Tag: Education

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Forex Course

154. Understanding Hawkish and Dovish Central Banks

Introduction

Introduction

Introduction

The movement in a currency pair depends on several factors. Hawkish and Dovish Central bank is one of them. Besides economic releases, there are some events where Central provides an outlook and projection of the economy. Therefore, if the projection is excellent, it will create a positive impact on the currency market. If the projection is terrible, it will create a negative impact on the currency market.

What is Hawkish Central Bank?

If the economic condition is good, the central bank will raise the interest rate to achieve the inflation target. The hawkish central bank means providing a positive statement regarding the country’s present and upcoming economic conditions, like the economy is getting stable or the inflation is under control.

Let’s say the US economy is getting stronger with a decreased unemployment rate and the controlled inflation target. In this situation, the central bank will provide an official statement saying that the economic condition is favorable, known as the hawkish tone.

What is the Dovish Central bank?

If the economic condition is wrong, the central bank will cut the interest rate and provide a dovish tone. The dovish central bank means providing an outlook of the economy, stating that the economy is facing difficulty to achieve the economic goal.

Let’s say that the European economy is struggling to achieve the targeted inflation level. Moreover, the unemployment rate is increasing. In this situation, the central bank is likely to provide a dovish tone starting that it is planning for a rate cut.

However, the dovish and hawkish tone might cover several factors, as mentioned in the table below:

Decision

Hawkish

Dovish
Objective Reduce inflation Stimulate the economy
Monetary Policy Tighten Loosen
Economic Growth Projection Strong Weak
Current Inflation increasing Decreasing
Interest Rate Increase Decrease
Currency Effect Strong Weak

How Hawkish and Dovish Tone Affect the Forex Market

The hawkish and dovish central bank has both long term and short term impact on the currency market. If the US Federal Reserve provides a hawkish tone, we might see the US Dollar become stronger against most currencies. Therefore, if we want to trade on a short term basis, we can move to the 5-minute chart and take trades based on a suitable trading strategy.

Moreover, the hawkish or dovish tone will indicate the overall outlook of a country’s economy that might help traders understand the upcoming market direction. For example, suppose the CPI, GDP, export-import, and other fundamental indicators are favorable. In that case, the central bank will provide a hawkish tone, and traders can take trades in a specific direction until there is a dovish tone.

Conclusion

Hawkish and dovish central banks directly affect the price of a currency pair; therefore, traders should keep an eye on the economic calendar to know when the event will happen. Moreover, during the central bank meeting and press conference, the market becomes volatile, affecting running trades. Moreover, the central bank releases a note after the website’s meeting where traders can read to know the dovish and hawkish tone.

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Categories
Cryptocurrencies

Blockchain Lockbox wallet Review: How Safe Is This Blockchain Hardware Wallet?

Blockchain Lockbox is an exclusive hardware wallet that’s specially designed to complement the all-popular Blockchain web wallet. Launched in October 2018, Blockchain Lockbox was designed and created by Blockchain wallet founders in collaboration with Ledger Technology Company. According to Blockchain Wallet CEO, Peter Smith, the hardware wallet is supposed to offer their platform users the option and means to manage their digital assets seamlessly, online and offline.

Blockchain Lockbox crypto hardware wallet

Blockchain Lockbox is an exclusive hardware wallet that’s specially designed to complement the all-popular Blockchain web wallet. Launched in October 2018, Blockchain Lockbox was designed and created by Blockchain wallet founders in collaboration with Ledger Technology Company. According to Blockchain Wallet CEO, Peter Smith, the hardware wallet is supposed to offer their platform users the option and means to manage their digital assets seamlessly, online and offline.

Blockchain Lockbox is an exclusive hardware wallet that’s specially designed to complement the all-popular Blockchain web wallet. Launched in October 2018, Blockchain Lockbox was designed and created by Blockchain wallet founders in collaboration with Ledger Technology Company. According to Blockchain Wallet CEO, Peter Smith, the hardware wallet is supposed to offer their platform users the option and means to manage their digital assets seamlessly, online and offline.

Blockchain Lockbox is marketed as a security-focused crypto wallet that incorporates the most comprehensive range of highly effective safety and privacy measures. These are then complemented by an equally impactful list of operational features aimed at making the Blockchain Lockbox wallet as easy to use as possible.

In this Blockchain Lockbox review, we detail these features and vet their influence on the hardware wallet’s safety and ease of use. We also look at such other factors as the number of currencies supported by the wallet, its pros, and cons, level of customer support advanced, and compare it with equally popular hardware wallets.

Blockchain Lockbox key features

Compatible with blockchain web wallet: Blockchain Lockbox is ideally supposed to compliment and offer an offline alternative of the already popular Blockchain web wallet.

On-device screen: The USB-like hardware device that takes the shape of Ledger hardware wallets features an on-device OLED screen. The screen comes in handy when activating the wallet, checking crypto balances offline, and authenticating outbound crypto transfers.

Navigation button: In addition to the screen are two on-device buttons supposed to help you navigate the hardware wallet and confirm outbound crypto transfers.

FIDO-Certified: Blockchain Lockbox is a FIDO certified hardware wallet. This means that in addition to keeping the private keys for your cryptocurrencies safe, it can also be used to store the security keys for your Google, Dropbox, GitHub accounts, and more.

Blockchain Lockbox security features

PIN Code: Blockchain Lockbox hardware wallet is secured with a PIN code that you get to create when setting up the crypto vault. This 8-digit PIN not only protects but also encrypts the wallet’s content.

Recovery seed: When activating the hardware wallet, you will also be presented with a 24-word backup seed that you can use to recover your lost wallet or private keys.

Ledger technology: Ledger has a solid reputation for coming up with the most secure crypto hardware wallets. So does Blockchain web wallet, and the fact that Lockbox infuses both Ledger and Blockchain wallet technologies speaks volumes about the hardware wallet’s reliability.

Anti-phishing protocols: Blockchain lockbox is an end-point controlled wallet. It has a unique key embedded within its firmware that will only pair with the legit Blockchain wallet website. This implies that Blockchain Lockbox cannot turn on when connected to a clone website, which goes a long way in defeating phishing.

Non-custodial/Cold storage: Blockchain Lockbox, like the blockchain web wallet, is a non-custodial crypto vault that will not store your private keys on the company servers. Instead, it encrypts all your user data – the private keys and any other personal information stored therein – and holds it in the offline hardware device.

Dual Chip architecture: Unlike most other hardware wallets whose secure element will only feature one encryption chip, Blockchain Lockbox features the ultra-secure ST31H320 and STM32F042 chips. Note that both chips are CCEAL5+ (crypto industry-level) certified.

Key Erasure tool: If you enter your PIN code for the crypto wallet unsuccessfully for three consecutive times, the hardware device will be locked, and any content therein permanently deleted.

How to set and activate the Blockchain Lockbox wallet

Step 1: Start by ordering your Blockchain Lockbox hardware wallet from the Blockchain wallet official website

Step 2: Open the Blockchain Wallet website and login into your user account or create one.

Step 3: Connect the hardware device to your computer using the USB cable provided

Step 4: On your Blockchain wallet’s user dashboard, tap on the ‘Balances’ tab and select the “Set up now” icon

Step 5: Chose the device you wish to set up – Blockchain Lockbox.

Step 6: Follow the prompts by the setup wizard to complete the process.

Step 7: Once done, the hardware device will display the “Choose a PIN” message.

Step 8: Press both on-device buttons simultaneously to set a wallet PIN. Toggle between the right and left buttons when selecting a number and press both buttons simultaneously once satisfied with your 8-digit PIN.

Step 9: Write down and verify the 24-word recovery seed provided by the hardware device

Step 10: Your wallet is now active and ready for use

How to add/receive crypto into your Blockchain Lockbox wallet

Step 1: Log in to your Blockchain wallet user account and click on the “Request” tab.

Step 2: Select the cryptocurrency you would like to receive on the drop-down menu.

Step 3: Chose Blockchain Lockbox on the “Receive To” drop-down menu.

Step 4:  The wallet will automatically generate an address and dynamic QR code that you should now copy and send to the party sending your cryptos

How to transfer coins from blockchain web wallet for Blockchain Blockbox

Step 1: Log into your Blockchain wallet account and click on the “Send” icon.

Step 2: Chose the currency you want to transfer from the drop-down menu and Blockchain Lockbox from the “Receive To” drop-down menu.

Step 3:Chose the sub-wallet on which to deposit the funds to (or simply enter the hardware wallet address) and the number of coins you wish to transfer

Step 4: Select the transaction fee and hit send.

Step 5: The wallet will prompt you to connect the Hardware Wallet

Step 6: Log in to the hardware wallet by keying in the PIN code

Step 7: Press the right on-device button to view the transaction details.

Step 8: After verifying that the transaction is correct, press the on-device button to authorize the transfer

How to send crypto from your Blockchain Lockbox wallet

Step 1: Log in to the Blockchain wallet and click the “Send” tab.

Step 2: Select the currency you what to send in the “Currency” drop-down menu and Blockchain lockbox in the “From” drop-down menu.

Step 3: Enter the recipient’s address and the number of coins you want them to receive

Step 4: Select the transaction fees and click on “Continue.”

Step 5: Connect your lockbox hardware wallet and log in.

Step 6: Check the accuracy of the transaction details on the on-device screen and press the right on-device button to confirm and authorize the transfer

Blockchain Lockbox wallet ease of use

The Blockchain Lockbox wallet has the most effortless onboarding process. The process of receiving and sending cryptocurrencies in and out of the wallet is also relatively straightforward. The on-device screen and buttons and the highly intuitive user interface of the Blockchain wallet web service have also played a key role in easing the interaction with the hardware wallet. And all these make Blockchain Lockbox a beginner-friendly hardware wallet.

The Blockchain Lockbox website is also multi-lingual and available in 20+ international languages.

Blockchain Lockbox wallet supported currencies and countries.

Blockchain lockbox is a multi-currency hardware wallet that currently supports four cryptocurrencies – Bitcoins, Ethereum, Bitcoin Cash, and Stellar Lumens. The wallet developers have nevertheless committed to increasing the number of supported assets in line with user-demands.

The wallet can also be shipped into 140 crypto-friendly countries across the world.

Blockchain Lockbox wallet cost and fees

Blockchain Lockbox currently retails at $59 + free express shipping.

The transaction fee for sending cryptos from the web wallet to Lockbox or other wallets and exchanges is highly dynamic. Priority fees translate to higher transaction fees and faster transaction confirmation, while the basic charge translates to lower costs and slow transaction confirmation speeds.

Blockchain Lockbox wallet customer support

Blockchain wallet has a highly responsive customer support team available via email or social media platforms like Twitter and Instagram.

What are the pros and cons of using the Blockchain Lockbox wallet?

Pros:

  • Blockchain lockbox is easy to use and beginner-friendly.
  • The hardware wallet is competitively priced.
  • The wallet embraces a wide range of highly effective security measures.
  • Easily integrates the blockchain wallet.

Cons:

  • It can only be used on the Blockchain Lockbox wallet.
  • The wallet doesn’t support fiat-to-crypto purchase.

Comparing Blockchain Lockbox wallet with other hardware wallets

Blockchain Lockbox wallet vs. Ledger Nano S wallet

Blockchain Lockbox is technically an offshoot of the Ledger class of hardware wallets given that it was designed and created by Ledger in partnership with Blockchain. They both employ a wide range of security features, including two-factor authentication and recovery seed. Both are also multi-currency hardware wallets that are simple to use and quite beginner-friendly.

But while Blockchain lockbox is only compatible with the Blockchain wallet, Ledger Nano S is versatile and compatible with multiple software and hardware wallets. Additionally, while Blockchain lockbox will only support four cryptocurrencies, Ledger Nano S supports 1000+ cryptos and tokens.

Verdict: Is the Blockchain Lockbox wallet safe?

Blockchain Lockbox is a safe wallet that has put in place multiple advanced security features that include two-factor authentication, dual-chip architecture, and anti-phishing protocols. We also appreciate Blockchain Lockbox’s ease of use, competitive pricing, and beginner friendliness. The only downside to the hardware wallet is its rigidity in that it is compatible with the Blockchain wallet.

Categories
Forex Education Forex System Design

Seeking Accuracy in the Historical Simulation

Introduction

Introduction

Introduction

A historical simulation may seem like a simple process to perform; however, it goes beyond creating trading rules and introducing them into the simulation software. Within the software itself, some limitations can diminish the accuracy of the results and, in this way, overestimate or underestimate the possible results that the strategy would achieve in the real market.

This educational article explores the importance of precision in the simulation process and some simulation software problems.

Importance of the Accuracy 

The developing process of a trading strategy that systematically creates trades can be tested on a historical simulation procedure with relative confidence and accuracy. However, like all software, it can be affected by precision and lead to errors, which can increase, especially when looking for a historical simulation.

In this regard, the developer should not rule out a possible error in the simulation software, nor can it leave to chance the computer simulation’s lack of precision, as this may drag unpleasant results to the investor. In consequence, the developer should address the software errors in the best possible way.

The developer must seek to make the simulation as realistic as possible to address the accuracy problem. To achieve the desired accuracy, the historical data exchange must be as close as possible to real-time executions.

Thus, according to Robert Pardo (2008), achieving greater accuracy in the historical simulation will require two things: understanding software limitations and using conservative assumptions about costs and slippage in their various forms.

Software Limitations

Ignorance of historical simulation software limitations can lead the developer to a false confidence sentiment or be overly pessimistic about the historical simulation results. The most common constraints are:

Rounding of Data

The absence of the actual market price for the use of data rounding may have a cumulative effect on market entry and exit orders, which could lead to a cumulative effect, both positive and negative, on the trading strategy’s performance.

The problem of rounding in the historical simulation may lead to recording orders that, on a real market, would not have been executed or orders that would have been executed in real-time but not recorded by the simulation. A second error is a recurring understatement or overstatement in the strategy’s profits due to rounding.

The developer must determine if the historical simulation results are consistent with its real market results.

Finally, rounding errors will significantly impact a strategy that seeks small profits per trade. On the contrary, the impact will be less on those strategies that are slower or longer-term.

Price on Limit Orders

This error is a recurring problem in simulation software, and, in particular, it is presented in counter-trending strategies, which use pending orders to enter the market. In other words, the countertrend strategy places a buy limit when the market is falling and a sell limit when it is developing a rally. Contrary to a stop order, the execution of the limit order is not guaranteed.

The problem arises when the developer performs the historical simulation, and the software assumes that all limit orders will be executed during the simulation. However, according to Perry Kaufman (1995), up to 30% of all limit orders are not filled.

Faced with this problem, the strategy developer must define a security level to ensure that the order will be filled, increasing the probability of execution in the real market. This additional rule might consider that the price penetrates an additional distance to consider the order as executed.

Finally, this rule will not necessarily ensure that all limit orders will be executed; however, it will produce a more realistic approach to the simulation process.

Conclusions

The historical simulation process may present some problems generated by the code that the developer should be aware of. These inaccuracies can create false confidence by overestimating the results or drive it to be too pessimistic due to underperformance. These problems are mainly price rounding and limit-order executions.

In the first case, price rounding may induce the simulation software to execute input or output orders at levels other than those filled in the real market. To overcome this limitation, the developer must verify whether the strategy’s results are the same as the strategy would obtain in the real market.

The second error arises from counter-trend systems making use of limit orders. In this case, the developer must consider that not all limit orders are filled in the real market. Thus, the simulation could lead to overestimating the strategy’s results, creating a false optimism of the obtained performance. To mitigate this problem, the developer could introduce an additional requirement of an extra distance that the price should penetrate for the limit order to be executed.

Finally, in view that historical simulation software has limitations, the strategy developer should verify whether the simulation results are similar to those obtained in the real market.

Suggested Readings

  • Pardo, R.; The Evaluation and Optimization of Trading Strategies; John Wiley & Sons; 2nd Edition (2008).
  • Kaufman, P.J.; Smarter Trading – Improving Performance in Changing Markets; McGraw Hill; 1st Edition (1995).
Categories
Forex Course

153. The Affect Of Monetary Policy On the Forex Market

Introduction

Introduction

Introduction

Fundamental analysis is one of the most reliable forex trading strategies in the world that considers economic releases and events. In fundamental analysis, many indicators provide a possibility of upcoming movement in a currency pair. Besides the economic release, some events like monetary policy decisions create an immediate impact on a currency pair.

What is Monetary Policy?

Monetary policy is an action or decision taken by the central bank to control the money supply and achieve the economic sustainability and macroeconomic goal. Every country has a strategic goal based on the current performance and upcoming economic growth of the economy. Therefore, most of the central bank changes the interest rate based on the economic condition.

Usually, the central bank sits quarterly for a monetary policy meeting to discuss the following four core areas:

  • Guideline for the money market
  • Interest rate decision.
  • Monetary policy measurement.
  • The outlook of the economic and financial developments.

How Monetary Policy Affects the Forex Market?

In a monetary policy meeting, the central bank discusses the present economic condition of a country. Therefore, any hawkish tone may create an immediate bullish impact on a particular currency. On the other hand, a dovish tone may create an immediate negative impact on a particular currency in any trading pair.

Besides the immediate effect, there is a long-term impact on the price of a currency pair. We know that any strength in an economy indicates a stronger currency. For example, if the ECB (European Central Bank) provides some consecutive outlook of the European economy saying that the inflation is under control, and the interest rate increased, which is likely to increase again in the next quarter. In that case, the influential European economy may create a Bullish impact on EURUSD, EURAUD, or EURJPY pair.

Moreover, there is some case where the central bank cut the interest rate where traders and analysts were expecting a rate hike. In this scenario, investors may shock at the news, and the effect might be stronger than before.

How to Trade Based on Monetary Policy Statement?

There is two way to trade based on the monetary policy decision. The first one is based on the immediate market effect, which is known as news trading. On the other hand, traders can evaluate the economic condition based on the recent monetary policy statement and see how the economy is growing in the long run. Based on this market scenario, traders can find a long term direction in the market based on economic performance as per the monetary policy statement.

Another way of trading based on the monetary policy decision is the fundamental divergence. If one fundamental indicator does not support another fundamental indicator, it creates fundamental divergence. For example, the US interest rate is increasing based on the strong employment report, but inflation does not support the rate hike. In this situation, traders can take trades with the possibility that the rate hike’s effect will not sustain.

Summary

Let’s summarize the effect of monetary policy in the forex market:

  • Monetary policy meeting happens quarterly where the central bank takes interest rate decision.
  • In the monetary policy meeting, the central bank provides an outlook of the economic and financial developments.
  • A hawkish tone makes the currency stronger, while the dovish tone makes the currency weaker.
  • Traders can identify the fundamental divergence based on the decision on monetary policy meeting.
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Categories
Cryptocurrencies

LISK HUB wallet Review: Is It The Safest Lisk Blockchain Wallet Yet?

Lisk Hub wallet is the official web and desktop app wallet for the Lisk blockchain. It was created by the Lisk Blockchain developers and launched in February 2018. And with the discontinuation of the full stack Lisk Nano wallet, Hub has become increasingly popular with the Lisk blockchain enthusiasts. According to its developers, the wallet is specially designed to serve both expert and beginner crypto investors by providing the user with the “best experience and security.” The wallet replicates and improves on all the operational and security measures embraced by Lisk Nano.

Lisk Hub web wallet

Lisk Hub wallet is the official web and desktop app wallet for the Lisk blockchain. It was created by the Lisk Blockchain developers and launched in February 2018. And with the discontinuation of the full stack Lisk Nano wallet, Hub has become increasingly popular with the Lisk blockchain enthusiasts. According to its developers, the wallet is specially designed to serve both expert and beginner crypto investors by providing the user with the “best experience and security.” The wallet replicates and improves on all the operational and security measures embraced by Lisk Nano.

Lisk Hub wallet is the official web and desktop app wallet for the Lisk blockchain. It was created by the Lisk Blockchain developers and launched in February 2018. And with the discontinuation of the full stack Lisk Nano wallet, Hub has become increasingly popular with the Lisk blockchain enthusiasts. According to its developers, the wallet is specially designed to serve both expert and beginner crypto investors by providing the user with the “best experience and security.” The wallet replicates and improves on all the operational and security measures embraced by Lisk Nano.

But does this make it the most effective and most secure Lisk-specific wallet? How does it compare to other Lisk Blockchain wallets? We answer these by looking at the operational and security measures adopted by the wallet and highlighting everything else you need to know about the Lisk Hub wallet in this review.

Key features

Cross-platform: Lisk Hub is a cross-platform wallet that started off as a web wallet but has since launched the desktop app version. It is a light wallet that doesn’t require you to download the Lisk blockchain to your computer. Rather, it connects to the Lisk blockchain via ultra-fast remote nodes.

Blockchain explorer: Lisk Hub web wallet also features a blockchain explorer feature that allows you to monitor different wallets and explore Lisk’s decentralized network. The explorer lets you view different blocks and Lisk transactions or inspect the elected and prospective Lisk delegates.

Voting and Staking: Lisk blockchain runs on the proof of stake consensus that allows individuals to stake their Lisk Tokens for a chance to win rewards and participate in electing block validators. Ideally, every staked LSIK coin equals one vote when voting in delegates and block validators. But how much you earn from staking depends largely on the number of coins staked.

Lisk Newsfeed: In addition to the explorer, the Lisk network integrates the newsfeed tab to your wallet’s user dashboard. Here, you get the latest and most updated news about the happenings within the network, like the listing of new tokens or general announcements.

Lisk SDK: Lisk Hub wallet users will also have access to the Lisk SDK app builder tools. They can, in turn, use the resources provided here to create decentralized apps and tokens. Unlike most other blockchain SDK that uses new programming languages, SDK is available in the all-popular JavaScript and TypeScript languages.

Decentralized exchange (coming soon): The Lisk blockchain development team is also expected to launch a proprietary decentralized exchange soon and probably integrate several other third-party exchanges. And with Lisk Hub’s growing popularity, they will all feature on the wallet’s dashboard.

Security features

Password: Lisk Hub, like any other Web or desktop wallet, is secured with a password that you get to set when creating a user account. It not only discourages authorized access to your digital assets but also serves as the wallet encryption tool, encrypting your private keys and any private data saved in the wallet.

12-word recovery seed: When creating a user account, Lisk hub uses the personal data you key in to customize a Lisk Identity for you. It, in turn, uses to create a personalized 12-word recovery seed. Write this seed down on a piece of paper and save it offline as you will need it to restore lost wallet and recover private keys.

Non-custodial: Lisk Hub wallet is a non-custodial wallet that encrypts and saves your personal data and private keys in your device – not on the blockchain servers.

Anonymous trading: When creating a user account on Lisk Hub, the wallet will collect as little private information as possible. It also limits the amount of private data it collects every time you transact. This information is then highly encrypted and stored in your device – not the wallet servers.

Open source: Lisk Hub wallet is also built on an open-sourced blockchain technology. Anyone can view and audit the wallet source code by downloading it from the Lisk.io website or the Lisk Hub page on GitHub.

How to set and activate the LISK HUB wallet

Step 1: Start by downloading the Lisk HUB browser extension or desktop app compatible with your browser/computer operating system.

Step 2: Launch the app and since you are new to Lisk Hub, select the “Create a new wallet” option

Step 3: Enter a preferred username for the wallet and create a unique password.

Step 4: You will now be provided with 12 random phrases that represent your seed phrase. Write them down and save them offline.

Step 5: The wallet is active and ready for use

How to add/receive Crypto into your LISK HUB wallet

Step 1: Log in to your Lisk Hub wallet and click on the ‘Receive’ tab on the user dashboard

Step 2: A deposit screen will appear, displaying the wallet’s private address and QR code

Step 3: Copy either of them and forward it to the individual sending you cryptos.

Step 4: Wait for your Lisk to reflect in your wallet.

How to send Crypto from your LISK HUB wallet

Step 1: Log in to your Lisk Hub wallet and click on the ‘Send’ icon on the user dashboard

Step 2: On the transfer window that pops us, enter the recipient’s wallet address and the amount of Lisk tokens you wish to send

Step 3: Confirm the accuracy of these details and hit send.

LISK HUB wallet ease of use

Lisk Hub makes it to the list of the most versatile Lisk Blockchain wallets. It is highly customizable and allows you to customize the icons and illustrations on the wallet dashboard and change the wallet’s theme (dark mode available).

It also features a quick and straightforward onboarding process, given that it doesn’t ask for personalized user details. The processes of sending and receiving cryptos in and out of the wallet are also easy and straightforward.

LISK HUB wallet supported currencies

Lisk Hub web wallet is a Lisk-specific wallet and will only support Bitcoin, Lisk tokens, and any other token built on the Lisk Network.

LISK HUB wallet cost and fees

Lisk Hub web and desktop app wallet is free to download and install. You also won’t be charged for storing cryptocurrencies therein.

However, you will be charged a small transaction processing fee by the Lisk Network whenever you send cryptos to another wallet or exchange.

LISK HUB wallet customer support

There exist several channels that you can explore when seeking an audience with the Lisk Hub wallet support team. You could start by checking out the FAQ page on their website or joining the community forum where your questions are answered by both experienced Lisk Hub wallet users and developers. Alternatively, contact the team directly via email or messaging them on their social media pages on Twitter, Reddit, or Facebook.

What are the pros and cons of using the LISK HUB wallet?

Pros:

  • Lisk Hub wallet is easy to use and easily customizable and even features the dark theme.
  • The wallet is quite versatile and available as a browser extension or a Windows/macOS desktop app.
  • The wallet integrates several key features that include a newsfeed, community forum, Developer’s forum, and blockchain explorer with the exchange and sidechain registration expected in the near future.
  • It is relatively safe and even features a backup seed phrase.
  • It allows you to easily monitor your portfolio and keep tabs on your digital asset balances via the history tab that lists all your crypto inflows and outflows.

Cons:

  • Lisk doesn’t have a mobile app option.
  • One may consider the transaction fees charged by the Lisk blockchain to be quite high.
  • It will only support Bitcoin and Lisk affiliated tokens.

Comparing LISK HUB wallet with other Lisk wallets

LISK HUB wallet vs. Lisk Core wallet

Lisk Hub and Lisk Core are both desktop wallets built specifically for the Lisk blockchain. Both will only support Lisk tokens and other tokens built on the network. They also have virtually similar integrated operational and security features. But while Lisk Hub is a light wallet app, Lisk Core is a full-stack node wallet.

This implies that while Lisk Hub uses remote nodes to connect to the Lisk blockchain, Lisk Core has direct access to its Graphical user interface and synchronizes the blockchain downloaded on the user’s computer with the Lisk mainnet in real-time. Lisk Hub, however, carries the day with an easy onboarding system and easier to use interface.

Verdict: Is LISK HUB wallet safe?

The free web and desktop wallet has put in place highly effective security and privacy measures aimed at keeping your private keys safe and your crypto vault secure. It has taken this a step further by minimizing the amount of client data it collects, encrypting this data, and saving it on your computer. The make it considerably safe. However, the fact that it is online-based means that it is prone to the inherent threats facing hot crypto wallets. 

Categories
Forex Daily Topic Forex Price Action

Importance of Choosing the Right Chart

In today’s lesson, we will demonstrate an example of a chart that makes a breakout at the weekly low, consolidates, and produces an excellent bearish engulfing candle. It looks like a good short entry for the sellers. However, things do not go as the sellers would love to see. We try to find out what may be the reason behind it.

In today’s lesson, we will demonstrate an example of a chart that makes a breakout at the weekly low, consolidates, and produces an excellent bearish engulfing candle. It looks like a good short entry for the sellers. However, things do not go as the sellers would love to see. We try to find out what may be the reason behind it.

In today’s lesson, we will demonstrate an example of a chart that makes a breakout at the weekly low, consolidates, and produces an excellent bearish engulfing candle. It looks like a good short entry for the sellers. However, things do not go as the sellers would love to see. We try to find out what may be the reason behind it.

It is the H4 chart. The chart shows that the price action has been choppy for the last three weeks. The price has been roaming around within two horizontal levels. Ideally, the price action traders would love to skip eying on such a chart to trade at. Let us proceed and see the H4 chart of the last week.

The chart shows that the price makes a bullish move to start its trading week. Then, it makes a bearish move and closes around the level where it started its week. It seems that the minor time frame sellers are driving the price down.

The chart produces a bullish engulfing candle right at the last week’s swing low. The minor time frame traders may push the price towards the North. The H4 sellers, on the other hand, may wait for the price to make a breakout at the swing low to go short on the chart. This is what the breakout traders usually do. However, the question is whether they should do it on this chart or not? We find it out in a minute.

It seems that the Bear is about to make a breakout at the last week’s low. The last candle comes out as a bearish engulfing candle closing right at the level of support.

The price makes a breakout at the weekly low. The last candle comes out as a bearish candle closing well below the level of support. The breakout traders are to wait for the price to consolidate.

The price consolidates. The last candle comes out as a bearish inside bar. If the price makes a breakout at the last swing low, the breakout traders usually trigger a short entry. Let us proceed and see what the price does.

The chart produces a bearish engulfing candle. It is an A+ signal candle as far as the breakout trading strategy is concerned. The sellers may want to trigger a short entry right after the last candle closes.

The chart produces a bullish engulfing candle and heads towards the North instead. The Forex market is unpredictable. The price could go either way anytime. However, it looks strange after the chart producing such a nice signal candle. There is nothing wrong with the entry apart from the fact that the chart has been choppy for the last three weeks. It means either the pair is waiting for a high impact news event to find its new direction or traded based on a bigger time frame. In a word, the price action traders may skip eying on such a chart to trade at. For them, choosing the right chart plays a vital role. Today’s example proves it again.

Categories
Cryptocurrencies

ICONEX wallet Review: Is It The Safest Neo Blockchain Wallet Yet?

ICONEX is the official wallet for the ICON blockchain network. It was developed by ICON Foundation and introduced to the crypto community in February 2018. And at the time of launching, the Iconex wallet was an online wallet – only available as an extension of the Google Chrome browser.

ICONEX crypto wallet app

ICONEX is the official wallet for the ICON blockchain network. It was developed by ICON Foundation and introduced to the crypto community in February 2018. And at the time of launching, the Iconex wallet was an online wallet – only available as an extension of the Google Chrome browser.

ICONEX is the official wallet for the ICON blockchain network. It was developed by ICON Foundation and introduced to the crypto community in February 2018. And at the time of launching, the Iconex wallet was an online wallet – only available as an extension of the Google Chrome browser.

In the last two years, however, the crypto wallet has been subjected to rigorous upgrades that saw the Icon foundation introduce a phone app version and integrate a host of security and operation features. These upgrades have especially been aimed at making ICONEX wallet easy to use, highly versatile, and one of the most secure ICON wallets today.

But what are some of these operational or security features? Have they been effective in making ICONEX easy to use and secure? We detail them here, provide you with a step-by-step guide on how ICONEX works, and tell you if it is a secure wallet in this review.

ICONex wallet key features

Cross-platform wallet: ICONEX is a cross wallet platform available as a web wallet and smartphone app. You can choose to use the Google Chrome ICONEX wallet extension online or download the ICONEX mobile wallet app from Apple App Store or Google Play Store.

Integrates hardware wallets: On the ICON website, the network is described as a versatile technological ‘protocol for connecting the blockchain world.’ ICONEX Wallet developers are looking to bring this versatility to the Icon vault by making it compatible with leading crypto hardware wallets like Ledger Nano S.

ICX token swap: ICONEX wallet integrates the ICEX token swap feature that you can use to convert ERC20 tokens to the ICX main-net tokens. The process of activating the token swap feature and using it to swap currencies is easy and straightforward.

Voting and staking options: You also get to share in the ICON network revenues as well as vote in block validators when you hold ICON tokens. However, you need to hold a significant number of ICON tokens before you can be allowed to participate in staking. When voting in block validators known as P-Reps (Public Representatives), each ICON token is equal to one vote. Plus, there can only be 22 P-Reps and 78 sub-P-Reps who govern the Icon Network.

Multi-account support: There is no limit to the number of wallet addresses you can host on the ICONEX crypto vault.

Security features

Passcode: When creating a user account on the ICONEX wallet, you will be required to create a unique six-digit passcode to secure the wallet.

Anonymous user registration: ICONEX wallet promotes user privacy and encourages anonymous crypto trading, given that it doesn’t ask for your personal information when creating a user account. The mobile app or the browser extension will neither collect nor store client information.

Wallet backup: ICONEX makes backing up your wallet and the digital assets therein quite easy by providing you with a downloadable copy of the recovery seed. It also presents you with a printable copy of the private keys. Moreover, you have the option of copying this sensitive wallet information down on a piece of paper and storing them safely offline.

Non-custodial: ICONEX wallet is also non-custodial in that it doesn’t store private keys on your behalf. Rather, these are highly encrypted and saved within your device.

How to set and activate the ICONEX wallet

Step 1: Start by downloading the ICONEX wallet that is compatible with your smartphone or the Chrome browser extension.

Step 2: Install and launch the wallet.

Step 3: On the user dashboard, select “Create a wallet.”

Step 4: The wallet will request you to choose the default wallet address between ICON and Ethereum – select ICON (ICX)

Step 5: Come up with a unique wallet name and create a wallet password

Step 6: The wallet will present you with a wallet backup file. Download and keep it safe. You are advised to save it in an offline device, for example, a USB Flash drive, and don’t keep a copy on your device.

Step 7: You will then be presented with your wallet’s private key. You can copy it, save it on an offline device, print a hard copy, and keep it safe.

Step 8: Your ICONEX wallet is now active and ready for use.

How to add/receive crypto into your ICONEX wallet

Step 1: Log in to your ICONEX wallet and on the user dashboard, click on the ‘ICON’ tab

Step 2: On the deposit screen, copy the deposit address or the QR code and forward them to the party sending you ICON tokens

Step 3: Wait for the tokens to reflect in your wallet.

How to send crypto from your ICONEX wallet

Step 1: Log in to your INCONEX wallet and on the user dashboard, click on the ‘ICON’ tab

Step 2: Tap on the ‘Transfer’ icon

Step 3: On the transfer screen, enter the recipient’s wallet address and the number of coins you wish to send

Step 4: Confirm that those details are correct and hit send.

ICONEX wallet ease of use

ICONEX wallet is highly intuitive and maintains an easily navigable user interface specially designed to appeal to both the experienced and beginner crypto investors. The onboarding process is easy, and their sending and receiving processes straightforward. Most importantly, the user dashboard is very elaborate, with just a few buttons carefully placed on the site.

ICONEX wallet supported currencies and countries

ICONEX is a multi-currency wallet app that hosts several cryptocurrencies, including ICON Tokens, Ethereum, and ERC-20 tokens.

ICONEX wallet cost and fees

You won’t be charged for downloading and installing the INCONEX wallet or storing your altcoins and tokens therein.

However, you will be charged a small network fee whenever you send these coins or tokens to another wallet or exchange. A similar charge applies when you convert ERC-20 tokens to ICON tokens. These are collected by the ICON network and not the ICONEX wallet, and the extent of the fee is largely dependent on the type of altcoin you want to send and the transaction amounts.

ICONEX wallet customer support

There are several ways that you can use to access the ICONEX wallet customer support team. You can start by raising a support ticket on the ICONEX website. Similarly, you can consult the website’s rather elaborate FAQ page that details solutions to all the common challenges faced by ICONEX wallet users. You may also consider joining the ICON community forum and have your queries responded to by both experienced ICONEX wallet users and the wallet developers. For more sensitive issues and faster responses, contact the ICONEX wallet support team via the different social media platforms.

What are the pros and cons of using the ICONEX wallet?

Pros:

  • ICONEX wallet is easy to use and beginner-friendly.
  • It is highly versatile and available as a web wallet and crypto vault app.
  • You can boost the wallet security by integrating it with a hardware wallet.
  • ICONEX embraces multiple security measures to keep your wallet safe.

Cons:

  • It will only support a limited number of coins.
  • It is not a Multi-signature wallet, and it doesn’t support two-factor authentication.

Comparing ICONEX wallet with other multi-currency wallets

ICONEX wallet vs. eToro

ICONEX and eToro share such common features as their support for different currencies, they both have an inbuilt exchange, and they are the official wallets for their specific networks. They also have highly responsive customer support teams and are considered easy to use.

However, while eToro supports more than 20 crypto and fiat currencies and integrates its proprietary and fully-fledged crypto exchange, ICONEX can only host Ethereum, ICON, and ERC-20 tokens and have a token swap platform in place of a crypto exchange.

Verdict: Is the ICONEX wallet safe?

ICONEX has integrated several features and put in place measures aimed at keeping the wallet secure and its contents private. At the forefront is the six-digit passcode that doubles up as an encryption tool. Plus, the wallet allows for anonymous user registration and trading by not asking for client information when signing up nor collect any information that may be personally identifiable to you. These, plus the fact that it is a non-custodial wallet, makes it relatively secure. We nevertheless must mention that the fact that it is non-custodial and does not integrate handy security features like 2FA only makes it ideal for smallholder and active crypto traders. 

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Forex Videos

Forex Fundamental analysis for novices – Dallas Fed Manufacturing Index!

https://youtu.be/8HAmv6BtNdE

https://youtu.be/8HAmv6BtNdE

Fundamental analysis for novices: Dallas Fed Manufacturing Index

 

Thank you for joining this forex academy educational video. In this session, we will be looking at fundamental analysis for novices and discussing the Dallas fed manufacturing index.

Most brokers offer an economic calendar where you will see economic data release events that fall due daily, weekly, or even monthly.
It is critical that you know when these events are going to occur because many of them cause extreme volatility in the market and may affect any open trades or trades that you are about to take, while not realising that an event is about to happen and where these events might reverse price action, to your trading detriment. Professional traders plan around such events, and you should do the same so that you understand what is going on in the marketplace at all times.

The key components of an economic calendar are the day and the date, the time, the type of event, the impact, which is a barometer of the likelihood of the event causing volatility and which is normally low, medium, or high, and which is measured on this calendar with the strength indicator filling the box, the more likely volatility will occur, and where the high volatility impact releases will typically fill the box in solid red.
Also, the actual data box will be populated very quickly after the embargo announcements, and you can also see a general consensus of what the market believes the data is likely to be as compiled by market analysts and economists. And you will also see the previous data, whether that is for the previous week, month, quarter, or year.


Here we have scrolled forward to Monday the 31st of August, and we can see that at 3:30 BST, the Dallas Fed manufacturing business index for August was due to be released and where the impact value is low, there is no consensus available, and the previous figure was -3.
The United States Dallas fed manufacturing index pertains to the state of Texas, which is the second-largest state in America, with a gross state product of nearly 2 trillion$. Many of the top fortune 500 companies are domiciled in the state of Texas.

The index itself measures the performance of manufacturing in Texas, where the information is taken from around 100 businesses and is based on output orders, and prices, and employment within Texas. Therefore, it is an important indicator of the economic health of one of the largest states in America.

Although no the economic calendar impact box shows this as being low for potentially causing market volatility, the American economy is in a precarious position with the covid virus still highly prevalent across all states, and where the American economy is struggling to regain anywhere near the levels, it reached before the pandemic started.

Therefore, traders should be mindful that any information regarding economic activity in any of the States is likely to cause volatility. Traders will be looking for a figure better than –3, which would be considered to be strong for the United States dollar, which might firm, and if the number is worse than –3, it will be bad for the economy and where you might find the American dollar loses ground against the other major currency pairs.

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Cryptocurrencies

AIRBITZ (EDGE) Wallet Review: Features, Security, Fees, And Ease Of Use

Airbitz bitcoin wallet app recently underwent a major rebranding that saw its name to Edge wallet. In addition to the open-sourced crypto mobile app, it was also subjected to massive structural changes that aim at making it the most secure and easy to use the wallet.

Airbitz wallet app is now EDGE Crypto app

Airbitz bitcoin wallet app recently underwent a major rebranding that saw its name to Edge wallet. In addition to the open-sourced crypto mobile app, it was also subjected to massive structural changes that aim at making it the most secure and easy to use the wallet.

Airbitz bitcoin wallet app recently underwent a major rebranding that saw its name to Edge wallet. In addition to the open-sourced crypto mobile app, it was also subjected to massive structural changes that aim at making it the most secure and easy to use the wallet.

The most visible changes include its shift from a Bitcoin-only to a multi-blockchain wallet and a more intuitive user interface. The Edge development team has also integrated several operational and security features to the highly versatile mobile wallet.

This Airbitz/Edge crypto wallet app review seeks to highlight all these features and examine their effectiveness in making it the most secure wallet. We will also be addressing its ease of use, supported currencies and compare it with other multi-currency wallets before telling you if it really is the most secure crypto wallet app available.

AIRBITZ key features:

Versatile mobile app: Edge is a highly versatile mobile wallet app. It is not only available for the popular Android and iOS smartphone operating systems but is also available for Windows phones.

Inbuilt exchange: Edge features an inbuilt crypto exchange. Therefore, you don’t have to leave the wallet to buy, sell, or exchange cryptocurrencies, which saves time and eliminates unnecessary transaction fees.

Support for fiat purchases: Edge wallet app doesn’t just let you store, buy, and sell cryptos within the app but also lets you make crypto purchases using fiat currencies through either bank wire transfers to the wallet or via credit card.

Bluetooth transactions: Edge crypto wallet app supports Bluetooth Low Energy (BLE), which means you don’t need to be online to initiate a transaction. BLE allows you to send cryptocurrencies to other individuals via Bluetooth. 

Address book: The wallet seeks to eliminate the risk of sending funds to the wrong wallet by introducing the in-app address book where you can save a crypto recipient’s address, name, and photo for easy access when sending them digital coins.

AIRBITZ security features

Password and Biometrics: Edge embraces a multi-layered wallet protection feature. When creating a user account, you will first be required to set a strong multi-character password for the wallet. You are then required to set a four-digit passcode for regular logins. Additionally, you have the option of adding the fingerprint or face ID login option.

Open source: Edge is also built on an open-sourced technology and allows for scrutiny from both wallet app users and blockchain experts. The code can be downloaded from the official Edge wallet app website or GitHub.

Hierarchically deterministic: The wallet app is also hierarchically deterministic, implying that the public wallet address is auto-generated for every new transaction, which furthers the wallet’s commitment to user privacy.

Automated wallet backup: Unlike other crypto wallets that require you to save and memorize a lengthy recovery seed, your passphrase for the Edge wallet doubles up as your recovery seed.

Client-side encryption: Client-side encryption implies that any data that your wallet shares with the Edge wallet servers or third party systems is encrypted before it leaves your wallet app, effectively safeguarding it against possible man-in-the-middle attacks.

Anonymous registration: Edge crypto wallet app doesn’t ask for personal information like name or address when creating a user account. Neither does it collect or store any personal information when you use the wallet app.

How to set and activate the AIRBITZ wallet

Step 1: Download and install the Edge crypto wallet app compatible with your phone’s operating system.

Step 2: Once installed, launch the app and create a username

Step 3: Create a unique and multi-character password (with a minimum of 10-characters)

Step 4: Set a four-digit passcode that you will be using for regular on-device logins

Step 5: The wallet will request that you write down this information (username, password, and passcode) on a piece of paper and save it offline

Step 6: Read and agree to the crypto wallet app’s terms of use

Step 7: Clicking finish takes you to your account’s user dashboard, an indication that the wallet is active and ready for use.

How to add/receive Crypto into your AIRBITZ wallet

Step 1: Log in to your edge wallet and click the “Request” button

Step 2: Select the wallet address where you would like the coins deposited and enter the number of coins you wish to receive

Step 3: Copy this information and forward it to the party sending you cryptos.

Step 4: Alternatively, hit the share button if you want to share this information with the individual sending cryptos via SMS or email

Step 5: Wait for the funds to reflect in your wallet.

How to send Crypto from your AIRBITZ wallet

Step 1: Log in to your Edge crypto wallet and app and on the user dashboard, tap on the “Send” icon

Step 2: If you have multiple digital assets stored therein, select the wallet from whence you would like to send the coins

Step 3: On the transfer window, enter the recipient’s wallet address and the number of coins you wish to send

Step 4: Confirm that the transaction details are accurate.

Step 5: Slide the authorization button to authorize the transfer

AIRBITZ wallet ease of use

Edge crypto has a relatively straightforward onboarding process. The processes of sending and receiving cryptos are also easy and straightforward. The user dashboard is also easily navigable and specially designed for both the experienced and beginner crypto investors.

The user interface is also highly customizable and allows you to tweak most of the basic features, including its theme. It also integrates a map of all BTC-accepting stores in your neighborhood.

AIRBITZ wallet supported currencies and countries

Edge is a multi-blockchain and multi-currency wallet for all popular cryptos, including Bitcoin, Ethereum. Litecoin, Ripple, Monero, Bitcoin Cash, Dash, Bitcoin Gold, Dogecoin, and all ERC-20 tokens.

AIRBITZ wallet cost and fees

Installing the Edge crypto wallet is free. However, you will pay a  competitive transaction processing fee every time you send cryptocurrencies to another wallet or exchange. This fee is collected by the different blockchain miners and administrators and not the Edge wallet.

What are the pros and cons of using the AIRBITZ wallet?

Pros:

  • Edge is built on an open-sourced technology and also supports two-factor authentication.
  • The wallet app is highly intuitive and beginner-friendly
  • Edge is a multi-currency wallet supporting 40+ cryptocurrencies and tokens.
  • The wallet gives you absolute control of your private keys and password while simplifying the wallet backup process.
  • The wallet features an in-app exchange and integrates a crypto exchange.

Cons:

  • One may still consider the number of supported cryptocurrencies to be limited.
  • It is a mobile app and not available for desktop or online (web) access.
  • It is not a multi-signature wallet.

Comparing AIRBITZ wallet with other Multiblockchain wallets

AIRBITZ wallet vs. BRD wallet

Edge is similar to BRD (also known as Bread wallet). They both started as bitcoin-only wallets before structural upgrades saw them appreciate and store other altcoins. Both are also easy to use, feature an inbuilt exchange, and have a highly intuitive user interface designed to appeal to experienced and beginner crypto traders. The recent update to the Edge wallet has, however, seen it incorporate more operational and security features when compared to BRD. One may also consider the Edge wallet app’s user interface to be user-friendlier.

Verdict: Is the AIRBITZ wallet safe?

Yes, Airbitz – now Edge – crypto wallet app has incorporated a wide range of security features to keep your private keys safe and within your control. These are highly effective and start with keeping all your sensitive information within the wallet and out of anyone’s (including their servers) reach. This data is also subjected to military-grade client-side encryption. The app’s equally effective security features include hierarchically deterministic address generation, biometrics support, and the all-important two-factor authentication. 

Categories
Crypto Videos

Earn Passive Income With Yield Farming Part 2!

https://youtu.be/Petl4xCznaw

https://youtu.be/Petl4xCznaw

 

Earn Passive Income With Yield Farming – Part 2/2


While the previous part of our yield farming series talked about the definition, threats and opportunities of DeFi yield farming, this part will talk more about specific projects and what they offer, as well as how to choose the right project for you.

Compound and Aave

Compound and Aave are currently DeFi’s primary lending and borrowing protocols. These two platforms together account for over $1.1 billion of lending and $390 million of borrowing. The easiest and most straightforwards way of earning a return in DeFi is lending capital on the money market.

Aave generally has better rates than Compound, as it offers its borrowers the ability to choose a stable interest rate rather than a variable rate. The stable rate is, in most cases, higher for borrowers than the variable rate, therefore increasing the marginal return to lenders.

On the other hand, Compound introduced a new incentive for its users through the issuance of its COMP native token. Anyone that lends or borrows on the Compound platform earns a certain amount of COMP, translating into more rewards.

Security from Financial Risk

DeFi money markets work by employing over-collateralization, meaning that a borrower must deposit assets that have more value than their loan. When the collateralization ratio (which is the value of collateral divided by the value of the loan) falls below a threshold, the collateral is liquidated and instantly repaid to lenders.

Yield Farming Liquidity Pools

Uniswap and Balancer are the two largest liquidity pools in DeFi. They offer liquidity providers a reward in the form of fees for adding their assets to a pool. Liquidity pools are between two assets that are configured in a 50-50 ratio in Uniswap, while Balancer allows for up to 8 assets in a single liquidity pool.
Whenever someone takes a trade through the liquidity pool, liquidity providers who contribute to that pool earn a small fee to facilitate the transaction. Uniswap pools have offered liquidity providers healthy returns over the past year as decentralized exchange volumes picked up. However, optimizing profits requires investors to also consider impermanent loss, the loss created by providing liquidity for an asset that suddenly appreciates.
Balancer pools are somewhat mitigating impermanent loss, as pools don’t need to be configured as a 50-50 split between two assets. They can be set up in a 90-10 or 80-20 allocation to minimize impermanent loss. However, the risk cannot be completely eliminated.

However, there is a liquidity pool that completely eliminates impermanent loss. Curve Finance facilitates trading between assets that are pegged to the same value. As an example, there is a Curve pool with USDC, USDT, DAI, and sUSD: all stablecoins pegged to the USD. There’s also a liquidity pool that consists of sBTC, RenBTC, and wBTC: all pegged to Bitcoin’s price. As all of the assets are worth the same amount, there is no impermanent loss. On the other hand, trading volumes of those pools will almost always be lower than the regular liquidity pools like Uniswap and Balancer.

Incentive Schemes

The Synthetix project first introduced an sETH-ETH pool as the original incentives scheme, offering liquidity providers an added incentive of SNX rewards. While this pool has deprecated, this idea expanded to other liquidity pools.
Taking advantage of these incentives can show to be incredibly lucrative. However, investors should ensure that they aren’t earning a dud token, but rather something that holds value. Nobody wants to take part in an incentive scheme that gives rewards in tokens equivalent to BitConnect tokens.

What to Choose

For the slightly risk-averse investors who just want to earn a yield on their stablecoins, there are many options, with money markets or providing liquidity on projects such as Curve Finance being the best option for lower-risk interest. For those with large cryptocurrency holdings and want to use them to earn even more, liquidity pools such as Uniswap or Balancer are certainly a good choice. Added incentives on top of the regular rewards are just icing on the cake.

That being said, the perfect yield farm is different for each individual varies based on their amount of capital, the investment time horizon, as well as how risk-averse they are.

Categories
Crypto Videos

Earn Passive Income With Yield Farming!

 

 

 

Earn Passive Income With Yield Farming – Part 1/2

The hottest buzzword in crypto at the moment is surely “yield farming.” Yield farming allows people to earn fixed or variable interest simply by investing crypto in a DeFi project. As an example, investing in ETH is NOT yield farming, but lending out ETH on the Aave platform for a return IS yield farming. As the newest trend in crypto, investors are still a bit skeptical as they do not understand what it is and how it works.

Yield Farming – Explained

Yield farming is the practice of staking cryptocurrencies in return for monetary gain. While the expectation of earning a yield based on investments is nothing new, the concept of yield farming has arisen directly from the decentralized finance sector. The idea is that individuals can earn tokens in exchange for participating in DeFi applications. Yield farming is often called liquidity mining.

How It All Works

The precise mechanics of yield farming vary based on the terms and features of the individual DeFi application. Most projects started out by offering users a small share of the transaction fees in exchange for contributing liquidity. However, the most common yield farming method at the moment is to use a DeFi application and earn the project token as a reward.

This practice became popular during the summer of 2020 when Compound announced that it would start issuing its COMP governance token to both lenders and borrowers who use the Compound application. This was extremely well accepted, pushing Compound to the top of the DeFi rankings.
Since then, several projects created DeFi applications with associated governance or native tokens and started rewarding users with their tokens.
The most successful yield farmers try to maximize their returns by deploying more complicated strategies. These advanced strategies usually consist of staking tokens in a chain of protocols, intending to generate maximum yield.

Pros/Cons of yield farming

The benefit of yield farming is apparent immediately, and that is profit. Yield farmers who adopted a new project early have the privilege of benefiting from token rewards that can quickly appreciate in value. If they choose to sell those tokens at the right time, they can make significant gains.
Yield farmers generally have to invest a large sum of initial capital in order to generate any significant profits, with even hundreds of thousands of dollars being at stake. Due to the volatile nature of cryptocurrencies and especially DeFi tokens, yield farmers are exposed to the risk of liquidation, which occurs in case their project is plummeting in price. On top of that, the most successful yield farming strategies are extremely complex, meaning that the risk is higher if you don’t know all the yield farming space’s ins and outs.
Another risk of being a part of the DeFi and yield farming space is that the projects you invest in may have bugs that can crash the whole system, therefore rendering your funds non-existent. There have been several examples of such things happening, with the most prominent one being bZx, which suffered a series of hacks due to a single misplaced line of code.

Challenges and Opportunities

Almost every single DeFi application is currently based on the Ethereum blockchain, which creates two problems. The less important one is that, as Andreas Antonopoulos says, is that if projects support only Ethereum-based cryptocurrencies, they are slightly centralized in that manner. However, this is not as important as the next challenge, which is the overload of the Ethereum network. The network is currently struggling with a lack of scalability as it did not anticipate DeFi and its rapid expansion. As yield farming becomes more popular, Ethereum will get clogged up with more transactions, leading to slower confirmation times and skyrocketing transaction fees.

However, with new scaling propositions and alternative DeFi platforms, these problems aren’t fatal to DeFi, and the practice of yield farming could end up being around for quite some time.
Check out the next part of our DeFi passive income guide to learn how certain projects do business, how to earn passive income with them, as well as which project is the right for you.

Categories
Forex Course

152. Knowing The Fundamental Factors That Affect The Currency Values

Introduction

Introduction

Introduction

Many fundamental factors affect currency value. Therefore, whether we trade based on technical analysis fundamental analysis, we should know these factors to understand the currency markets.

Important Fundamental Factors That Affect Currency Values

Fundamental factors are economic releases and events that have a direct impact on currency value. If we want to trade based on fundamental analysis, we should focus on these releases and make a decision based on the result. Let’s have a look at the important fundamental factors that affect currency values

Interest Rate

Interest rate is the amount that a central bank charges if anyone takes loans from the bank. Central banks change the interest rate to control the country’s money supply; therefore, it directly affects the currency value.

Inflation Rate

Inflation is the buying power of money. Lower inflation means higher buying power, and higher inflation, the lower buying power.

Consumer Price Index (CPI)

CPI or CPI inflation is the price of consumer needs. Any increase in CPI is bad for the currency, while a decrease in CPI is good for the currency.

Producer Price Index (PPI)

PPI is the price of products or elements of businesses. An increase in PPI means businesses need additional money to buy raw materials that may increase the finish product rate.

Retail Sales

Retail sales indicate the number of products and services bought by consumers. An increase in retail sales indicates higher consumer activity in the market that is good for the currency value.

Foreign Exchange reserve

Foreign exchange reserve is the amount of money that is reserved in the central bank. An increase in foreign reserves is positive for a country’s economy and currency value.

Non-Farm Payroll (NFP)

On the first Friday of every month, US Labor Statistics releases the number of unemployed persons in the USA. As the US dollar is the most used currency globally, any change in NFP affects the overall forex market.

Central Bank Meets

In every quarter, central banks of every country provide an outlook of the domestic and international economy. In this meeting, any hawkish tone creates a positive impact on the currency value, while any dovish tone creates a negative impact on the currency value. We should keep an eye on how central banks are reacting to the central banks meeting to get an outlook of the currency value.

Conclusion

Besides the above-mentioned fundamental factors, there is a political movement, trade natural disaster, etc. also impacts the currency market. Moreover, in an uncertain market condition, no trading strategy works well, whether based on technical or fundamental analysis. Let’s dig deeper into each of these fundamental factors and more interesting aspects in the upcoming lessons. Cheers.

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Categories
Forex Fundamental Analysis

Understanding The Importance Of ‘New Home Sales’ Macro Economic Indicator

Introduction

Introduction

Introduction

In any economy, demand is one of the primary leading indicators of economic growth and inflation. Therefore, the aggregate demand data plays a vital role in predicting economic growth and possible monetary and fiscal policies. Although considered a lagging indicator, the data on new home sales provides insight into households’ changing demand and their income situation.

Understanding New Home Sales

As the name suggests, new home sales provide data on the newly built single-family that were sold or are for sale during a given period. New home sales data is also referred to as new residential sales. Sales mean that a deposit for the house has been taken or a sales agreement has been signed.

The data on new home sales is derived from a survey of a sample of houses from the building permits register. Since the data obtained is from a sample survey, it is bound to be subject to sampling variability as well as non-sampling error. Response bias, nonreporting, and under-coverage factors also influence this data. Nonetheless, the data is nationally representative.

The new home sales report shows data for the new privately-owned houses and new houses by construction stage. The report presents data that are both seasonally adjusted and those not seasonally adjusted.

  • The number of units sold during the period
  • The number of units for sale at the end of that period
  • The ratio between the houses sold and those for sale
  • The median and average sale price

How to use New Home Sales Data for Analysis

Although the new home sales data is generally regarded as a lagging economic indicator of demand in real estate, there is no dispute that broader macroeconomic trends influence new home sales. Here are some of the factors that influence new home sales.

Household income: Significant changes in the households’ disposable income will change their demand for new homes. Disposable income is the residual amount after paying taxes. These income changes could be brought about by an increase in wages, reduction in taxes, or investment windfall. If there is an increase in disposable income, households’ demand for new homes will increase. They could right away purchase already completed units or get into sale agreements for houses ongoing construction. Therefore, new home sales can be expected to increase during the period of increased household income. Conversely, a decrease in disposable income will make households cut back on non-essential expenditure, such as buying new homes. Consequently, new home sales will be expected to decline.

Unemployment: The rate of unemployment in the economy is directly linked to the households’ welfare. A lower unemployment rate implies that more households have income and can thus afford to put down deposits for a new home. Similarly, the unemployment rate reduction signifies that more people can afford to service a mortgage loan. Therefore, a low unemployment rate can be correlated to an increase in the demand for new houses, hence increasing new home sales.

Source: St. Louis FRED

Conversely, higher rates of unemployment mean that more people are out of gainful employment. This instance forces households to prioritize their expenditures to cater to the essential items. Furthermore, higher unemployment could mean that more households do not qualify for a mortgage. Thus, a reduction in the new home sales can be expected with increasing unemployment.

Interest rate: In the financial markets, the prevailing interest rate determines the cost of borrowing – especially home mortgages. When interest rates are low, it means that more households can afford to borrow cheaply. It becomes easier for households to service debt without digging too much into their income, thus ensuring no significant changes in their welfare. Since most households can afford to borrow cheaply when interest rates are low, the demand for new homes can be expected to increase.

When interest rates are high, the cost of borrowing increases, and with it, the cost of a mortgage. Higher rates would restrict some households from servicing expensive debt without significantly impacting their welfare. Thus, with an increasing interest rate, it can be expected that new home sales will decline.

Impact on Currency

The new home sales data can impact a country’s currency in several ways. Here is how.

The new home sales can be used to show economic recoveries. Buyers of new homes could be speculative buyers – those who expect these homes’ prices to increase in the future then resell. To them, to them, new homes are an investment. Thus, the new home sales data can be taken as a sentiment about the economy. An increase in the new home sales could imply that the future economy is expected to improve. Similarly, in times of recessions, like the current coronavirus-inflicted recession, the new home sales data can be used to show market recovery. Therefore, an increase in the new home sales can be seen as a sign of economic recovery, which increases the value of the currency relative to others.

The new home sales can also be used to show when an economy is headed for a recession. Typically, recessions are punctuated with declining economic conditions, such as an increasing unemployment rate. Continually declining new home sales could indicate a looming recession as economic welfare of households is deteriorating. Furthermore, in these circumstances, expansionary monetary and fiscal policies tend to be implemented. These policies are designed to prevent the worst-case scenario from playing out. In the first quarter of 2020, such expansionary policies were witnessed globally. They were meant to prevent extreme economic shocks from the coronavirus pandemic. These policies result in the depreciating of the currency relative to other currencies.

Sources of Data

In the US, for example, the US Census Bureau conducts the survey and publishes the new home sales data for the US. An in-depth and historical review of the US’s new home sales is available at St. Louis FRED. Trading Economics publishes new home sales data for countries globally. Furthermore, you can access the forecast of the new home sales globally up to 2022.

How New Home Sales Data Release Affects Forex Price Charts

The most recent release of the US’s new home sales was on September 24, 2020, at 10.00 AM ET. The news release can be accessed at Investing.com.

The screengrab below is of the monthly new home sales from Investing.com. On the right, we can see a legend that indicates the level of impact this fundamental indicator has on the USD.

As can be seen, high volatility is to be expected.

In August 2020, the new home sales were 1011K compared to 965K in July. The sales were higher than the anticipated 895K. Thus, a strong USD is expected.

Now, let’s see how this release made an impact on the Forex price charts.

EUR/USD: Before New Home Sales Release on September 24, 2020, 
Just Before 10.00 AM ET

Before the news release, the EUR/USD pair was trading in a neutral pattern as the 5-minute candles formed just around a flattening 20-MA.

EUR/USD: After New Home Sales Release on September 24, 2020, at 10.00 AM ET

After the news release, the pair formed a 5-minute ‘hammer’ candle, indicating that the USD weakened. Subsequently, the pair adopted a bullish stance with the 20-period MA rising.

As shown by the above analyses, the US new home sales data release failed to produce significant volatility. Therefore, we can conclude that new home sales are insignificant in the forex market as an economic indicator.

Categories
Forex Assets

Costs Involved While Trading The CAD/RON Forex Exotic Pair

Introduction

Introduction

Introduction

The CAD/RON is an exotic currency pair where CAD is the Canadian Dollar, and RON is the Romanian Leu. This article will explain some basic elements about the CAD/RON you ought to know before you start trading this pair. The CAD is the base currency, and RON is the quote currency in the CAD/RON exotic pair.

Thus, the CAD/RON pair’s price represents the amount of RON that you can buy using 1 CAD. If the pair’s current price is 3.1292, it means that you can use 1CAD to purchase 3.1292 RON.

CAD/RON Specification 

Spread

When trading forex, the spread represents the difference between the price at which a currency pair can be bought (bid price) and the price it can be sold at (ask price).

The spread for the CAD/RON pair is: ECN: 35 pips | STP: 39 pips

Fees

The STP accounts have no trading fees attached. Trading fees for the ECN accounts vary depending on your choice of forex broker.

Slippage

When trading in the forex market, sometimes the price you request on an order tends to be different from the price your broker executes the trade. This difference is known as slippage, and it depends on the broker’s speed of execution and market volatility.

Trading Range in the CAD/RON Pair

To ensure that proper risk management measures are taken, forex traders should know how much a currency pair fluctuates within a given timeframe. Trading range analysis can help forex traders to determine the volatility associated with trading a particular currency pair. This volatility is measured in terms of pips. If the CAD/RON pair has a volatility of 10 pips within the 1-hour timeframe, then a forex trader can be expected to gain or lose $32 since the value of 1 pip of CAD/RON is $3.2

Below is a table showing the minimum, average, and maximum volatility of CAD/RON across different timeframes.

The Procedure to assess Pip Ranges

  1. Add the ATR indicator to your chart
  2. Set the period to 1
  3. Add a 200-period SMA to this indicator
  4. Shrink the chart so you can determine a larger period
  5. Select your desired timeframe
  6. Measure the floor level and set this value as the min
  7. Measure the level of the 200-period SMA and set this as the average
  8. Measure the peak levels and set this as Max.

CAD/RON Cost as a Percentage of the Trading Range

When trading forex, the costs you can expect to incur include; brokers’ fees, slippage, and spread.

Total cost = Slippage + Spread + Trading Fee

The tables below show the analyses of percentage costs in both ECN and STP accounts.

ECN Model Account

Spread = 35 | Slippage = 2 | Trading fee = 1

Total cost = 38

STP Model Account

Spread = 39 | Slippage = 2 | Trading fee = 0

Total cost = 41

The Ideal Timeframe to Trade CAD/RON

From the above cost analysis, we can observe that the cost of trading the CAD/RON pair varies across different timeframes depending on the volatility. For both the STP and the ECN accounts, the 1-hour timeframe carries the highest costs at 694.92% and 644.07%, respectively. These higher costs are associated with the low volatility of 0.1 pips observed during the 1-hour timeframe.

We can also notice that the trading costs drop significantly when the volatility across all timeframes is above average. Therefore, for intraday forex traders, placing trades when the volatility is above average might be a better way of reducing the trading costs associated with the CAD/RON pair. On the other hand, longer-term traders of the pair enjoy lesser trading costs.

One way for traders to reduce their trading costs is to use limit order types. These forex order types eliminate the effects of slippage, thus make the associated slippage costs zero. Below are costs for a trader using limit orders.

ECN Model Account (Using Limit Orders)

Total cost = Slippage + Spread + Trading fee

= 0 + 35 + 1 = 36

As you can see, the trading costs are significantly reduced when limit orders are employed. The highest trading costs dropped from 644.07% to 610.17% of the trading range.

Categories
Cryptocurrencies

Natrium Mobile wallet Review: Is It The Safest Neo Blockchain Wallet Yet?

Natrium wallet is a mobile crypto app developed by Appdito and introduced to the Nano community in August 2018. It is an open-sourced mobile app specially designed to further Nano Blockchain’s versatility while guaranteeing the security of the user’s digital assets. Though the community developed it, the wallet app has been subjected to numerous security audits sanctioned by the Nano Foundation that helped push it up the list of most reliable Nano wallets.

Natrium crypto wallet mobile app

Natrium wallet is a mobile crypto app developed by Appdito and introduced to the Nano community in August 2018. It is an open-sourced mobile app specially designed to further Nano Blockchain’s versatility while guaranteeing the security of the user’s digital assets. Though the community developed it, the wallet app has been subjected to numerous security audits sanctioned by the Nano Foundation that helped push it up the list of most reliable Nano wallets.

Natrium wallet is a mobile crypto app developed by Appdito and introduced to the Nano community in August 2018. It is an open-sourced mobile app specially designed to further Nano Blockchain’s versatility while guaranteeing the security of the user’s digital assets. Though the community developed it, the wallet app has been subjected to numerous security audits sanctioned by the Nano Foundation that helped push it up the list of most reliable Nano wallets.

On the Natrium wallet website, the crypto app is described as a “Fast, Robust, and Secure Nano Wallet.” But how true is this bold claim? What features make Natrium safe and robust, and how have they influenced its effectiveness? In this Natrium wallet review, we detail its key features and the security measures in place, gauge its ease of use, provide you with a step-by-step guide on how to use the wallet, and tell you if it is the safest Nano Wallet app.

Natrium wallet key features

Mobile wallet: Natrium is a versatile crypto mobile app available for Android and iOS-powered mobile devices. The app can be downloaded from the wallet’s official website, Google play store, or Apple’s app store.

Multi-wallet: Natrium is a multi-account website implying that there is no limit to the number of wallet addresses you can host on the wallet.

Address book: To eliminate the often-costly errors arising from sending cryptos to the wrong address, Natrium has integrated an in-app address book. This allows you to save the wallet address and name of the wallets you interact with regularly.

Real-time wallet notifications: You can also activate the push wallet notification for the wallet, which pops up a notification on your phone or smartwatch’s screen every time you receive Nano coins into your wallet.

SPV protocol for transaction validation: Natrium is a light wallet that doesn’t require you to download a blockchain to your phone and synchronize it with the Nano Mainnet. Rather, it embraces the Simplified Payment Verification (SPV) protocol in confirming and validating new transactions.

Security features

Passcode + Biometrics: When creating a new user account for your Natrium wallet, you will be requested to set a unique and multi-character passphrase. But you also have the option of activating the app’s biometric security feature that allows you to log in to your Natrium wallet using a Fingerprint or Face ID.

Open sourced: Natrium wallet app isn’t just community-led but also built on an open-sourced blockchain technology. Wallet users and blockchain experts are advised to view the code, audit, and come up with recommendations and are also encouraged to fork it and create more improved versions of the Nano Wallet.

Non-custodial: Natrium wallet is privacy-oriented. It not only limits the amount of client data it collects but also ensures that none of your sensitive information is stored on their servers. Rather, all your private data, including passwords and private keys, are encrypted and stored within your device.

Hierarchically deterministic:  Natrium wallet is also hierarchically deterministic, implying that it will auto-generate a new wallet address every time you transact online. This limits the number of individuals who know your real wallet address and seeks to throw crypto trackers off and mask your crypto activity.

Recovery seed: Natrium has also simplified the process of backing up your wallet by presenting you with a 12-phrase recovery seed that you will need to restore lost wallets and recover lost private keys.

Third-party security audit: In furtherance of Natrium’s transparency guarantee, the wallet isn’t just open-sourced but is also subjected to regular security audits by professional blockchain security audit companies like Red4Sec.

How to set and activate the Natrium Mobile wallet

Step 1: Download and install the Natrium wallet app version that is compatible with your device

Step 2: Once installed, launch the app and select “Create a New Wallet” to start the activation process

Step 3: The wallet will now request you to choose the account’s username and create a password

Step 4: You will then be presented with random phrases that make up your wallet’s recovery seed. Write them down and keep them safe offline.

Step 5: Your wallet is now active and ready to use

How to add/receive crypto into your Natrium Mobile wallet

Step 1: Log in to your Natrium Nano wallet and on the user dashboard, click on the “Receive” tab

Step 2: This opens up the deposit window and reveals your public address and QR Code. Copy either of these and forward it to the party, sending you Nano coins

Step 3: Wait for the funds to reflect in your wallet.

How to send crypto from your Natrium Mobile wallet

Step 1: Log in to your Natrium Nano wallet and tap on the “Send” icon on the user dashboard

Step 2: If you have multiple wallets, select the address from whence you would like to send Nano cryptos

Step 3: On the transfer window, enter the recipient’s wallet address and the amount of Nano coins you wish to send

Step 4: Alternatively, select the recipient’s name from the in-app contacts section

Step 5: Check that the transaction details are correct and hit ‘Confirm.’

Natrium Mobile wallet ease of use

Natrium is a highly intuitive crypto wallet with a clean, easily navigable, and modern interface designed to appeal to both the highly experienced and beginner Nano coin traders. It is also easily customizable and allows you to change the icons’ wallet theme, size, and color.

The process of downloading the app and creating a user account is quite straightforward. So are the processes of sending and receiving Nano coins in and out of the wallet.

More importantly, Natrium is a multilingual crypto wallet app that comes available in over 20 international languages.

Natrium Mobile wallet supported currencies

Natrium is a Nano blockchain specific wallet and will, therefore, only host Nano Coins.

Natrium Mobile wallet cost and fees

Downloading the Natrium wallet, creating a user account, and storing coins therein is free.

The fact that the Nano Blockchain doesn’t charge a network fee to confirm or validate Nano transactions also means that you won’t be charged for sending or receiving cryptos into the wallet.

What are the pros and cons of using the Natrium Mobile wallet

Pros:

  • Natrium wallet doesn’t charge network fees for crypto transfers.
  • It is highly intuitive and features a simplistic and beginner-friendly user interface.
  • The use of the SPV protocol makes transaction processing relatively fast.
  • The wallet has embraced highly effective security and privacy measures, including biometrics and anonymous trading.
  • Natrium is highly transparent. It is open-sourced and subject to vetting by independent bitcoin security companies.

Cons:

  • The wallet doesn’t support the important two-factor authentication and multi-signature security measures.
  • Natrium wallet will only support Nano coins.
  • Their customer support team may be sluggish in responding to customer queries.

Comparing Natrium Mobile wallet with other Nano wallets

Natrium Mobile wallet vs. NanoVault web wallet

Natrium mobile and NanoVault are both Nano blockchain wallets that were not only developed by the Nano community members but also vetted and recommended by the Nano Foundation. They are both light and don’t require you to download the Nano blockchain to your wallet. Rather, they have embraced the ultrafast SPV transaction validation protocol.

However, while Natrium is a mobile app, NanoVault is a web wallet. And though they only host the Nano altcoin and record almost similar transaction processing speeds, Natrium can be said to host more operational features, especially the support for an address book and its highly customizable user interface.

Verdict: Is Natrium Mobile wallet safe?

Well, the mobile crypto app has put in place several highly effective security and privacy safeguards around the crypto app. We were especially impressed by their integration of the Biometrics security feature and hierarchically deterministic wallets, as well as their support for anonymous trading. But the fact that it is online-based means that it is not immune to the constant threats (hacking and malicious malware) dogging hot wallets. 

Categories
Crypto Daily Topic

What You Need to Know About DigixDao 

Would you have thought that it was possible to own gold even if you’re not a millionaire?  That is now possible thanks to blockchain-enabled tokenization. 

Would you have thought that it was possible to own gold even if you’re not a millionaire?  That is now possible thanks to blockchain-enabled tokenization. 

Would you have thought that it was possible to own gold even if you’re not a millionaire?  That is now possible thanks to blockchain-enabled tokenization. 

DigixDAO is a blockchain project that wants to make this realization true for many people across the world. Launched in March 2019, DigixDAO has created a cryptocurrency backed by actual, physical gold – which users can invest in and sell off for profit at any time. The Digix team says that it creates “a world where 99.99% fine gold bars are made divisible, transferable and redeemable.”

Why should you care about DigixDAO? Well, for one, you can own actual gold, something that’s long been a preserve for the minority few. Second, you can diversify your crypto portfolio, and third, it provides much-needed stability in the crypto space. 

With that, let’s look into the Digix platform and how exactly it tokenizes gold. We’ll also explore the platform’s dual-token system and the role of each token.

Features of DigixDAO

Digix utilizes Proof of Asset (PoA), which works this way: 

Users record the audit trail of an asset on the Ethereum blockchain to generate POA Asst Cards. Digix says, “the asset cards are certified using sequential digital signatures from the entities in the chain of custody, mainly Vendor,  Custodian, and Auditor, which are further validated with proof of purchase and depository receipts uploaded onto IPFS (IterPlanetary File System) for permanent record.” 

The Vendor in question is ValueMax Singapore, a mainboard-listed company that sells certified gold bars and products like luxury jewelry and timepieces. The auditor in question is a multinational auditing group Bureau Veritas Inspectorate, which checks the gold’s quality and quantity. And the custodian is MalcaAmit, a state of the art vault located in Le Freeport, Singapore. 

A Proof of Asset Cards contains the following info: 

  • Timestamp showing the date when the card was created
  • Stock keeping unit of the gold bar
  • The serial number of bar
  • Digital signatures of the vendor, custodian, and auditor
  • Receipt of purchase
  • Documentation of audit trail
  • Depository receipt
  • Storage fees due 

Digix’s DGX Tokens

DGX tokens tokenize gold in the network. One DGX token represents a gram of gold. Investors can redeem 100 DGX tokens for 100 grams of gold. DGX tokens are based on the Ethereum EIP20 protocol. DGX tokens are made to make gold accessible to the average person. Users can liquidate on their gold holdings at any time. 

Digix’s DGD Tokens 

The DGD token is the other token of Digix. DGD token holders can claim rewards based on how much DGX tokens they’ve used as transaction fees. Again, token holders can vote on network proposals and get rewards. Digix says they can make “active managerial decisions to any proposals submitted to DigixDAO.”

Unlike DGX tokens, you can’t redeem DGD tokens for gold. 

Key Metrics of DGD

On Sep 29,2020, DGD traded at $68.66 with a market cap of $10,220,244 that placed it at #479 in the market. Its 24-hour volume is $69,49.29, while its circulating and total supply is 148,863. The token’s all-time high was $597.66 (Feb 28, 2018), while its all-time low was $4.10 (May 03, 2016). 

Where to Buy and Store DGD Tokens

DGD token is listed as a market pair of ETH, BTC, INR, WETH, and USDT at Huobi Global, Bitrue, Livecoin, HitBTC, Bitbns, Coinbene, IDEX, Radar Relay, and Gate.io.

The token can be stored in any Ethereum-compatible wallet such as imToken, MyEtherWallet, Parity, Guarda Wallet, Trust Wallet, Trezor, and Ledger Nano. 

Final Thoughts

Digix manages to come with an original concept: one to make gold “cool again” with the help of a decentralized, secure blockchain. Anyone anywhere can now own the precious metals and liquidate their holdings at their own desired time. Perhaps this sets a new precedent for the precious metal industry and indeed the crypto and blockchain world. 

Categories
Forex Daily Topic Forex Price Action

Determinin Risk/Reward using Fibonacci Levels

In today’s lesson, we are going to demonstrate an example of a daily-H4 chart combination trading. We also find out how the price reacts to Fibonacci retracement levels and how Fibonacci levels may help us determine risk-reward. Let us start with the daily chart.

In today’s lesson, we are going to demonstrate an example of a daily-H4 chart combination trading. We also find out how the price reacts to Fibonacci retracement levels and how Fibonacci levels may help us determine risk-reward. Let us start with the daily chart.

In today’s lesson, we are going to demonstrate an example of a daily-H4 chart combination trading. We also find out how the price reacts to Fibonacci retracement levels and how Fibonacci levels may help us determine risk-reward. Let us start with the daily chart.

This is the daily chart. The chart shows that the price heads towards the North with good bearish momentum and crosses a long way. The last candle comes out as a spinning top with a bullish body. It is a bullish reversal candle, but not a strong one. Let us flip over to the H4 chart and see how it looks.

The chart shows that it produces a morning star. It is a strong bullish reversal pattern. The last candle comes out as a bullish inside bar. The buyers may wait for the price to find its support and produce a bullish reversal candle to go long on the chart.

The price heads towards the South to have a bearish correction. The last candle comes out as a Doji candle. It seems that the price may have found its support. It may not take long to produce a bullish reversal candle.

As expected, the chart produces a bullish engulfing candle closing well above the last swing low. Traders love to have a signal candle like this to trigger an entry. It usually attracts more traders to trade and brings more liquidity. However, here is an equation that we must remember. When the price makes a correction, it is good for the traders to have an engulfing candle as a signal candle closing within the last swing low. It offers the price to travel more space towards the trend. However, when the price consolidates, it must make a breakout at the last support/resistance, though. Let us find out how the price moves after that bullish engulfing candle.

The price heads towards the North with a sluggish pace. Moreover, the price gets caught within two horizontal levels for several candles. It seems that the price is struggling to go towards the North further. Let us draw Fibonacci levels and try to find out the reason behind it.

The chart produces the signal candle at the 61.8% level, which is fantastic. Usually, the price goes towards the level of 161.8% if it trends from the 61.8% level. Over here, the candle closes at 123.6% level, which means the price does not have enough space travel. This is why the price moves towards the North sluggishly. Fibonacci levels help us determine where to set stop loss and take profit. It also helps us determine the risk-reward, which we must not forget.

Categories
Cryptocurrencies

Argent wallet Review: Is It The Safest Mobile Wallet App Yet?

Argent is a smart contract wallet developed by Gerald, Julien, and Itamar of Argent Labs and launched in 2018. It is a revolutionary crypto wallet that embraces futuristic security and privacy measures in keeping your private keys safe. For instance, instead of the recovery seed synonymous with virtually every wallet’s security, the wallet introduces “Argent Guardians.” 

Argent crypto wallet app

Argent is a smart contract wallet developed by Gerald, Julien, and Itamar of Argent Labs and launched in 2018. It is a revolutionary crypto wallet that embraces futuristic security and privacy measures in keeping your private keys safe. For instance, instead of the recovery seed synonymous with virtually every wallet’s security, the wallet introduces “Argent Guardians.” 

Argent is a smart contract wallet developed by Gerald, Julien, and Itamar of Argent Labs and launched in 2018. It is a revolutionary crypto wallet that embraces futuristic security and privacy measures in keeping your private keys safe. For instance, instead of the recovery seed synonymous with virtually every wallet’s security, the wallet introduces “Argent Guardians.” 

Moreover, while your average crypto wallet will only help you store, secure, and manage your altcoins, Argent does all these while allowing you to earn interest and borrow against your digital assets. It is also a Defi-centric wallet that features virtually all the most popular decentralized finance apps.

On the official Argent wallet website, Argent is described as the simplest and most secure crypto vault as well as the “Future of Money.” But how safe and convenient is this crypto wallet app? We answer these questions and tell you everything you need to know about the Argent wallet in this review.

Argent wallet key features

No transaction fees: Argent is the lone Ethereum based crypto wallet app that pays the transaction fee (GAS) on behalf of its clients. In effect, you won’t be charged a transaction fee when using the Argent wallet – regardless of the amounts involved.

PoolTogether dApp: Argent features the PoolTogether Defi app, a “No-loss savings game” that allows individuals to pool together and invest their Dai Coins and let the pool earn interest, with one person getting a chance to win the accumulated interest every week. The platform is powered by smart contracts to eliminate bias.

MakerDao: Argent features yet another Defi app – MakerDao. This is a smart-contract-powered service hosted on the Decentralized network that makes it possible for anyone to lend and earn interest on their digital assets or borrow, invest, and pay back with interest.

Compound Finance: Compound Finance is yet another Defi app that lets you lock your funds with the Compound Finance protocol that, in turn, lends these funds to dApp developers and other crypto investors within the Ethereum network while earning you regular interest.

Inbuilt exchange: You don’t have to leave the Argent wallet to buy, sell, or exchange your digital assets. The wallet features an in-built proprietary exchange and integrates the Kyber Network that has a crypto exchange where you can buy, sell, or exchange crypto for free.

Purchase crypto with fiat: Argent wallet makes it possible for anyone to buy crypto via either credit/debit cards or direct bank transfers.

Human readable addresses: Most crypto wallets (hardware, software, and app) use the traditional hexadecimal (a mix of letters, characters, and numbers) wallet address system. Argent, however, allows you to create a human-readable wallet address (forinstance.argent.xyz) that goes a long way in eliminating the costly errors of getting the wallet address wrong.

Argent security features

Password + Biometrics: Argent wallet is secured with a password that you get to set when creating a user account for your new wallet. You also have the option of activating the biometric security features like fingerprint and Face ID for compatible devices.

Argent guardians: In the place of recovery seeds, the Argent wallet has Argent Guardians. These may be people like close family members using Argent, a phone number or email address that you can use to activate two-factor activation, or other wallets (like Trezor or Ledger). Through smart contracts, you can give these people or devices limited power over your wallet, including powers to help recover your wallet should you forget the password or help you recover lost wallets and private keys.

Transaction limits: Argent wallet lets you set the daily/weekly/monthly crypto transaction limits. This indicates that even if a hacker was to gain access to your wallet, there is a limit to how much they can get away with.

Freeze crypto wallet: Should you lose control of your account or suspect that it has been hacked, you can use Argent Guardians to freeze your wallet.

Non-custodial: Argent wallet doesn’t store your private keys or any of your personal data in their servers. Rather, this information is encrypted and stored on your mobile device.

How to set and activate the Argent wallet

Step 1: Download and install the Argent crypto wallet Google Play Store or Apple App Store

Step 2: Launch the installed app and select “Create a new wallet.”

Step 3: Chose a unique username for your wallet.

Step 4: The wallet will ask for both your mobile number and email address. It will then send you a verification code via SMS and also send you the Activation link via email (both are time-sensitive)

Step 5: You will then receive an email stating whether your wallet has been created or if you have been added to the waitlist.

Step 6: If (or when) the wallet is activated, the app will display a message asking you to finish the wallet creation process

Step 7: Create a passcode to secure your wallet and set up the fingerprint login option (optional)

Step 8: Your Argent wallet is now active and ready to use

How to add/receive crypto into your Argent wallet

Step 1: Log in to your Argent wallet and click on the “Add Funds” tab

Step 2: The wallet deposit will present you with your wallet address and QR code

Step 3: Copy either and forward them to the party sending you altcoins.

Step 4: Alternatively, choose to buy coins from the integrated exchanges

Step 5: Follow the prompts to deposit fiat into the exchange and purchase your preferred crypto.

How to send crypto from your Argent wallet

Step 1: Log in to your Argent wallet and tap on the “Send” icon

Step 2: If you have multiple assets in your wallet, choose the wallet from which to send coins

Step 3: On the transfer window, enter the recipient’s wallet address and the amount of crypto you want to send

Step 4: Alternatively, select the recipient’s wallet address from your contacts tab

Argent wallet ease of use

Argent wallet is highly intuitive and embraces a minimalist design that only features a few buttons on the user interface. It also has smooth and lag-free navigation.

The wallet app is also multilingual and available in four languages. And all these make it appealing to both expert and novice traders.

Argent wallet supported currencies and countries.

Argent is a multicurrency but Ethereum-specific crypto wallet app that currently supports more than 70 cryptocurrencies and tokens. These include Ethereum, Ethereum Classic, all the ERC-20 tokens, and the non-fungible ERC-721 tokens.

Argent wallet cost and fees

Argent is a fee-less cryptocurrency, and you, therefore, will not be charged to download, send/receive crypto into your wallet, or to store these coins in there.

What are the pros and cons of using the Argent wallet:

Pros:

  • Argent wallet is truly free as they pay the GAS transaction fees on your behalf.
  • The wallet employs highly innovative and effective security measures.
  • You don’t have to worry about forgetting your recovery seed when you have Argent Guardians.
  • Argent integrates several Defi apps that let you invest and earn interest from your digital assets.
  • Transaction limits and the ability to freeze the wallet minimize the extent of damage a hacker can cause

Cons:

  • Argent is an Ethereum-only wallet.
  • Though built on the Ethereum network, it doesn’t give you access to most dApps or the block explorer.
  • The fee-free approach may not be sustainable in the long run.

Comparing Argent wallet with other Ethereum-based wallets

Argent wallet vs. MyEtherwallet

Argent and MyEtherwallet are Ethereum-specific wallets that will only support altcoins and cryptos built on the Ethereum blockchain network. However, they embrace different operational and security measures in that while Argent is free, MyEtherwallet charges transaction fees for outbound transactions. Similarly, while MyEtherwallet relies on recovery seed to backup your private keys, the Argent wallet introduces the Guardians. Further, Argent also hosts more cryptos and tokens, embraces more security features, and has an easier-to-use interface.

Verdict: Is the Argent wallet safe?

Well, the Argent wallet has put in place adequate security measures aimed at securing the wallet and limiting the amount of harm that a hacker can cause should they gain access to your account. But a recent security report about Argent Wallet described a highly severe vulnerability that could have allowed hackers to use a bug in Argent’s code and access accounts without Argent Guardians and empty their private keys. And while this vulnerability was discovered and patched early enough by crypto security experts, one can’t help but wonder why it went undiscovered by the Argent team for so long and how many other bugs and vulnerabilities are yet to be discovered.  

Categories
Forex Videos

What The Japanese PM Shinzo Abe’s Resignation Meant For Forex!

https://youtu.be/jIWj9zYuRxU

https://youtu.be/jIWj9zYuRxU

Japanese Prime Minister Shinzo Abe resigns where next for the Yen?

Thank you for joining this educational video. in this session, we will be looking at the impact of the Japanese yen now that long-standing prime minister Shinzo Abe has resigned.


If we look at this one-hour chart of the US dollar Japanese yen pair from Friday 28th of August, rumours started to enter the financial markets during the European session that prime minister Shinzo Abe was about to resign due to ill health. The currency pair declined as investors sought to buy Japanese yen. Typically, when uncertainty surrounds a country, such as an important announcement that the long service serving prime minister was about to resign, you might expect the currency to the devalue.
However, the Yen is also seen as a safe-haven currency due to the American economy’s continuing uncertainties because of the ongoing pandemic and upcoming presidential elections. A lack of any kind of stimulus package being agreed on between the democrats and the republicans did not help the US dollar, coupled with the fact that the day before the Fed’s chairman, Jerome Powell, change policy with regard to allowing inflation target to move higher than the 2% benchmark that it had worked to for many years, thus allowing the potential for low-interest rates to remain at record lows for years to come.

On the flip side, we have a fairly strong and stable Japanese economy, which Shinzo Abe will be attributed for, being one of the longest-standing prime ministers in Japanese history. He was liked and respected around the globe, and his tight policy-making has proved an asset or the Japanese economy. He managed to negotiate a trade deal with America, which was beneficial to both countries and is proving successful, but he also stood up to China with regard to what the Japanese saw, as is an infringement on Japanese businesses being able to work within China. Although he stood up to the Chinese government, he did so without any animosity or threats. Such is the high regard that he was held as a statesman for Japan.


If we take a look at this monthly chart of the pair going back to September 2017, we can see that it has not been averse to large swings from lows of 98.00 to highs of 119.00, but where the general trend in the last 12-months has been towards a firmer Japanese yen.
While the Japanese economy will be reeling from its prime minister’s loss, the markets have not been acting adversely, possibly due to the previously mentioned fundamental reasons.

Therefore, it is highly likely that we can expect little change in sentiment for the Japanese yen. The general trend in the pair is lower as investors look to safe-haven assets, such as the yen, and while the market is currently in volatile mode, the downward pressure on this pair will likely remain for the foreseeable future.

Categories
Crypto Videos

Ethereum Is Still Not Ready For DeFi! – What Does This Mean For Investors?

https://youtu.be/WqVKy_UnhIQ

https://youtu.be/WqVKy_UnhIQ

 

“Ethereum Still Not Ready For DeFi” – Critics Claim

As almost every single DeFi project flocked to Ethereum, experts warn that the network is not yet ready to support the frenzy that is DeFi.
Martin Froehler, a former hedge fund manager, mathematician, and founder of Austrian crypto trading platform Morpher, said that although Ethereum is surely the “best thing the blockchain industry can offer” to DeFi, its current network capabilities are still not enough:
“Ethereum can, at the moment, only handle about 15 transactions per second, and has a block time of 15 seconds, which is an eternity in finance. As people go into DeFi, they have to interact with Ethereum, meaning that everyone interacting with it needs Ether on their wallets. That is a huge barrier to entry, which may slow down mass adoption.”

Froehler considers Ethereum to be the most decentralized smart contract platform. However, because the network still has issues, many developers have had to look for solutions to counter them.  Froehler then added:
“There is cryptographic proof for everything happening on the sidechain on Ethereum, meaning that people are able to trade without actually needing Ether. They don’t pay any fees while enjoying a settlement time of one second, and being completely independent of the many congestions that the Ethereum network may cause.”

Many industry players feel like Ethereum did not anticipate the DeFi hype properly and that even with the much-discussed upcoming network upgrade, Ethereum 2.0, it will still not be ready to service DeFi and its appetites.

Ethereum 2.0 is implemented in order to improve performance, but its high gas prices may just scare off new users. Sergej Kunz, CEO of decentralized exchange 1inch, spoke about the issue and said that the Ethereum infrastructure currently lacks the capacity to host the DeFi environment:

“You will have to rethink everything. It’s true that you can migrate smart contracts to the code, but that’s not scalable. To be able to scale, you would have to create standards and bring new protocols that are based on the new sharded architecture, something like NEAR, which is similar to Ethereum 2.0.”

Mounir Benchemled, founder and CEO of ParaSwap, pointed out that the sheer complexity of explaining how a layer-2 works to end-users “and the risk of not being able to actually pay the funds immediately to these users” cause a lot of concern. Benchemled added that it is not practical for all DeFi projects to instantly swap to Ethereum 2.0:

“For it to work, all applications would almost be required to move towards one single platform. While major projects might have consensus, there are other projects who have their own agendas, and it might be hard for them. New bridges will have to be built to allow interoperability.” Despite all the challenges ahead for the Ethereum blockchain, everyone agreed that “DeFi is here to stay.”

Categories
Crypto Daily Topic

What’s Measurable Data Token All About? 

Living in the digital age means we leave digital footprints every time we log in to an application. This data is very lucrative to the companies behind these applications – it’s like the new oil, and yet the owners of that data do not benefit from it in any meaningful way. Additionally, they have almost no control over their data privacy.

Living in the digital age means we leave digital footprints every time we log in to an application. This data is very lucrative to the companies behind these applications – it’s like the new oil, and yet the owners of that data do not benefit from it in any meaningful way. Additionally, they have almost no control over their data privacy.

Living in the digital age means we leave digital footprints every time we log in to an application. This data is very lucrative to the companies behind these applications – it’s like the new oil, and yet the owners of that data do not benefit from it in any meaningful way. Additionally, they have almost no control over their data privacy.

What if data owners had more control over how their data is handled and earned from it? Blockchain can make this possible. The technology’s qualities of decentralization and transparency can help make this a reality. 

Launched in 2017, Measurable Data Token is a token designed to achieve this through a decentralized data exchange ecosystem. It connects data providers, users, and buyers, and ascribes value to data to make economic sense to owners. 

How MDT Works 

#1. Decentralized Data Trading Economy

Through MDT, the team wants to end the era of corporates trading user data without their consent. It wants to create a decentralized data ecosystem that is fair and beneficial to all parties, and it wants to do this by creating a new platform and assigning economic value to data. The MDT token is the unit of data exchange that will connect platform users. 

It will compensate data owners for sharing their anonymous data while offering data buyers and providers a more effective and transparent model. In the MDT ecosystem, data owners can finally reclaim the true value of their data.

On their part, buyers will have a better trading model in terms of security, transparency, and speed. Cryptographically secured smart contracts will eliminate the potential risk of fraud, as will a completely transparent process. Unlike a traditional data exchange model, where buyers are at risk of purchasing invalid data, they can participate in the validation process in MDT. The MDT platform is held together by MDT token – which is the most significant component of the ecosystem. 

#2. MDT Technology and Participants

The MDT platform relies on several technologies to accomplish its big picture. Below, we’ll take a look at the main pieces of technology. We’ll also see the participants of the ecosystem. 

  • Measurable Data SDK 

This is a free software development kit by the MDT team that users, including providers and developers, can use. The kit also includes a wallet address that users can leverage to store and track their rewards. 

  • Data Provider

This is an entity that obtains users’ anonymous data and uses rewards data owners (users) with MDT tokens.

  • User

These are users who share their data in the MDT ecosystem and receive rewards in the form of MDT tokens.

  • Data Buyer 

The entity buys the rights to the use of owners’ data. They could get this data either through accessing the database or by buying it from providers. At the moment, buyers do not get the ownership rights of such data. 

  • Measurable Data Point

This is a data point that results from every transaction. It has a denomination that ascribes value to it in the ecosystem. 

  • Measurable Platform

This is a decentralized data exchange (DEX) that facilitates transactions between data owners, providers, and buyers. It provides for secure and immutable transactions. Initially, those actions would be administered by the MDT platform. However, the network will, in the near future, switch to a purely smart contracts-based model.

#3. MyMDT App 

MyMDT app is a decentralized application (DApp) based on Ethereum through which users can get rewarded for sharing data on the platform. It’s the user-facing part of the ecosystem, and you can join the MDT ecosystem through it. The app currently supports three features: 

  • Allowing users to join the MDT ecosystem and share anonymous data so they can earn MDT tokens
  • Allocates rewards to users 
  • Allows users to earn rewards for completing certain tailor-made tasks for third-party applications

Community Strategy of MDT

The MDT team plans to pursue several strategies in the future to advance its growth. 

Current strategies include: 

  • Carrying out marketing campaigns on various social media platforms
  • Partnering with other industry players such as exchanges in joints campaign efforts including seminars
  • working together with prominent institutions such as Nanyang Technological University of Singapore to hold blockchain hackathons
  • Curating content for various video formats to increase awareness of data rewards
  • Updating community members weekly on the program’s development

Future strategies include the following: 

  • Introduce data reward apps in various data formats to sell the idea to the mainstream
  • Launch an ambassador campaign
  • Work with artificial intelligence companies to increase awareness on data reward responsibility in the public

The MDT Token

The Measurable Data Token (MDT), which has the same name as the platform, is based on the Ethereum blockchain and is used to monetize their own data 

Measurable Data Token was distributed in the following manner: 

  • Seed sale: 15%
  • Private sale: 35%
  • Equity investors: 10%
  • Team tokens: 10%
  • Advisors’ tokens: 1%
  • User growth pool: 15%

Key Metrics 

On Sep 29, 2020, MDT traded at $0.013749, with a market cap of $9,043,789, which placed it at #528. It has a 24-hour volume of $229,322, a circulating supply of 657,790,346, and a total supply of 1 billion. It has an all-time high of $0.858288 (Jan 10, 2018) and an all-time low of $0.001614 (Dec 17, 2018). 

Where to Buy and Store MDT 

There’s no shortage of where to purchase MDT tokens. The token is listed on several reputable exchanges, including Binance, DigiFinex, Gate.io, Poloniex, Bittrex, Uniswap, BKEX, Uniswap, and Bancor Network. You can find it listed against currencies such as BTC, ETH, WETH, TRX, BNB, and USDT. 

Options for storing MDT include Ledger, Trezor, KeepKey, MyEtherWallet, Coinomi, Exodus, and My Data Token Wallet. 

Final Thoughts

The MDT platform is among many blockchain-based platforms that seek to solve the problem of big and powerful companies profiting off user data while the users walk away with nothing. What sets it apart is its MyMDT app that allows users to get on board the platform and start trading data conveniently. The MDT team will need to keep innovating if it’s to go toe-to-toe with similar projects in the space.

Categories
Cryptocurrencies

NEON Wallet Review: Is It The Safest Neo Blockchain Wallet Yet?

NEON Wallet makes it to the list of the most popular wallets designed to store and facilitate your interaction with NEO coins and tokens built on the Neo blockchain. It’s an open-sourced desktop wallet app developed by the City of Zion team and introduced to the world in July 2017. And though it isn’t the official Neo wallet, its code has been reviewed, tested, and approved by the Neo Network developers.

NEON desktop wallet app

NEON Wallet makes it to the list of the most popular wallets designed to store and facilitate your interaction with NEO coins and tokens built on the Neo blockchain. It’s an open-sourced desktop wallet app developed by the City of Zion team and introduced to the world in July 2017. And though it isn’t the official Neo wallet, its code has been reviewed, tested, and approved by the Neo Network developers.

NEON Wallet makes it to the list of the most popular wallets designed to store and facilitate your interaction with NEO coins and tokens built on the Neo blockchain. It’s an open-sourced desktop wallet app developed by the City of Zion team and introduced to the world in July 2017. And though it isn’t the official Neo wallet, its code has been reviewed, tested, and approved by the Neo Network developers.

Neon Wallet is marketed as an intuitive, easy to use, and highly secure desktop wallet apps available today. But how true are these claims? What are the factors that make it intuitive and secure? More importantly, how does it compare to other Neo wallets? We answer these questions and tell you everything you need to know about NEON Wallet.

NEON Wallet key features

Cross-platform: Neon wallet is a cross-platform desktop crypto vault that is compatible with all the popular computer operating systems, including Windows, macOS, and Linux. Updated versions of this wallet are available on both the wallet website and GitHub.

Integrates hardware wallets: Neon wallet is compatible with the different types of Ledger hardware wallets. This provides a much-needed boost to not only the number of supported cryptos but also amplifies the security of your private keys.

Multi-coin support: While the Neon wallet is specific to the Neo-blockchain, it supports a host of different coins. These include Neo-blockchain’s native crypto, Neo Coin, GAS, and all the NEP5 tokens.

Lightweight node: Neon wallet is a lightweight, and this means that you don’t have to download the entire NEON blockchain. It, therefore, doesn’t eat into your computer space, speed, or battery life.

Security features

Password encryption: NEON Wallet, like most other desktop-based crypto wallets, is secured with a password, which not only protects the wallet but also acts as an encryption tool for the data therein.

Open source: The Neon wallet is also built on an open-sourced technology. Anyone, including Neon wallet users and Blockchain experts, can view, audit, and propose suggestions on how to best improve the crypto vault. You can view this code from either the NEON Wallet website or the GitHub repository.

Non-custodial: NEON Wallet is a light node desktop client that doesn’t hold your data or store your private keys within their servers. Instead, it gives you absolute control over your private keys by encrypting and saving them in your device.

Backup private keys and history: Neon wallet doesn’t provide its users with a recovery seed. However, they make it possible for you to export and import your decrypted private keys and save them offline in a USB drive or write them down on a piece of paper and store them offline.

How to set and activate the Neon wallet

Step 1: On the Neon wallet website or GitHub, download the updated desktop client that is compatible with your computers operating system

Step 2: Install and launch the wallet.

Step 3: On the startup page, you will be presented with a variety of options; click on the “Create a New Wallet” tab

Step 4: You will now be required to set and verify this password (this protects and encrypts your password)

Step 5: Click on the “Generate Keys” icon to generate an address for your wallet.

Step 6: The wallet will now display the passphrase, public address, private key, and encrypted key. Save this information on your computer or print it and save the copy offline.

Step 7: Hit the‘ Back’ icon to get back to the wallet homepage where you can log in using the saved credentials

Step 8: Your wallet is now active and ready to use

How to add/receive crypto into your Neon wallet

Step1: Login to your Neon wallet

Step 2: Copy the wallet’s public address using the copy clipboard option.

Step 3: Use the copied address to withdraw funds from an exchange or forward it to the party sending you cryptocurrencies

Step 4: Wait for the coins/tokens to reflect on your wallet.

How to send crypto from your Neon wallet

Step 1: Log in to your desktop wallet and click ‘send.’

Step 2: On the ‘Where to send the asset’ section of the transaction details page, enter the recipient’s Neo wallet address and in the amount section, enter the amount of NEO coins you intend to send.

Step 3: Confirm the correctness of these transaction details and hit ‘Send.’

Neon Wallet ease of use

Neon Wallet has a pretty straightforward onboarding process. We also found the wallet to be highly intuitive and beginner-friendly with the send and buy commands strategically placed on the user dashboard. Most of the wallet’s recent upgrades have also been directed towards improving its functionality, as indicated on Neon Wallet’s GitHub page.

For instance, recent updates have ensured that the wallet supports offline signing and authorization of transactions. Additionally, the wallet developers have also introduced multi-lingual functionality to the desktop client and made it available in over ten international languages.

Neon Wallet supported currencies and countries

Neon Wallet is Neo-specific implying that it will only support the Neo coins and any other tokens built on the Neon blockchain.

The supported cryptocurrencies currently include GAS tokens and all NEP5 tokens.

Neon wallet cost and fees

Downloading and installing Neon Wallet or creating a user account is free. You also won’t be charged for storing Neo coins and supported tokens on the wallet.

You will, however, be charged a small transaction fee every time you initiate an outbound transfer. How much you pay in GAS fees is largely dependent on such factors like the number of coins you wish to send and the type of cryptocurrency.

In addition to the transaction fee charged by the Neo blockchain, you might also have to incur additional charges imposed by crypto exchanges.

Note that Neon Wallet will only process whole numbers. Transaction charges will be deducted from the amounts being transferred. For instance, if you wish to send crypto from the Bittrex exchange that charges a $0.1 fee for Neo transactions, you are encouraged only to withdraw a whole number plus the fee. For example, withdraw $28.1 and not $28.5 as the extra $0.4 may be lost.

What are the pros and cons of using the Neon wallet?

Pros:

  • Neon Wallet is highly versatile and compatible with multiple operating systems.
  • The wallet has put in place solid security measures.
  • It is a light wallet that doesn’t require you to download the entire blockchain.
  • The wallet gives you total control of your wallets.
  • The wallet is highly intuitive and has a beginner-friendly user interface.

Cons:

  • It doesn’t support the two-factor functionality.
  • One may consider the number of coins and tokens supported by NEON wallet limited.
  • Neon Wallet stores your private keys in your computer, and this requires that you first invest in quality antivirus that may be costly.
  • One may consider the Neon Wallet’s onboarding process too complicated.

Comparing Neon Wallet with other Neo blockchain wallets

Neon Wallet vs. Neo GUI

Neon Wallet and Neo GUI are both Neo-specific, implying that they will only support Neo coins. Both wallets are also open-sourced, and they have been vetted and approved by the Neon Blockchain development team.

While Neon Wallet is a light node desktop wallet, Neo GUI is a full-stack desktop client. You will need to download the Neo Blockchain to your wallet and synchronize it with the Neo Network main-net if you wish to use Neo GUI. Additionally, the Neon Wallet connects to the Neo Blockchain remotely via nodes, while Neo GUI gives you direct access to the Neo Blockchain user interface.

Verdict: Is Neon wallet safe?

Well, we believe that while Neon wallet has put in place several security measures aimed at protecting your private keys, it has also ignored some key features that would have made the wallet safer. For instance, it doesn’t support two-factor functionality or multi-signature signing. The wallet address generation process is also not hierarchically deterministic. All these, plus the fact that it is an online-based wallet and thus exposed to threats inherent to hot wallets, pierce its security veil. Its ease of use and inexpensive transaction costs nevertheless make it ideal for active smallholder traders. 

Categories
Crypto Daily Topic

Introducing the Standard Tokenization Protocol (STP)

Security issuance in the traditional world is faced with so many challenges. And many of these challenges stem from the centralized nature of the system – from costly intermediaries to inaccurate records to fraud-prone processes.

Security issuance in the traditional world is faced with so many challenges. And many of these challenges stem from the centralized nature of the system – from costly intermediaries to inaccurate records to fraud-prone processes.

Security issuance in the traditional world is faced with so many challenges. And many of these challenges stem from the centralized nature of the system – from costly intermediaries to inaccurate records to fraud-prone processes.

Blockchain technology provides an opportunity for the industry to rectify these shortcomings. It facilitates the decentralized and peer-to-peer exchange of assets as it does trustless and fraud-free transactions. 

The Standard Tokenization Protocol is a blockchain effort that wants to make this possible. And it has the bonus of making sure these assets are legally compliant, eliminating any potential friction with authorities. 

How does it achieve that? This article is an attempt to answering that question. 

Breaking Down STP

The Standard Tokenization Protocol is a blockchain effort aimed at cross-chain assets tokenization. It wants to differentiate itself from similar protocols by supporting assets in a way that makes them compliant with various jurisdictions. The end goal for STP is to popularize the knowledge and usage of digital assets around the world.

The STP whitepaper describes itself as “a decentralized platform for digital asset issuance powered by the STP token, a new smart contract protocol framework for compliance offerings.” It also states that it aims to “enable the movement of digital assets in a globally compliant manner.” 

STP wants to address the issues of traditional security-issuing platforms. 

The Problems with Traditional Options

  • Security issuance in the traditional system involves intermediaries who add to the bloat and expenses of the process
  • Often, there’s a limit on the scale of participants that can be involved in security issuance and trading at any time, in an attempt to minimize the manual process 
  • The restrictions lead to the securities being less liquid in the market

Benefits of Digital Assets

#1. Digital assets are programmable

Blockchain enables programmability for digital assets. Blockchain-enabled smart contracts can automatically move value in a peer-to-peer manner from one party to another when certain thresholds are met. This massively reduces costs.

#2. Fractional ownership

Fractional ownership enables investors to purchase part of traditionally valuable assets such as rare art and antique cars, and even assets that were previously a preserve of the wealthy such as real estate. This enables such assets to be liquid as opposed to if the process involved looking for one single buyer. 

#3. Increased liquidity

Liquidity is how fast a product is sold once it’s listed on the market. It’s the opposite of illiquidity, which is when a product takes too long to find an exit position once it’s listed. Fractionalization of assets increases liquidity since it increases the number of buyers interested in purchasing a product. 

#4. Peer-to-peer transactions 

At its core, decentralization stands for the transfer of assets between parties without the involvement of overseeing authorities or intermediaries. The STP protocol ensures the peer-to-peer transfer of assets executed via smart contracts. 

#5. Automated compliance

Traditional compliance procedures involve lengthy Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to ensure trust. On the other hand, blockchain-powered transactions are inherently transparent, making them trustless and legally compliant. 

The STP Standard 

The STP Standard is a protocol that oversees the generation, issuance, and transfer of tokenized assets. The protocol has a Compliance Validator that checks whether token issuance meets all the requirements -whether it’s accreditation, AML, and so on. There’s a validator committee whose work is to ensure this compliance is met. The STP network enables assets to move across geographical borders in a compliant manner. 

Use Cases of the STP Protocol

The STP standard can be applied to several use cases across different industries. Let’s take a look at three of them: 

#.1. Compliant asset tokenization 

Asset owners from anywhere can use the STP protocol to tokenize their assets on the blockchain, increasing their liquidity. 

#2. Mobile platform 

Various users, such as retail investors, can access the STP platform conveniently via their mobile app. Not only will they be able to access wealth management tools, but they can also find projects to invest in, and if they’re the owners of a project, they can find the right audience in the platform. 

#3. Blockchain-based crowdfunding

With the native cryptocurrency, STP, investors will be able to access new financial tools such as blockchain-based crowdfunding via smart contracts. Such onchain crowdfunding is safer, more secure, and more transparent than traditional crowdfunding. 

STP Protocol’s Community Growth Strategies

The STP team plans to implement several strategies in the near future in a bid to build a bigger community. These strategies are as follows: 

  • Team up with various industry players so as to expand its ecosystem
  • Hold airdrops and similar marketing campaigns to build community engagement
  • Engage with the community on various social media platforms
  • Keep the community updated on quarterly initiatives
  • Launch Ambassador Programs to promote the idea of decentralization everywhere

The STP Token

The native cryptocurrency of the STP network is known as STPT. The token will serve several crucial roles in the network, including the following: 

  • Enable users to fractionalize assets or features of those assets
  • As ‘gas’ for powering verification processes and transactions
  • As staking so as to take part in the proof of stake consensus mechanism
  • As a governance mechanism through which to contribute to major decisions of the network
  • As a reward for good behavior 

STP’s token distribution was as follows:

  • Bittrex IEO token sale – 3.75%
  • First private sale – 25%
  • Second private sale – 5%
  • Team tokens – 18.75%
  • Token treasury tokens – 7.5%
  • Token reserve tokens – 40%

Key Metrics of STP Token

If you’re interested in buying the STP token, then you need to know its current standing in the market. As of Sep 22, the token is trading at $0.019297 while ranking at #396. It has a market cap of $15,793,071, with a 24-hour volume of $2,738,104, a circulating supply of 818,409,893, and a total supply of 1,942,420,283. The token’s all-time high was $0.094944 (June 27, 2019), while its all-time low was $0.005800 (Sep 30, 2019). 

Where to Buy STP Tokens

You can purchase STP tokens at any of several crypto exchanges, including Coinone Upbit, Coinone, VCC Exchange, Bithumb Global, BitMax, Huobi Global, Bittrex Poloniex, Bitsonic, Gate.io, and CoinDCX. 

Closing Thoughts

STP is leading from the front to set a new standard for assets issuance. Issuers no longer have to deal with the burden of complying with regulations. All in all, users can expect a more accessible, inclusive, and efficient token issuance platform. 

Categories
Forex Assets

Costs Involved While Trading The JPY/LKR Forex Exotic Pair

Introduction

Introduction

Introduction

JPYLKR is a forex exotic currency pair, where JPY is Japan’s currency, and LKR is the currency of Sri Lanka. In this currency pair, JPY is the first currency, and the LKR is the second currency. The JPYLKR shows how much LKR is needed to have one JPY. It is quoted as 1 JPY per X LKR. For example, if the value of this currency pair is at 1.7686, then almost 1.7686 LKR is required to purchase one JPY.

JPYLKR Specification

Spread

The spread comes from the difference between the Ask and Bid price that a broker take as a charge. This value is set by the broker. However, it varies on the type of execution model used for executing the trades. Below are the ECN and STP values of JPY/LKR forex exotic pair.

Spread on ECN: 19 pips | Spread on STP: 24 pips

Fees

Every broker takes fees from trading, which is similar to the stock market. However, there is no fee on STP accounts, but a few pips on ECN accounts.

Slippage

Sometimes the entry price and execution price does not match, which is known as Slippage. The reason for slippage is the market volatility and the broker’s execution speed.

Trading Range in JPY/LKR

Procedure to assess Pip Ranges

  1. Add the ATR indicator to your chart
  2. Set the period to 1
  3. Add a 200-period SMA to this indicator
  4. Shrink the chart so you can assess a large time period
  5. Select your desired timeframe
  6. Measure the floor level and set this value as the min
  7. Measure the level of the 200-period SMA and set this as the average
  8. Measure the peak levels and set this as Max.

JPYLKR Cost as a Percent of the Trading Range

With the volatility values from the above table, we can determine the chance of cost with volatility changes. We have got the ratio between total cost and volatility and converted into percentages.

ECN Model Account 

Spread = 19 | Slippage = 5 | Trading fee = 8

Total cost = Spread + Slippage + Trading Fee

= 19 + 5 + 8

Total cost = 32

STP Model Account

Spread = 24 | Slippage = 3 | Trading fee = 0

Total cost = Spread + Slippage + Trading Fee

= 19 + 5 + 0

Total cost = 27 

The Ideal way to trade the JPYLKR

The JPYLKR has enough volatility and liquidity. Hence, trading in this currency pair is straightforward and profitable. The above table’s percentage values are within 300%, which is an indication of stable volatility. Therefore, the costs are low irrespective of the timeframe and volatility you trade.

Digging it a little deeper, there is an inverse relationship between the cost and volatility. In a lower timeframe, the volatility is higher, and the cost is lower. However, in a higher timeframe, the volatility is lower, but the cost is higher. In this situation, traders should focus on trading when the volatility is on the average value. Therefore, it will be cost-efficient for all traders.

Furthermore, traders can quickly reduce costs by placing ‘limit’ and ‘stop’ orders. Because by using limit orders, the Slippage can be totally avoided, and the total costs get reduced. In our example, the total cost will be reduced by five pips, as shown below.

Using Limit Orders

Spread = 19 | Slippage = 0 | Trading fee = 0

Total cost = Spread + Slippage + Trading Fee

= 19 + 0 + 0

Total cost = 19

Categories
Forex Price Action

Do Not Be Biased, Take Decisions According to the Chart

In today’s lesson, we are going to demonstrate an example of a chart that makes a good bullish move but ends up having a rejection at a double top resistance. The price then shows the potential to make a bullish breakout. However, it has another rejection around the last week’s high and makes a bearish breakout. It looks good for the sellers at the time. We find out what happens afterward.

In today’s lesson, we are going to demonstrate an example of a chart that makes a good bullish move but ends up having a rejection at a double top resistance. The price then shows the potential to make a bullish breakout. However, it has another rejection around the last week’s high and makes a bearish breakout. It looks good for the sellers at the time. We find out what happens afterward.

In today’s lesson, we are going to demonstrate an example of a chart that makes a good bullish move but ends up having a rejection at a double top resistance. The price then shows the potential to make a bullish breakout. However, it has another rejection around the last week’s high and makes a bearish breakout. It looks good for the sellers at the time. We find out what happens afterward.

This is the H4 chart. The price makes a long bullish move. It ranges for a while and then continues its bullish journey again. Look at the last candle on the chart. It comes out as a bearish inside bar. Do not miss the point that the candle is produced right at the resistance, where the price has had a rejection.

The chart produces a bullish candle to start the next week. It then ranges for a while and produces two bullish candles. It seems that the price may head towards the North and makes a bullish breakout at the last weekly high.

It does not. It rather finds its resistance around the same level. Moreover, it produces a bearish engulfing candle. To be more precise, the chart produces an evening star. It is a strong bearish reversal candle. Let us wait and see what the price does next.

The chart produces a long bearish candle breaching the last swing low. The breakout is significant since the price trends from the last weekly low. The sellers may keep their eyes in the pair to go short. Before going short on this chart, the sellers shall wait for the price to make a bullish retracement since the price is within the last weekly range. Keep that in mind that the price is to make a bullish correction to offer a short entry.

The price does not make a bullish correction. It rather consolidates and produces a bearish reversal candle. Since the price is within the last weekly range, so it is not a short signal.

Here it goes. The price gets choppy. This chart becomes a risky chart to trade. Thus, traders might as well skip eyeing on the chart to trade at. At first, it looks good for the buyers. Then, it shows potential for the Bear to dominate since the price has several rejections at the same level. However, it ends up being an extremely choppy chart.  Thus, do not be biased with your initial assumption. Wait for the breakout, confirmation, and then trade.

Categories
Forex Videos

The Forex Market reaction to Fed Powell speech & What It Means Going Forward!

https://youtu.be/Mw5D-46-g-Q

https://youtu.be/Mw5D-46-g-Q

Market reaction to Fed Powell speech 27 August 2020: The new framework

Thank you for joining this forex academy educational video. In this session, we will look at the extreme market volatility after federal reserve chairman Jerome Powell’s speech at Jackson Hole on the 27th of August.

The United States dollar has remained on the back foot this week with the DXY punching through 93.00. There was a lot of expectation for the US data on Thursday the 27th, especially the 2ND quarter gross domestic product, which came in slightly better than expected and also the initial jobless claims, which again was very slightly better than expected.

However, while that data had a fairly muted effect, keeping the euro US dollar pair just above point 1.1800. It was fed Powell’s speech on monetary policy, which really caused volatility in the marketplace, causing the pair to spike to a high of 1.1900 and a low 1.1759 while the market tried to digest the new policy and how it might affect the markets in general.
Whenever we get spikes and reversals after a policy shift from a major Western government, especially the USA, it is largely because analysts and economists are fairly split on whether or not the new policy will help or hinder the United States economy, and whether or not it is good or bad for investors.

The policy centers around the feds benchmark 2% inflation target and where it says it is now in a position for that to be over-shot to slightly above on occasions. This new policy, to tolerate inflation above 2%, is largely seen by the markets that the Fed will be holding interest rates lower for longer, possibly even years. This, of course, is not attractive for people who want to hold United States dollars. Although interest rates have been low for some time, to assist the United States economy rebound from the catastrophic effects of the coronavirus, the fact that we may see low interests rates in the United States for many years to come is not attractive to Dollar investors, and this is why we are seeing almost pandemonium in the currency markets. Most of this pertains to the US dollar.

So, what can we expect in the currency markets? Posted speech, the Asian session continued the US dollar sell-off, where great volatility has been seen in the market since Powell’s speech. The DXY index has been taking a major beating, and no end looks to be in sight. Therefore, we suggest traders’ limits risk by keeping stop losses tight and lowering leverage until market volatility decreases

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Forex Videos

Forex Fundamental Analysis for Novices – US Construction spending!

 

 

 

Fundamental Analysis for Novices US Construction spending

Thank you for joining this fundamental analysis for novices’ educational video. In this session, we will be looking at construction spending data releases and, in particular, within the United States.


If this is the first time you have viewed one of our fundamental analysis videos for novices, please make sure you search for the many other videos in this series which will help you understand the importance of such data releases when they hit the market and which are usually subject to an embargo.
You should refer to your economic calendar every single day and make sure you plot your trades around these risk events.

The most important sections of an economic calendar of the time of day and date of the release the type of event. For example, here we can see that the first one on the list is the right move house price index month on month for August for Great Britain, which was due for release at 00:01 on Monday, August 17th, where the impact was low.

Most economic calendars will provide you with the likely volatility impact of such news releases, and these will typically be released as low, medium, or high impact. Here we can see that the strength of the impact is measured by a bar where low-impact is a third of the bar coloured in orange, a medium impact such as the EURO group meeting at 1:00 takes up a third of the bar in orange, and a high impact bar which we can see at 12:50 in the morning, where the Japanese gross domestic product was considered to be a high impact and where the bar was completely coloured in red.

Economic calendars will also show you the previous data, which could be weekly, monthly, quarterly, or annually, and they will provide you with a general consensus as compiled by market experts and economists, and of course, the actual release section will be populated shortly after the embargo.

Here we can see a recent data release of us construction spending, which came out on Monday, August 3rd, and was simultaneously released at 3 p.m. BST with other important United States data including ISM manufacturing employment and manufacturing orders and prices.

While the market will look at all of this information simultaneously, some of this has been covered in previous videos, which we would ask you to take a look at. Still, in this video, we will only be focusing on the construction spending component, which was month-on-month for June, where we can see here came in at – 0.7%.

The information is released by the United States census bureau and is a measurement of the total amount of spending in the United States for various construction types. Because it includes a residential component, it is useful for predicting new home sales and mortgages. A high reading is seen as positive for the United States dollar while a low reading he seen as negative or perish for the United States dollar.

While the impact indicator considers this to be of low importance, when taken into to context with the other data being released simultaneously, traders will need to take a holistic view, especially in the current economic climate where the pandemic is still in the grips of the United States at the time of writing this article and where even low impact data can cause shock waves and market jitters. In which place, it is better to be prepared for this and wait for the market to react to the news before spotting trends and trying to get on them.

Categories
Forex Course Forex Daily Topic

150. The Easiest Way To Measure Market Volatility

Introduction

Introduction

Introduction

Measuring volatility enables traders to accurately identifying the significant trading opportunities in the currency pairs. An increase in the volatility of a currency pair occurs due to any of the major changes in the economy of that country. Market volatility measures the overall price fluctuations over a specific period, and this information is used to identify the potential breakouts.

In the Forex market, the higher the volatility, the riskier is the currency pair to trade. A higher volatility means that the asset value can be spread out over a larger range of values. A lower volatility means that an asset does not fluctuate dramatically and tends to be more steady. A few indicators help us in measuring the volatility of the currency. Using these indicators will show us the accurate representation of the market’s volatility when looking for trading opportunities.

Bollinger Bands

We have discussed a lot about Bollinger Bands in our previous course lessons. This indicator is specially designed to measure the volatility of an asset. In this case, any currency pair in the Forex market. This indicator consists of two lines (bands) plotted above and below the middle line, a moving average. The volatility representation is based on the standard deviation, which changes as an asset’s volatility increases and decreases. Both these bands contract and expand according to market volatility. When the bands’ contract, it tells us that the volatility is low, and when the bands widen, it represents an increase in volatility.

Moving Average

Moving Average is the most common indicator used by traders across the globe. It measures the average amount of market movement over a specific period. If we set the moving average to 30 periods, it shows us the last 30 days’ average movement. In short, any Moving average tells us the average price movement over a specific period. If the MA line is above the actual price, that implies the market is in a downtrend and vice versa.

Average True Range (ATR)

The ATR (Average True Range) is another reliable indicator used to measure market volatility. This indicator takes the currency price range, which is the distance between the high and low in the time frame, and then plots that measurement as a moving average.

If we set the ATR to 40 range, it will tell us the average trading range of the last 40 days. The lower the ATR reading means, the volatility is falling, and we can expect fewer trades. On the other hand, the higher the volatility means the ATR reading is rising. It is an indication that the volatility is on the rise, and by using any directional indicator, we can gauge the potential trading opportunities.

These are the three best tools you need in your arsenal to measure the market’s volatility accurately. Make sure to take the below quiz before you go. Cheers!

[wp_quiz id=”92111″]
Categories
Cryptocurrencies

NEO GUI wallet Review: How Safe Is This Full-Stack Desktop Client?

NEO GUI is the Neo blockchain’s official desktop client and was developed by the Neo network developers. It is a full-stack client, implying that you will need to download the Neo blockchain into your computer. It works by synchronizing the desktop client functions with those of the Neo MainNet in real-time. Unlike desktop apps and light node desktop clients connected to the blockchain node via remote nodes, NEO GUI connects to the Neo network’s graphical user interface directly.

Best NEO GUI Wallet

NEO GUI is the Neo blockchain’s official desktop client and was developed by the Neo network developers. It is a full-stack client, implying that you will need to download the Neo blockchain into your computer. It works by synchronizing the desktop client functions with those of the Neo MainNet in real-time. Unlike desktop apps and light node desktop clients connected to the blockchain node via remote nodes, NEO GUI connects to the Neo network’s graphical user interface directly.

NEO GUI is the Neo blockchain’s official desktop client and was developed by the Neo network developers. It is a full-stack client, implying that you will need to download the Neo blockchain into your computer. It works by synchronizing the desktop client functions with those of the Neo MainNet in real-time. Unlike desktop apps and light node desktop clients connected to the blockchain node via remote nodes, NEO GUI connects to the Neo network’s graphical user interface directly.

On their GitHub download page, Neo GUI is said to support all the Neo network’s basic functions that include providing professional interaction between wallet and blockchain and maintaining high security for the wallet. But are these claims true? Is the wallet as intuitive and secure as advertised? We answer these questions and tell you everything else you need to know about the Neo GUI wallet in this review:

We start by looking at the basic features:

Neo GUI key features

Full-stack node: NEO GUI is a full-stack desktop wallet that requires you to download the Neo blockchain into your computer.

Synchronize with Neo blockchain: One of the critical factors that distinguish Neo GUI from other GUI desktop wallets is its synchronization with the Neo Network. While most other wallets use remote nodes to connect to the Neo blockchain, NEO GUI directly links to the NEO Mainnet’s user interface. It synchronizes with the network to ensure that transactions initiated on the wallet are recorded on the Neo blockchain in real-time.

OS-compatible: NEO GUI desktop client is also pretty versatile and compatible with Windows and macOS operating systems.

NEO GUI Security features

Password encryption: During the NEO GUI installation process and when creating the user account, you will be asked to secure the wallet by creating a password. Note that this not only serves as protection for the desktop wallet but also acts as an encryption tool.

Open source: Neo GUI wallet is built on an open-sourced blockchain technology and is open to scrutiny and critique by the crypto community. Therefore, anyone can access the Neo GUI source code from either the wallet’s official website or their GitHub page to view and audit its effectiveness and commitment to security.

Community-led development: NEO GUI is a community-led crypto project with no central governing body. Instead, updates and upgrades to the wallet emanate from the Neon Blockchain community’s suggestions and are led by blockchain technology experts elected by the community.

Anonymous trading: NEO GUI is committed to promoting user anonymity. To this end, the wallet allows for anonymous use of the platform since it doesn’t ask for your personal information when creating a user account, and neither will the blockchain collect and store information that is personally identifiable to you.

Non-custodial: Though the NEO GUI wallet can synchronize with the NEO MainNet and technically offloads most of its critical services to the Neo blockchain, it doesn’t store private keys on your behalf. Rather, it encrypts them and saves them on your computer.

Offline backup: Like most other full-stack desktop wallets, NEO GUI doesn’t provide you with a recovery seed. It nonetheless provides you with two ways of backing up your data and private keys. For starters, you can download the decrypted version of the synchronized blockchain and save it offline or simply copy your wallet credentials on a piece of paper and save them offline.

How to set and activate the NEO GUI wallet

Step 1: Start by downloading the desktop client to your computer. You can download the updated version of this client from the NEO.org website or their GitHub page.

Step 2: The wallet is downloaded as a zip version. Once complete, unzip this file, and start installing it.

Step 3: The wallet will display the user dashboard once complete. Proceed to create a new wallet by clicking on the “wallet” tab and selecting “New wallet address.”

Step 4: The wallet will now require you to choose the database or folder in which you would like to save the file

Step 5: You also need to create a user name and a unique password.

Step 6: Your NEO GUI wallet is now active and ready for use

How to add/receive crypto into your NEO GUI wallet

Step 1: Log in to your NEO-GUI wallet and access the user dashboard

Step 2: Your public wallet address is visible here. Copy it and send it to the party, sending you Neo coins

Step 3: Wait for your coins to reflect in your wallet.

How to send crypto from your NEO GUI wallet

Step 1: Login into your NEO GUI wallet and access the user dashboard

Step 2: Click on the “Transfer” tab, and the drop-down menu, select the “Transfer” option.

Step 3: If you do not have any saved addresses, click on the “+” button to add a recipient

Step 4: On the pop-up window, enter the recipient’s wallet address on the “Pay To” section and the number of coins you wish to send on the “Amount” section

Step 5: Confirm that these details are accurate and hit “OK.”

NEO GUI wallet ease of use

The processes of installing the NEO GUI wallet and creating a user account are quite straightforward. Its user dashboard is also easily navigable and quite beginner-friendly. Nevertheless, we must mention that synchronizing the desktop wallet with the Neo Network takes time and can be overwhelming for a novice crypto trader/investor. Plus, the wallet is only available in English and Chinese languages.

NEO GUI wallet supported currencies

NEO GUI wallet is Neo-Specific and will only support the blockchain’s native token or any other cryptocurrency built on the Neo Network.

Currently, the wallet only supports NEO coins, Gas, the NEP-5, and NEP-6 tokens.

NEO GUI wallet cost and fees

NEO GUI wallet is free to install and doesn’t charge you for storing private keys. However, you will be charged a network fee every time you send Neo coins from your wallet. The fee is highly variable and depends largely on the type and the amount of coin/token you wish to process.

What are the pros and cons of using the NEO GUI wallet:

Pros:

  • The wallet has transparent based on the fact that it is not only community-led but also open-sourced
  • It has an easily navigable and beginner-friendly user-interface
  • The desktop client can be considered safer than most other desktop wallet apps and web browsers.
  • NEO GUI makes it possible for you to backup your coins offline

Cons:

  • The desktop client is only available to Windows and macOS operating system users.
  • The wallet requires significant storage space and also eats into your computer’s memory.
  • Unlike in the case of wallet apps where processing speed is dependent on the speed of the servers, NEO GUI transaction confirmation speeds depend on your computer’s processing power.

Comparing NEO GUI wallet with other Neo blockchain wallets

NEO GUI wallet vs. Neon desktop wallet

NEO GUI and the Neon wallet are similar because they are both Neo-specific and are also desktop crypto vaults. They are both non-custodial and have put in place similar security features. However, while NEO GUI is a full-stack desktop client, Neon is a light node desktop wallet. Further, while NEO GUI links to the Neo network’s user interface directly, Neon uses remote nodes to access Neo blockchain servers.

Verdict: Is NEO GUI wallet safe?

Well, we recognize that the full stack desktop client has put in place several highly effective security measures aimed at guaranteeing the safety and anonymity of your private keys. These include allowing for the creation of offline backups, allowing anonymous transactions, storing private keys in the wallet owner’s computer, and securing and encrypting the wallet with a password. These, plus the wallet’s commitment to transparency, are all commendable. However, we must mention that it ignores critical security protocols like two-factor authorization to safeguard your wallet against remote hacks. 

Categories
Crypto Videos

UNI Token Explained! Uniswap In Depth Analysis Part 4

https://youtu.be/b5vMpMxGAUM

https://youtu.be/b5vMpMxGAUM

 

UNI Token Explained: Uniswap In-Depth Analysis (Part 4/4)


Uniswap has finally introduced its native token, after months of anticipation. The token is meant to enable shared community ownership by implementing an on-chain governance system. This governance system will facilitate protocol development, as well as the development of the broader Uniswap ecosystem.

Who received UNI tokens?

Uniswap has a total supply of 1,000,000,000 tokens, split between community members, team members, investors, and advisers. Sixty percent of the UNI supply will belong to the Uniswap community members. At launch, Uniswap released 15 % of UNI tokens — 150,000,000 UNI – to be immediately claimable by historical users totaling 400 per unique address, as well as liquidity providers and SOCKS redeemers and holders.


Less than 24 hours of its launch, and the UNI token has already become the second-most widely distributed DeFi token, counting over 67,000 unique token holder addresses. That’s more than triple the size when compared to its community fork SushiSwap, while only Aave’s LEND token is more widely distributed at the moment.
With so many users claiming their UNI tokens at the same time, Ethereum’s gas prices spiked substantially and rendered the Ethereum blockchain practically unusable at the time.

Total supply and distribution

One billion UNI tokens have been minted at genesis, and they will become accessible over the course of four years. The four-year token allocation looks like this:

 60% to Uniswap community members – totaling 600,000,000 UNI
 21.5% to team members as well as future employees with 4-year vesting – totaling 215,101,000
UNI
 17.8% to investors with 4-year vesting – totaling 178,000,000 UNI
 0.07% to advisors with 4-year vesting – totaling 6,899,000 UNI
Initial Liquidity Mining
Mining UNI token will initially be available through four liquidity pools to incentivize and bootstrap liquidity provision. UNI holders will be able to vote to add more liquidity pools starting October 18.
The initial liquidity mining program has started on September 18 at 12:00 am UTC, and will last run until November 17 at 12:00 am UTC.

Inflation

After the 4-year vesting schedule, UNI token will have a perpetual inflation rate of 2% per year. This measure is put in to ensure continued participation in the Uniswap operations from the community, but at the expense of passive UNI holders.

The UNI token’s future
Uniswap does not directly take any part of the trades fees for itself. However, the governance proposals for trading fees will likely be implemented by the community in the future, all to benefit from the extremely high trading volume.

Conclusion

Uniswap is certainly one of DeFi’s strongest and most innovative players at the moment, and it is undeniable that it has a future in the crypto sector. However, investors have to beware of how they trade and use the platform just as much as with any other platform, as unforeseen events might influence the potential gains they make.

Categories
Crypto Videos

Is DEFI Doomed To Be The Next ICO!

https://youtu.be/vpvf-Zv44Cw

https://youtu.be/vpvf-Zv44Cw

 

DeFi is like ‘trying to fly to the moon in a cardboard box’

While DeFi is almost certainly the future, that future may not be today, according to Richard Byworth, the CEO of digital finance company Diginex. He added that the crypto, and especially the DeFi sector, has been bursting with innovation, exuberance, and speculation in recent months. However, the niche is still very much in its infancy.

“I do believe that DeFi is potentially the future down the road,” Byworth said during an interview with the co-founder of Morgan Creek Digital Anthony Pompliano. “But it’s very early,” he added, further elaborating:

“It’s like flying to the moon in a cardboard box. You are going to get yourself into trouble along the way, and things are going to break and burn up, as we have already started to see.”
These dramatic attempts, trials, and failures are not making the industry look great regarding various mainstream entities peering into the cryptocurrency sphere and its emerging DeFi niche.

“I definitely look back to 2017, and the whole DeFi thing is probably not what we all need right now,” Byworth said. “We have MicroStrategy coming in, we have Paul Tudor Jones coming in, we have some really serious hitters slowly but surely starting to pay attention to this industry. I just hope that DeFi doesn’t become just another ICO craze that makes people go, ‘you know what, everyone is crazy in crypto,’ and stay away from it for another couple of years.”

Taking a look back, the entire crypto industry reached its peak bubble status in 2017 due to the uptrend of initial coin offerings (ICOs for short), which were an attempt to improve the IPO model. However, this model turned into a fad and later got stomped out by various regulatory bodies. In recent weeks, DeFi’s growth and optimism surrounding it have given off similar vibes, with many completely random assets spiking in the price for no apparent reason.
Byworth is not the first one who compared the DeFi sector to the now-dead ICO sector from back in 2017. Ryan Selkis, the founder of digital asset data site Messari, recently expressed very similar thoughts.

Additionally, as Byworth mentioned, multiple very important mainstream giants have recently placed big bets on crypto and Bitcoin, possibly putting the industry at a pivotal point in life thus far.

Categories
Forex Assets

Trading The CAD/ZAR Forex Cross Currency Pair & Analyzing The Costs Involved

Introduction

Introduction

Introduction

The CAD/ZAR is an Exotic forex currency cross. CAD represents the Canadian Dollar, and the ZAR corresponds to the South African Rand. CAD is the base currency in this pair, while the ZAR is the quote currency. This pair’s exchange rate shows the value of the ZAR, which is equivalent to 1 CAD. If the pair’s exchange rate is 12.7969, it means that 12.7969 ZAR is equivalent to 1 CAD.

CAD/ZAR Specification

Spread

The spread in forex is calculated by subtracting the bid price from the asking price. Brokers determine the spread since it’s their primary source of revenue. Below is the spread charges for ECN and STP brokers for CAD/ZAR pair.

ECN: 39 pips | STP: 44 pips

Fees

Forex traders with the ECN type accounts have to pay a commission to their brokers for every position they open. Brokers do not charge any trading fees on STP accounts.

Slippage

The difference between the trade price preferred by a trader and the broker’s execution price is the slippage. In forex, slippage depends on market volatility and the speed at which the broker executes the trade.

Trading Range in the CAD/ZAR Pair

The trading range is best described as the analysis of how the exchange rate of a currency fluctuates across different timeframes. This analysis will help to estimate the expected returns from trading a particular currency pair. If, for example, on the 1-hour timeframe, the volatility of the CAD/ZAR is ten pips, a trader can expect to gain or lose $78. The trading range for the CAD/ZAR pair is shown below.

The Procedure to assess Pip Ranges

  1. Add the ATR indicator to your chart
  2. Set the period to 1
  3. Add a 200-period SMA to this indicator
  4. Shrink the chart so you can determine a larger period
  5. Select your desired timeframe
  6. Measure the floor level and set this value as the min
  7. Measure the level of the 200-period SMA and set this as the average
  8. Measure the peak levels and set this as Max.

CAD/ZAR Cost as a Percentage of the Trading Range

To make an informed risk management decision when trading the CAD/ZAR pair, we can analyze how the trading costs vary across different timeframes with different volatilities. Here are the cost analyses for the CAD/ZAR pair for both ECN and STP accounts.

ECN Model Account

Spread = 39 | Slippage = 2 | Trading fee = 1

Total cost = 42

STP Model Account

Spread = 44 | Slippage = 2 | Trading fee = 0

Total cost = 46

The Ideal Timeframe to Trade CAD/ZAR

We can notice that shorter timeframes have higher trading costs than the longer timeframes for both the ECN and the STP accounts. Also, across all timeframes, the trading costs reduce as the trading range of the CADZAR pair increases from minimum to maximum.

Although longer-term traders enjoy lesser trading costs, intraday traders can reduce their trading costs by trading when the volatility ranges between medium to the maximum. We can also further reduce the trading costs by implementing forex limit orders, which ensures that slippage does not affect your prices. Here is how trading costs can be reduced using forex limit orders.

ECN Account Using Limit Model Account

Total cost = Slippage + Spread + Trading fee

= 0 + 39 + 1 = 40

Using limit orders has significantly reduced trading costs. For the CAD/ZAR pair, the highest cost has been reduced from 711.86% of the trading range to 677.97%.

Categories
Crypto Daily Topic Cryptocurrencies

Introducing Newton (NEW)

In a world where everyone looks out for themselves, it’s a breath of fresh air when a project comes out to work for everyone to get their fair share.

In a world where everyone looks out for themselves, it’s a breath of fresh air when a project comes out to work for everyone to get their fair share.

In a world where everyone looks out for themselves, it’s a breath of fresh air when a project comes out to work for everyone to get their fair share.

Newton, which believes that “everyone should benefit from economic growth,” is that project. Through what it calls a “community-based economy,” Newton wants to facilitate an economy where all participants benefit on an equal footing. 

The project is named so as a tribute to ‘great scientist’ and ‘founder of the gold standard system,’ Sir Isaac Newton. 

Core Features 

Newton plans to put into effect various features to realize these achievements. Let’s go through each of these below: 

#1. NewChain

NewChain is a technology that will enhance the project’s scalability, performance, and privacy. NewChain comprises a main chain and multiple subchains. The main chain handles the following: managing accounts, managing tokens, overseeing the subchains, etc. For their part, the subchains run the network’s main operations, such as overseeing consensus mechanisms and staking. Third parties can create their own subchains after staking the network’s native token – NEW. Network users can exchange value between both the mainchain and subchains and between the subchains. 

The main chain utilizes a Delegated Proof of Stake consensus, with block producers being chosen through a voting process. NewChain features a virtual machine called NewVM, which is compatible with programming languages that developers across the globe are familiar with, such as Typescript, C/C++, Java, and Python. Newchain also features smart contract templates so developers can have an easier time developing DApps. The chain can process upwards of 5 thousand transactions per second and support high-frequency activities such as the internet of things (IoT), e-commerce, and more. 

#2. Atom hashing 

Before we talk about atom hashing, let’s do a refresher on non-digital assets. For one, these assets are registered manually in an unreliable and fraud-prone process, making it hard for them to be represented on the blockchain. Things like labeling of these products and authenticating rights are difficult to do. 

Atom hashing is a process that utilizes technology machine vision to identify several characteristics like weight, volume, shape, volume, and so on. Based on these metrics, things like the identification and the authentic rights of a non-digital asset are quickly established. For instance, before a commodity leaves a factory, the results of the atomic hashing process can be recorded on the blockchain. Customers such as online shoppers can use this info to confirm if a commodity is the one that they ordered indeed. 

#3. NewNet 

NewNet is a decentralized computing tool that supports functions such as computing and storage. On the network, developers can publish computing tasks while selected nodes choose those tasks based on their computing power and complete them, upon which they get rewarded for it. 

Users can access the network through their everyday browser. They can choose to run the network through their local nodes or proxy nodes. 

#4. NewIoT

This network will support blockchain gateways, communication channels for IoT devices, and so on. It features a very powerful computing capacity and supports several access methods, including Ethernet/fiber, 3G, 4G, 5G, IoT, and communication protocols such as Wi-Fi, ZigBee, and more. IoT devices will store their aggregated info on NewChain through these pathways. 

The NewIoT specification can support multiple IoT devices, including sensors for temperature, humidity, vibration, harmful gases, and more. Other devices that can be supported include sound and image collectors and GPS. 

#5. NewAI

This is an intelligence engine that supports decentralized data sources, computing resources, and more so that various tasks can be completed successfully. It features data, model, and execution protocols called NDData, NDModel, and NDEngine, respectively. NDData is the channel through which users can access data.

It facilitates data compression, data encryption, and so on. NDModel is a tool through which developers can define various algorithm models, operations, and storage. NDEngine is a tool for functions like deployment, operation, running calculation software, and so on. 

Newton Project’s Community Growth Strategies

The Newton project team intends to carry out the following activities in a bid to expand the brand: 

  • Cooperate with various partners such as Wanqi Group to bring more users to the platform
  • Launch a string of social media marketing events
  • Come up with and provide tutorials to the community
  • Provide community members with progress updates

In the future: 

  • Improve the developer experience by upgrading developer kits 
  • Launch a Blockchain Debate Podcast to increase awareness of the project
  • Release an ambassador plan to popularize the project further

The NEW Token

NEW is the native token of the Newton network. It is an essential part of the ecosystem and will play a key role in transactions and smart-contract execution. 

Token Distribution of NEW

The distribution of NEW was done in the following fashion:: 

  • Seed sale tokens – 7.59%
  • Private sale tokens – 6.07%
  • Public sale – 0.33%
  • Huobi IEO tokens – 2.02%
  • Community incentives tokens – 60.71%
  • Team tokens – 10.12%
  • Foundation tokens – 13.15%

Key Metrics of NEW

As of September 27, 2020, NEW traded at $0.000584, while it ranked at #443 with a market cap of 12 million. The coin has a 24-hour volume of $705,269, a circulating supply of 20,571,994,592, and a total and maximum supply of 98,823,661,261. NEW has an all-time high of $0.016538 (April 19, 2019) and an all-time low of $0.000271 (March 13, 2020). 

Where to Buy and Store NEW

You can find NEW as a market pair of USDT, ETH, BTC, BNB, and HT and more at exchanges like HotBit, MXC, Huobi Global, HotBit, BiKi, Binance DEX.

The Newton Project currently supports official wallets for Windows, MacOs, and Ubuntu. 

Final Thoughts

Through its core features of NewChain, atom hashing, NewNet, NewIoT, and NewAI, the Newton project is set to usher in an economic playground where all participants benefit directly from economic growth. Its unique atom hashing technology is ground-breaking, and depending on how the team nurtures it, NewChain could become a core feature of the blockchain world and the entire tech space. The project is one to keep an eye on.

Categories
Forex Fundamental Analysis

Everything You Should Know About ‘Reserve Assets’ As A Macro Economic Indicator

Introduction

Introduction

Introduction

In the current age of globalization and increasing international trade, every country strives to have a favorable balance of payment and a stable currency in the international market. As is with any other market, a currency’s exchange rate is majorly determined by the forces of demand and supply. For stability of its exchange rate, a country might opt to purchase its currencies from the international market to reduce its supply, using its reserve assets.

Understanding Reserve Assets

In finance, reserve assets refer to foreign currencies held and controlled by a country’s central bank. The central banks are mandated to use the reserve currency as they deem fit to benefit the local economy. A reserve currency is supposed to be a universally accepted currency whose value is relatively stable over time. The US dollar is the most preferred reserve currency. Other major currencies include the Euro and GBP.

Purposes of the Reserve Assets

A country’s central bank can use the reserve assets it controls in several ways.

The reserve assets can be used to influence the exchange rate of the local currency against international currencies. Countries can do this whether their exchange rate is fixed or floating. For a fixed exchange rate, a country will peg the exchange rate of its currency against a reserve currency. Pegging the local currency against another one means that the local currency’s value will adjust at the same rate as the other currency.

In this case, when the local government wants to increase its currency value, it uses the reserve assets to buy its currency from the international market. In turn, the demand for the local currency goes up along with its value. The main goal for currency pegging is to remove inflation or changes in the interest rates from impacting the trade between two economies.

Source: St. Louis FRED

For countries whose exchange rate is floating, the central banks use the reserve assets to adjust their currencies relative to that of the reserve currency. If a country wants to weaken its currency to make its exports competitive in the international market, it will sell its currency to buy reserve assets. Conversely, if it wants to increase its currency value, it will use the reserve assets to purchase its currency from the international market.

Another function of the is to shore up the economy in case of natural or human-made disasters. In such disasters, economic activities in the country may be crippled, which significantly lowers the exports. Consequently, the foreign exchange earned in the international market. The central banks use the reserve assets to ensure there is enough liquidity of foreign currency for importation.

Furthermore, in such disasters, investors may flee the country by withdrawing from the local banks. The resultant shortage of foreign currency will reduce the value of the local currency. The central banks can use the reserve assets to buy the local currency to prevent over-inflation and keep the local currency stable.

The country’s reserve assets are also used to meet its financial obligations, such as debt repayment. When a country borrows from the international markets, the interest payments are usually demanded to be paid in the reserve currency. Debtors prefer the reserve currency since it guarantees them that their cash flow is protected from rapid inflation. Therefore, having adequate reserve assets gives investors and creditors confidence that their capital is protected.

Using the reserve assets data for analysis

There is a minimum limit of reserve assets that a country is recommended to hold. This minimum threshold is meant to ensure that in case of any economic shocks, the country can fund essential imports in the short term. Furthermore, the minimum reserves should cover all the country’s debt obligations for about a year.

Therefore, when the reserve assets held by a country are dropping, it could indicate that the economy is experiencing shocks, and the central banks have stepped in to mitigate. When these levels are continually dropping, it means that the economic shocks being experienced are not reducing.

Source: St. Louis FRED

Considering that the reserve assets increase when the balance of payments accounts is improving, a drop in the reserve assets signals that a country in exceedingly becoming a net importer. A reduction in the number of exports or a drop in the value of exports results in net imports. Either way, it implies that the country’s living standards have deteriorated, and unemployment is on the rise.

All these factors point towards a shrinking economy. Conversely, a constant increase in reserve assets implies that the country is a net exporter, which could increase the quantity of exports or quality through value addition. These two factors signal a growing economy with possibly improving labor market conditions.

Impact on Currency

Apart from the direct influence of the exchange rate by buying and selling the reserve assets, here are some of the ways changing levels of a country’s reserve assets impact its currency. Higher reserve assets levels show that the country is well prepared to deal with any unforeseen economic shocks. For investors, this is a sign of stability and encourages them to invest in the country, which leads to lower unemployment and economic growth. Thus, increasing levels of reserve assets lead to a currency’s appreciation.

Conversely, a persistent drop in the reserve assets is negative for the currency. Dropping reserve assets is an indicator that the local currency is under pressure, and the central banks are selling reserve assets to stabilize the currency. Similarly, it could mean that exports in the economy have been reducing over time. Both these instances point towards an adversely affected economy.

Sources of Data

In the US, the data on reserve assets is published monthly by the US Federal Reserve Board, while in the EU, it is published by the European Central Bank. The IMF publishes data on global reserve assets balances.

How Reserve Assets Data Release Affects Forex Price Charts

The most recent release of the EU’s reserve assets data was on September 15, 2020, at 10.00 AM GMT. The release can be accessed at Investing.com. The screengrab below is of the monthly reserve assets from Investing.com. To the right is a legend that indicates the level of impact the FI has on the EUR.

As can be seen, this low volatility is expected upon the release of the reserve assets data.

In August 2020, the EU’s total reserve assets were 915.08 billion compared to 923.07 billion in July 2020.

EUR/USD: Before the Reserve Assets Data Release on September 15, 2020, 
Just Before 10.00 AM GMT

Before the publication of the reserve assets data by the ECB, the EUR/USD pair was trading in a neutral trend. The 20-period MA was flattening with candles forming just around it.

EUR/USD: After the Reserve Assets Data Release on September 15, 2020, 
at 10.00 AM GMT

After the news release, the pair formed a 5-minute “Doji” candle. Subsequently, the pair adopted a bullish trend with candles crossing and forming above the rising 20-period MA.

Bottom Line

The total reserve assets that a country holds is a crucial indicator of its economic health and balance of payments condition. But as can be seen in the above analyses, this indicator has no significant impact on the forex price action. We hope you found this article informative. Let us know if you have any questions in the comments below. Cheers!

Categories
Forex Price Action

Some Moves do not Belong to the Chart that You Follow

In today’s lesson, we will demonstrate an example of a chart that makes a breakout at the last weekly low. The price then goes back within the last weekly range and makes an interesting move. We will find out what that interesting move is all about in a minute. Let us get started.

In today’s lesson, we will demonstrate an example of a chart that makes a breakout at the last weekly low. The price then goes back within the last weekly range and makes an interesting move. We will find out what that interesting move is all about in a minute. Let us get started.

In today’s lesson, we will demonstrate an example of a chart that makes a breakout at the last weekly low. The price then goes back within the last weekly range and makes an interesting move. We will find out what that interesting move is all about in a minute. Let us get started.

It is the H4 chart. The chart shows that the price makes a bearish move. It finds its support and trades around it for a while. The last candle of the week comes out as a Doji candle. The sellers may keep their eyes on the chart to get a bearish breakout and find short opportunities.

The first candle of the week comes out as a bearish candle. The price heads towards the level of support, and it produces a hammer. The price may roam around the level of support before making its next move. Let us proceed to find out what happens next.

The chart produces two bearish candles. One of the candles closes well below the level of support. The sellers may keep the chart on their watch list closely. They may wait for the price to consolidate and produce a bearish reversal candle to go short in the pair.

The chart produces four candles with a bullish body. The last candle comes out as a commanding bullish candle closing above the breakout level. If the chart still produces a bearish engulfing candle closing below the last swing low, the sellers may still go short in the pair. However, it does not look that good for the sellers.

As expected, the price heads towards the North further. One of the candles closes above the weekly opening as well. It means the H4 sellers may skip eyeing on the chart to go short. The chart does not belong to the H4 sellers anymore. The buyers may go long on the pair upon bearish retracement followed by a bullish reversal candle at the key level of support though. That is another ball game. Let us find out what the price does afterward.

What a strong bearish move that is! The price does not produce a bullish reversal candle. It makes a strong bearish move and makes a new swing low instead. However, the H4 sellers upon weekly high/low breakout may not be able to catch the move. The move belongs to other chart traders. Most probably, the sellers on the daily chart can catch such a move.

We often find such a move that may not offer entry on the chart that we follow. Do not get disappointed. Stick to your chart and trading strategies. Something must be round the corner for you.

Categories
Forex Course Forex Daily Topic

149. Trading The Fakeouts In The Most Conservative Way

Introduction

Introduction

Introduction

Breakout trading is prevalent among all types of traders. Professional traders make a lot of cash by trading these breakouts, while some novice traders fail to effectively trade them. While trading these breakouts, the pretty basic strategy is to pull the trigger when the price breaks above or below any significant level. But many times, the price tends to reverse its direction and cause immediate losses. This is one of the most frustrating experiences breakout traders go through.

Did this ever happen to you, and did you wonder why this happens? The reason is that you have no pre-planned entries. You are just reacting to the price action and chasing the markets purely based on your feelings, but you must accept that the market has no feelings.

How to Trade the fakeouts?

❶ Primarily, find the confluence level on the price chart. This is a place where most of the indicators point towards one direction.

❷ Avoid trading range breakouts as both the parties hold equal power when the market is ranging. In this state of the market, the chance of spikes is very high. So it is always advisable to trade breakouts only in a trending market.

❸ Wait for the price to break above any significant level in an uptrend and break below any major level in a downtrend.

❹ Right after the breakout, wait for the price to test above or below any major level to confirm the breakout’s authenticity.

Trading Strategies

Buy Example

The image below represents a breakout in the EUR/CHF Forex pair.

As you can see in the below chart, we waited for the price action to holds above the breakout line. We have only entered the market after we confirmed the breakout. If the price action fails to hold, it simply means that it was a fakeout, and we can ignore it completely.

In this example, prices held above the breakout, which confirms the validity of the breakout. We took entry at the breakout line and chose to go for a brand new higher high. The exit was purely based on the higher timeframe’s significant resistance area, and the stop loss was just below our entry.

Sell Example

The image below represents a sell breakout in the GBP/NZD forex pair.

In the below image, we can see the price holding below the significant resistance level, which confirms the breakout. Our entry was at the red candle at the significant resistance level. The price sharply rejects to go any higher. Now we can see a brand new lower low forming after our entry.

The stop-loss is placed just above the entry as the seller response was quite aggressive. When the price started to struggle and failed to go down further, we chose to close our trade.

This is one of the best ways to trade the fakeouts in the most conservative way. We hope you got a clear understanding of this concept. Please let us know if you have any questions in the comments below. Cheers!

[wp_quiz id=”92087″]
Categories
Forex System Design

How to Read a Simulation Report

Introduction

Introduction

Introduction

When the developer performs the trading strategy design, it evaluates through a historical simulation process to overview its results under certain conditions. However, once finished the simulation, the software delivers a series of data that could confuse the developer with a broad kind of information provided by the report.

In this educational article, we will present the main elements of the historical simulation report.

Essential Data of the Historical Simulation Report

Within the wide variety of platforms that allow historical simulations, there is a set of essential data that the software provides at the end of the simulation process. These data are grouped into three large blocks: Performance Summary, Equity Chart, and Trades List.

The following figure shows the example of a report of a historical simulation performed in Strategy Tester of MetaTrader 4.

The report presents three blocks, which are detailed as follows.

Performance Data Summary

This section provides summarized statistical data from the historical simulation of the trading strategy. The key performance indicators are as follows:

  • Total Net Profit: This is the financial result of all trades executed during the simulation period. This value corresponds to the difference between the “Gross Profit” and the “Gross Loss.” A reading above zero is indicative of a trading strategy with positive mathematical expectation.
  • Maximal Drawdown: This is the highest local maximum loss expressed in the deposit currency and percentage of the deposit. In general terms, this value should be as low as possible. The criterion of maximum permissible drawdown will depend on the risk target of the trading strategy developer.
  • Total Trades: Corresponds to the total number of trades executed during the historical simulation. The developer might consider this value to assess the level of aggressiveness of the strategy. Also, it can use it to value the strategy in terms of its operational costs. For example, a strategy with a high number of trades could be more aggressive for a conservative investor. In turn, it implies a high operational cost in terms of paying commissions.
  • Percentage of Trades Winners: This is the number of profitable trading positions divided by the total number of positions. 
  • Profit Factor: This is the relationship between Gross Profit and Gross Loss. A reading lower than 1 suggests that the strategy generates more losses than gains. On the contrary, if it is greater than 1, then the strategy provides more profit than losses for each currency unit invested.
  • Sharpe Ratio: Some historical simulation platforms of trading strategies provide the Sharpe Ratio. This indicator represents the expected return on a risk-adjusted investment of an asset. In general, investors tend to consider as risk-free return the rate of the United States Treasury bond. A reading of less than 1 suggests that the trading strategy provides more volatile results. In other words, the developer could assume that the trading system is riskier than another with a ratio greater than 1.

Balance Curve

The balance curve chart presents the cumulative result of the trading strategy using a line chart. The information provided in this chart represents the result of the strategy execution under conditions and parameters in which the developer carried out the historical simulation.

Considering the investor’s objectives, the developer could improve its performance by optimizing the initial parameters.

List of Trades

This section of the report shows in detail each trade that the strategy performed during the simulation period. This list usually shows the following data:

  • Date of entry.
  • Type of order (buy, sell).
  • Entry price.
  • Size of the position.
  • Date of close.
  • Closing price.
  • Profit or loss of the trade.
  • Profits and losses accumulated or Balance.

 

Conclusions

The historical simulation process provides an overview of trading strategy behavior according to the developer’s parameters initially defined. This information is reflected in the simulation report, which provides a wide variety of information about the strategy’s performance under predetermined conditions.

Within the information provided at the end of the historical simulation, there are key data that the developer should not fail to value these are: Total Net Profit, Maximal Drawdown, Total Trades, Percentage of Trades Winners, Profit Factor, and Sharpe Ratio, which some simulation software does not provide it. However, the lack of availability of this data is not a limitation for assessing the strategy’s performance but will depend greatly on the criteria and experience of the developer of the trading strategy.

The developer can use this information to confirm that the trading strategy is proceeding as specified initially. Also, it can use this data to understand the strategy’s behavior during each trade.

This information is also important to spot potential improvements in the strategy. For instance, you could detect that several large losses may be trimmed with a better stop-loss replacement. You could also find out that a good portion of the trades was closed at a less than optimal level. The developer may conclude that the system would greatly improve with a better take-profit algorithm.

Also, the information gathered from the simulation may help improve the entries. For instance, you could find out that there are large losses at the beginning of the trade most of the time. That could signal the entries flag too quickly, or you may notice that the strategy would benefit from early entries to improve profits.

Finally, according to the developer’s objectives and the information analysis, the developer could attempt to adjust and optimize the needed parameters that could improve the strategy’s performance.

Suggested Readings

  • Pardo, R.; The Evaluation and Optimization of Trading Strategies; John Wiley & Sons; 2nd Edition (2008).

 

 

 

Categories
Cryptocurrencies

 DexWallet Review: How Safe Is This Defi-Focused Wallet?

The DexWallet website describes this crypto vault as “the Mobile wallet for decentralized finance.” A platform where anyone can grow a passive income through borrowing, lending, exchanging, and staking cryptocurrencies and tokens.

DexWallet - Best DeFi wallet

The DexWallet website describes this crypto vault as “the Mobile wallet for decentralized finance.” A platform where anyone can grow a passive income through borrowing, lending, exchanging, and staking cryptocurrencies and tokens.

The DexWallet website describes this crypto vault as “the Mobile wallet for decentralized finance.” A platform where anyone can grow a passive income through borrowing, lending, exchanging, and staking cryptocurrencies and tokens.

Created and introduced to the crypto industry by DexLabs in 2018, Dexwallet is a multi-chain mobile wallet and a gateway for the decentralized economy specially designed to appeal to anyone regardless of their crypto experience. Over time, the wallet has incorporated several innovative operational and security measures to make it the most user-friendly, secure, and passive earning crypto project.

But how achievable is this vision? What steps has DexWallet made towards making it a reality? More importantly, is DexWallet safe?

We answer both these questions and tell you everything you need to know about the crypto wallet in this review. We look at the passive income and user-focused features, security measures in place, and tell you how to set up a DeXwallet and its pros and cons.

DexWallet key features

Earn interest on saved funds: DexWallet is a mobile wallet that lets you stake different cryptocurrencies or tokens and earn an annual interest. The wallet has also oversimplified this process and made it as easy as saving as operating an online savings account. Plus, it promises earnings as high as three times what is offered by the traditional bank.

Inbuilt exchange: The mobile wallet has an inbuilt exchange that allows you to exchange different eth-based cryptos. The fact that you don’t need to leave the wallet or send your Crypto to a third-party exchange and back not only speeds up the crypto swap process but also makes it relatively affordable.

Buy Crypto with card: You can also buy any of the cryptocurrencies and tokens supported by DexWallet using virtually any debit or credit card. This purchase is processed by MoonPay fiat-to-crypto exchange that’s integrated into the DexWallet.

Monitor crypto portfolio: The DexWallet lets you view and track your crypto portfolio in real-time via the balance and history tabs. And in instances where the transaction confirmation speeds on the blockchain are slow, it will outline all your pending transactions to help you avoid double-payments.

Integrate Defi apps: DexWallet describes itself as the wallet for Defi apps. It features all the popular Defi apps like Compound, Fulcrum, MakerDAO, and Uniswap. You also have the option of searching for and integrating similar apps from the Dapp browser. These are geared towards helping you stake/lend a portion of/entire portfolio and earn interest in return.

DexPay: You no longer have to go through the laborious process of converting your eth-based tokens to cash or other Crypto when paying for goods or services in Crypto friendly stores. Simply use DexPAY that has DAI as its bass currency but can convert any other token automatically when making a payment.

Import Eth wallets: DexWallet is a highly versatile crypto vault compatible with virtually all other eth-based wallets. This means that you can easily import your MyEtherWallet, MetaMask, and even Jaxx wallets to the DexWallet and view all these balances on a single unified platform.

DexWallet security features

Password + encryption: DexWallet is secured with a password that not only secures your private keys but also serves as the encryption tool.

Open source: DexWallet is built on an open-sourced blockchain technology. Wallet users and others, therefore, can view and audit its source code and seek out possible security loopholes or malicious lines of code.

Hierarchically deterministic: This implies that DexWallet auto-generates a new wallet address for every new transaction. This masks your real wallet address, effectively throwing off crypto trackers and third parties who might want to check your crypto activity and view and monitor your past or future crypto transactions.

Watch only mode: You have the option of activating the watch-only wallet mode that allows you to access your wallet over insecure internet connections. During a watch-only mode session, anyone with access to the wallet can view balances and accept incoming crypto coins but can’t access or alter your app settings, private keys, passphrase, or send Crypto.

Non-custodial: DexWallet does not store cryptos and tokens on behalf of its clients. Rather, it encrypts them and stores them in the root memory of your mobile phone.

Ethereum Name Service (ENS) supportive: DexWallet lets you choose a unique username that serves as your wallet address. This helps eliminate the common and often costly mistakes associated with getting your recipient’s wallet address wrong.

How to set and activate the DexWallet app

Step 1: Start by downloading and installing the DexWalet app from the Google play store, Apple App Store, or the official DexWallet website.

Step 2: Launch DexWallet and chose to “Create a New Wallet.”

Step 3: Create a new and unique username for the wallet.

Step 4: Create a wallet password

Step 5: Copy the mnemonic phrase provided by the wallet and keep it safe offline.

Step 6: Your wallet is now ready to use

How to add/receive Crypto into your DexWallet

Step 1: Log in to your DexWallet, and on the user dashboard, click ‘Receive.’

Step 2: Copy your DexWallet public address or its QR code and forward either to the party sending you cryptos/tokens.

Alternatively:

Step 3: If you have several digital assets, click on the swap tab and exchange them for eth-based altcoins and tokens

Step 4: Wait for the funds to reflect in your account.

How to send Crypto from your DexWallet:

Step 1: Log in to your DexWallet, and on the user dashboard, click “Send.”

Step 2: If you have multiple crypto assets stored therein, select the wallet from which you would like to send cryptos

Step 3: Enter the recipient’s username (for eth-network transfers) or their wallet address for (non-Ethereum network transfers)

Step 4: Enter the amount of altcoins/tokens you want to send

Step 5: Chose the transaction charge.

Step 6: Verify the accuracy of these transaction details and send

DexWallet ease of use

DexWallet is highly intuitive, and most of the integrated features easy to use. It maintains a highly decongested interface and has a smooth onboarding process. It has also simplified sending and receiving altcoins/tokens by introducing the Ethereum Name Service (ENS).

DexWallet is also multilingual and is currently available in four international languages – English, Chinese, Japanese, and Italian.

DexWallet supported currencies and countries

DexWallet is a multicurrency crypto mobile vault that currently supports 2000+ altcoins and tokens built on the Ethereum blockchain network, including Ethereum, Ethereum classic, and ERC-20, ERC-233, ERC-721 tokens.

DexWallet cost and fees

You will incur transaction charges or GAS – charged by the Ethereum network – whenever you send Crypto and tokens to other exchanges and wallets. GAS is, however, dynamic and gives you the option to choose the fee range depending on the urgency with which you want the transaction confirmed.

Pay low transaction fees for non-urgent transactions and the highest charges for the transactions you want to be confirmed instantaneously.

DexWallet customer support

DexWallet’s customer support is available online and ready to help 24/7. You can reach out to them by raising a support ticket on the wallet’s website, email, or direct messaging them on social networks such as Twitter, Telegram, or Discord.

What are the pros and cons of using DexWallet?

Pros:

  • The wallet provides you with a platform to keep your digital assets and earn interest while at it.
  • DexWallet embraces a user-focused and highly intuitive design.
  • It also supports a wide range of Ethereum blockchain-based altcoins and tokens.
  • The exchange embraces a dynamic fee structure.

Cons:

  • It will only support eth-based tokens.
  • DexWallet ignores such solid security measures as two-factor authentication and multi-signature signing.

Comparing DexWallet with other Eth-based wallets

DexWallet vs. MyEtherWallet

Both DexWallet and MyEthereumWallet are highly intuitive eth-based wallets that will only support altcoins and tokens built on the network. They have also made significant strides in making the crypto wallet as beginner-friendly as possible without compromising their security.

DexWallet, however, carries the day when it comes to the number of integrated features and security measures put in place. For instance, the mobile wallet supports 2000+ altcoins and tokens and features premium privacy features as a watch-only mode.

Verdict: Is DexWallet safe?

DexWallet has put in place some of the most sophisticated security and privacy measures around the mobile wallet. The most visible is the replacement of the complicated wallet address system with a memorable username. It does not require you to provide such personal information as name, phone, or address. Not to mention that it is open-sourced and hierarchically deterministic. The only downside to using DexWallet is that it is a hot wallet that doesn’t support two-factor authentication, exposing you to the risk of remote hacks.

Categories
Cryptocurrencies

Crypterium wallet Review: Features, Fees, Security, Pros and Cons

Crypterium wallet is an innovative and custodial crypto vault that seeks to provide users with a safe platform where they can store, manage, spend, and earn from their digital assets seamlessly. To this end, it has integrated several advanced operational and security features that include an AI-powered exchange system, integrated a borderless card, allowed you to earn interest from saved cryptos, and even insured your digital currencies.

Crypterium wallet - Best crypto wallet app

Crypterium wallet is an innovative and custodial crypto vault that seeks to provide users with a safe platform where they can store, manage, spend, and earn from their digital assets seamlessly. To this end, it has integrated several advanced operational and security features that include an AI-powered exchange system, integrated a borderless card, allowed you to earn interest from saved cryptos, and even insured your digital currencies.

Crypterium wallet is an innovative and custodial crypto vault that seeks to provide users with a safe platform where they can store, manage, spend, and earn from their digital assets seamlessly. To this end, it has integrated several advanced operational and security features that include an AI-powered exchange system, integrated a borderless card, allowed you to earn interest from saved cryptos, and even insured your digital currencies.

Crypterium started as a Bitcoin-only wallet but has, over the years, incorporated more cryptocurrencies. In this review, we tell you everything you need to know about Crypterium, such as the number of supported crypto, how to activate the Crypterium wallet, its features, pros, and cons.

Crypterium wallet key features:

Cross-platform: Crypterium is a cross-platform wallet available as a web vault and a mobile app. You can choose to register online on the official Crypterium wallet website or download the Android or iOS app on the website or the play/app stores.

Built-in exchange: Crypterium integrates ten leading crypto exchanges. More importantly, it features a free artificial-intelligent-powered arbitrage matching system available to every Crypterium user that lets them take advantage of the best crypto exchange rates when swapping currencies.

Integrates Crypterium card: The Crypterium wallet development team has also come up with a borderless Crypterium card and integrated it into the crypto vault.

Buy with card: Most of the exchanges hosted on the Crypterium wallet make it possible for the users to purchase crypto using virtually any debit or credit card.

Pay with crypto: Crypterium wallet users can now deposit cash to the card and use it to pay for goods and services in crypto-friendly stores or withdraw cash at compatible ATMs across the world. The wallet and card also make it possible for you to top up mobile credit, buy redeemable gift vouchers, and even make direct bank transfers.

Fee-free cash transfers: Crypterium is one of the few crypto wallets that make it possible for wallet users to send cryptocurrencies and fiat cash to other individuals using a phone number. They don’t need to have installed a Crypterium wallet as they will get a notification informing them about incoming funds and a link where they can download the wallet to receive the cash.

Earn from savings: The Crypterium wallet roadmap describes a savings plan that allows you to lock digital assets into the crypto vault and get a chance to earn interests of up to 6% annually.

Crypterium wallet security features

Password: The Crypterium wallet is secured with a password that the user sets when creating a user account. 

Two-factor authentication: You can also add another security – the two-factor authentication – to your wallet by adding and verifying both your phone number and email address.

Insured deposits: Crypterium wallet keeps the private keys secure on behalf of their clients. The wallet’s website claims that all the user-funds stored in the Crypterium crypto vaults are insured, implying that should their servers ever be compromised, users will be compensated.

Client-side encryption: The password also serves as the encryption tool for the client-side encrypted wallet. Here, client-side encryption implies that all the wallet communication with the Crypterium servers, exchanges, and other third party systems are encrypted before they leave the wallet.

Hosted service with BitGo: In an attempt to keep your cryptocurrencies safe, Crypterium has partnered with BitGo, a crypto-security services provider. The company specializes in providing safe custody for digital assets.

Block card: Crypterium gives you a near-absolute control of your wallet-linked card. For instance, it makes it possible to control your card spending and even block a lost or misplaced card via the wallet.

How to set and activate the Crypterium wallet app:

Step 1: Download the Crypterium wallet app for your device on either the official Crypterium wallet website or app/play store.

Step 2: Install and launch the app.

Step 3: On the installation page, click on the ‘Create New Wallet’ tab

Step 4:  Enter your phone number and create a password for the wallet.

Step 5: Enter and verify your email address

Step 6: Your wallet is now active and ready for use

How to add/receive crypto into your Crypterium wallet

Step 1: Log in to your Crypterium wallet and tap on the “Receive” button

Step 2: On the deposit window, copy the public wallet address or QR code

Step 3: Send it to the party sending you cryptos

Alternatively:

Step 4: Fund the account by using a debit or credit card to buy new crypto or swap digital assets on either of the ten integrated crypto exchanges.

Step 5: Wait for the crypto to reflect on your Crypterium wallet.

How to send crypto from your Crypterium wallet

Step 1: Log in to your Crypterium wallet, and on the user dashboard, click on the “send” button.

Step 2: Chose the type of coin you wish to send

Step 3: On the transfer window, enter the receiver’s wallet address or phone number and the number of coins you want to transfer

Step 3: Verify that these details are correct and click send.

Crypterium wallet ease of use

Both the Crypterium web wallet and the Crypterium crypto vault have one of the easiest onboarding processes. The wallets are also multi-lingual and available in five international languages, including English, Korean, and Russian. The processes of sending and receiving cryptos into the wallet are also easy.

More importantly, it infuses a wide range of operational features that are easy to interact with, making it an all-in-one cryptocurrency wallet.

It also maintains a highly intuitive user interface that is specially designed to attract both beginners and the most experienced crypto traders/investors.

Crypterium wallet supported currencies and countries.

Crypterium started as a Bitcoin-only wallet. However, it has embraced more cryptocurrencies in the recent past, and you can now store 18 different coins in the wallet.

The exchange service is available to Crypterium users in 180+ countries around the wallet, while the Crypterium card is acceptable in 150+ countries.

Crypterium wallet cost and fees

Crypterium is a free wallet to the extent that you will not be charged to download the wallet or store different crypto coins therein.

Blockchain network fees, however, kick in when you send cryptos to other wallets and exchanges. Other in-wallet charges include the variable commission charged for crypto swaps by the exchanges as well as the 2% charged for card processing.

Crypterium wallet customer support

There are four primary means of accessing the Crypterium wallet customer support team. You can start by raising a support ticket via the Contact Us button on the wallet website, interact with one of their representatives via the in-app chat button feature, call them, or direct message on their telegram channel.

What are the pros and cons of using the Crypterium wallet?

Pros:

  • Crypterium wallet has one of the most responsive customer support teams.
  • The wallet has embraced highly effective security safeguards, including two-factor authentication and insuring customer deposits
  • Cryptereium wallet gives you access to more Crypterium resources, including the Crypterium card.
  • The wallet doesn’t just help keep your digital assets safe but helps you interest of up to 6% annually.

Cons:

  • It is still a hot wallet and subject to threats facing online crypto vaults.
  • It doesn’t allow for anonymous crypto trading.
  • One may consider the number of supported cryptocurrencies limited.

Comparing Crypterium wallet with other multicurrency wallets

Crypterium wallet vs. DropBit wallet

Crypterium and Dropbit are both highly secure and innovative crypto wallets. This innovativeness is demonstrated by the fact they were among the first to allow wallet users to send crypto to mobile numbers, regardless of whether the receiver has a crypto wallet or not. Dropbit has ever taken this a step further and made it possible to send cryptos to a Twitter handle. More importantly, they both are easy to use and quite beginner-friendly.

But while Dropbit is a Bitcoin-only wallet, Cryteroium wallet supports up to 18 leading cryptocurrencies. Similarly, while DropBit has only embraced basic security features around the wallet, Crypterium has gone a step further and insured all customer deposits.

Verdict: Is Crypterium Wallet safe?

Yes. We consider Crypterium Wallet to be safer than the average crypto wallet based on the number of integrated security measures. Like most other wallets, Crypterium Wallet uses a password, encrypts user data, and enables two-factor authentication. But unlike most wallets, Crypterium insures the customer digital assets deposits, ensuring that no one loses their funds even if the wallet or its cold storage servers were hacked. 

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Crypto Videos

How To Use Uniswap In Depth Analysis part 3 of 4

https://youtu.be/Pu4vrxjsNZY

https://youtu.be/Pu4vrxjsNZY

How To Use Uniswap: In-Depth Analysis (part 3/4)

While the previous parts of the guide talked more about the premises of the platform and what it’s used for, this part of the guide will be a bit more practical, as it will explain how to actually use the Uniswap exchange.
How to use Uniswap
Uniswap is an open-source protocol, which means that anyone could create their own application for it. However, most people just use the already created ones, with https://app.uniswap.org and https://uniswap.exchange being the most popular.

While stepping into the DeFi sector might sound daunting, using Uniswap is quite straightforward. First off, you will need to go to the Uniswap interface and connect your Ethereum wallet, such as MetaMask or Trust Wallet. After you’ve done that, you will have the option to select the token you would like to exchange from and to. By clicking swap, the transaction pop-in window will show up.

After confirming this transaction request in the wallet, the transaction will start on the Ethereum blockchain and can be trackable via https://etherscan.io/.
As we mentioned in our previous articles, if you want to earn income from Uniswap, you would need to deposit two tokens of equivalent value to the pool.

Uniswap’s market position

Before using Uniswap, we need to know how does it compare to other decentralized exchanges. Uniswap is by far the leading decentralized exchange in terms of both volume and liquidity, and rivaling even centralized exchanges in that regard. It stands on the cusp of topping $10 billion in monthly traded volume. The traded volume in September only stands at over $9.9 billion, accounting for around 66% of all DEX trading volumes.

Uniswap’s success can mostly be attributed to the ease of liquidity provision. The protocol’s liquidity has steadily increased since the start of 2020, while it has recently seen several enormous spikes due to liquidity mining events from competing forks such as SushiSwap.
Uniswap’s user base has grown in sync with the DeFi boom of 2020, which makes sense as this protocol is a foundational component of the overall DeFi infrastructure due to it having integrations across hundreds of applications.
Despite extremely strong competition from its recently launched fork SushiSwap, Uniswap outperforms SushiSwap from both a volume and liquidity perspective.

Summary

Uniswap is an innovative decentralized exchange protocol built on the Ethereum network. It allows anyone that has an Ethereum wallet to exchange tokens without any involvement of any central party.
While it certainly does have its limitations, this new technology may have some exciting implications for the future of decentralized, trustless token swapping.

For information on Uniswap’s UNI token, check out our next part of the Uniswap in-depth guide series.

Categories
Crypto Videos

Uniswap In Depth Analysis Part 2 of 4

https://youtu.be/708OW4vsDNI

https://youtu.be/708OW4vsDNI

Uniswap: In-Depth Analysis (Part 2/4)

Our previous article on Uniswap touched upon how the protocol works and what it is exactly. This part of our guide will talk about the impermanent loss effect as well as about how Uniswap can make money.

What is impermanent loss?

As we’ve discussed in our previous part of the Uniswap guide, liquidity providers earn fees for providing liquidity to traders that swap between various tokens. However, there is another thing that liquidity providers should be aware of, and that is the impermanent loss.

Impermanent loss is basically an opportunity cost pooling a token that is gaining value. This effect is best illustrated by an example.

Suppose Bob deposits 1 Ether and 100 USDT in the Uniswap pool. As the token pair needs to be of equivalent value, this would put the price of Ether at 100 USDT. At the same time, the pool has a total of 10 Ether and 1,000 USDT. This means that Bob has a 10% share of the pool, which has total liquidity of 10,000.
1 Ether = 100 USDT + 100 USDT = 200 USDT
If the price of Ether increases to 400 USDT, the ratio of Ether and USDT is disrupted. As the total liquidity in the pool has to remain constant, that means that there is now 5 Ether and 2,000 USDT in the pool. Arbitrage traders will add USDT while removing ETH from the pool until the ratio reflects the price.

0.5 Ether = 200 USDT + 200 USDT = 400 USDT
If Bob decides to withdraw his funds at the current ratio, he will get the promised 10% of the pool, which is 0.5 Ether and 200 USDT, totaling 400 USDT. While it seems like he made a nice profit, if he held on to his funds instead of pooling them, he’d have 1 Ether and 100 USDT, which would come out to 500 USDT.
1 Ether = 400 USDT + 100 USDT = 500 USDT
In this case, the impermanent loss is the opportunity cost of pooling a token that suddenly appreciates in price. By depositing funds into Uniswap for the purpose of earning fees, Bob may lose out on other opportunities. This effect works regardless of the price change direction from the time of the deposit.

All that is left to explain now is why this effect is impermanent. If the price of the pooled tokens manages to return to the initial price, the effect is nullified, and since liquidity providers earn fees, the losses from this occurrence should get balanced out over time.
Now that we know how we can earn or lose money, we should know how Uniswap makes a profit. The answer to this is: it doesn’t. Uniswap is a decentralized protocol, where all fees go to liquidity providers.

Founders do not get a cut from the trades through the protocol. However, Uniswap’s UNI token has recently gone live, presenting an opportunity for the founders to earn some money.
At the moment, the transaction fee paid out to liquidity providers is flat 0.3% per trade. These funds are added to the liquidity pool by default, but liquidity providers can redeem them at any point in time. The fees are distributed according to the liquidity providers’ share of the pool.
For more information on Uniswap, its token, and how to use it to earn income, check out the next part of our in-depth guide.

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Forex Videos

Forex Position sizing Part 10 – Scaling in and scaling out techniques!

https://youtu.be/J479nsnF2n4

https://youtu.be/J479nsnF2n4

 

Position sizing X: Scaling-in and scaling-out techniques

Scaling in and scaling out are usual techniques to increase the position while maintaining the risk stable. In this video presentation, we are going to explain how to do scaling in and out 3properly.
Scaling-in can be thought of as a means to reduce the risk while increasing the size of the position. Let’s say that you have a trading system optimal with a 10% total position sizing, and you expect to have no more than four open positions at a given time. Under these premises, the risk per position is 2.5%, but this may bring the overall drawdown to over 25%, which is too high for your tastes.

Pyramiding (scaling in) allows you to approximate your position to 2.5 % while using the market’s money to lower your risk to 1.25%, so your drawdown is reduced accordingly.

Scaling-In

There are several ways to scale in. The basic idea is to add another position to an open trade after a determined profit milestone has been reached. This milestone is usually linked to volatility ( or range). Consequently, the stop-loss settings should also be related to volatility. Traders also associate it with new breakouts after consolidation or any other trend continuation signal. Finally, traders could consider adding a new position after the price moves a determined amount in his favor. One way is to wait for a 1R move, move the stop to BE, and add a position.
For example, let’s suppose a trader has a $10,000 account and wants to trade the EURUSD pair, actually trading at 1.1265. On the chart, the trader sees that the 4H range is 27 pips; thus, he sets the stop-loss setting to 81 pips (3X the 4H range). Let’s suppose that his analysis led him to conclude that the following action will completely fade the last upward movement. So, he opens a short trade (sell) with a profit target to 1.885 and an initial stop-loss of 1.1345 for about 3.3R trade. He begins to risk $125, which is 1.562 lots. The price starts moving in his favor, so he sets a new sell order for another 1.562 lots 27 pips below the open, another sell order 27 pips below this second sell order, and a final sell order at 27 pips below the previous order.
At the same time, the stops are moved 27 pips down every time a sell order is triggered. After the third trade, the trader has 4,6 lots., The last one has a $125 risk, the previous one has currently $83.3, and the initial order shows a $41.66 risk. That is so because the stop-loss was moved progressively from its initial value in 27 pip steps. So, even when the total risk should have been $375, the position has tripled after the pyramiding, but the risk has just doubled ($250), which is 2.5% risk the trader was seeking. Of course, there are plenty of variations on this theme. We might choose to split it into more steps 3, 4, 5. Or add positions at larger advances in our favor.

Scaling out

At some point, if the trader continues to add lots to his position, he may risk a swift movement against his position, wiping all then gains. Scaling out is the trader’s right method to plan ahead of time the potential support/resistance zones and set these levels as partial profit targets. Scaling out may be applied using the same volatility concepts. After the last entry, the trader may start scaling out when another measure of volatility or range has been reached, but technical levels should also be analyzed, so a blend of both can be made to make them optimal.

Scaling-In techniques

Scaling-In can be initiated using the following methods:

  1. Volatility/range based
  2. A percentage of the initial risk
  3. Successive continuation signals of the prevailing trend, after consolidation or rejection.
  4. A new entry every time the stop is moved to break-even for risk-free rides.
  5. It can be combined with profit targets to create a series of pyramiding entries: For instance, on the buy-side: 1.-Buy, 2.- Sell at resistance, 3.- buy 2,3,4… units at the pullback. Conversely, so on the sell-side, Sell, buy on support and sell appropriate 2,3,4… units at pullups.

Also worth mentioning is, traders should limit the total number of scale-ins within the desired risk limits, and never above the optimal f of the strategy.

Pyramiding works best on trending markets. But, it can be applied to any large movement to lower initial risk, and only add more positions if the trade continues moving in the desired direction.

Categories
Forex Videos

Position Sizing IX: Improving the Percent Risk Model-Playing with market’s money

https://youtu.be/V9gyzo_dQqU

https://youtu.be/V9gyzo_dQqU

 

Position Sizing IX: Improving the Percent Risk Model-Playing with market’s money

 

One way to improve the returns of a position sizing strategy without increasing our capital risk is to play with the market’s money. In this video, we are going to develop this idea as a way to improve the percent-risk model.

The market’s money

We define as “market’s money” the gains resulting from the profits of previous trade or winning streak. This is a mentality shift. Instead of viewing recent profits as your own money, you momentarily consider them as a gift of the market to increase the trading size riskless. This has a slight resemblance to moving your stops to break even and let the trade go on. After that action, the rest of the trade evolution is riskless. The concept of the market’s money is especially attractive when the trading strategy has a high percentage of winners because high probability strategies show a higher likelihood of winning streak versus losing streaks.
There are several ways to use this concept, but in this video, we will focus our attention on its use with the Percent-risk model. Precisely, we will use the money gained in the previous successful trades to increase the size of the next trade without increasing the risk of our base money.

The N-Step up position Sizing Strategy

The N-Step-up method uses the N previous successful trades’ gains to increase the size of the next trade. After N trades, the profit is added to the general wallet, to start a new cycle. If there is a loss, the cycle resets and begins again.

The flowchart of this methodology is shown below.
The key idea is that, even when it ends at a loss in the N step, the risk incurred is the only the risk made in the starting position, But if the N-cycle ends as a win, on a 1R reward/risk situation, it will end up with R+2R+3R+… NR gains. On a 2R reward/risk strategy, it will be 2R+6R+ 14R +…
We will try this methodology using the Live Signals Service performance and 1% basic risk to see how the N-Step Up improves it.

Original 1% Strategy

The graph below shows the equity curve growth using a 1% risk over one year of trading, assuming 2 daily trades on average.

When we use Monte Carlo resampling to get 10,000 different 1-year histories, we get the following information.

Average ending Capital: 75,359.86
Max ending Capital : 219,145.26
Min ending Capital: 26,811.62

Probability of Capital ending above 78,604: 43.98 %
Probability of Capital ending above 26,812: 99.99 %
Probability of Capital ending above 10,000: 100.00 %

In the figure below, we can see the likelihood of max drawdown for the 1% Risk model:

Average Max Drawdown: 8.02 %
Maximum Max Drawdown: 27.46 %
Min Max Drawdown: 3.67 %

Probability of a 10% drawdown: 15.44%
Probability of a 20& drawdown: 0.03%
Probability of a 30% drawdown: 0.00%

We can see that the expected max drawdown is 8.38%, with a one in five years ending at 10% and almost no chance to reach 20 percent. Let’s see how this can be improved with one, two, and three N-Step cycles.

The below chart shows the original, plus 1-, 2- and 3-step up position sizing strategies, using semi-log scales to make them fit together in a single chart.

We can see that the advantage of using the methodology is evident, as the 3-Step-up sizing strategy reaches an ending capital of up to one order of magnitude higher (10X), as compared to the basic 1% Risk method.

Let’s see how they perform regarding returns and drawdowns:

1-Step Up Return Stats:

Average ending Capital: 236,427.55
Max ending Capital : 1,306,952.10
Min ending Capital: 34,015.66


1-Step Up Drawdown figures:

Average Max Drawdown: 13.29 %
Maximum Max Drawdown: 33.94 %
Min Max Drawdown: 5.64 %

Probability of a 10% drawdown: 86.21%
Probability of a 20& drawdown: 4.15%
Probability of a 30% drawdown: 0.00%


2-Step Up Return Stats:

Average ending Capital: 625,846.08
Max ending Capital : 8,601,130.02
Min ending Capital: 53,941.54


2-Step Up Drawdown figures:

Average Max Drawdown: 18.02 %
Maximum Max Drawdown: 43.04 %
Min Max Drawdown: 8.31 %

Probability of a 10% drawdown: 99.59%
Probability of a 20& drawdown: 28.29%
Probability of a 30% drawdown: 0.03%


3-Step Up Return Stats:

Average ending Capital : 1,597,715.25
Max ending Capital : 34,224,341.81
Min ending Capital: 53,439.67


3-Step Up Drawdown figures:

Average Max Drawdown: 22.52 %
Maximum Max Drawdown: 58.01 %
Min Max Drawdown: 9.79 %

Probability of a 10% drawdown: 99.99%
Probability of a 20& drawdown: 64.23%
Probability of a 30% drawdown: 0.63%

A variation of this strategy could be made by re-investing only 50% of the profits. This method will significantly lower the returns, although it will also smooth the equity curve. As an example, let’s see the reward and risk figures of a 3-Step Up with 50% reinvestment:

Average ending Capital: 199,952.02
Max ending Capital : 1,181,977.34
Min ending Capital: 34,950.58

Drawdown:

Average Max Drawdown: 12.10 %
Maximum Max Drawdown: 31.89 %
Min Max Drawdown: 5.37 %

Probability of a 10% drawdown: 74.30%
Probability of a 20& drawdown: 1.94%
Probability of a 30% drawdown: 0.00%

We can see that this method is quite similar in performance and drawdown to the 1-Step Up with 100% re-investment, but is not worthwhile, since it reduces the returns to half, while drawdown is only lowered from 13.29% to 12.1%.

Conclusions

We can see that even 1-Step up improves substantially the performance of a strategy (about 4X) with only an increase in the drawdown from 8.% to 13.3%.
We can see also that the best choice for this strategy is 2-Step Up, with a balanced mix returns (average ending equity of $625,846 over an average Max Drawdown of 18%); this is a 10X improvement from the basic 1% sizing strategy with only about 2.2X of drawdown. But, aggressive traders may choose the 3-Step Up strategy, which doubles the 2-Step Up model’s returns with an increase in drawdown from 18% to just 22.5% ( a 25% increment).

Categories
Cryptocurrencies

How to Get your Blockchain Startup Featured in the Media 

According to Statista, the worldwide total spending on blockchain technology reached $2.7 billion as of 2019; and is expected to soar up to $11.7 billion in 2022. Its current market valuation stands at $3.0 billion. Blockchain is only slightly over a decade old but shows so much potential for future investment. Little wonder, then, that companies in nearly every industry are rushing to capitalize on blockchain. 

According to Statista, the worldwide total spending on blockchain technology reached $2.7 billion as of 2019; and is expected to soar up to $11.7 billion in 2022. Its current market valuation stands at $3.0 billion. Blockchain is only slightly over a decade old but shows so much potential for future investment. Little wonder, then, that companies in nearly every industry are rushing to capitalize on blockchain. 

According to Statista, the worldwide total spending on blockchain technology reached $2.7 billion as of 2019; and is expected to soar up to $11.7 billion in 2022. Its current market valuation stands at $3.0 billion. Blockchain is only slightly over a decade old but shows so much potential for future investment. Little wonder, then, that companies in nearly every industry are rushing to capitalize on blockchain. 

Now, nearly every new company dreams of getting featured on the most coveted media platforms. But for a block-chain startup, this can be several times as challenging as it would for a non-blockchain startup. Most companies that get featured on are usually popular, predominant, unique companies that have made a massive shakeup in the blockchain world. As such, the only certain way to achieve this level of success is through relentless brand popularization. 

Creative marketing gets people in the cryptocurrency community and the general public talking about your business. So if you’re willing to take your blockchain start-up to the next level heights, here are some essential marketing tips to get you started.

#1. Create a Website 

In this digital era, many business ventures have taken advantage of the growing digital market. That said, you will notice most of these businesses have a well-designed website with valuable content about their products and services. 

Setting up an interactive and captivating website for your start-up is a key first step. The website should clearly define your company’s vision and mission. Token details, information about your business, solutions, and your team’s background are some of the info you should include. Other useful info would be visualized data or even frequently asked questions (FAQ). 

#2. Use Influencer Marketing

Partnering with a social media influencer to promote your company is another way to market your blockchain company. 

Influencers do not necessarily need to be a celebrity. Someone with a decent following in the blockchain community can generate enough traction for your business. Additionally, influencers lend credibility to your company. Ensure you are actively involved in creating the content; you can still have them share on their social media platforms.

As a blockchain start-up owner, you can also utilize the exchange marketing strategy (peer-to-peer marketing). This concept exploits the idea of treating users as informal influencers. This could include offering exclusive deals to your customers, such as free or extended access to products and tokenized loyalty rewards. These deals incentivize customers to spread the word about your company and its products to their social groups. 

#3. Build a Community of Followers

Blockchain technology is still evolving and fairly new. However, it’s quickly garnering a decent number of passionate followers. Thousands of enthusiastic users are actively engaging with one another on various social media networks and online forums.

For a blockchain start-up, it is important to update your followers on your company’s progress. One can actively connect with their audience by regularly posting new content about their projects on various online platforms. These may include Reddit, Telegram but not limited to the numerous messaging apps available. A strategy like this helps people understand more about your company and the products you offer. 

This marketing technique takes advantage of the most robust market space in our generation – social media. Social media can be used to effectively syndicate content while increasing your business’s visibility. 

#4. Partnership Marketing

Partnership marketing is a collaboration with a business /company that has a direct relationship with a market you intend to tap into. This marketing strategy is ideally built on a mutually beneficial arrangement for both parties. It is important to ensure the company you partner with is not your direct competitor. Instead, partner with a company that compliments your business.

#5. Publish a White Paper

Before getting involved with your company, prospective investors and clients will set out to gather more information about your business. Publishing a white paper will help them understand the intricate technology your company is built on.

A white paper is an authoritative report issued by a company to promote the features of a solution a product or service offers. Publishing a white paper helps readers make informed decisions, understand an issue, or solve a problem in their space. For a start-up, you can present a problem and publish a white paper explaining how your blockchain product or service will solve it. You can then post your white paper on your website and other blockchain and crypto forums. 

Final Thoughts

Blockchain technology is a relatively young tech. And as such, the general public is oblivious of its existence or how it works. A strong marketing strategy will help you leverage your company’s potential to your target niche, and hopefully, that coveted space in the media. After a successful marketing campaign, your start-up company might very well be a candidate for a popular media feature. 

Categories
Cryptocurrencies

SpectroCoin wallet Review: Is Spectrocoin a Safe Custodial Wallet?

Spectrocoin wallet is the official crypto vault for the larger Spectrocoin blockchain platform. It was launched in 2014, a year after the establishment of the Spectrocoin exchange by Juѕtas Dоbіlіаuѕkаѕ, Vytautas Kаrаlеvіčіuѕ, and Mаntаѕ Mockevičiu.

Spectrocoin wallet is the official crypto vault for the larger Spectrocoin blockchain platform. It was launched in 2014, a year after the establishment of the Spectrocoin exchange by Juѕtas Dоbіlіаuѕkаѕ, Vytautas Kаrаlеvіčіuѕ, and Mаntаѕ Mockevičiu.

Spectrocoin wallet is the official crypto vault for the larger Spectrocoin blockchain platform. It was launched in 2014, a year after the establishment of the Spectrocoin exchange by Juѕtas Dоbіlіаuѕkаѕ, Vytautas Kаrаlеvіčіuѕ, and Mаntаѕ Mockevičiu.

At the time of going public, the Spectrocoin wallet was a web service that allowed users to store Bitcoins and Euros. However, recent upgrades to the wallet have seen it embrace more crypto and fiat currencies, integrate more deposit and withdrawal methods, and even launch the Spectrocoin wallet mobile app.

This review will detail all Spectrocoin wallet features and querying the security measures it has employed in keeping your private keys safe. We will also provide you with a step-by-step guide on how to interact with the wallet, ease of use, and compare its effectiveness with similar multi-currency wallets.

Spectrocoin wallet key features

Cross-platform wallet: Spectrocoin wallet is a cross-platform wallet currently available as a web wallet and a mobile wallet. You can create a user account on their website or download the crypto vault app on Google Play Store, Apple App Store, and Microsoft Store for Windows phones.

API Integrated exchange: Spectrocoin blockchain platform started as a crypto exchange. The wallet dashboard features an API integration tool that you can use to access and use the Spectrocoin exchange.

Integrates Spectrocoin debit card: In addition to the exchange and crypto wallet, the Spectrocoin blockchain platform also launched a debit card. Wallet users are free to apply for the debit card, allowing automatic crypto conversion to Euro for ATM withdrawal and Point of Sale payments.

Purchase crypto via Fiat deposits: Spectrocoin has also integrated more payment processing methods than most other multi-currency wallets. Deposits into the wallet may be in the form of bank transfers, Cryptocurrencies from other wallets or exchanges, credit/debit cards, electronic wallets like Skrill and Neteller, and even Gold.

Security features

Password: The Spectrocoin wallets (both web and mobile apps) are secured by the passphrase you set when creating your user account.

Two-factor authentication: Spectrocoin embraces two-factor authentication and allows you to verify and authorize crypto transactions on your wallet via SMS notification, Google Authenticator, and Email authentication.

Cold storages: Spectrocoin is a custodial wallet that stores your private keys on your behalf. According to the platform developers, most of these private keys are held in highly secure third-party servers. They also add that only 1% of the total digital assets under their care are held in hot wallets.

Military-grade encryption: All of your private data held by the Spectrocoin wallet, including the wallet’s communications with exchanges and other third-party platforms, is highly encrypted.

How to set and activate the SpectroCoin wallet

Step 1: Start by downloading the Spectrocoin wallet for your respective phone’s operating system.

Step 2: Install and launch the app.

Step 3: Complete the user profile by keying in your wallet’s email and country of residence

Step 4: Create a multi-character passphrase for your wallet

Step 5: Agree with Spectrocoin’s terms of conditions and click ‘Sign Up.’

Step 6: You will now be asked to complete the ‘Know Your Customer’ procedures by emailing them a copy of your email and selfie

Step 7: You will receive an email notification informing you that your SpectroCoin wallet is now active and ready to use

Alternatively:

Create a user account by linking the wallet to your Google Account or Facebook Profile

How to add/receive crypto into your SpectroCoin wallet

Step 1: Log in to your Spectrocoin wallet, and on the user dashboard, tap on the “Receive” icon.

Step 2: Copy the public wallet address or its QR code and forward it to the party sending you coins.

Alternatively:

Step 3: Use the buy option to purchase and swap crypto on the SpectroCoin exchange

Step 4: Follow the prompts to make a purchase and move the coins to the wallet once successful.

How to send crypto from your SpectroCoin wallet

Step 1: Log in to your SpectroCoin and click on the “Send” icon.

Step 2: Since Spectrocoin is a multi-currency wallet, select the cryptocoin you want to send

Step 3: On the transfer window, enter the recipient’s wallet address as well as the amount of crypto you want them to receive

Step 4: Check that the transfer details are okay and hit send.

SpectroCoin wallet ease of use

Spectrocoin wallet has one of the most interactive and easily navigable user interfaces. The processes of creating a user account on the wallet or sending and receiving coins into and out of the wallet are also quite straightforward. Moreover, it is multilingual and available in 10+ languages.

By using the wallet, you technically have access to all the other crypto-related resources offered by the Spectrocoin blockchain platform, including their exchange, debit card, and merchant tools.

SpectroCoin wallet supported currencies and countries.

Spectrocoin is a multi-currency wallet that supports 12 cryptocurrencies, including Bitcoin, Ripple, Litecoin, Dash, Stellar Lumens, NEM, Tether, TrueUSD, and USD coins. Besides, you can purchase cryptos on the SpectroCoin exchange using 30+ fiat currencies.

The wallet is currently available in over 150 countries across the world.

SpectroCoin wallet cost and fees

Spectrocoin is a free wallet that does not charge you to download or store your crypto therein. Crypto transfers to other Spectrocoin wallets are also free. However, you will have to part with several fees as you interact with the platform, including a network charge imposed on all outbound transfers to non-SpectroCoin wallets and exchanges. These are highly variable and largely dependent on such factors as the type of coin and transaction amounts.

Credit card purchases attract an average fee that amounts to 5.5% of the transaction amounts. And while SEPA bank transfers to the wallet are free, you can only deposit Euros and, therefore, have to cover the currency conversion fees. Electronic transfer fees, on the other hand, range from 2-3% of the transaction amounts. 

SpectroCoin wallet customer support

SpectroCoin has a readily available customer support team available via live chat on the company website, on the phone, via email, and even on different social media platforms. Interestingly, you can also visit their physical address at their offices in London.

What are the pros and cons of using the SpectroCoin wallet?

Pros:

  • Spectrocoin employs such reliable security measures as two-factor-authentication
  • The wallet supports multiple payment processing systems.
  • Spectrocoin is an all-in-one platform that gives you access to both the wallet, crypto exchange, debit card.
  • The wallet has an easy and straightforward registration process.

Cons:                                                            

  • Spectrocoin wallet doesn’t support anonymous user registration or trading.
  • It is not an open-sourced wallet
  • You have limited control over your digital assets as the wallet stores the private keys on your behalf

Comparing SpectroCoin wallet with other Multi-currency wallets

SpectroCoin wallet vs. eToro wallet

SoectroCoin and eToro wallets are similar to some extent in that they both are custodial wallets and part of a larger crypto platform. They both avail such additional services as a crypto exchange in the case of eToro and exchange and debit cards to SpectroCoin users. They also have highly intuitive platforms designed for both experienced and beginner crypto traders. They are widely available in 100+ countries and maintain a readily available customer support system.

But while eToro supports 20+ cryptocurrencies, tokens, and hordes of fiat currencies, SpectroCoin supports 12 cryptos and one fiat currency.

Verdict: Is SpectroCoin’s wallet safe?

Spectrocoin is a custodial wallet that stores and secures private keys on behalf of their clients. And some of the security and privacy measures it has taken to these assets safe include maintaining as much as 99% of these coins in cold storage. It also demands that wallet users pass the KYC requirements to deter and possibly eliminate fraud. Moreover, all crypto transactions, especially outbound coin transfers, must be subjected to two-factor authentication. We consider these measures adequate, and the fact that it has never been hacked is enough testament to their effectiveness.

Categories
Crypto Daily Topic

What’s IoTex All About? 

The Internet of things (IoT) is touted to be the next big thing in technology. IoT is the concept of connecting devices with each other to be of better use to us. It’s not complicated at all: think of your hot shower turning on 5 minutes after you wake up, or your coffee maker starting to make coffee as soon as 20 minutes after that. It’s a concept designed to leverage the technology behind us to make our lives easier. 

The Internet of things (IoT) is touted to be the next big thing in technology. IoT is the concept of connecting devices with each other to be of better use to us. It’s not complicated at all: think of your hot shower turning on 5 minutes after you wake up, or your coffee maker starting to make coffee as soon as 20 minutes after that. It’s a concept designed to leverage the technology behind us to make our lives easier. 

The Internet of things (IoT) is touted to be the next big thing in technology. IoT is the concept of connecting devices with each other to be of better use to us. It’s not complicated at all: think of your hot shower turning on 5 minutes after you wake up, or your coffee maker starting to make coffee as soon as 20 minutes after that. It’s a concept designed to leverage the technology behind us to make our lives easier. 

Already, IoT is alive and functioning in various forms across the world. The problem is that existing IoT devices are operating in decentralized systems, raising scalability problems, high costs, privacy, and security concerns. 

A blockchain-based IoT system could solve this by facilitating more scalability, better privacy, and cost-effective operations. Storing data in the blockchain reduces the chances of it being hacked or abused. Also, blockchain-powered smart contracts could enable automatic coordination with devices, creating a more seamless and functional system. 

But then there’s also the problem of current blockchains having scalability issues. For instance, the most popular blockchain – the Bitcoin blockchain, can handle just 7 transactions per second, which is way below the threshold of what would be considered a scalable system to support millions of users across the world every single second. 

IoTex is a project that wants to solve this problem. It calls itself “the internet of things, reimagined.” This article explores the IoTex network to unearth what innovations it brings to the space.

Breaking Down IoTeX

IoTex is a blockchain effort that wants to change the entire concept of the Internet of Things by creating a more trusted, worldwide network of both virtual and physical things. 

The IoTex team consists of people with vast experience in cryptocurrency, engineering, and social media giants like Facebook and Google. The IoTex team wants to “drive end-to-end trust throughout the entire life cycle in an IoT network, including data collection, transport, storage, and utilization.” 

IoTex wants to achieve this through four breakthroughs: 

  • A “blockchains-in-blockchain” solution promoting distributedness, scalability, and privacy in the most cost-effective way possible.
  • True privacy supported by a reliable payment model, ring signatures, and ‘bulletproof’ code.
  • Fast confirmation of transactions with instant finality, dramatically increasing the network’s throughput and lowering transaction fees.
  • A lightweight architecture design for the most significant applications across various industries.

IoTex: Highlights

Roll-DPoS Consensus: a variation of Delegated Proof of Stake of consensus designed to handle high scalability without compromising on decentralization and security.

A Layer 2 chain as a service: a technology that utilizes the blockchains-in-blockchain setup to support intense computing and high-level storage. 

Edge trusted computing: a technology that powers the shared economy in a way that supports trust and privacy.

Cross network interoperability: The IoTex core chain is designed for cross-chain interactions with other blockchains, as it does with Layer 2 chains in the larger IoTex network. This creates better privacy of assets on those other chains as well as cross-chain governance.

Roll-DPoS consensus

IoTex utilizes the Roll-DPoS consensus mechanism to provide high levels of scalability. With Roll-DPoS, any node can nominate themselves to be a block producer, with network participants voting for the node of their choice. The mechanism operates in periods known as ‘epochs.’ Before a new epoch starts, the nodes that receive the highest number of votes form a ‘pool of candidates” out of which block producers are selected randomly using a Deterministic Random Bit Generator (DRBG). 

Block producers alternate in proposing and confirming blocks, and use the Practical Byzantine Fault Tolerance (PBFT) mechanism to reach a consensus. In every epoch, around 360 blocks are produced. Black producers are replaced at the beginning of every epoch to promote decentralization and security.

The IOTX Token

IOTX is the native cryptocurrency of the IoTex network. It’s an essential part of the network, playing the following roles and more: 

  • As a governance mechanism – network participants must stake in IOTX to participate in voting for block producers, network referendums, and various network decisions
  • As payment for gas fees: to transact sent execute smart contracts on IoTex, one must pay ‘gas’ fees
  • As payment for operation cost for Layer 2 chains: a network user must stake in IOTX before provisioning a Layer 2 chain

The IOTX token was distributed in the following manner: 

  • Private sale tokens: 24%
  • Community development tokens: 6%
  • Team tokens: 25%
  • Ecosystem development tokens: 18%
  • Roll-DPoS mining tokens: 12%
  • Foundation tokens: 25%

IOTX: Key Metrics

As of September 29, 2020, IOTX traded at $. 0 08097 with a market cap of $39, 059, 090 that placed it at #164. It has a 24-hour volume of $10,474,005 and a circulating supply of 4,823,952,133, a total and maximum supply of 9.7 and 10 billion, respectively. IOTX’s highest price ever was $0.088037 (Jun 02, 2018), while its all-time low was $0.002239 (March 13, 2020). 

Where to Buy and Store IOTX

You can purchase IOTX from any of the following exchanges: Binance, MXC, HotBit, VCC Exchange, CITEX, KuCoin, WazirX, CoinDCX, Upbit, Gate.io, Coinone, IDEX, Bittrex, and Uniswap. The token is listed as a market pair with currencies like BTC, ETH, USDT, WETH, and KRW. 

For storage, options include Trust Wallet, Cobo, IoTex Mobile, IoTex Desktop, and imToken wallet.

Final Thoughts

IoTex is not doing anything groundbreaking, but it’s challenging the IoT game with its trust-based model and a blockchain-in-blockchain model that solves the enduring problem of scalability. Nevertheless, the team will have to keep innovating to remain competitive in both the IoT and blockchain spaces.

Categories
Forex Assets

Trading The CAD/SEK Forex Exotic Currency Pair & Analyzing The Costs Involved

Introduction

Introduction

Introduction

CAD/SEK is a Forex exotic currency pair, where CAD is the primary currency of Canada, and SEK (Swedish Krona) is the currency of Sweden. In this exotic currency pair, CAD is considered the base currency, and SEK as the quote currency. This pair’s price determines the value of SEK, which is equivalent to one CAD. We can quote it as 1 CAD per X numbers of SEK. For example, if the CADSEK pair’s value is at 6.5877, we would need almost 6.5877 SEK to buy one CAD.

CAD/SEK Specification

Spread

In all the financial markets, the spread represents the difference between the Bid and Ask prices. It is typically a charge that is deducted by the Forex broker. These spread values vary on the type of execution model used for trade execution.

The spread of the CAD/SEK pair on ECN is 39 pips, and on the STP model account is 44 pips.

Fees

The trading fees that forex brokers are similar to the stock market. It is deducted from the traders’ accounts as soon as they open a new position. There is no fee charged on STP accounts, but a few pips are charged on ECN accounts.

Slippage

Slippage occurs when a trader opens a trade at a price, but it opens at another price by expanding the spread. The main reason for the slippage to occur is the market volatility and the broker’s execution speed.

Trading Range in CAD/SEK

Procedure to assess Pip Ranges

  1. Add the ATR indicator to your chart
  2. Set the period to 1
  3. Add a 200-period SMA to this indicator
  4. Shrink the chart so you can assess a large time period
  5. Select your desired timeframe
  6. Measure the floor level and set this value as the min
  7. Measure the level of the 200-period SMA and set this as the average
  8. Measure the peak levels and set this as Max.

CAD/SEK Cost as a Percent of the Trading Range

The below tables represent the percentage values of trading costs involved while trading this particular Forex asset in various time frames. Please note that these values must be used for directional purposes only. So, for instance, if the percentage of costs involved is high in the one-hour time frame, it implies that this pair is expensive to trade in that particular time frame.

ECN Model Account 

Spread = 39 | Slippage = 5 | Trading fee = 8

Total cost = Spread + Slippage + Trading Fee

= 39 + 5 + 8 = 52

STP Model Account

Spread = 44 | Slippage = 5 | Trading fee = 0

Total cost = Spread + Slippage + Trading Fee

= 39 + 5 + 0 = 49

The Ideal way to trade the CADSEK

The CAD/SEK is an exotic cross currency pair with sufficient liquidity. As a result, traders may find it easy to trade in this pair. If we look at the table, we would see that the percentage values did not move above 65%, representing a lower trading fee even in the lower timeframe. Therefore, trading in this currency pair is suitable for intraday, swing, and even scalping. However, the best decision is to trade when the cost of trading is at the average value.

There is another way to reduce the cost while trading this pair, and it is to place a pending order. We can either place a limit or stop order instead of the market order. In that case, the slippage won’t be considered while calculating the total costs. Therefore, in our example, the overall cost will be reduced by five pips, as shown below.

STP Model Account (Using Limit Orders)

Spread = 44 | Slippage = 0 | Trading fee = 0

Total cost = Spread + Slippage + Trading Fee

= 44 + 0 + 0 = 44

Categories
Forex Education

Getting Started with your First Historical Simulation

Introduction

Introduction

Introduction

In the previous section, we learned the steps to create a trading strategy. At this stage of the trading strategy development, we will focus on the strategy’s simulation process using historical data.

What is the Historical Simulation?

The simulation is defined as a mathematical representation that describes a system or process, making it possible to generate forecasts of such a system.

As the years have advanced, computational technologies have evolved to allow many processes simultaneously performed.  Compared to what a processor could do 40 years ago, a mere smartphone outruns any of them. In this context, the trading strategies simulation has also done so, moving from the simulation using printed paper charts to the current computer systems we observe today.

By running a historical simulation on a trading strategy, the developer should be able to estimate the gains and losses the strategy would have generated under historic market conditions within a given period.

However, while the benefit of executing a historical simulation enables one to estimate the profits and losses and whether the strategy is profitable or not, this statement should be analyzed by the developer throughout the trading strategy developing process.

Getting Started

Once the developer has completed a trading strategy, including entry and exit rules, as well as the definition of risk management and position sizing, it is necessary to formulate the rules of the strategy using a computer language. This way, the trading simulation software will execute the rules algorithm and apply it to the study’s financial dataset.

Several programming languages are able to carry out the trading strategy simulation, such as MQL4 of MetaTrader, Easy Language of Trade Station, or Python. However, for this educational article, we will continue to use the MetaTrader MQL4 language.

First Steps in the Simulator

MetaTrader 4 offers its Strategy Tester to simulate trading strategies. In the following figure, we observe the Strategy Tester terminal, in which we can develop a historical simulation of any trading strategy under study. 

The figure highlights that Strategy Tester has a user-friendly and intuitive interface for the developer, who can select the Expert Advisor that will contain the trading strategy to simulate. Similarly, the user can choose both the financial market, the timeframe, and the date span in which the simulation should run.

Running the First Simulation in Strategy Tester

In this example, we will continue using a moving-average-crossover-based trading strategy. To recap, this strategy is based on the following rules:

  • A buy position will be opened when the 5-hour weighted moving average (LWMA) crosses above the 55-hour simple moving average (SMA). 
  • A sell position will be activated when the 5-hour LWMA crosses below the 55-hour SMA.
  • The buy position will be closed when the LWMA 5-hour has crossed below the SMA 20-hour.
  • The sell position will be closed when the LWMA 5-hour has crossed over the SMA 20-hour.
  • The position sizing will be a constant 0.1-lot.
  • Only one trade at a time is allowed.

The criteria for the execution of the historical simulation are as follows:

  • Market to simulate: GBPUSD pair.
  • Timeframe: 1 hour.
  • Simulation range: from January/02/2014 to October/02/2020.

From the simulation’s execution, we observe the following result provided by the Strategy Tester at the end of the simulation.

From the above figure, we note that the balance line was reduced by $2,230.63 from the initial balance of $10,000, reaching a final balance of $7,769.37. This result leads us to conclude that the average-crossover strategy is not profitable. However, this is just a preliminary result.  It is still possible that we could make this strategy profitable through an optimization process, where we will assess what parameter values perform the best.  We could also add stop-loss and take-profit targets that statistically boost the system into profitable territory.

Conclusions

In this educational article, we have seen the first steps to perform a historical simulation. This process provides the developer with an overview of the strategy’s performance in a given financial market under certain conditions. We highlight that the performance conditions could repeat in the future. For this reason, once evaluated the strategy feasibility in terms of profitability, the developer should test the trading strategy during a specific period with paper money in real-time.

On the other hand, the profitable or non-profitable result is just a snapshot of the strategy’s performance. During the optimization process, the developer will investigate the parameters that provide higher profitability or lower risk for the investor.

The next educational article will review the simulator’s information in detail once the historical simulation has been executed.

Suggested Readings

  • Jaekle, U., Tomasini, E.; Trading Systems: A New Approach to System Development and Portfolio Optimisation; Harriman House Ltd.; 1st Edition (2009).
  • Pardo, R.; The Evaluation and Optimization of Trading Strategies; John Wiley & Sons; 2nd Edition (2008).
Categories
Crypto Guides

Is Tezos The Most Robust Cryptocurrency?

Introduction

Introduction

Introduction

Tezos is a decentralized, highly secure, transparent, and smart contract enabled blockchain governed by itself. It is a blockchain network associated with a digital token known as Tez or Tezzie (XTZ). Tezos doesn’t mine Tez. Instead, the token holder is rewarded under the consensus mechanism for participating in the proof-of-stake system.

A digital commonwealth group, sharing common interests and goals, is linked together to govern the Tezos platform. Tezos aims to become the most robust cryptocurrency blockchain by working together with its token holders to build more democratic protocol with the time. 

What is Tezos Attempting to Achieve? 

Tezos team wants to develop the most adaptable cryptocurrency project. It provides a token holder with equal governing power and is trying to avoid a hard fork situation. In which a community splits and starts competing with each other like in Bitcoin cash and Ethereum DAO. Tezos is implementing soft forks in which the community regularly updates the blockchain for constant growth. They are using (DAO) Decentralised Autonomous Organization system where every decision is taken after community discussion. This will make this more self amendable and upgradeable system.  

How Tezos Works? 

Tezos uses a proof of stake algorithm, and it can support 40 transactions/second on the network. It uses the Michelson coding language, which proceeds with formal verification to avoid any bugs in the network. To create error fee smart contracts, they use a mathematically provable code. In this network, the stakers are known as bakers.

To make delegate changes, you need to have 10,000 Tezos tokens and a bond. Most probably to make the system more democratic, Tezos has removed the miners to reduce their control power in the network. It is absorbing good elements from different blockchains to make it self-governing, self-evolving, and adaptable. If you notice anything appealing in any other blockchain, you can propose it to the community that approves the change for the Tezos network. 

Tezos Architecture

The protocol is divided into layers:

Network Protocol  – Here, the peer-to-peer communication is done to broadcast the decisions between the nodes.

Transaction Protocol – Here, the blockchain accounting model is implemented. 

Consensus Protocol – This consensus protocol verifies the agreement to confirm transactions. 

The Tezos Accounts

Implicit Account – It’s the most commonly used account. It has a public key and private key held by the account owner to secure the account balance. 

Originated Account – The formally verified smart contract account with the implicit account is known as an originated account.

Tezos Unique Capabilities

  • Self-amending and on-chain governance
  • Formal verification of smart contracts
  • Liquid proof of stake system 

Is Tezos a Good Investment?

Tezos is the youngest of all existing cryptocurrencies and focused upon the chain governance system. They claim to become a future-proof platform through on-chain governance that attracts a huge number of investors. Thus, Tezos seems to be a good investment. The good news is that most of the popular cryptocurrency investors are getting involved in Tezos. We should also consider that they don’t have a clear road map for the future, but the other dominating cryptocurrencies community is working in a specific direction. To conclude, despite Tezos being one of the most robust cryptos out there, its success or failure depends on active community decisions. 

Categories
Forex Daily Topic Forex Price Action

Trading Within Last Weekly Range

In today’s lesson, we will demonstrate an example of a chart where the price is having a retracement within the last weekly range. The price produces a double bottom and makes a breakout at the neckline. It then consolidates but does not head towards the North as it normally does when it makes a breakout at weekly high/low. Let us proceed and find out the possible reason behind it.

In today’s lesson, we will demonstrate an example of a chart where the price is having a retracement within the last weekly range. The price produces a double bottom and makes a breakout at the neckline. It then consolidates but does not head towards the North as it normally does when it makes a breakout at weekly high/low. Let us proceed and find out the possible reason behind it.

In today’s lesson, we will demonstrate an example of a chart where the price is having a retracement within the last weekly range. The price produces a double bottom and makes a breakout at the neckline. It then consolidates but does not head towards the North as it normally does when it makes a breakout at weekly high/low. Let us proceed and find out the possible reason behind it.

The price makes a long bearish move and finds its support. Upon producing a bullish engulfing candle, it heads towards the North and comes back again. At the support zone, it produces a bullish inside bar. Let us see what happens next.

The price heads towards the North next week. It means it is trading within the last week’s range. The price is at the last swing high. If it makes a bullish breakout, the buyers may want to go long at its weakness.

The chart produces two bearish candles followed by a bullish engulfing candle closing within the last swing high. It seems that the price may consolidate more to find its way.

The price upon producing a spinning top followed by a bullish engulfing candle makes a bullish breakout at the last swing high. It is a neckline breakout of a double bottom. The buyers may keep their eyes on the chart to go long on its weakness.

The price produces a bearish inside bar followed by a spinning top with a bullish body. Then, it produces a bullish candle closing above consolidation resistance. Since it is a breakout at the resistance, it is supposed to be a buy signal. The question is whether the buyers should trigger a long entry or not. Let us see the next chart.

The price gets choppy, struggling to make a breakout towards the North. The buyers would not love to see such price action after triggering the entry. If the price makes a breakout at the last week high/low, traders wait for the price to consolidate and produce a bullish/bearish reversal candle to take entry upon a breakout. On the other hand, if the price trades within last week’s range, the price usually makes retracement (instead of consolidation) to offer entry. The Fibonacci level, such as the 38.2% and 61.8%, play a significant role in producing the reversal candle. In today’s chart, the price is in the weekly range. Thus, traders are to wait for the price to make a retracement to offer them entry. It rather consolidates, which ends up making the price choppy.