Daily Archives: April 21, 2017

In the 21st century, money is no longer limited to bills, coins and credit cards. In fact, some money is truly international -- not owned by any particular government -- and regulated by the people instead of a central entity. It also exists wholly on the internet. This type of money is called cryptocurrency.

You may have heard of or even used Bitcoin when it first became popular several years ago, but where Bitcoin used to rule, other cryptocurrencies are now being used to pay back family members for lunch, charge customers for products and services and make other everyday transactions. As an entrepreneur, its important to keep an eye on the most commonly-used cryptocurrencies. Here are six I think you should know about.

Rather than competing with Bitcoin like many other cryptocurrencies, Ethereum complements it; while the Bitcoin blockchain network tracks ownership of its own currency, the Ethereum blockchain runs programming codes for its users applications. People use Ethereum to create custom (but trustworthy) crowdfunding platforms, autonomous online organizations and even their own cryptocurrencies. Because these applications are decentralized, they can only be built in the Ethereum network.

Though Ether, the network's money,wasnt made to be used for everyday payments, anything of value can be traded for products and services; as a result, many developers use it to pay for each others help in building applications.

However, most online stores that accept cryptocurrency do not take Ether.

Related:11 Ways to Make Money While You Sleep

If Bitcoin were gold, Litecoin would be silver. Litecoin works just like its more popular counterpart, but its worth a little less -- there are 21 million total Bitcoin in existence and 84 million Litecoin. Litecoin are easier to mine and quicker to move from person to person due to its faster block generation. It is perhaps the least intimidating cryptocurrency for those who are new to exchanging money online: Litecoins wallet can be downloaded fromthe official Litecoin website, and its fully encrypted to prevent accidental spending and computer viruses. This is a super simple network for those who need to move smaller amounts of money fast.

While other cryptocurrencies avoid banks, Ripple embraces them. In fact, Ripple was made for banks, as it allows them to make faster, low-cost, on-demand global payments of any size. Traditional cross-border transactions require banks to go through an intermediary (or often several), which delays completion. Ripple offers a faster and more direct alternative. When a bank customer in the US wants to send a payment to a different bank customer in China, for example, Ripple immediately queries both banks for their transaction fees and makes the transfer in a matter of minutes. It even updates both customers ledgers right away so they can view their balances following the transaction. This unique cryptocurrency enables banks to offer new and improved payment products, and it simplifies regular transactions for consumers around the world.

Related:Habits of the World's Wealthiest People (Infographic)

Though Dash can be used for transactions between consumers, it was made for shopping. Think of Dash as a replacement for PayPal. Many merchants accept Dash just as they do USD, but the transaction is faster -- you dont have to wait a day or two to see the payment charge to your account. Like any other cryptocurrency, you can buy Dash using government-regulated currency and keep it in a designated Dash wallet until youre ready to spend it at a compatible merchant. You may even consider adding your own business to the merchant map!

If you want to maximize your confidentiality, this cryptocurrency is for you. Zcash has been dubbed the first zero-knowledge cryptocurrency with its ability to shield the identities of all senders, recipients and values. Each transaction is fully encrypted, so users can enjoy the advantages of a public blockchain without offering up private information. Many view Zcash as a more confidential version of Bitcoin.

Related:5 Habits of the Wealthy That Helped Them Get Rich

Monero is another excellent cryptocurrency option for those concerned about their privacy. This currency was designed to give individual users full control over their money; with Monero, you are your own bank. Transactions are selectively transparent, meaning you decide who can and cant see where your money is going. Crises faced by banks and governments wont affect your assets or compromise confidential information. Finally, like many cryptocurrencies, Monero is decentralized and community-built -- over thirty developers have directly contributed to Monero so far.

If your business doesnt use any of these cryptocurrencies already, you may want to start incorporating them soon. When it comes to online financial transactions, cryptocurrencies like the ones above have quickly started to give PayPal, Stripe and other payment systems a run for their money.

Cryptocurrency transactions arent validated by a central entity, meaning there are no bank or platform fees associated with payments -- just optional, minute fees (one percent or less) that speed up the transaction. You also dont have to wait nearly as long to receive cryptocurrency as you may with traditional money.

Again, a cryptocurrency'smost important feature might be that it'struly international; no particular government owns or regulates it. This means there are no fees for payments that cross borders, and the transaction works the same no matter where you or the other party are located.

The only major disadvantage to cryptocurrency is the need to sell it for USD (or any other government currency). However, this process closely imitates the way youd transfer PayPal funds to your checking account.

Matthew Toren is a serial entrepreneur, mentor, investor and co-founder of YoungEntrepreneur.com. He is co-author, with his brother Adam, of Kidpreneurs and Small Business, BIG Vision: Lessons on How to Dominate Your Market from Self-Made E...

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6 Cryptocurrencies You Should Know About (and None of Them Are ... - Entrepreneur

In Asia, Europe and the Americas, Cryptocurrency trading has become a way of life, but that is not the case in Nigeria and other African countries. In this interview, the Chief Executive and Principal Consultant,Crypto Plus Certified, Mr. Peter Ayoade Moradeyo tellsNdubuisi Francisthat his company is poised to close the knowledge gap with the ultimate goal of enlisting Nigeria on the global cryptocurrency exchange. Excerpts:

What is a good way to concisely explain Bitcoin, block chain and crypto currencies?

The success story of Crypto currency dates back to 2009, during the financial breakout, when Bitcoin was formed on blockchain technology. Bitcoin was first introduced in Asian countries and gradually to Europe, US etc. It is needful to clarify however, that the blockchain technology is not the same thing as Bitcoin; the relationship between them is only that Bitcoin is deployed on the blockchain technology. Interestingly, Bitcoin seems to be more popular today than the platform on which it stands. Now, there are two things which distinguish Crypto currency from the normal currencies. The first is that it is finite. It has a fixed number that can be taken off and immediately that happens, its value shoots up and we all know that anything that can finish naturally increases in value as it is being taken up. So, as the world gradually adopts cryptocurrency, the available number reduces and value automatically drives upwards, causing it to grow dynamically in value. That explains why Bitcoin has been able to grow like that since 2009. The second thing is that cryptocurrency has intrinsic value or what some call store of value. Let me explain it this way: each copy of a coin is an address, a location on the blockchain. When one address belongs to a person, that address cannot belong to another person in any part of the world. This is unlike the fiat counterpart where any money reading on a persons bank account means that the bank owes the account holder to the tune of the said amount, but not necessarily that that money is the account holders to cash at any time. This is why sometimes the banks would tell an account holder that they do not have enough cash to complete a transaction. The case of the blockchain is different because the value is intrinsic and better preserved.

What is the function of CryptoPlus Certified?

Since 2009, Bitcoin and several other alt coins have been coming up. Alt coins are referred to as alternative coins to Bitcoin which is the first and most popular of them all. At a point, we realised there was an opportunity where Bitcoin and other coins can relate in value;there is value relativity between them. So, we started by trading Cryptocurrency. I can recall that sometime in 2015, there was an upsurge of certain Ponzis in Nigeria. Nigerians sustained the following of Ponzis until it became almost endemic. Unfortunately, very few Nigerians knew about the very essence of the medium of transfer which Bitcoin was during the transaction of these Ponzis. Bitcoin was only used because it did not need a third party like banks to facilitate a transaction between the Ponzis and their victims. So, the Ponzis took advantage of their patronage, cashing in on the anonymity of transaction which was part of the features of cryptocurrency. What was supposed to have been an advantage became a disadvantage because of the ignorance of Nigerians. Someone needed to educate Nigerians appropriately as to what cryptocurrency really meant and what disruption it was meant to address. So, we now came up because before now, we had a deep background on its trading. We decided to reappraise the image of Cryptocurrency as it were in Nigeria. Also, at several conferences we have been all over the world, we realised that Africans are non-existent on several cryptocurrency trading platforms. Just like we have the Nigerian Stock Exchange with several companies trading on its platform, there are also several participating bodies that trade value among us. The sad thing here is that Africans are non-existent on any Cryptocurrency exchange whether in US, Asia or Europe. This is also true when one considers Cryptocurrency graph. The Asians are up there; Europe and America are there too, but Africa is non- existent. Our function at Crypto Plus Certified is basically to close the knowledge gap so that people can take advantage available and then Nigeria can be enlisted on what we call the global Cryptocurrency exchange. We trace the current state of Crypto currency trading to slowness of adoption. The federal government is yet to adopt a framework for the implementation of blockchain that can give rise to participation. Several countries have done that but for some reasons it has not happened in Nigeria.

You have a dream to raise and establish 1,000 Nigerians on the Poloniex Exchange. What is the implementation plan put in place to achieve this and why the choice of Lagos, Abuja and Port Harcourt?

We need to make it clear that Nigeria is a country with many opportunities. We also need to state that Bitcoin came into Nigeria with a wrongly perceived image, and on the wrong platform. So, our first goal is to take the responsibility to repair that image, and then reappraise the benefits and enlist Nigeria as a participator in the normal trading of Cryptocurrency. In order to achieve that, we launched what we called, Dream 1000. It is all about trading on Poloniex which is the largest Crypto exchange in America and we are currently working with them on releasing a mobile platform strictly for Nigerians and it will work as an arbitrage with our own exchange which will come from Germany. We want to work as an arbitrage so that they will trade on our own platform via the mobile interface. Nigerians can be taught on how to trade this currency easily, and our strategy is very unique because the mobile application is actually enhanced to be able to reduce all the variables of trading system. Since we launched the Dream 1000 recently in Lagos, we have had some of our students who were able to distinguish themselves with the level of knowledge we passed to them and they are going to show Nigerians that we are serious about what we are here to do. We have this oncyptopluscertified.org.

How has the response been like?

I grew up in Nigeria before I decided to relate with other countries for business reasons. One thing I know about Nigerians is that they respond to results. So, the first thing we want to identify is, we want to be able to have people who have had results and that is why all the events we have done, we have been showcasing people that distinguished themselves, those that we gave the knowledge and they applied it and got results. We want to be inspired by results and not just belief.

Can Bitcoin be regulated? What about Bitcoin and taxes?

Those conversant with information coming out of cryptopluscertified would have noticed that Nigeria is currently on a discourse on how to regulate Cryptocurrency trading based on several frameworks. I have several write ups regarding this. Cryptocurrency trading as it were is decentralised and this is why the banking system cannot operate it. It is decentralised because of its nature. For instance, Bitcoin as it were, does not have a management interface and that is why the regulation has not been somewhat forthcoming. But it is found to be very secured and has ability to store values. That has been the reason for all the enquiries on how do we have a framework for a kind of currency that has thus kind of features? Sometimes, it takes time, but individuals are working and several people have stored values on it and exchanged it with another. The US is an example where Poloniex is operating. So looking at it more objectively, the regulatory framework and the operational climate go hand in hand but they can be mutually exclusive.

Bringing it to a laymans understanding, what are the advantages of Bitcoin and how does Bitcoin work?

In a laymans way, I would like to use the similitude of changing one currency to another, for instance. If you have some Naira notes and you want to change to Dollar, knowing the exchange rate that relates one to the other will be very helpful. Now to a layman if I bring my Naira and want to buy a Dollar, I will change the Naira to a Dollar based on the foreign exchange rate agreed between the person selling the Dollar and myself. Now imagine where you have the Bureau de Change in the middle and you have the buyer, that is, the demand, on one side and the supplier on the other side; that is the way it works. The person at the middle collects commission from two persons. The buyer sells at a price based on demand and supply. So, if the demand is higher than supply, the price is likely to go up. If Im able to read that the demand and price for a thing I bought and own have gone up and I sell it, now the difference between what I bought and what I am selling now that the price has gone up is my own profit. That is the basic analysis of how it works.

Demand for Cryptocurrencywhat are your training modules like? The fee, process and duration?

Training is 30 days and we have a huge demand for it and because of this, we have set up world class training hubs in the three geopolitical zones Lagos, Abuja and Port Harcourt. So, demand is already there. We have a structure that accommodates different levels of trading the strategic portfolio building and robotics. Our modules cover; Introduction to Cryptocurrency Trading CPC 101 Cryptocurrency Masterclass Advanced Trading CPC 102 Trading Engaging Robotics CPC 103 People are already aware of what Cryptocurrency is; it will be wrong for us to say that people are not aware of it. The only thing is that there is a knowledge gap on how to use it and take advantage of the value in it, and that is what we are trying to close up.

Is there any risk attached to Cryptocurrency Is Bitcoin legal? And how secure is Bitcoin?

The idea of trading Cryptocurrency and the national legal framework is mutually exclusive. Trading on Cryptocurrency can be done when someone knows how to handle it. The reason for the legal framework is to protect the participators because when there is no third party that puts power in the hands of those that know the Whats and Hows. Bitcoin is safe and this knowledge is out there. You are your own bank. Records are protected by mathematical laws and are irreversible. The Blockchain technology protects its addresses and have histories on an open ledger, and is always available and transparent for anyone to confirm.

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Moradeyo: We Want to Close the Knowledge Gap on Crypto Currency - THISDAY Newspapers