Miner's mining and Trader's Trading Altcoins...!!! (Basic 1)

leyebiz (46)in #crypto • 9 years ago (edited)

From the Basics and for the use of Newbies who are just been told about cryptocurrencies benefits, I would deeply explain the Two(2) common categories likely known to be the most important roles that holds cryptoworld, without this two men/categories crypto/altcoin would never exist neither would it worth a dime.
This two classes are know to be mining and trading.

Mining and Trading are activities carried out by Miners and Traders, this classes are engaged by expert for productivity and consistency in making a finished project(altcoin) of a developer be meaningful, productive and worth-ful in the market.

Mining is the processing of transactions in the digital currency system, in which the records of current Bitcoin/altcoin transactions, known as a blocks, are added to the record of past transactions, known as the blockchain.

The block is an encrypted hash proof of work, created in a compute -intensive process.

Miners use software that accesses their processing capacity to solve transaction-related algorithms . In return, they are awarded a certain number of Bitcoins per block.

To quickly cutt-in the diagram above, as you could see the miners reward explain above to be 25btc on the diagram, yea that reward was specifically for the second miners reward in the second quadrennium(4years) of bitcoin creations,

According to Nakamoto Satoshi's principles he stated that miners rewards per blocks would be reduced to half in every quadrennium(4years) >from the creation date

Click to Read complete Principles http://satoshi.nakamotoinstitute.org/emails/cryptography/16/


On creation of Bitcoins miners get a rewards of 50btc per block which according to Nakamoto it would be reduced to half every 4years... 
That is in... 25btc...12.5btc...and 6.25btc per blocks(every quadrennium).

Trader/Trading
Trader's are common users like you and any other common man who purchases an altcoin for a less price hoping to sell it for higher price in your prescription, Depending on you to make a profit of the difference between those two prices, less any commission that you might had paid during the purchase.

However, if the price goes down, you will be in the uncomfortable position of having to either sell them at a loss or hold and hope the price goes back up while risking higher and higher losses if the price continues to drop.

There are two major types of traders in the altcoins/cryptocurrencies market, they are 'long term traders' and ‘short term traders

Each of these group of traders are classified by how long they may wish to hold onto a given position of trade.

Long term traders are usually involved in studying price trends, supply and demand, purpose, uses and volatility within a given periods of time.

By which they decide upon results from studies to buy and hold an altcoin over long periods with the hope of taking profit at a price higher than their original entry price.

Most especially if an altcoin is still in its developmental stages, a lot of users/traders willing to hold the coin after purchase buy them at this time.

This kind of suggestion is based on the assumption that with increasing use case scenario and more adoption, demand for altcoin and its associated technology will increase, thereby creating more demand for the cryptocurrency which will automatically cause an eventual increase in value...

On the other hand, short-term traders analyze the volatility of an altcoin taking advantages of the swings in price.

As adoption grows and altcoin becomes more stable, price volatility has reduced considerably and experts think it is a better time to trade the cryptocurrency for day to day trading, compared to an earlier stage of it development.

Bitcoin is certainly safer to invest in now than it was a couple of years ago”, says Aminu.

Traders get rewards by there efforts, in funds/capitals to purchase, research, studies and strategical methods,

Below are the Basic rules all successful Traders you see today had took before making good profit from there efforts...

The 7keys A successful TRADERS hold

1- Never put all your eggs in one basket. Your capital should be broken into smaller lots for multiple positions at different price levels.

2- Do not invest your life savings in the event of a 50/50 win/loss.

3- Take full advantage of available technology in order to gain maximum profit.

4-Understanding the market is a continuous process and requires a lot of time, concentration and effort. It is very crucial to do research and be up to date with current trends.

5- Know when to cash in. 

6- It is important to stay focused, unemotional and professional.

7- Traders should keep in mind that losing, just as much as winning, is an integral part of trading. It is the cumulative gains that count.
...........

Stay tuned for Continuity on the topic - (Basic 2).
In Basic 2 we shall be talking about what it takes to Be a Miner and a Trader.

From BIGEx @leyebiz
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