One of the biggest challenges facing cryptocurrency today is the issue of mass adoption. To put it in more clear terms, cryptocurrencies are not yet widely accepted as a means of payment in the real world.
Imagine a time in the future when you can walk into a grocery store and pay with Bitcoin, Ethereum, Dash or any other digital currency. That is the ultimate target in digital currency development. But before this is achieved, some basic facilities must be put in place.
How Do Users Spend Cryptocurrencies?
Today, in order to spend cryptocurrency, many users will have to sell them in an exchange first, before accessing fiat currency with which they settle transactions. This is a complicated process that has discouraged a lot of potential users of cryptocurrency.
Even though the above scenario is what is largely obtained in the industry, advances have been made towards regularizing crypto-fiat settlements through seamless systems. This development revolved around the two big card companies in transaction settlement, Mastercard and Visa until the latter pulled out.
Both card companies have registered their presence in the cryptocurrency environment. However, the more forward and crypto averse of the two is Mastercard. Whether as a matter of confidence in blockchain technology or for the benefit of strategic positioning, Mastercard’s participation on matters of blockchain and cryptocurrencies are a clear testament.
Between Mastercard and Visa
In October 2018, the U.S. Patent and Trademark Office [USPTO] published an application by Mastercard to retain patent of a novel payment processing method to allow fiat- and crypto-payments for both merchants and retailers, alongside simultaneous storage facilities for both currency types.
This is the kind of implementation that is achieved using the tap app and card which is based on their backend technology. Users can easily spend their cryptocurrencies like any other currency. No need to bother about the settlement processes, they are handled at the backend. The only difference is the knowledge that the user is spending the crypto equivalent of the price in fiat.
Visa, on the other hand, is not so liberal towards the use of cryptocurrencies. It is true that certain platforms adopted the card to serve their customers, but as of 2018, the company announced that it will no longer support cryptocurrencies through its services.
Cryptocurrency awareness is growing, and so is the adoption of technology. Until users can be able to carry out transactions without thinking about the complicated processes, adoption will not be fully achieved.
With Mastercard services through platforms like tap, we expect to see a more user-friendly system that will encourage growth and establishment of the crypto industry.
Industry player Fumgo gives 5 tips on how to trade cryptocurrencies
Look, you could have bought one bitcoin in April for $4,000 and sold it today for $8,000.
It sounds like an easy way to earn money, right? The crypto trading, however, isn’t that simple. In fact, the always-changing price, high stakes, and online scams make it also dangerous for those who know little about it.
So when you take risks for rich rewards, make sure to follow these tips:
1. Use reputable exchanges
To trade cryptocurrencies, you go to exchanges, internet platforms that help buyers and sellers meet.
But high market demand brought in a number of phony exchanges. You must keep an eye out for them and make sure you use only reputable ones like Bittrex, Huobi Global, OKEx, HitBTC, or Binance.
There are also trading terminals like Fumgo. The terminals let you trade across multiple exchanges — including the ones mentioned above — from one interface. In fact, it’s even safer to use them, because they offer two-factor authentication when you log in, unlike exchangers.
2. Learn from professionals
Crypto trading is a job. You need to monitor the price movements and make decisions. This is hard to do without knowledge about the market.
Find real traders and learn from them. Some of them post videos on YouTube.com, others publish articles. It takes time, but it’s well worth it.
At this stage, beware of scammers who have never traded cryptocurrencies but promise to teach the craft. The internet is full of free tips, but these “experts” sell them as professional knowledge.
There’s a way to shortcut the learning curve: the Fumgo terminal has a feature that allows mirroring the traders. If you switch it on, it will make your account copy the actions of chosen professionals automatically. The system verifies them — only true pros allowed.
3. Practice with small sums of money
Seen enough and feel confident? Then it’s time to practice. But don’t rush, start with small investments.
The cryptocurrencies rates change unpredictably, so invest the amount of money that you wouldn’t regret losing. Practice as much as possible this way and when you manage to earn regularly, raise the stakes.
4. Stick with one strategy
Every trader has their own style. Copy one and stick with it for some time, see how it goes. If you change your strategy too frequently, you won’t be able to see the result.
Three tricks are universal, however: 1) make a limited amount of transactions per day to approach trading energized; 2) pay attention to Bitcoin, its price influences other currencies; 3) keep statistics on your transactions to understand what strategies work best.
For the latter, there’s a shortcut, too. The Fumgo terminal tracks your stats automatically and shows the history of all the transactions.
5. Trade different currencies
Bitcoin isn’t the only cryptocurrency worth attention.
The price for Monero, for example, has been changing constantly from $10 in 2017 to $100 today. At some point, it even cost $500. The same with Dash and Ethereum.
Pro traders usually devote only 5–30 percent of their capital to one cryptocurrency. Follow suit.
The easiest way to keep track of your cryptocurrencies is via terminals: in one interface, you can compare the rates of your cryptocurrencies across various exchanges and sell each where it’s most profitable. Terminals usually have subscription models: Fumgo, for example, costs $20 a month but offers a trial week and two free months for subscribers.