By Reuters 9m ago

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By Anna Irrera and Tom Wilson

London - Bitcoin seems so flighty, some might argue you may as well consult a crystal ball, read the runes or stare at the stars to divine the direction of the capricious cryptocurrency.

Enter Maren Altman, bitcoin investor and astrologer.

The New Yorker has been following the movements of celestial objects to predict bitcoin price fluctuations since last summer. And while many people might mock her methods, she has built up a 1 million-strong social-media following on TikTok.

Last week, the 22-year-old told her followers to watch for a price correction on Jan. 11.

Why? Saturn was going to cross Mercury.

Lo and behold, bitcoin fell as much as 21% on that day, before recovering most of its losses, slamming the brakes on a meteoric rally that saw it double from early December to a record $42,000 last week.

"I am never going to tell someone to buy this or that," said Altman. "I can predict price trajectories but do not claim to be a financial adviser aware of someone's specific circumstances, and therefore never give buy or sell advice."

For the uninitiated, Mercury represents bitcoin's price data and Saturn is a restricting indicator.

While many people might give Altman's analysis as much credence as any fortune-telling, she is among a growing cohort of young TikTok influencers who began posting content on cryptocurrencies as prices rallied in 2020.

They're jumping on the bandwagon for bitcoin, whose mysterious movements even baffle many financial analysts, who say cryptocurrencies lack the fundamental data points used to assess traditional assets.

"I'm a bit of a cynic when it comes to bitcoin projections," said Craig Erlam, an analyst at forex broker OANDA. "I think it's just a selection of people clutching at straws, trying to justify any reasons to be bullish."

Bitcoin has jumped over five-fold since the start of 2020, prompting investment banks to predict more future gains. Citigroup said bitcoin could hit $318,000, while JPMorgan Chase & Co tipped it to reach $146,000.

So what do the stars have in store for the world's favourite cryptocurrency?

"I see some favourable indicators at the end of the month and especially February and early March," said Altman, whose readings of bitcoin's astrology charts are based on the date for the coin's genesis block, the equivalent of its birthday.

"However getting into mid-March, I see a big correction. Mid-April is also really less optimistic. May is bullish."

Reuters

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What does the stars have in store for cryptocurrency? Astrologer tells all - IOL

If youve ever used a cryptocurrency exchange then you might have come across the term Hot Wallet. You may also have heard how risky they can be and, if youve looked into it any further, read horror stories about hackers stealing silly amounts of cryptocurrencies straight from exchanges.

So what exactly is a hot wallet? And what distinguishes it from its opposite number: a cold wallet? What are they used for and, if you already own any cryptocurrency, is it currently stored in a hot wallet? You might, if youve just stumbled across this article, be wondering what temperature has to do with wallets in the first place!

About the author

Nick Percoco is Chief Security Officer at Kraken

Lets start from the beginning. In many ways, cryptocurrencies, like Bitcoin, are very similar to the cash you keep in your back pocket. They are divisible into tiny exchange units that can be used for private transactions. Just like cash, cryptocurrencies can be sent directly between two parties without an intermediary a bank, say having to process or approve the transaction for you.

But just as how you keep cash in your pocketbook, cryptocurrencies have to be held somewhere. This is where a wallet comes in. At its most basic, a cryptocurrency wallet is a bit of software that contains a public and private cryptographic key; sort of comparable to an account number and PIN number. In any transaction, the receiver shares their public key with the sender, so they know where to send the money to. The sender then signs the transaction with their private key, which effectively authorizes it. Once everything matches up, the transaction completes and the crypto is transferred from the senders wallet to the receivers wallet much like taking out a banknote from your pocketbook and handing it over to someone else, who puts it in theirs.

So while the public key identifies wallet addresses, a private key is the crucial bit of information that confirms the transaction is actually valid. Just like a PIN number, its vital that wallet holders never disclose their private keys, as this effectively allows anyone, anywhere, with an internet connection to easily access the cryptocurrency and use it as if it was their own.

This is crucial for understanding what exactly makes a cryptocurrency wallet hot. Essentially a hot wallet is one thats connected to the internet. They come in many shapes and sizes, and include mobile wallet apps, as well as the wallets used to hold your crypto when you log in to an exchange.

Because hot wallets are connected to the internet, they can easily be used to buy and sell cryptocurrencies. Thats important: back in the early days, sellers very often had to connect with buyers in real life in order to make transactions. What makes a hot wallet so useful is that transaction parties can buy and sell directly with one another. Without them, Bitcoin would be a very difficult asset to trade.

But, of course, what makes hot wallets so valuable, as a way to seamlessly buy and sell cryptocurrencies, also makes them vulnerable. By being connected to the internet, both the public and private keys of a hot wallet are stored online. This means they can be and are targeted by hackers.

As with other cybersecurity, the risks largely depend on how well the wallet owner has implemented sufficient security measures. Poor password management, using a simple phrase that has also been used for other internet accounts, say, makes hot wallet owners much more vulnerable to attacks; as does a lack of two-factor authentication. A promising development in recent years has seen cryptocurrency holders begin to use multisig wallets that require two or more private keys, making them that much more secure.

The fact that exchanges hold hundreds of millions, if not billions, of dollars worth of cryptocurrencies means they are often targets for hackers. Exchange attacks unfortunately remain commonplace. You can have all the security you want in place, but you need to ensure your exchange also has proper protection too. If theyre hacked, theres no guarantee youll ever see your cryptocurrencies again. Its very important that you thoroughly research any trading venue make sure they take the security of your assets as seriously as you do.

But whats cold storage and what separates it from a hot wallet? Thats simple: a cold wallet holds cryptocurrencies, just like a hot wallet, but keeps the cryptographic keys offline. They can take many forms: some of the most popular are the hardware wallets that look a little bit like USB memory sticks. Oftentimes, the wallet owner keeps the private keys on an encrypted flash drive, a smartcard, a computer that isnt connected to the internet, or even just on a bit of paper. By keeping private keys off the internet, cold wallets are secured against hacking attempts. If a cryptocurrency holder is using a hardware wallet, they simply plug the device into the computer whenever they need to access their cryptocurrencies. As the private keys remain offline, the wallet is secure even when its plugged into a computer.

There is, of course, a tradeoff. As its not connected to the internet, accessing and moving crypto in and out of a cold wallet can be a cumbersome process. Thats why many holders use them in conjunction with hot wallets. Holders transfer the small amounts they need to trade on a hot wallet and keep the rest of their crypto wealth secure in a cold wallet. Indeed, thats also broadly what exchanges do although on a much bigger scale to minimize the risk of attack.

So what should you take away from this piece? First and foremost, if youre interested in buying cryptocurrencies, adopt a security-first mindset. Check who youre buying your coins from and ensure that you never ever disclose your private keys to anyone.

Secondly, consider, if you havent already, moving any crypto assets you have that you arent using off your exchange account. Hot wallets are a valuable part of the crypto infrastructure, without them trading would be burdensome and time consuming, but they arent watertight from a security perspective.

The single best way you can protect yourself from having your assets stolen is by getting a cold wallet. So long as you follow basic security protocol when it comes to your private keys not posting them on Facebook, for example youll keep your private keys secure from hackers.

See the rest here:
What is a hot wallet for cryptocurrency? Everything you need to know - TechRadar

Cryptocurrencies are expected to see increased activity this year with more avenues opening up for their utility, including banking services, trade, and remittances, apart from the investment interest in India. Trading volumes have increased almost eight times since March after the Supreme Court allowed banks to deal with cryptocurrency exchanges.

As 2021 started, the price per Bitcoin, the worlds largest and oldest cryptocurrency, crossed $34,500 globally on January 3. However, it slipped a day later to $30,000 levels. In India, it is currently around Rs 22 ...

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First Published: Tue, January 05 2021. 06:10 IST

Originally posted here:
Cryptocurrency trade may be more action-packed in 2021, say analysts - Business Standard

Whats the best way to gain experience in the crypto industry? Many would tell you just to give it a try, make a few trades, and learn as you go. But failing in this industry may prove to be so costly that you can go bankrupt. In that case, you wont have the money to invest or trade again.

According to Ben Armstrong, one of todays most recognized cryptocurrency experts, you must continuously stay up to date about the crypto industry as its the best way to gain experience. Despite what many people would have you believe, you cant expect to rake in massive returns from every trade you make. What matters is that you reap even the smallest gains through effective trading strategies based on real data. For beginners, this proves much more useful than simply trading with your gut.

Ben Armstrong is someone who has earned his way to the top. He now has a YouTube channel called BitBoy Crypto that offers the latest news and views about the crypto market and provides trading tricks that you can implement to get high returns and limit significant losses.

2012 marked the beginning of Bens venture into the world of cryptocurrencies. He invested money in Bitcoin, hopeful that it would yield incredibly high returns in a short period. While he found some early success, he also faced multiple struggles along the way, including losing money during the Mt. Gox hack.

Despite his losses, Ben decided to carry on with crypto trading because he genuinely believed in the massive potential. He spent hours studying how the market works, what kind of news affects the price of coins, investors reaction time after watching the market crash, and how to come out of a tricky situation in the market.

These things kept playing in the mind of Ben every time he invested. He wanted to learn how other investors think, which proved immensely useful in formulating his trading strategies. After studying the industry for almost six years, Ben finally decided to start his YouTube channel in 2018 to share his knowledge with aspiring investors.

People started calling him Ben BitBoy Armstrong after the massive popularity of his YouTube channel. Over time, Ben started getting more requests to make a separate YouTube channel for crypto news. That led him to divide his channel and dedicate a part only to the latest news happening in the crypto world.

Ben wanted to balance news and trading tips simultaneously. He loved how newbie traders would appreciate him after a successful trade, while on the other hand, veteran traders lauded him for keeping them updated with the latest news. He also used to run a podcast called Beards and Bitcoins, but he had to put it to a halt once his YouTube channel took off. He couldnt allow time to his podcast anymore due to the growing demand for his YouTube content.

Although Ben is now a successful YouTuber, he doesnt stop reading about the crypto market. He even encourages investors to read so that they can handle different market conditions efficiently. Ben believes that the more you read, the more you can strategize your investments. Since this is a volatile market, you need to be ready for anything.

And Ben doesnt read just because he has to make YouTube videos. He loves to explore the market every day. If you want to achieve success similar to Bens, you shouldnt just limit yourself to gaining experience from trading; you should also read about the market and follow the news every day.

See the original post:
What Made Ben BitBoy Armstrong Enter the World of Cryptocurrency? - SF Weekly

Just before the Christmas holidays, the Department of the Treasurys Financial Crimes Enforcement Network (FinCEN) issued proposed rulemaking entitled Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets. The proposed regulations seek to require banks and money service businesses (MSBs) to submit reports, keep records, and verify the identity of customers in relation to transactions involving convertible virtual currency (CVC) or digital assets with legal tender status (legal tender digital assets or LTDA) held in unhosted wallets The proposed rulemaking is set to be adopted under the Bank Secrecy Act (BSA).

FinCEN justified their proposal on national security grounds i.e., the national security threat posed by bad actors using CVCs to, inter alia, facilitate international terrorist financing, weapons proliferation, sanctions evasion, and transactional money laundering. Thus, the question arising out of the proposal is the same that often arises indeed, its the same question that came out of the Schrems II decision that led to the invalidation of Privacy Shield last year: What is the proper balance of national security vs. personal privacy?

Specifically, in the case of FinCENs recent proposal, banks and MSBs would be required to:

The proposed rulemaking was open for public comments for only 15 days (the standard public comment period for these types of policies is 60 days), until January 4, 2021. (Note: the Electronic Frontier Foundation (EEF) and Coinbase both criticized the limited timeframe for public comments, given that the holidays occurred during the 15-day period).

Several of the public comments on the proposal were focused on privacy-related concerns.Even though the proposal sought to make the know your customer (KYC) rules for traditional banking institutions equally applicable to cryptocurrency, commenters argued that the promises of cryptocurrency (e.g., privacy and self-sovereignty) and the technological nature of cryptocurrency (e.g., the public ledger for blockchain-based currencies like Bitcoin) introduced new concerns.

For example, EEF noted that some cryptocurrencies like Bitcoin keep a public record of all transactions. Thus, if the name of a user connected with a particular Bitcoin address is known, the government may have access to a massive amount of data beyond just what the regulation purports to cover.

Jack Dorsey, the CEO of Twitter and Square, also submitted comments. Dorseys major complaint was that the proposed rules would create unnecessary friction between cryptocurrency users and financial institutions, which could lead to perverse incentives. To put it plainly were the [regulations] to be implemented as written, Square would be required to collect unreliable data about people who have not opted into our service or signed up as our customers.

Of course, the proposed rulemaking will not be the end of action in cryptocurrency regulation. The recently passed National Defense Authorization Act for Fiscal Year 2021 (H.R.6395) contains additional anti-money laundering tools that may further complicate cryptocurrency procedures in the coming months.

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FinCENs Proposed Rulemaking for Cryptocurrency The Balance of National Security vs. Privacy - JD Supra