Cryptocurrency explained: Blockchain, Investments & Co.

Cryptocurrency is nothing more than digital money. Here, all the important data around the holder and transaction is encrypted and stored. Instead of storing all this on just one server, the transactions are found in a decentralized network – also called: The Blockchain. This technology makes transactions faster, more secure, and less expensive than they would be otherwise. Sounds like the future? Read our analysis here: cryptocurrency development.

No investment advice or purchase recommendation!

All information provided here does not constitute investment advice or a recommendation to buy. All statements are my general published opinion. I have obtained the information from my experience as a private investor. This experience report cannot and is not intended to replace personal investment advice from professionals.

Owning and trading cryptocurrencies brings many advantages. Transactions take place directly between the buyer and seller. It is a decentralized network. So, unlike a bank transfer, exchange and bank fees are eliminated, as are transfer limits and unnecessary waiting times. Bitcoin trading is therefore not only uncomplicated, but also anonymous and secure. Instead of the own name, all crypto assets are managed with an identification code. The blockchain technology also ensures that transactions are constantly checked in advance, making any manipulation and forgery almost impossible. Learn more about the technology, course and trade explained here: BitCoin, cryptocurrency & blockchain.

Reading tip: Which app do I use to buy and sell shares, cryptocurrency & Co. Here is the answer! My recommendation: Trading App.

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And a little tip, Made in Germany:

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Trading with Bitcoin, Ethereum, Litecoin & Co.

The cryptocurrency Bitcoin is now a household name. It is the most popular, but by far not the only one. In the meantime, several new creations have emerged. Some of the others are Bitcoin enhancements. Thus, there are now over 4,500 cryptocurrencies. While that sounds like a large amount, only just under 100 of them achieve a daily trading turnover of $1,000 or more. Other popular cryptocurrencies are Ethereum, Ripple and Litecoin.

Cryptocurrencies – List

Here you can find a selection of interesting digital currencies:

Binance Coin (BNB)

• Binance Coin (BNB)

Bitcoin Cash (BCH)

• Bitcoin Cash (BCH)

Bitcoin (BTC)

• Bitcoin (BTC)

Cardano (ADA)

• Cardano (ADA)

Dash

• Dash

EOS

• EOS

Ethereum

• Ethereum

Ethereum Classic (ETC)

• Ethereum Classic (ETC)

IOTA (MIOTA)

• IOTA (MIOTA)

Litecoin (LTC)

• Litecoin (LTC)

NEO

• NEO

Ripple (XRP)

• Ripple (XRP)

Stellar (XLM)

• Stellar (XLM)

Tezos (XTZ)

• Tezos (XTZ)

TRON (TRX)

• TRON (TRX)

ZCASH (ZEC)

• ZCASH (ZEC)

Questions and answers: cryptocurrency

So now you know what the blockchain technology is, what cryptocurrencies there are and what advantages trading Bitcoin and Co. brings with it. Finally, you will get all the important questions about trading with cryptocurrencies answered:

Which is the best cryptocurrency?

The best cryptocurrencies include the classic Bitcoin, as well as IOTA, Ripple, EOS, Litecoin, Binance Coin and Tether.

Which cryptocurrency has a future?

According to forecasts, Bitcoin, Ethereum, Ripple and NEO have the most potential to increase in value in the future.

Are gains from cryptocurrencies tax-free?

The speculation period for cryptocurrencies is one year. If a profit of 600 euros or more is made during this period, the total profit must be taxed. So if the coins are left in the wallet for at least 12 months and only paid out after the speculation period, no taxes are due.

Should you invest in cryptocurrency?

Only invest in cryptocurrency if you are familiar with blockchain technology, different currencies and wallets. After all, this is a decentralized network based solely on demand. So always be aware of the risks and only invest if you are really sure and familiar with cryptocurrency trading.

Cryptocurrency: reading tips

1. Trading App: Recommendation
2. Trading strategies

Trading App: Recommendation

eToro App – Trade stocks, ETF, cryptocurrency, in my blog you have already learned a lot about trading. Lots of questions of course: which app do you trade with, what do I recommend? So today I want to share with you my favorite trading app, eToro. 29.88% asset growth in 12 months, with low risk through “Copy People” and “Copy Portfolios” or up to 127.35% through active trading and trading strategies. Learn about the app, fees and more here step by step.

• Trading App

Trading strategies

Whether it’s crytocurrency, currency trading, stocks, commodities or precious metals, these 3 strategies will help you understand the basic stock market game. I developed these 3 strategies to help beginners and novices understand the mechanics in a nutshell. Since I grew up with Bitcoin rather than stocks, here in particular a strong reference to digital currencies. But the mechanisms or strategies are the same for these 5 investment types: crytocurrency, currency trading, stocks, commodities or precious metals. I would exclude ETFs and index funds, as the risks and price fluctuations are significantly lower here.

• Trading strategies

Did you already know? Open transactions in the blockchain

Cryptocurrency itself is, simply put, a coded chain of data. The so-called blockchain.

How does cryptocurrency work?

Everything is set up as a P2P network (peer-to-peer). Data is therefore stored in a decentralized manner. All data blocks are linked to that of the predecessor. Within this distributed database, all transactions are actually known!

The whole thing is therefore a network in which cryptographically signed messages are published – technical term: blockchain. You want to have a look at these transactions? Here you can see live how individual trades sometimes sell up to 100 Bitcoins and how sums in the millions go over the table:

• Bitcoin transactions – live on blockchain.com
• Ethereum transactions – live on blockchain.com

Certification for market value assessment of real estate

In addition to the primary activity in the brokerage of real estate, many real estate agents offer, for example, the market value of real estate. In order to provide this service and professionally determine the asking price for your home or condominium, a lot of know-how and expertise is required. When looking for a real estate agent, you can ask for a certificate and find out whether your favorite agent has undergone further training in the valuation of real estate and knows all the important factors in the determination of the asset value and the market value.

Obligations of brokers

Every real estate agent is obliged to keep all proofs of participation in further training and to show these when required. Originally, the certificate of competence was intended to make it easier to distinguish between serious and dubious real estate agents. However, as an owner and potential client, you can also obtain this knowledge by referring to an experienced estate agent, viewing all evidence of further training on request and checking whether your appointed estate agent has a certificate of valuation before carrying out a property valuation.

Broker contract: tips and help

You want to sell a house or an apartment, have no experience in the real estate market and want to avoid mistakes at all costs? Then you are well advised to use the comprehensive services of an estate agent and simplify the time-consuming and complex sale of your residential property. When you hire an agent, you don’t have to factor the sale of your property into your schedule, as all tasks are handled directly by your real estate agent and carried out in your best interest.

Tasks of a broker

Basically, a real estate agent fulfils all tasks that are important before and during the sales and rental phase. He creates an exposé, determines the market value of your property, advertises your property and is then the interface between you and interested parties. While the creation and publication of an advertisement is a time-consuming but unique task, answering customer enquiries is part of the daily business of an estate agent.

• Here you can find more information about the tasks of a broker.

Commission for the broker – The most important regulations

More than 80 percent of all properties for sale or rent are brokered. This means that the owner commissions a real estate agent to advertise the offer and to carry out all tasks up to the conclusion of the contract on his behalf. Professional brokerage is a service that is agreed between the client and the real estate agent. After the service has been rendered, a commission, the so-called brokerage fee, is due. Who pays the commission depends on the type of commission and the reason for the commission. If you sell your property through an estate agent, the buyer usually pays. In the case of lettings, the buyer principle has applied since 2015, so that the invoice recipient and commission payer is identical to the person who has commissioned a brokerage service.

• Here you can find more information about the broker commission.

Credit cards – types and uses

The classic credit card got its name from the fact that it granted the customer a loan. Thus, the classic lending of money is only possible with a real credit card. Since a loan always carries risks, you should bear in mind before applying for a classic credit card account that the bank can cancel the account at any time. It is a framework credit, which does not have any notice periods. The will usually make use of this if the customer’s credit rating deteriorates.

The credit is granted as a credit line on the card account. You decide yourself whether you settle the outstanding amount at the billing date in one sum or in monthly instalments. The bank often requires a minimum amount, which is ten or 20 percent of the credit amount used. Alternatively, a minimum payment of ten or 20 euros may be required.

There are so-called black credit cards, which do not have a credit limit. However, these are only issued to customers with a very high income or a very high solvency.

You can increase or reduce the credit limit. Both are possible upon application. You can dispose freely within this limit. This is the advantage of a classic credit card. The limit can be used in full or only in part. Interest is only charged on the amount used and is calculated on a daily basis.

Unlike an instalment loan, the negative balance on the credit card account can be completely cleared at any time in order to save interest. However, you pay for this freedom with an interest rate that is often more than double that of an instalment loan. For this reason, the use of the instalment facility should be weighed up carefully.

Credit cards on credit basis

In addition to the classic credit card, there are other models that, strictly speaking, no longer live up to the name because no credit is granted at all. With these models, however, the credit institutions are accommodating the high acceptance of credit cards. For example, the Girocard or the Maestro card have not yet become established in online retailing. However, most retailers do accept credit cards. If this works on a credit basis, it can also be issued to customers who do not have a high credit rating.

Credit card with link to current account

Many banks offer credit cards that are directly linked to the current account. There are accounts for which a Girocard can be requested as an alternative. Abroad, the Girocard is not known. Within Europe, the Maestro card is used. Modern and young smartphone banks no longer work with the Girocard at all, but only issue credit cards and Maestro cards.

When paying with a credit card linked to the current account, the amount is debited directly. With modern smartphone accounts, this even happens in real time. This means that the amount is immediately reserved in the account. The advantage is that the customer can take advantage of the high acceptance of credit cards and still keep a very good overview of their finances. The credit card’s credit limit is based on the balance on the current account and is constantly updated. Credit cards that are linked to a current account as a means of payment are often issued free of charge.

Prepaid credit cards as an alternative

Prepaid credit cards can only be used as a means of payment if they have been loaded in advance. They are not linked to the current account, but there is a collective account for all customers who have such a credit card with the bank. The transfer must be made to the collective account and assigned to the customer based on the number of his credit card. This can take one or two days. Only then is the credit card ready for use. Another disadvantage is the high fees that have to be paid for the prepaid credit cards. The prepaid credit card should only be applied for if other options are out of the question.

Credit card types with high acceptance in Germany and worldwide

In Germany and Europe, Mastercard and Visa credit cards have a very high acceptance. Mastercard is very often issued in connection with a current account, while Visa is often chosen as a prepaid solution or as a classic credit card.

Those who like to travel to America often, choose American Express or Diners Club. However, both credit cards require a good credit rating. They are usually only issued as a classic credit card linked to a credit account and cost an annual fee, which is not very cheap. Since there are cheaper offers in Europe with Mastercard and Visa, American Express and Diners Club are not so highly frequented in this country. This is also confirmed by the acceptance, which is limited to hotels, restaurants, gas stations and shops that sell high-priced goods.