Jan 8, 2017 11:32 PM (This post was last modified: Aug 9, 2017 11:10 AM by SIM-2501407.)
IF YOU WANT TO USE THIS FOR ANY OTHER GUIDE, TUTORIAL, OR JUST TO IMPROVE ON THIS THREAD, PLEASE DO. I HAVE NO ATTENTION OF FINISHING AND REMASTERING THIS THREAD, SO FEEL FREE TO TAKE OVER. PLEASE, ALL I ASK IS THAT YOU LEAVE CREDITS TO ME FOR ANYTHING YOU USE ON THIS THREAD. I'LL GIVE YOU ANYTHING YOU NEED.
EDIT: Kill Joy WILL BE TAKING OVER THIS THREAD SOON, STAY TUNED!!
Augur - Third Party System Symbol: REP Website:https://www.augur.net/ Market Cap: 47,388,990 (Ranked #8) Available Supply: 11,000,000 REP Founder(s):The Augur Team Founder(s) Intentions: Augur combines the magic of prediction markets with the power of a decentralized network to create a stunningly accurate forecasting tool - and the chance for real money trading profits Positives/Upsides:
- Augur is an open, global platform where anyone anywhere can create, monitor or trade in prediction markets about any topic. Think of it as an “Early Warning System” with the most accurate event forecasts, a potential “Google Search”, “Bloomberg Terminal” or “Reuters Terminal” for crowdsourced event forecasts.
- With Augur, thousands of REP token holders will verify this outcome, making manipulation or error virtually impossible. Negatives/Downsides: Unknown Wallets/Exchanges Poloniex, Kraken, Bittrex, Gatecoin, and ShapeShift. Other: History:Start Date 11/17/2014 Recent News: N/A
Cryptocurrencies Explained
What is a cryptocurrency?
To put it into simple terms, a cryptocurrency is a virtual currencies that is decentralized.
What are the uses of a cryptocurrency?
The currencies are multi-purpose as if any currency is (I.E USD), and cryptography is used to secure the transactions and to control the creation of new coins.
Who uses cryptocurrencies?
It is believed by some that these currencies are used only by blackhats to remain anonymous, but that is not true by any means. Many people use cryptocurrencies, including businesses. As time has progressed, more and more people are using cryptocurrencies for everyday transactions.
Confirmations
What are confirmations?
Roughly every ten minutes, a new block is created and added to the blockchain through the mining process. This block verifies and records any new transactions. The transactions are then said to have been confirmed by the Bitcoin network.
How long do confirmations take?
There are lots of block intervals with a time less than 10 minutes but then a few block intervals much longer which bump up the average to 10 minutes. So the bitcoin network can get unlucky and a block won't be found for a whole hour.
(Jan 5, 2017 12:00 PM)Omniscient Wrote: The point of confirmations is that you can't fake sending money or pull back the funds once it's confirmed.
Before there is a first confirmation it is possible to spend it twice. That's called a double-spend and the blockchain miners will sort out which one to do first and the one they deem second won't be confirmed. This is why you should never consider Bitcoin payments from untrusted sources as PAID until at least one confirmation occurs. It's why many places require up to 6 confirmations before it's considered PAID. Some smaller cryptos want 10 or more confirmations. That's to avoid any possibility of a corrupt blockchain taking hold in order to steal the coins.
What does the term "double spending" mean?
Double-spending is the result of successfully spending some money more than once.
Note:Almost all, if not all, countries require you to report the gains/losses for tax purposes. As I created this, I wrote under SOME countries I mentioned recording income is required, but I HIGHLY, HIGHLY recommend reading up on the laws for yourself. The last thing I want to have happen is to have you arrested for money laundering or tax evasion due to being misinformed or not informed. Please double-check and read up on your specific country/state laws as they are getting constantly updated.
France
The French Ministry of Finance issued regulations on July 11, 2014 requiring:
1) Identity verification during the opening of, withdrawal from, or deposit to a virtual currency account.
2) Capital gains are taxable as business profits (BIC) or as non-commercial profits (BNC), depending on if the activity is undertaken habitually or not. Assets held in bitcoin must also be reported pertaining to the wealth tax (ISF).
3) Proposed ceiling on payments consistent with current rules for cash payments.
4) Conformance with regulations at the European Union level for bitcoin exchanges pertaining to identity verification of transaction participants and anti-money laundering.
Russia
As of November 2016, Bitcoin are "not illegal" (this according to a Russian federal tax service letter)
This letter included:
1) The Russian laws do not define such terms as money surrogate, cryptocurrency, or virtual currency.
2) The Russian laws do not contain any prohibitions as to operations with cryptocurrencies conducted by Russian citizens and organizations.
3) Using cryptocurrencies in transactions is a basis for considering such transactions as possibly related to laundering of illegally obtained money, and terrorism funding.
4) The FTS of Russia believes that operations related to procurement or sale of cryptocurrencies involving currency values (i.e. foreign currencies or external securities) and/or Russian currency are essentially monetary operations.
5) The existing monetary control system does not provide for reception of data on buy/sale operations with cryptocurrency from residents and nonresidents.
India
- Bitcoins is not illegal in India. Nishith Desai Associates is a leading law firm in the country. They have announced multiple times that Bitcoins is legal under all existing laws in India.
- An interesting fact is that, back in 2013, the Reserve Bank of India (RBI) issued a warning about bitcoin in late December 2013, which was followed almost immediately by exchanges choosing to suspend operations.
- On 28 December 2013, shortly after the shut down of some exchanges and a few raids that occured, the Deputy Governor of the RBI, K. C. Chakrabarty, made a statement that RBI had no plans to regulate bitcoin
Italy
- Italy’s stance on the Bitcoin system parallels the stance taken by the EU.
- Italy implemented this Directive through Legislative Decree No. 45 of April 16, 2012, which defines the concept of electronic currency, including the cases in which it is issued electronically in exchange for funds to be used as a means of payment, and identifies the persons authorized to issue electronic money.
- The Decree allows the use of electronic currencies in accordance with the EU Directive at the level of the European Central Bank, and by the central banks of European Members, the Italian public administration at the regional and local government levels, and the Italian postal system.
- However, the use of electronic currency is restricted to banks and electronic money institutions—that is, private legal entities duly authorized and registered by the Central Bank of Italy.
- Aside from these developments, Italy does not regulate bitcoin use by private individuals, and currently the implementation of initiatives concerning the use of electronic currencies lies with the EU
Japan
- There are at present no laws in Japan regulating the use of bitcoins. Haruhiko Kuroda, governor of the Bank of Japan (BOJ), recently stated that BOJ was “researching issues of bitcoins, but I have nothing to say regarding bitcoins at the moment.”
- UPDATE (Nov. 7, 2016): The 2016 amendment to the Payment Services Act included virtual currency exchanges regulation. Virtual currency exchanges operating in Japan will be required to register with the Financial Services Agency. The amendment will be effective by early June in 2017.
- The amended Payment Services Act defines Bitcoin and other virtual currency as: Property value that can be used by unspecified persons for payment of equivalent value for purchased goods, rental fees, or services, that can be purchased by or sold to unspecified persons, and that is transferable via an electronic data processing system (limited to property values that are stored electronically on electronics, excluding currency and currency denominated assets); or Property value that can be mutually exchangeable for 1 above with unspecified persons and is transferable via an electronic data processing system. (Amended Payment Services Act, art. 2 ¶ 5.)
Netherlands
- Dutch regulators have not imposed licensing restrictions on virtual currency businesses
- Holland in typically liberal style has tacitly assented to the use of digital currencies by issuing guidelines on their tax status. Logically, bitcoin and other cryptocoins are treated as any other currency for tax purposes.
Dutch Minister of Finance, Jeroen Dijsselbloem, stated, “The ‘alternative virtual currency’ [bitcoin] cannot be seen as ‘electronic money,’ ” continuing, “because it fails the definition set by the Dutch law.”
In 2016, 10 individuals were arrested for money laundering. This should not be surprising, money laundering is a common law and if broken, severe punishments may be acted upon the individuals.
Vietnam
Trading in bitcoin in Vietnam is still unrestricted and unregulated by law, and two largest bitcoin markets in Vietnam - VBTC and Bitcoin Vietnam are working without being restricted. In December 2016, the government confirmed to develop legal framework for bitcoin in Vietnam that should be finished by December 2017.
United States of America
- In the United States, bitcoin and other digital currencies are legal. While it is completely legal to have bitcoin, all profits/losses has to be reported to the IRS. On top of that, there are individual state laws and certain licenses required.
- End of March 2014, in time for 2013 tax filing, the IRS issued a guidance that it considered virtual currency as property for federal taxation and that "an individual who 'mines' virtual currency as a trade or business [is] subject to self-employment tax".
(Jan 5, 2017 12:00 PM)Omniscient Wrote: Guidance by IRS is iffy at best. Realistically every single BTC transaction has to be recorded as capital gains/loss according to their current guidance. And it's still something that's not really 100% solid either. And many CPA's scratch their heads when it comes to cryptos.
Example is the BTC income I have. First I get it at $X dollars (l33t upgrade $19), but then at some point I convert it to USD. So then I have to record what I obtained that BTC at then record what I exchanged it for as well as all the dates related. And I do hundreds of BTC transactions per month. You're talking a super nightmare to deal with.
The IRS is far behind when it comes to dealing with BTC. The data the IRS from Coinbase is going to be used to make examples of people by punishing them with fines and possibly jail time. It will not be used to enhance compliance as it should be used. Instead it's part of a criminal investigation.
- FinCEN (Financial Crimes Enforcement Network) has stated that the conversion of Bitcoins into U.S. currency is considered to be the transmission of money.Thus requiring businesses who do this, to register as a money service business. (However this may not apply to infrequent or low volume traders.)
- All types of money service businesses must register with FinCEN to obtain a money transmitter license… It is quite easy to register on FinCEN’s website to apply for a license, but actually obtain the license is difficult. Money service licenses have been granted to companies like Paypal, Western Union, and American Express. It can be a long, expensive, process to obtain an MTL. Bitcoin businesses may also work with a licensed transmitter (if they would like to forego the difficulty of obtaining their own licenses).
Individual States in the USA New York: A Bitlicense is required. New York is the strictest state in the USA.
Check your local and state laws - they are often getting updated.
United Kingdom
- The Financial Conduct Authority (FCA) in the United Kingdom (UK) has a pro-bitcoin stance and wants the regulatory environment to be supportive of the digital currency. Bitcoin is under certain tax regulations in UK.
-Bitcoin is treated as 'private money'. When bitcoin is exchanged for sterling or for foreign currencies, such as euro or dollar, no VAT will be due on the value of the bitcoins themselves. However, in all instances, VAT will be due in the normal way from suppliers of any goods or services sold in exchange for bitcoin or other similar cryptocurrency. Profits and losses on cryptocurrencies are subject to capital gains tax.
- HM Revenue and Customs tax treatment of income received from Bitcoin and other cryptocurrencies. READ: https://www.gov.uk/government/publicatio...currencies [Source: Investopedia][Source: UK Government][Source: Wiki]
Is Mining BTC worth it?
The short answer is no, it is not worth it anymore. If there are multiple miners at once, then it may be worth it, but in most cases, it is not.
Cloud Mining
Put very simply, cloud mining means using (generally) shared processing power run from remote data centres. One only needs a home computer for communications, optional local bitcoin wallets and so on.
Types of cloud mining Hosted mining
Lease a mining machine that is hosted by the provider.
Virtual hosted mining Create a (general purpose) virtual private server and install your own mining software.
Leased hashing power Lease an amount of hashing power, without having a dedicated physical or virtual computer. (This is, by far, the most popular method of cloud mining.)
What are the pros and cons to cloud mining? Pros:
A quiet, cooler home – no constantly humming fans
No added electricity costs
No equipment to sell when mining ceases to be profitable
No ventilation problems with hot equipment
Reduced chance of being let down by mining equipment suppliers.
Cons:
Risk of fraud
Opaque mining operations
Lower profits – the operators have to cover their costs after all
Contractual warnings that mining operations may cease depending on the price of bitcoin
Lack of control and flexibility.
Hardware
There are three main hardware categories for bitcoin miners: GPUs, FPGAs, and ASICs.
GPUs:
You can enhance your bitcoin hash rate by adding graphics hardware to your desktop computer. Graphics cards feature graphical processing units (GPUs). These are designed for heavy mathematical lifting so they can calculate all the complex polygons needed in high-end video games. This makes them particularly good at the SHA hashing mathematics necessary to solve transaction blocks.
FPGA:
A Field Programmable Gate Array is an integrated circuit designed to be configured after being built. This enables a mining hardware manufacturer to buy the chips in volume, and then customize them for bitcoin mining before putting them into their own equipment. Because they are customized for mining, they offer performance improvements over CPUs and GPUs. Single-chip FPGAs have been seen operating at around 750 Megahashes/sec, although that’s at the high end. It is of course possible to put more than one chip in a box.
SIC
This is where the action’s really at. Application Specific Integrated Circuits (ASICs) are specifically designed to do just one thing: mine bitcoins at mind-crushing speeds, with relatively low power consumption. Because these chips have to be designed specifically for that task and then fabricated, they are expensive and time-consuming to produce - but the speeds are stunning. At the time of writing, units are selling with speeds anywhere from 5-500 Gigahashes/sec (although actually getting some of them to them to ship has been a problem). Vendors are already promising ASIC devices with far more power, stretching up into the 2 Terahashes/sec range.
What is bitcoin mining actually?
You may be surprised, but Bitcoin miners are actually the one's who confirm transactions. When you wait 10 minutes or so for your bitcoin to confirm, it's because you are on a miner to mine the 'block' or verify the transaction. Miners are rewarded bitcoin for mining blocks.
What's the advantages and disadvantages to Pool Mining?
Well, when you are pool mining, you are sharing the profits. The disadvantage is to this is that if you are the one solving all the algorithms, you are losing out on potential money. I suggest using pool mining if you are only a beginner to mining.
How many bitcoins are released each day/halving? Spoiler (Click to View)
Start (2009) : 7200.00000000 #start
Halving 1 (2012) : 3600.00000000 November 2012
Halving 2 (2016) : 1800.00000000 (Occurred last year)
Halving 3 (2020) : 900.00000000 Reward-Drop ETA date: 30 Jun 2020 20:51:48 http://www.bitcoinblockhalf.com/
Halving 4 (2024) : 450.00000000
Halving 5 (2028) : 225.00000000
Halving 6 (2032) : 112.50000000
Halving 7 (2036) : 56.25000000
Halving 8 (2040) : 28.12500000
Halving 9 (2044) : 14.06250000
Halving 10 (2048) : 7.03125000
Halving 11 (2052) : 3.51562500
Halving 12 (2056) : 1.75781250
Halving 13 (2060) : 0.87890625
Halving 14 (2064) : 0.43945312
Halving 15 (2068) : 0.21972656
Halving 16 (2072) : 0.10986328
Halving 17 (2076) : 0.05493164
Halving 18 (2080) : 0.02746582
Halving 19 (2084) : 0.01373291
Halving 20 (2088) : 0.00686646
Halving 21 (2092) : 0.00343323
Halving 22 (2096) : 0.00171661
Halving 23 (2100) : 0.00085831
Halving 24 (2104) : 0.00042915
Halving 25 (2108) : 0.00021458
Halving 26 (2112) : 0.00010729
Halving 27 (2116) : 0.00005364
Halving 28 (2120) : 0.00002682
Halving 29 (2124) : 0.00001341
Halving 30 (2128) : 0.00000671
Halving 31 (2132) : 0.00000335
Halving 32 (2136) : 0.00000168
This is the reason bitcoin mining is no longer worth it. The reward has gone down and the difficulty has increased; this will continue until there is no more bitcoin to mine.
What happens once every bitcoin is mined?
Well, miners will have income by transaction fees.
What will happen to the price once all the bitcoin is mined?
Since that will not happen during most, if not all, of our lifetimes, it's just a guess. However, using some logic, the demand will continue to fluctuate up and down while the supply will remain the same. My own prediction is that coin will be much more valuable since the demand (hopefully) be much higher and as stated before, the supply the same. If you know a little economics, you know the price will rise when demand > supply. Remember, this is far into the future, many things can happen which may change the demand of bitcoin to actually drop.
Jan 8, 2017 11:35 PM (This post was last modified: May 20, 2017 05:38 AM by SIM-2501407.)
//Written By Act Of Valor
Beginner's Guide to Exchanging Cryptocurrency
Table of Contents
Introduction
Buying Bitcoin
Selling Bitcoin
Stay safe exchanging
Alternatives to PayPal
FAQ PayPal Questions
Introduction
My name is Valor✅ and I exchanged well over $10,000 in currency exchanges on Hackforums alone! I am here to teach you how to do the same as I did, it is some of easiest money to be made on the Internet. Be sure to check the legal section; be sure to know if you have to report income and/or need licenses.
Here is an example of what I did to maximize profits and minimize risk:
- Deposit money from my bank account into my USD Wallet on Coinbase.
- Find a TRUSTED buyer on hackforums
- Have them go first and pay 15% more than the current price (You can use Coinbase or Preev to base your price, but since coinbase prices are higher I recommend coinbase).
- Buy BTC from your wallet on coinbase for a 1.49% fee, then send to BTC to the buyer's address.
- Depending on whether or not the money was sent as friends/family or as a payment (2.9% fee + $0.30) you made 10% to 13.5% of your money.
- From PayPal, I would withdraw the money straight to my bank for no charge. Since this is an ACH transfer, it would take my bank 2 days to process.
Buying Bitcoin Option One: Coinbase
Coinbase is a great way of purchasing Bitcoin, but the IRS does have access to view all customer information now. When you first sign up your daily and weekly limits are not that great. However, you can raise your limits by buying more Bitcoin or being a part of the site for a given time. My current limits are $3,000/week with a credit card and $10,000/week when buying directly from the bank. Fees vary and can be found here. Also, when buying bitcoin from your bank, I recommend depositing your money into the USD (or given currency) Wallet. When you deposit from your USD wallet, you only have to pay a 1.49% fee to purchase bitcoin that way & you do not have to worry about the price of Bitcoin falling.
Option Two: Local Bitcoins
Local Bitcoins is a very trustworthy site. You will have to follow the seller's instructions and often they do require a picture of your ID. Since Local Bitcoins sellers often have higher rates for BTC, I only purchased from the website once.
Option Three: xCoins
Personally, I have not used this website, but I believe it is one of the best ways of a purchasing Bitcoin. From what I have read, once you verify your ID, your limits are $500 per day. Another great thing about xCoins is that you can purchase with PayPal!
xCoins currently accepts all the following methods:
Major credit cards: Visa, MasterCard, American Express, and Discover
Debit cards
Bank account (ACH)
eCheck
PayPal Credit
PayPal Balance
Option Four: Hackforums
This is one of least recommended ways of purchasing Bitcoin. You may be able to buy Bitcoin off of Hackforums for a 1:1 rate or for a 5% fee. The reason this method is not recommended is due to having to trust other members and it is impossible to know how quickly you'll find a seller.
Option Five: Other
There are many other websites that are unlisted above.
Some examples would be: BTC-E & Bitstamp
Selling Bitcoin
All the websites that you can buy bitcoin, you can sell bitcoin too.
I recommend selling on local bitcoins & hackforums. On both websites, you can easily sell bitcoin quickly ($500+/day) for a profit. On local bitcoins, you will have to build your reputation as a seller just as you would with any other site. The great thing about local bitcoins is that once you are trusted, you can sell bitcoin for a higher rate (15% on HF and 10%+ on Local Bitcoins).
For Hackforums, I will describe how to safe exchanging.
Stay Safe Exchanging
When you have a potential buyer (or seller) on hackforums you absolutely should do the following:
Check post activity, have they been active? Members who have been inactive for a long period of time may be back to scam, or their account may have been hacked to be used to scam.
Check reputation REASONS. Looking at the number is simply not enough. Members with a lot of reputation does not mean they have not gone on a scamming spree.
Check the user's trust scan if possible. This is often one of the best indicators to whether or not you should deal with that user.
Search their UID; sometimes scam reports are filled out incorrectly and do not appear on a trust scan.
Account age can be seen outside of the trust scan. Sometimes members gain a lot of reputation quickly to seem trusted & scam. Be aware if someone is new, there is a higher chance of them scamming; no hate towards new members, this is just a fact.
NEVER GO FIRST. This is especially the rule of thumb when you are the one sending bitcoin. Make the other user go first or get a middle man. A middle (I.E Minimalist or Confound) are much more trustworthy than most, if not all, members.
When selling BTC I experienced chargebacks on PayPal, so I will explain how to avoid them.
For every member I did deals with, I would ask for their paypal address. This was not so that I can see if they sent the money or not, it was so that I have evidence of who sent what if they decide to chargeback.
When I did not trust a member, I would ask for a photo of their ID (all I required was their name). Unfortunately, this does "butcher" deals that can be made, but those who are willing to give a photo of their ID are very unlikely to chargeback. I recommend making a folder in your PMs for exchanges completed. Save all PMs there it that folder for quick, easy access.
Overall, do not trust everyone anyone.
The only time I got scammed (not accounting for chargebacks) is when I broke my own TOS by going first. So far, the only chargebacks I received were from those who I did not ask for an ID when I did not trust them.
FAQ PayPal Questions
Does paypal allow bitcoin exchanges?
No, PayPal will limit/ban your account and you will forever be disallowed on PayPal.
What do I do if I get a chargeback?
Try to win. I can't give out methods or tell you to break the law, but there are ways of winning. You can check the premium sellers section or other sections of the marketplace to see if you can buy an ebook on how to win disputes. You may be able to find someone willing to help for free, but it can be difficult to find someone.
I have a hold, what does that mean?
PayPal often reviews payments for 24 hours. If the account is unverified, It increases the chance of this happening. Almost all of the payments will go through after being review, BUT some may be reversed! There is another hold that happens to newly created PayPal accounts, and that is a 21 day hold. PayPal does this since you are a new, untrusted member. Sometimes you can get the review to speed up by a week or so, but it still takes at least two weeks to be reviewed and released.
Jan 8, 2017 11:36 PM (This post was last modified: May 20, 2017 05:39 AM by SIM-2501407.)
Guide on how to Exchange on Poloniex
Contents:
-What is Poloniex used for?
-How to deposit funds to Poloniex?
-Understanding the Exchange view
-How to buy/sell altcoins
-FAQ
What is Poloniex used for?
Poloniex is an exchange site for cryptocurrencies. This exchange allows you to trade you Bitcoin to other alternative coins.
How to deposit funds to Poloniex?
Once you have registered go to Balances > Deposits & Withdrawals. This will look like: Spoiler (Click to View)
To deposit the funds simply choose the crypto you currently hold & would like to deposit (usually btc). Hit deposit & you will be given a unique deposit address. Simply send over the funds from your current wallet & wait for the transaction to confirm. Spoiler (Click to View) Note:
Make sure you follow the instructions listed for the certain coin otherwise your coins may get lost.
Some currencies have a minimum deposit amount, these will be shown when you click deposit. If you do send under the limit to the address, you will need to send an additional amount until the balance of the deposit address is above the minimum required.
If you cannot see your deposit straight away it is probably because it hasn’t met a certain amount of confirmations. You can track your deposit by going to Balances > History
Understanding the Exchange view
“Overview” Spoiler (Click to View)
The exchange has a lot of things going off all at the same time and this can get very confusing. I will be discussing the basics.
“The Markets” Spoiler (Click to View)
From the picture above you can see the coin, price, volume, change & name.
The coin is the is an acronym of the name. Many exchangers will use the acronym rather than the actual name of the coin whilst discussing, you will learn a few along the way.
The price shown is what 1 specific coin is worth against the current BTC value, this is shown as BTC value because this is what you will use in order to buy the currency. You can check what the current BTC value is by heading over to https://coinmarketcap.com/ (You can also work out what the current USD price is by PRICE OF COIN BTC VALUE IN USD.) Example from picture: The ETH value shows 0.04754002 BTC value @ coinmarketcap 1809$. This would mean each ETH was worth 85.99$.
The volume is your best friend, this will show you how much is currently circulating in the Poloniex market.
The change shows you how much the specific coin has changed within the past 24hours. As you can see in the picture above ETH has fallen -5% whereas DGB has risen 87%. This means if you had 10$ worth of DGB yesterday, today it would be worth 18.7$.
The name of the coin.
”Candle Sticks” Spoiler (Click to View)
The candle sticks chart shows whether the selected coin has fallen or risen in the chosen time frame.
You can decide how you want to view the certain coin’s chart by changing the zoom/candlesticks at the bottom. As you can see I have selected the zoom 24h & candlesticks to 30-min. This will now show me whether the coin rose or fell every 30minutes within the past 24hours (red fall / green rise).
The candle sticks will help you decide whether the coin is currently being pumped or dumped.
If you hover over a selected point in the chart it will show you the high/low during the 30minute spell.
How to buy/sell altcoins
Spoiler (Click to View)
In this section I will show you how to buy/sell different altcoins. The picture shows the current market for XRP. The top section is what you use for buying/selling & the bottom section shows the current buy/sell orders from other users.
”Buy/Sell Orders”
The buy/sell orders are changing all the time, these are the live orders that are ready to go from other people in the market.
As you can see from the picture the lowest order for selling is 0.00022419 & there is 35092 XRP available at that specific price.
The highest order for buying is 0.00022401 & there is 5129 ready to be bought at that price.
Once the lowest sell order matches the highest buy order this is when the reaction happens.
The market is changing constantly and will either go up are down depending on the amount of buy/sell orders. If there are more sell orders then the coin will generally fall because it shows less demand for the coin. If there are more buy orders then the coin will generally rise because everyone is wanting it.
”Buying/selling”
To buy the specific coin you need to enter the price which you want to pay for the coin (If you want to purchase straight away then click the top sell order). You will then need to either enter the amount of XRP you want to buy or the amount of BTC you want to spend, the other box will automatically be filled. The picture below shows me buying XRP at the price 0.00022299 I then entered 1 BTC in the total box, the amount then shows how many XRP I will receive for my 1BTC. Once I click buy it will set a buy order which can be tracked under Account > Orders > My Open Orders. Spoiler (Click to View)
If I then want to sell the XRP which I just bought for a higher price (If the value rises) I will enter my XRP total in the amount and the price I want to sell it for. It will then work out how much BTC I will receive in the total. See below: Spoiler (Click to View)
If this example happened I would have made .161356 BTC because my initial investment was 1 BTC and I now have 1.161356 BTC.
”Stop-Limit Orders”
The stop-limit is usually used as a tool to help protect profits or minimize losses. The stop-limit has three parts:
Stop – This is known as the “Trigger Price”. If you place this whilst selling your crypto, once the highest bid drops below your stop it will trigger the sale of your coin. If you place this whilst buying your crypto, once the lowest sell price reaches the stop it will trigger the purchase of your coin.
Limit – This is the value which you will be buying/selling the crypto. Once the “Stop” has been triggered an order will be placed at the price you enter in the limit.
Amount – This is how many you wish to sell/buy if the stop-limit is triggered.
If you find the stop-limit confusing you can simply enter what you want in the stop-limit box, and then click buy/sell. A confirmation box will the pop up tell you what will happen.
For further support & an example go here: https://poloniex.com/support/stopLimitOrders/
FAQ
How much do I get charged for buying/selling?
The fees are different depending on how much you want to buy/sell. The official prices can be found here. There are no fees for withdrawing/depositing in to Poloniex.
Is my account secure?
I advise that you set-up the Two-Factor Authentication on your account, this will make your account more secure. A guide on how to set this up can be found here.
Should I store my altcoins in Poloniex?
Poloniex is not a wallet it is an exchange site. It is recommended that you store your coins in the official wallets. This means once you buy your altcoin you should withdraw it into your new wallet.
Address Addresses (Cryptocurrency addresses) are used to receive and send transactions on the network. An address is a string of alphanumeric characters, but can also be represented as a scannable QR code.
Agreement Ledger An agreement ledger is distributed ledger used by two or more parties to negotiate and reach agreement.
Attestation Ledger A distributed ledger providing a durable record of agreements, commitments or statements, providing evidence (attestation) that these agreements, commitments or statements were made.
ASIC ASIC is an acronym for "Application Specific Integrated Circuit". ASICs are silicon chips specifically designed to do a single task. In the case of bitcoin, they are designed to process SHA-256 hashing problems to mine new bitcoins.
Bitcoin (uppercase) The well known cryptocurrency, based on the proof-of-work blockchain.
bitcoin (lowercase) The specific collection of technologies used by Bitcoin’s ledger, a particular solution. Note that the currency is itself one of these technologies, as it provides the miners with the incentive to mine.
Blockchain A blockchain is a type of distributed ledger, comprised of unchangable, digitally recorded data in packages called blocks (rather like collating them on to a single sheet of paper). Each block is then ‘chained’ to the next block, using a cryptographic signature. This allows block chains to be used like a ledger, which can be shared and accessed by anyone with the appropriate permissions.
Block Height Block height refers to the number of blocks connected together in the block chain. For example, Height 0, would be the very first block, which is also called the Genesis Block.
Block Reward The reward given to a miner which has successfully hashed a transaction block. Block rewards can be a mixture of coins and transaction fees, depending on the policy used by the cryptocurrency in question, and whether all of the coins have already been successfully mined. The current block reward for the Bitcoin network is 25 bitcoins for each block.
Central Ledger A central ledger refers to a ledger maintained by a central agency.
Confirmation A confirmation means that the blockchain transaction has been verified by the network. This happens through a process known as mining, in a proof-of-work system (e.g. Bitcoin). Once a transaction is confirmed, it cannot be reversed or double spent. The more confirmations a transaction has, the harder it becomes to perform a double spend attack.
Consensus Process The process a group of peers responsible for maintaining a distributed ledger use to reach consensus on the ledger’s contents.
Consensus Point A point – either in time, or defined in terms of a set number or volume of records to be added to the ledger – where peers meet to agree the state of the ledger.
Cryptocurrency A form of digital currency based on mathematics, where encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds. Furthermore, cryptocurrencies operate independently of a central bank.
Digital Commodity A digital commodity is a scarce, electronically transferrable, intangible, with a market value.
Digital Identity A digital identity is an online or networked identity adopted or claimed in cyberspace by an individual, organization, or electronic device.
Distributed Ledger Distributed ledgers are a type of database that are spread across multiple sites, countries or institutions. Records are stored one after the other in a continuous ledger. Distributed ledger data can be either "permissioned" or "unpermissioned" to control who can view it.
Difficulty Difficulty, in Proof-of-Work mining, is how hard it is to verify blocks in a blockchain network. In the Bitcoin network, the difficulty of mining adjusts verifying blocks every 2016 blocks. This is to keep block verification time at ten minutes.
Double Spend Double spend refers to a scenario, in the Bitcoin network, where someone tries to send a bitcoin transaction to two different recipients at the same time. However, once a bitcoin transaction is confirmed, it makes it nearly impossible to double spend it. The more confirmations that a particular transaction has, the harder it becomes to double spend the bitcoins.
Genesis Block The very first block in a block chain.
Halving Bitcoins have a finite supply, which makes them a scarce digital commodity. The total amount of bitcoins that will ever be issued is 21 million. The number of bitcoins generated per block is decreased 50% every four years. This is called “halving.” The final halving will take place in the year 2140.
Hashrate The number of hashes that can be performed by a bitcoin miner in a given period of time (usually a second).
Ledger An append-only record store, where records are immutable and may hold more general information than financial records.
Litecoin A peer-to-peer cryptocurrency based on the Scrypt proof-of-work network. Sometimes referred to as the silver of bitcoin's gold.
Mining The process by which transactions are verified and added to a blockchain. This process of solving cryptographic problems using computing hardware also triggers the release of cryptocurrencies.
Multi Signature Multi-signature (multisig) addresses allow multiple parties to require more than one key to authorize a transaction. The needed number of signatures is agreed at the creation of the address. Multi signature addresses have a much greater resistance to theft.
Off-Ledger Currency A currency minted off-ledger and used on-ledger. An example of this would be using distributed ledgers to manage a national currency.
On-Ledger Currency A currency minted on-ledger and used on-ledger. An example of this would be the cryptocurrency, Bitcoin.
P2P (Not play to play, you video game nerds.) Peer-to-peer (P2P) refers to the decentralized interactions that happen between at least two parties in a highly interconnected network. P2P participants deal directly with each other through a single mediation point.
Participant An actor who can access the ledger: read records or add records to.
Peer An actor that shares responsibility for maintaining the identity and integrity of the ledger.
Permissioned Ledger A permissioned ledger is a ledger where actors must have permission to access the ledger. Permissioned ledgers may have one or many owners. When a new record is added, the ledger’s integrity is checked by a limited consensus process. This is carried out by trusted actors — government departments or banks, for example — which makes maintaining a shared record much simpler that the consensus process used by unpermissioned ledgers. Permissioned block chains provide highly-verifiable data sets because the consensus process creates a digital signature, which can be seen by all parties. A permissioned ledger is usually faster than an unpermissioned ledger.
Private Currency A currency issued by a private individual or firm, typically secured against uninsured assets.
Private Key A private key is a string of data that shows you have access to bitcoins in a specific wallet. Private keys can be thought of as a password; private keys must never be revealed to anyone but you, as they allow you to spend the bitcoins from your bitcoin wallet through a cryptographic signature.
Proof-of-Stake An alternative to the proof-of-work system, in which your existing stake in a cryptocurrency (the amount of that currency that you hold) is used to calculate the amount of that currency that you can mine.
Proof-of-Work A system that ties mining capability to computational power. Blocks must be hashed, which is in itself an easy computational process, but an additional variable is added to the hashing process to make it more difficult. When a block is successfully hashed, the hashing must have taken some time and computational effort. Thus, a hashed block is considered proof of work.
Ripple A payment network built on distributed ledgers that can be used to transfer any currency. The network consists of payment nodes and gateways operated by authorities. Payments are made using a series of IOUs, and the network is based on trust relationships.
Replicated Ledger A ledger with one master (authoritative) copy of the data, and many slave (non-authoritative) copies.
Scrypt An alternative proof of work system to SHA-256, designed to be particularly friendly to CPU and GPU miners, while offering little advantage to ASIC miners.
SHA 256 The cryptographic function used as the basis for bitcoin’s proof of work system.
Smart Contracts Smart contracts are contracts whose terms are recorded in a computer language instead of legal language. Smart contracts can be automatically executed by a computing system, such as a suitable distributed ledger system.
Tokenless Ledger A tokenless ledger refers to a distributed ledger that doesn’t require a native currency to operate.
Transaction Block A collection of transactions on the bitcoin network, gathered into a block that can then be hashed and added to the blockchain.
Transaction Fee A small fee imposed on some transactions sent across the bitcoin network. The transaction fee is awarded to the miner that successfully hashes the block containing the relevant transaction.
Unpermissioned ledgers Unpermissioned ledgers such as Bitcoin have no single owner — indeed, they cannot be owned. The purpose of an unpermissioned ledger is to allow anyone to contribute data to the ledger and for everyone in possession of the ledger to have identical copies. This creates censorship resistance, which means that no actor can prevent a transaction from being added to the ledger. Participants maintain the integrity of the ledger by reaching a consensus about its state
Jan 10, 2017 04:45 PM (This post was last modified: Jan 10, 2017 04:50 PM by SIM-2501407.)
(Jan 10, 2017 04:28 PM)J. McCarthy Wrote: Don't use my guide in this you don't have permission sorry.
I spoke to Minimalist about that actually, and technically, I do not have to have your permission to use it. However, in respect of your request, I will remove it, revise it entirely, and repost my own version.
Fade, despite giving me permission to use his guide & now changing his mind, will receive that same respect.
Jan 10, 2017 05:12 PM (This post was last modified: Jan 10, 2017 05:20 PM by J. McCarthy.)
(Jan 10, 2017 04:45 PM)SIM-2501407 Wrote: I spoke to Minimalist about that actually, and technically, I do not have to have your permission to use it. However, in respect of your request, I will remove it, revise it entirely, and repost my own version.
Fade, despite giving me permission to use his guide & now changing his mind, will receive that same respect.
Well you actually would considering its a DMCA violation of my web article
It doesn't qualify as fair use as the original article has been saved on my hard drive therefor making me the original author. With that being said it's a significant portion of my writing, more than 10%, therefor is not covered with or without author citation. It's also not able to be used under Educational fair use because it's not in a classroom.
Hope this helps next time you decide to copy & paste.
Edit:
You're also in violation copying the entire article from the crypto miner who wasn't even online to give permission.
Jan 10, 2017 05:27 PM (This post was last modified: Jan 10, 2017 05:40 PM by SIM-2501407.)
If you have any questions or would like me to add anything, please send me a PM or post it here.
EDIT: @Formua1, I have larger issues than you being upset about using some content that you posted on this site, so please get off my back. Go steal another thread idea & stop posting on my thread please. Also, I may be incorrect, but I am pretty certain the 'educational uses' applies to more than just a classroom. If you have anything else to say to me, you may private message me. Thanks.
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