It’s a foregone conclusion that we are now a global marketplace. The Internet has in large part made that possible. The purchasing of goods and services on the Internet is now in the Billions and expected to triple by 2010!
So, there are Buying and Selling transactions happening all over the world and in many instances those transactions are not conducted in the same country. We all know that those transactions can be completed in a number of ways. Credit Card and PayPal just to name two.
Now we get to the problem. (Yes, there are many problems with this, like Credit Card fees for the sellers are outrageous plus the risk of charge back. And for the Buyer using a Credit Card…How many times have we heard of compromised Credit Card Databases?)
Maybe you have also noticed that some businesses also accept some form of e-currency. E-gold, e-bullion, etc. there are hundreds of e-currencies. In basic terms e-currency is Internet Money. As Internet transactions increase so will the use of e-currency.
For this report we will just focus on the problem of currency matching between the Buyer and Seller. Perhaps you have purchased something on the Internet and noticed the seller will accept an e-currency of one form or another. If you owned that e-currency you could complete the transaction immediately no waiting for verification no hassle and no dealing with currency conversion! Otherwise you may experience any number of delays and/or costs associated with the conversion.
Think of it as the same intent as with the creation of the EURO Dollar. The purpose of the EURO is to eliminate currency exchange delays and fees by working in a common currency. E-currency is the same except it is for Internet transactions. Internet transactions are in the Billions of dollars and wildly expanding.
Unlike the Euro Dollar there are hundreds of different E-Currencies and growing. So just like any hard currency, there needed to be a universally accepted platform to exchange between currencies or to convert to hard cash. Hence the E-Currency Exchange.
The main advantages to E-Currency and the E-Currency Exchange are:
>> Much more secure versus Credit Card.
>> E-Currency exchanging is cheaper than Credit Card Fees.
>> No risk of Charge-Backs for the business
>> Instant acceptance of e-currency
>> And Many more
So in Summary the E-Currency Exchange is a Clearing House for exchanging E-Currency either into another e-currency or into hard cash. This is a fee-based transaction where the E-Currency Exchange charges a fee to provide the platform for the other parties to conduct their business.
And E-Currency is essentially, Internet Money much like the Euro Dollar is to the European Union. It just has hundreds of denominations based on hard currency or precious metal.
Wednesday, July 4, 2007
Chapter 2 - How Can I Profit From E-Currency Trading?
As stated in the previous chapter E-Currency Exchange provides the platform to exchange different e-currencies. This exchange can be between to differing e-currencies or a conversion of an e-currency into hard cash.
As with practically everything in this world (of value) there is supply and demand pressure for these e-currencies. If you own shares in a particular e-currency and the demand increases so will the value of your e-currency. From what I have seen, very few e-currencies go down and the ones that do have always come back.
The key is to diversify your portfolio and reinvest your gains in more shares. The demand for e-currency will continue to rise. The best part is yet to come.
(For the Trader in some of us. You can also profit from the fluctuation in the underlying currency)
Without going into a long detailed explanation, I will also share with you the concept of leverage as it relates to E-Currency. Once you set-up an account and buy e-currency shares you can then borrow against the value of those shares to buy more e-currency, withdraw funds or whatever. This is not like a credit card. You do not pay it back. This alone will cause your Portfolio to grow by 25%, 40%, 50% or more per month. Traders will think of this as Buying on Margin. That’s reasonable to an extent.
Combine that with the average return on the e-currency value by itself of .3% to .5% per day and I think you see the opportunity. It’s HUGE!! Compounding, Compounding, Compounding need I say more? Ideally, you will purchase e-currency every day!
How Much Money does it take to Invest in E-Currency Trading?
This is the part that blows me away. You can get started with $25. That’s all it takes to start buying e-currency. Keep in mind that most of the e-currencies are bought for less than 20 cents per share. I recommend starting with at least $200 dollars but that’s up to you. I have heard people hitting it hard with $50,000 but I’m not one of them!
And I would still follow the old but true statement “Only Trade with what you can afford to Risk”.
I mentioned in the Introduction that E-Currency has it’s own lingo like the world of Computers and Forex and many other areas. In this Chapter I have taken literary liberty and simplified the description of purchasing e-currency as ‘shares’. The true jargon for my use of ‘shares’ is Digots. Pronounced Dig-its. If you continue to pursue this as a viable investment you must understand the term digot. You would be purchasing Digots ok. It is derived from the combining of ‘digit’ and ‘ingot’. That’s all I know or care to know.
I think it is important to mention the other side of E-Currency Trading and that is being a ‘Merchant’. This is the act of providing liquidity to the e-currency traders when a transaction is requested. Let’s say a party wants to exchange an e-currency for another e-currency. This transaction requires float to make it happen. The Merchant who receives a fee for providing liquidity provides this float.
The profit potential is staggering because there are thousands of these transactions performed every day. Be aware that there are a number of prerequisites that must be met in order to become a Merchant one of which is you have to be in the program a minimum of 90 days.
And finally, this all comes at a price. Yes, there are fees involved that you must understand and plan for. (You wouldn’t open a stock or futures account without knowing the fees would you?) The same is true here. I will not go into the fee structure as it is beyond the scope of this report, but I will tell you there are monthly fees and transaction fees. No big deal if you are an informed investor.
In Summary:
We profit from E-Currency Trading by buying shares (digots) of e-currency and leveraging that value to buy additional e-currency. Further profits are realized from the long-term increase in e-currency value. The objective is to grow your portfolio as fast as possible. The leveraging aspect makes that happen.
The other side of the profit picture is to become a Merchant. The Merchant provides liquidity for processing of exchanges. This is very lucrative but requires meeting prerequisites. I have heard that there is currently a waiting list of those that have applied to become Merchants, so don’t make this a big factor on becoming involved in e-currency trading. Make the Portfolio your bread and butter and the Merchant status as icing on the cake.
As with practically everything in this world (of value) there is supply and demand pressure for these e-currencies. If you own shares in a particular e-currency and the demand increases so will the value of your e-currency. From what I have seen, very few e-currencies go down and the ones that do have always come back.
The key is to diversify your portfolio and reinvest your gains in more shares. The demand for e-currency will continue to rise. The best part is yet to come.
(For the Trader in some of us. You can also profit from the fluctuation in the underlying currency)
Without going into a long detailed explanation, I will also share with you the concept of leverage as it relates to E-Currency. Once you set-up an account and buy e-currency shares you can then borrow against the value of those shares to buy more e-currency, withdraw funds or whatever. This is not like a credit card. You do not pay it back. This alone will cause your Portfolio to grow by 25%, 40%, 50% or more per month. Traders will think of this as Buying on Margin. That’s reasonable to an extent.
Combine that with the average return on the e-currency value by itself of .3% to .5% per day and I think you see the opportunity. It’s HUGE!! Compounding, Compounding, Compounding need I say more? Ideally, you will purchase e-currency every day!
How Much Money does it take to Invest in E-Currency Trading?
This is the part that blows me away. You can get started with $25. That’s all it takes to start buying e-currency. Keep in mind that most of the e-currencies are bought for less than 20 cents per share. I recommend starting with at least $200 dollars but that’s up to you. I have heard people hitting it hard with $50,000 but I’m not one of them!
And I would still follow the old but true statement “Only Trade with what you can afford to Risk”.
I mentioned in the Introduction that E-Currency has it’s own lingo like the world of Computers and Forex and many other areas. In this Chapter I have taken literary liberty and simplified the description of purchasing e-currency as ‘shares’. The true jargon for my use of ‘shares’ is Digots. Pronounced Dig-its. If you continue to pursue this as a viable investment you must understand the term digot. You would be purchasing Digots ok. It is derived from the combining of ‘digit’ and ‘ingot’. That’s all I know or care to know.
I think it is important to mention the other side of E-Currency Trading and that is being a ‘Merchant’. This is the act of providing liquidity to the e-currency traders when a transaction is requested. Let’s say a party wants to exchange an e-currency for another e-currency. This transaction requires float to make it happen. The Merchant who receives a fee for providing liquidity provides this float.
The profit potential is staggering because there are thousands of these transactions performed every day. Be aware that there are a number of prerequisites that must be met in order to become a Merchant one of which is you have to be in the program a minimum of 90 days.
And finally, this all comes at a price. Yes, there are fees involved that you must understand and plan for. (You wouldn’t open a stock or futures account without knowing the fees would you?) The same is true here. I will not go into the fee structure as it is beyond the scope of this report, but I will tell you there are monthly fees and transaction fees. No big deal if you are an informed investor.
In Summary:
We profit from E-Currency Trading by buying shares (digots) of e-currency and leveraging that value to buy additional e-currency. Further profits are realized from the long-term increase in e-currency value. The objective is to grow your portfolio as fast as possible. The leveraging aspect makes that happen.
The other side of the profit picture is to become a Merchant. The Merchant provides liquidity for processing of exchanges. This is very lucrative but requires meeting prerequisites. I have heard that there is currently a waiting list of those that have applied to become Merchants, so don’t make this a big factor on becoming involved in e-currency trading. Make the Portfolio your bread and butter and the Merchant status as icing on the cake.
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