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Crypto Videos

Master Doji Candlestick Trading! Unlock Your Potential!

https://youtu.be/C5LQwNyf0Sw

https://youtu.be/C5LQwNyf0Sw

Profiting from the crypto market – Doji candle trading

Doji candlesticks

The Doji star, better known as the Doji candlestick, is a unique candle that signals indecision in the crypto market. It shows that neither the crypto bulls nor bears are in control. However, not everything is that simple. The Doji candlestick has five variations. Each one of them shows something different. This is why it’s important to understand how to spot and read different Doji candle variations.

The Doji candlestick is characterized by its cross-like shape. This happens when a cryptocurrency pair opens and closes at the exact same level leaving a very small or even non-existent body while also exhibiting upper and lower wicks of equal length. While Doji mostly represents indecision in the market, it can also indicate a slowing momentum of an existing trend.

Doji candle in technical analysis

The Doji candle can be a very important piece of information as it can provide crypto traders with a moment to stop trading and reflect. However, it is important to consider the Doji candle in conjunction with other tools when timing your market exit point.

Doji candle variations

While the traditional Doji star shows indecisiveness, other variations can have different implications.
The picture on the screen will show different variations of the Doji candlestick, as well as its outcomes.

Trading the Doji candlestick

Traders use various ways to trade various Doji candlestick patterns. However, they all look for signals that complement the Doji candlestick in order to execute high-probability trades.

Trading the Doji star

 

The chart shows the Doji star appearing right at the bottom of an existing downtrend. This Doji pattern suggests that neither bulls nor bears are in control, meaning that a trend reversal is possible. At this point, it is crucial to take a look at supporting signals from other tools and indicators. This example makes use of the stochastic indicator, which is currently in the oversold territory, which adds to the bullish bias.

A popular Doji trading strategy involves looking for Dojis, which appear near support and resistance levels. The chart highlights the Dragonfly Doji, which appeared near trendline support. In this case, the Doji doesn’t appear at the top of the uptrend, so it doesn’t mark a trend reversal. The Dragonfly Doji, in this case, shows the rejection of lower-level prices. This potential bullish signal is further supported by the candle appearing near the trend support.

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Crypto Market Analysis

Daily Crypto Review, Apr 7 – BTC secures its place above $7,000; Altcoins surge with ETH leading the way

The cryptocurrency market had another great day while Bitcoin established its price above the $7,000 level. Altcoins increased in value significantly, with many of them surpassing Bitcoin’s gains. Bitcoin is currently trading for $7,330, which represents an increase of 3.92% on the day. Meanwhile, Ethereum gained an astonishing 15.08% on the day, while XRP gained 7.36%.

Digibyte took the position of today’s most prominent daily gainer, with gains of 20.97%. Swipe lost 1.16% on the day, making it the most prominent daily loser.

Bitcoin’s lost some dominance in the past 24 hours as many altcoins surpassed its gains. Its value is now 64.35%, which represents a 1.15% difference to the downside when compared to yesterday.

The cryptocurrency market capitalization increased considerably over the past 24 hours. Its current value is $204.99 billion. This value represents an increase of $7.87 billion when compared to the value it had yesterday.

What happened in the past 24 hours

The Bank of Korea has launched a new pilot program for its central bank digital currency. This launch came rather early as Korea was afraid some other country could take the lead in the industry.

The South Korean central bank reevaluated the CBDC proposal after closely observing what other developed nations, such as Japan and the US, were doing.

Honorable mention

Steem

Tensions between Steem and the Hive community continue to escalate as Steem executes a soft fork so it could freeze up to 20 accounts that were owned by the network’s former witnesses.

These frozen accounts hold around 17.6 million STEEM, which is worth approximately $3.2 million and equates to nearly 5% of Steem’s total supply.

_______________________________________________________________________

Technical analysis

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Bitcoin

Bitcoin bulls pushed the price up yet again, establishing the level above $7,000. On top of that, Bitcoin broke many resistance levels. Besides $6,850, which was broken yesterday,Bitcoin went through the 7,085 one as well. However, the $7,420 level stopped its uptick as there was simply no pressure to reach above that one too.


Bitcoin’s volume increased slightly, while its RSI on the 4-hour chart is deep in the overbought, standing at the value of 76.

Key levels to the upside                    Key levels to the downside

1: $7,420                                           1: $7,085

2: $7,750                                           2: $6,850

3: $8,000                                            3: $6,640

Ethereum

Ethereum had a fantastic day as ETH bulls pushed its price up more than 15%. The second-largest cryptocurrency pushed through $147.5 and $158 and $168 resistances, only to be stopped at the $178.6 resistance level. This parabolic move is pretty unstable and might require a pullback to stabilize.


Ethereum’s volume increased substantially, while its RSI level is unbelievably high, sitting at 89.5.

Key levels to the upside                    Key levels to the downside

1: $178.6                                             1: $168

2: $185                                              2: $158 

3: $193.6                                            3: $147.5

Ripple

XRP had a great couple of days, with its price constantly rising. However, the past 24 hours were especially great as XRP managed to break its $0.19 resistance level. The move was stopped by the $0.2 key level as there wasn’t enough bullish presence.


XRP’s volume almost doubled during the spike, while its RSI level went deep into the overbought territory, currently sitting at 85.

Key levels to the upside                    Key levels to the downside

1: $0.2                                                1: $0.19

2: $0.205                                            2: $0.165

3: $0.227                                             3: $0.147

Categories
Cryptocurrencies

Why you Should Consider Staking Cryptocurrencies

The most popular way to make money in the crypto industry is trading or mining. But recently, the two methods are proving difficult due to unprecedented market trends and the high electric power consumption associated with mining. 

The most popular way to make money in the crypto industry is trading or mining. But recently, the two methods are proving difficult due to unprecedented market trends and the high electric power consumption associated with mining. 

The most popular way to make money in the crypto industry is trading or mining. But recently, the two methods are proving difficult due to unprecedented market trends and the high electric power consumption associated with mining. 

Unknown to many, you can earn passive income from owning and holding a digital currency in a wallet for a fixed period of time. It’s pretty much like saving money in a fixed deposit account. The longer the money stays in the account, the more interest you earn. What makes coin staking even more lucrative is the fact that you can reinvest your earned coin tokens to reap more returns. So, you don’t have to study complex price charts or try to time the market. You earn guaranteed income regardless of market highs and lows. 

How the Coin Staking Process Works

Cryptocurrency staking is derived from the “Proof-of-Stake” (POS) algorithm. See, in the case of Proof-of-Work, the creation of new blocks, as well as validation of transactions, relies on solving complex mathematical calculations. This process relies heavily on the mining power of a GPU/CPU, which is why it’s an expensive method. The higher the mining power, the more coins rewards a miner earns. 

Rather than using expensive mining hardware, POS validates transactions and generates new blocks using coins stored in a wallet (network nodes). It’s important to note that not every coin holder is chosen to validate a transaction. Usually, users who have staked significant amounts of coins stand a better chance of being chosen as the next validators. 

Alternatively, you may consider joining a staking pool to increase your chances of validating new blocks and earning coin rewards. Basically, a staking pool works by merging resources of several coin holders to form a stronger staking power. The block rewards are then shared proportionally to an individual’s contribution. 

Advantages and Disadvantages of Coin Staking

In addition to being a more energy-efficient way of earning more coins, crypto staking also offers a wide range of benefits, including: 

☑️Protected Value

The coins mined using computational power risk losing their value over time due to the use of the mining hardware and ASIC. On the other hand, coins earned through staking do not increase or appreciate in value with time. Their value can only fluctuate with the market trends. 

☑️Reduces Centralization Risk

Coin staking eliminates the need for owning expensive mining equipment and other entry barriers such as the technical know-how and knowledge of the market patterns. This is especially the case with staking pools where the entry requirements are relatively low. As such, it offers an opportunity for more investors to join the network, thereby decentralizing its control. 

☑️Enhanced Security

Besides staking cryptos on an online wallet, there are a couple of blockchain networks that allow investors to stake coins in their cold wallets. This method is commonly known as cold staking, and it goes a long way into securing your earnings. Cold staking is particularly useful to stakeholders with large amounts of coins that would otherwise be susceptible to theft if stored in an online wallet.

☑️Reduces the Chance of a 51% Attack

The 51% attack is a common problem in the Proof-of-Work algorithm, where coin rewards are earned through mining. The attack refers to a case whereby a user or group of users controlling the majority of the mining power end up monopolizing the creation of new blocks. As such, they prevent the small-scale miners from completing blocks, which in turn denies them coin rewards. Besides reversing transactions, such attacks also lead to the outflow of small-scale miners as well as a decline of the coin’s value. 

Thanks to the Proof-of-Stake improved architecture, it’s almost impossible for one party to earn extra profits and become the majority holder. Even in the event where a perpetrator succeeds in controlling the largest share, the community can coordinate a hard-fork and delete the offending validator’s holdings. As a result, the price of the coin may increase due to the supply crunch. 

The only drawback of staking cryptocurrencies is that you’ll need to lock them for a fixed period without using them. In a bullish market, locking your coins for long may not be a huge problem. The problem occurs in bearish market conditions, especially when the amount earned through staking is not enough to cover the price depreciation. As such, it makes sense to stake a specific amount of coins depending on your risk tolerance. 

How to Get Started Staking Cryptocurrencies

Staking cryptocurrencies may sound easy and straightforward in theory, but it actually demands a considerable degree of input if you’re to make any reasonable returns. 

i) Choose a Coin to Stake

Finding a good Proof-of-Stake coin requires extensive research of the crypto market. At first, you may easily be lured by POS coins offering the highest percentage of returns. Usually, such coins end up being saturated in the market, making it hard for your stakes to maintain their value. Also, due to their high supply in the market, these coins tend to require a huge financial investment for one to begin staking. 

An ideal POS coin strikes a good balance between returns and the initial investment required. This way, it’s able to maintain a steady value making it suitable for generating passive income rather than being a speculative investment. 

ii) Determine the Minimum Requirements

All POS coins have a minimum number of tokens required in order to begin staking. Dash, for instance, requires about 1000 DASH coins while ETH requires not less than 32 coins. This amount can be brought down to attainable limits by joining a staking pool. But you should be prepared to pay a certain percentage of your rewards to the pool provider as payment for the service. 

Alternatively, you can also invest in coins such as PIVX, NEO, and PART that don’t require a minimum investment amount. However, they don’t pay as well as their counterparts. 

iii) Hot or Cold Staking

For those coins that require staking in an online wallet, you’ll need around-the-clock connection to the internet. A standard computer might serve you just right, preferably one that consumes less power. Small single-board computers such as Raspberry pi and PocketBeagle can also get the job done and even save much more on power bills. 

Cold staking is the best alternative if you want to eliminate the power and internet bills entirely. Coins staked in a hardware wallet are also safer than those in a hot wallet. 

Conclusion

As market volatility and the high cost of mining continues to turn away investors, coin staking is finding its place as an alternative method of earning income from the crypto market. Most importantly, through its long-term approach, coin staking puts the crypto-space on the road to maturation as more investors welcome the idea of earning returns from staking. 

Categories
Cryptocurrencies

Keepkey Hardware Wallet Review 2020: Is It Safe And Reliable?

On the KeepKey website, this USB-like crypto hardware wallet is described as the ‘next frontier of crypto security.’ But the Keepkey wallet is better known for its sleek design, especially its unique full OLED screen on the side of the USB that’s wide enough to fit the entire crypto address. Notably, the coin has also gained massive popularity by virtue of having Ken Hodler, a renowned crypto industry expert, as its Chief Engineer.

On the KeepKey website, this USB-like crypto hardware wallet is described as the ‘next frontier of crypto security.’ But the Keepkey wallet is better known for its sleek design, especially its unique full OLED screen on the side of the USB that’s wide enough to fit the entire crypto address. Notably, the coin has also gained massive popularity by virtue of having Ken Hodler, a renowned crypto industry expert, as its Chief Engineer.

On the KeepKey website, this USB-like crypto hardware wallet is described as the ‘next frontier of crypto security.’ But the Keepkey wallet is better known for its sleek design, especially its unique full OLED screen on the side of the USB that’s wide enough to fit the entire crypto address. Notably, the coin has also gained massive popularity by virtue of having Ken Hodler, a renowned crypto industry expert, as its Chief Engineer.

But does this hardware wallet live up to its reputation? We answer this by looking at its key features, security, and design in this KeepKey review. We will also look at how the hierarchical deterministic wallet fairs in the face of its peers with regards to ease of use and tell you if it is a reliable crypto store for your digital assets.

KeepKey Key features

  • Wide screen: KeepKey has one of the largest OLED displays that allows you to view the entire cryptocurrency address without scrolling.
  • Shapeshift integration: KeepKey hardware crypto wallet was developed by KeepKey in 2015 and proceeded to acquire Multibit, a bitcoin wallet company, in 2016. In 2017, KeepKey was acquired by Shapeshift and currently serves as the native hardware wallet for the crypto exchange. The integration makes trading and investment easy due to the ease of moving your assets in and out of the exchange.
  • Compatible with all OS types: The KeepKey wallet is also compatible with all the popular operating systems, namely Windows 8+, macOS 10.8+, and Linux. It is also compatible with Android smartphones and features a Google Chrome extension.
  • Software wallet integration: KeepKey integrates with such software wallets as MultiBit and Electrum, as well as the smartphone-based Mycelium for the smooth transfer of digital assets.
  • Sleek design: KeepKey has a smooth, sleek, and well-thought design crafted with the need to appeal and boost wallet security in mind.

Security features

First, in its long line of security features is the fact that KeepKey hardware crypto wallet stores your private keys offline. Additional security measures like:

☑️Pin code protection: The KeepKey hardware crypto wallet is pin protected. You get to set the pin during the wallet setup and will be required every time you want to access the wallet, view crypto balances, and initiate a transaction. 

☑️Number randomization: The number randomization feature of the KeepKey wallet randomly shuffles the PIN numbers from time to time to prevent malware from copying your code and using it and gaining access to your digital assets.

☑️Recovery sentence: The private keys for all your cryptocurrencies are stored in and will not leave the hardware crypto wallet. During setup, however, KeepKey provides you with a recovery seed of 12-24 words unique to your device that you can use to retrieve the private keys in case the hardware wallet is stolen, lost, or damaged.

☑️Passphrase: In addition to the pin code and the recovery word, KeepKey also provides you with the option of a passphrase that you can attach to the recovery phrase. Unlike most of the other KeepKey security features, however, passphrase doesn’t have a recovery, and losing it may mean the forfeiture of your private keys. The company, therefore, advises its KeepKey wallet users to only use this feature if they understand the consequences of its use.

☑️Physical button: KeepKey hardware wallet also has one button that comes in handy during the setup stage but also doubles up as a security tool. Every transaction involving the private keys in your wallet has to be authorized by long pressing this button. It ensures that even if a hacker was able to remotely access your wallet, they wouldn’t be able to transfer your digital assets as long as you have access to the device.

☑️Desktop app: The KeepKey wallet has a digital app that is vital during the setup process by completing the single button on the wallet.

Currencies supported

KeepKey supports the seven most popular cryptocurrencies available today that include Bitcoin, Litecoin, Dogecoin, Bitcoin Cash, Dash, Bitcoin Gold, Ethetreum, and DigiByte. In addition to these, the wallet supports over 40 ERC-20 tokens and coins, including Tether and TrueUSD stable coins. The numbers are too low when compared to equally competitive wallets that support 1000s of coins and tokens.

  •         AELF (ELE)
  •         Aeterenity (AE)
  •         Aragon (ANT)
  •         Augur (REP)
  •         Basic Attention Token (BAT)
  •         Binance Coin (BNB)
  •         Bancor (BNT)
  •         Civic (CVC)
  •         Storj (STORJ)
  •         com (MCO)
  •         CyberMiles (CMT)
  •         Dai (DAI)
  •         Decentraland (MANA)
  •         DigixDAO (DGD)
  •         District0x (DNT)
  •         Edgeless (EDG)
  •         FirstBlood (1st)
  •         FunFair (FUN)
  •         Gifto (GTO)
  •         Gnosis (GNO)
  •         Golem (GNT)
  •         ICONOMI (ICN)
  •         IOST (IOST)
  •         iExec (RLC)
  •         TrueUSD (TUSD)
  •         Maker (MKR)
  •         Matchpool (GUP)
  •         Melon (MLN)
  •         Metal (MTL)
  •         Numeraire (NMR)
  •         OmiseGO (OMG)
  •         Polymath (POLY)
  •         Populus (PPT)
  •         Ripio Credit Network (RCN)
  •         SALT (SALT)
  •         SingularDTV (SNGLS)
  •         SpankChain (SPANK)
  •         Status (SNT)
  •         0x (ZRX)
  •         0xBitcoin (0xBTC)

Keeepkey is nevertheless trying to catch up and recently integrated the MyEtherWallet into its platform that makes it possible for its users to access and hold 1000+ coins and tokens online.

Keep key wallet cost and other fees

When KeepKey first hit the market in 2015, it was arguably one of the most expensive hardware wallets available at the time, priced at $239. With the successive acquisitions and integration of different technological solutions and exposure to the global markets, however, KeepKey has gradually reduced its price to the relatively affordable and highly competitive $49.

You will not incur any cost for the use or maintenance of the KeepKey hardware crypto wallet. You will only be required to part with the regular trading fees if you chose to trade on their integrated shapeshift exchange. 

Setting up the KeepKey wallet:

Configuring the wallet:

Our review found setting up the hardware wallet and readying it for use relatively complicated. The fact that the device only has one button especially makes navigation through the device monitor highly tedious. You have to use at least the KeepKey key chrome app and the KeepKey chrome extension to effectively configure the wallet and set up such security parameters as the pin code and passphrase as well as the generation of the recovery sentence. The process is quite straightforward, requires little to no guidance, and takes less than five minutes overall.

Sending and receiving coins:

The process of sending and receiving coins to your KeepKey hardware wallet is slightly different from the one adopted by other online or hardware wallets. Unlike most online transactions, involving software wallets where the transaction is completed online, KeepKey transactions have to be verified and approved on the hardware device before they are marked as complete on the blockchains.

When sending coins from the wallet, for instance, you start by logging in to your KeepKey client account on the KeepKey chrome extension. Click on the cryptocoin you wish to send, and the screen displays the sending page where you key in the receiver’s address and amounts you wish to send. You will then receive a sender’s prompt on the device display requesting you to authorize the payment by long-pressing the wallet’s button.

Note: The wallet has its default crypto account as Bitcoins, and you, therefore, have to create an account for any other cryptocoin you wish to hold here.

Receiving payments into your KeepKey wallet is equally straightforward. Start by logging in to your KeepKey client account and selecting the receive coin option. The client and the wallet device will both display your wallet address and QR code that you need to copy and send to the person from whom you seek to receive funds.

KeepKey hardware wallet pros and cons:

Pros:

  • Keepkey has a modernized, sleek, and attractive design
  • Keepkey stores all your digital assets securely and offline
  • The hardware wallet embraces layered security features that include a randomized pin code
  • At $49, the wallet is competitively priced and offers value for money

Cons:

  • Has a complicated setup process that requires a third-party browser extension
  • Has no recovery feature for the passphrase that if lost makes your wallet inaccessible
  • Its wide display makes the wallet less portable than its competitors
  • One may consider their support of 40 digital coins limiting

KeepKey wallet compared to competitors:

When compared against some of the most popular online crypto wallets like Coinbase and eToro, Keepkey’s outmatches them when it comes to keeping digital assets secure. But the two blow it out the waters with regards to ease of use. And while they all are integrated into pretty popular crypto trading platforms, KeepKey may be said to have a rather complicated send/receive funds functionality.

When stacked against equally popular hardware wallets like Trezor and Ledger Nano, Keepkey’s sleek design, especially the massive display, carries the day. It is also fairly priced when compared to most of the hardware crypto wallets. Its single button that complements its sleek design is, however, its biggest downfall when it comes to ease of use. The two are also relatively easier to install and set up.

Verdict: Is the KeepKey wallet worth buying?

Keepkey is an expertly crafted hardware wallet for cryptocurrencies with solid security features. It particularly outfoxes competition with its wide display and a multi-layered security system. Its biggest shortcomings stem from its limited support of cryptocurrencies and altcoins as well as a relatively complicated setup process. These have nonetheless not stopped it from topping the lists of most popular hardware crypto wallets, and we believe that if KeepKey made an effort to support more crypto coins, it would compete more favorably with the dominant hardware wallets.

Categories
Crypto Videos

Make Crypto Trading Profits Using Forex Techniques – The Three Line Strike!

https://youtu.be/lSp0UuMZxM4

https://youtu.be/lSp0UuMZxM4

 

Generate profit trading cryptocurrencies – Three Line Strike

Many traders rely only on indicators, while only a few take into consideration patterns that appear in the market. Even fewer people are spotting small candlestick patterns, which they might think of as insignificant. However, they are far from insignificant.

Three Line Strike

A three-line strike represents a continuation group of candlesticks that is formed by three candlesticks in the direction of a trend, then followed by a final candlestick that pulls back to the starting point.
There are two versions of a three-line strike: Bullish/Bearish

The bullish three line strike consists of three strong bullish candlesticks that close higher than the last one, then followed by a final candle, also known as the strike candle. The strike candle goes in the opposite (bearish) direction and opens at or higher than the third candlestick, but closes below the open of the first candle in the pattern.

A bearish three line strike is everything, but in reverse, three strong descending candles that close progressively lower followed by a bullish strike candlestick. The strike candle opens at or lower than the third candle close and closes above the first candlestick open.

Validating the pattern

To validate this pattern, we need to confirm that the first three candles are at least of average size. They need to have a defined stair-case like appearance in order to be reliable.
A bullish three line strike should be treated as an extension of the three white soldiers pattern, while a bearish three line strike as an extension of the three black crows pattern.

Market Sentiment

The assumption behind the three-line strike amongst traders is that the strike candle shows a temporary correction that will not be prolonged, while the main trend will follow the first three candles. The pullback of the strike candle is a reaction to the strong move to one direction in the first part of the pattern.

Buyers should use the low point of the pattern to create an entry opportunity. Sellers, on the other hand, should use the high point of the pattern to create an opportunity to sell high.

Three Line Strike Reliability

The three-line strike is not a very common pattern in cryptocurrencies. However, it is quite reliable when paired up with volume indicators, and traded with the larger time frame trend. A thing to note is that the bearish three line strike is slightly more reliable than the bullish one when it comes to crypto trading.

While the bearish pattern was accurate over 60% of the time, the bullish one was accurate, only 50% of the time.
Bullish Three Line Strike – Example
The example will show a chart which created a bullish three line strike. The first three candlesticks lined up in a three white soldiers formation, signaling reliability.

A buy signal was confirmed when the low of the strike candle reached below the first candle open.
Bearish Three Line Strike – Example
This example will show a chart that illustrates a bearish three line strike. The high of the strike candle does not reach the open of the first candle, but remains within tolerance levels, and is close enough to be classed as a bearish continuation.

Categories
Crypto Daily Topic

Pot and Crypto: Why Should the Cannabis Industry Embrace Blockchain? 

With an anticipated growth of about $30 billion and an expanding job market, it’s evident that the cannabis industry is set to become one of the strongest pillars of global economies. This explains why various legislatures are legalizing marijuana both for recreational and medical use. 

With an anticipated growth of about $30 billion and an expanding job market, it’s evident that the cannabis industry is set to become one of the strongest pillars of global economies. This explains why various legislatures are legalizing marijuana both for recreational and medical use. 

With an anticipated growth of about $30 billion and an expanding job market, it’s evident that the cannabis industry is set to become one of the strongest pillars of global economies. This explains why various legislatures are legalizing marijuana both for recreational and medical use. 

But the major strides in the industry have not been without pain points. From the ever-changing regulatory rules, unreliable payment solutions, to inefficient supply chain management – all these create uncertainty within the industry. As a result, the industry hasn’t been successful at drawing in steady investors.  

As blockchain continues to find use in various industries, the technology will prove to be even more useful in the cannabis market to help entrepreneurs mitigate some of the problems plaguing the industry.

Here are some of the solutions blockchain can offer 

Monitoring Purchases

In states where marijuana is legal, there is a maximum limit that consumers can buy at any given time. The limit is set to curb the resale of marijuana in the black market by making it costly to buy marijuana in bulk. But, there are loopholes in this rule whereby a consumer can buy the maximum daily limit of marijuana in one dispensary, and then head to another to buy some more. 

When this happens, a retail dispensary risks going out of business as the state can revoke its license. Moreover, the extra amount of marijuana purchased ends up being resold in the black market, resulting in a loss of revenue in terms of taxes. 

By using blockchain to record and verify purchases, marijuana dispensaries can ensure that their customers don’t exceed the purchase limit set by the local government. These records are tamper-proof and transparent for all retailers to see, especially those operating in the same blockchain network. The technology can be integrated into consumer verification IDs and inventory management systems to prevent retail operators from acting in non-compliance. 

Quality Assurance

For medical marijuana users, the quality of CBD products is highly appreciated in order to reap the full benefits of the hemp plant. Unfortunately, quality control bodies such as the Food and Drug Administration (FDA) consider CBD products as a supplement. As such, they don’t scrutinize the labels to authenticate the quality of these products. 

To guarantee quality at all times, cannabis businesses can use blockchain to store all the information of a hemp plant right from its seedling stage to a saleable product. This includes the laboratory results indicating the correct concentration of THC and CBD in a product. Such levels of transparency go a long way in winning consumers’ trust. 

Big corporations such as CVS pharmacy, Walgreens, and Walmart who are strict on the quality of CBD products, can also leverage blockchain to ascertain if a product is up to standard. Doing so will make it difficult to corrupt the quality of a product and eliminate the tedious paperwork involved in the process. 

Payment Processing

Given the dynamic nature of the laws regulating the cannabis industry, most banks shy away from providing services to the industry players. For starters, the lack of banking services has forced the industry to operate as a cash-only business. As is often the case, businesses operating on fiat currency only are highly susceptible to theft and fraud. Also, as sales increase, accounting for the high volume of cash becomes hectic, creating inaccurate financial statements that lead to taxation hurdles.  

In this case, cryptocurrencies can be used as a payment method, ensuring fast, secure, and affordable transactions among industry stakeholders. All the payments will be recorded in a secure and distributed ledger system that helps in auditing as well as maintaining tax liability. 

Legalization of Marijuana

So far, only a handful of nations have legalized marijuana. Considering the proven medical benefits of the hemp plant, it’s unfortunate that some countries still criminalize pot. But, there is a likelihood that some would be open to legalizing weed as long as its use is regulated by law. 

The integration of blockchain technology into the cannabis industry will make it easy for everyone in the supply chain to abide by all the regulations put in place. The authorities will be in a position to curb illegal marijuana businesses as well as limit its use to prevent abuse. So, marijuana will be sold to the right people for the right use, contributing to its legalization.  

Decentralize Electronic Medical Record

Electronic Medical Records (EMRs) promise efficiency in the health sector as long as they are properly integrated into the system. But it can be concluded that the health sector hasn’t achieved much success in leveraging EMR to offer medical services. A good example is the cannabis industry where some individuals have acquired marijuana medical cards by forging fake health records

These individuals cause an increase in the demand for marijuana due to their impulse buying practices. Consequently, those who have legitimate medical conditions end up paying more for medical marijuana and may even fail to get some. 

Blockchain-based EMRs can help ensure that medical marijuana cards are given to those who rightfully deserve them. As an immutable and distributed ledger system, any patient’s data is permanently recorded, such that it would be impossible for unauthorized persons to distort it. The record can also be shared across various hospitals to help doctors and marijuana retailers determine the patients who truly need medical marijuana. 

Use Cases of Blockchain in Cannabis 

Currently, there are already more than ten blockchains uniquely designed for the cannabis industry. Some of them even offer their own cryptocurrency to help meet the banking needs of the cannabis industry. 

i) Paragon 

This network is committed to enhancing transparency from seed to sale tracking, as well as coming up with regulatory solutions in the cannabis industry. The network even has an in-house laboratory that works to ensure quality is maintained. Its crypto coin, Paragon Coin, can be used to make payments within the industry supply chain.

ii) Potcoin

Potcoin is mainly focused on offering financial services to the marijuana industry. It allows the transfer of funds via a digital wallet, from customers, businesses to suppliers. 

iii) CanSoS

CanaSos is a social network platform that helps consumers locate nearby retailers and discover new CBD products and marijuana strains. The users can review marijuana products, answer questions, and earn points that can be redeemed for PerkCoins. The coins can be used to buy marijuana or withdrawn for fiat currency. 

Conclusion 

The cannabis industry is a relatively new market that is yet to be widely accepted in all parts of the world. The same can be said about blockchain, which makes the two a perfect match for each other. As the marijuana market expands, blockchain is well poised to solve the current problems limiting the industry’s growth and even the unprecedented ones on the horizon. 

Categories
Crypto Market Analysis

Daily Crypto Review, Apr 6 – Bitcoin above $7,000 – but will it stay there?

The cryptocurrency market had quite a good day as volume increased, and bulls gathered. Bitcoin led the market up to new highs and finally broke the $7,000 mark. It is currently trading for $7,067, which represents an increase of 4.33% on the day. Meanwhile, Ethereum gained 5.27% on the day, while XRP gained 3.39%.

The cryptocurrency market had quite a good day as volume increased, and bulls gathered. Bitcoin led the market up to new highs and finally broke the $7,000 mark. It is currently trading for $7,067, which represents an increase of 4.33% on the day. Meanwhile, Ethereum gained 5.27% on the day, while XRP gained 3.39%.

The cryptocurrency market had quite a good day as volume increased, and bulls gathered. Bitcoin led the market up to new highs and finally broke the $7,000 mark. It is currently trading for $7,067, which represents an increase of 4.33% on the day. Meanwhile, Ethereum gained 5.27% on the day, while XRP gained 3.39%.

Zilliqa took the position of today’s most prominent daily gainer, with gains of 16.97%. Steem lost 4.14% on the day, making it the most prominent daily loser.

Bitcoin’s dominance stayed at almost the same place over the weekend. Its value is now 65.5%, which represents a 0.23% difference to the downside when compared to Friday.

The cryptocurrency market capitalization increased greatly over the weekend. Its current value is $197.12 billion. This value represents an increase of $7.33 billion when compared to the value it had on Friday.

What happened in the past 24 hours

Michael Stay, a former Google’s software engineer as well as the current CTO of a DApp company Pyrofex, claims to have successfully hacked a certain zip file containing the private keys leading to over $300,000 in Bitcoin (BTC).

Honorable mention

Ripple

A new blockchain course that the Australian National University law school is offering this year now has full support from Ripple’s University Blockchain Research Initiative.

This partnership between ANU and UBRI will work on finding out more about how blockchain can disrupt the legal industry.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin bulls pushed to reach new highs all throughout the weekend. The price went far above the resistance line of $6,850 three times, but came back quickly the past 2 times. This is the third time that its price has crossed the resistance. However, all three times, there wasn’t enough buying power to reach above $7,085. If Bitcoin doesn’t hold its gains, bears might get courageous and attack the downside.


Bitcoin’s volume increased compared to the previous week, while its RSI level on the 4-hour chart is 65.

Key levels to the upside                    Key levels to the downside

1: $7,085                                           1: $6,850

2: $7,420                                           2: $6,640

3: $7,750                                            3: $5,960

Ethereum

Ethereum followed Bitcoin in its jump up and even outperformed it. The second-largest cryptocurrency passed its $139 resistance level (for the first time, unlike Bitcoin passing through for the third time) and reached the level of $151. However, that level was quickly denied. Ethereum is still fighting to stay above this (now) support line as it enters the overbought territory.


Ethereum’s volume increased during the spike, while its RSI is currently in the overbought territory (at the value of 72).

Key levels to the upside                    Key levels to the downside

1: $168                                                1: $128

2: $178.6                                            2: $122.5 

3: $185                                                3: $100

Ripple

Even though XRP was the cryptocurrency that gained the least out of the top3, it still performed extremely well. XRP spent the weekend consolidating and preparing for a move, which is now happening. The third-largest cryptocurrency by market cap is reaching higher levels but is currently stuck around $0.185.


XRP’s volume increased when compared to the prior week, while its RSI level on the 4-hour chart reaches near the overbought territory, with the current value of 68.

Key levels to the upside                    Key levels to the downside

1: $0.19                                             1: $0.165

2: $0.2                                               2: $0.147

3: $0.205                                             3: $0.1

Categories
Crypto Videos

Master Crypto Trading With The 3 Black Crows Formation!

https://youtu.be/jLj1_i4IbGQ

https://youtu.be/jLj1_i4IbGQ

Profiting from the crypto market – Three Black Crows pattern

Three black crows are a pattern that indicates a bearish reversal of an uptrend. The black crow formation consists of three consecutive candlesticks that each opened within the read body of the previous candle and closed at a lower price than the previous candle. Traders often use this pattern in conjunction with other tools and indicators to confirm a reversal.

Three Black Crows – Explained

Three black crows is a visual pattern, which means that there are no calculations included to create the indicator. This pattern occurs when the bears overtake the bulls during a trending market. It is important to note that the candlesticks should have short to no shadows.
Being a visual pattern, three black crows are best used as a sign to seek further confirmation from other trading tools. The confidence a trader can put into the pattern greatly depends on how well-formed the pattern actually forms. If the shadows are long, it may simply imply that a minor shift in momentum will occur between the bulls and the bears.

Using volume indicators can make the three black crows pattern much more accurate. Volume during the uptrend that leads up to the pattern should be relatively low, while the three candle black crow pattern comes with high volume.

Three Black Crows vs. Three White Soldiers


Three black crows pattern has a complete opposite, which is the three white knights pattern. This pattern looks and acts exactly the same, but is completely reversed. It signals a bear to bull reversal and has three bullish candles instead of bearish ones.

Notable info

If the three black crows pattern formation involves a significant move to the downside, traders should be careful and look for oversold conditions caused by market instability. To mitigate this threat of pattern failure, we have to use an oscillator that can help with confirmation of the market reversal.

Categories
Crypto Daily Topic

Blockchain and Healthcare

With blockchain technology taking space in all manner of industries, we will inevitably talk about blockchain application in one of the most crucial sectors – healthcare. If there ever was an industry that could benefit from blockchain’s immutability, transparency, and centralization, it is healthcare.

With blockchain technology taking space in all manner of industries, we will inevitably talk about blockchain application in one of the most crucial sectors – healthcare. If there ever was an industry that could benefit from blockchain’s immutability, transparency, and centralization, it is healthcare.

With blockchain technology taking space in all manner of industries, we will inevitably talk about blockchain application in one of the most crucial sectors – healthcare. If there ever was an industry that could benefit from blockchain’s immutability, transparency, and centralization, it is healthcare.

However, currently, there is not much to write home about – as far as healthcare and blockchain are concerned.

In this guide, we are going to take a look at the ways in which blockchain would disrupt the healthcare space. We’ll also look at what the situation is like right now, as well as projections for the future.

Healthcare and Innovation

To put it mildly, the healthcare industry has been slow with innovation. That may sound controversial – given the incredible advancements in healthcare and medicine over the years. But when you look at different industries, the healthcare ecosystem still seems to be operating the same way it did years ago.

So what do we mean by saying innovation has been slow in this sector?

When it comes to vertical innovation, there’s no arguing that the space has done excellently well. But the same cannot be said about horizontal innovation.

Let’s demystify this below.  

Vertical Innovation vs. Horizontal Innovation

Vertical innovation refers to industry-specific innovation, while horizontal innovation means innovation that can be adopted by any industry. 

When we think of advances in diagnoses and treatment of different conditions, it is very clear the healthcare industry has done so well in vertical innovation, but it sorely lacks in horizontal innovation. 

Things like APIs and cloud computing are examples of horizontal innovation that any multiple fields can adopt to make their processes more efficient. The healthcare industry isn’t big on that – considering most hospitals still employ files and papers to document information.

Blockchain as a Horizontal Innovation

A blockchain is a distributed ledger that is managed by multiple computers and with no single authority overseeing its transactions. It has blocks of data linked to each other through state-of-the-art encryption, and any information entered in it cannot be deleted by anyone. Blockchain has become such as an important technology due to these reasons: 

  • It is decentralized – no single authority or entity calls the shots 
  • Data is cryptographically secured
  • No one can delete the information after it goes on the blockchain
  • It is completely transparent, meaning anyone in the network can confirm information whenever they want to. 

Public and Private Blockchains

There are two main types of blockchains: public and private blockchains. Both types of blockchains provide a peer-to-peer, decentralized, and immutable ecosystem. 

Now, on public blockchains, everyone who has access can participate in the network. Public blockchains also have storage and scalability issues that impede them from storing large volumes of data or cause them to have high latency – e.g., Bitcoin has a latency of 10 minutes. This latency is potentially life-threatening in the context of healthcare. 

Also, public blockchains require immense energy to solve computational puzzles. It is inconceivable that healthcare institutions would spend huge sums of money to foot such massive power bills. Also, public blockchains, by virtue of being public are open, are accessible to anyone. This is obviously a no-no in healthcare since sensitive patient data is involved.  

As you can see, public blockchains are impractical for application in healthcare. 

Enter private blockchains, which have the following features:

  • Fast transactions
  • Privacy of patient healthcare records
  • Tight security

 Courtesy of these features, private blockchains are more fit – and practical, for the healthcare industry.  

What Can Blockchain Do For the Healthcare Space?

1. A New Catalyst for Interoperability in Healthcare

The importance of interoperability in healthcare cannot be overstated. It could, for instance, solve the problem of mismatched patience Electronic Health Records, which has led to detrimental mistakes on patient care in the past.

With blockchain, healthcare personnel will be able to benefit from secure access to electronic healthcare record information sans the time-consuming involvement of intermediaries.

2. Cost-effective and Seamless Exchange and Access of Information

Blockchain would support the near real-time processing of requests, as well as enable the faster and more secure exchange of patient health records between and among concerned parties. It would also reduce overhead costs and, in the process, provide an economic incentive for healthcare organizations.

3. Smart contracts

The current healthcare system is riddled with bureaucracy and third-party intermediaries that contribute to expensive costs. Transactions are also fraught with inconsistency and manipulation. Blockchain-based smart contracts would solve this by removing costly intermediaries, as well as inconsistent rules which reduce trust. By providing immutable, transparent records, smart contracts would inject much-needed transparency in the healthcare ecosystem.

Other Advantages of the Healthcare Blockchain

Apart from these use cases, there are other advantages the healthcare ecosystem could obtain from integrating blockchain. 

i) Thanks to the immutability of blockchain records, patients can give access to their health records to healthcare personnel without the fear of it being altered or tampered with. The integrity of patient records will remain intact, no matter how many people get access to it. 

ii) Medical records added on the blockchain will remain completely secure

iii) Patients have control over who gets access to their medical data. Any party who wishes to get access to the data has to ask permission from the patient.

iv) The blockchain can be used creatively to incentivize patients to stay healthy, to follow a certain healthcare plan, or to participate in healthcare research. They can be rewarded with tokens if they do so.

v) Blockchain can help pharmacy companies track drugs from the point of origin. This would help stamp out the common stealing of drugs from the supply chain that is done so as to be sold to illegal consumers. It would also eliminate fraud, such as falsified medication.  

vi) A blockchain could help various medical research institutes around the world to consolidate their research in one place for easier management and reference. 

vii) Blockchain could help stamp out insurance fraud that is so prevalent in the healthcare industry. This happens when patients and unscrupulous providers provide falsified claims to receive payable benefits. 

Challenges and Considerations

For blockchain to be integrated fully in blockchain, it needs to support the following: 

  • A ubiquitous and secure infrastructure 
  • A verifiable and authentic identity database for participants
  • Consistent and reliable authorization of access to health information 

However, the current blockchain set up cannot adequately support these requirements because of limitations in security, privacy, storage, speed, and interoperability. 

Blockchain presents numerous opportunities for healthcare, but it simply hasn’t yet reached the desirable scale in which it can be applied. For this reason, several technical challenges need to be first addressed before we can harness blockchain for the benefit of healthcare. 

The Future

While the healthcare industry is far from adopting blockchain full-scale, it looks like the signs are pointing a future where that will be.

For instance, a report by BIS research shows that if the healthcare industry incorporates blockchain, it can save up to $100 billion per year by 2025. Blockchain technology would save the industry in costs related to data breaches, IT, operations, support functions, personnel, and counterfeit and insurance

The report also stated that “a global blockchain in the healthcare market is expected to grow at a compound annual growth rate of 63.85% from 2018 to 2025. The use of blockchain for healthcare will contribute to the largest market share throughout the forecast period, reaching a value of $1.89 billion by 2025…”

According to the report and the rate at which blockchain is currently being recruited for all types of industries, it makes sense to be optimistic about the future of blockchain in healthcare.  

Conclusion

There is no doubt that blockchain promises unique opportunities and a transformative future for healthcare. It can help reduce complexities, streamline processes, enable secure information keeping, enable trustless coordination among various parties, and reduce costs. It’s time for the healthcare ecosystem to adopt this technology that will help it realize much-needed horizontal innovation.

Categories
Crypto Market Analysis

Daily Crypto Review, Apr 3 – Bitcoin over $7,000? Is the downtrend finally over?

The cryptocurrency market had another, even more, successful push to the upside. The upswing was led by Bitcoin, which broke its immediate resistance. However, many altcoins outperformed it during the spike. Bitcoin is currently trading for $6,820, which represents an increase of 2.68% on the day. Meanwhile, Ethereum gained 3.99% on the day, while XRP gained 1.43%.

The cryptocurrency market had another, even more, successful push to the upside. The upswing was led by Bitcoin, which broke its immediate resistance. However, many altcoins outperformed it during the spike. Bitcoin is currently trading for $6,820, which represents an increase of 2.68% on the day. Meanwhile, Ethereum gained 3.99% on the day, while XRP gained 1.43%.

The cryptocurrency market had another, even more, successful push to the upside. The upswing was led by Bitcoin, which broke its immediate resistance. However, many altcoins outperformed it during the spike. Bitcoin is currently trading for $6,820, which represents an increase of 2.68% on the day. Meanwhile, Ethereum gained 3.99% on the day, while XRP gained 1.43%.

Swipe took the position of today’s most prominent daily gainer, with gains of 109.03%. Energi lost 5.453% on the day, making it the most prominent daily loser.

Bitcoin’s dominance increased half a percent in the past 24 hours as it was the one leading the push and gaining the most in value. Its value is now 65.73%, which represents a 0.5% difference to the upside when compared to yesterday.

The cryptocurrency market capitalization increased in the past 24 hours. Its current value is $190.79 billion. This value represents an increase of $5.49 billion when compared to the value it had yesterday.

What happened in the past 24 hours

The largest crypto exchange by market volume, Binance, has acquired the most popular crypto indexing website, CoinMarketCap. The purchase was made in secret, which means that the price is still undisclosed.

Binance CEO Changpeng Zhao announced that the deal officially closed March 31, even though a verbal agreement was there “a few months ago.”

Honorable mention

Stellar Lumens (XLM)

The Stellar Development Foundation has shown that it is thinking of the endangered during the times of crisis. It decided to dedicate 2.5 million Lumens to 6 non-profit organizations to help the coronavirus crisis. On top of that, they are very vocal in calling out the community to help.

The foundation will start the initiative off by donating 100,000 Lumens to each of the six charities, while the remaining funds will be used to match the community contributions on a 1-1 basis throughout the month of April.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin bulls finally mustered enough strength to reach above the immediate resistance of $6,640, which was contested many times over the past couple of days. The push was gradual rather than sudden, and BTC managed to even contest the next resistance level ($6,850) which held up well. However, one candle brought extreme volume and pushed Bitcoin just below $7,300 just briefly.


Bitcoin’s volume increased when compared to the previous days, while its RSI level is hovering below the overbought territory.

Key levels to the upside                    Key levels to the downside

1: $6,850                                           1: $6,640

2: $7,085                                           2: $5,960

3: $7,420                                            3: $5,000

Ethereum

Ethereum had a clean, steady run to the upside, with its price going from $130 all the way up to $143, where it is trading at the time of writing. The second-largest cryptocurrency by market cap finally had an increase in volume after a long period of low-volume trading. The price, at one point, briefly spiked all the way up to the $150 but was quickly brought back down.


Ethereum’s RSI level is currently in the overbought territory on the 4-hour chart, sitting at around $74. A few resistance levels have been added, but they have not been confirmed as key levels yet.

Key levels to the upside                    Key levels to the downside

1: $168                                                1: $128

2: $178.6                                            2: $122.5 

3: $185                                                3: $100

Ripple

Ever since XRP has left the descending trend, it has been quite stable and upside-oriented. However, its gains did not match the rest of the crypto market. This is the case with today’s gains as well, as XRP gained the least out of the top3 cryptos. However, the move to the upside was steady, and the volume was increased.


XRP’s volume increased multiple times during one 4-hour candle, while it was slightly increased over the rest of the day. Its RSI level is currently at 61.

Key levels to the upside                    Key levels to the downside

1: $0.19                                             1: $0.165

2: $0.2                                               2: $0.147

3: $0.205                                             3: $0.1

Categories
Crypto Videos

Trading Crypto With The Three White Soldiers Pattern! Making Consistent Money

https://youtu.be/lJ6OJRSlq98

https://youtu.be/lJ6OJRSlq98

Profiting from the crypto market – Three White Soldiers pattern

Three white soldiers is a candlestick pattern used to predict current downtrend reversals in a pricing chart. The pattern is made of three long-bodied candlesticks that open within the previous candle’s body and close over the previous candle’s high. The candlesticks should not have long shadows.

The three white soldiers pattern suggests a strong market sentiment change. If a candle is closing with small to no shadows, it suggests that bulls have taken over the price and kept it at the top of the range.

Trading the three white soldiers pattern

As the three white soldiers is a bullish visual pattern, it is mostly used as an entry or exit point. Traders wanting to short a cryptocurrency look to exit, while traders who want to go long on a crypto see three white soldiers as an entry point.

When trading the three white soldiers pattern, make sure to take into consideration that the strong move higher might create temporary overbought conditions. That’s why this pattern should be paired up with oscillators, which may confirm the market reversal.

Three White Soldiers vs. Three Black Crows


The three white soldiers’ opposite pattern is the three black crows pattern. Three black crows have all the same attributes of the three white soldiers but in reverse. It consists of three consecutive candlesticks that open within the real body of the previous candle while closing lower than the previous candlestick. While three white soldiers mark a reversal from bear to the bull trend, three black crows show market reversal from bullish to bearish.

Things to consider

Three white soldiers might also appear during periods of consolidation, rather than during a trend. This is an easy way to fall into a trap, so one should take a good look at the longer time frames before trading Three white soldiers. One of the key things to take note of is the volume that supports the formation of this pattern. Any pattern is susceptible to failing in low volume conditions.

Categories
Crypto Market Analysis

Daily Crypto Review, Apr 2 – Bitcoin failing to break $6,640; What’s next?

The cryptocurrency market attempted another push towards new highs as Bitcoin bulls tried to get its price above $6,640. Even though most cryptos are in the green, the push was not successful, which may pose a problem in the short term. Bitcoin is currently trading for $6,595, which represents an increase of 4.63% on the day. Meanwhile, Ethereum gained 3.12% on the day, while XRP gained 1.95%.

The cryptocurrency market attempted another push towards new highs as Bitcoin bulls tried to get its price above $6,640. Even though most cryptos are in the green, the push was not successful, which may pose a problem in the short term. Bitcoin is currently trading for $6,595, which represents an increase of 4.63% on the day. Meanwhile, Ethereum gained 3.12% on the day, while XRP gained 1.95%.

The cryptocurrency market attempted another push towards new highs as Bitcoin bulls tried to get its price above $6,640. Even though most cryptos are in the green, the push was not successful, which may pose a problem in the short term. Bitcoin is currently trading for $6,595, which represents an increase of 4.63% on the day. Meanwhile, Ethereum gained 3.12% on the day, while XRP gained 1.95%.

Digitex Futures took the position of today’s most prominent daily gainer, with gains of 26.06%. IOTA lost 4.53% on the day, making it the most prominent daily loser.

Bitcoin’s dominance increased over half a percent over the past 24 hours as it was the one leading the push and gaining the most in value. Its value is now 65.23%, which represents a 0.54% difference to the upside when compared to yesterday.

The cryptocurrency market capitalization increased in the past 24 hours. Its current value is $185.3 billion. This value represents an increase of $5.8 billion when compared to the value it had yesterday.

What happened in the past 24 hours

Statistics on crypto adoption came out recently, showing that online purchases using Bitcoin went down during Q1 of 2020. However, the same goes for Visa and some other apps. However, crypto exchanges saw a major increase in new accounts in 2020, showing that people are responding to the price drop opportunistically.

What seems to be the case here is that people recognize crypto as a way to hedge their portfolios, so they are investing. However, due to the economic crisis knocking at our doors, people that do not have enough funds simply can’t spend it on online purchases, which is reducing the real-world use cases significantly.

Honorable mention

Ripple

The class-action lawsuit against Ripple had an amendment which includes additional claims of false advertising as well as unfair competition, now claiming that XRP might not be a security.”

The investors’ sixth and seventh claims would appear to be a direct hedge for the event that the judge rules “against” the original suit, basically saying that XRP was an unregistered security, and therefore sold as such.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

After a steady day of consolidating, Bitcoin attempted another swift push towards the $6,640 resistance level. Even though the price reached over the level, it was quickly pushed down, announcing the fail of the push. Bitcoin is currently trading just under this key level. If the trend of Bitcoin failing to break the immediate resistances continues, we may expect a retest of the lows very soon.


Bitcoin’s volume almost tripled during the push, but quickly normalized. Its RSI level is now descending and is currently at the value of 59.

Key levels to the upside                    Key levels to the downside

1: $6,640                                           1: $5,960

2: $6,850                                           2: $5,000

3: $7,085                                            3: $4,300

Ethereum

We said yesterday that Ethereum would most likely not move without Bitcoin moving first, therefore deciding its direction. This is exactly what happened today. Ethereum followed Bitcoin to the upside, but only managing to reach its $139 resistance level before stopping the move. This key level held up strong, and ETH did not even manage to go above it.


Ethereum’s volume increased during the upswing but quickly dwindled to its usual low levels. Its RSI level is currently at 60.5.

Key levels to the upside                    Key levels to the downside

1: $168                                                1: $128

2: $178.6                                            2: $122.5 

3: $185                                                3: $100

Ripple

XRP didn’t have as good a day as BTC or ETH did, as its price didn’t increase as much. However, the fact that XRP didn’t go back under the descending trend seems to be good enough. XRP seems to be responding to a level between $0.1765 and $0.1785.



XRP’s volume increased each time the cryptocurrency retested the descending trend line. Its RSI is currently sitting at the value of 56.

Key levels to the upside                    Key levels to the downside

1: $0.19                                             1: $0.165

2: $0.2                                               2: $0.147

3: $0.205                                             3: $0.1

Categories
Crypto Videos

Master Crypto Trading With The Cup & Handle Formation Part 2!

https://youtu.be/Z51csvdEIyc

https://youtu.be/Z51csvdEIyc


Make money in Crypto by spotting the Cup and Handle pattern – part 2/2

Picking a Profit Target


Determining the profit target is quite simple with this pattern; all you need to do is add the height of the cup to the point of breakout.
There will be times when the left side of the cup is a slightly different height than the right side. In this case, you should use the smaller height to stay on the conservative side, or the larger height for an aggressive approach.


In addition to using the cup and handle formation, you can use the Fibonacci extension indicator to create a great crypto trading strategy (as seen on the chart). Draw the extension tool from the low of the cup to the high on the right side of the cup. Then, connect the tool down to the handle low. The 1, or 100%, level represents a conservative price target, while the 1.618, or 162%, and represents a very aggressive target. The possible targets can then be placed anywhere in between 1 and 1.618.

Things to consider

Traditionally, the cup has a pause at the bottom of the cup built in the formation, where it moves sideways or forms a rounded bottom. This movement shows that the price found a support level and will not drop below it. However, this pattern can also have a so-called V-bottom.
A V-bottom occurs when the price drops and then sharply rallies. Some traders like trading this form of a cup and handle, while others do not. The argument of V-bottom traders is that the sharp reversal of the downtrend shows that buyers stepped in aggressively, signaling strength. Opponents of the V-bottom say that the price didn’t stabilize before bottoming, therefore making the price unstable and susceptible to retesting the level.
When trading this pattern, always look for additional confirmation. It can be found by looking for the bottom of the cup and seeing if it aligns with a longer-term support level. Consider using indicators and tools to determine the support and resistance levels and check if they align or interfere with the cup and handle targets.

Categories
Crypto Videos

Trading Crypto Using The Double Top & Bottom Formation

https://youtu.be/kBuf_IOh2Uo

https://youtu.be/kBuf_IOh2Uo

Trading Crypto using Double Top and Bottom patterns

This year has brought many uncertainties in all aspects of the world, especially health and finance. Cryptocurrencies have not been an exception, either. For the past couple of months, the sentiment has changed from very bullish to very bearish. The trend changed as quickly and sharply as the sentiment did. This is why we will cover the patterns which signal a trend reversal, called “double top” and “double bottom.

Double Top pattern

This image represents a double top pattern. After a cryptocurrency’s has trended upward for a while, it will create a top in price. Investors will often close their positions during this pause of the market, thus creating a downward trend in price. Shortly after that, the value rises again, reaching a second top at almost the exact same price as the previous one. These two tops form a double top pattern, which is essentially a test of the market.

The market is tested in terms of whether the price is susceptible to be nudged higher or not. The downward trend after the second top shows that the market does not have enough of a drive to go further up and that it will trend downward again. In a nutshell, the distinct shape of a double top that is quite similar to the letter M represents a bearish move.

Double Bottom pattern

As expected, the double bottom represents everything that the double top represents, but in reverse. Rather than testing the upside of a cryptocurrency, the market testing comes after a downward move and tests if the market is ready to go further down. The double bottom pattern is recognized by the two inverted peaks that are formed at approximately the same price level.

When it happens that the downward trend has been tested twice, and the bottom has been found, then the market will reverse, and the uptrend will start. In a nutshell, the distinct shape of a double bottom that is quite similar to the letter W represents a bullish move.

Additional information

The double top pattern and the double bottom patterns are price reversal indicators. However, there is always the risk that you will encounter a false reversal, meaning that the price movement will play out just the way you want for a very short amount of time, and then do the complete opposite. That’s why it is important to mitigate the risk by doing a couple of things. First, set the stop-loss below the double bottoms or above the double tops. Second, make sure to wait for a candle close in your direction to get a confirmation of the trend reversal. Ultimately, you can pair trading this pattern with candlestick analysis, indicators, and other tools at your disposal.

As the last piece of advice, try to make trades where the double bottom or top will show a trend reversal to a direction of the longer time-frame trend. This way, you will trade alongside the long-term trend, which is much safer than trading against.

Categories
Crypto Market Analysis

Daily Crypto Review, Apr 1 – Crypto Outperforming Traditional Markets in Q1

The cryptocurrency market had a pretty stable day as most cryptos consolidated within previously achieved levels. Bitcoin is currently trading for $6,341, which represents a decrease of 1.23% on the day. Meanwhile, Ethereum gained 1.08% on the day, while XRP gained 1.13%.

The cryptocurrency market had a pretty stable day as most cryptos consolidated within previously achieved levels. Bitcoin is currently trading for $6,341, which represents a decrease of 1.23% on the day. Meanwhile, Ethereum gained 1.08% on the day, while XRP gained 1.13%.

The cryptocurrency market had a pretty stable day as most cryptos consolidated within previously achieved levels. Bitcoin is currently trading for $6,341, which represents a decrease of 1.23% on the day. Meanwhile, Ethereum gained 1.08% on the day, while XRP gained 1.13%.

ICON took the position of today’s most prominent daily gainer, with gains of 15.80%. Nervos Network lost 8.51% on the day, making it the most prominent daily loser.

Bitcoin’s dominance dropped almost a whole percent over the past 24 hours. Its value is now 64.69%, which represents a 0.78% difference to the downside when compared to yesterday.

The cryptocurrency market capitalization did not move much throughout the day. Its current value is $179.50 billion. This value represents a decrease of $0.41 billion when compared to the value it had yesterday.

What happened in the past 24 hours

Digital payments company PayPal posted a new job listing, where it seeks to hire an Anti-Money-Laundering and Blockchain Strategy director that will work in their Global Financial Crimes (GFC) division.

The new director, which will be based in New York, will be in charge of evaluating the use cases of blockchain for the prevention of financial crimes.

Honorable mention

Bitcoin vs. the Traditional markets

April 1 brings us to the Q2 2020, as well as reports and analyses on how assets performed in Q1. Nikkei 225 was down 20%, which represents the worst quarter since 2008. The FTSE fell 14% for the period, which its second-worst quarterly performance ever. The S&P 500 lost 18% to close out Q1 2020, which is its worst quarterly performance since 1938.

While cryptocurrencies operate 24/7 and don’t exactly have quarters, it is important to look at them as well and compare the crypto market’s performance with the performances of other assets. The crypto market was down just 10% for 2020’s first three months, which is significantly less than the aforementioned traditional markets.

However, despite its relative resilience, bitcoin (and the rest of the market) has been trending downward along with traditional markets, which shows some form of correlation. This correlation across all assets can be explained by the saying that “macro matters more than micro.”

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Technical analysis

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Bitcoin

Bitcoin had a pretty stable day as there was no real volume to push the price up or down. The largest cryptocurrency by market cap still trades within a range, bound by $6,640 to the upside and $5,960 to the downside. As the price could not break the resistance level, we can expect a slow decline towards the support level if nothing changes on a macro level.


Bitcoin’s volume was steady and low in the past 24 hours. Its RSI level is currently at the value of 50.

Key levels to the upside                    Key levels to the downside

1: $6,640                                           1: $5,960

2: $6,850                                           2: $5,000

3: $7,085                                            3: $4,300

Ethereum

Ethereum spent the day with virtually no fluctuations. Its chart is mostly consisting of doji candles, hammer and inverted hammer candles, meaning that there is low volume, as well as great price direction indecisiveness. Ethereum gained just slightly over 1% on the day, which was just catching up to Bitcoin’s gains, which happened the day before. Ethereum most likely won’t move without Bitcoin moving first and deciding its direction.


Ethereum’s volume is extremely low, while its RSI value is currently at 53.

Key levels to the upside                    Key levels to the downside

1: $168                                                1: $128

2: $178.6                                            2: $122.5 

3: $185                                                3: $100

Ripple

XRP had a great day, even though its price gains do not show it. The third-largest cryptocurrency managed to get out of the descending range, which it was in for around a week. The price broke the upper trend line and then successfully retested the line, which held well.


XRP’s volume increased greatly during the retest of the trend line, while the rest of the day passed without much volume. Its RSI is currently at 54.

Key levels to the upside                    Key levels to the downside

1: $0.19                                             1: $0.165

2: $0.2                                               2: $0.147

3: $0.205                                             3: $0.1

Categories
Crypto Videos

Master Crypto Trading With The Cup & Handle Formation Part1!

https://youtu.be/HgahPm9cHqM

https://youtu.be/HgahPm9cHqM

Make money in Crypto by spotting the Cup and Handle pattern – part 1/2

Chart patterns occur on charts when the movements of the price of an asset resemble a common shape. In this case, we will be talking about the cup and handle formation. These patterns are a visual tool that helps traders make their market decision. Cup and handle provide a logical entry point, a stop-loss target for managing risk, as well as a price target for exiting a profitable trade.

The Cup and Handle

The cup and handle pattern is a strong tool for both small time frames (such as one-minute charts) and in large time frames. It occurs when the price trends down, then have a stabilizing period, then followed by a rally of approximately equal size to the aforementioned decline. This creates a U-shape, which is the “cup” in the “cup and handle” formation. However, this is only a part of the pattern. The price then moves sideways or goes down within a channel, which forms the handle. The handle can also take the form of a triangle.
An important rule to keep in mind is that the handle should always be smaller than the cup. Ideally, the handle should stay in the upper third of the cup. If it is too deep, it will erase most of the gains of the cup, which makes it quite an unsafe bet when it comes to trading on this pattern.

A cup and handle chart may signal one of two things! A reversal pattern, or A continuation pattern. A cup and handle signals a reversal pattern when the price is in a long-term downtrend. If a cup and handle pattern is formed during that time, it will signal a trend reversal. However, if the cup and handle formation occurs during an uptrend, then the pattern would signal trend continuation.

How to trade the cup and handle pattern
Determining the Entry point

In order to trade this pattern well, wait for a handle to form and the full pattern to play out. The handle often goes sideways, descends, or creates a triangle. The entry point should be when the price breaks above the top of this channel or triangle. As soon as the price moves out of the handle, the pattern should be considered complete. However, you might want to wait for a full candle to form outside of the pattern, so you get a real confirmation of the move, rather than blindly entering a false breakout.

Setting up a Stop-Loss

A stop-loss order is a risk-control measure on the trade. It works by selling the position if the price goes the opposite way and declines enough to invalidate the pattern. The stop-loss should be put below the lowest point of the handle or below the most recent swing low (only if the price oscillated up and down often).

Since the handle occurs within the upper half of the cup, a stop-loss that is properly placed should not end up in the lower half of the cup. If the stop-loss happens to be below the half-way point of the cup, try to avoid the trade if possible. Ideally, the stop-loss should be placed in the upper third of the cup pattern.

Check out part 2 of our Cup and Handle crypto trading guide to learn more about setting profit targets as well as some other important info regarding this candlestick formation.

Categories
Crypto Market Analysis

Daily Crypto Review, Mar 31 – Opera browser openly supporting crypto; Markets in the green as BTC pushes towards $6,640

The cryptocurrency market has recovered from the downside push as Bitcoin regained strength and reconquered $6,000. In the past 24 hours, almost every single crypto was in the green. Bitcoin is currently trading for $6,419, which represents an increase of 6.53% on the day. Meanwhile, Ethereum gained 3.21% on the day, while XRP gained 2.4%.

The cryptocurrency market has recovered from the downside push as Bitcoin regained strength and reconquered $6,000. In the past 24 hours, almost every single crypto was in the green. Bitcoin is currently trading for $6,419, which represents an increase of 6.53% on the day. Meanwhile, Ethereum gained 3.21% on the day, while XRP gained 2.4%.

The cryptocurrency market has recovered from the downside push as Bitcoin regained strength and reconquered $6,000. In the past 24 hours, almost every single crypto was in the green. Bitcoin is currently trading for $6,419, which represents an increase of 6.53% on the day. Meanwhile, Ethereum gained 3.21% on the day, while XRP gained 2.4%.

Energi took the position of today’s most prominent daily gainer, with gains of 18.77%. There were no big losers on the other side as only two cryptos out of the top100 managed to be in the red. Status lost 1.444% on the day, making it the most prominent daily loser.

Bitcoin’s dominance dropped half a percent over the past 24 hours. Its value is now 65.47%, which represents a 0.56% difference to the downside when compared to yesterday.

The cryptocurrency market capitalization steadily increased over the course of the day. Its current value is $180.91 billion. This value represents an increase of $6.9 billion when compared to the value it had yesterday.

What happened in the past 24 hours

A web browser Opera now enables its users to access decentralized web pages with the .crypto domain extension. They made it possible through a partnership with Unstoppable Domains. This will allow users to access and surf decentralized websites, as well as to make cryptocurrency payments.

Honorable mention

Tron

Tron (TRX) founder Justin Sun posted a tweet announcing the release of Djed on Mar 28. Djed is a system for collateralized loans that he described as “something new.” However, the Djed platform was immediately criticized by the market as many think it is a copy of MakerDAO (MKR).

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Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin quickly and efficiently recovered from its most recent push down as its price regained previous levels. The largest cryptocurrency by market capitalization went over $6,000 yesterday, while it established its position today and even made a push towards new highs (namely the immediate resistance of $6,640). However, the push failed due to a lack of volume. Bitcoin’s future is still uncertain mostly due to external difficulties the world is facing rather than Bitcoin’s internal problems.


Bitcoin’s volume was somewhat higher than yesterday, but still at low levels. Its RSI level on the 4-hour chart is just above the middle of the range.

Key levels to the upside                    Key levels to the downside

1: $6,850                                           1: $5,960

2: $7,085                                           2: $5,000

3: $7,420                                            3: $4,300

Ethereum

Bitcoin’s downturn pushed Ethereum below the $128 support level, but as Bitcoin recovered, so did Ethereum. The second-largest cryptocurrency by market cap regained its previous support level and pushed higher up. The lack of volume prevented it from even reaching the $139 resistance level, forcing the price to consolidate within the range. Ethereum will most likely keep following Bitcoin’s price movements in the short term.


Ethereum’s volume is currently lower than the previous week’s volume, as well as overall. Its RSI level is just below the mid-range, with a value of 49.

Key levels to the upside                    Key levels to the downside

1: $168                                                1: $128

2: $178.6                                            2: $122.5 

3: $185                                                3: $100

Ripple

XRP passed over the $0.165 resistance level over the weekend, which was a great milestone towards establishing a stable price. However, the most recent downturn brought its price below this key level yet again. XRP quickly recovered and regained $0.165 as Bitcoin increased in price and pulled the whole market with it. However, the short-term future does not look good for XRP if it keeps trading within the descending range, making lower lows and lower highs.


XRP’s volume is on the same level as it was the previous week, while its RSI level is slowly descending. At the time of writing, its RSI has a value of 50.5.

Key levels to the upside                    Key levels to the downside

1: $0.19                                             1: $0.165

2: $0.2                                               2: $0.147

3: $0.205                                             3: $0.1

Categories
Crypto Videos

Using Pennants Correctly In Crypto Trading! How Is It Different To Forex?

https://youtu.be/WapUPZeUq3o

https://youtu.be/WapUPZeUq3o

 

Using pennants correctly in Crypto trading – spotting the difference between flags, pennants, and triangles

 

The pennant formation is a formation that looks much like a flag pattern but is triangular in shape. These formations tend to appear at the halfway mark of a trend. When a pennant forms, the trading volume tends to contract, while increasing only after the breakout. To simplify it even further, pennants look like a small triangle sitting on a long pole.

Pennants are a variation of a flag pattern, which means that it is made up of a body and a pole, much like the flag. Just like with the flag pattern, the pole height can be used to create a price target after a five-wave breakout from the body of the formation.
They are associated with very mild volatility alongside limited price fluctuations, which differentiates them from flags and triangles.
Difference between a triangle and a pennant
While pennants are most similar to flag formations, it is quite easy to distinguish one from another. On the other hand, triangles and pennants can be mistaken for one another due to the similarity of the pattern if we are not careful. However, they have some key differences which can be used to determine which one is which.

Difference 1 – the Flagpole

The symmetrical triangle and the pennant both have conical bodies which are formed during a period of consolidation. The price consistently fluctuates between higher lows and lower highs, therefore creating two converging trendlines. However, the part which many people know but tend to miss during a live trading session is that the pennant includes a flagpole at the start of its pattern, which is not the case with the symmetrical triangle. The flagpole is a sharp move accompanied by heavy volume, which marks the beginning of an aggressive move to the upside or downside. Price then pauses and forms the body of the pennant, before breaking out.

Difference 2 – the Duration

Another difference between the symmetrical triangle and the pennant would be the difference in their durations. The pennant is considered a short-term pattern that forms over a period of hours, days, or weeks. A triangle pattern, on the other hand, can take much longer, sometimes months or years. If a pennant pattern lasts for several weeks, it can be considered as a triangle as the flagpole is no longer important.

Difference 3 – the Breakout

The breakout after a pennant formation should occur at or near the point of trendline converging, which is called the apex. However, symmetrical triangles usually break above or below the trendlines a bit sooner, namely one half to three-quarters of the way through the pattern. Therefore, triangles almost never reach its apex.

Using patterns in Crypto trading

Pennants are a universal formation, which means that trading using this formation should be no different than using it to trade other assets. However, due to the volatility of the crypto market, one has to consider the duration of the formation itself. As the crypto market is much more volatile, the pattern formations tend to resolve quicker. Pennant formations, when trading regular assets, are not considered important on extremely short time frames, while that is not the case with the crypto market. They also grow into a triangle only after 12-13 weeks of not breaking out with traditional asset markets, rather than just a few weeks with the crypto market.

Conclusion

Recognizing pennants while trading cryptocurrencies can, just like with any other formations, be an effective way to improve your odds of profiting on a trade by determining the direction of the trend as well as the profit target.

Categories
Crypto Market Analysis

Daily Crypto Review, Mar 30 – Bitcoin back above $6,000 as Trump publicly supports printing $6.2 trillion

The cryptocurrency market, as it could not break the immediate resistances ahead, had a leg down over the weekend. The market stabilized with Bitcoin at above $6,000 for now. Bitcoin is currently trading for $6,223, which represents an increase of 1.34% on the day. Meanwhile, Ethereum gained 0.41% on the day, while XRP lost 1.28%.

The cryptocurrency market, as it could not break the immediate resistances ahead, had a leg down over the weekend. The market stabilized with Bitcoin at above $6,000 for now. Bitcoin is currently trading for $6,223, which represents an increase of 1.34% on the day. Meanwhile, Ethereum gained 0.41% on the day, while XRP lost 1.28%.

The cryptocurrency market, as it could not break the immediate resistances ahead, had a leg down over the weekend. The market stabilized with Bitcoin at above $6,000 for now. Bitcoin is currently trading for $6,223, which represents an increase of 1.34% on the day. Meanwhile, Ethereum gained 0.41% on the day, while XRP lost 1.28%.

Energi took the position of today’s most prominent daily gainer, with gains of 10.57%. On the other side, Steem lost 8.34% on the day, making it the most prominent daily loser.

Bitcoin’s dominance stayed at virtually the same place when compared to Friday’s value. Its value is now 66.03%, which represents a 0.13% difference to the downside when compared to before the weekend.

The cryptocurrency market capitalization took a big hit in the past 24 hours due to a sharp move down. Its current value is $174.01 billion. This value represents an increase of $13.06 billion when compared to the value it had on Friday.

What happened in the past 24 hours

Bitcoin (BTC) gains more and more support after the US President Donald Trump appeared to say he fully supported manipulating the dollar by printing $6.2 trillion.

Trump defended the Federal Reserve for printing more than $6 trillion with the words “It’s our money, we are the ones, it’s our currency,” which got quite a backlash.

Honorable mention

Ethereum

Data published the co-founder Covalent (an Ethereum analysis firm) Ganesh Swami announced that DeFi transactions are increasing its share of Ethereum block space, which goes at the expense of ETH transfers.

Swami said that the gas costs incurred by Ethereum transactions went up progressively.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

After not being able to break the $6,850 resistance for quite some time, a leg down from Bitcoin was to be expected (check our previous reports). The largest cryptocurrency by market capitalization fell below $6,000 psychological support (and $5,960 support level), but quickly recovered and stayed above it. Bitcoin is currently trading at just above $6,200.


Bitcoin’s volume is average when compared to the previous week, while its RSI level on the 4-hour chart went from severely oversold to the middle of the range.

Key levels to the upside                    Key levels to the downside

1: $6,850                                           1: $5,960

2: $7,085                                           2: $5,000

3: $7,420                                            3: $4,300

Ethereum

Ethereum went through a similar price path as Bitcoin did. Its price fell down below the $128 support level as bulls could not break the $139 reliably, but quickly recovered and went above the support level. It is currently trading at above $130, where it looks pretty safe from any downturns in the short-term.


Ethereum’s volume is on the same low levels as it was the previous week. Its RSI level has risen to the middle of the value range after almost reaching oversold territory during the price drop.

Key levels to the upside                    Key levels to the downside

1: $168                                                1: $128

2: $178.6                                            2: $122.5 

3: $185                                                3: $100

Ripple

XRP received a great surge in volume as its price rose above the $0.165. The weekend brought bad news for XRP as bears took over and brought its price below the key level of $0.165. However, the third-largest cryptocurrency quickly overcome the downtrend and went back up above this key level.


XRP’s volume increased greatly during the spike, while the rest of the volume is average when compared to the past week. Its RSI level is on the upswing, currently passing the value of 55.

Key levels to the upside                    Key levels to the downside

1: $0.19                                             1: $0.165

2: $0.2                                               2: $0.147

3: $0.205                                             3: $0.1

Categories
Crypto Daily Topic

The Future of Cryptocurrencies 

About 10 or 11 years ago, the world couldn’t have foreseen a new class of digital currencies that would threaten to upset the global financial order. As of now, cryptocurrencies are firmly the leading tradable asset – overtaking others that were since the beginning of trading. And a cryptocurrency that’s not even out yet – Libra, sent economic experts into a panic mode as they decried the influence it would have on the world’s finance system. 

About 10 or 11 years ago, the world couldn’t have foreseen a new class of digital currencies that would threaten to upset the global financial order. As of now, cryptocurrencies are firmly the leading tradable asset – overtaking others that were since the beginning of trading. And a cryptocurrency that’s not even out yet – Libra, sent economic experts into a panic mode as they decried the influence it would have on the world’s finance system. 

About 10 or 11 years ago, the world couldn’t have foreseen a new class of digital currencies that would threaten to upset the global financial order. As of now, cryptocurrencies are firmly the leading tradable asset – overtaking others that were since the beginning of trading. And a cryptocurrency that’s not even out yet – Libra, sent economic experts into a panic mode as they decried the influence it would have on the world’s finance system. 

While those are positive highlights, the cryptocurrency industry is encumbered by challenges that might curtail its mainstream success, at least in the short run. Also, crypto, as we know it now, is primarily driven by investor speculation and trading. We’re still far from the day when we can use it to pay for coffee in the drive-thru. 

So what is the future of cryptocurrencies? What developments are we likely to see in the space in the coming years? And the seemingly outdated but still relevant question: should you invest in cryptocurrencies? 

What is Cryptocurrency?

Cryptocurrency is an internet-based currency that uses cryptography to secure and facilitate transactions. Cryptocurrencies utilize blockchain technology to achieve decentralization, transparency, and immutability. Cryptocurrency came into life with the creation of Bitcoin in 2009. The crypto was a slow burner up until April 2013 when it peaked at $266 after surging ten times in February and March of that year. From then on, the media and the Investment community started taking notice. 

Bitcoin has gone on to achieve the record high of $20, 089, but like any other cryptocurrency, it is subject to wild price swings, and as such, a stable price for the crypto is very rare. Bitcoin’s success has inspired thousands of more cryptocurrencies – some falling by the wayside, others achieving remarkable success. Currently, there are more than 3000 cryptocurrencies in existence. And cryptocurrency has proven to be a formidable force in the trading and investment world, leading other asset classes last year to be the best performing asset class in 2019.  

Will cryptocurrencies dethrone traditional currency and go mainstream? Will it become ubiquitous one day? Or is it just a fad?

Let’s look at developments that are likely to unfold: 

i) From Investment to Utility

In the last decade, cryptocurrencies were used mainly for speculation and investment. Trading was the main activity driving the use and existence of cryptocurrency. This will not change at least in foreseeable years, but it’s highly likely that we will start to see the use of crypto for non-trading activities such as staking, borrowing, lending, payments, commerce, and so on.

ii) Increased scrutiny

The cryptocurrency features of decentralization and anonymity have made it the go-to currency for illegal activities such as money laundering, weapons procurement, drug dealing, trafficking, smuggling, and so on. This has put it in the spotlight of regulatory and government agencies.

Cryptocurrency is already regulated in regions such as the European Union, while other countries like China have banned it outright. However, even with jurisdictions that have taken steps to regulate it, there isn’t a consensus on how to do so. Some regulations target crypto exchanges, while others intend to control trading. 

There is a split in opinion on the ramifications of regulating cryptocurrencies. Some countries believe that clamping down too hard on cryptocurrency will stifle innovation – prompting them to take the more cautious approach of watching from the distance but also stepping up to curb illegalities such as phony ICOs and crypto Ponzi schemes.

iii) More Stablecoins

Stablecoins are a new class of cryptocurrencies that are backed by real-life assets such as fiat currency. Stablecoins are meant to offer some price stability and mitigate the volatility of cryptocurrencies. Since they are backed by real-world currency, it means they are cushioned against the price swings of normal currencies. These price swings render cryptocurrencies unsuitable for day-to-day use as a medium of exchange. Stablecoins aim to offer the best of both worlds – the security, privacy, and fast transactions of crypto, as well as the volatility-free use as a means of payment.  

Some stablecoins have already entered the crypto fold, including Maker coin, Gemini dollar, and Tether. Libra is yet another stable coin that’s slated for release this year. Libra, for one, is notable since it’s a project spearheaded by Facebook, which has over 2 billion users across the globe. Due to the massive user base, the release of Libra would shake up not just the crypto world, but the world economy as we know it. This explains why its announcement was met with ire by financial bodies and regulators – with the argument that it would threaten and undermine the global financial system.

iv) Scalability

Lack of scalability has been the bane of cryptocurrencies’ existence. Scalability here means the speed at which cryptocurrencies can process transactions. So far, legacy blockchains such as Bitcoin and Ethereum have proven incapable of handling transactions at a level that would allow them to compete with, let alone overtake traditional payment models such as Visa. For instance, Bitcoin can only process 7 transactions per second while Visa can handle up to 1700 transactions per second. As you can see, cryptocurrencies have a lot to do if at all they’re to become viable mainstream currencies. 

Already, we’re seeing scaling solutions such as SegWit, the Lightning Network, Rootstock, and so on. These technologies differ greatly in the way they function, but they’re all geared towards the common goal of improving scalability on the blockchain. We’re likely to see more cryptocurrencies adopting these technologies, possibly putting them toe to toe with the traditional payment models. 

Challenges, and the Future

While cryptocurrencies have their revolutionary qualities, they also have their own limitations. For example, a crypto holder can lose their fortune through a computer crash, loss or damage of their physical crypto wallet, or their virtual wallet being hacked. This is a problem that can be solved through technological advances in the future.

What may be harder to solve is the curse of stricter regulation and intensified scrutiny that hangs over cryptocurrencies, the more they proliferate. This threat may slow down the advancement of this space, and undermine the very premise of their continued advancement or even existence. 

Also, businesses across the world now accept cryptocurrencies for transactions, but that number is still very much in the minority. If cryptocurrencies are to achieve mainstream recognition, they first have to find widespread use among populations. But remember that they have a complexity to them that may deter their widespread adoption. 

For a cryptocurrency to become part of the global financial club, it has to satisfy certain criteria. First, it will have to be just mathematically complex enough to deter fraud, but be easy to understand at the same time. It would also need to be decentralized to enable peer-to-peer transactions without third-party interference, but also be secure enough. Again, it would need to safeguard the privacy and anonymity of users without being a conduit for financial crime and nefarious activity.

Should You Invest In Cryptocurrencies? 

Cryptocurrencies, as anyone in the crypto community knows, can be a lucrative venture. Stories are told of crypto millionaires who struck luck by investing in the asset. That doesn’t mean you should dip both your feet in the water. Cryptocurrencies are a remarkably speculative asset class – with unpredictable price swings, and your money can be wiped away overnight if you are not careful. 

For instance, Bitcoin famously once plunged from $260 to about $130 in 6 hours. If you’re more of a conservative investor who doesn’t find thrill in that nature of volatility, you probably should look for more stable or predictable kinds of investments. 

Final Thoughts 

It’s hard to picture what the future of cryptocurrencies looks like. The technology itself is self-limiting in certain ways – like being too complex for much of the hoi polloi. Regulation is another threat that hangs over it all the time.

But going by the explosive success the industry has achieved in ten years since Bitcoin, including trouncing other asset classes, we simply can’t know what to expect. The crypto scene is highly dynamic, and things are constantly changing. What’s certain is that the future of cryptocurrencies holds a few more surprises.

Categories
Crypto Guides

Smart Contracts – A Brief Introduction

What are Smart Contracts?

What are Smart Contracts?

What are Smart Contracts?

Smart contracts are nothing but deals that are digitally stored using digitization to enable digitalization of the business process. The smart contracts can be touted as one of the best applications of blockchain. Blockchain eliminates the middlemen in whichever industry the technology is leveraged, and smart contracts do the same. One doesn’t have to rely on a third-party player to authenticate the deal but pay some money to build the code which is suitable for all the parties involved and deploy the contract in the blockchain to make it active.

How do they work?

Smart contracts in real is a piece of code which can be written in any language that the blockchain platform may support. The code is written in such a way that when predefined parameters are met, the contract execution triggers automatically, and the conditions are met without any human intervention. This makes it very easy to handle and execute smart contracts.

Are they reliable?

Immutability is one of the essential characteristics of blockchain, as we have seen in our previous articles. Since the blockchain works on the concept of distributed ledgers, a copy of the contract will be available with every party involved. Smart contracts deployed in the blockchain network are immutable; once used, they cannot be changed. All the predefined terms should be met as agreed and signed by all the involved parties. Payments, if any concerned, will be done automatically as well without any human involvement. Thus, not delaying the cash, which makes all the parties happy about the work done. Hence the smart contracts are considered very reliable.

The real-life example of Smart Contracts

There are infinite real-life scenarios where smart contracts can be used. We all have booked tickets for our most awaited events, say concerts, movies, sports and so on. We always use a third-party website/app to book the tickets. Here the audience, as well as the event organizers, are trusting this third-party service provider with their money.

Instead of a third-party service provider, if one can deploy smart contracts in these scenarios, it would be easy to manage money. People buy their passes for the event, and this money is stored in the escrow linked to the contract. The money is not credited to the event organizers’ account unless the event is completed. If the event is completed, the funds will be automatically transferred to the organizers of the game. If not, the amount will be refunded to the audience account as per the terms and conditions of the event.

In this case, we do not depend on a third party for the refund of the amount, which may delay in case of any eventualities. We are also not paying any other extra fee to book the ticket as no third party is involved—this the best real-life example where once can use smart contracts.

Conclusion

The new technologies in our lives have come to make our life easy, and smart contracts come under such a category. We not only save money using them but also get rid of concept terminology of terms and conditions which lawyers use to cash the loopholes when something goes wrong. In this case, we use straightforward language to code the words and get them triggered as required, thus making them comfortable and very reliable to use.

Categories
Crypto Videos

Maximise Profits By Trading Bull & Bear Flags In Crypto Trading

https://youtu.be/IrEzR7VjJSs

https://youtu.be/IrEzR7VjJSs

When it comes to consistently being profitable in crypto trading, the trend is definitely your friend. However, spotting the trend when it still in the early stages is very difficult, while running along with it all the way to the top is even more challenging.

More often than not, trends (both bullish and bearish) will pause their move briefly, which allows traders or investors to join the bandwagon. We saw this pause in many cases during the crypto market uptrends and downtrends. If a lot of new participants join, the asset price continues the trend. If not, we can expect a trend reversal.

Continuation patterns

A trader can use continuation patterns to spot trend extensions. These patterns occur in a variety of shapes, with some of the most popular being known as bull and bear flags.
A bull flag is a pattern that occurs during an uptrend when the price is trying to continue upward. On the other hand, the bear flag occurs in a downtrend when the price wants to go further down.

Each flag pattern has two main components:
The pole and The flag. The “pole” is a part of the pattern that signifies a strong impulsive move, which is backed by a surge in trading volume, as well as by the subsequent pause in the trend, which represents the “flag,” which resembles a falling or rising channel.

The flag pattern has shown to be an invaluable addition to a traders’ toolset. It is mainly used to calculate the target as well as the direction of the move. As an example, if the resistance breaks in a bull flag, we can be confident that the price will continue upwards and set the target to approximately the length of the pole. On the other hand, if the support of the bull flag is breached, we know that the pattern is invalid and that the trend continuation is unlikely.

Calculating the profit target

A cryptocurrency move after a bull flag breakout or bear flag breakdown usually corresponds to the size of the pole of the flag.
Therefore, the profit target is derived like this:
Bull flag breakout equals to the breakout price plus pole hight
Bear flag breakdown equals to from the breakout price minus the pole hight
Pole height equals to the pole high minus the pole low.

Example of the Bull Flag

Let’s take a look at Bitcoin (BTC) on a 6-hour chart, where it presented a bull flag breakout. Bitcoin cleared this particular flag resistance on Feb 20, 2017, which signaled a continuation of the rally. The rally ranged from the $917 (which was the low of the pole) to the possibility to go towards $1,228 (target measured by the pole height method brought us to $157, which was added to breakout price).
In this case, Bitcoin came just $10 shy of the predicted price target on Feb 24, 2017.

Example of the Bear Flag

An example of the bear flag would be Ethereum’s (ETH) 4-hour chart, starting Mar 17, 2018. Ethereum broke the flag support, which suggested the continuation of the depreciation from the $699 pole high. The target would be $463 if we used the pole height method, which got us to the $133, which were then deduced from breakdown price.
As the move confirmed, Ethereum was just $12 shy of reaching the exact target level on Mar 18, 2018.

Summary

Bull and bear flags can be utilized in strongly trending markets to predict the price target of the move. However, they do not always perform as intended. In some cases, they can present a so-called “false breakout,” which occurs when price breaches the boundary of the flag but quickly retraces.
The risk of false breakouts can be mitigated by waiting for a candlestick to close outside of the flag territory.

 

For more superb educational content please visit our website https://www.forex.academy/
Categories
Cryptocurrencies

How to Identify a Phony ICO

Every new week we hear of yet another new cryptocurrency being launched. Launching of cryptocurrencies and Initial Coin Offerings (ICOs) go hand in hand – as new crypto projects seek financing for the project. Due to their novel nature – in terms of technology and market behavior, cryptocurrencies are a very attractive investment for investors.  […]

Every new week we hear of yet another new cryptocurrency being launched. Launching of cryptocurrencies and Initial Coin Offerings (ICOs) go hand in hand – as new crypto projects seek financing for the project. Due to their novel nature – in terms of technology and market behavior, cryptocurrencies are a very attractive investment for investors.  […]

Every new week we hear of yet another new cryptocurrency being launched. Launching of cryptocurrencies and Initial Coin Offerings (ICOs) go hand in hand – as new crypto projects seek financing for the project. Due to their novel nature – in terms of technology and market behavior, cryptocurrencies are a very attractive investment for investors. 

Thus, any new and flashy crypto project is likely to attract a horde of both experienced and novice traders. Scammers know this, which is why phony projects have been able to successfully con millions of dollars from oblivious investors.

How do you stay alert? How do you avoid sinking your precious savings in a fraudulent ICO? The crypto space is incredibly dynamic, and even the savviest investor can find themselves sideswiped pretty fast. That doesn’t mean you can’t have some antennae out to help you detect crypto ICO fraud. 

This piece arms you with what you need to know so you won’t fall victim to the ICO scam clothed in grand promises and irresistible investment returns.

i) Find Out About the Team

Nothing will familiarize you with an ICO better than the team behind it. To determine whether an ICO is fake or not, check who the developer and the administrative team are. If it’s a legit project, these people will not only be out in the open but also have some history in a relevant field such as cryptocurrency, finance, or technology. If the team has a somewhat questionable history with these fields, you might want to get out.

Other scammers will name drop trusted names within the industry, claiming to have their backing for the project. To determine the veracity of this, a quick Google search is all you need. Also, check whether the people behind the project have mentioned it in their verified social media pages. If the search turns up nothing, you should take that as a red flag. And even if they mention the project and their social media activity generally looks dubious – like no interaction with followers that should also be a big, flashing, red sign.

ii) Study the Whitepaper

The foundation of any ICO is its whitepaper. A white paper should contain the background, motivation, goals, strategy, potential challenges, and a roadmap for the implementation of any blockchain or crypto project. A white paper can tell you so much. Read it thoroughly. Check to see the sources referenced in the paper. Does it have financial models that have been explored by other experts before? Does it address legal concerns? Does it talk about tools like SWOT analysis? Does it have a timeline for implementation?

These guidelines are for when a potential blockchain-based project has a white paper, to begin with. If it doesn’t have one, then you shouldn’t even think twice about it. Note, though, that it’s still possible for a fake ICO to produce a very convincing white paper. In that case, you need to check if it answers all your questions. What sets it apart? How does it aim to thrive in the already competitive blockchain space? How does it intend to achieve its goals? Finally, even if the white paper ticks all your boxes, always rely on your gut instinct. If too much as the littlest thing sets you off the wrong way, perhaps something is wrong.

iii) Look at the Token Sale

ICOs usually depend on crowd sales to fund projects. Know this: the crowdfunding process should be completely transparent. A legitimate ICO will make public sales figures so that potential investors can see and track them easily over time.

If a company is making it difficult for the public to track the progress of its crowd sale, this signifies a lack of honesty and perhaps underhanded dealings. Watch out for excuses, such as protecting the privacy of individual contributors. This is just a ploy to hide the progress of the ICO and prevent people from seeing how much money has been raised and how much time is remaining. Sometimes, scam ICOs will use this trick to generate a sense of urgency and fear of missing out (FOMO) in potential investors – so that they can collect more money.

iv) Is The Project Feasible?

This may sound obvious, but blockchain projects poised for success are those that have a solid and feasible set of goals. Crypto and blockchain are already wildly competitive spaces. A new project should be able to demonstrate what difference it brings and how it plans to outdo competitors. Many projects started out with pomp and circumstance, only to sputter away after the center couldn’t hold any longer. A project should sell a compelling concept that sustains interest in the long haul. 

The issue of transparency also arises. Projects that have an outstanding proposal are more likely to put themselves in the open as much as possible. If a project regularly updates the community with achieved milestones, that means it is legitimate and feasible.

v) Caution Is Your Friend

The crypto space offers opportunities galore for those who have done their research and can read the fine print before jumping into any investment. People have made millions out of this industry. Due to this promise, it is very tempting to want to jump into the next hot new project. And scammers know this, which is why they will not hesitate to flash seemingly irresistible projects in the eyes of naive investors.

Be wary of projects that sound too good to be true. Scrutinize new projects up to the last detail. Watch out for any single piece of important information that seems to be missing. Also, check for outside sources to establish the credential of any projects. 

Check if it has supporting communities on social media and other online forums. Remember, a project doesn’t need to be fake, so you can lose money; it can also be just poorly designed or too weak to succeed.

vi) Beware of Improbable Promises

Investing was never a surefire endeavor – not in stocks, not in commodities, and certainly not in blockchain projects. If a project comes out promising nothing but sky-high results, then it’s probably a scam.

 If someone is promising you a massive ROI before anything even kicks off, or guaranteeing you impressive profits, you need to be very suspicious.

Also, watch out for a project creator who tells you they already raised millions of dollars and that you need to join in now. It is an attempt to convince you to shell out your money, so you don’t miss out on the “golden opportunity.”

vii) Check Under The Hood

Some phony projects are just peddling vaporware. Which is why you need to confirm the software of any new crypto project that you want to invest in.

Check GitHub. Is the product listed on there? Also, is there a community where you can ask questions about the functionality and features of the crypto? You can even ask the developers to show you a prototype.

viii) How Are They Handling Your Money?

The way a project is handling your contributions can reveal a lot. For example, your funds should not be sent directly to an exchange site like, say, Binance. This would mean the creators can automatically cash out the money – without any accountability at all.

Also, how are they vetting contribution sources? Are they following anti-money laundering (AML) procedures? Are they adhering to know your customer (KYC) regulations? 

If the project team is not complying with best practices, it means they are operating outside of the law. And if they’re operating outside of the law, then you’re not supposed to be giving them your money.

Final Thoughts

The cryptocurrency market is fast-paced and exciting. It can make you pretty handsome returns, but you can also lose your savings in a heartbeat. This isn’t to deter you from trying your hand in the market. It’s a call to caution – more measured steps and due diligence before you fork out your cash for any investment. By following these guidelines, you should be able to gauge if that flashy ICO is worth your time and money.

Categories
Crypto Daily Topic

Understanding Cryptocurrency Metrics

The crypto market is flooded with thousands of coins, and every new week we hear of another one joining the bandwagon. With this level of proliferation, it can be daunting to pick apart the real thing from the chaff. Cryptocurrency metrics go beyond the market cap or popularity of a coin. These are pretty limited […]

The crypto market is flooded with thousands of coins, and every new week we hear of another one joining the bandwagon. With this level of proliferation, it can be daunting to pick apart the real thing from the chaff. Cryptocurrency metrics go beyond the market cap or popularity of a coin. These are pretty limited […]

The crypto market is flooded with thousands of coins, and every new week we hear of another one joining the bandwagon. With this level of proliferation, it can be daunting to pick apart the real thing from the chaff.

Cryptocurrency metrics go beyond the market cap or popularity of a coin. These are pretty limited ways of determining the measure of a cryptocurrency’s utility. So how do you distinguish between a robust currency poised for long-term success and a weak or fake one? 

Alternative metrics that can help you track and understand the value of different cryptos.

i) Decentralization of Nodes

How many nodes does a cryptocurrency have in its network? Nodes are the computers supporting the network from around the world. The more nodes a network has, the safer it is. Having a few nodes makes it easier to attack a network. Why does having decentralized nodes matter?

Resilience under attacks: having many nodes in a network makes it almost impossible to carry out a 51-percent attack.

Censorship-resistance: having a wide base of nodes makes it hard for states or governments to control or shut down the network. Nodes from around the world can replace each other in case some country manages to clamp down on node running.

Store of value guarantee: if many nodes are supporting a network, it means that the network is credible and can be trusted as a store of value.

ii) Main Developers

Who are the main developers behind the project? Do they have the relevant experience to create a robust cryptocurrency? Developers should also be able to provide regular updates about the network to ensure users of their and their funds’ security and privacy.

For instance, Bitcoin is regularly checked for security by hundreds of developers who are enthusiastic about the crypto. Developers should also be able to regularly fix bugs and come up with new functions to improve the functionality of the network. They should also be able to add useful new layers to the network, for example, sidechains – which can, for example, improve transaction speed by unclogging the network.

Developers also need to be able to sustain the value proposition of a cryptocurrency. They are also important for brand support of the cryptocurrency.  For instance, Ethereum boasts a solid reputation thanks to its creator Vitalik Buterin who is actively involved in the development of the network.

There is also the need for an opposing side to the main developers. For instance, Ethereum Classic and Bitcoin Cash act as a check and catalysis for functionality upgrades for Ethereum and bitcoin, respectively.

iii) The Solution the Coin Provides

Does the cryptocurrency have new insights for space? Does it have any unique features that solve problems that its predecessors have not been able to? Look at Zcash’s technology, zk-Snark, which allows the network to anonymize transaction histories.  Consider also Ethereum’s trailblazing smart contracts and decentralized applications that allow people to create contracts without the need for expensive intermediaries and create uncensorable applications, respectively.

iv) Daily Transactions Volume

A cryptocurrency should be able to maintain a certain level of daily transactions. If a cryptocurrency cannot achieve a certain daily threshold, it will slowly fade.  To check how many transactions a network is supporting, visit sites such as:

  •   BTC/ BCH: txhighway.com, blockchain.com
  •   Ethereum: etherscan.io
  • bitinfocharts.com

 By comparing your favorite coins, you can discover unexpected results that will help you decide which cryptocurrency is worth investing in.

v) The Number of In-Use Wallets

A network should show the number of non-empty wallets growing at an appreciable rate. A network should gain at least 175, 000 wallets per year.

This shows the network has active users – a non-negotiable for any crypto.

vi) Network Hashrate

This is a metric that shows how much computational power a network is using. A high hash rate signifies a healthy network. It means the network is being supported by many nodes, which, as we saw above, is a good sign.

vii) Daily Trade Volume

The trade volume of a cryptocurrency is demonstrated by such things as being available on many exchanges, having many trading pairs, and so on. If a cryptocurrency has been on the team for several years and it has a weak daily trade volume, that should tell you one or two things about its worth in the market.

viii) 24-hour Price Change

The crypto market is known for its wild price swings. But that does not mean that gains or losses of 250% to 900% in a span of 24 hours are normal. Such swings should point to something unusual behind the scenes, such as the crypto being centralized or some artificial price action.

Final Thoughts

For you to measure the value of that crypto, you’ve been angling, check out the above metrics and see if the numbers point to a healthy, thriving coin, or one that’s floundering. The more decentralized a network is, the stronger and safer it is. If its daily transaction volume shows active interaction with the network, then it’s a safe bet. Also, a coin’s value proposition must bring something fresh to the crypto space, or it risks fading into irrelevance in the ultra-competitive crypto market.

By utilizing these metrics, you’re on solid footing the next time you’re shopping around for crypto to invest in.

Categories
Crypto Market Analysis

Daily Crypto Review, Mar 27 – XRP recording double-digit gains as Ripple Labs donates $200,000 to fight COVID-19

The cryptocurrency market is still in consolidation mode, with most cryptocurrency prices at almost the exact same level that they were yesterday. Bitcoin is currently trading for $6,574, which represents an increase of 0.6% on the day. Meanwhile, Ethereum gained 1.01% on the day, while XRP gained a solid 7.28%.

The cryptocurrency market is still in consolidation mode, with most cryptocurrency prices at almost the exact same level that they were yesterday. Bitcoin is currently trading for $6,574, which represents an increase of 0.6% on the day. Meanwhile, Ethereum gained 1.01% on the day, while XRP gained a solid 7.28%.

The cryptocurrency market is still in consolidation mode, with most cryptocurrency prices at almost the exact same level that they were yesterday. Bitcoin is currently trading for $6,574, which represents an increase of 0.6% on the day. Meanwhile, Ethereum gained 1.01% on the day, while XRP gained a solid 7.28%.

Quant took the position of today’s most prominent daily gainer, with gains of 31.45%. On the other side, EDC Blockchain lost 29.88% on the day, making it the most prominent daily loser.

Bitcoin’s dominance decreased by slightly less than 1% over the past 24 hours. Its value is now 66.16%, which represents a 0.88% difference to the downside when compared to yesterday’s value.

The cryptocurrency market capitalization was a bit more turbulent in movements in the past 24 hours than it was the day before. Its current value is $187.07 billion. This value represents an increase of $2.8 billion when compared to the value it had yesterday.

What happened in the past 24 hours

A report announced by the derivatives analysis firm Acuiti has shown a growing interest in supporting and listing crypto assets among trading firms. The study surveyed 86 companies from the buy-side, sell-side, as well as prop trading groups.

The survey showed that 26% of these firms had adopted cryptocurrencies in one way or another.

Honorable mention

Ripple

Ripple Labs announced that they had made a donation of $200,000 on Mar 25, going to two different non-profit organizations. These donations are made with the intention to aid the fight to contain the coronavirus throughout the US.

Ripple Labs stated that half the funds will go to the Tipping Point Emergency’s Response Fund, while the other half will go to the Silicon Valley Community Foundation’s COVID Regional Response Fund.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin did not show any major volatility throughout the day, but has made a couple attempts to break its immediate resistance of $6,850. All of the attempts were, however, quickly stopped as the resistance was too much to handle with such low volume. If the pattern of failing to get above resistances continues, we might see a move down and retest of the support level.


Bitcoin’s volume is at the same level as it was the day before, while its RSI level fell down to 56.

Key levels to the upside                    Key levels to the downside

1: $6,850                                           1: $6,640

2: $7,085                                           2: $5,960

3: $7,420                                            3: $5,000

Ethereum

Ethereum has not moved much, but all the moves it made were with deliberation. The second-largest cryptocurrency by market capitalization tried to break the $139 resistance level, which is only recently showed any significance. It did manage to go above it, but quickly returned below, where it is at at the time of writing.


Ethereum’s volume is just barely higher than yesterday, while its RSI level is currently at the value of 54. We are not listing the $139 resistance as a key level, as it is still considered a pivot point (as well as too insignificant historically).

Key levels to the upside                    Key levels to the downside

1: $168                                                1: $128

2: $178.6                                            2: $122.5 

3: $185                                                3: $100

Ripple

XRP, unlike the other two aforementioned cryptocurrencies, had quite a splendid day. Its price reached double-digit gains as it jumped from $0.16 all the way up to $0.18. However, the bulls could not take the price any higher, and the move ended there. XRP has fallen slightly since then and is currently trading at around $0.171.


XRP’s volume increased greatly during the price spike. While it has descended since, it is still higher than the average volume for the past week. XRP’s RSI level has left the overbought territory on the 4-hour chart and is currently sitting at the value of 62.5.

Key levels to the upside                    Key levels to the downside

1: $0.19                                             1: $0.165

2: $0.2                                               2: $0.147

3: $0.205                                             3: $0.1

Categories
Crypto Videos

Make Huge Profits Market Pattern Trading In Crypto (Head and Shoulders, Triangles, Wedges) Part 2/2

https://youtu.be/vUqOHtyzbGI

https://youtu.be/vUqOHtyzbGI

 

pattern trading in cryptocurrencies (Head and Shoulders, Triangles, Wedges) – part 2/2

This part of the guide will cover various triangle formations as well as wedges.

Triangles

Triangles come in three formations:
Ascending triangle
Descending triangle
Symmetrical triangle

Ascending triangle

Traders can spot an ascending triangle by the price going up and down between the constant line of resistance and the rising support.
The ascending triangle is widely considered to be a bullish formation, which leads to massive profits if approached the right way.
However, those not careful enough might consider taking a position near the support line in hopes of enhancing their gains, only to end up with a loss as formation didn’t complete, and the price movement turns to be a double or triple top bearish formation.
Targeted prices are measured by the widest distance between the highs and the lows, and applied up from the point of the breakout.
Experienced traders will wait for a confirmation of the upward breakout accompanied by a much bigger volume before taking a position, as breakouts without an increase in volume can catch traders in a bull-trap (as we showed on the chart).

Descending Triangle

A descending triangle is considered a typical bearish formation. For it to form, the price action needs to flow between a steady support line and descending resistance.
The pattern is confirmed only once a downward breakout with increased volume happens. Only then can a trader expect the continuation of the price movement to the downside.
Just like with ascending triangles, the price target is equal to the widest swing inside the triangle transferred from the breakout point to the downside.

One of the most famous descending triangles in cryptocurrencies is the one that formed on the 2018 Bitcoin chart.

Symmetrical triangle

These triangles are probably the most common formations in cryptocurrency trading. However, at the same time, they are the most unpredictable.

As the symmetrical triangle approaches its closure, the trading volume drops as traders are often indecisive about whether the price will unfold to the upside or downside. When the war between the bulls and the bears resolves, we get two outcomes: positive and negative.
Any of these breakout movements will be followed by an increase in volume, which will be even more visible due to the reduced trading volume before the breakout.
Once the breakout happens, traders can expect the target price to be the same distance as the distance between the breakout side and the base of the triangle.

Wedges

Wedges are very common formations in crypto trading as well. They are considered a multiple price wave reversal patterns.
The price action in a wedge swings from highs to lows multiple times before breaking out of the pattern.
Wedge formations come in two forms:

Rising wedges
Falling wedges

Rising wedge

As opposed to the ascending triangle formation, the rising wedge has price swings that travel through highs and lows, but both the highs and lows are getting higher. This formation announces a bullish trend reversal into a strong bearish sentiment.

Falling wedge

The falling wedge formation, on the other hand, looks like a mirror image of the rising wedge and announces a trend reversal from bearish to bullish.

As with other patterns, it is advisable for traders to get the confirmation of the breakout before taking a position.
The minimum targeted price for the falling wedge is the exact opposite of the ascending wedge.

One thing to notice is that, in the cryptocurrency market, peaks do not necessarily follow highs and lows in an exact straight line. They are rather just close enough in the price range to mark the formation.

Categories
Crypto Market Analysis

Daily Crypto Review, Mar 26 – The calm before the storm? Cryptocurrency price analysis

The cryptocurrency market had a pretty steady day when it comes to price movements. Most cryptos remained at their levels of 1 day ago. Bitcoin is currently trading for $6,652, which represents a decrease of 0.78% on the day. Meanwhile, Ethereum lost 2.75% on the day, while XRP lost 1.17%.

The cryptocurrency market had a pretty steady day when it comes to price movements. Most cryptos remained at their levels of 1 day ago. Bitcoin is currently trading for $6,652, which represents a decrease of 0.78% on the day. Meanwhile, Ethereum lost 2.75% on the day, while XRP lost 1.17%.

The cryptocurrency market had a pretty steady day when it comes to price movements. Most cryptos remained at their levels of 1 day ago. Bitcoin is currently trading for $6,652, which represents a decrease of 0.78% on the day. Meanwhile, Ethereum lost 2.75% on the day, while XRP lost 1.17%.

EDC Blockchain took the position of today’s most prominent daily gainer, with gains of 871.81%. On the other side, Swipe lost 12.67% on the day, making it the most prominent daily loser.

Bitcoin’s dominance has increased over the past 24 hours. Its value is now 67.04%, which represents a 0.39% difference to the upside when compared to yesterday’s value.

The cryptocurrency market capitalization did not move much in the past 24 hours. Its current value is $184.21 billion. This value represents a decrease of $0.14 billion when compared to the value it had yesterday.

What happened in the past 24 hours

Bitcoin mining difficulty dropped by 15.95% in the past 24 hours. This is the second-largest decline in its history. Bitcoin price plummeted more than 50% percent last time a decline like this happened.

Though this is not a surefire way to determine the price direction, it is very much possible that Bitcoin will go down some more in the short-term.

Honorable mention

GRAM

Cardano launched Ouroboros Hydra, its off-chain scalability protocol on Mar 25. This protocol has gone live after five years of development.

The protocol increased scalability greatly for the Cardano blockchain. On top of that, it is using very little storage on the network’s nodes. Hydra could theoretically scale to 1,000,000 transactions per second.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin had a pretty stale day price-wise, as it did not move almost at all from yesterday. The largest digital currency by market cap is still trading just below the $6,850 resistance level without much fluctuation. While its price is above the weekly 200-period moving average, if the price doesn’t move to the upsidein the next couple of days, we can expect a leg down towards lower $6,000’s, or even lower.


Bitcoin’s volume drastically reduced from yesterday, while its RSI level dropped slightly towards the middle of the value range, currently being at the value of 56.

Key levels to the upside                    Key levels to the downside

1: $6,850                                           1: $6,640

2: $7,085                                           2: $5,960

3: $7,420                                            3: $5,000

Ethereum

Ethereum has almost mirrored the movements of Bitcoin for the past 24 hours. The second-largest cryptocurrency had close to no movement on the day, with its price being right below the $139 resistance line. However, the only change from yesterday is exactly the $139 level. While it was undecided whether the price will end up below or above it yesterday, it is quite clear that Ethereum will trade below this level for the time being.


Ethereum’s volume also dropped severely from yesterday, while its RSI level is currently at the value of 51.

Key levels to the upside                    Key levels to the downside

1: $168                                                1: $128

2: $178.6                                            2: $122.5 

3: $185                                                3: $100

Ripple

XRP had a bit more movement than Bitcoin and Ethereum in the past 24 hours. Namely, its price moved down to $0.157 but quickly recovered to its previous level of around $0.16. XRP is trading between the resistance of $0.165 and support of $0.147 for five days now, without any signs of going up or down.


XRP’s volume decreased slightly over the past 24 hours, while its RSI level dropped to 53.

Key levels to the upside                    Key levels to the downside

1: $0.165                                            1: $0.147

2: $0.19                                              2: $0.1

3: $0.2                                              

Categories
Crypto Daily Topic

Cryptocurrencies and Ponzi schemes

According to a report by Chainalysis, crypto Ponzi schemes are now the biggest crypto crime. In 2019, Ponzi schemes accounted for 92% of proceedings from crypto crimes. Ponzi schemes are financial fraud schemes that trick unwitting people into investing money in a non-existent enterprise. Ponzi schemers sustain the fraud but paying out profits to initial […]

According to a report by Chainalysis, crypto Ponzi schemes are now the biggest crypto crime. In 2019, Ponzi schemes accounted for 92% of proceedings from crypto crimes. Ponzi schemes are financial fraud schemes that trick unwitting people into investing money in a non-existent enterprise. Ponzi schemers sustain the fraud but paying out profits to initial […]

According to a report by Chainalysis, crypto Ponzi schemes are now the biggest crypto crime. In 2019, Ponzi schemes accounted for 92% of proceedings from crypto crimes.

Ponzi schemes are financial fraud schemes that trick unwitting people into investing money in a non-existent enterprise. Ponzi schemers sustain the fraud but paying out profits to initial investors using the money that new investors have pumped into the project. Ponzi schemes are able to sustain this lie for a while – but the facade starts cracking when they can no longer attract new investors, and old investors start getting concerned.

Ponzi schemers are now moving into the cryptocurrency space to try their luck. This is because many people are still unfamiliar with cryptocurrency or how the technology really works, rendering them vulnerable to any investment lie mixed with some truths. There is also the sentiment about cryptocurrency being a “get-rich-quick” investment. The crypto space also has few checks and balances – thanks to its decentralized and deregulated nature – making it easy to defraud unsuspecting investors and evade the law – even if just for a while.  

OneCoin: the Greatest Crypto Ponzi scheme of All Time

OneCoin is perhaps the cryptocurrency Ponzi scheme that takes the crown. US prosecutors have concluded that the scheme raked in approximately $4 billion from investors around the globe. From Palestine to the UK to Uganda to India to the US, people from all over the world were duped into sinking money into “the next Bitcoin.” 

In China alone, authorities recovered $267.5 million and prosecuted over 90 people in connection with the scheme. 

Dr. Ruja Ignatova, the mastermind behind the scheme, has been missing since 2017. The last that was heard of her is that she boarded a plane from Sofia to Athens never to be seen or heard from again. 

OneCoin was launched by Ignatova, a Bulgarian, who according to her LinkedIn profile, is an Oxford graduate and a former McKinsey employee. 

On the surface, you couldn’t have suspected anything was amiss. After all, OneCoin supposedly worked like any other cryptocurrency that generated new coins via mining and could be used to facilitate global payments. Also, it came with a safe and secure wallet, and it had a “total supply of 120 billion” coins. 

Network participants were required to buy educational materials that included cryptocurrencies, trading, and trading analysis, investments, and so on. 

Participants could also receive discounted packages and referral rewards if they got more users to join the network. 

Ostensibly, OneCoin was a “centralized network” where the team “took care of all technical aspects.” In truth, however, OneCoins were engineered by the scammers who programmed it from $0.56 to around $ 33.68. 

Also, it was later debunked that OneCoin never really had a blockchain, with police saying that it lacked “a true blockchain that is public and verifiable.”

The Launch of Onecoin

In June of 2016, Dr. Ruja appeared on stage at a flashy event on the Wembley Stadium in London, dressed resplendently in a ball gown complete with long earrings. With superlative after superlative, she described OneCoin as the next big thing, including that OneCoin would be “the biggest out there,” and it would “write history.” She told hundreds (or perhaps thousands) of screaming fans that OneCoin was the “most transparent, most powerful, and most legal” cryptocurrency. She concluded with this classic: “In two years, nobody will speak about bitcoin anymore!”

Despite OneCoin allegedly growing rapidly and stories of success, investors were starting to get concerned. A long-touted crypto exchange that would let users exchange one coin into Fiat was being constantly postponed. At an event in Lisbon where organizers would allay investor concerns, Dr. Ruja was a no-show. 

FBI records indicate that she flew on a Ryanair flight from Sofia to Athens on October 25, 2016, and that is the last that investigators know for now. A BBC article surmises that she might be living in Frankfurt under a fake identity. 

She has been charged in absentia with securities and wire fraud and money laundering. Her brother, Konstantin Ignatov, has been convicted for money laundering and fraud. A US lawyer Mark Scott has also been convicted for money laundering in connection with the OneCoin scam.

How to Smell a Cryptocurrency Ponzi scheme From Miles Away

The OneCoin story is a juicy one, but in there lies very important lessons for every aspiring cryptocurrency investor. Investors who put money into the project will likely never be able to recover it. Even though authorities might successfully recoup some of the money, the probability that individual investors around the world will be fully compensated is very low. Their money’s gone, just like that. 

So how can you protect yourself from these kinds of scams? After all, such fraudsters are not going anywhere; in fact, they are constantly reinventing the game. 

Always look out for these red lights: 

i) Massive and Consistent Returns

This is perhaps the most obvious tell-tale sign of a Ponzi scheme. No investment can consistently return massive profits almost without risk. So when you see a project bragging about an impossibly high rate of returns, think twice. The general rule is: if it is too good to be true, it probably is.

ii) Returns Dependent on Referrals

If an investment project relies too much on referrals, then that is a red alert. Referral and commissions are the main routes through which participants will earn in most Ponzi schemes. If you see this kind of a model in any enterprise, it means the business itself is unprofitable, and sooner or later, it will cave in. 

iii) Unclear Ownership

Who owns the company? Are the founders in the shadows, or is information about the company inconsistent? If you know what to look for, a simple Google search should be able to reveal any shadiness. 

iv) Need To Join For More Information

To escape the law, many websites of crypto schemes will put up the facade of a legitimate business such as a wallet service, a cloud mining platform, etc. Then they will tell you that to access the investment portion, you need to sign up first. This should set off your alarm bells.

v) Closed-source or Non-Public Blockchain

The tradition of cryptocurrencies is to exist in the open. But scam coins will usually hide their source code such that others in the development space cannot review it. Also, their blockchain is not up for public participation.

Final Thoughts 

As you can see, crypto Ponzi schemes are well and alive. Fraudsters are rushing in to cash in on the allure that cryptocurrencies hold, and if you’re not careful, it’s easy to get roiled in a Ponzi scheme and lose your savings in a flash. These nuggets should help protect you from falling victim to a crypto Ponzi scheme.

Categories
Cryptocurrencies

What are DAOs and DACs? 

The days are long gone when bitcoin was the hype surrounding blockchain technology. The blockchain space had expanded in ways no one could have envisioned when the technology was still in infancy. One of the most exciting topics in the space right now is that of decentralized autonomous entities. 

The days are long gone when bitcoin was the hype surrounding blockchain technology. The blockchain space had expanded in ways no one could have envisioned when the technology was still in infancy. One of the most exciting topics in the space right now is that of decentralized autonomous entities. 

The days are long gone when bitcoin was the hype surrounding blockchain technology. The blockchain space had expanded in ways no one could have envisioned when the technology was still in infancy. One of the most exciting topics in the space right now is that of decentralized autonomous entities. 

Decentralized autonomous organizations (DAOs) are an entirely new phenomenon that might very well shake up the current organizational set up as we know it. This piece breaks down DAOs, together with their equally interesting subgroup known as decentralized autonomous companies (DACs). 

What are DAOs and DACs? Where do humans fit in, if at all? What does this mean for the future of the corporate space? Let’s find out.

Decentralized Organizations 

To begin to explore decentralized autonomous organizations and decentralized autonomous corporations (companies), we need to first understand the concept of decentralized organizations. A decentralized organization follows the very same concept of traditional organizations – only this time, it decentralizes it. A traditional organization features a hierarchical structure with human beings interacting with each other and running operations based on a set of rules. 

Now, a decentralized organization also features human beings interacting with each other, but this time following a protocol that is coded and enforced on the blockchain. A decentralized organization does not mean that operations are automated. Rather, decisions and operations and the direction of the organization are still determined by humans.

Concepts underlying DAOs and DACs

There are several concepts that are underlying the entire DAO and DAC model that we need to familiarize ourselves with, first. Let’s get a grasp of them below:

☑️Smart contracts: A smart contract is a contract that is self-verifying and self-enforcing when certain conditions have been met. A smart contract is much like a traditional contract but without the intermediaries like lawyers, accountants, and so on. Since a smart contract does not need third parties to oversee is execution, it’s way more economical in terms of time and costs.

☑️Autonomous agent: These are software entities that can conduct a set of operations on behalf of a user or another program. Autonomous agents are either completely autonomous or possess a certain degree of autonomy. Autonomous agents act with inspiration or understanding of the user’s wishes or desires.

☑️Internal capital: This is property belonging to an organization and which can be transferred to other parties. Internal capital can either be physical or virtual.

☑️Decentralized application: This is an application that runs on a distributed network. These applications are not controlled by any single authority, neither can they be shut down or experience downtime since they run on a distributed network of computers, thus eliminating a single point of failure. 

Decentralized Autonomous Organizations (DAOs) 

A DAO is an entity that operates purely on the internet and whose operations are autonomous, though these operations are input by humans. To understand what a DAO is, it helps to think in terms of what it is not. 

Let’s begin by looking at decentralized applications (DAs). A DAO is a DA, but with internal capital. This means that a DAO has some sort of property that has value, and it can use this property to reward certain activities or transfer that property to some external entities. A DAO also utilizes autonomous agents to carry out some activities in place of humans. 

So we can say a DAO relies on human input to kick off operations – with the operations being automated, that is, independent of human intervention. As such, a DAO can be described as being automated at the center, but having human action at the edges.

Decentralized Autonomous Companies/Corporations (DACs) 

Now we come to DACs. DACs are a subset of (DAOs). We can look at it this way: all DACs are DAOs, but not all DAOs are DACs. One standout feature of DACs is that they are profit-driven. A DAC has stakeholders who have a right to the share of profits that it generates.

What Are The Benefits Of DAOs and DACS?  

Both DAOs and DACS present with some benefits of their underlying automation-at-the-center, humans-at-edge model. 

i) A Borderless and Non-Jurisdictional Organization  

Let’s contrast this with the traditional model of organizations. These organizations possess a corporate personality, exist within a physical space, provide physical goods and services, and operations are run by paid employees. This system is subject to a ton of regulations and rules, as well as legal, accounting, and energy costs. 

A DAO can circumvent some or even all of these issues. This doesn’t mean that a DAO will be exempt from corporate laws. Regulators will most likely take this position: If it looks like a duck and quacks like a duck, it’s probably a duck. However, the very nature of a DAO will enable it to sidestep some of the issues that a traditional organization can simply not avoid. 

 ii) An Increased Sense of Ownership for Members

The traditional model of companies concentrates much of the decision-making power and money at the top. Shareholders take the biggest piece of the pie, followed by executives, then top-level management. The average employee is consigned to the very bottom of the rung. This model is not the most ideal for modern corporate space. Research shows a hierarchical structure negatively impacts employee satisfaction, job quality, loyalty, and morale. 

DAOs can solve this by providing everyone with a monetary and decision-making stake, as well as fostering feelings of belonging and ‘buy-in’. This results in more motivated employees who will dedicate the time and effort into the long-term success and thriving of an organization. 

iii) Ability to Foster New Business Relationships 

The importance of business-to-business relationships cannot be overstated. Arrangements such as joint ventures, partnerships, and so on can enable companies to work together and save resources, promote trust, and define their own market-friendly rules. The ability for this to happen in an open, transparent, and autonomous manner is a win for all parties involved.

iv) Early Preparation for the Future of Decentralized Organizations 

With the increasing recognition and adoption of blockchain and smart contracts, it’s a matter of time before businesses take it “on-chain”. In the future, contracts and online agreements that do not have some sort of smart contract functionality will be treated with suspicion because people will see it as an unwillingness to do business in a trustless environment.  

The question “what are you hiding?” will not be too off the mark. As such, on-chain based organizations will be best positioned to take advantage of the opportunities of the model as well as trailblaze the field. Also, blockchain makes things more efficient – and this will enable such companies to knock off the competition and become a source of pride for their members. 

What’s So Special About The DAO and DAC Model?   

The DAO and DAC model proposes utilizing the blockchain to automate the vast majority of internal functions, as well as external engagements. The big vision here is an ecosystem of automated, borderless organizations all running on enterprise blockchains. What is so special about this model? Why should businesses and, indeed, the world pay attention? 

Openness means total transparency in the organization’s operations. The blockchain-based way of doing things means functions such as voting, financial records and payroll management, constitutional procedures, and so on are done in a completely transparent fashion. Minority shareholders never have to worry that the majority of shareholders are partaking in dubious activities. 

Also, members are sure that there is no misappropriation of funds taking place. A blockchain-based business can also utilize a multi-signature wallet that requires every member to authorize transactions. In short, there is fairness and risks are mitigated. 

Automation through smart contracts takes everything to a new level of excitement. Employees can be assured that there are funds to reward them for their work before they can begin on projects. Employers can ascertain that employee credentials are up to the mark, and outside engagements can be arranged without the need for outsourcing.

The DAO model is blockchain-native. Decentralized applications will enable companies to utilize blockchain technology to a certain extent. But DAOs will take things to new levels by incorporating functionalities into the blockchain structure. This will lead to frictionless operations and create an environment where enterprises can reap the full benefits of blockchain.

Final Thoughts 

These organizations are not just a theoretical concept. Projects like Aragon, Bitshares, and Colony have already taken the mantle in this space. Satoshidice, an online casino, is another unexpected entity that embodies what a DAC is. With projects like these already up and running, it’s clear that we’ve barely scratched the surface of what the DAO model is truly capable of becoming. 

Categories
Crypto Videos

Make Huge Profits Market Pattern Trading In Crypto (Head and Shoulders, Triangles, Wedges) Part 1/2

Market pattern trading in cryptocurrencies (Head and Shoulders, Triangles, Wedges) – part 1/2

Finding ways to predict the future price movement of an asset has always been incredibly hard, no matter what asset you are trading. Cryptocurrency trading differs slightly from trading other assets, as it is more volatile, much younger, and susceptible to fear of missing out as well as fear, uncertainty, and doubt.
Although the number of factors that influence the price of a cryptocurrency is almost immeasurable (reaching milestones, partnerships, security breaches, new regulations, etc.), combining this knowledge with the usage of other methods, such as trend detection can be quite profitable.

No matter how volatile the prices of cryptocurrencies may be, at times, experienced traders can spot distinct movement patterns that allow them to predict the direction of the price movement. This guide will explain the fundamentals of three patterns that traders look for when trading crypto on various exchanges.

Head and shoulders pattern

The head and shoulders pattern is a price formation that, to an inexperienced trader, look like a baseline with three peaks and nothing more.
However, if we spot that the middle peak is higher than the other two, which are similar in size, we can deduce that it is, in fact, the head and shoulders pattern.

In technical analysis, a head and shoulders pattern is a sign of bullish-to-bearish trend reversal. It is regarded as one of the most reliable, if not the most reliable trend reversal patterns.
As the cryptocurrency market is extremely volatile and bulls and bears constantly switch in terms of market dominance, the head and shoulders pattern would appear after the market has been dominated by bulls.

After the first price stagnation (which is the Shoulder 1), and the price reaches a new high (which is the head), it still may be possible that the pattern will not form and that the bulls will push the price even higher. However, after the price goes down for the second time, bulls often try to push it up again (which is the Shoulder 2). If they don’t succeed and the price stops at the price level similar to the one of Shoulder 1, it becomes evident that bears are taking over the market.

The target price in this reversal is equal to the distance from the neckline to the peak of the head but in the opposite direction.
When deciding whether to trade the head and shoulders pattern, traders should not just assume that the pattern is going to play out. Instead, they should be patient and wait for the decline after the right peak to reach the neckline. Only then can they think of taking a position.
Reversed head and shoulders
Traders should also look for the reversed head and shoulders pattern, which plays out the same way a regular one does, but in the opposite direction. This pattern marks the end of the bear season.

Check out part 2 of our pattern trading guide, where we will cover various triangle formations as well as wedges.

Categories
Cryptocurrencies

How Can Blockchain Improve the Music Industry?

Music is a universal language that connects all of us, regardless of where we come from or what language we speak. Music makes us move and dance and lifts our moods and spirit. But how much do we know about what goes on behind the creative scenes? Unlike the music itself, the goings-on in the music industry are not as harmonious.

Music is a universal language that connects all of us, regardless of where we come from or what language we speak. Music makes us move and dance and lifts our moods and spirit. But how much do we know about what goes on behind the creative scenes? Unlike the music itself, the goings-on in the music industry are not as harmonious.

Music is a universal language that connects all of us, regardless of where we come from or what language we speak. Music makes us move and dance and lifts our moods and spirit. But how much do we know about what goes on behind the creative scenes? Unlike the music itself, the goings-on in the music industry are not as harmonious.

From delayed payments to a lack of transparency to artists earning way too little, the current way of doing things in the music industry is too fractured. The industry is rife with conflict between artists and managers and artists and distributing services. Claims of distributing content without permission or unclear revenue splitting methods are some of the persistent bones of contention. 

But this may change soon, thanks to the decentralized, immutable, and transparent blockchain. Blockchain is transforming the way the music industry handles contracts, how artists receive their deserved pay, and how royalties and copyrights are managed.

This piece explores this topic deeper by identifying the ways blockchain can improve relationships among various parties in music and how artists can catch a break from the currently skewed revenue-sharing model. We’ll also be looking at some exciting blockchain-based projects that are leading in this space.

Blockchain and Music: Use Cases

i) Decentralization

In the current musical setup, centralized entities, e.g., Apple Music, are the ones who provide music to the masses. This means they control what music is aired and that they (entities) are subject to the regulations (and whims) of the country they reside in, or indeed external governments with vested interests. This means they can delist musical content when instructed to do so. This can be illustrated by Apple Music removing the contributions of Chinese pro-democracy singers Li Zhi, Anthony Wong, and Dennis Ho – due to pressure from the Chinese government. 

Blockchain-based music distribution would be immune to this kind of censorship or unilateralism. With blockchain, no one can delete artists from musical platforms, and no one would be capable of taking any music down from the platform. Artists will be able to distribute what they like whenever they like, and to whomever they like. No government or states would have any say or influence whatsoever on what kind of content is played.

ii) Fairer Royalty Systems

The music industry constantly finds itself mired in financial squabbles over unpaid royalties. For instance, Spotify, the streaming giant, had to pay up to 30 million dollars in settlements after being sued by music publishing and songwriters over uncompensated work.

This fiasco testifies to the never-ending misunderstanding over who is owed what that plays out in the traditional music setup.

Blockchain would solve this problem by providing transparency and value for everyone involved. It can do this by tracking royalties then ensuring that they go to their rightful owners, as well as ensure various contributors are compensated for their input into a song. Smart contracts powered by blockchain can also streamline payments so that artists are paid for songs as soon as they are played or downloaded. This is in contrast to the current scenario where they have to wait for weeks, months, or even years to receive payment.

iii) Better Revenue-Sharing Model

Currently, musical artists are getting the short end of the stick. For instance, musicians got a meager 12% out of the total $43 billion in revenue for the music industry in 2017. And this was an improvement from the 7% cut that they got in 2000.

While recording companies and distributors bear much of the financial risk, the revenue distribution still seems unfair. Blockchain-enabled distribution platforms world cut out the many intermediaries involved in music distribution – ensuring only the contributing parties are on the payroll. This way, artists can go home with a fairer compensation for their work.

iv) New Monetization Models

With blockchain technology, artists can discover new ways of making money instead of relying on the traditional revenue model. The traditional model brings in money from touring, playing live, licensing fees, and so on.

Instead of depending solely on these revenue streams, artists can generate more revenue via blockchain-based models. For instance, they could come up with a cryptocurrency for a specific song or album. Through this cryptocurrency, they can create a virtual “stock market” through which listeners can purchase pieces of the rights of the song. Artists can then receive money from the money trickling down from the purchases. Blockchain-based smart contracts would ensure security, fairness, and transparency in this model.

v) A Global Music Registry

One of the challenges the music industry is grappling with currently is lack of a verified global registry of musical works. Attempts to build one have come to naught – resulting in the waste of millions of dollars.

A global music registry that identifies music rights holders would help streamline the royalties and rights management of music globally. Blockchain would help this by providing an open and transparent protocol where all musicians, composers, and other associated parties can have their rights managed more efficiently and fairly. 

vi) Change the Concept of Advances

An advance in the music industry refers to the pre-payment of royalties, whether by a label or a distributor to an artist. This arrangement has its share of problems. First, artists will have to recoup the advance at a later date, and the recording company bears the larger share of the overhead risk. 

Blockchain could change how advances are made – by distributing the risk among various stakeholders, facilitating a fairer distribution of royalties, and offloading much of the risk from the recording company.

Examples of Blockchain-Based Musical Projects 

MediaChain: This is a blockchain-based company that organizes open-source information with the use of unique identifiers for every single piece of information. Via the MediaChain platform, artists can also see to it that they paid fairly. By utilizing smart contracts, MediaChain allows artists to stipulate their royalties and rights without the need to integrate third-party intermediaries or contingencies.  The company has already been acquired by the streaming giant Spotify to assist in streamlining royalty and rights management in the music industry.

Ujo: This is a decentralized, blockchain-based platform on which artists can upload music, self-publish, and manage licensing and distribution. The Ethereum-based platform manages a database for music ownership rights and distributes royalties fairly and transparently via the use of smart contracts.

Choon: This is an Ethereum-based digital streaming platform that fairly and timely compensates artists for their work. On the Choon platform, artists can create smart contracts that ensure every contributor is fairly rewarded.  Rather than wait for weeks, months, or years to compensate artists, Choon rewards them almost immediately according to the number of streams the blockchain has recorded on any given day. Choon also features a crowdfunding function that allows burgeoning artists to gain a solid footing in the game. The platform also allows music fans to create personalized playlists and get paid for it.

VOISE: This is a blockchain-powered application that has its own token. The platform’s token enables artists to get paid for their music in a peer-to-peer marketplace. VOISE provides a collaborative platform through which artists can upload music according to fan preferences while getting almost 100% of revenue from the music. Artists using the VOISE platform can also determine how much listeners will pay for consuming their content. Artists can also offer free sample tracks to lucky listeners and receive feedback and support from the community.

Concluding Thoughts

Blockchain is making things better for music. Artists can get their fair pay without contention; risks can be shouldered by various parties so that record labels do not bear the brunt. Fans can participate in the music-making process, and artists can find support within the community. Everybody wins.

What we are yet to see, though, is the full-scale adoption of the technology in the industry. Perhaps this is because movers and shakers of the industry are yet to discover the revolutionary potential of blockchain, or because transitioning into a new way of doing things is easier than done. Either way, the music industry stands to benefit massively from blockchain, and the sooner it wakes up to this fact, the better.

Categories
Crypto Daily Topic

Here’s How Blockchain is Redefining the Gaming Industry

Revenue from the gaming industry is projected to increase from $135 billion to over $300 billion by 2025. As has always been the case, the industry relies heavily on new technologies to propel its growth. With blockchain technology finding use across various industries, the gaming sector is banking on this technology not just to increase the industry’s revenue but also to improve gamers’ experience. Besides, with the rise of eGaming, this is the best time to integrate blockchain in the gaming industry in anticipation of the crypto-market maturation.

Revenue from the gaming industry is projected to increase from $135 billion to over $300 billion by 2025. As has always been the case, the industry relies heavily on new technologies to propel its growth. With blockchain technology finding use across various industries, the gaming sector is banking on this technology not just to increase the industry’s revenue but also to improve gamers’ experience. Besides, with the rise of eGaming, this is the best time to integrate blockchain in the gaming industry in anticipation of the crypto-market maturation.

Revenue from the gaming industry is projected to increase from $135 billion to over $300 billion by 2025. As has always been the case, the industry relies heavily on new technologies to propel its growth. With blockchain technology finding use across various industries, the gaming sector is banking on this technology not just to increase the industry’s revenue but also to improve gamers’ experience. Besides, with the rise of eGaming, this is the best time to integrate blockchain in the gaming industry in anticipation of the crypto-market maturation.

Advantages blockchain has in store for the gaming industry

i) Improved Transparency and Decentralisation

Though fairness is of utmost importance with any kind of game, it matters, even more when you’re playing for money in games such as online casinos and sports betting. As a player, you need to be certain that the results of the game aren’t manipulated in any way. 

Thanks to blockchain’s immutable nature, crypto-based sports betting sites and online casinos boast high integrity since all game proceedings are made public for players to verify. Most importantly, the technology itself isn’t controlled by any central authority. This goes a long way into ensuring that gaming companies cannot know game results, for example, the dealing of a particular card. 

It should be noted that these advantages aren’t confined to online gambling only. Online multiplayer games such as multiplayer online battle area (MOBA) and War Riders have also benefited from blockchain technology. These games usually award prize money to the best team of players. In such cases, blockchain can be used to guarantee fair-play.     

ii) Regulate Gaming Economies

For quite a long time now, virtual gaming assets in battle royale games have been under the control of game developers. The players are only allowed to purchase the assets and use them to advance their play, while the developers have the power to change or remove these items as they wish.

Blockchain is, however, shifting game-asset ownership from the developers to players. The technology has successfully been employed in games such as Gods Unchained, where ownership of the gaming assets is transferred to a gamer through smart contracts. Of course, certain conditions have to be met first before a player can take up ownership. These conditions include purchasing assets or completing certain levels. 

As a result, players now have the freedom to auction, rent, or sell their gaming assets for fiat currencies. This new form of liquidity attracts more players, increasing revenue for game developers while rewarding players at the same time. 

iii) Secures game assets

For most online gamers, there is a constant concern about privacy and the safety of personal details, especially when purchasing game assets or funding your online casino wallet. The same can be said about game developers whereby lack of online security means that fraudsters can easily counterfeit gaming assets and sell them off – decreasing the value of all other assets.

These problems can be mitigated by blockchain-based games that offer high security and privacy protection. As such, all payment details made by the players are encoded by the cryptographic protocol, protecting players’ privacy. Equally, the gaming items are secured, meaning their value is protected since fraudsters can’t counterfeit any item. 

iv) Explore New Gaming Universes

By linking in-game data to the distributed ledger, gamers can trade their items between different games. Also, they can recycle their gaming assets while experimenting with their characters on different games. Of course, this can only happen on games sharing the same blockchain network where the gaming items are represented by similar digital tokens. 

Problems Facing Blockchain Gaming

The exciting world of blockchain gaming has a lot to offer, but it faces several obstacles, most of which are related to the underlying protocol. 

Cost: There are transactional costs that come with completing certain functions in a blockchain-based game. For instance, buying gaming items or upgrading a character. However, negligible these costs may seem, they do compound to significant amounts over time. 

Speed: Most of the blockchain games in the market right now focus on using the technology primarily for asset creation and regulating asset trading. If a game was to incorporate the technology in all its functionalities, it would be too slow for any quality gaming experience. Even the few games that run completely on the blockchain may not be appealing to players who value high-quality graphics and elaborate gaming experience. 

Scalability: Irrespective of the industry, scalability has always been the biggest problem facing blockchain. In the gaming industry where numerous transactions take place all at once, the current blockchains don’t have the capacity to support such a load. This explains why blockchain games are inherently slow and even expensive to run. If blockchain games are to achieve mass adoption, the technology needs to be enhanced to handle the increased transactions. 

Competition: Judging from the current landscape of the industry, blockchain games are mostly developed by small independent groups, usually known as indie games. These groups face stiff competition from well-established gaming companies who haven’t shown any interest in adopting blockchain. 

The big companies control a wide share of the market, so it’s hard for indie games to penetrate the market and pioneer the adoption of blockchain gaming. Hopefully, with blue-chip gaming companies such as Ubisoft, who are planning on experimenting with the technology, blockchain gaming has a shot at going mainstream. 

Conclusion

Blockchain is an ideal solution to some of the challenges facing the gaming industry. From ensuring fairness, improving gaming economies, to decentralizing the gaming experience, the technology is set to revolutionize the industry. With time, some of the hindrances standing in the way of blockchain gaming systems might be solved as the technology matures. Besides, it was developed about a decade ago, meaning it still has a lot of time to evolve and solve its own problems.

Categories
Crypto Market Analysis

Daily Crypto Review, Mar 25 – BTC failing to break above $7,000; What to expect next?

The cryptocurrency market attempted to go up and reach new highs but failed to do so as Bitcoin couldn’t break above the $6850 resistance successfully. Bitcoin is currently trading for $6,682, which represents a decrease of 0.63% on the day. Meanwhile, Ethereum lost 1.48% on the day, while XRP lost 0.02%.

The cryptocurrency market attempted to go up and reach new highs but failed to do so as Bitcoin couldn’t break above the $6850 resistance successfully. Bitcoin is currently trading for $6,682, which represents a decrease of 0.63% on the day. Meanwhile, Ethereum lost 1.48% on the day, while XRP lost 0.02%.

The cryptocurrency market attempted to go up and reach new highs but failed to do so as Bitcoin couldn’t break above the $6850 resistance successfully. Bitcoin is currently trading for $6,682, which represents a decrease of 0.63% on the day. Meanwhile, Ethereum lost 1.48% on the day, while XRP lost 0.02%.

ZEON took the position of today’s most prominent daily gainer, with gains of 272.17%. On the other side, Molecular Future lost 11.20% on the day, making it the most prominent daily loser.

Bitcoin’s dominance has increased over the past 24 hours. Its value is now 66.65%, which represents a 0.26% difference to the upside when compared to yesterday’s value.

The cryptocurrency market capitalization increased over the past 24 hours, with a current value of $184.35 billion. This value represents an increase of $4.7 billion when compared to the value it had yesterday.

What happened in the past 24 hours

Blockchain analysis firm Coin Metrics found out that even though Bitcoin was experiencing tough times (especially the one when its price had the biggest daily loss in the last seven years), stablecoins bloomed.

This company released its State of the Network report on Mar 23. Stablecoins gained a lot of the market share, which everyone could see. However, spreads on spot and futures markets widened, while transfer fees went up as people rushed to deposit coins.

Honorable mention

GRAM

A United States District Court has ruled against Telegram for the issue of using GRAM tokens without declaring that they are securities prior to the ICO.

Prior to that, the Securities and Exchange Commission’s requested a preliminary injunction, to which the Court answered that it finds that the SEC has shown great likelihood of success in proving the contracts and understandings at issue. This would be including the sale of 2.9 billion Grams to 175 purchasers which netted Telegram $1.7 billion.

_______________________________________________________________________

Technical analysis

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Bitcoin

Bitcoin had somewhat a turbulent day, with its price going from all the way to $7,000 and then back down to $6500, only to stabilize at just sligtly higher levels than yesterday. The largest cryptocurrency did not manage to break the $6,850 resistance successfuly, so the bears stepped in and brought the price back down. BTC is now holding below $6,850 and above $6,640. This move might be percieved as a fakeout above $6,850 and the market might look for a leg down towards the low $6,000’s or lower.


Bitcoin’s volume did not increase during the spike, which is quite interesting. Its RSI level is currently at the level of 62.

Key levels to the upside                    Key levels to the downside

1: $6,850                                           1: $6,640

2: $7,085                                           2: $5,960

3: $7,420                                            3: $5,000

Ethereum

Ethereum is currently fighting for where it will go next. Its price is stuck right at the $139 level, not knowing whether it will go up or down. However, a break to any side will not be as significant as the moves that Bitcoin makes, and could only bring the price up or down so far.


Ethereum’s volume is still at extremely low levels, while its RSI level is currently just above the mid-point of the value range, sitting at the value of 57.

Key levels to the upside                    Key levels to the downside

1: $168                                                1: $128

2: $178.6                                            2: $122.5 

3: $185                                                3: $100

Ripple

XRP had a day of virtually no movement. However, this is not quite due to its price, not wanting to move. The third-largest cryptocurrency was trading right below the $0.165 level, constantly failing to break it. This exact thing happened in the past 24 hours as well, as the price kept trying to go above the resistance, failing, and then going back to its previous levels.


XRP’s volume saw no increase or decrease on the day, while its RSI level is currently at 57.

Key levels to the upside                    Key levels to the downside

1: $0.165                                            1: $0.147

2: $0.19                                              2: $0.1

3: $0.2                                              

Categories
Cryptocurrencies

What Does it Take to Launch A Successful ICO?

For the last three years, Initial Coin Offerings (ICOs) have been compared to the dot-com bubble of the early 2000s. The two are much alike in that they led to significant loss of investors’ money. The only difference being that ICOs caused an 85% drop in the crypto market cap, which is steeper than the dot-com’s bubble – 78% crash.  

For the last three years, Initial Coin Offerings (ICOs) have been compared to the dot-com bubble of the early 2000s. The two are much alike in that they led to significant loss of investors’ money. The only difference being that ICOs caused an 85% drop in the crypto market cap, which is steeper than the dot-com’s bubble – 78% crash.  

For the last three years, Initial Coin Offerings (ICOs) have been compared to the dot-com bubble of the early 2000s. The two are much alike in that they led to significant loss of investors’ money. The only difference being that ICOs caused an 85% drop in the crypto market cap, which is steeper than the dot-com’s bubble – 78% crash.  

Well, the ICO bubble may have popped as recent data suggests, but there are valuable lessons to be drawn from its failure. These lessons can be used to form the basis of what it takes to launch a successful ICO despite the prevailing skepticism around such projects. 

How to launch a successful ICo

i) Formulate a Sound Business Model

Similar to traditional businesses, most ICO projects fail due to the lack of a strategic business plan. As such, ICO investors are willing to invest in a project that has a sound business model with a concrete idea of the product or solution the project offers to the market. To achieve this, you need to objectively study the market, know your audience, and weigh your project’s contribution to the crypto community. 

Once you have all the relevant data, it is always recommended to write a whitepaper for the investors to review. Essentially, a whitepaper is a comprehensive description of your entire project and its goals. Be sure to also include crucial details such as development strategies, legal issues, and available resources. Sure, a well-crafted whitepaper isn’t a guarantee of success. But a poorly written whitepaper with an impractical approach to achieving the project’s goals will certainly turn investors away. 

ii) Create Value for Your Token

Ideally, an ICO campaign will launch its own tokens that give investors access to the service or product set to be launched. If your token is to gain value, it will need to be in high market demand to attract more investors. Note that demand can be created only if your business model offers better solutions than your competitors. Besides, there are numerous project offerings in the market, so you have to make yours stand out. 

Provided you have a solid business plan, there are two main approaches to increasing the value of your token. The first is designing a token distribution plan, and the other one is deciding on the exact number of tokens to be issued. To start with, the token distribution plan is done through private sales pre-sales or crowd sales. Private sales are closed ICO sales targeting high profile investors and professional investors. The idea here is to raise a significant amount of funds and leverage the influence of wealthy investors to gain the attention of others during the public sale. 

Pre-sales are usually held in preparation for the main public sale. They are usually done to raise awareness of the token among the general public. The crowd sale targets investors, including those with limited amounts of investment. 

In each stage of the token sale, decide in advance how many tokens will be issued in total. 

You should also create room for issuance of additional tokens just to maintain market equilibrium. 

iii) Build Your Team

Much of an ICO’s success depends on the team behind the project. From the marketing team, product developers, engineers, to the initial investors; they all need to be in sync with the objectives of your ICO project. It is also wise to include a lawyer in your core team to help you streamline the legal process of launching the ICO. Currently, there aren’t any lawyers specializing in crypto space, but an experienced lawyer in corporate formation can serve you just right. 

Other members of your team, such as financial experts and developers, should have a good reputation in the blockchain industry. This goes a long way into giving your project the credibility it deserves to win reliable investors. A good team should consist of members who can complement each other’s skillset and even bring like-minded professionals on board. 

You might also consider having well-known advisers and promoters in alliance with your team. Although this doesn’t always translate to success, these individuals will help vouch for your project. 

Keep in mind that a team doesn’t entail those tied directly to the project only. Your target customers also have a place in your team. Advertising might win you some customers, but it’s an expensive approach considering that not everyone is interested in ICOs. A good place to start is by interacting with your customer base is through established online crypto communities such as Bitcointalk, Steemit, and Reddit. You can also work closely with YouTubers specializing in cryptocurrency. This way, once you start your marketing campaign, the audience will already be familiar with your offering and be likely to be swayed into investing. 

iv) Build an Online Presence

Having an online presence is not only a viable marketing tool but also a good way to give your project a touch of legitimacy. 

You can start by creating a website that showcases the necessary details of your project. As such, it makes sense to post an online whitepaper of your project on the website. Most importantly, remember to create a ‘team’ section on your web where all the project stakeholders appear. This section should be detailed, explaining the role of each team member, including their previous work and the milestones they have achieved. Be sure to include a passport size picture of each member above their profile. 

You also need to know that only a handful of investors read the whitepaper to the very last page. For this reason, it is a good idea to have a ‘roadmap’ section on your website to concisely outline realistic goals of the project, including the set timeframes to achieve these objectives. 

Your online presence wouldn’t be complete without creating social media platforms. You should have one platform for your entire project, and several others for every member of your team. The platforms provide an interaction medium between your brand and customers. 

v) Launching Your ICO

Launching an ICO is a pretty straightforward process, especially if you observed the aforementioned procedures. But there are a few twists and turns to navigate before you can put your ICO out to the world.

The first hurdle to overcome is deciding the location in which to launch your ICO. Different countries have varying policies regarding fundraising, particularly in the crypto space. For instance, offering your ICO tokens to U.S residents may not be a good idea since the tokens will be subject to the Securities and Exchange Commission (SEC) regulations. This will come with its share of legal problems given that the U.S government hasn’t exactly warmed up to blockchain. Instead, aim to launch your campaign in ICO-friendly countries such as the British Virgin Islands, Singapore, Hong Kong, Switzerland, and the Cayman Islands. 

Lastly, determine the token pricing strategy to use based on your goals. Generally, there are four token pricing strategies: 

  • Undetermined price: This method is divided into several price stages, whereby the token price in the initial stage is fixed. As more investors come in, the price increases as the stages advance. 
  • Fixed price per token: In this method, the tokens are offered at a set price that doesn’t change with the number of investors. This is to say that investors can buy as many tokens as they wish without affecting the price. To avoid market overvaluation, the tokens are frozen for a pre-set period, after which they are made available for trading on the market. 
  • Random price token: This strategy doesn’t have a fixed price for the token. Instead, tokens are issued to investors as per their amount of funds. 
  • Price decreases over time: As the name suggests, the tokens are offered at a higher price than decreases as the sale period passes.

Conclusion 

ICOs are a revolutionary way through which the average investor can access investment opportunities that would be otherwise reserved for venture capitalists and institutional investors. This provides blockchain entrepreneurs with a platform to actualize their business goals and contribute to the advancement of the entire blockchain space. However, setting up an ICO project and finally raising funds isn’t as easy as it was a couple of years ago. As such, the above-mentioned guidelines will help you adjust to the changes in the ICO market, bringing you closer to the objectives of your ICO project. 

Categories
Crypto Daily Topic

Blockchain and Identity: Here’s all there is to know

The ability to have control of our own identities has never been more pertinent than today. This is the internet age – and that has massive implications for our privacy, security, and autonomy over our own identities. Two issues emerge: that of populations not having an identity, as well as the implications of entrusting our identities with big and powerful organizations.

The ability to have control of our own identities has never been more pertinent than today. This is the internet age – and that has massive implications for our privacy, security, and autonomy over our own identities. Two issues emerge: that of populations not having an identity, as well as the implications of entrusting our identities with big and powerful organizations.

The ability to have control of our own identities has never been more pertinent than today. This is the internet age – and that has massive implications for our privacy, security, and autonomy over our own identities. Two issues emerge: that of populations not having an identity, as well as the implications of entrusting our identities with big and powerful organizations.

Recent research shows that a staggering 89% of consumers do believe that organizations are not doing enough to protect their data, while more than half of CEOs admit that consumers are not mistaken to think this. 

So how can we get past this stalemate? 

Blockchain technology has demonstrated its ability to change how things are done across industries. Can it also help with the thorny issue of identity management? The answer is yes, and an increasing number of platforms utilizing blockchain are emerging that aim to empower users with more control over their own identity. Also, a new concept – that of self-sovereignty- has emerged thanks to blockchain technology. 

We are going to look at what exactly identity is, explore the concept of self-sovereignty, and look at how blockchain can help us manage our identities better. We’ll also take a peek at some of the exciting organizations that are using blockchain to give users more autonomy and control over their identities.

What is Identity? 

Personal identity is a human right, according to article 8 of the UN’s Convention on the rights of the child. A person’s identity comprises: 

  • Their first and last name
  • Date of birth
  • Nationality  
  • An identifier, such as passport number, ID number, driving license, and so on. 

We cannot overemphasize the importance of having an identity. Without having a form of identification, one cannot access government services, own property, have a bank account, or be employed full-time. Without an identity, it’s so hard to participate in society because you cannot prove that you are who you say you are. 

Despite identity being so important, the current identity space is far from ideal. Data – such as passport number, social security numbers, and driving licenses is all stored in centralized servers by centralized organizations. This means three things: 

  • People can only get identities from centralized organizations
  • These centralized organizations can tamper with your identity data 
  • Identities are subject to theft

Let’s get a look at each of these:

1. Centralized Entities Giving Out Identities

Currently, centralized organizations have the power and the right to validate and issue identities to people. This system has left so many people in the world without an identity. According to the United Nations, 1.1 billion people in the world have no way to prove their identity. Due to this, these people have been left without access to basic financial services such as opening a bank account. This means that these people are excluded from the global financial system. As such, it is difficult for these people to escape the cycle of poverty. 

2. Data Mishandling

To participate in the current social media landscape, you need to create an identity. For instance, you need to create a Facebook account to use Facebook, just like you need to create an Instagram account to use Instagram. 

This gives these centralized organizations power over our identities. Think of it – we’re giving these organizations our identities, which they’re using to create identity silos.

We have seen what happens when we trust organizations with our data. The 2016 Facebook and Cambridge Analytica scandal is an excellent example of how powerful organizations can abuse user data. 

What was the Facebook Cambridge Analytica scandal?

The scandal involved Cambridge Analytica getting their hands on Facebook user data. The data that was leaked included public profiles, birthdays, city of residence, and page likes. For some users, things like a timeline, a news feed, and private messages were accessed. Around 87 million people were victims of this data breach – 70.6 million users being from the US.

The kind of data collected was detailed enough to enable Cambridge Analytica to create psychographic profiles. Psychographic profiles are a psychological mapping of people based on demographics. Using these psychographic profiles, Cambridge Analytica was able to curate political messages in favor of certain political leanings. These messages were then targeted at people, helping to sway populations for certain political candidates in the US, the UK, and Mexico. 

3. Identity theft

Identity theft is another issue with the current identity setup. For example, someone can steal your identity to use it to take out a loan using your credit card. A prominent example of this is the Bari Nessel case in San Diego, California. Bari Nessel would employ people and, in the process, obtain their personal information. She used the information of one employee to take out huge amounts of loans using their credit card. 

Another case, with more dire consequences this time, is that of Equifax, a US-based credit reporting company that was hacked in 2017. Through the hack, the data of half the US population was stolen, including names, birthdays, residential addresses, social security numbers, etc. 

What Did This Attack Reveal?

First of all, we don’t really have control over our data. We trust third-party companies to keep it secure for us, but seeing as they are centralized platforms – they have a single point of failure, meaning one attack is enough to breach the privacy of millions. 

Also, it’s hard to know if the company knew they were under attack but chose not to inform users nevertheless. So, there is also the issue of lack of transparency. 

What Lessons Can We Learn From This?

  • Centralized entities can issue identities to only who they want, and when they want
  • We trust third parties to secure our personal information
  • These third parties are not fail-safe 
  • Some third parties can be downright shady with the way they handle our data

Incorporating the blockchain into identity management would solve all these problems. Let’s take a quick look at what blockchain technology is. 

What Is Blockchain Technology?

Blockchain is a technology that was first brought to life by Satoshi Nakamoto in 2008. A blockchain consists of a distributed ledger with timestamped transactions. Distributed means that the ledger is controlled by thousands of computers all over the world. Each ledger has blocks of data that are linked to each other using cryptography. Blockchain has three very special features: 

  • Decentralized – the data is not controlled or owned by any one single authority
  • Immutable – once data is recorded on the blockchain it cannot be deleted or interfered with in any way
  • Transparent – anyone can see all data that has been entered on the blockchain

So how will blockchain solve the current identity management issues?

  • It will be impossible to replicate data – Blockchain can make it impossible for more than one person to claim the same identity. The same way it prevents double-spending of coins is the same way it will prevent the replication of identity details.
  • It will be hard to tamper with personal information – Blockchain can make it impossible to steal or hack personal information.
  • It will be hard to tamper with data information management processes – Blockchain can make the identity management processes trustless. This means removing human emotions, intentions, or negligence from the equation.

Self-Sovereign Identity 

Self-sovereign identity is the concept or idea that people should own and control their own identity. Blockchain can enable and facilitate self-sovereign identity. 

Blockchain would promote self -sovereign identity by facilitating the following characteristics: 

  • Minimalistic – availing only the amount of data needed for a particular task
  • Resilient – identity will not be censored or deleted 
  • Persistent – it will be impossible to take somebody’s identity from them 
  • Portable – it will be possible to access your identifying information from anywhere in the world 
  • Consent – your identifying information will be used only when you agree to it

More Power to Users 

Blockchain can also give people more choices on how to manage their personal information. 

Through the blockchain, individuals can:

i) Manage multiple identities

This means that an individual can have different identities with different personas for different types of contexts – for example, having different identities for the workplace, for friends, for family, and so on. Blockchain can facilitate all these different identities and give a key to each of these identities. This means the user has the discretion to use any persona they like – in different types of situations.

ii) Authenticate their identities anonymously

Blockchain can help users deploy anonymous authentication to ensure maximum security. This means that users can anonymously use uniquely identifying attributes to identify themselves in a given situation.

Projects Working On Blockchain-based Digital Identity

Several exciting projects are currently working to solve the current identity management problem using blockchain-based solutions. 

  • Sovrin: This is a non-profit organization that aims to enable individuals to achieve self- sovereign digital identity. Sovrin provides users with a secure and private network for individuals to manage and share their verifiable identity credentials. 
  • Civic: Civic provides a blockchain-based protocol on which users can manage their digital identities better. On the platform, users can create their virtual identities and keep them together with other personal information.
  • uPort: Created by the blockchain solutions company ConsenSys, uPort is a self-sovereign identity protocol that runs on Ethereum. The platform consists of smart contracts developer tools and a mobile app. Users can create a personal identity through smart contracts and secure it with the key in the mobile app. Even if your device is lost, you can still recover your identity credentials.

Closing Thoughts

The current digital management system is, to put it mildly, broken. Blockchain can fix this. Blockchain-based identification would afford us more security, more transparency, and more control over our identities. Blockchain can also bring more equality in the world by helping millions of people without an identity to get one. This way, they can play a bigger part in their societies and access their rightful services just like everyone else. 

Already, several blockchain-based projects have taken the mantle in this regard. Let’s wait and see how they will shape the space.

Categories
Crypto Videos

Master Trading Cryptocurrencies Using The RSI Indicator

https://youtu.be/Y9uwdySPm50

https://youtu.be/Y9uwdySPm50

Trading cryptocurrencies using RSI indicator

RSI, which is an acronym for the Relative Strength Index, is one of the most popular technical indicators used in the analysis of any financial markets. It is often used for cryptocurrency trading as well.

It was created in 1978 in John Welles Wilder’s book that carries the name “New concepts in technical trading systems.” Wilder was a former mechanical engineer who abandoned his job in order to focus on the financial markets.
He wanted to create indicators based on mathematical analysis by finding a simple yet effective tool to visually represent market movements. The RSI indicator is what came from his research, and this indicator is one of the most widely used indicators to date.

RSI indicator – explained

This indicator is based on quite a simple concept. The stronger the relative price, the greater the market’s upward closures compared to the market’s downward closures. The opposite is also true.

RSI is considered an oscillator that is used for measuring the speed as well as the direction of price movements. That’s why it is also a “momentum” indicator. Contrary to some other indicators, RSI manages to overcome the momentum-related problems that can occur when abrupt movements of the market cause a sudden reversal of the trend.
RSI uses a band of oscillation that ranges from 0 to 100. It also allows for visual comparison with predetermined constant levels. It is based on a simple mathematical formula that requires only one input parameter, which is the number of periods that we are taking into consideration.
In his book, Wilder recommended that 14 should be used to get the best results.
As with all the other oscillators, if a short time-period is used, the sensitivity of the oscillator might be too great, and traders may get false signals.

Using RSI in crypto trading

Trading cryptocurrencies using RSI is not much different than trading any other asset. When the price moves up quickly, the RSI indicator will enter the “overbought” area. The opposite is also true.
It is important to say that the longer the time frame used, the more accurate the data is. Bitcoin has almost never had a false signal on the higher time frames.
Wilder designed this indicator with the aim to spot reversals. RSI will show alert zones set at 70 for overbought and by the value 30 for oversold. However, it is not uncommon to see zones moved to values 80 and 20.
A cryptocurrency trader, this indicator should NOT be used by itself, but rather alongside using the knowledge of candlestick and pattern analysis as well as some other indicators.

Categories
Crypto Market Analysis

Daily Crypto Review, Mar 24 – Bitcoin recording double-digit gains as it reaches $6,500

The cryptocurrency market managed to pull its weight to the upside as Bitcoin surged and recorded double-digit gains in the past 24 hours. Bitcoin is currently trading for $6,488, which represents an increase of 10.73% on the day. Meanwhile, Ethereum gained 8.91% on the day, while XRP gained 6.27%.

The cryptocurrency market managed to pull its weight to the upside as Bitcoin surged and recorded double-digit gains in the past 24 hours. Bitcoin is currently trading for $6,488, which represents an increase of 10.73% on the day. Meanwhile, Ethereum gained 8.91% on the day, while XRP gained 6.27%.

The cryptocurrency market managed to pull its weight to the upside as Bitcoin surged and recorded double-digit gains in the past 24 hours. Bitcoin is currently trading for $6,488, which represents an increase of 10.73% on the day. Meanwhile, Ethereum gained 8.91% on the day, while XRP gained 6.27%.

Bytecoin took the position of today’s most prominent daily gainer, with gains of 17.64%. On the other side, Steem lost 1.82% on the day, making it the most prominent daily loser. At the moment, it seems that the market moves as a whole (or at least in the same direction) and that not many cryptos differ from this rule.

Bitcoin’s dominance has increased over the past 24 hours. Its value is now 66.39%, which represents a 0.41% difference to the upside when compared to yesterday’s value.

The cryptocurrency market capitalization increased over the past 24 hours, with a current value of $180.28 billion. This value represents an increase of $3.5 billion when compared to the value it had yesterday.

What happened in the past 24 hours

Democrats in the US House of Representatives are looking to implement the US-made digital dollar in order to streamline payments to its citizens outside of the traditional financial system. This idea has come up as many people were in need of some form of a stimulus package as a response to the economic crisis caused by the COVID-19 outbreak.

Honorable mention

MakerDAO

The MakerDAO (MKR) has recently announced an auction to recover the DAI collateral debt. This auction is almost complete, even with the procedure suffering some technical setbacks. The MakerDAO community largely remains optimistic as they think that Maker is handling the situation quite well.

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Technical analysis

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Bitcoin

Bitcoin managed to pull itself out of the falling price by creating lower lows pattern. The largest cryptocurrency soared above $6,000 once it broke the $5,960 resistance. The price was, however, stopped by the $6,640 resistance. Bitcoin is now consolidating right below this key level, trading at around $6,500 at the time of writing.


Bitcoin’s volume increased slightly during the price surge, while its RSI reached above 60 values on the 4-hour timeframe.

Key levels to the upside                    Key levels to the downside

1: $6,640                                           1: $5,960

2: $6,850                                           2: $5,000

3: $7,085                                            3: $4,300

Ethereum

Ethereum followed Bitcoin price-wise and increased in value as well, though not quite as much. The second-largest cryptocurrency has broken its $128 resistance quite quickly and moved towards future resistances. However, a new key resistance level has formed at the $139 level, which stopped the price from increasing twice in the past 24 hours.


Ethereum’s volume increased only during the duration of the candle, which brought its price over $128, while the rest of the day went by with regular volume. Its RSI level increased and is now at a value of 55.5.

Key levels to the upside                    Key levels to the downside

1: $168                                                1: $128

2: $178.6                                            2: $122.5 

3: $185                                                3: $100

Ripple

XRP increased in price as well over the past 24 hours. However, a pattern that is present for a couple of runs (to the upside as well as the downside) is that XRP did not break any support or resistance levels. XRP couldn’t get past the $165 level and is now trading at the $158.5 level, performing consolidation.


XRP’s volume increased only slightly when compared to the past couple of days. Its RSI level increased to the value of 55.

Key levels to the upside                    Key levels to the downside

1: $0.165                                            1: $0.147

2: $0.19                                              2: $0.1

3: $0.2                                              

Categories
Crypto Videos

Using Bollinger Bands To Capture Consistent Profits Part 2

https://youtu.be/q3WCwpORGnc

https://youtu.be/q3WCwpORGnc

Trading cryptocurrencies using Bollinger Bands (part 2/2)

 


The rules of Bollinger Bands

John Bollinger is still quite active in the financial space, while his bands have 30 years of market testing. The first thing that Bollinger makes clear is that both highs and lows are relative. While the upper band signifies highs as they relate to the standard deviation, the lower band does the opposite. The terms “high” and “low” have to be used in a relative sense. This relativity can be derived from a variety of different indicators.
Bollinger stressed that each indicator has to be viewed in isolation before trying to use it in conjunction with something. Momentum, volume, sentiment, as well as many more things can be derived from Bollinger bands; however, they might not necessarily relate to one another.
He once said: “For example, a momentum indicator might complement a volume indicator successfully, but two momentum indicators aren’t better than one.”

Bollinger bands have proven to be a successful indicator if employed in a wide range of financial settings since they are simple by nature. They are made for trading equities, indices, exchanges, commodities, as well as futures. Cryptocurrencies were not there when this indicator was made, but they fit the space between the gray areas of these financial tools.
Bollinger Bands and are also flexible with regard to the time period, as long as the period that is examined contains enough details to present a meaningful view of the market.

How to use Bollinger Bands

Cryptocurrency traders, as well as investors, can use Bollinger Bands in several different ways.
The first we have to look at is the volatility of a given coin we are trading. Bollinger bands compress when standard deviations are low, which is signaling us a period of low volatility. They tend to do the opposite when volatility increases.

While this can have several meanings depending on the coin we are trading. We can look at the volatility and try to pinpoint the possibility of a breakout.
Bollinger Bands capture somewhere around 90% of the price action in a given cryptocurrency. When the price movement dives above or below a set Bollinger Band, we have to pay attention. When the price moves above the band, the coin is likely overbought, and it is possible that it will correct shortly. If, on the other hand, a price moves below the lower Bollinger Band, the coin is possibly oversold.

Movements at the Bollinger Band boundaries (upper or lower) can also be used to determine short-term price direction. If the upper band is cracked, but the price corrects to a level just at or below the upper band afterward, it’s a sign that the prices are generally moving up. The opposite is also true.

Conclusion

Bollinger bands present an easy way to visualize the cryptocurrency market price movement. In simplest terms, it shows when it is a good idea to buy or sell an asset.
However, Bollinger Bands are simply one of the many tools in a trader’s toolkit, which means that the rules are not written in stone. To confirm their decisions based on Bollinger Bands, many traders are relying on volume indicators or oscillators such as RSI or MACD before entering a position. Independently confirming trends by using other tools rather than only using the Bollinger Band system is more reliable than using just Bollinger Bands to come to a certain conclusion

Categories
Cryptocurrencies

What are CryptoKitties?

-When Satoshi Nakamoto created the blockchain, he had far more far-reaching goals in mind: a secure technology that would power the world’s first cryptocurrency. And indeed, cryptocurrencies are the biggest adoption of blockchain today.

-When Satoshi Nakamoto created the blockchain, he had far more far-reaching goals in mind: a secure technology that would power the world’s first cryptocurrency. And indeed, cryptocurrencies are the biggest adoption of blockchain today.

-When Satoshi Nakamoto created the blockchain, he had far more far-reaching goals in mind: a secure technology that would power the world’s first cryptocurrency. And indeed, cryptocurrencies are the biggest adoption of blockchain today.

But then came Ethereum, the blockchain that showed us that blockchain was capable of more. On the platform, users can create smart contracts and build decentralized applications (DApps) – which are applications that cannot be censored or controlled by anyone.

Then one team came and utilized DApps in a way that was completely unprecedented – by creating a game that allows people to buy, breed, and trade cats. The game has taken the world, not just the blockchain world, by storm. Enthusiastic players have poured millions of dollars into the game. Several articles have been published about “kitty phenomena.” Even Ethereum’s Vitalik Buterin himself has given it a shout out – and that is saying something.

So what’s CryptoKitties? This article sets to exploring the intriguing blockchain-powered “kitty verse.”

The Team behind CryptoKitties

Crypto Kitties is the brainchild of a company called Axiom Zen. This company creates many sorts of projects using novel technologies like virtual reality and blockchain.  

Based in both San Francisco and Vancouver, the “award-winning venture studio” CryptoKitties wants you to “Collect and trade CryptoKitties in one of the world’s first blockchain games. Breed your rarest cats to create the purrfect furry friend. The future is meow!”

What is a Genetic Algorithm? 

A genetic algorithm is a computer science optimization technique that’s inspired by the natural selection process. It works by generating ‘kids’ from a pool of parent solutions that uses bio-inspired operators such as selection, crossover, and mutation. The genetic algorithm represents the genes in the form of numbers. The numbers represent the proteins and other elements that we humans have in our bodies.   

  • Selection: Selection means retaining the best parents with the best genes from one generation to the other. 
  • Crossover: This means taking the two common variables of the two parents and retaining them in the child, just like how real-life people retain features from both parents. 
  • Mutation: This involves taking a parent and randomly mutating some of their ‘genes’ to create a child. 

Why are we talking about the Genetic Algorithm? Because it’s the technology that CryptoKitties uses to create new kitties. By using a crossover mechanism, a child genome is “sired” from the gene pool of two-parent kitties. This child genome is what grows up to be a new kitty. 

The CryptoKitty Smart Contract 

The entire cryptokitty smart contract is broken down into smaller and more manageable contracts. The ‘inheritance tree’ of the contracts is like this: 

  • contract KittyAccessControl 
  • contract KittyBase is KittyAccessControl 
  • contract KityyOwnership is KittyBase  
  • contract KittyBreeding is KityyOwnership  
  • contract KittyAuction is KittyBreeding
  • contract KittyMinting is KittyAuction
  • contract KittyCore is KittyMinting

The KittyCore here is the contract that tracks ownership and transfer of kitties. It’s The one that greenlights the siring of new kitties 

Where Do New Kitties Come From? 

The first cat was adopted on December 2, 2017. Since then, a new cat was born every 15 minutes until November 2018 when the first generation kitties no longer existed. 

The white pa-purr (what the developers really, truly call the white paper) states that only 50, 000 generation-0 kitties will ever exist. 

Of course, CryptoKitties can breed with each other to birth newborn kitties. Any kitty can be a ‘sire’ or a ‘dame’ for a breeding pair. After breeding takes place, the owner of the dame will be given the baby kitty – who will have ‘cattributes’ of their parents, as well as random cattributes. In rare cases, a ‘fancy cat’ with custom cattributes will be born. 

There’s no limit to how many CryptoKitties can exist. On the CryptoKitties market, you can also pay to breed your kitty with another person’s kitty – if you like that kitty’s cattributes. 

How to Buy and Store CryptoKitties?

Before you get started with anything, there are three things that you need:

Before you can begin to buy CryptoKitties, you need to have the following: 

  • Chrome or Firefox Browser 
  • The Metamask Wallet 
  • Ether in the Metamask Wallet. You can exchange fiat currency for Ether from any of several exchanges, including Coinbase, Kraken, Bitfinex, GDAX, Gemini, and so on. 

Once you have those, it’s pretty straightforward. Go to the CryptoKitties website and choose the kitty of your preference. Don’t you like any? No problem. Simply search for a ‘Gen 0’ kitty under the ‘Gen 0’ tab. 

To sire new kitties, go to the ‘Siring’ tab. On there, you’ll see all the kitties that have been put up for siring. Go ahead and choose the kitty that you’d like to have mated with yours. 

Now, how do you store your kitties? You can keep them in the MetasMask wallet if you’d like to be viewing and also trading them. But if you’d like to HODL your kitties, you can store them in a cold storage wallet that supports ERC-721 tokens e.g., Ledger Nano S.

Gas Consumption of CryptoKitties

CryptoKitties are one of the reasons scalability of the Ethereum blockchain has come into sharp focus. This is because the game became so popular that it clogged up the Ethereum network such that transactions would take days before confirmation. Due to this, the creators of the game had to increase ‘birthing’ fees.

Axiom, the company behind the game, said this in a Medium article:

“The excitement and adoption we’ve seen this week has been overwhelming, and we couldn’t be happier! However, the Ethereum network is completely full. The only way to keep CryptoKitties from lagging is to increase the gas prices so that all transactions can complete quickly. We know that increased gas prices will mean that some of you will need to slow down your breeding regimen, and we are incredibly disappointed by that. But who knows? Maybe this slowdown will just mean that you’ll love the Kitties you already have that much more.”

From this episode, it was clearer than ever that the Ethereum blockchain and, indeed, the current entire blockchain setup is not really capable of handling mainstream demands. That means that they have to work on the scalability issue before they can play the role of a decentralized, peer-to-peer future.

Built on Ethereum 

As of early 2020, CryptoKitties runs on the Ethereum network. Smart contracts oversee every aspect of the buying and selling of kitties. As such, no one can change, remove, or change a kitty once it has been birthed. The person that holds a CryptoKitty can hold it, let it mate with another kitty, or trade it if they feel like. 

The game also uses Ether as the medium for transactions. It’s still not possible to buy CryptoKitties with fiat currency as of now. However, the developing team hopes to make this option available in the future.

Final Musings (Meowsings!)

Whether you’re a cat lover or not, CryptoKitties allows you to immerse yourself in a unique gaming experience of Kitty verse and make lucrative profits while at it. The game is an illustration of what blockchain is capable of. 

Who would have thought that Satoshi’s technology would one day be used for purely recreational purposes? CryptoKitties’ wild popularity just shows that blockchain games can be a hit, as long as they provide some form of value to the masses. More than industry applications, this could be the very pathway to taking blockchain mainstream.

Categories
Crypto Daily Topic

Atomic Swaps: The Definitive guide

Cryptocurrencies were invented so that we could have deregulated, decentralized and peer-to-peer finance. What perhaps was not factored in was how we could trade one currency for another in the same kind of environment. Centralized exchanges – which are platforms through which individuals can trade one crypto to another, fill this gap. But these exchanges are not the most ideal crypto exchange platforms – because of issues that are inherent to them, and also because they do not live up to the tenets of cryptocurrency. 

Cryptocurrencies were invented so that we could have deregulated, decentralized and peer-to-peer finance. What perhaps was not factored in was how we could trade one currency for another in the same kind of environment. Centralized exchanges – which are platforms through which individuals can trade one crypto to another, fill this gap. But these exchanges are not the most ideal crypto exchange platforms – because of issues that are inherent to them, and also because they do not live up to the tenets of cryptocurrency. 

Cryptocurrencies were invented so that we could have deregulated, decentralized and peer-to-peer finance. What perhaps was not factored in was how we could trade one currency for another in the same kind of environment. Centralized exchanges – which are platforms through which individuals can trade one crypto to another, fill this gap. But these exchanges are not the most ideal crypto exchange platforms – because of issues that are inherent to them, and also because they do not live up to the tenets of cryptocurrency. 

Enter atomic swaps – a technology that could be the solution to this problem. Atomic swaps is a technique that lets you trade crypto coins directly with other crypto holders. Also known as atomic cross-chain trading, this technology relies on smart contracts to automatically execute trades between two parties when both parties meet their end of the bargain.

Atomic swaps have the potential to revolutionize how we transfer crypto value.

History of Atomic Swaps

The concept of a trustless, decentralized, and peer-to-peer method of exchanging crypto was being floated since 2012 when cryptos were beginning to pick up and become a force in the trading arena. In July of that year, Sergio Demian Lerner created what was the first draft of such a protocol. The idea was a good one, but it was never really worked on. 

There wasn’t a breakthrough until May 2013 when Tler Nolan created the first full account of how such a protocol can work – through atomic swaps. Though many other developers have come up with their own iterations of trustless and decentralized exchange protocols, Nolan is credited as the inventor of the technology.

The Problem with Centralized Crypto Exchanges

  • Susceptibility to Hacks

 Centralized exchanges always have the possibility of getting hacked hanging over them. This is because cryptocurrency is a very appealing asset to fraudsters. (Isn’t it to all of us?) And these fraudsters are always devising new ways to get around security settings.

  • Subject to Bad Management

Centralized exchanges are managed by people, and people are fallible. Simple mistakes or seemingly harmless loopholes could undo a centralized exchange – and with it investor funds – very fast.

  • Inability to handle high demand

Centralized exchanges can simply not handle high volumes of demand, especially a sudden increase.

  • Subject to Censorship and Regulation

Centralized exchanges are much like other businesses. Since they operate in jurisdictions, they are subject to the arbitrary whims of such jurisdictions. Cryptocurrency exists to avoid this very issue.

How Atomic Swaps Work

Atomic swaps work by letting the two transacting parties make a shared “secret.” The parties will swap the agreed cryptos if and only if their secrets are an exact match. This way, if a third party happens to barge in on the transaction, they have no way of meddling with the transaction since they don’t know the secret.

This whole process is executed by something known as Hashed Timelock Contracts (HTLCs).

HTLCs are a type of payment channels that ensure both parties to the transaction hold up their end of the bargain for the swap to be successful. A hashlock uses a cryptographic algorithm that allows either party to access the funds when and only when they have signed up their side of the transaction.

The timelock is a sort of insurance policy that will see to it that both parties get back their funds in the event the transaction has not gone through during a specified time frame. 

The HTLC is made to create an environment where both parties rely on each other for the exchange to be successful. If, for whatever reason, the transaction is unsuccessful (e.g., network failure or one party not meeting their end of the deal), the timelock returns the funds to the rightful owners.

On-chain and Off-Chain Atomic Swaps

Atomic swaps can take place either on-chain or off-chain.

An on-chain atomic swap takes place on either currency’s blockchain. For an on-chain swap to be successful, both currencies must share the same hashing algorithm, and they both must also support HTLC. The first-ever on-chain swap was executed by Litecoin and Decred in September of 2017.

An off-chain swap takes place outside of the blockchain – in what is called a “layer 2.” Bitcoin and Litecoin were the first to conduct an off-chain swap in November of 2017. 

 Advantages of Atomic Swaps

  • Atomic swaps will help users of different cryptocurrency networks interact with each other. This contributes to the interoperability of these networks.
  • Atomic swaps facilitate “currency agnosticism” of the crypto ecosystem. This means the crypto market will be open to everyone rather than having a segmented market where people are holding to just one of a few coins. In other words, no matter which coin you use, you can transfer it to anyone, and anyone can do the same for you.
  • Atomic swaps facilitate trustless, fee-less and peer-to-peer, uncensorable currency exchanges
  • They remove the need for third-party intermediaries hence making the swap as direct as possible.
  • Atomic swaps give users complete control over their money, instead of entrusting it to centralized exchanges that are prone to governance issues and corruption. Moreover, the issue of banned withdrawals, account deactivation, or wallet maintenance problems is gone. 
  • Direct wallet-wallet crypto trading is the epitome of decentralization finance. Centralized exchanges are prone to state regulation – which renders them centralized platforms.
  • Atomic swaps are faster, period. The whole Know Your Customer procedures and other confirmation steps required by centralized exchanges slow down the trading process.
  • In an atomic swap, the need for an intermediary token is removed. E.g., if you want to buy Decred and you have LTC, you may need to trade that LTC for BTC – which you’ll then trade for Decred. Atomic swaps remove this long process by allowing you to trade at a go.
  • Trading at an exchange means you’ll be charged a lot of fees. And these exchanges set these fees and can increase them at will.

Limitations of Atomic Swaps

Atomic swaps look like the ideal way to swap cryptocurrencies among users, but unfortunately, we’re yet to reach the point where its adoption is a straightforward process. This is why:

i) Adoption

The current iteration of the technology needs the involved cryptocurrencies to meet three conditions:

Both must share a hash algorithm

Both cryptos must be able to initiate timelock contracts

Both cryptos must have certain programming functionalities 

These prerequisite characteristics lock out so many cryptocurrencies, as well as companies and users, that can give the technology a try as of now.

ii) Speed

Atomic swaps have the ability to get swaps done in an instant – but right now, it still needs a ton of work before it can get to the point of handling large volumes of data.

iii) Lack of Compatibility

Right now, a lot of existing wallets do not support atomic swaps. This impedes the wide-scale adoption of the technology.

Final Thoughts

Atomic swaps will help solve the problems of interoperability and lack of scalability in the current crypto space. The technology also has the potential to expand the growth of the crypto industry, as well as open up new avenues for truly decentralized and peer-to-peer transactions – which is the way it’s supposed to be. We can only hope that the technology will be enhanced and refined to be better positioned for this worthy task.

Categories
Crypto Market Analysis

Daily Crypto Review, Mar 23 – Bitcoin uncertainty amid worldwide COVID-19 economy shutdown

The cryptocurrency market spent the weekend falling down, possibly indicating a further drop towards the lows of the end of 2018/start of 2019. Bitcoin is currently trading for $5,922, which represents a decrease of 6.28% on the day. Meanwhile, Ethereum lost 7.21% on the day, while XRP lost 5.67%.

The cryptocurrency market spent the weekend falling down, possibly indicating a further drop towards the lows of the end of 2018/start of 2019. Bitcoin is currently trading for $5,922, which represents a decrease of 6.28% on the day. Meanwhile, Ethereum lost 7.21% on the day, while XRP lost 5.67%.

The cryptocurrency market spent the weekend falling down, possibly indicating a further drop towards the lows of the end of 2018/start of 2019. Bitcoin is currently trading for $5,922, which represents a decrease of 6.28% on the day. Meanwhile, Ethereum lost 7.21% on the day, while XRP lost 5.67%.

UNUS SED LEO took the position of today’s most prominent daily gainer, with gains of 1.62%. On the other side, Hedera Hashgraph lost 16.12% on the day, making it the most prominent daily loser.

Bitcoin’s dominance has increased over the weekend. Its value is now 65.98%, which represents a 0.55% difference to the upside when compared to Friday’s value.

The cryptocurrency market capitalization decreased over the weekend, with a current value of $166.74 billion. This value represents a decrease of $3.03 billion when compared to the value it had on Friday.

What happened in the past 24 hours

Catherine Coley, the CEO of the US branch of Binance, revealed that the coronavirus quarantine in Asia led to increased trade volumes. She announced this statistic during a Bloomberg interview, where she also talked about the increasing correlation between Bitcoin and the S&P 500.

On the subject of the increased correlation between Bitcoin and the S&P 500, Coley said that both the traditional markets as well as the cryptocurrency market are playing out a well-known long-term cycle.

Honorable mention

Tezos

The Tezos Foundation announced that they would settle a $25 million consolidated class-action lawsuit. This will settle more than two years of fighting in court. The foundation chose to settle due to the time and financial expenses that would keep piling up.

The settlement proceedings are currently pending court approval.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

While most analysts claim that Bitcoin has not gone under the $5,900 level and therefore stabilized above it, they fail to notice that it might be more plausible that Bitcoin is facing resistance at the $5,960 level. If this is the case, then Bitcoin fell under one of its key support levels over the weekend. However, this does not signal that it will keep going further down. That being said, the situation in the world economy alongisde the coronavirus outbreak does not bring good news to any market, cryptocurrency included.


Bitcoin’s volume decreased over the weekend, while its RSI level is currently near the middle of the value range, sitting at the value of 47.

Key levels to the upside                    Key levels to the downside

1: $5,960                                           1: $5,000

2: $6,640                                           2: $4,300

3: $6,850                                            

Ethereum

Ethereum, as a cryptocurrency that is highly correlated to Bitcoin and its movement, did not differ much from the largest cryptocurrency by market cap. Ether’s price fell under the $128 support level but found its stability near the $122.5 support. Ethereum is now trading in the middle of the range, bound by these two key levels.


Ethereum’s volume decreased over the weekend, while its RSI level is currently at the value of 44.

Key levels to the upside                    Key levels to the downside

1: $128                                                1: $122.5

2: $168                                              2: $100 

3: $178.6                                                

Ripple

XRP fell below its $0.165 support level over the weekend after just briefly going over it. The third-largest cryptocurrency is, again, trading between the levels of $165 to the upside and $0.1 to the downside. The only change in terms of key levels seems to be that XRP now responded to a pre-2017 support level of $0.147.


XRP’s volume is on extremely low levels, while its RSI level is currently at the value of just above 44.

Key levels to the upside                    Key levels to the downside

1: $0.165                                            1: $0.147

2: $0.19                                              2: $0.1

3: $0.2                                              

Categories
Crypto Videos

Using Bollinger Bands To Capture Consistent Profits Part 1

https://youtu.be/S4_efg95iVA

https://youtu.be/S4_efg95iVA

 

Intro to using Bollinger Bands in cryptocurrencies (part 1/2)

The wild movements of a typical cryptocurrency price chart can definitely look bewildering at first glance. While it is easy to see the general direction of a trend for any given crypto, the confusion really sets in if you zoom in to a smaller time frame and take a look at all the peaks and troughs that actually make up that trend line.

Intro to Bollinger Bands


Simple moving averages are used to describe the average price of an asset over a period of time while using exponential moving averages will give more credence as well as arithmetic weight to newer prices. Both of them are intended to filter out the hourly and daily bumps that make up a price chart. They are also making trends as well as patterns more immediately obvious.

The system of using moving averages was further refined by a financial analyst as well as author John Bollinger in the 1980s. He introduced Bollinger Bands to the world. Bollinger bands are nothing more than a system of computing bands (high and low) above an asset’s moving average by using standard deviation.

Bollinger bands are also being used to examine exponential moving averages, unlike the Keltner channel’s examination of simple moving averages. The way Bollinger Bands are used provides the measurement tool with much more sensitivity to certain changes in the market.
Bollinger Bands and Crypto

When speaking about the notoriously volatile cryptocurrency market, Bollinger Bands are used quite a lot. They are mostly used in predicting possible breakouts as well as identifying key times to enter or exit the market. This use-case is particularly useful for day traders (rather than long-term investors), who often have to make quick and tough calls with incomplete information so they could retain their profits. If they make only one significant step in the wrong direction on just one cryptocurrency, they can eliminate days or even weeks of carefully harvested small gains.

More on how to use Bollinger Bands to improve your cryptocurrency technical analysis in part 2 of our guide.

Categories
Blockchain and DLT

Ethereum Virtual Machine: Everything you’ll ever need to know

Many people acquainting themselves with the Ethereum ecosystem tend to overlook the Ethereum Virtual Machine, yet it provides really interesting tidbits into how the Ethereum ecosystem works.

Many people acquainting themselves with the Ethereum ecosystem tend to overlook the Ethereum Virtual Machine, yet it provides really interesting tidbits into how the Ethereum ecosystem works.

Many people acquainting themselves with the Ethereum ecosystem tend to overlook the Ethereum Virtual Machine, yet it provides really interesting tidbits into how the Ethereum ecosystem works.

The Ethereum Virtual Machine (EVM) is the core innovation of Ethereum. It is a Turing complete software that enables anyone to run any program, provided they have enough memory space. The EVM helps developers build blockchain applications faster, more easily, and more efficiently. It provides the platform for creating countless blockchain applications in one single place, instead of having to create a new blockchain for every new application.

The EVM also prevents denial of service attacks – which are attacks targeted at making a network unavailable to users. It also ensures programs running on the blockchain do not have access to each other’s state, thus eliminating any potential interference.

Turing Complete

EVM is a quasi-Turing complete software. Turing complete is named after Alan Turing, the innovator of the Turing machine. A Turing complete machine can solve any problem fed into it, as long as there are enough time and memory space.

EVM is quasi-Turing complete because its computations are bound by gas – which in effect limits the number of calculations that it can solve.

Gas and EVM Bytecode

On Ethereum, transactions are powered by ‘gas,’ which in essence is the fee that users pay. The concept of gas can be seen in two ways: gas and gas price. 

Gas is the measuring tool of how much fee is needed for a particular transaction, while gas price is how much Ether you’re willing to spend to purchase a unit of gas. Gas price is measured in ‘Wei.’

A Wei is the smallest unit of Ether – with one Ether comprising 10^18 Wei.  

If an individual wishes to conduct a transaction on Ethereum, they must set the gas limit and gas price attached to that transaction. If they don’t possess the required gas for that transaction, it will ‘run out of gas’ and hence be invalid. 

Gas can limit the number of transactions on the EVM, in this way:

  • Blocks on the Ethereum blockchain have a gas limit, meaning the gas spend on any transaction cannot exceed a particular amount
  • The gas is attached to the gas price, even if the gas limit was removed, it would be impractical to solve just any problem fed into it. 

EVM has its own programming language called the ‘EVM bytecode.’ When a code is written in a higher-concept programming language like Ethereum’s own Solidity, it is compiled in the bytecode so that EVM can interpret it. 

Transaction-based State Machine 

The EVM is a crucial part of the Ethereum infrastructure since it handles internal state and computations, account information pertaining to addresses, balances, gas price, and so on. The EVM must always keep track of the numerous network components so it can support transactions. 

A state machine is a term in computer science that refers to a machine that can read inputs fed into it and then, upon interpreting those inputs, produce certain outputs. This is how transactions on the EVM are carried out. At the start, there is a blank slate. When transactions are occurring, any point in that duration describes the current state of Ethereum. For a state transaction to occur, the ‘inputs’ entered must be valid. A transaction is validated once it successfully goes through the mining process. 

This mining process is referred to as proof-of-work (PoW) and takes place when certain network participants expend computing power so as to verify a block of transactions and add those transactions on the blockchain. Successfully completing a block gets a miner rewarded with Ether – the native token of the Ethereum blockchain. 

Now, onto the components that the EVM must continually keep track of: the Account State, World State, Storage State, Block Information, and Runtime Environment Information. 

Account State

The Ethereum platform comprises many small accounts that can interact with each other, thanks to its message-passing infrastructure. These accounts can be divided into two types: externally owned accounts and contract accounts. Externally owned accounts are controlled by their owners via private keys, while contract accounts are controlled by the contract code.

An externally owned account can send messages to other externally owned accounts and also contract accounts via the use of a private key. Communication between these types of accounts can be considered as just value transfer.

However, passing between an externally owned account and a contract account triggers the execution of the contract account code. This causes the contract account to execute the instructions in the code, for example, transferring or creating new tokens.

Unlike externally owned accounts, contract accounts cannot initiate new transactions by themselves. 

Instead, they are reactive – meaning they can only engage in transactions in response to other transactions that have been passed to them either from externally owned accounts or other contract accounts.

Three elements characterize the account state, and these are as below:

Nonce – For externally owned accounts, this is the value of how many transactions were sent from the account’s address. For contract accounts, this is how many contracts were created by the account.

Balance – This is how many Weis are owned by the account address

CodeHash – This is the immutable hash value of the EVM code for the corresponding account.

World State

This is a ‘global’ state that comprises a mapping between 160-bit address identifiers and the account state. The mapping is maintained in a data framework called the Merkle Patricia Tree – which in turn consists of nodes with:

  • Numerous leaf nodes at the bottom of the tree that houses the underlying data
  • A set of intermediate nodes with each node consisting of two child nodes
  • A single root hash born from the hash of the previous child nodes, representing the top of the tree structure

Storage State

The storage state is state information for specific accounts. This information is maintained on the EVM at runtime.

Block Information

These are state values that enable transactions to take place, and they comprise: 

  • Block hash – which is the hash of the youngest validated block
  • Coinbase – the recipient’s address
  • Timestamp – the current block’s timestamp
  • Number – the number or position of the current block
  • Difficulty – the difficulty value of the current block 
  • Gas limit – the maximum gas that can be spent on the current block 

Runtime Environment Information

This is information that allows for transactions to be executed. It includes the following: 

  • Gas Price – Current gas attached to a transaction 
  • Codesize – The size of transactions’ source code 
  • Caller – The address of the account that is conducting the transaction
  • Origin – The address of the transaction’s initiator   

Outside the Network

The EVM is situated outside the main Ethereum network, making it a perfect testing environment. Individuals and companies that wish to create smart contracts can do so on the platform, and this will not any way affect normal blockchain operations. They can also use the platform to hone their smart contract creation skills so they can eventually create more robust and applicable smart contracts.

Closing Thoughts

Smart contracts are central to a decentralized world – and the EVM is an excellent platform for developers to curate smart contracts that will make the world a better place. Being a free and highly developed tool for this process, we can’t think of a better platform where people can perfect – and ultimately showcase their coding smarts.

 

Categories
Crypto Market Analysis

Daily Crypto Review, Mar 20 – Cure for Coronavirus found? Crypto surging, Bitcoin above $6,000

The cryptocurrency market had another surprise in its sleeve today. Bitcoin rose above $6,000, while other cryptos followed. Bitcoin is currently trading for $6,164, which represents a staggering increase of 16.2% on the day. Meanwhile, Ethereum gained 15.57% on the day, while XRP gained 8.52%.

The cryptocurrency market had another surprise in its sleeve today. Bitcoin rose above $6,000, while other cryptos followed. Bitcoin is currently trading for $6,164, which represents a staggering increase of 16.2% on the day. Meanwhile, Ethereum gained 15.57% on the day, while XRP gained 8.52%.

The cryptocurrency market had another surprise in its sleeve today. Bitcoin rose above $6,000, while other cryptos followed. Bitcoin is currently trading for $6,164, which represents a staggering increase of 16.2% on the day. Meanwhile, Ethereum gained 15.57% on the day, while XRP gained 8.52%.

v.systems took the position of today’s most prominent daily gainer, with gains of 38.24%. On the other side, Bytecoin lost 6.22% on the day, making it the most prominent daily loser.

Bitcoin’s dominance has increased over the past 24 hours. Its value is now 65.43%, which represents a 0.76% difference to the upside when compared to yesterday’s value.

The cryptocurrency market capitalization increased exponentially, with a current value of $169.77 billion. This value represents an increase of $17.41 billion when compared to the value it had yesterday.

What happened in the past 24 hours

This time, the “what happened in the past 24 hours” section will not be about cryptocurrencies. However, it is connected to the market as it influences it highly. Apparently, a cure for the notorious COVID-19 virus which struck the world has been found.

A drug that treats malaria developed over half a century ago is showing great signs of being the cure for COVID-19, especially in combination with an antibiotic. The study showed great results in treating the virus.

Honorable mention

Tether

The world’s largest stablecoin by market cap has launched its operation on the Bitcoin Cash network. USDT will, at the time of writing, be available on the Bitcoin Cash network. On top of this, it is also available on many other networks, such as Ethereum, Algorand, Liquid Network, EOS, Omni, and Tron.

Tether (USDT) has seen a great surge of interest in recent weeks as the market has been going down. With people not wanting to get out of crypto, but wanting to protect their investments, Tether has been one of the main destinations for their funds.

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Technical analysis

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Bitcoin

Bitcoin experienced a surge in price in the past 24 hours. The largest cryptocurrency by market cap managed to increase in value by over 15%, reaching a price of over $6,000. The resistance level of $5,960 has been broken and became a support level.The price push has ended and Bitcoin is now consolidating at the $6,100 level.


Bitcoin’s volume increased only slightly during the upswing, while its RSI grazed the overbought area on the 4-hour chart, but did not pass it.

Key levels to the upside                    Key levels to the downside

1: $6,640                                           1: $5,960

2: $6,850                                           2: $5,000

3: $7,085                                            3: $4,300

Ethereum

Ethereum followed Bitcoin and had a day with a double-digit increase in price. The second-largest cryptocurrency rose over 15% and managed to tackle the $122.5 as well as the $128 resistance levels, turning them into support.


Ethereum’s volume increased greatly during the upswing but died down as the move ended. Its RSI level also increased, with the value currently being at 61.

Key levels to the upside                    Key levels to the downside

1: $168                                                1: $128

2: $178.6                                            2: $122.5 

3: $185                                                3: $100

Ripple

XRP had a great day, as it increased in price by over 5%. However, its fortune is not as great as the other two aforementioned cryptos. The third-largest cryptocurrency by market cap did manage to gain some value but failed to break the $0.165 resistance level, which plays a crucial role in the future price development of XRP.


XRP’s volume increased slightly during the upswing but is back to normal levels now. Its RSI level is currently at the value of 56.

Key levels to the upside                    Key levels to the downside

1: $0.165                                            1: $0.1

2: $0.19

3: $0.2                                              

Categories
Cryptocurrencies

The R3 Corda Project

Many people think that blockchain and distributed ledger technology are the same things. But as you will realize in this article, blockchain is one type of distributed ledger technology. There is no doubt that blockchain outshines all other types of distributed ledgers. After all, blockchain’s first application was Bitcoin – which is, to put it like this: a celebrity digital currency.

Many people think that blockchain and distributed ledger technology are the same things. But as you will realize in this article, blockchain is one type of distributed ledger technology. There is no doubt that blockchain outshines all other types of distributed ledgers. After all, blockchain’s first application was Bitcoin – which is, to put it like this: a celebrity digital currency.

Many people think that blockchain and distributed ledger technology are the same things. But as you will realize in this article, blockchain is one type of distributed ledger technology. There is no doubt that blockchain outshines all other types of distributed ledgers. After all, blockchain’s first application was Bitcoin – which is, to put it like this: a celebrity digital currency.

Distributed ledger technology provides several benefits – one of them being decentralization. Decentralization removes a single point of failure in systems, as well as granting all participants of a network equal access to data.

The R3 Corda project takes advantage of distributed ledger technology to create an open-source enterprise-grade platform on which businesses can transact with each other in a private, affordable, and efficient smart contract platform.

The R3 blockchain consortium was formed in 2013 and has over 200 members from diverse sectors.

The Corda Model

The Corda platform model is underpinned by three core concepts, which are:

i) State Objects: These represent an agreement between two or more parties. State objects are governed by what is known as a Contract Code – whose work is implemented in portions of human-readable legal text.

ii) Transactions: These are activities that oversee a state object from start to completion.

iii) Flow Framework: This is the infrastructure that enables parties to coordinate activities without the need for a central controller.

Business Principles of Corda

  • Inclusion. Members can discover and transact with each other in a free, single, and open network.
  • Assured Identity. Parties will have the knowledge of who is who in the network
  • Privacy. The only parties who will be privy to the details of a transaction are the involved parties only.
  • Shared logic. All characteristics of an agreement managed by the system will be described in computer code that is shared among concerned parties to ensure the consistency and validity of agreements.
  • Legal footing. Any deal that is recorded on the ledger is admissible evidence and legally binding for all parties involved – in case of any dispute.
  • Authoritative. Any information on the ledger is considered authoritative. There are no ‘shadows’ of authoritative data that are kept somewhere else. What parties see is what they get.
  • Immutability. Data entered on the ledger is final and cannot be deleted. In case of any errors, parties will wait until the next transaction to address it.
  • Open. The system is open in every aspect: open source, participation, development, governance, and standards so that it balances its diverse user needs in a transparent fashion.

The R3 Corda’s Architectural Vision

 R3 Corda aims to create a blockchain environment that is underpinned by the following features:

 i) Scale. The network will scale to support billions of transactions daily across industries

 ii) Longevity. Different versions of Corda will be able to run side by side, and applications can run on later versions, without having to change any code.

 iii) Secure. The platform will operate as though expecting an adversary at any time. So, security settings are forever on high alert.

iv) Stable. The network will evolve carefully, with each version maintaining consensus critical network standards to avoid bugs.

v) Interoperable. On the platform, multiple applications will be able to coexist and interact with each other. 

Notaries

Corda aims to achieve more scalability than the existing distributed ledgers, including blockchain, as well as provide much more security than the one found on blockchains. 

The platform will achieve this by including “Notaries” in their network. Notaries on Corda function much like miners on the blockchain, but without the massive energy costs associated with mining. Notaries validate transactions by time-stamping them. Only after a transaction has been time-stamped can it be recorded on the immutable ledger. 

Notaries can either be centralized (in which case they will be R3 nodes themselves or banks) or distributed (in which case they will use a consensus algorithm, mostly the Practical Byzantine Fault-tolerance Programming.)

Corda and Smart Contracts

Corda enforces its business logic via the use of smart contracts. A smart contract on the R3 Corda platform is a simple function through which a user can accept or reject a proposal. Users can also compose smart contracts using simple and reusable tools.

A transaction is valid when and only if the contract code is associated with a state agrees. A transaction’s initiator has to construct a transaction that adheres to the constraints of that transaction.

Corda uses the Java Virtual Machine6 –- which has a wealth of libraries and a large skill base, for the creation of smart contracts.

How Corda Achieves a Global Distributed Consensus

Corda has three main tools to help it achieve a globally distributed consensus:

  1. Smart Contract Logic – Which specifies constraints to ensure transactions are valid as per pre-set rules and procedures.
  2. Uniqueness and timestamping of services known as notary pools that order transactions temporarily and eliminate conflicts
  3. A ‘Flow Framework’ that simplifies complex protocols between and among distrusting parties

Not a Blockchain

Corda is an implementation of distributed ledger technology by a company called R3. The implementation is modeled after Bitcoin’s UTXO model.

Corda is not a blockchain. It has some similarities with blockchain, but it’s leaner and enables a plug-and-play model.  Mike Hearn, a member of the leading team, writes: “There is no blockchain…Corda is not tied to any particular consensus algorithm.”

Corda’s approach makes it stands out as one of the leading consortia in the DLT/blockchain space.

CorDapps

CorDapps are the Corda platform’s version of decentralized applications. Developers can create their own CorDapps from scratch using the Java CorDapp Template or the Kotlin CorDapp Template.

Corda has also developed a set of CorDapp examples that can serve as templates for developers. These templates are free for access and will demonstrate to developers how to implement core functionalities of CorDapps.

Here are some examples of Cordapp Projects

Auction CorDapp – A CorDapp that allows users to carry out public or private auctions

Be-Well – A CorDapp that allows clients to purchase wellness services via brokers 

Cordite – An open-source, enterprise-ready and finance grade CorDapp that provides decentralized economics and governance services 

Delivery vs. Payment Asset Transfers – A CorDapp that lets users develop delivery-vs-payment of an asset coordinated by a clearinghouse

Oraclize API – An oracle service that uses authenticity proofs to prove that data fetched from the original source has retained its integrity.

What’s In It for Businesses?

By signing up on the R3 Corda platform, organizations can:

  • Streamline complex processes and hence reduce operational costs and risks
  • Acquire new, cutting-edge ways of doing business and hence gain a competitive advantage in the market
  • Increase revenue by a connecting to and monetizing new networks
  • Create a climate of trust between various players

Final Thoughts

The Corda project is showing the world the power of distributed ledger technology. It’s right up there with other projects that rely on blockchain, like the Hyperledger project. Corda provides a great solution for businesses to streamline processes, reduce overhead costs, and achieve business results faster. Through its CorDapps platform, users can create decentralized apps that create useful solutions for society.

Categories
Crypto Videos

CNBC Is Always Wrong About Crypto – The Laughing Stock That Became A Indicator For Winning Trades!

https://youtu.be/tBGA6Fn48XY

https://youtu.be/tBGA6Fn48XY

Is CNBC always wrong about crypto? The CNBC reverse indicator!

Media has been covering cryptocurrencies in-depth for a couple of years now, with many crypto analysts, enthusiasts, and non-believers appearing on air. However, one channel stands out if we talk about cryptocurrency analysis and reports, and that is CNBC.

Bears, bulls, and CNBC

Jacob Canfield, a cryptocurrency analyst, and trader, noted how various tweets that CNBC posted and that is about Bitcoin going up or down coincided with exactly the opposite price movement. He posted his research in a submission on a popular website TradingView.

Canfield said that “Almost every single CNBC bullish tweet we’ve seen has been at the top of almost every single rally, giving traders a very strong sell signal. On the other hand, with every bearish tweet CBNC posts, it has been a clear tell of a short reversal as well as the end of a rally”.
As previously mentioned, CNBC is one of the most vocal mainstream outlets regarding Bitcoin and cryptocurrency in general, featuring daily price movement coverage as well as events regarding crypto. It has dedicated hosts that include the investment manager Brian Kelly.

CNBC reverse indicator

Based on the history of the posts, Canfield says, CNBC can be used as a reverse indicator. When used in such a manner, it had around 95 percent accuracy at the time the research was posted.
Canfield continued his analysis by saying: “With every bearish tweet CNBC posts, we typically see a 30% return on average.” If we pair this indicator with a few more indicators, we can create a pretty good strategy that covers price action, volume as well as market sentiment.
Based on this 30% average return expectation, the CNBC reverse indicator is an amazing indicator to use when gauging market sentiment and when to think about long or short positions. This indicator held up well over time as the CNBC news is showing almost the same levels of inaccuracy as they showed at the time of posting this analysis.

Following the post, the CNBC television reportedly contacted Jacob Canfield and invited him to be a guest at one of its crypto-related news segments.

Categories
Cryptocurrencies

Enterprise Ethereum Alliance: A comprehensive guide

A lot can happen in a decade. And in the blockchain and cryptocurrency space, a lot has happened – and that’s remarkable, seeing we started using those terms just about ten years ago. From thousands of cryptocurrencies launched to entire organizations coming together to further the blockchain agenda – the industry is growing stronger. 

A lot can happen in a decade. And in the blockchain and cryptocurrency space, a lot has happened – and that’s remarkable, seeing we started using those terms just about ten years ago. From thousands of cryptocurrencies launched to entire organizations coming together to further the blockchain agenda – the industry is growing stronger. 

A lot can happen in a decade. And in the blockchain and cryptocurrency space, a lot has happened – and that’s remarkable, seeing we started using those terms just about ten years ago. From thousands of cryptocurrencies launched to entire organizations coming together to further the blockchain agenda – the industry is growing stronger. 

The Enterprise Ethereum Alliance (EEA) is one of these organizations – and it exists to make it easier for individuals and businesses all over the world to collaborate and build private versions of the Ethereum blockchain for their business needs.  

The alliance has over 150 members – which is impressive, seeing as it only started with 30. 

What is EEA’s Vision? 

EEA is motivated by four goals:

i) Build a standard open-source specification 

EEA will define open-source standards for the operation of Ethereum blockchain across member organizations. 

ii) Address enterprise requirements

The EEA will help member organizations deploy blockchain technology wherever applicable.   

iii) Evolve in tandem with the Ethereum blockchain 

EEA members will get blockchain experts and best practices from the Ethereum blockchain. Hence, both public and private versions of the Ethereum blockchain will grow alongside each other.

iv)Strive for global interoperability 

The EEA will strive to realize the interoperability of the blockchains.

How Does EEA Help the Ethereum Blockchain?

The EEA hopes to help the Ethereum blockchain in these ways: 

  • Governance for Ethereum’s Enterprise Applications

The alliance will design a framework through which smart contracts can be optimized and implemented for companies and businesses. Thanks to this, companies will have an easier task of transferring real-world applications onto the blockchain. 

  • Enhance Compatibility and the Public Ethereum

The EEA will plug in new features based on real-life uses cases and contribute to Ethereum’s smart contracts business potential – and the way businesses conduct business.   

  • Ensure Rapid Technical Innovations

Developers interested in creating smart contracts and decentralized applications on the Ethereum blockchain will have an easier time doing so, thanks to more familiar frameworks and more standardized technical procedures and tools.

Ethereum Enterprise Alliance and Hyperledger 

In October 2018, the EEA and Hyperledger – an umbrella project for open-source blockchain frameworks announced they would be working together for the benefit of blockchain. This was good news for the crypto space since both bodies have a wealth of blockchain expertise between them. The two organizations were being seen as competitors before – but coming together means they can tap the synergies in each other and do great things for blockchain. 

“This is a time of great opportunity. Collaborating through mutual associate membership, provides more opportunities for both organizations to work more closely together,” said Ron Resnick, an executive director of the Ethereum Enterprise Alliance. 

The two organizations will help drive the adoption of blockchain by businesses and companies all over the world and, in the process, bring blockchain benefits to the world. 

The new arrangement will also allow for greater sharing between the two organizations. For example, Hyperledger developers can benefit from EEA’s certification programs, and EEA members working to achieve certain standards can get help from the Hyperledger platform to implement them. 

Members of the EEA

EEA is a collaboration of an eclectic mix of companies. 

Some heavyweights in the alliance are Intel, Microsoft, Santander, ING, Ethereum Foundation, Scotiabank, PricewaterhouseCoopers, and Standard Chartered Bank. 

The most interesting member might be JP Morgan Chase & Co. This is because the company’s CEO, Jamie Dimon, has been on record declaring his lack of faith in Bitcoin, Ethereum’s main competitor. His dislike for Bitcoin is so strong that he said he would fire any JP Morgan employee who traded Bitcoin. So, it’s puzzling that he would disparage Bitcoin and throw his support behind Ethereum. 

How to Become a Member of EEA

Anyone can become an EEA member, provided they meet the criteria. Members can be individuals, groups, or organizations. The criteria for joining is as below: 

  • Applicant must be promoting Ethereum-based enterprise applications one way or another. 
  • Applicant must agree to the EEA policies, guidelines – which include Intellectual Property, Non-Disclosure, and Antitrust.
  • Applicant must comply with their country’s laws and regulations 
  • Once a member, applicants must pay an annual membership fee. The fee is as follows: $3,000 for individuals, groups, and companies with less than 50 employees, $10,000 for companies with 51 to 500 employees, $15,000 for companies with 501 to 5,000 employees, and $25,000 for companies with more than $5,000 employees. 

Benefits of the EEA

One of the benefits of the Enterprise Ethereum Alliance is events. The EEA organizes several events each year that create great opportunities for members to meet, network, and share and discuss ideas. Anyone that wishes to connect with the Ethereum agenda in a more meaningful way can benefit from those events. The events take place in many places across the world; some events have been held in London, New York, Denver, Hangzhou, and many others. This opens up the opportunity for businesses from diverse areas of the world to attend. 

Another benefit is members can create strong relationships within the Ethereum community. Apart from discussing serious topics like regulations, creating decentralized applications, and so on, there are also sometimes cocktail receptions that bring people together to have fun, bond, and let loose a bit. 

EEA members can also have detailed bios on the website – where they can talk about their company as well as their Ethereum agenda. This makes for increased international visibility for their company – which comes with increased presence and authority in their industry. As well, members can view each other’s information and create mutually beneficial connections.  

Why Organizations Are Joining the EEA

There are several reasons why the EEA has been a hit. 

Ethereum is the most popular cryptocurrency next to Bitcoin. It is the second-largest in market cap and has maintained that position for a very long time. Also, a lot of the most popular cryptocurrencies today started as Ethereum-based projects – think Tron, EOS, Binance Coin, and so on.  

Ethereum is also home to the ingenious smart contract technology that makes getting into a contract simpler and cheaper than ever before. Smart contracts are self-verifying and self-executing, which removes the need for intermediaries like lawyers, banks, and so on. Many people are interested in technology to see how they can benefit from it.  

Then there are Ethereum’s decentralized applications (DApps), which hold massive potential. DApps are applications that are uncensorable and give users complete control over their personal information – unlike centralized applications like Google, Facebook, etc. For many developers, Ethereum is the go-to blockchain for creating DApps. The reason for this is Ethereum’s solid reputation as the blockchain that made the technology possible. Another reason is the Ethereum Virtual Machine that gives developers access to friendly tools. 

Closing Thoughts

The Enterprise Ethereum Alliance has become a formidable organization in the blockchain space thanks to the value proposition of the Ethereum blockchain and powerful companies that are backing it up. EEA also helped Ethereum’s token – Ether to gain a solid footing in the crypto market. This should be good news for Ethereum investors – they’re assured that Ethereum is not a fad cryptocurrency that’s going to disappear with the wind. And, blockchain enthusiasts should also rest at ease knowing that there are organizations out there that are working daily to advance the cause of technology.  

Categories
Crypto Market Analysis

Daily Crypto Review, Mar 19 – BitMEX discussing Central Bank Digital Currencies; Cryptos consolidating

The cryptocurrency market has spent yet another day without much movement. Bitcoin is currently trading for $5,305, which represents an increase of 1.62% on the day. Meanwhile, Ethereum lost 0.75% on the day, while XRP lost 2.04%.

The cryptocurrency market has spent yet another day without much movement. Bitcoin is currently trading for $5,305, which represents an increase of 1.62% on the day. Meanwhile, Ethereum lost 0.75% on the day, while XRP lost 2.04%.

The cryptocurrency market has spent yet another day without much movement. Bitcoin is currently trading for $5,305, which represents an increase of 1.62% on the day. Meanwhile, Ethereum lost 0.75% on the day, while XRP lost 2.04%.

Steem took the position of today’s most prominent daily gainer, with gains of 95.53%. On the other side, WAX lost 21.91% on the day, making it the most prominent daily loser.

Bitcoin’s dominance increased by a slight margin over the past 24 hours. Its value is now 64.67%, which represents a 0.16% difference to the upside when compared to yesterday’s value.

The cryptocurrency market capitalization remained at basically the same place, with a current value of $152.36 billion. This value represents an increase of $0.61 billion when compared to the value it had yesterday.

What happened in the past 24 hours

BitMEX Research posted a thought that discusses the two approaches that governments can take regarding the issuance of a Central Bank Digital Currency as well as the ramifications for the economy. BitMEX posted its opinion on Mar 18.

The post said that “From a liquidity perspective, the largest deposit-taking institutions in an economy have an almost unconstrained capability to create new loans since the funds loaned out will automatically get placed back into their own bank as a deposit.”

Honorable mention

MakerDAO

The MakerDAO community has locked in an auction in hopes to cover a multi-million dollar hole in the DAI collateral. The funds were “gone” after the sudden Ethereum price crash on Mar 12.

The proceeds from the auction sale will be used to recapitalize and revitalize the system as well as to compensate the losses suffered by the borrowers. They lost their money as their Ethereum collateral got auctioned off for zero DAI.

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Technical analysis

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Bitcoin

Bitcoin had a pretty quiet day with virtually no price movement. There was, at one point, an attempt made by the BTC bears to push the price below $5,000. However, that push ended up quickly and Bitcoin was back to its previous level in no time.


Bitcoin’s volume is stable at the moment, though on quite low levels. Its RSI level is currently sitting at the value of 47.

Key levels to the upside                    Key levels to the downside

1: $5,960                                           1: $5,000

2: $6,640                                           2: $4,300

3: $6,850                                            3: 3,100

Ethereum

Ethereum had a similar day as Bitcoin, though with some differences. Namely, while Bitcoin had an attempted push to the downside, Ethereum tried to break its upside resistance level. However, that ended up without much effect, and Ethereum is now back to its previous level.


Ethereum’s volume is still extremely low and is keeping these levels. Its RSI level is currently slightly below the middle of the value range, sitting at 43.

Key levels to the upside                    Key levels to the downside

1: $122.5                                             1: $100

2: $128                                              2: $80 

3: $168                                           

Ripple

XRP also experienced a slow day with almost no price movement. However, its price moved a bit more than Ethereum’s and Bitcoin’s price. XRP managed to slide down in price by 2%. It is still kept within the same range, currently trading at just above $0.146.


XRP’s volume is extremely low, while its RSI level is sitting at 45 at the time of writing.

Key levels to the upside                    Key levels to the downside

1: $0.165                                            1: $0.1

2: $0.19

3: $0.2                                              

Categories
Blockchain and DLT

Enterprise Blockchains: Everything you will ever need to know

A quick search on the internet about the most popular technologies will almost inevitably yield blockchain as one. Brought into existence by Satoshi Nakamoto, the creator of Bitcoin, blockchain was once dismissed as a fleeting fad, but now it’s one of the most talked-about and valued technologies. So much that industry after industry is exploring to see how it can help them accomplish tasks in faster, cheaper, more transparent, and more accurate fashions. 

A quick search on the internet about the most popular technologies will almost inevitably yield blockchain as one. Brought into existence by Satoshi Nakamoto, the creator of Bitcoin, blockchain was once dismissed as a fleeting fad, but now it’s one of the most talked-about and valued technologies. So much that industry after industry is exploring to see how it can help them accomplish tasks in faster, cheaper, more transparent, and more accurate fashions. 

A quick search on the internet about the most popular technologies will almost inevitably yield blockchain as one. Brought into existence by Satoshi Nakamoto, the creator of Bitcoin, blockchain was once dismissed as a fleeting fad, but now it’s one of the most talked-about and valued technologies. So much that industry after industry is exploring to see how it can help them accomplish tasks in faster, cheaper, more transparent, and more accurate fashions. 

In this article, we’ll be looking at the application of blockchain in enterprises, types of blockchain, and which ones are suitable for enterprises, challenges facing full-scale adoption of enterprise blockchain, and more, but first, what is enterprise blockchain?

What is Enterprise Blockchain?

Enterprise blockchain is a blockchain system that can be used to drive or support enterprise-level processes.

Blockchain will soon positively disrupt the enterprise sector thanks to its revolutionary qualities of immutability, transparency, and decentralization.

Different Types of Blockchains for Blockchain Enterprises

Let’s take a look at the blockchain options available for enterprise blockchains today, namely public and private blockchains.  

We’ll look at their similarities as well as what sets them apart, and why one type is more suitable than the other for enterprise-level use.

Similarities:

  • They offer a decentralized, peer-to-peer platform
  • Each network participant has a copy of the blockchain
  • They both guarantee immutability – or inalterability of records  

Public Blockchains

When you think of Bitcoin, Ethereum, and Litecoin, etc. you’re thinking of public blockchains. Public blockchains are open ecosystems in which anyone and everyone can participate. But public chains are impractical for enterprise use. This is because:

  • Block sizes found in these chains are simply inadequate to store the massive data handled in enterprises
  • There are scalability and throughput issues. For example, Bitcoin can process just seven transactions per second. Its confirmation time for blocks is 10 minutes – which is an unacceptable latency for the millions of transactions that enterprises need to put out.
  • They require massive amounts of computational energy – rendering them unsuitable for long-term and massive scale use
  • Their openness, while good for transparency, is also a problem because it compromises on privacy

Private Blockchains

Private blockchains, also called permissioned blockchains are just that – private. Unlike public chains, access to a private blockchain requires authorization. Access could be given through either:

  • Being an existing participant
  • Being given access by an authorized person
  • Being part of a consortium

Linux Foundation’s Hyperledger Fabric is a good example of a permissioned blockchain network. This blockchain is designed specifically for enterprise applications. 

Required Features of Enterprise-level Blockchains

i) High Performance

For blockchains to be able to be adopted for enterprise use, they need to demonstrate strong and fast performances. This means:

  • The ability to compartmentalize tasks
  • The ability to effect asynchronous communication between elements
  • Faster consensus protocols
  • The ability to carry out varied computations simultaneously
  • Ability to self-execute

ii) High Resilience

High resilience means blockchains must have the ability to bounce back fast from downtimes and failure. It also means that the blockchains must be able to avoid these instances in the first place.

iii) Privacy and Security

Privacy is non-negotiable when it comes to enterprise blockchains. This means they must be able to support secure communications and storage as well as the integrity of a company’s data and profile.

Examples of Enterprise Blockchains in Use

Some companies have already jumped on the enterprise blockchain bandwagon.

Let’s look at examples in various categories:

Finance: Santander, JP Morgan, Royal Bank of Canada, Goldman Sachs, and First Bank of America are just a few of the hundreds of banks that are deploying blockchain technology. Such banks are either involved with the Ethereum Enterprise Alliance, Hyperledger, or the R3 Corda project.

Payments: American Express and Visa are examples of payment companies that are using blockchain to implement various payment procedures.

Automobiles: Volkswagen, Renault, and Lamborghini are examples of vehicle companies that are employing blockchain tech to enhance accuracy, better telematics and mileage tracking, and so on.

Aviation: Airbus, Lufthansa, and Air France are exploring blockchain for purposes such as jet plane part tracking, registration of components, record-keeping of maintenance schedules, flight conditions, and so on.

Features of Blockchain Technology

In this section, we are going to look at the features of blockchain that businesses would want to exploit.

☑️Decentralization

Decentralization means having a peer-to-peer distributed network. This structure has no central authority; neither is it subject to the idealistic whims of one particular person or entity. On the other hand, a centralized system has a single point of failure. This makes it vulnerable to hacking, downtimes, and other vulnerabilities. It is also subject to censorship from authorities.

☑️Immutability

This means once information is stored on the blockchain, it is inalterable. This reduces the chances of corruption, fraud, and meddling. 

☑️Transparency

Blockchain puts up everything for everyone in the network to see. A great example is a transparency in the food industry. Blockchain can help track food from farm to table. This not only boosts consumer confidence but also saves money for suppliers and farmers since when a certain batch of food is infected, it’s easy to trace the exact source of that food.

☑️Blockchain is Cheaper

This point can be best illustrated by banks – which use millions of dollars to conduct Know Your Customer and Customer Due Diligence procedures. With blockchain, customers would simply need to upload their credentials on the site, and banks would access it from there, as opposed to investing in staff and machines to do so – a costly process in terms of time and money.

☑️Blockchain is Faster

To illustrate this, consider the case for SAP collaborating with ATB Financial and Ripple to send a blockchain payment from Alberta, Canada, to Reisebank in Germany. The €667 transaction took 10 seconds – and this would have taken 2 to 6 business days in a traditional payment channel. Ten seconds compared to 2-6 business days is worth paying attention to. 

Implementation Challenges

While blockchain is a revolutionary idea for enterprises, it can be harder implementing it than you imagine. Let’s look at the challenges impeding wide-scale adoption of blockchain in the business world:

Lack of interoperability: If we’re to have blockchains supporting enterprise processes in every sector of our lives, we need blockchains to be interoperable – that means having the ability to interact with each other and having the knowledge of what’s going on in the other chains. That would facilitate more streamlined processes.

Legacy Networks: Let’s be realistic; the current systems run on legacy; that is, legacy networks that are supported by old technology. Changing this infrastructure from the ground up would require a massive investment of time and money – which is not exactly a priority for many businesses.

Skillset: Blockchain is not the easiest skill to master. If you’re to integrate blockchain solutions in your company, you would need to hire people with blockchain skills. It can be not only daunting looking for one but also prohibitively expensive.

Final Thoughts

Enterprise blockchains could help businesses streamline processes and, in the process, realize more profits and build confidence in customers. Multiple companies from a diverse range of platforms have already onboarded the technology, while others are in the exploration stage. Given the positive transformation that blockchain is capable of ushering in, the technology has yet to see its best days in terms of adoption and even wider recognition, its current obstacles notwithstanding.

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Crypto Videos

Crazy Crypto Profits Using The Ichimoku Cloud Indicator – part 2

https://youtu.be/WzdqwqDfVLU

https://youtu.be/WzdqwqDfVLU

Trading crypto using Ichimoku Cloud – part 2/2

Market structures that suit the Ichimoku Cloud

Ichimoku Cloud is mostly useful in trending markets. It won’t perform well or produce much relevant info in ranging markets. When the market is ranging, the cloud will constantly be swapping between red and green, yielding very little valuable information. The same will happen on short time frames, which is why Ichimoku Cloud shouldn’t be used on these.
Ichimoku cloud strategies that involve other indicators.

There quite a lot of trading strategies that involve Ichimoku Cloud. However, the important thing to understand is that, even in trending crypto markets, Ichimoku Cloud is almost never used alone. Typically, traders will combine it with other indicators.
Indicators that pair well with the Ichimoku Cloud should provide some way of identifying support-resistance levels based on the asset volume. Using a volume-based indicator alongside Ichimoku is beneficial because the cloud takes price action cycles into consideration while disregarding volume completely.
Popular indicators to use with Ichimoku in cryptocurrency trading
Volume
StochRSI, MACD or any other momentum oscillators
Fibonacci retracements
Bollinger Bands

Ichimoku Cloud cryptocurrency settings


Many people ask if they should use alternative settings for Ichimoku Cloud for trading cryptocurrency markets.

Ichimoku Cloud works with timely moving averages, so with crypto trading, it follows reason to set timespans considering the fact that cryptocurrencies are being traded 24/7/365.
While the traditional Ichimoku cloud settings are (9, 26, 52, 26):
9 would represent a week and a half of regular trading
26 is the number of trading days in a typical month (30 minus 4 Sundays)
52 represents two months of trading days
Traders should create a special Ichimoku Cloud setting for cryptocurrencies as the market is open 24/7 (20, 30, 120, 60):
7+3.5 = 10 (due to the low volume on Sunday), or double that for longer-term trend capture
30 days in a month rather than 26
2 trading months in crypto are 60 days instead of 52 days

However, some traders reject this special Ichimoku Cloud crypto setting. Their reasoning behind that is that the cloud period lengths are meant to capture a certain time period and that it doesn’t matter whether it represents a week. This opinion is less popular as it seems a bit ignorant to disregard the day of the week movements and how certain days influence the market.