How to get started mining for Cryptocurrency

How to get started Mining

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Part 1: Do I have to know what I’m doing?

This is the first of a three part blog series designed to help anyone with Crypto mining ambitions to get their first rig set up and underway. By way of general introduction, let me first explain that your ‘rig’ is what all Crypto miners refer to their mining computer set-up as, and by the end of these three blogs you’ll know everything you need to go out and buy / build your own.

While Cryptocurrency mining may at first seem daunting, and I’m sure most people think that Crypto miners must have an absurdly high level of IT and computer skills, but the truth is that it’s far simpler to become a Crypto miner and it is actually absurdly simple to build your mining PC to the required specs.

So the first thing we need to decide together is which of the many Cryptocurrencies out there are we going to be mining for? As an aside here, by the way, the term ‘mining’ isn’t an entirely accurate one. Really, what Crypto miners are doing is calculating the computations that protect the integrity and security of the distributed blockchain ledger that tracks each transaction. In exchange for completing those calculations, the miners are all paid a share of the currency transaction they’ve just verified.

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Back to your first decision: which currency are you going to mine? Bitcoin is the most popular, but is actually the least profitable to mine due to the high cost of the equipment you’ll require to mine it. Bitcoin is now so competitive for mining shares (as in, there’s so many people doing it now) that special purpose computers built with Application Specific Integrated Circuits (ASICs) are required as the norm. A general, purpose built computer is just too slow to earn you anything in the Bitcoin mining world.

Image result for crypto part 1 The second most popular and well-known Cryptocurrency is Ethereum, and it turns out that Ethereum is actually also really well known for being insanely easy to mine and really profitable too….so for me, that’s ideal for us to use in this series of set-up scenarios.

Next month’s two blogs will focus firstly on the equipment needed to set up our first ever Ethereum mining rig, and then finally on getting underway and actually beginning our mining adventure. So until then, enjoy the summer heat, and check back for parts 2 and 3 next month!

_Blog post by Bob Pattni_

 

Cryptocurrency stability

In times of turmoil, look to Cryptocurrency for stability

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With massive economic uncertainty everywhere you look due to Brexit, the US Trade Wars, and the deterioration of the EU in general, where should you invest your money to enjoy a little more stability?

If you look at the UK financial markets right now, there’s no really good savings investment opportunities. No matter what you choose, the % return on investment is pretty dire. Property investment for leasehold seems to still be a pretty safe bet, but even that market is struggling to remain buoyant in these uncertain times.

So is investing in Cryptocurrency really a truly safe bet?

Well firstly, it’s important to understand that as with all investment opportunities – the value of your investment may of course go down as well as up. So if this is your first time investing in Cryptocurrency, be sure that you’re following the safe rules of investing in general and only invest a small proportion of your overall wealth, and don’t invest more than you can afford to live without should the worst happen and the Crypto markets take an unexpected dive.

The easiest way to get involved is by signing up to a Cryptocurrency wallet service Online – a quick Google search will point you in the right direction.

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Most Cryptocurrency wallet services now offer desktop and mobile services, meaning you can manage your account anywhere and at any time of the day. You can sign up to these as you would sign up to any website. Enter your name and email address and set a password to get started, choose a user name and password (for added security you should ensure that this password is totally different to any others so that it could never be cracked).

After that, it’s time to connect your bank account, debit card or credit card. Use two-factor authentication to secure your account, but don’t use your phone number or mobile number – it’s best to set up a new email account, separate to your main email, so you have a totally separate email account for all your Crypto dealings and no-one can then use that random email address for anything else of yours. According to security researchers, criminals only need to know your name and number in order to steal from your Crypto wallet so make sure you follow the above rules and stay safe. (NB. Some places will also let you use Google Authenticator – a quick Google search will tell you how if you don’t already know).

Once you’ve done this, you can start investing in Crypto. Whichever service you decide to use, you’ll be able to access a graph showing how your chosen currency’s value has changed over time.

From there on in, you’re likely to become hooked and you’ve taken your first important steps to becoming a genuine Crypto trader….enjoy the ride!

_Blog post by Bob Pattni_

 

Crypto ‘Whales’ controlling Bitcoin

Blog And Thoughts By Bob Pattni, Crypto-Guide

What is a Bitcoin Whale? A whale, in Crypto terms, is a big money Bitcoin player who can manipulate the Crypto market by selling their holdings in large – sometimes staggeringly so – numbers.

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Last year, someone moved almost 25,000 Bitcoin (worth about $159 million in US Dollars at the time), to one of the main Cryptocurrency online exchanges. The news soon rippled through online forums, with Bitcoin traders arguing amongst themselves about whether it meant the owner was about to sell the digital currency and whether they should follow suit. This uncertainty caused massive price fluctuations in the market – and it wasn’t the first time.

Bitcoin whales are fast becoming the main cause of concern for investors. They can send prices plummeting by selling even a portion of their holdings. And those sales are more probable now that the Cryptocurrency is consistently high and continuing to gain recognition in the public consciousness.

About 40 percent of Bitcoin is held by perhaps 1,600 users, with most online forums estimating these users know each other and are groups who collaborated to invest in Bitcoin in the very early days of the currency, and in some cases right from the very inception of this new form of money. It’s considered highly likely that these whales actually co-ordinate their moves – or preview them to a select few – and they can also therefore potentially band together to tank or prop up the market as they choose to dictate.

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Regulators have not yet caught up with Cryptocurrency trading, so many of the rules are still murky or in point of fact non-existent. This ‘grey area’ allows the Bitcoin whales to dictate and control the market to their own ends – which is, obviously, to turn themselves the maximum amount of profit possible.

When you see a huge drop in a coins price, people will sometimes blame it on whales that are dumping on the market. Typically when this occurs more inexperienced investors will start panic selling so they can buy back into the coin at a cheaper price. However, the best strategy is likely to be to hold on to everything and in fact to increase your holdings by buying additional coins at the lower price so that when the price rises again, as it inevitably will, you’ll be in a better position overall.

C:\Users\Aaron\AppData\Local\Microsoft\Windows\INetCache\Content.Word\cryptowhale1.png Whales will use often use this tactic, calling it ‘rinse and repeat’, and this method can be extremely profitable to the whale if timed right. Once the whale starts selling off lower than the market rate, this causes people to start panic selling. Then the whale will watch and re-buy back in when the price of the coin reaches a new low. They just keep on repeating this process over time, thereby accumulating more wealth, more coins, and more control over that coin.

As well as the early Bitcoin investors, whales can also be risk-loving high-net-worth individuals who have recently discovered the Cryptocurrency market as a new arena for money making; or even major institutional investors such as hedge funds and proprietary trading desks that are placing large bets on where the market will move next. There’s a lot of money in Cryptocurrency and so there’s a lot of people now banking on it creating them a massive amount of wealth.

In the early days of the currency, Bitcoin whales traded on only the largest exchanges, and some still do use only these exclusively. However, as the Crypto market has developed and gained recognition, more and more over-the-counter brokers have launched to service large (and small) Bitcoin investors who are trading digital currencies to be able to access more liquidity than the rigid, old-fashioned exchanges can provide.

So if you do trade in Crypto, keep an eye out for the obvious signs of whale activity. If there’s a large, sudden change in the value of a particular Cryptocurrency, that does not seem to relate to any major project announcement or market-moving news then there’s pretty obviously some whale activity behind the scenes. The same goes for a seemingly inexplicable increase in volatility or price spikes in a specific Cryptocoin as it could well mean that a whale has begun to manipulate the market.

 

How to avoid the most common Cryptocurrency mistakes

How to avoid the most common Cryptocurrency mistakes


There’s quite a lot of rookie mistakes that you can learn to avoid when beginning your Cryptocurrency trading career. The most common traps, and what you should do to prevent yourself from falling into them, are listed below for your education!

  1. Image result for pump and dump cryptoAvoid Pump & Dumps.

This is mostly perpetuated on lesser known coins with low volumes by a few individuals with deep pockets (whales) who are capable of ensuring wide swings on these lesser known cryptos in order to cash in on a windfall when they get the price to rise exponentially. It’s great to see that graph of your crypto moving upwards quickly but beware of large rises in short timescales, as you could be seeing a few individuals deliberately misleading the you and the marketplace. When the whales then dump their purchases, that graph is going to go tumbling down so don’t be seduced by sudden large price rises, particularly in the lesser known coins.

  1. Avoid Setting the Wrong Price.

It is easy to misread or mistype a decimal point or number of zeros. You could set your sell order ridiculously low because you misread the market, or made a typo, and by the time you realize the mistake another trader sees opportunity and quickly snaps up your trade. For example, you could have placed a sell order at 0.0005 BTC instead of 0.005 BTC and that one extra zero can cost you significant funds whiles another trader smiles all the way to his or her wallet. Try to double check your “sell” and “buy” orders every single time before a trade order is placed.

  1. Avoid Sending the Wrong Coin to the Wrong Exchange or Wallet Address.

There have been instances when people have mistakenly sent the wrong coins to the wrong wallet address and have lost funds. For instance, it is possible to send Bitcoin to say a Bitcoin Cash or Bitcoin Gold wallet. It can also happen that Ethereum could be unintentionally sent to an Ethereum Classic wallet or some other digital currency with similar names. This mistake could mean that you have lost your coins forever, as if you send coins to the wrong wallet you are highly unlikely to be able to get them returned to you.

  1. Avoid Markets with Little or Low Liquidity. 

It is important to recognise those crypto-coins with relatively high volumes and stick to buying and trading these. For a coin to appreciate in value, there must be a crowd of potential buyers to drive up demand. If you buy lesser known coins, you might get your capital locked up unless you’re prepared to wait years for the coin to gradually increase in recognition and value.

  1. Play the Long Game.

As a newcomer to crypto-trading, you buy a coin and the next day you realize it has appreciated northwards of 20% in value, meaning you might want to quickly cash out and take profit. But then again, if you hold on a bit, you could see that coin witness higher and more astronomical increase in value over the next couple of months to years. Several coins on the Cryptocurrency markets have seen value growth in the thousands of % over the last couple of years. Crypto trading is the right market for people with patience and the vision to have long term gains. This is not a short term game.

  1. Control your Emotions.

One sure way to losing money is trading with emotions. You may be angry that you missed out on buying a coin before it went up, or maybe you lost a trade bet on a coin so you intend to pile up the rest of your entire funds into another with the hope of making windfall profit…..this should never be a trading strategy. Emotions in crypto-trading should be avoided as much as possible. Detaching emotions from trade transactions gives a better and more objective perspective which is an important tool to making profit.

  1. Beware of Overconfidence.

Confidence is good, but being overly confident and throwing caution to the wind is something to avoid. Overconfidence could lead to one ignoring market signals and just placing trades based on hunches. This could work sometimes, but there is a high probability this will likely lead to loss of funds. It is important to perpetually study and read wide since the Cryptocurrency world is a fast moving and changing one which could leave one rusty if continuous education and research are left to chance.

Above all, enjoy yourself! The challenge of navigating the tricky Crypto waters can be an extremely rewarding one, and as it’s going to be taking up increasing amounts of your day you may as well enjoy what you’re doing!

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Blog by Bob Pattni

Up and Coming Crypto Coins

Upcoming Crypto Coins

Bitcoin is the first decentralised digital currency, as the system works without a central bank or single administrator. Transactions take place between users directly, without an intermediary.

However, there are several other crypto coins emerging in the digital marketplace. So, which coins are becoming worthy of future consideration for investors? Here are some of the newer online currencies to explore in the up and coming crypto currency landscape:

Ethereum is an open-source computing platform and operating system featuring smart contract functionality. Ether is a crypto currency generated by the Ethereum platform. Ether can be used to compensate participant mining nodes for computations performed.

Tezos is decentralised and governs a true digital commonwealth to facilitate formal verification which boosts the security of smart contracts. The Tezos block-chain claims it will underpin secure, decentralised applications, and smart contracts, while avoiding some of the political and technological problems which earlier efforts such as Bitcoin and Ethereum have faced. However, the Swiss Tezos Foundation is currently being sued in the United States by Bitcoin investors. The Tezos Foundation is under investigation over allegations of mismanagement and false marketing.

Litecoin is a peer-to-peer crypto currency, and is based on an open source cryptographic protocol, which is not managed by any central authority. This crypto coin is nearly identical to Bitcoin.

 

Monero is an open-source crypto currency that focuses on privacy and decentralisation. It uses a public ledger to record transactions while new units are created through a process called mining. Monero aims to improve crypto currency by obscuring sender, recipient, and amounts on every transaction made, as well as providing equal opportunity in the mining process.

Pascal Coin is the first crypto coin designed to work without a historical operations requirement, and yet is still able to control double spending, or check balance. Unlike other crypto currencies, the block-chain can be deleted at any time, and will continue working perfectly. It uses a “SafeBox hash”, modified each time a new block is generated. Pascal Coin is being marketed as crypto currency for humans, not only for geeks! It is very similar to a bank, using easy to remember accounts instead of cryptographic addresses, and requires having a personal account to receive and send coins.

There are a multitude of options out there in the vast and changing world of online crypto currencies. So, how does one get started? Going to a local bank won’t help. A bank account logged into and ready as needed to register on crypto currency exchange web sites, such as https://www.kraken.com/, is a good option. There a multitude of web sites to get started and there are even more crypto currencies to invest in.

In the future, crypto currency will likely challenge the status quo of traditional banks as crypto coins increasing flood the digital marketplace.

For more information, visit Bob Pattni.

Where Can You Spend Crypto In The UK

The arrival of cryptocurrencies sparked mixed reactions among many people. A bigger percentage of people were sceptical about it but with time, cryptocurrencies such as Bitcoin managed to win the hearts of many investors and traders. Bitcoin was the first crypto to ever be used. However, after its release, plenty of other cryptos emerged. Despite a lot of criticism on the pioneering cryptos, the emergence of others clearly showed the determination and the brighter future cryptos would have in the economy. Presently, plenty of people are in the crypto business and this has attracted the major retailers and other online businesses. Cryptocurrencies can now be accepted as a means of payment across the UK, just like the normal currency.

Who Accepts Cryptocurrencies.

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In the UK, there are plenty of well-known business that are accepting crypto transactions. One of the major industries that are actively involved in crypto exchanges is the gambling industry. There are a lot of online casinos where players are able to bet using cryptocurrencies. An even better part of it is that there are emerging online casinos that strictly use cryptocurrencies. This offers a chance for cryptocurrency users to spend their cryptos for business and leisure purposes.

Gambling aside, some retailers have realised the potential that cryptocurrencies come with. For this reason, they too have embraced it and anyone with a cryptocurrency can trade with them. You might even be surprised, the first official Bitcoin valuation, which occurred in 2010, is considered to have been a transaction that led to two pizzas being traded for 10,000 Bitcoins. This transaction didn’t mean that Bitcoin was meant for buying pizza alone. Today, Bitcoin, Etherium, Ripple and Litecoin among other cryptocurrencies can be used to purchase various goods and services online. Web hosting services, clothing and accessories sellers, Charity contributions, Electronics sellers and Marketplaces among other many areas provide a convenient way to spend cryptocurrencies. Some of the retailers that accept cryptos include 5wire.co.uk, AntMiners.co.uk and AFK Apparel.

The Cryptocurrency Market.

The biggest place where you can spend crypto is in the cryptocurrency market. The cryptocurrency market is constantly getting popular, and this provides a lot of people with endless profit opportunities. The profits arise majorly from trading cryptos.

Image result for cryptocurrency Most people might be worried when they first encounter cryptocurrencies. Apart from being able or knowing where to spend cryptos, most people do not even know how to acquire the currencies. However, it’s easy to buy cryptocurrencies and once acquired, one can invest in the crypto market. Investing in crypto markets is one of the best ways to spend cryptocurrencies. Whether the cryptocurrencies prices are falling or rising, one can still be able to profit. Previous experience is usually not necessary to accomplish winning cryptocurrencies trades.

Bob Pattni

Cryptocurrency, will it fail or is it here to stay?

Will Cryptocurrency last, or will the recent backlash by mainstream media and a few big names have a long-lasting effect and be the beginning of the end for the new wave that is Cryptocurrency?

Cryptocurrency and its rise can be said to be a new type of revolution. And as we know from history, revolutions last. They change things, and nothing’s the same afterwards. That’s cryptocurrency.

It’s only feared by those who don’t understand its flexibility, its use and its purpose. And I suppose that’s why as a currency it’s mostly been embraced by savvy entrepreneur and tech types: open minded, able to see possibilities, not afraid of change. Imagine being able to buy or sell a house or car without any middle-man. Imagine making a crypto transfer for business goods to any country in the world, and the transfer of funds is free, or close to free; you can mutually agree what cryptocurrency to deal in, and almost as soon as you press the button, you’ve done the deal.

Let’s put it another way – you’re buying your shopping using a cryptocurrency that you know is going up in value as you shop, and that your shopping is actually helping it to gain value. When you get back home and check your cryptowallet, you find that your cryptocurrency value is worth more than it was before you spent some of it on your shopping: so you’ll basically be eating for free that week!

All of this, and far more is happening right now. It is mainly happening to clever people. To people with a level of focus that allows them to learn some new things that are not really that difficult to learn. It is happening to those who would rather do something than watch reality TV.

It is happening, currently, to just a fraction of the population, but word is spreading, and the revolution is gaining force.

Some key facts you may not have known:

  1. There are already hundreds of millions of people stocking and using cryptocurrencies;
  2. The distributed nature of blockchain technology  makes government control next to impossible – you can shut down one exchange or platform in your jurisdiction, and another two will spring up in its place in areas where you have no jurisdiction, and those holding or wanting to buy or exchange cryptocurrency will just go elsewhere, even if they have to do it through proxy servers to remain anonymous.
  3. The anonymity of blockchain transactions means that your private keys are yours alone, and unless you give them up, nobody, from a central bank to a government agency can touch your coins.
  4. People like having and using cryptocurrencies! They like looking in their wallets and seeing the value of their investments rising. They like that their profits cannot be monitored. When you buy coins from all over the world, certified by anonymous blockchain miners who could be anywhere, nobody can track your transactions.

So Cryptocurrency is more than just a flash in the pan. It’s not just the latest dotcom bubble that’s going to burst. It’s here to stay because the very people who use it most are the type of people who make things to last. We’re inventing ourselves a new civilisation here, and it’s not about to stop any time soon.

How to Invest in Cryptocurrency

 

So you are looking to invest in Cryptocurrency? First things first, you will need your bank account logged into and ready as you need to register on Cryptocurrency exchange websites in order to buy, you cant go to the local bank and buy any.

There a multitude of websites to get you started and there are even more Cryptocurrencies to invest in but we have to start somewhere so I will be explaining how to buy Ethereum from Kraken.

Step 1

Make your way to Kraken which is where you will buy the Ethereum from.

Step 2

Register an account with Kraken

Register an account with kraken

Register an account with kraken

Step 3

Verify the email that was sent to you, if you don’t do this then you cant use the account effectively.

Step 4

Click on the Funding tab, then the currency you wish to deposit (GBP in this case), this should being you to the correct screen, if not, click on deposit then GBP.

Deposit GBP with kraken

Deposit GBP with kraken

Step 5

Choose the option of deposit that is cheapest for you. This will depend on your Bank and their fees for each type of deposit.

Step 6

Scroll down and follow the instructions given to deposit money to your account.

Step 7

Once you have the money in your account, click the Charts button at the top right to get a feel for the price of ETH at the moment. The charts will show when the last buy order was, how much it was for and how much ETH was bought was bought. Using the order book located at the bottom of the page, you can see all the people wanting to buy ETH and for how much. This allows us to undercut people and buy ETH before them.

Ethereum buy and sell

Ethereum buy and sell

Step 8

Now that we have a price for ETH, we can make out first order. Click the Trade tab on the left, then new order. Fill out how much ETH you wish to buy and at what price per ETH. If the Total GBP doesn’t exceed how much is in the account, click the BUY button and an order will be opened below. Once someone sells ETH to you, you’re done!

Step 9

Congratulations, you have just made your first step into the Cryptocurrency World.

Step 10

Read our “How to sell and deposit your Cryptocurrency” guide.

[Guide] Buying Ethereum in the UK

Okay, you have invested in Cryptocurrency or you have been mining and now want to sell off your coins for cash. This guide will be a basic way of selling almost any coins. Again, just like the last guide, we will focus on Ethereum and Kraken but the knowledge gained can be used to sell and deposit all other Cryptocurrency coins.

Lets get started.

Step 1

Load up Kraken and log in.

Kraken Home Page

Kraken Home Page

Step 2

If you have since moved your ether to other trading platforms such as Poloniex then you will need to withdraw your coins from there and deposit them to your Kraken coin address. To get your Kraken deposit address you need to click the “Funding” tab, select “Deposit” then choose the coin you want to deposit. You will be presented with the screen below, if you don’t have an address to deposit to, click “Generate new address” and you will be given one.

Rod Thomas Investment

Deposit Ether to Kraken

Step 3

Moving coins from one exchange to another can take up to 15 minutes (or longer) depending on a few factors. If you copy the transaction ID given when moving the currency and enter it on Etherscan at the top right, you can see how many confirmations the transaction has had. Once it reaches 24 confirmations, the coins will be successfully on your Kraken account.

Rod Thomas Investment

Transaction Tracker

Step 4

Next up we want to be changing to the correct currency exchange. In this case we will be exchanging Ether for Euros.

Rod Thomas Investment

Change Currency Conversion

Step 5

Next we will go onto the trading page where we can choose how much to sell for(Please see Bonus Step 7 for more advanced selling). If you want to be a little bit more advanced, you can open a second window with the charts and and manually choose a better price for yourself based on the current selling rate and amount.

Rod Thomas Investment

Sell Ether Price

As you can see, the highest someone wants to pay is 9.80971 per Ether so you can get a quick sale and sell for that exact amount, or you can look at the selling amount and undercut that guy to make a tiny bit more profit. Or you can have a higher amount in mind if you don’t mind waiting (keep in mind, there is no guarantee the price will go up to what yo want to sell it for).

Fill out how much Ether you want to sell, enter the price you want to sell it at or click the market/limit buttons for auto prices, confirm the total amount of Euros to receive if successful then click the big red “Sell” button.

Step 6

Congratulations on your sale, now lets get that money into your bank account. Select “Funding” then “Withdraw” then choose the currency you sold you coins for, in my case, “Euros”. Add you bank account details, enter amount you want to withdraw then click Submit. Funds take up to 5 working days to arrive. Please note, there is a small fee to pay for Euros withdrawal.

Rod Thomas Investment

Withdrawing Euros from Kraken

Bonus Step 7

Okay, now that you are familiar will selling your coins for money, lets get a tiny bit more into the selling side. As you will have probably seen, you can sell your coins for more than just Euro. There is also GBP and Dollars. Where I live, I use GBP so you would think I would transfer everything to GBP right? Wrong. GBP has a £10 minimum deposit fee so that much is automatically taken before I even receive my money in my bank, also my bank takes a certain fee too when it arrives. There is only one reason you should consider using GBP over Eur when selling coins, and that is if the price of the coins is selling for a good portion higher on GBP to cover that £10 deposit cost and the exchange on your bank account. As a rule of thumb, I sell about 30 Ether at a time, and if GBP doesn’t net me an extra £25+ then I use Euros as it moves a lot faster as more people use Euros.

Stay tuned for more guides, if you have any ideas, let me know on my social media accounts, links found at the top of the website.