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Wednesday, April 2, 2014

AfriCoin Trading Guide



Introduction:
The AfriCoin Network has launched it's AFC trading site. The following information will express our trading goals and provide you with a step-by-step guide to getting setup and ready for trading.

Industry Issues:
By now most of you have heard about the Mt. Gox heist. You may also notice that new trading sites are entering the ring and boasting about their safe, sophisticated and secure trading technology. In the opinion of AfriCoin, the theft taking place in this new space, has nothing to do with secure technology. The problem at hand is plain and simple; site owners and employees working for the site owners can't help themselves.

In the world of fiat money, when a banking institution is robbed, there is FDIC insurance to recover your loss. Keep in mind, fiat money is printed by the government when they feel like it. With digital currency, there is no such recourse. The result, is you are responsible for the safe keeping of your digital coins.

Our AfriCoin trading site is a bare bones structure, designed with no bells and whistles. This was done on purpose. No one should become comfortable or feel safe and secure inside of any trading site. Get in, make your trades and get out.

With AfriCoin, we recommend a simple process. After your account is setup and your online wallet is created, the following should be the way you handle your transactions:

1. Plan your trading activity on paper before you transfer funds or coins to your account wallet.

2. Right before transferring coins to your account, make sure to generate a new wallet address. This should be done for each trading session.

3. Transfer your coins and execute your planned trades.

4. After completing your trades, immediately transfer your online wallet contents back to your personal desktop wallet.

Keep in mind that the steps listed above is for trading on the official AFC trading site.


AfriCoin trading concept and goal:


Acquire, hold and spend; sell in emergencies 

Acquire - Stage 1. The first step in making an investment in AfriCoin, is to acquire AFC. This can be done in three ways; purchasing via the AFC trading site with bitcoin, purchasing AFC via the AfriCoin Shopping Network and mining.

Hold - Stage 2. Cryptocurrency is a new innovation in computer science and software engineering. Just like early investors of IBM, Apple and Microsoft; you are betting on cryptocurrency becoming the biggest hit since the internet. When examining the Bitcoin block-chain,  its clear that many early adopters that still have their coins are now millionaires.

With AfriCoin, we are suggesting that you hold your investment as long as possible. Fiat currency is unsustainable and cryptocurrency is the wave of the future.

Spend -Stage 3 is where you begin to spend AFC on goods and services with participating merchants. Remember, once you reach this stage, you will want to achieve a favorable balance of trade. That means that you want to earn more AFC than you spend.

Sell - During the first two stages: acquire and hold; you only want to sell if you are in a state of emergency. Keep in mind the goal for AfriCoin is to establish a financial ecosystem. So be strong in holding your position. You want to "hold" until employers and merchants in your life, are paying with; and accepting AFC.


Strategic Investment Path - (SIP)
What we know is key:
  • Supply
  • Supply Rate
  • Trading Cycle
  • Starting Trade Value
  • Investment Goal Agreement (IGA)


Supply - AfriCoin has a maximum coin production of 17 million AFC; to be minted over a 140 year period.

Supply Rate - AfriCoin AFC will be released on a scheduled basis. The initial phase of production is, 50 AFC released per every 10 minutes. For the sake of the 24 hour trading cycle, the initial supply rate is 7,200 AFC per day.

Trading Cycle - 24 hour day.

Starting Trade Value (STV) - After monitoring the cryptocurrency market, AfriCoin has carefully set the starting AFC trading price at $10 per AFC.

Investment Goal Agreement (IGA) - An IGA is a non-binding agreement between AfriCoin AFC investors and the AfriCoin Open Source Society (AOSS). IGA functions as an agreed upon stated plan of action; for acquiring, holding, spending and selling AFC; for the purpose of sound investing, designed to minimize the effects of value volatility.

Basics of Supply and Demand
With a supply rate of 7,200 coins per 24 hour trading cycle; an STV of $10; and, a demand of 7,200 coins within the trading cycle, means that the supply has met the demand. The result is that the trading price will stay at $10 per coin.

If the demand doubles in the next trading cycle, so will the trading price. The same would be true if the demand was cut in half; the trading price would drop down to $5 per coin.

So with AfriCoin, you now know that 7,200 is the number to base your trading decision on. Do you see in the future, that the demand for AFC will exceed this mark? If so, acquire your coins on a regular basis and hold. Your job during this stage is to acquire, hold and spread the word! The only way to reach and surpass 7,200 is that a lot of people have to know about it and get in. 

AfriCoin is a new cryptocurrency and part of the investment goal agreement, is to acquire AFC at the starting trade value and hold, hold, hold. Unless you're in a state of emergency, don't sell your AFC for less than the STV. The potential and possibility of acquiring AFC now and then 30 million people come in after you, is great! But first, we have to secure our bets.

Do to the new IRS rules and regulations, the AfriCoin trading platform will be unavailable until the 1st of May 2014. Both mining and trading of AFC or any cryptocurrency has been greatly effected by this legal development. AfriCoin Network want's to make sure that we all stay in complete legal compliance. CLICK ON THE LINK BELOW:

One of the most important question concerning taxation and cryptocurrency has been answered by the office of Associate Chief Counsel (Income Tax & Accounting).  

If you have any questions about our AFC trading process or view point, leave your posts below.

Thank you!

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