Kirill

Blockchain enthusiast developer and writer. My telegram: ksshilov

Weekly Top 5 Questions About Making a Profit with Crypto — 10KQA Challenge

Some time ago we started the 10KQA Challenge (details here). The core idea was simple: to build a moderated list of 10,000 questions for anyone who wants to learn about the blockchain and cryptocurrency in general.

Do you remember when you first started learning about something complex, but it was difficult to find the information you needed and you had a million questions? The easiest way to learn something is to just start asking questions and receiving answers. But it’s hard to ask about something that you are not familiar with. So that’s where 10KQA comes in.

To be honest, things didn’t start out as fast as we expected (maybe because the core demand in the crypto niche decreased 5 times since December). Bitcoin’s value decreased and so most of people stopped asking questions :) But as we all know, blockchain technology has huge potential and it will not stop.

During these past two weeks we met a lot of interesting people who are passionate about learning blockchain and crypto (if you want to join, just write in comments). So here are some interesting questions that we published this week.

How can you assess the transparency of an ICO project? (Source here)

The best answer to this is a tool that you can use to check this. neufund.org — provided a solution — ICO transparency monitor.

This tool is very simple to use, and it gets data from the blockchain and processes it through a 14 question questionnaire which helps answer the questions: Is this ICO transparent or not?

It’s pretty interesting to see which questions it’s based on, and they can be accessed here

What is a miner’s growth plan as difficulty adjusts? (source here)?

Marco Streng, CEO of Genesis Mining, shared his opinion in an interview for Moneycontrol.

He featured six factors that will help to keep profits when reward decreases and difficulty increases.

  • Use economy of scale to keep costs low (mining farms across four different continents with Enigma).
  • A highly streamlined supply chain of ASICS.
  • Good deals with energy companies and focusing on using renewable energy.
  • On Direct working with chip manufacturers.
  • State-of-the-art mining farm management software called Genesis HIVE, which we have developed in-house.
  • Multipool technology further boosts profitability for customers by switching between different coins, depending on their profitability.

As you can see, the mining business has become quite high-tech, and it will be pretty hard for average user to start mining by themselves (without using a pool).

Are there any differences in trading crypto as opposed to other asset classes? (source here)?

Thanks to John Hwang, these are five points on how it differs:

  • Unmitigated exposure to insider trading and pump and dump schemes.
  • The lack of deposit or security insurance.
  • Not backed by any revenue, asset, or business model.
  • The constant risk of irreversible, permanent loss.
  • The lack of price consistency across exchanges and order protection.

So if you could think that your trading background will help you in understanding the core of the blockchain, you should also take into consideration that crypto is a whole new world where there are a lot of peculiar properties and risks that you should consider.

The prices of cryptocurrencies are dropping fast. What should I do? (source here)?

Of course, there is no right answer or solution here (and everything written bellow should not be considered as actionable investment advice, it is merely an opinion based on crypto community research).

We found four main factors that help us stay calm in the fast-changing crypto market:

  • Altcoin will exist for as long as Bitcoin survives.
  • Bitcoin will survive even though altcoin may be dying.
  • Analyze what is going on with Bitcoin and what is the trigger for this movement upward. If you did not find anything, we can assume it’s a bull trap, which mean that it is more than likely altcoin will get pumped.
  • Many people lose their money because of their emotions. ust stay calm.if you can not do that, investing in the volatile crypto market might not be for you.

Crypto trading it really risky business as we saw last month. The rule of thumb here is — never invest more than you could lose.

What is more profitable: buying ICO tokens during an ICO or after the exchange entrance (source here)?

This question has no precise answer. But one Bitcointalk user has an interesting opinion:

It is hard to make a big profit from the ICO because the project has just started, and it needs to prove if the coin is good enough to survive in the exchange or not. I think buying later on the exchange is the best thing that we can do if we are afraid of losing, and we should determine how much money we want to use to buy the coin. But if we are really wanted to participate in the ICO, then we need to find information about the project and everything that will make us believe that the project will achieve success on the exchange.

To join our challenge and get new updates, follow us on:

We will be appreciative of all participants, ideas, and discussions. I hope that we will all get something positive from the process and that unforgettable feeling of having a flow.

We are also looking for moderators to join our challenge who will educate with us and search for new questions and answers regarding the blockchain and crypto in these categories:

  • Core Blockchain Development
  • Profits (trading, ICO, mining)
  • Real Disruptive Models
  • Laws and Regulations

And check out our new feature “Blockchain Experts” here. These are the experts that we are reading and following within the blockchain niche.

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About the author:

Kirill Shilov — Founder of Geekforge.io and Howtotoken.com. Interviewing the top 10,000 worldwide experts who reveal the biggest issues on the way to technological singularity. Join my #10kqachallenge: GeekForge Formula.

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