cryptocurrency

Forex exchange, Bitcoin and Luno

Forex Exchange- What is it

Forex Exchange is the process of changing one currency into another for a variety of reasons, usually for commerce, trading. or tourism. One unique aspect of this international market is that there is no central market place for foreign exchange. Rather, currency trading is conducted electronically over-the-counter(OTC), which means that all transactions occur via computer networks between traders around the world, rather than on one centralized exchange. The market is open 24 hours a day, five days a week, and currencies are traded world wide.https://www.forex.com

Spot market, Forward, and Future markets

There are three ways that institutions, corporations and individuals trade Forex. Forex trading in the spot market has always been the largest market because it is the “underlining” real asset that the forwards and Future market was the most popular venue for traders because it was available to individuals investors for a longer period of time. However, with the advent of electronic trading and numerous Forex brokers, the spot market has witnessed a huge surge in activity and now surpasses the futures market as the preferred trading market for individual investors and speculators.

More specifically, the spot market is where currencies are bought and sold according to the current price. That price, determined by the supply and demand, is a reflection of many things, including current interest rates, economic performance, sentiments towards ongoing political situations as well as the perception of the future performance of one currency against another.

Forex Exchange trading risks

Trading currencies can be risky and complex. The interbank market has varying degrees of regulations, and Forex instruments are not standardized. In some parts of the world Forex trading is almost completely unregulated.

Pros and Challenges of Trading Forex Exchange

Pros

The Forex exchange markets are the largest in terms of daily trading volume in the world and therefore offer the most liquidity(Liquidity refers to the ease with which a asset, or security can be converted into ready cash without affecting its market price)

The Forex market is traded 24 hours a day, five days a week- starting each day in Australia end ending in New York.

Challenges

Banks, brokers, and dealers in the Forex markets allow a high amount of leverage, which means that traders can control large positions with relatively little money of their own.

Trading currencies productively requires an understanding of economic fundamentals and indicators.

The bottom line

For traders- especially those with limited funds – day trading or swing trading in small amounts is easier in the Forex market than other markets. A focus on understanding the macroeconomics with technical analysis may help new Forex traders to become more profitable.

Forex exchange
chart

Bitcoin

What is Bitcoin

Bitcoin is a cryptocurrency. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.https://www.bitcoin.com

How does Bitcoin work

Each Bitcoin is basically a computer file which is stored in a “digital wallet” app on a phone or computer. Every single transaction is recorded in a public list called the blockchain.

Is Bitcoin legal in South Africa

Yes, it is legal to buy and sell bitcoin in South Africa. The South African Reserved Bank(SARS) has issued warnings regarding the risks associated with trading in Bitcoin. But there is no actual ban on any form of cryptocurrency trading. SARS makes it clear that any earnings from these trades are subject to taxation.

Countries where Bitcoin is illegal

China

Bitcoin is banned in China. All banks and other financial institutions like payment processors are prohibited from transacting or dealing in Bitcoin

Russia

Bitcoin is not regulated in Russia, though its use as payment for goods or services is illegal.

Vietnam

Vietnam’s government and its state bank maintain that Bitcoin is not a legitimate payment method, though it is not regulated as an investment.

Bolovia, Columbia and Ecuador

El Banco Central de Bolicia has banned the use of Bitcoin and other cryptocurrencies. Columbia does not allow bitcoin use or investment. Bitcoin and other cryptocurrencies were banned in Ecuador by a majority vote in the national assembly.

The bottom line is

Many countries still do not have explicit systems that restrict, regulate, or ban the cryptocurrency. The decentralized and anonymous nature of Bitcoin has challanded many governments on how to allow legal use while preventing criminal transactions. Overall Bitcoin remains in a legal gray area for much of the world.

Bitcoin– the possible Pandora’s box of the currency world – has never been short of controversy. Whether it be aiding the black market or scamming users out of millions, Bitcoin is no stranger to the front page.

The top 7 Bitcoin scams

There have been (and undoubtedly will be) nearly countless Bitcoin scams, but these frauds make the list of the top 7 worst Bitcoin scams to date.

Malware scams

Malware has long been the hallmark of many online scams. But with cryprocurrency, it poses an increased threat given the nature of the currency in and of itserlf

Recently, a tech support site called Bleeping Computers issued a warning about cryptocurrency targeting malware in hopes of saving customers from sending cryptocoins vis transactions, reported Yahoo Finance.

This type of malware, called CryptoCurrency Clipboard Hijackers, works by monitoring the windows clipboard for cryptocurrency addresses, and if one is detected, they will swap it out with one that they control.

And according to Asia Times, even MacOs malware has been connected to malware scams involving cryptocurrency.

Fake Bitcoin Exchanges-BITKRX

Surely one of the easiest ways to scam investors is to pose as an affiliate branch of a respectable and legitimate organization. Well, that’s exactly what scammers in the Bitcoin field are doing.

South Korea scam BITKRX presented itself as a place to exchange and trade Bitcoin, but was ultimately fraudulent. The fake exchange took on a part of the name of the real Korean Exchange (KRX), and scammed people out of their money by posing as a respectable and legitimate cryptocurrency exchange. BITKRX used this faux – affiliation to ensnare people to use their system. The scam was exposed in 2017.

Ponzi Scheme – Mining Max

“Ponzi Bitcoin Scam” has got to be the worst combination of words imaginable for financial guru. And the reality is just as bad.

Several organizations have scammed people out of millions with Ponzi Schemes using Bitcoin, including South Korean website MininMax. The site which was not registered with the U.S Securities and Exchange Commission promised to provide investors with daily RIO’s in exchange for an original investment and commission from getting others to invest (basically a Ponzi Scheme). Apparently the site was asking people to invest $3,200 for daily ROI’s over two years, and a $200 referral commission for every personally recruited investor.

MiningMax’s domain was privately registered in mid-2016, and had a ninary compensation structure. The fraudulent cryptocurrency scam was reported by affiliates, resulting in 14 arrests in 2017.

Fake Bitcoin Scam – My Big Coin

A classic scam involving Bitcoin and cryptocurrency is simply, well, fake currency. One such arbiter of this faux Bitcoin was My Big Coin. Essentially the site sold fake Bitcoins. Plain and Simple.

They even mislead investors by claiming it was also partnered with Mastercard, according to the CFTC case.

ICO Scam- Bitcoin Savings and Trust and Centra Tech

Still other scammers have used ICO’s initial coin offerings – to dupe users out of their money.

Along with the rise in blockchain-backed companies, fake ICO’s became popular as a way to back these companies. However, given the unregulated nature of Bitcoin itself, the door has been wide open for fraud.

Bitcoin Gold Scam- MyBtgwallet.com

Nothing catches the ey e of the naive quite like the promise of gold- bitcoin gold, of course. That is what Mybtgwallet.com did to unsuspected Bitcoin investors.

The website allegedly used links on a legitimate website (Bitcoin Gold) to get investors to share their private keys or seeds with the scam.

Pump-and-Dump scam

This type of scam is not just regulated to Bitcoin, a pump-and-dump scam is especially dangerous in the internet space.

The basic idea is that investors hype up a certain Bitcoin – that is usually an alternative coin that is very cheap but high-risk – via investor’s websites, blogs, or even Reddit, according to the Dailydot.com. Once scammers pump up the certain Bitcoin enough, skyrocketing its value, they cash out and “dump” their Bitcoin into the naive investors who bought into the Bitcoin, thinking it was the next best thing.

How to avoid a Bitcoin scam

There is no one formula to avoid being scammed, but reading up on the latest Bitcoin red flags, keeping information private, and double checking sources before investing in anything are a good standard procedures that may help save you from being scammed out of your money. Cryptocurrency can be a confusing topic even for the experienced Bitcoin enthusiast, so the more you read up on the world of bitcoin, the more prepared you can be. After all, knowledge is power.

bitcoin
bitcoin

Luno

What is Luno and how does it work

Luno is a digital currency exchange facility that offers clients a technology platform to buy, sell and store digital currencies as well as a pay for products and services using a crypsocurrensy wallet

Formerly known as BitX, the company’s headquarters are in London, United Kingdom; and the company is represented in 40 countries around the world. However, Luno is focused on developing countries which have proven to be lead adopters of cryptocurrency. This includes South Africa, Nigeria, Indonesia, Zambia, and Malaysia.https://www.luno.com

What is a cryptocurrency exchange platform

A cryptocurrency exchange platform facilitates the exchange of cryptocurrencies for traditional fiat money. A cryptocurrency exchange is either a “brick-to-mortal” business much liike a bank that exchanges traditional currencies (such as U.S dollars, Euro and Pound Sterling), or it is a web-based platform that facilitates the exchange of fiat currencies and cryptocurrencies.

You typically access a cryptocurrency exchange platform by signing up on a website such as Luno, downloading an app from the app store or you can access it via Google play.

What does Luno offer

Luno offers it’s clients a simple and secure way to buy and sell Bitcoin, using built-in cryptocurrency wallet. It supports several global fiat currencies such as the U.S Dollar, Euro, Pound Sterling and the South African Rand. Luno offers, a brokerage service as well as offers training and consultancy services to help the general public understand the complexities of cryptocurrencies such as Bitcoin.

Can you lose money on Luno

Luno will not be liable to you for any losses resulting from these kinds of accidental or fraudulent transactions. The volatility and unpredictability of the price of cryptocurrencies relative to local currency may result in significant loss over a short period of time.

Bitcoin phishing fraud and how Luno is fighting it

The most common types of Bitcoin phishing scams

With phishing scams, people trick you into giving away your account information. They happen in most industries like finance, e-commerce, payments, social media and email. Below are the most common ways people get tricked

Email phishing

With email phishing, you may receive an email that appears to be from Luno, but in fact comes from a scammer, asking you for information or leading you to a fraudulent website.

Phishing Websites

Phishing websites are set up to look like Luno’s website, but everything entered there gets recorded and can give scammers access to your actual Luno account.

Telephone Phishing

With phone phishing someone may call you or send you a text message claiming to be from Luno, to get you to give up your account password or other information.

Advertising phishing

There is an increase in advertising phishing. When doing a search for Luno on Google, a scammer might be running ads that look like they’re taking you to the legitimate Luno website, but instead it takes you to a look-alike phishing site, where your personal info gets stolen.

Whether or not you are considering Forex exchange or Bitcoin. My advice would be is to go and do all your research, do not settle for the first thing you find, look for all the negative not only the positive. The more research you do and questions you ask, the more insight you are going to have to make an informed decision. More tips on pyramid schemes and scams https://williebrits.co.za/pyramid-schemes-and-crowdfunding/

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luno

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