading, it is important for traders to follow a strategy and get started easily. This will ensure their longevity and in-game prosperity, ”concludes Mawas.

Distributed by APO Group on behalf of INFINOX Capital.

Contact details on behalf of INFINOX:
Mondli Hadebe
mondli@eclipsepr.co.za
Tel: +2721 023 0440
Cell phone: +27 78 640 6457

over INFINOX:
INFINOX is an award-winning and market-leading online trading platform.

Founded in 2009 with the vision of delivering a customer-centric trading experience, INFINOX offers its customers first-class service in various asset classes. We empower and help investors gain access to the markets so they can trade forex, stocks, indices, commodities and futures; with our fast, efficient and reliable trading technology.

We strive to provide great service to our customers and we have a dedicated multilingual support team available 24 hours a day, 5 days a week. Whether you are a beginner or an experienced trader, INFINOX provides the relevant tools to get you started and improve your trading strategies. We offer instant funding options and the ability to withdraw your money quickly.

INFINOX Capital Ltd. SA is an authorized financial services provider and is registered by the Financial Services Conduct Authority at. regulated FSP No. 50506 (INFINOX Capital Ltd SA acts as an intermediary for INFINOX Capital authorized and regulated by the Bahamas Securities Commission).

INFINOX Capital is a registered trade name of IX Capital Group Limited, authorized and regulated by the Securities Commission of The Bahamas (‘the SCB‘) under registration number BE F-188.

INFINOX Limited is approved and regulated by the Financial Services Commission as an investment dealer (FSC) from Mauritius under the license number GB20025832.

INFINOX is a brand of INFINOX Capital Ltd, a company incorporated in the United Kingdom under company number 06854853. INFINOX Capital Ltd is authorized and regulated by the Financial Conduct Authority under registration number 501057.

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Danny Mawas, Regional Director at Infinox
INFINOX Capital

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