Tag Archives: social trading digital currency

The Geek Goes Crypto Currency

Social Trading Crypto Currencies

After many years of skepticism and nay-saying I have come about face, turned to the “darkside” if you will, and embraced crypto currencies. I don’t know quite what it is specifically but between the growing public interest, tradability and what I have been learning about block chain technology and crypto currencies has piqued my curiosity. That and the possibility that a cheaply purchased Ethereum or Litecoin could rise in value to rival even Bitcoin.

What is a crypto currency? It is a means of transferring value across the Internet through a system of digital “dollars”. The most common of these is Bitcoin but there are many others and new ones being developed all the time. What gives the coins value is the block chain itself. The block chain is a digital ledger that is shared across the Internet with whomever wishes to see it. This is usually the crypto currency miners and exchanges where they are traded but could be you or me or anybody with a desire to do so. The ledger means that each and every digital coin, down to the last decimal place being tracked, can be accounted for down to the time it was mined.

It is this accountability that makes them valuable, they can’t be counterfeited and they can’t be tampered with. Because the ledger exists on the Internet and maintained by a network of miners and exchanges all transactions can be verified by multiple sources. The word block chain comes from the fact that entries in the log, digital currency transactions, are entered in blocks. Each block contains a maximum number of transactions and are delivered according to a schedule that varies from coin to coin.

Producing the blocks and sharing them across the network is called mining, miners who do this are rewarded with new units of the coin they are mining. Typically, each coin has a maximum number of units that can be mined so there is a limit to the number that will ultimately be produced whether it is Bitcoin, Litecoin or Ethereum. To extend the amount of time it will take to mine all the coins, and to help support their value, the amount of time and/or the amount of coins that can be mined in a given time are limited and adjusted periodically as needed.

My interest is in block chains in general but when it comes to my purchases I am focusing on Ethereum. I like the platform as an expansion on what Bitcoin has done and it is still cheap around $300 (for now).

Where Do I Buy Crypto Currencies?

Well, you buy them at an exchange and there are very many of them. The one I have chosen to use for myself is called CEX.IO. I chose it because is widely used, gets a high approval rating, is legal to use in most US states, allows you to buy and sell cryptos and even trade them with forex style spot positions with leverage.

Buy Bitcoin at CEX.IO

Does this mean I am out of the binary options business? Hell no! It just means I am branching out. In terms of binary options, crypto currencies and block chains could be the wave of the future. Traders and brokers can focus on digital currencies because they are active and outside the scope of regulators. This is not to say that unregulated brokers are the wave of the future only that regulated brokers having a hard time with regulators blocking them from using stock, currency or index tickers could turn to the crypto world for tickers and pairs outside the purview of said regulators.

NADEX does not have crypto binary options but maybe they soon will. There are lots of brokers out there now who do. 24Option has given up on binary but they have great CFD and forex trading based on digital currency.