What is Bitcoin?

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Bitcoin had been available than what you think of, Bitcoin has been present ever since 2009 and it sprung from the idea of the mysterious Satoshi Nakamoto’s white paper. What Bitcoin really is that a cheaper alternative from the traditional online payments and transactions and is closely governed by decentralized authority.

If you’re wondering, there are no physical Bitcoins available for purchase; they only exist in balances associated with public and private keys. These are then kept in a public ledger, along with all Bitcoins transactions that were verified by a massive amount of computing powers.

The terms used for recording Bitcoins are “keys”. These “keys” are number and letter that are linked through a mathematical encryption algorithm. Public Keys are the locations used for Bitcoin sending, while Private Keys are meant to safeguard your account and are just used to authorize Bitcoins Transmissions. You can say that the Public Keys are the bank account number, while Private Keys are similar to ATM pin numbers.

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What is Bitcoin Mining?

Bitcoin Mining is the act where new Bitcoin are released. The process of Bitcoin mining involves collating previous transactions into blocks and trying to solve a computationally difficult puzzle. The catch is you have to be the first one to solve the puzzle gets to place the next block on the block chain and claim the rewards; the mining also gives the miner Bitcoin accompanied with the newly released Bitcoin.

Bitcoin Mining is decentralized, anyone in the world with the proper tools and internet can mine. Bitcoin’s security is solely dependent on this decentralization, every move and decisions made are based on a consensus.

But how hard it is to mine Bitcoins?

It actually depends on how much effort you put in if you choose to follow the software innate protocol, the Bitcoin network mining comes for two weeks or so, but the network constantly and automatically updates the difficulty of mining. It keeps the difficulty on a rate that can stabilize the discovery of a new block.

One reason why Bitcoin mining’s difficulty is always updated is because; the harder the level is the less profitable mining is for miners, and the more people mining, the less profitable mining is because of the distribution to each miner. The payout is always dependent on a number of transaction fees, the block reward, and of the price of Bitcoin; the more people mining means more people will share and split of the profit.

Trade12Basics is a daily updated blog about the happenings in the stock market, financial realms, and the world economy. It is also a place to find basics in trading and other sorts of tutorials that you can add to your knowledge. Subscribe to further educate yourself about the field that you are to partake in. Trade12Basics  is here for you.

Three Steps You Can Do to Secure Your Finances

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Securing your financial assets may seem intimidating and daunting at first, it may sound like you have to perpetuate on a lot of things and eventually look on hiring your own financial manager, although that’s not a bad thing to do, but these are simple ways you can do to secure your finance in the most personal, easiest, and cost-free way possible.

Remember Your Short-Term Goals and Long-Term Goals

First is you would have to identify your short-term and long-term goals, it is best to differentiate them as early as today as a combat instrument to the uncertainties of the future. Eliminate some of your long-term goals, make them chops of short-term goals that are measurable and precise; some example you can do is paying off credit card debts and student loans in an installment per month basis rather than making a big saving so you can pay them one time.

Trader Tip: Making long-term goals in pieces of short-term goals can eventually lead you to make more short-term goals as a replacement to the attainable ones. The reason behind this is reaching smaller goals first before the bigger ones. This strategy can surely boost your morale and of course, never forget your long-term goals!

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Be Financially Literate

The second one is being financially literate. Since you’ll be diving in the financial world, it pays to familiarize yourself with the financial management and investing rules and regulations. As a famous saying goes, making money is one thing; saving it and making it grow is another. Being financially adept can give you a lot of edge in terms of handling your own money, and growing it in this matter.

Trader Tip: Abraham Lincoln once said “give me six hours to chop down a tree and I will spend the first four sharpening the ax” it pays to be ready and well versed in the financial world in order to survive. You may end up bolstering everything you got, being prepared and acquiring the know-hows is easily one of the best ways to secure your finances.

You Are Your Best Asset

The last one is to remember that your greatest asset is yourself. Your knowledge and experience are your biggest assets, they are inept and free. Your future financial stability and security will always be affected by you, your job, your health, and your mentality. One way of securing your finances for imminent drawbacks is having one; remember that investing in yourself is investing for your future.

Trader Tip: You are your biggest asset, remember that. Put some efforts on yourself, continue to upgrade your skills and knowledge, make smarter choices, and most especially, increase your value by vigorously working hard.

Trade12Basics is a daily updated blog about the happenings in the stock market, financial realms, and the world economy. It is also a place to find basics in trading and other sorts of tutorials that you can add to your knowledge. Subscribe to further educate yourself about the field that you are to partake in. Trade12Basics  is here for you.

 

What Events to Anticipate in the Economic Calendar?

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The economic year is brimming with a basketful of events and what not’s to look forward to. This will be a rundown of some of the events that you need to mark on your economic calendars to start elevating your trading game. First and foremost, the Economic Calendar is the professional and comprehensive calendar economist, traders, and market analysts use in order to track eventful dates that can lead to market-moving events.

Events to Remember

The number one thing to look forward to as a budding trader are the Gross Domestic Products or GDP reports; this is the time where you can adjust and gauge the state of the economy a country has before spending a lot of cash on it.

Trader Tip: Learn to revisit previous GDP reports from several countries you are willing to invest money on, sometimes, a pattern is seen or a trend can be followed with the increasing and decreasing of a country’s GDP, master the countries’ GDP reports and learn when to take a move.

The next one to look out to is the Purchasing Manager’s Index of PMI; what this is a report that can be used to determine a company’s economy through compounding several thousand of purchasing managers’ from the biggest companies make.

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Trader Tip: Tracking the PMI is much easier and predictable as it is reported monthly, as a novice trader; this is one exercise you can practice on a monthly basis. Also, the PMI is a heavy influence that can sway a country’s GDP, so by tracking it regularly, you can come up with a forecast for a country’s future GDP giving you the edge you need in trading.

The last one would be the Consumer Price Index or CPI this is a kind of report where traders can take hold of consumer related data. Some of the useful data a trader can treasure are those of; incomes, financial situations, and consumption demand which are usually obtained by conducted surveys.

Trader Tip: the CPI is a very useful tool to determine a country’s current situation. Most of the time, if the results from the CPI reveals a better consumer spending, it means that the country’s economy is on the verge of rising. The CPI inflation rate means the CPI is below the goal of a monetary policy, which leads equities to rally, but seldom can be dependent on the communication coming from the country’s central bank.

 Remember the Economic Calendar

Use the economic calendar is a daily basis, as a trader, it is your solemn duty to rely on the events that mark a big significant in the market. The economic calendar is simply fair and easy to understand, always consult and look for it before negotiating any deals and future trades to minimize any margins of errors and loss.

Trade12Basics is a daily updated blog about the happenings in the stock market, financial realms, and the world economy. It is also a place to find basics in trading and other sorts of tutorials that you can add to your knowledge. Subscribe to further educate yourself about the field that you are to partake in. Trade12Basics  is here for you.

Everything You Need To Know: Precious Metals

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Precious metals have seen a large amount of attention in the previous year, due to economic changes in several countries, such as China, and the U.S.A. election which led to President Donald Trump’s victory. All of the events led ted tantamount of money flooding into the precious metals exchange-traded funds (ETFs).

First and foremost, Precious Metals are a classification of metals that are considered rare, and highly coveted for their economic value. Some metals that are included in the list are; the most famous one, gold, which is made famous with its dabbled history and rarity, the next one is silver, which is less rare than gold, but a notable agent in affecting currencies, and platinum, which is rarer than gold , but its price is more volatile than gold’s. Some types of precious metals are common on industrial schemes, metals such as iridium, which is commonly seen on satellite communication networks, and palladium, which is a big hit on electronics and chemical applications.

How Can You Trade Precious Metals?

If you’re interested in precious metals, you can participate in its trading by buying the physical asset: What physical asset is the term used when referring to things that can be liquidated from a business in the event of default in order to pay off debts, purchasing future contracts, this refers to essentially the same thing as physical assets but in the future, or you can directly purchase shares from a company that is involved in the exploration and production of precious metals.

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More Specific Ways on Purchasing Precious Metals

 You can purchase precious metal in the form of bars and coins; this method is called Holding Bullion. This is most common with gold, traders can purchase a substantial amount of gold bars and coins that are typical carries a very low margin over spot prices but can be very difficult. Public mining companies are open to the thought of trading but are underperformed by several challenges such as high company debt, rising labor costs, and the pronounced environmental issues. The last and the most diverse on is the Exchange-Traded Funds or ETF, this option gives daily liquidity and low transaction costs.

The previous year has been a series of twists and turns for the precious metals, from the scandal regarding the manipulation of the gold market, the proposed rate hike by the Fed, and the new US administration under President Donald Trump. A lot of the same events are expected to run a modifying year, the administration of Trump proves that it can sway the market to its feet and not stop there, while the Fed’s hike is yet to be felt. But even with the bombardment of news that can potentially tarnish the precious metals, but they still have provided a better 2016, they also closed at substantially smooth figures providing a tailwind for this year.

Trade12Basics is a daily updated blog about the happenings in the stock market, financial realms, and the world economy. It is also a place to find basics in trading and other sorts of tutorials that you can add to your knowledge. Subscribe to further educate yourself about the field that you are to partake in. Trade12Basics  is here for you.

 

What Makes A Good Financial Advisor?

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Seeking professional assistance is always suggested for starters in the prospect. These professionals are the ones who can escort novices to perform well, decide for the better and build a working future for themselves as a trader.

While there are a lot of personal professional advisor around, it’s still essential to astutely examine each quality before selecting the one right for you. What are these qualities that you should consider when looking?

A good advisor must be prepared at all times. A strategic financial guide should have a path to follow and will deliver a clear course to your trading lifestyle. This consultant should aid you in the conception of your financial plan and must offer a realistic step-by-step instruction on each segment of the said plan.

A good financial advisor is keen to details. Advisors should not always look on the general perspective of your plan but also in every detail that can affect it. Aside from the plan, advisors must also be analytic when a crisis arrives. Financial guides must stay calm when facing them and would rather act on it than panic to quickly fix the damage done by the problem to the plan.

Your goal is their goal as well. The core purpose of having a consultant in the first place is to have a rich supervision and a much easier way to attain your objectives or goals in your trading session. Financial advisors must skillfully put your interest first and shall provide a wide range of services to lessen any difficulties along the way.

Financial advisors make time for you. It is recommended that your advisor can physically meet you in person and deliberately discuss with you all of the methods that can come in handy in your trading experience and plus share some advantageous guidelines that you can apply later on.

Another factor that can help you in choosing is their reputation. In this way, referrals are the best example because if your friend trust the advisor, so can you. In fact, it is your money that you are trusting with the person so you should judiciously select an expert who you can trust your financial matters with to guarantee development.

In summary, a good advisor should be experienced in all aspects of the financial world. They will exert as much effort as they can to attain your goal in any realistic way possible without losing your trust in the process. Advisors should guide you in every step of your plan and of course, direct you to success because your success is theirs as well.

Trade12Basics is a daily updated blog about the happenings in the stock market, financial realms and the world economy. It is also a place to find basics in trading and other sorts of tutorials that you can add to your knowledge. Subscribe to further educate yourself about the field that you are to partake in. Trade12Basics  is here for you.

 

All About Contrarian Trading

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Trading against the market trends has been a trend itself for some investors. If a stock is in its low point, then these investors will buy it and if it goes up, they sell it. Quite the opposite you must say but that’s the point. It’s called Contrarian Trading.

For some years, this has been a strategy for a minute number of investors. It has brought them luck and of course misfortune because it’s going against the mainstream and if failed, then they simply fail but if the falling stock surged, then it’s pretty much a big luck.

Going with this trend of investing can cause more cons than pros because it is undeniably faulty and risky. Its inconsistent progress can result to a major downfall to any investor’s shares. Moreover, if trading is already risky, this is adding more risk to the present one.

Contrarian trading from the world contrary is simply going against the recommended trend. One flaw of this is once it failed, it would be disastrous for the investor. You lost your money, the stock failed and it will be hard for you to bounce back to the top.

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The mentality behind the trend is these investors is when a market goes up and they’re all invested on the stock will lose purchasing power and will have a hard time coping up once it fall. To add, once they fall, it safe to say for them that they’re not that affected because they sold the stock before it even get to fall.

A tip about this is prices never go in any direction possible. In the bull market there are pullbacks and run ups in the opposite market of bear. Once you attempt to buy from the bull market, the prices would be low but that’s going with the market, contrarian trading does the contrary.

Is this kind of trading recommended? Probably, not. It is risked filled and entering in to such kind of strategy is dangerous for your investments and would you want to risk something that involves your money? Not to mention that you are risking that is pretty much hazardous than what it is. In some ways, it can be good and worth the try but do not try making it a habit as a trader because again, it’s risky.

Trade12Basics is a daily updated blog about the happenings in the stock market, financial realms and the world economy. Subscribe to further educate yourself about the field that you are to partake in. Trade12Basics  is here for you.

Stocks to buy for 2017

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Welcome to 2017! As for those who are following the “new year, new me” trend, you are probably considering of finding a new stock to invest in. There are giant stocks out there that are performing well but there are always some others that can up your investments with their performance. With that being said, here are some of the stocks that you should consider investing with in 2017.

First one on the list is an agricultural stock that you may or may not have heard yet. Deere & Company is a distributor and a manufacturer of forestry paraphernalia internationally. Ranked first in some of the reports, Deere and Company has gained a percentage of 15.1 in over 60 days of session.

In the current year, it is expected that the stock would rise up to a number of 21.9%. Last year, the stock surged to a percentage of 35.1 in returns so achieving the number is not that impossible.

Next is Citigroup Inc. The stock has been ranked second on some reports and has gained 1.1 percent in year earnings in the previous year. To talk about returns, Citigroup has generated a percentage of 14.6 more than the expected rate of 10.6 percent. It has surpassed the exchange’s return of 9.5%.

In the biotech sector, UnitedHealth Group Inc. comes next on the list. Similar to Citigroup, it has gained 1.1 per cent in year earnings in the previous days. As for returns, it has gained to 36.1 surpassing the number of 18.4%.

Next on the list is Harris Corporation. The tech stock which had been conducting projects to serve the government and commercial clienteles has also been a hot stock to invest in this year. In returns, the stock has generated a number of 17.9% beating the expected number of 10.8 percent.

Broadcom Ltd also is expected to do well in the current year. The semiconductor firm has been famed for supplying metal oxide semiconductor around the world. For their returns, the company beat the expected percentage of 11.1 and has surged it more to 28.4 in just a year.

With all the said stocks that are recommended to invest on, 2017 can be a great year if you start engaging well with the mentioned stock. Those are just some of the best and there are a lot of good stocks out there. You just need to study their charts and news in order to predict an educated surge.

Trade12Basics is a daily updated blog about the happenings in the stock market, financial realms and the world economy. Subscribe to further educate yourself about the field that you are to partake in. Trade12Basics  is here for you.