Tag: Education

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Forex Basic Strategies

Forex Momentum Trading With The Help of RSI & MA Indicators

Introduction

Introduction

Introduction

If you are a trader, you should have some good ideas about the forex market. After having the basic knowledge and related stuff, you, as a trader, need to find a profitable forex strategy. After that, you need to find a proven track record of your strategy.

Therefore, you can easily implement it and start earning through your trades within a short time. However, it would help if you kept in mind that the forex is an uncertain and unstable trading market. Therefore, you must have a profitable and excellent trading strategy if you want to sustain here.

If you search on the internet, you will find thousands of proven strategies out there. The good thing is that experienced traders or mathematicians have created most of the strategies. You have to choose the best one for you.

However, the momentum-based strategy is profitable and famous too. Lots of traders are using this one as their primary trading strategy. However, if you find another suitable strategy, you can go for it besides the momentum trading strategy to boost your probability.

What is The Momentum Trading Strategy?

Momentum is a term that refers to buying a currency pair when it goes up and selling when it goes down. It is a very popular trading strategy among most professional traders.

When a big volume starts a movement, it creates a reliable market trend. Therefore, market momentum will be towards the trend that we can identify by reading the chart. In a strong bullish momentum, the price will aggressively create higher highs with a constant speed.

Similarly, in a strong bearish momentum, the price will create lower lows. After identifying the market momentum, we will move to one timeframe lower to take the trade.

However, forex trading always has an uncertain environment. No one can guarantee a 100% movement of price. However, when the market is in a trend, we can make a decent profit by using the momentum-based trading strategy.

Momentum Trading Strategy

Here is the most important part that you are looking for passionately. You will find the best momentum trading strategy for both the newbie and experienced traders. This guideline will answer all your queries.

Let’s have a look at the step by step approach of the momentum trading strategy.

Select the Currency Pair

First, you need to determine the price change from the last three months of some selected currency pairs. Also, don’t forget to do this calculation for the weekend. Once you find the last three months’ price changes, you need to research the last 13 weeks’ price movement.

In terms of currency pair, there is no clear indication of how much pair you should choose. Nevertheless, the ideal and wise option is to go through seven major currency pairs and cross pairs. It is better to put less importance on exotic pairs as they are risky because of their volatility.

After calculating the last three months’ price changes, it’s time to select the currency pair that moved much more than the others. As it is a proven profitable trading strategy, a currency pair can provide a 17% average annual profit. As per the last seven years of market observation, three months’ price has become a reliable factor while selecting the momentum-based strategy.

Entry

As we have a predetermined trend, you need to implement a trend continuation trading strategy to improve your overall trading result better. Moreover, many trend continuation strategies are there for you; you need to select a suitable one. In this trading strategy, we will use 20 Dynamic Exponential Moving Average (EMA) as a trend continuation indicator.

You should enter the trade towards the direction based on market momentum once the price rejects the 20 EMA with its body. Moreover, there is a good and effective solution for determining the trends’ strength: RSI. RSI is a good indicator, as well.

RSI stands for the Relative Strength Index. It has a 0-100 levels indicator. If the price goes below 30 levels, the price is likely to reverse towards the upside. On the other hand, if the price moves above the 70 RSI, it is likely to move down.

For a sell trade follow the following condition:

  • The price is moving towards the direction set in the market momentum.
  • The RSI is moving down from the 70 or 80 levels.
  • Price rejects the 20 EMA with a reversal candlestick formation.

Similarly, for a buy trade follow the following condition:

  • The price is moving towards the direction set in the market momentum.
  • The RSI is moving up from the 20 to 30 levels.
  • Price rejects the 20 EMA with a reversal candlestick formation.

Later on, enter the trade as soon as the candle closes above or below the dynamic level.

Stop Loss and Take Profit

After taking a trade, you need to determine the strength of the trend. You can set the stop loss 15 pips above or below the reversal candle or 20 days Average True Range (ATR).

To set the take profit, you need to determine how strong the running trend is. Moreover, impulsive pressure will indicate that the price may break the near-term support or resistance level. In that case, you can increase your take profit level. Alternatively, you can book some profit once you see the price stalling at the support or resistance levels.

Summary

In a nutshell, the summary of the entire guideline is here-

  • Find out the direction by calculating the last 13 weeks of market momentum.
  • Follow the market direction using a dynamic and hourly candle level of 20 EMA with a proper candlestick pattern.
  • According to the price action or ATR, set your stop-loss.
  • Following the market movement, you can set your take profit.

In this momentum trading strategy, trade management is the most challenging part as it requires to follow the market trend strongly. Since we know the forex market is uncertain, we should follow the market trend robustly. Moreover, you should follow an appropriate money management system that goes with your personality, and for each trade, it is wise to take less than 2% risk.

Categories
Forex Education

Starting to Build a Trading System

Introduction

Introduction

Introduction

A trading system is a set of rules to enter and exit a financial market without human intervention. It could also generate entry signals even when the discretionary trader could not enter the market. However, what should be the first step to create and design a trading system? In this educational post, we will review how to start to create a trading system.

Getting Started

Similarly to any business project, a trading system starts with an idea. This idea could arise from different sources, such as seminars, forum conversations, or specialized magazines, among other sources. 

Once the idea is defined, the developer should create a conceptual model of the trading system, where the developer should describe the basic criteria the system should include. After this process, the programming task must incorporate the following rules:

  • An entry method, 
  • The exit criteria, and
  • The money management formula.

The exit criteria must contain rules corresponding to “risk management” as the initial stop loss level, the final stop or a trailing stop rule, the exit profit target level, and how much money will risk in each trade. Also, they must contain “money management” rules as the position size on each trade. In other words, the system developer must consider that a viable trading system should provide an adequate risk and money management criterion.

The next question to address is, what timeframe should be traded? In general, retail traders tend to think that intraday trading involves less risk than swing trading. However, as the Dow Theory states, the primary trend tends to prevail over the secondary and minor trends. In this context, an intraday trading system might require more monitoring than a swing trading system.

Once a timeframe to trade is chosen, the next decision is what market to trade? The market to trade should be determined in terms of its liquidity and volatility. The systematic investor should consider which liquidity and volatility fit best the trading system so that orders sent to the market hold the needed volatility to ensure a movement in an adequate time lapse.

The Importance of Data Provider

Once the systematic investor chose the market to trade, the developer must define which market data provider will be used by the system to perform market analysis/testing and trade execution. 

A market data provider without a trustable price data could drive the system investor toward problems in the trading system execution, such as in the orders execution process. For instance, Jaekle and Tomasini, in their work, comment that the most popular commodities data providers are CSI (www.csidata.com) and Pinnacle (www.pinnacledata.com); however, both the trading system investor and system developer must evaluate which data provider is best for the market to be traded.

Conclusions

In this educational article, we presented the firsts steps to build a trading system, which, as any business project, starts with an innovative idea or is the result of the investor’s creativity. Once the conceptual model is developed and the programming tasks completed, the trading developer must evaluate and validate the trading system, through back and forward tests analysis, before using real money. This stage will be presented in the next educational article.

 Finally, the following figure summarizes the process of developing a trading system.

Suggested Readings

  • Jaekle, U., Tomasini, E.; Trading Systems: A New Approach to System Development and Portfolio Optimisation; Harriman House Ltd.; 1st Edition (2009).
Categories
Cryptocurrencies

CoinPayments Crypto Wallet Review: Features, Safety, Pros and Cons?

CoinPayments claims to be the best wallet cum payment gateway for cryptocurrencies and has integrated a wide range of both operational and security features that back up this claim. Whether you are looking to pay for goods and services using crypto, want to invest in digital assets, or simply exchange one crypto for another, CoinPayments is designed to meet these needs. It supports numerous cryptocurrencies, including all the ERC20 tokens.

CoinPayments claims to be the best wallet cum payment gateway for cryptocurrencies and has integrated a wide range of both operational and security features that back up this claim. Whether you are looking to pay for goods and services using crypto, want to invest in digital assets, or simply exchange one crypto for another, CoinPayments is designed to meet these needs. It supports numerous cryptocurrencies, including all the ERC20 tokens.

CoinPayments claims to be the best wallet cum payment gateway for cryptocurrencies and has integrated a wide range of both operational and security features that back up this claim. Whether you are looking to pay for goods and services using crypto, want to invest in digital assets, or simply exchange one crypto for another, CoinPayments is designed to meet these needs. It supports numerous cryptocurrencies, including all the ERC20 tokens.

As a fully-fledged cryptocurrency payment platform, CoinPayments is more than a wallet. It provides POS features, crypto conversions, mobile applications, and other functionalities that support the efficient use of cryptocurrencies. Plus, the site offers secure payment processing and swift confirmations.

CoinPayments was launched back in 2013, becoming one of the earliest cryptoprocessors to support altcoins. It is also one of the largest altcoin platforms and supports over 1925 coins and tokens, including Bitcoin, Ethereum, and Litecoin. Note that, at the time of launch, all platforms only supported bitcoin. CoinPayments seized the opportunity to provide a secure processing platform that supports a broader collection of cryptocurrencies. It is one of the most reputable multi-currency wallets available for both PC and mobile users.

Key Features:

Multiplatform:

CoinPayments is available in the form of a desktop app and compatible with all popular operating systems like Linux, macOS, and Windows. The crypto wallet is also available as a mobile app for both Android and iOS devices. You can access your wallet any time, provided you have an internet connection.

Auto coin conversion:

CoinPayments offers auto conversions for some of their altcoins, where you can exchange one coin for another inexpensively and without leaving the site. This feature covers popular coins, including Bitcoin, Ethereum, and Litecoin.

Impressive POS:

CoinPayments wallet app has a feature-rich and highly intuitive design. All the crucial features are within reach and require little to no help to use. The platform is beginner-friendly, and so are mobile apps. There’s also an option to store your coins in CoinPayments secure online wallets.

GAP600 integrated for Swift conversions:

Most wallets rely on third-party software for swift crypto payment processing and swaps. These service providers aren’t always safe or reliable and come at a steep cost. CoinPayments, on the other hand, integrates GAP600 technology that provides for instant Bitcoin payments and deposits as well as real-time crypto transfer to exchanges or other wallets.

Inbuilt exchange:

Coinpayments wallet app inbuilt exchange makes it possible for you to purchase various cryptocurrencies without leaving the wallet. Users can also accept payments in cryptocurrency, making the platform a complete payment processor for both personal and business use.

PayByName:

You can also give the Coinpayments wallet app access to your phone book and activate the PayByName feature. This allows you to send crypto to your phonebook contacts without necessarily copying or importing their wallet address. The feature further boosts the efficiency of the Coinpayments app by eliminating the need to memorize the wallet address.

Security features:

i) Password: Like most crypto wallets and processors, CoinPayments requires users to create a unique password for their accounts during registration. The password has to be at least ten characters and distributed between numbers, letters, and special characters. You can copy and use the recommended password, which is usually very strong and secure, or create one you can easily remember.

ii) Crypto vaults: CoinPayments cryptocurrency vaults are the highlight of the platform’s security. Users can lock cryptos in these vaults for a specified period within which no withdrawals will be permitted. If someone tries to access the vaults before the due date, the system will flag and review the activity, but all your crypto will remain safely locked.

iii) Data encryption: CoinPayments is protected by SSL certificates, regular scanning, and advanced security algorithms that ensure all the information stored within the crypto app – including your personal details and private keys are highly encrypted.

iv) Instant transaction notifications: Users will receive notifications for all activity in their wallet, including deposits, withdrawals, exchanges, and other transactions via email. If the action is suspicious, you can reach the customer support team directly to investigate or cancel.

CoinPayments ease of use:

Coinpayments wallet isn’t just one of the oldest crypto wallets in the market but also has one of the most user-friendly user interfaces. Their web wallet has a simple, yet charming blue and white theme with all the important features neatly arranged within the wallet’s dashboard. It employs a classic menu bar with all the essential tools you will use regularly.

You can also scroll down to find resourceful information about the platform and its features. Both the desktop app and mobile apps are user-friendly and suitable for everyone, including newbies. They load fast and are light, effectively providing you with a swift payment processing experience.

Supported currencies and countries

CoinPayments is one of the most inclusive cryptocurrency wallets in the market, with support for 1925 altcoins, including Bitcoin and Bitcoin Cash, Ethereum Classic, Ether, Litecoin, POA Network Coins, Litecoin, and Ripple.

All the ERC20 token coins are also supported, and you can purchase different types of cryptos on this platform. CoinPayments currently has over 2.2 million users across 182 countries, making it one of the largest crypto wallets you will ever encounter.

CoinPayments cost and fees

If you plan to use CoinPayments for non-commercial applications, the platform is free. Simply sign up and proceed to swap cryptos for free. CoinPayments will prompt new users to create either a personal or business account.

If you create a business wallet, you will be subject to an incoming transaction fee of 0.5%, imposed on merchants using APIs and checkout systems. Users will also pay added fees imposed by network miners that offer transaction verification and confirmation when transferring cryptocurrencies out to exchanges and other wallets.

Customer support

CoinPayments customer support team can be accessed via several channels where you can seek solutions to common and technical issues regarding your account or transactions. If you are experiencing problems with your account, you can reach the support desk by training a support ticket on the company website.

Simply go to the Contact Us page and click on the support wizard link to create a unique code which you will then open in Fresh Desk. An online form is also available if you want to reach support via email. Alternatively, contact them via their different social media pages.

Setting up the CoinPayments crypto wallet

How to set the CoinPayments crypto wallet:

Step 1: Sign up or download the CoinPayments app

To use CoinPayments, you must create a user account. Simply click on the Sign-Up button on the top right of the site’s homepage to begin the registration process.

For mobile users, scroll to the bottom of the site and find respective links to the app in Google Play Store (Android) and App Store (iOS). Once downloaded, install the app and launch it. You can then access the Sign Up section for registration.

Step 2: Complete registration

On the registration window, you will be required to pick a personal or business account, input a username, first and second name, email address, password, country, and time zone. Make sure you provide accurate information and agree to the terms and conditions.

You will also be required to input a capture image text. Upon registration, a confirmation email will be sent, and you must verify ownership by clicking on the link in the email to start using the wallet.

Step 3: Process payments using CoinPayments

CoinPayments allows you to accept payments in cryptocurrency, purchase crypto, and process all kinds of crypto transactions once your account is verified. You can access your wallet using the PC website or mobile app as information is synced between the two. You can also purchase gift cards or integrate shopping cart plugins from popular vendors.

How to receive currencies with CoinPayments

Step 1: Log into your CoinPayments account. Navigate to Your Wallet on the dashboard and click on the respective cryptocurrency options in the command section. The process to this point is similar to sending payments.

Step 2: Click on Deposit/Receive to open a new window. You will be required to fill in your wallet address. Simply copy the address and paste it on the space provided. You can also accept cryptocurrency payments using the PayByName.

Step 3: Click on Deposit to add the crypto to your wallet. Deposits are processed within 1 to 2 hours. When other people send money to your wallet address, the amount is automatically added to your account.

How to send currencies with CoinPayments

Step 1: Log into your CoinPayments account. If you are a newly registered user, the dashboard will open to an account setup wizard. You can click on the wallet to send and receive payments or Merchant to receive payments for goods and services. However, it is important to finish configuring the merchant account if you plan to use CoinPayments as a payment method for your site.

Step 2: To send cryptocurrency, click on Your Wallet on the dashboard to open a window containing all your balances. Each currency is in a row, including the balance and command you wish to apply. Click on the respective crypto options button (like BTC Options for bitcoin) and select Send/Withdraw from the drop-down list.

Step 3: In the new window, input the amount you want to send and the recipient’s address. You can enter the amount in your preferred (supported) FIAT currency, and the system will automatically convert it to the crypto.

Step 4: Click on Request Withdrawal to send the crypto. CoinPayments will send you a confirmation email you must click on to confirm the withdrawal, so head to your email and finish the process.

CoinPayments supported currencies

CoinPayments has the largest support for altcoins and currently accepts Bitcoin, Ethereum, Litecoin, Velas, Apollo, and Badcoin.  The platform supports up to 1925+ altcoins, and the number continues to grow as merchants are allowed to add new coins.

You will also find support for several FIAT currencies, including the Dollar, Euro, Pound, Franc, and Yuan. Currently, the wallet supports 60+ FIAT currencies, which is above any other wallet.

Pros and Cons of CoinPayments crypto wallet

Pros

  • Safe and secure cryptocurrency transactions
  • Supports all popular coins and FIAT currencies
  • Buy, Send, receive, sell, convert cryptocurrency
  • Provides swift confirmations and instant withdrawals
  • Simple beginner-friendly navigation

Cons

  • Charges fee of 0.5% on incoming merchant transactions
  • Long registration process
  • Support tickets are time-consuming to generate

How does CoinPayments compare with other wallets?

CoinPayments vs. Citowise

CoinPayments is in a league of its own when it comes to cryptocurrency processing. The site supports numerous coins and offers on-site conversions and POS features you can integrate into your eCommerce. Unlike Citowise, which is fundamentally a crypto wallet for mobile users, CoinPayments is a crypto payment solution that includes a wallet for both desktop and mobile users. It has a lot more features for merchants and sits among the top crypto processing systems available online.

CoinPayments vs eToro

eToro is more like Citowise and supports a few cryptos for users seeking to transact popular coins. However, it is nothing compared to CoinPayments, which provides a comprehensive payment processing solution and wallet. The only downside is merchants are charged a 0.5% fee on incoming transactions. eToro is free for both personal and business applications, although the app is only available for mobile users.

Final words

CoinPayments is one of the best cryptocurrency processing platforms you will encounter. The payment processor was the first to support coins other than Bitcoin and currently has the largest coin support online. You can transact with all the popular options or even add a new currency. Concerning platform features, CoinPayments allows you to own a personal or business wallet with various functionalities.

You can send crypto, deposit funds to your account, receive crypto payments, and use the auto conversion feature to convert currencies in the middle of a transaction instantly. CoinPayments is available for both PC and mobile users, distinguishing itself from other app wallets. It is also very secure, boasting a growing reputation among users.

Categories
Forex Videos

How do public holidays affect the Forex market?

https://youtu.be/LMWlVGYKk2c

https://youtu.be/LMWlVGYKk2c

How do public holidays affect the Forex market?

Thank you for joining the forex academy educational video. In this video presentation, we will be looking at how public holidays affect the forex market.
Public holidays have various effects on the financial markets, including forex trading. For example, in institutional forex trading where banks, hedge funds, and institutions physically buy and sell currencies, which have to be delivered into bank accounts, in some situations, public holidays may require that settlement dates are postponed for one business day.
But in the world of retail currency trading, where traders trade contracts for difference or spread betting, this, of course, does not apply.
Bank holidays mean that the banks in the country where the holiday is taking place will be very unlikely to be trading in the forex market. And because banks are the biggest single participants in the forex markets, if they are on holiday, then the volume of transactions is typically reduced. When volume is reduced, this can have the effect of making the market static in the given currency pair are involved. But this thinning can also cause voids and gaps, which can also have the effect of creating spikes in price action.

As an example, when the Japanese have a public holiday, it is not unusual to see the USD JPY pair have periods of extra and volatility. While, if for example, the Euro area and the US shared a public holiday, such as the Christmas period, you would typically find thin market conditions and little volatility, especially when those two currencies are paired.
Another thing to consider, which most retail traders do not, is that there can often be extra volatility in price action in the 24 or 48 hours before a public holiday, and also so a day or two after a public holiday. This is known as the public holiday effect and is well-known, particularly in the stock market, where investors see extra volatility and usually extra buying during the run-up to public holidays.
Sometimes this is not quite so evident within the forex market; however, things to be considered are that large institutions do not like large exposed trading positions over weekends and public holidays. Often you will find that banks, institutions, and traders like to adjust positions by closing them out or switching between assets, for example, out of a currency and into a more stable asset such as gold, which is very bullish in the current market. This is known as hedging. Certainly, the longer the public holiday, the more likely you will see thinning in markets and where Christmas is the best example.
This type of situation can lead to extra price volatility in the run-up to public holidays, and you should bear this in mind before you place trades before, during, and after a public holiday.

And so, bank holidays can cause the forex market, on occasion, to act erratically and where fundamental and technical analysis sometimes has little or no bearing on price action. In other words, trade during public holidays at your peril. If you insist on trading during these periods, you should expect the unexpected and always maintain tight stop losses. And take note, the bigger the country, the less the volume going through, for example, the most widely traded currency in the United States dollar and if they are on holiday volume crashes, similarly with Europe with regard to the Euro currency.
Ensure that you have a good public holiday calendar which you can refer to in order to trade around public holidays
Here are the public holidays for August, September, and October 2020.

Categories
Forex Basic Strategies

Combining Moving Averages with Parabolic SAR To Generate Accurate Trading Signals

Introduction

Introduction

Introduction

Trend trading is a great way to earn money from the forex market. Any retail trading strategy based on a trend continuation pattern works well when it moves within a trend.  Therefore, in this trading strategy, we will take trades from minor corrections using the parabolic SAR towards the trend.

Furthermore, we will use a 100-period exponential moving average to determine the trend. If the price is trading above the 100 exponential moving average, we will consider the trend as an uptrend. If the price is trading below the 100-period exponential moving average, it will consider it a downtrend. We will follow a simple logic by considering buying trades when the market moves up and considering sell trades when the market is moving to drown.

However, there are no specific rules about the period of your moving average. Some traders are comfortable with 100 EMA, while some traders are compatible with 20 EMA or SMA. Therefore, if you’re trading in a lower timeframe, you can use any moving average from 20 to 100 periods. However, we will focus on 100 EMA as it provides good profitability based on swing trading ideas.

Why Should We Use Parabolic SAR?

Parabolic SAR is a forex trading indicator that stands for “stand and reverses.” This trading indicator was devised by J Welles, represented by some dots below and above the candlestick. In an uptrend, dots remain below the price and indicates a bullish pressure once the price is rejected from these dots. Similarly, in a downtrend, the dots form above the price, and the price starts to move once it gets rejected from the parabolic SAR.

In the image below, we can see a clear chart of the candlestick pattern.

Let’s plot the parabolic SAR in the price chart and see how it looks like.

It is visible that in an uptrend, Parabolic SAR is below the price, and in a downtrend, the parabolic SAR is above the price. This is why the parabolic SAR is considered as a stop and reverse indicator.

Furthermore, the parabolic SAR has a built-in stop-loss function. Once the price moves up or down with a new candle, the parabolic SAR changes with the price. Therefore, you can move your stop loss once the price creates a new higher or lower low. Furthermore, you can edit the primary parameter of Parabolic SAR from the indicator’s setting, but in this trading strategy, we will use the default format.

Moving Average with Parabolic SAR

If we use a 100-period exponential moving average, we can catch the major trend direction from the minor correction. The forex market Moves Like a zigzag. Therefore, there is a minor correction in a major bullish trend and minor bullish correction in a major downtrend. If we know the major trend, we can quickly enter the trade from a correction to get the maximum reward from the minimum risk.

In the forex market, parabolic SAR usually provides trading signals earlier than expected, which might create a negative impact on your trading result. Overall, any trend following indicator does not provide a good result when the price moves within a range. In most of the cases, markets follow the trend of about 35% of the time. Therefore, it is essential to filter out the conditions where the market is moving within a range.

We can eliminate the unexpected market behavior by using the 100 moving average as it will provide a more significant trend that will prevent over-trading. In the image below, we can see how the parabolic SAR provides false trading signals when the market moves within a range.

In the ranging market, it would be difficult to make a profit using this trading strategy. Therefore, it is better to use the 100 moving average to get the overall direction of the trend.

Moving Average With Parabolic SAR Trading Rules

Every trading strategy has its unique rules. In the moving average with the Parabolic SAR trading strategy, our main aim is to follow the trend towards the direction of 100 EMA.

Overall, we will follow simple rules as Complex trading rules make it challenging to implement it on the chart. You can make good profits with a simple trading strategy if you can utilize it well with appropriate trade management and money management rules.

Timeframe

The moving average with the Parabolic SAR trading strategy works well in all timeframes from 5 minutes to weekly charts. The longer timeframe will provide better trading results. However, it is better to stick to the 1 hour to daily chart as it can cover fresh moves driven by banks and financial institutes.

Currency Pair

There is no obligation to use a currency pair. However, it is better to use a currency pair that does not remain within a range for a long time like EURCHF. Therefore, all major and minor pairs are good to go with this trading strategy.

Buy Entry (Inverse for Sell Entry)

  • Identify the price above the 100 periods moving average. If the price is choppy at the 100 EMA, Ignore the price chart, and move to another market.
  • Identify the parabolic SAR to point dots below the candlestick, which will be a buy signal (above the candlestick is a sell signal).
  • Later on, place a buy stop order above the candlestick high.
  • Put your stop loss below the printed dot with some buffer.

Example of Parabolic SAR Strategy

At the image below and see how parabolic SAR provided a buy trade setup.

  • Notice that the price is moving in a range at the 100 EMA area with a violation. The blue horizontal line represents the support and resistance level, where the price is consolidating. In this consolidation, we will not take any trade.
  • If you look at the price structure, you can see the price is moving within a range from their resistance to support. On the price move above the 100 exponential moving average, you should put a pending order above the range, projecting that it will break out from the resistance level and create an impulsive bullish pressure.

Stop Loss and Take Profit Set

When you put the pending order above the resistance level, you should put a stop loss below red dots that have appeared below the candlestick. While setting the stop-loss, make sure to use some buffer of 10 to 15 pips.

Later on, hold the price until it points red dots above the price. The red dot above the price will indicate that sellers are entering the market, and there is a possibility to create a new lower low. Furthermore, while sitting the stop loss and take profit, you should follow the basic rules of price action, including the breakout and pullback.

Summary

Let’s summarize the moving average with the Parabolic SAR trading strategy:

  • You should look for a fresh trending movement above or below 100 exponential moving average.
  • Parabolic dots below the price will provide buy-entry, and parabolic dots above the price will indicate sell-entry.
  • You should avoid ranging markets where the price might violate parabolic dots.

Moreover, trade management and good trading psychology are mandatory for every trading strategy. You cannot make a decent profit until you know how to minimize the risk to get the maximum benefit from trade.

Categories
Cryptocurrencies

Copay Bitcoin Wallet Review: How Does It Work And Is It Secure?

Copay was developed by BitPay Inc. and introduced to the crypto industry in 2015. Its aim? To provide Bitcoin traders and enthusiasts with a single wallet that gives them absolute control over their funds. It is free and developed using open-sourced technology and is highly versatile. Key features that make this crypto wallet highly unique include its versatility and support for multiple operating systems, the fact that it is Bitcoin-specific, light, and highly transparent.

Copay was developed by BitPay Inc. and introduced to the crypto industry in 2015. Its aim? To provide Bitcoin traders and enthusiasts with a single wallet that gives them absolute control over their funds. It is free and developed using open-sourced technology and is highly versatile. Key features that make this crypto wallet highly unique include its versatility and support for multiple operating systems, the fact that it is Bitcoin-specific, light, and highly transparent.

Copay was developed by BitPay Inc. and introduced to the crypto industry in 2015. Its aim? To provide Bitcoin traders and enthusiasts with a single wallet that gives them absolute control over their funds. It is free and developed using open-sourced technology and is highly versatile. Key features that make this crypto wallet highly unique include its versatility and support for multiple operating systems, the fact that it is Bitcoin-specific, light, and highly transparent.

In this Copay Bitcoin wallet review, we will be explaining these features in detail, highlighting its security features, its pros and cons, and comparing it with equally popular wallets. We will also provide you with a step-by-step guide on how to install and activate the wallet, as well as how to send and receive Bitcoin.

Here is the detailed Copay wallet review:

Copay wallet key features

i) OS compatibility: Copay wallet is highly versatile and compatible with virtually any operating system. There is both a desktop and mobile app version of the wallet that is now compatible with all popular operating systems, including Windows, Linux, macOS, Android, and iOS.

ii) Bitcoin-specific: Unlike most other wallets that host hundreds of cryptocurrencies and altcoins, Copay is Bitcoin-specific. This implies that you can only deposit Bitcoin and its hard fork Bitcoin Cash into your Copay Wallet.

iii) Multiple accounts: There is no limit to the number of Bitcoin and Bitcoin Cash addresses you can host on the Copay wallet. This means that, unlike most other wallets that will only host one wallet address for each cryptocurrency or altcoin, you can hold as many private keys as you wish on the Copay Wallet.

iv) Compatible with hardware wallets: Copay bitcoin wallet is also compatible with several highly-secure crypto wallets, including Trezor and Ledger Nano S.. Such integration ensures that you get to enjoy the security aspects of an offline hardware wallet and the convenience of a mobile app wallet.

Security Features 

Password:

Like any other cryptocurrency wallet, Copay is secured with a multi-character password. You get to set this password when installing the wallet.

Recovery seed:

During the Copay wallet installation and activation process, you will be provided with a 12-word recovery seed. Record it on a piece of paper and store it in a secure environment. Note that the seed will be needed to reset the wallet password or recover your private keys should you lose the device holding the wallet.

Hierarchically deterministic:

The Copay Bitcoin wallet is hierarchically deterministic. This means that the wallet automatically generates new public and private addresses for every transaction, which makes it hard for hackers and other third parties to track your Bitcoin transactions.

Bitcoin Payment Protocol (BIP):

This feature is designed to guide users when making payments and prevent sending cryptocurrency to the wrong address. Technically, addresses are just a long line of numbers and letters, and often crypto users get them wrong.  BIP ensures you are sending it to the right address by helping you verify the wallet address before sending bitcoins.

Open source:

A Copay Bitcoin wallet is developed on an open-sourced technology. This guarantees its transparency as it is subjected to a lot of scrutiny and vetting by the crypto and blockchain industry experts. That further enhances its security.

Multi-signature:

Copay wallet allows multiple users to use one wallet. You can think of it as a joint account where 2 of 3 parties must sign to authorize the execution of a transaction.

Copay bitcoin wallet ease of use

Copay Bitcoin wallet has one of the friendliest user interfaces. The wallet is also highly customizable and allows you to tweak such aspects as the background themes and wallet name. Both the desktop and mobile wallet apps are also multi-lingual and currently supports seven of the world’s most popular languages, including English, French, Latin, Bahasa, Portuguese, Russian, and Turkish.

In addition to the highly interactive user interface, the Copay Crypto wallet also keeps you up to date with your digital asset balances and spending. The wallet app will, for instance, send you push notifications about your crypto balances to your phone’s display. And every time you spend or transfer cryptocurrencies, the wallet automatically sends you transaction receipt on your email.

In the case of shared or group payments, Copay Bitcoin wallet will present you with an easy to understand proposal on how to split the pay.

The multi-wallet feature also comes in handy when budgeting as it lets you organize your crypto balances and allocate funds to different types of expenditures/savings. You can, for example, create a family savings wallet, personal expenses wallet, end-year vacation savings wallet, retirement savings wallet, or even the Birthday in Las Vegas wallet. This feature comes in handy for budget-conscious individuals looking to have better control over their financial life.

Supported currencies 

Interestingly, the Copay wallet is specially designed to only support Bitcoin and Bitcoin Cash. There, however, is no limit to the number of BTC or BCH private keys you can store in the wallet or the number of wallets (partitions) you can create on Copay.

If you wish to hold, trade, or invest in other Altcoins like Ripple, Ethereum, Litecoin, or Dogecoin without letting go of Copay Bitcoin wallet, we suggest that you acquire a Hardware wallet and integrate it with the Copay crypto mobile app.

Copay bitcoin wallet costs and fees

BCopay Bitcoin is free. You will not be charged when you download, install, or store coins into the crypto wallet app. You can download the app from both Android and iOS app stores, on the official BitPay website or GitHub.

You will nonetheless, be charged network transaction fees every time you transfer Bitcoins and Bitcoin Cash out. These charges will vary according to the transaction volume and are collected by network administrators and not Copay.

When transacting via the Copay Wallet, you also have the choice of determining the transaction fees charged per transaction. The wallet has the ‘Super Economy’ as well as the ‘Urgently’ payment options.

Like the name suggests, ‘Super Economy’ is denoted from friendly transaction fees for slow transactions while the ‘Urgently’ pay plan involves higher transaction fees for faster (near real-time) transaction processing.

Copay bitcoin wallet customer support

Copay Bitcoin Wallet’s customer supports starts with an elaborate explanation of everything you need to know about the wallet on GitHub. On this page, you will also have access to the wallet’s updated version of both desktop and mobile apps, guidance on how to use and interact with the wallet app, and also learn everything there is to know about Copay.

For more personalized assistance, contact the Copay Bitcoin wallet team through their official handles on the different social media platforms.

How to activate a Copay Wallet

Step 1: Go to the official website and click on “Get Copay.”

Depending on the platform you intend to use, the first step should be to register your details with the site.

Step 2: Choose the Copay App version.

After clicking on “Get Copay,” you will be automatically redirected to GitHub, where you can select your desired app to install. Select the most recent app that corresponds with your device (mobile or desktop OS) from the list and download it.

Step 3: Click “Get started” after the download process completes

This opens the “Copay Installers” that provide you with all the important information about your Copay Bitcoin Wallet. It also hosts the registration process that captures such basic data as your name and email address.

Step 4: Back up your 12-word seed phrase.

The installer will also provide you with 12 random phrases known as the recovery seed that backs up your wallet app. Write them down on a piece of paper and keep them safe. You will need them to reset the app password or recover your private keys.

Step 5: Verify that you have captured the seed words correctly.

Confirm that you have correctly captured the recovery seed phrases.

Step 6: Add Bitcoin/Bitcoin Cash and start transacting

Your Copay Bitcoin wallet is now set. You can now add Bitcoin and Bitcoin Cash crypto coins and start transacting.

How to add/receive Bitcoins to your Copay wallet

Step 1: Start by launching the app and clicking on the ‘Receive’ icon on the app dashboard. This will reveal your copay wallet address in the form of letters and a QR Code.

Step 2: Copy the wallet address and send it to the party from whom you wish to receive Bitcoins or have them scan your app’s QR code.

Step 3: Wait for the crypto to reflect on your wallet. How long the coins take to reflect largely depends on the state of the Bitcoin network.

How to send Bitcoin or Bitcoin Cash via your Copay bitcoin wallet

Step 1: Start by launching your Copay wallet app. Click on the send icon and chose the crypto you wish to send. (Note that the send icon will only appear if you enough crypto to transfer)

Step 2: Enter the fund recipient’s wallet address or scan their QR Code.

Step 3: Enter the amounts of Bitcoins or Bitcoin Cash you wish to send

Step 4: Confirm that the number of Bitcoins or Bitcoin Cash and the recipient’s wallet address are okay before hitting send.

Copay Wallet Pros and Cons

Pros:

  • It has a user-friendly interface with customizable background and wallet names
  • Features multi-signature settings and is hierarchically deterministic
  • It is built around an open-sourced and highly vetted blockchain technology
  • Copay wallet is highly versatile and compatible with different operating systems
  • The Copay wallet app can be linked to an external hardware wallet
  • Uses Bitcoin Payment Protocol (BIP) to protect users from sending funds to wrong addresses

Cons:

  • It uses third-party servers to access Bitcoin Network data
  • it only supports Bitcoin and Bitcoin Cash
  • The app doesn’t support more secure technologies like two-factor authentication

Copay Wallet vs. Other Wallets- How Does it Compare?

Copay wallet vs. eToro

When compared to such other online wallets as eToro, Copay carries the day because of its ease of use. The app is highly customizable and allows its users to create partitions (mini wallets) that promote budgeting. It also allows you to tweak the apps theme and background colors as well as change your wallet’s name.  Plus, while Copay will only support two crypto coins, there is no limit to the number of private keys or wallet addresses that Copay can hold.

However, unlike Copay, which only hosts two crypto assets, the eToro wallet app can hold up to 700 cryptocurrencies and tokens. One may also consider eToro relatively safer as it implements more security safeguards on the wallet like two-factor authentication or military-grade encryption. Moreover, the eToro wallet app has the backing of one of the most secure and most popular crypto trading platforms. The same cant be said of Copay’s backer – Bitpay.

Copay wallet vs. Ledger Nano S

Copay Wallet app boasts convenience, ease of use, and its free to acquire as its key strengths when compared to the Ledger Nano S hardware wallet. Unlike Ledger Nano that sells for around $60 and has a rather complicated installation process, Copay is free to download, install, and use. The fact that the app is installed on your phone and still accessible as a chrome browser extension makes it more convenient for regular transactions.

Unlike the Copay crypto app or software wallet, however, the Ledger Nano S hardware wallet is more secure and harder to breach. It stores your private keys offline and is, therefore, more secure against online hacks or viruses that wipe off phone or desktop data. Moreover, Ledger Nano supports more than 1,000 cryptocurrencies and tokens against the two hosted on Copay.

Final Verdict: Is Capay safe?

The Copay Bitcoin wallet is relatively safe and has instituted reasonable security safeguards against unauthorized access to your private keys. They have a password mechanism to prevent, encrypt all data held by the wallet, and provide you with a 12-word backup seed.

In addition to this level of security, we liked the convenience and the versatility of the wallet given that it is compatible with virtually all the popular operating systems and is available on the move via the Copay mobile app and online via the software wallet.

Categories
Forex Basic Strategies

Trading The Forex Market Using ‘Price Action With Context’ Strategy

Introduction

Introduction

Introduction

Price action with context is a process to predict a currency pair’s movement by reading the chart. The key price driver of a currency pair is fundamental events, but we can predict the future movement based on the present and past activity of the chart.

Central banks and financial institutes drive the forex market. Therefore, when they make the price move, they left some signs of their activity. As a price action trader, we will read their activity and anticipate what they might do in the future.

What is Price Action?

Price action is a process to inquiry about a currency pair’s price development. The main aim of the price action trading is to understand buyers’ and sellers’ sentiment in the price and predict future movement based on these. The price action trading is based on the combination of several trading indicators and price behaviors. Therefore, you might have to use multiple trading tools as a price action weapon.

The price of a currency pair moves based on the sentiment of buyers’ and sellers’. Therefore, using price action is logical that can provide accurate trading signals. In the price action with context trading strategy, we will identify a market direction by reading the chart and then enter a trade from the correction to get the maximum return with a minimum risk.

What are Price Action Weapons?

There are many parts in the price action trading that a trader should know, like- candlestick, support and resistance, trend, market flow, event level, key Level, and market context.

Candlestick

Candlestick represents the price movement of a currency pair for a specific timeframe. The four major parts of candlestick trading are- opening price, closing price, high price, and low price. Candlestick represents both continuation and reversal price direction based on the opening, closing, high and low. There are many candlestick patterns in the market, but in this trading strategy, we will focus on reversal candlesticks only.

Example of reversal candlestick – Pinbar, Engulfing Bar, and Two Bar, etc.

Support & Resistance

Support and resistance are a price zone from where the price is likely to change the direction. When the price is moving up, it will reverse as soon as it finds resistance. On the other hand, the price will stop moving down as soon as it finds a support level. There is more to know about the support and resistance in this trading strategy-

Event Level – Event level is a price zone that works as both support and resistance. It is the most important Level as both buyers and sellers put attention to it.

Key Level – key levels are a significant level in the daily or weekly timeframe to understand the price’s top and bottom.

Dynamic Level – Dynamic levels move with the price rather than a specific horizontal zone. In this trading strategy, we will use 20 Exponential Moving Average as the dynamic Level.

Market Context

Market context is a process to identify the nature of a trend. It has four elements:

Impulsive – When the price aggressively creates new highs and lows, it is considered as an impulsive trend. It indicates that the price will continue the current trend.

Corrective – In a corrective market structure, price barely creates new higher highs or lower lows. It is an indication of market reversal.

Volatile Trend – In volatile trends, the market follows the corrective structure and indicates a market reversal.

Non Volatile Trend – Non-volatile trend appears with the impulsive market momentum when the price tries to continue the current movement.

Bullish Price Action Trade Setups

Find the market in an impulsive bullish pressure in H4 or daily timeframe. Identify the Key support level and consider buy trades only as soon as the price is trading above it.

Entry

To enter the trade, you have to wait until the price comes down towards an event level with a corrective structure in 1 Hour timeframe. Enter the trade as soon as the price rejects and closes above the event level with a reversal candlestick.

Stop Loss

Put the stop loss below the recent swing low with 10-15 pips buffer. Here the buffer means you should put the stop loss 15 pips below the swing low.

Take Profit

The primary target of the take profit would be the next event level. However, if the bullish trend remains impulsive, you can extend the take profit. On the other hand, you can close earlier if the price barely creates new higher highs.

In the example below, we can see a visual representation of how to take the entry with stop loss and take profit level.

Bearish Price Action Trade Setups

Find the market in an impulsive bearish pressure in H4 or daily timeframe. Identify the key resistance level and consider sell trades only as soon as the price is trading below it.

Entry

To enter the trade, you have to wait until the price comes down towards an event level with a corrective structure in 1 Hour timeframe. Enter the trade as soon as the price rejects and closes below the event level with a bullish reversal candlestick.

Stop Loss & Take Profit

Put the stop loss above the recent swing high with 10-15 pips buffer. Here the buffer means you should put the stop loss 15 pips above the swing high.

The primary target of the take profit would be the next event level. However, if the bearish trend remains impulsive, you extend the take profit. On the other hand, you can close earlier if the price barely creates new Lower lows.

In the example below, we can see a visual representation of how to take the sell entry with stop loss and take profit level.

Final Thoughts – Trade Management Idea

In the above section, we have seen how to trade using the price action with context. In this trading strategy, buy and sell trades come after filtering out unusual market movements from the volatile market conditions.

However, no forex trading strategy in the world can guarantee a 100% profit, so your trades might go wrong even if you strictly followed all rules. If you want to grow your account with a consistent profit, you should follow strong trade management tools, as mentioned below:

  • Ensure that you are not taking over a 2% risk per trade of your trading balance.
  • Move your stop loss at breakeven as soon as the price creates a new higher high or lower low.
  • If you face a 3 or 4 consecutive losses, take a break and observe the market until it follows the trend accurately.
  • Make sure to keep your mind free from any bias while you are analyzing the market.

Overall, price action is the core element of trading that every trader should know. There are many trading strategies combining price action and other trading tools. The strategy we have seen above has a good history of providing profitable trades. Therefore, if you can implement it properly, you can consistently grow your trading account.

Categories
Cryptocurrencies

Zcash Wallet: Features, fees Security and more

Let’s be clear –  Zcash is both the name of a cryptocurrency (ZEC) and a wallet. This review is about the wallet.

Let’s be clear –  Zcash is both the name of a cryptocurrency (ZEC) and a wallet. This review is about the wallet.

Let’s be clear –  Zcash is both the name of a cryptocurrency (ZEC) and a wallet. This review is about the wallet.

Zcash Wallet was built to handle ZEC. ZEC was developed from Bitcoin but with the aim of improving the anonymity of users and their transactions.

Zcash Wallet is a free, secure, beginner-friendly mobile wallet for addressing all your ZEC needs. Yes! It can address all your ZEC needs because it even has an onboard cryptocurrency exchange – a rare phenomenon among cryptocurrency wallets.

This review is about the Zcash Wallet, and all that appertains to it. We will look at its security, highlight it’s ease of use, follow through the installation and setup processes, and look at its pros and cons. We’ll also explore tips on getting customer support and resolving common issues. Stay tuned!

Key Features

  • Integrated cryptocurrency converter (onboard cryptocurrency exchange) – You can fund your Zcash Wallet with almost any other cryptocurrency out there; the wallet will convert it to ZEC for you. You can also send your ZECs to almost any altcoin wallet address, and it will surely be converted to the appropriate currency before it’s sent out.
  • Enhanced security – Zcash Wallet integrates some of the most advanced security features available in a cryptocurrency wallet, as will be seen later in this post.
  • Easy to use – you can log in with Facebook, Google, or your mobile number. You can also share your wallet address through these social media platforms.
  • Friendly customer support – Zcash Wallet customer service representatives exhibit rare compassion when addressing users.
  • Available in multiple languages – While you will probably only need to use the app in one language, the availability of the app in multiple languages increases its user base, which means you have more Zcash Wallet users to make free transactions with.
  • Simple and intuitive user interface.

Security

Zcash Wallet’s developers invested some decent efforts into hardening it from actual and perceived crypto-wallet threats. The security of this wallet is best viewed from two dimensions: it’s architecture and configurable features.

Architectural features include the wallet’s use of the hierarchical deterministic (HD) algorithm for generating addresses. HD key generation dramatically simplifies the task of backing up a wallet since the user is not required to generate key backups manually.

Zcash also supports multi-signature (multi-sig) transaction signing.

Multi-sig allows you to sign a transaction by more than one device, thereby addressing the risk of unauthorized transactions in case the primary device is compromised.

In the traditional banking industry, corporate accounts often require more than one signatory to allow movement of funds out of the account. This is pretty close to what multi-sig does to crypto transactions.

Multi-factor Authentication

Perhaps the most outstanding security feature offered by Zcash Wallet is multifactor authentication, also known as MFA.

MFA has recently gained a lot of attention among cybersecurity communities. This technology enhances authentication and identity management by requiring you to provide additional verification after you log in.

It’s simple but super-effective. With Zcash, you need to provide a code sent to an authenticator app of your liking, for example, Google Authenticator or Microsoft Authenticator.

So, even if someone has your password, they need to access your authenticator app as well to log in to your account. You need to note that this is one of the very few wallets out there that implement multi-factor authentication.

Just a word of caution – if you choose to secure your wallet with MFA, proceed with care because if you lose your phone and don’t have the MFA key, there is no way you will access your wallet. This is precisely why the MFA option is not automatically activated when you set up your account.

Shielded Address support

You should also expect to find privacy in the goodies basket that comes with this wallet.

Zcash Wallet provides shielded address support which encrypts addresses and other transaction information such that this information becomes invisible to anyone on the network. This feature makes it more difficult to trace transactions to their origins and is one of the main advantages of ZEC over Bitcoin.

We can go on all day praising this app’s security, but, hey, it’s not an open-source project! There is a certain faith the crypto community places on open-source wallets. So goes their argument:

“Proprietary software is only secure as long as its code has not found its way to the public. But one day, one time, this code will be leaked into the public domain, and reverse engineers and hackers will begin flexing their skills – it will just be a matter of time before they hack their way into the system. But if it is an open-source wallet, this community of reverse engineers and hackers are part of the development team. You get the logic?”

It’s a bit controversial, but we’d rather go with the majority verdict that open-source wallets are more secure.

Even if Zcash has all these security features, you need to treat your wallet as your bank account, and its overall security is your responsibility.

Fees

Zcash brands itself as a secure and free wallet. Let’s focus on the free part of it.

Sending and receiving coins between Zcash wallets is free. However, network fees may creep in if you are sending coins to another ZEC wallet. Exchange fees will also apply if you are sending ZEC but want them to arrive like some other altcoin.

Downloading and Setting up an Account

Zcash Wallet is a mobile-only wallet available on both Android and iOS platforms. Downloading this app from either the Android PlayStore or the iOS AppStore is no different from downloading any other app.

Once downloaded, you can restore a previous account or create a new one. If it’s your first time interesting with ZEC, the easiest way to create a new wallet is by signing in with a social media account.

While setting up an account with other cryptocurrency wallets usually involves a lengthy process where you need to provide passphrases, PINs, and other authentication paraphernalia, this process has been simplified to a single button push, or a few taps at most, with the Zcash Wallet. This wallet gives you several convenient sign-in options, including signing in with Facebook, Google, or your mobile number. It’s incredibly easy to log in, and you need to install the wallet to believe it.

Once you log in, you should tune your preferences and security settings.

Sending Funds

Sending funds with Zcash Wallet is a no-brainer, but let’s look at it anyway.

  • The send button is found on the main screen of the application. Tap on it to initiate a funds transfer.
  • The next option is supplying destination information. The app provides two options: sending funds to other cryptocurrency addresses, or a Zcash Wallet address. We already saw that conversion to other currencies takes place automatically by the inbuilt exchange. They call this feature “Smart Pay.” If you are sending funds to another Zcash Wallet user, select the second option, and provide their User ID or email. If you provide an email, the app will check whether an account with such an email exists. In case it doesn’t, Zcash Wallet will create a new account and send a verification to that email. Next, you will see a summary of the transaction, including network fee and estimated arrival amount.

Receiving Funds

As earlier said, you can receive funds from any wallet, including those that hold other currencies. Receiving funds from another Zcash Wallet is free and instant. But if you are receiving them from a different network, expect the sent amount less than the exchange fees. To receive coins,

  • Tap on the receive icon on the main screen of the application.
  • You will immediately see a ZEC deposit address, a QR code, and your User ID.
  • If the source of the funds is another Zcash Wallet, tap the User ID to copy it. For faster and hassle-free sharing, tap the share button at the top right corner of the screen.
  • If you are receiving funds from another altcoin wallet, tap on the smart address tab to view the list of supported currencies. Since the list is long, you can search directly by typing the name of the currency. The search bar is a bit tiny but look for the magnifying glass icon. Next, select the currency of the sender. At this point, the app will automatically generate a wallet address, QR code, a memo, and any other information needed to receive funds. It will also tell you the minimum amount you can receive. How convenient! As usual, tap to copy or simply push the share button to share using the messaging apps on your phone.

Supported Cryptocurrencies

Since the wallet has an integrated exchange, it can support virtually any currency. However, it can only store ZEC. This is not a problem because if you want to send or receive funds in a different currency, you can always do it.

Customer Care

Zcash delivers customer support primarily through the email [email protected] although [email protected] appears more active.

There seems to be a lot of negative energy on the Interweb flying in the direction of Zcash’s customer support. To be fair, Zcash’s customer care can be described as responsive. Whether that solves your issues or not is beside the point. These folks always respond to individual complaints even on non-official support communication channels such as the app’s download page. So, an 8 out of 10 sounds fair.

Users seem to experience a variety of challenges with the app ranging from failed logins to transactions not reflecting in their accounts, but those are not customer support issues, they are probably technical challenges.

Wallet’s Pros and Cons

Pros

  • The wallet is remarkably easy to use. Right from installation to sending funds, everything is set to fulfill the desires of the lazy user.
  • User-friendly interface – the interface is not fancy, but it’s very functional. It only has two major parts: all the buttons you need at the top half of the screen, and all the news and tips you need in the remaining half. The news section is exceptionally succinct, and you won’t find irrelevant posts.
  • On-board cryptocurrency exchange – With this feature, you only need one wallet to do all your business in the crypto world.
  • Zcash boasts of some of the best security features in the market – multi-sig, multifactor authentication, HD key generation, and much more. Is there a wallet that can compete with this? One wonders.
  • Provides cold storage – Although cold storage is a security advantage, it’s worth mentioning it separately as some users give it primary consideration when selecting a wallet.
  • It’s easy to restore your wallet from any Android or iOS device if your phone gets lost. Please note that it may take some time before your funds reflect in the new wallet.
  • It provides email notifications for each transaction. So you’re always updated on your account activity. This feature increases your chances of recovering stolen funds.
  • The app is fast and pretty stable.

Cons

Nothing can be perfect, and the wallet isn’t an exception. Some of its outstanding shortcomings include:

  • It only has a mobile option. This might inconvenience some users.
  • It is not open source.

Final Remarks

The Zcash Wallet is a truly outstanding digital solution. From its ease-of-use to secure operation, it only gives you reasons to be loyal.

As we have seen in this review, the app has some of the best security features you can find in a cryptocurrency wallet. It is also among the few wallets that will allow you to send or receive funds from almost any network.

If you ever experience issues with your account and contact their customer care, you will be more than delighted with their hospitality.

Nevertheless, it’s narrow support for platforms, and the lack of open-source scrutiny might be a bother to some. All things considered, this wallet is one of the best ZEC wallets ever built.

Categories
Forex Basic Strategies

Trading The Most Popular ‘Head and Shoulders’ Pattern Forex Strategy

Introduction

Introduction

Introduction

Head and shoulder is a famous market reversal pattern. Most of the new and experienced traders use this pattern to identify the potential market reversal trade. Traders can use this pattern in every market, including forex, cryptocurrency, stock, indices, and commodities.

In this pattern, there is an indication that the price is trying to make a new higher but cannot do it. In the forex market, it is essential to understand the sentiment of buyers and sellers. In that sense, head and shoulder is a prominent price pattern indicating what buyers and sellers are doing in the market and how buyers got rejected from a potential zone.

What is the Head and Shoulder Pattern?

Head and shoulder is a price pattern that usually appears in an uptrend and indicates a price zone from where buyers are going to lose their momentum. A complete head and shoulder pattern indicates the start of a bearish trend. Therefore, if you want to join the bearish trend as early as possible, you should take trading decisions based on this pattern to have a better risk: reward ratio.

The head and shoulder pattern has three elements, as marked in the below chart.

The left shoulder is the ordinary swing high of a bullish trend. Later on, the head indicates another swing high indicating the continuation of the bullish trend. However, the right shoulder indicates that the price is unable to make another high above the head, which is an indication that buyers are losing their momentum.

On the other hand, the inverse head and shoulder are like the head and shoulder pattern that appears after a bearish trend. It indicates a potential market reversal from a bearish trend to the upside.

In the image below, we can see how an inverse head and shoulder looks like.

How to Identify the Head and Shoulder Pattern?

The head and shoulder pattern is prevalent in the chart that does not require any effort to see. You can easily spot it with the naked eye. Moreover, there are some Expert Advisors (EAs) or trading indicators that automatically show the head and shoulder pattern.

You can draw the head and shoulder pattern using the trendline (without ray) despite the automotive process. Later on, we should focus on the location of the pattern. If the head and shoulder pattern appears near any significant support level, it might not work well due to the lack of space for further price decline.

Overall, the head and shoulder pattern from a significant resistance level or key resistance level can provide a potential market reversal opportunity. Furthermore, head and shoulder patterns with significant economic events often make the level important among traders.

Head and Shoulder Pattern Trading Strategy

If you have read the above section, you would know that it is not difficult to find the price’s head and shoulder pattern. The profitability ratio of this pattern is very high, based on the previous trading result. There are several ways to make trades based on the head and shoulder trading strategy. However, the most reliable way to take the trade is from the neckline breakout.

Timeframe

The head and shoulder price pattern in a daily chart is more reliable than the head and shoulder pattern in a 5 minutes timeframe. The accuracy of this trading strategy increases if you move to a higher timeframe. However, it is often difficult for traders to take trades based on a weekly or monthly timeframe as it requires a lot of time and balance. Based on the retail and institutional traders, any time frame from 1 hour to a daily chart is perfect for this trading strategy.

Currency Pair

The head and shoulder trading strategy works well in all financial markets, including forex, cryptocurrency, stocks, indices, and commodities. Therefore, there is no barrier to use it on specific currency pairs. However, it is recommended to trade in major currency pairs as there is enough liquidity to provide a substantial movement without any unnecessary spike.

Entry

After forming the head and shoulder pattern, it is crucial to measure the price action at the neckline area. The neckline is a support level based on the lowest swing point of two shoulders and one head. In this trading strategy, you should wait for the price to break below the neckline with a big candle breakout. The strength of the breakout will indicate how reliable the upcoming bearish pressure is.

Later on, wait for the price to correct towards the neckline again with a corrective speed and enter the trade as soon as the price rejects the neckline with a bullish reversal candlestick.

Stop Loss

The stop loss will depend on two categories. If you are an aggressive trader, you can put the stop loss above the reversal candlestick with 10-15 pips buffer. In case the market moves above the neckline and hits your stop loss, it would indicate that the price made a false break below the neckline. However, the conservative approach is to put the stop loss above the left shoulder with some buffer. It would save your trading balance from the unusual market noise.

Take Profit

The first take profit level should be based on the 1:1 risk: reward ratio. You can close 50% of the position at the first take profit level and wait for the 100% of neckline to head for the final take profit.

Moreover, you should be more cautious in setting the take profit level by considering the near-term support and resistance levels. In the example below, we can see how the price broke below the neckline and retested it again to create a trading opportunity. Moreover, this image refers to how to set the stop loss and take profit levels.

Conclusion

The forex market is the world’s biggest financial market, which is very uncertain. Therefore, no trading strategy can guarantee a 100% profit. There is some possibility that your trade might hit the stop loss after taking the entry, instead of moving down. In that case, you should take the loss and wait for further trading opportunities.

The best way to keep yourself profitable in the market is to use appropriate money management and trade management rules for trading. Therefore, if you take 1% or 2% risk per trade, any unusual stop loss might not affect the overall balance.

Categories
Forex Fundamental Analysis

Understanding ‘GDP from Services’ As A Macro Economic Indicator

Introduction

Introduction

Introduction

The different proportion of contribution to GDP from the three sectors (primary, secondary, tertiary) can tell us a lot about the economic development stage a country is at the moment. GDP from Services can help us gauge the transition of countries from developing to developed status efficiently. Hence, it is useful for Central Authorities and business people to understand the growth of the Service Sector.

What is GDP from Services? 

Service Sector

It refers to the production of intangible goods, services to be exact, that are not goods. Services are intangible, non-quantifiable, and formless. The result of service may or may not produce a physical good. For example, a construction service would give the client a building, whereas a lawnmowing service would not. It is the largest sector in the global economy and bears high significance in advanced economies.

How can the GDP from Services numbers be used for analysis?

The three different sectors of an economy are associated with different activities. The primary sector is mainly associated with dealing with agriculture, farming. It answers the basic needs. The secondary sector deals with industrialization, where livelihood, employment are answered through the production of goods.

The tertiary sector comes into picture when the basic needs like food, employment, security are taken care of. The tertiary sector consists mainly of services. Countries that have Service Sector as their main contributor to GDP are generally considered the more advanced economies. Indeed, the underdeveloped nations will primarily struggle for food and water, where Agriculture would be the primary need to feed the population.

The industrialization growth will be associated with low-cost wage labors working in factories for mass production to compete in the global market. Whereas, the service sector will be associated with high-cost services generally to provide “good-to-have” commodities.

For example, a vegetable is cheaper than an industrial product. Likewise, an industry product would be cheaper than a service sector like antivirus software. The cost of a 1kg of potato is about 2.50 US dollars, whereas 1kg of potato chips from a company like lays would cost 10 US dollars, whereas a Netflix subscription (service) would cost around 10-15 dollars a month.

It is a general trend where a software employee (service sector) gets paid more than a factory worker (industrial sector). A factory worker generally gets paid more than a farmer (agricultural sector). It is easily observed the wealth generated from the Service Sector far outpaces that of the Industrial Sector and essentially the Agricultural Sector.

In general, countries start to grow from underdeveloped to developing nations through industrialization. China and Japan would be good examples of industrialization-led growth. Once a country has firmly established its primary and secondary sectors, it can reach the status of a developed economy through the service sector only. India and China would be good examples of developing economies, increasing their service sector to generate higher wealth.

Hence, GDP from Service is essential to assess the status of a country transitioning from an emerging or developing economy status to a developed economy. As the contribution of Service Sector to GDP increases, it implies that more percentage of people are engaged in higher revenue-generating activities, and have crossed the stages of addressing basic survival needs.

It is also essential to understand that GDP from Service can increase only when the country is firmly established and stable in the primary and secondary sectors. Because when primary and secondary needs are not answered, people will first engage in meeting primary needs and not providing services.

The developed economies have substantial contributions to GDP from Service Sector. For example, the United States and the United Kingdom, have about 80% of their GDP contributed from the Service Sector. Developing economies like India and China have over 50% of their GDP from Service Sector. Underdeveloped nations like Uganda have only 24% of the Service Sector.

Impact on Currency

Leading indicators like Services PMI or NMI already forecast the GDP from Service, which would mean the increases from GDP from Services is already priced into the market. It is a proportional and lagging indicator.

Also, GDP from Services does not paint the full picture of the economy. Still, it can be an essential tool for the Central Authorities to keep track of Service Sector performance and its relative implications to the economy. As established, the Service Sector is a significant contributor to the GDP in developing and developed economies.

Hence, Service Sector GDP improvements bring more prosperity to a nation than an equivalent improvement in Agriculture or Industrial GDP. Service Sector GDP increase brings wealth to a nation and improves the standard of living of its people better than any other sector. A country can become a developed nation only when its Service Sector GDP increases to 70-80% of its GDP.

In general, Higher GDP from Services is good for the economy and its currency, and vice-versa.

Sources of GDP from Services

For the United States, the BEA reports are available here – GDP -BEA & GDP by Industry – BEA. World Bank also maintains the Service Sector’s contribution as a percentage of GDP on its official website – Service Sector – World % of GDP & GDP from Services – Trading Economics.

GDP from Services Announcement – Impact due to the news release

In the previous section of the article, we saw the contribution made by the service sector to the GDP, and it’s importance in the growth of the economy. But when it comes to fundamental analysis of a currency, the service sector’s contribution alone is not of great importance to investors as it represents only a small portion of the whole GDP.

Therefore, traders and investors look at a broader figure, which is essentially the GDP itself, and take a currency position based on the GDP of a country. So an increase or decrease in the contribution of ‘Services’ to GDP does not have any impact on the currency.

Now, let’s analyze the impact of GDP on different currency pairs and observe the change in volatility due to the news release. The below image shows the latest quarter on quarter GDP data of New Zealand released in March.

NZD/JPY - Before the announcement

We will start with the NZD/JPY currency pair to examine the impact of GDP on the New Zealand dollar. The above chart shows the state of the market before the news announcement, where we see that the price was in a downtrend with the least number of retracements. Depending on the impact of the news release, we will position ourselves accordingly in the market. However, we should be looking to take a ‘short’ trade since the major trend of the market is down.

NZD/JPY - After the announcement

After the news announcement, the market moves lower by a little where the price closes, forming a bearish ‘news candle.’ The GDP data in the fourth quarter was lower than last time, which drove the price below the moving average. However, it did not cause a major crash in the market where the volatility slightly increased to the downside soon after the news release. One should wait for a price retracement before a ‘short’ trade.

NZD/CAD - Before the announcement

NZD/CAD - After the announcement:

The above images represent the NZD/CAD currency pair where we see in the first image the price violently moved lower, and few minutes before the news release, it has reversed from the ‘lows.’ Until the reversal is confirmed, we should be looking to sell the currency pair since the down move is very strong. Since a major news event is due, one should wait for its release and take a position based on the change in volatility.

After the news announcement, volatility expands on the downside, and the ‘news candle’ closes, forming a trend continuation pattern. The market reacted negatively to the GDP data since there was a decrease in the GDP by 0.3% in the fourth quarter. This can be taken as an opportunity for joining the downtrend where one can take a ‘short’ position with a stop loss above the ‘news candle.’

EUR/NZD - Before the announcement

EUR/NZD - After the announcement

The above images are that of the EUR/NZD currency pair, where the market is in an uptrend, and the price is currently at its highest point. The chart signifies weakness in the New Zealand dollar before the news announcement with no signs of strength. Technically, we will be looking to buy the currency pair after a pullback to a key technical level.

After the news announcement, the price moves higher and volatility expands on the upside, thereby further weakening the New Zealand dollar since it is on the right-hand side of the pair. At this point, one should be cautious by not taking a ‘long’ position as it would imply chasing the market. Cheers!

Categories
Cryptocurrencies

What’s Aave (LEND)? A Beginner Guide

With blockchain came the concept of finance that’s outside the control of the state and government. Cryptocurrencies have been the rage these past few years. But now a bolder and fresher idea is emerging, and it’s called decentralized finance (DeFi). DeFi is the notion that the people have the power, and they don’t have to trust traditional finance systems to make the calls. 

With blockchain came the concept of finance that’s outside the control of the state and government. Cryptocurrencies have been the rage these past few years. But now a bolder and fresher idea is emerging, and it’s called decentralized finance (DeFi). DeFi is the notion that the people have the power, and they don’t have to trust traditional finance systems to make the calls. 

With blockchain came the concept of finance that’s outside the control of the state and government. Cryptocurrencies have been the rage these past few years. But now a bolder and fresher idea is emerging, and it’s called decentralized finance (DeFi). DeFi is the notion that the people have the power, and they don’t have to trust traditional finance systems to make the calls. 

Aave is a DeFi project that allows users to borrow crypto without depositing collateral. Lenders can also deposit money and start earning interest right away without lifting a finger.

Describing itself as “an open-source and non-custodial protocol enabling the creation of money markets,” Aave introduced the idea of uncollateralized loans, carving out for itself an influential position in DeFi. 

With that, let’s find out more about the project!

What’s Aave?

Launched in 2018, London-based Aave is a DeFi platform running on the Ethereum blockchain that lets you lend and borrow a wide range of cryptocurrencies in a decentralized and peer-to-peer manner. Aave takes its name after the Finnish word for “ghost.” The team chose this name to reflect the constant evolvement and imaginative technology that intrigues users. 

The project brings distinguished features to the DeFi space, such as uncollateralized loans and “rate switching.” Aave utilizes the Aave Protocol to create various types of crypto markets where users can build an investment portfolio. 

Background of Aave

Aave was originally known as ETHLend, a crypto lending platform established in 2017 by Stani Kulechov. The company raised about $600,000 worth of Ether in exchange for 1 billion LEND tokens. 

ETHLend rebranded into 2018 in order to incorporate even more platform features, suiting the current cryptocurrency consumer.  

Aave’s Offerings

Aave offers quite an impressive range of unique collaterals for any DeFi lending protocol. 

#1. Flash Loans 

Flash loans are one of Aave’s biggest selling points, and that’s especially because you don’t need to deposit any collateral to use them. Instead of using collateral to ascertain payments, flash loans use the timing of the loan’s repayment. Flash loans were invented by Aave, and they work this way: 

  • Borrowed and repaid in the same transaction
  • No collateral needed
  • Borrow and return the borrowed amount plus a small interest
  • All this needs to happen at the same time, or the transaction will not be approved

Flash loans can be applied in the following kind of scenarios: 

  • To take advantage of crypto price differences in two or more exchanges without necessarily having the principal amount to do so
  • Debt refinancing, or swapping collateral long positions without having to pay the repay the debt of the loan position

#2. Flexible Rates 

Unlike most lending platforms that use either fixed or variable interest rates, Aave implements a “rate-switching” function that allows borrowers to switch between “stable” and “variable” rates, a very handy feature in the extremely volatile crypto market. For high-interest rates, a borrower can opt for the fixed-rate, but for volatile rates that might likely take a dip, they can go for the variable rate. 

Thanks to this new and exciting option, Aave has witnessed particularly strong growth for stable rates loans after their introduction in May 2020. Note that ‘stable’ here does not imply ‘fixed.’ Rather, Aave’s stable loans are more stable variable interest rates that are resilient against wild price swings. This ability to rate-switch gives users more control over their loans by allowing them to choose the best possible rates. 

How to Lend on Aave

Getting started on Save is fairly simple. Visit https://app.aave.com/ and connect using a web 3.0 wallet such as Walletconnect, Coinbase Wallet, or Fortmatic. You can also connect with the Ledger hardware wallet. 

Depositing is easy. Just select an asset and enter how much you wish to lend. Next, allow Aave to access the asset. Then, you’ll need to sign to approve the transaction. Your deposited funds will go to the lending pool, after which you start monitoring real-time how much interest you’re gaining on the Aave dashboard. 

Aave’s interest-earning tokens are known as aTokens, which are similar to Compound’s cTokens. However, unlike the cTokens, aTokens retain the value of the underlying asset and increase only in amount. On the other hand, cTokens appreciate in value with interest.

The LEND Token

LEND, an ERC20 standard token is the native token of the Aave ecosystem. LEND token holders get the right to make their voice heard on any proposals advanced by the Aave team. Such proposals include interest rates, the addition of new assets, liquid configurations, and so on. 

LEND also is burned so as to prevent inflation and increase its value over time. 80% of platform fees are regularly burned on the open market for this end. 

In the future, Aave plans to increase the staking ability of users who’ll then get to participate in protocol governance as well as have a claim in exchange fees in exchange for helping secure the Aave network against malicious borrowers. 

LEND’s distribution was as follows: 

  • 30% to core developers 
  • 20% reserved for user experience development
  • 20% reserved for management and legal
  • 20% reserved for promotions and marketing
  • 10% result for unexpected costs

Which Assets Does Aave Support?

Aave currently supports a variety of tokens, including but not limited to Basic Attention Token (BAT), Synthetix USD (SUSD), Chainlink (LINK), Synthetix (SNX), Decentraland (MANA), Kyber Network (KNC), Ethereum (ETH), Dai (DAI), Aave (LEND), TrueUSD (TUSD), Tether (USDT), Wrapped BTC (WBTC), 0x (ZRX), USD Coin (USDC), Maker (MKR) and Augur (REP).

Who is the Team Behind Aave?

Aave is the brainchild of CEO Stani Kulechov, who originally founded ETHLend. Jordan Lazaro Gustave is the COO, and Nolvia Serrano is the CMO. Both Gustave and Serrano bring over their experience from ETHLend. All in all, the team is made of 22 members with eclectic skills ranging from blockchain, fintech, Ethereum, smart contracts, lending, payments, custodial services, and gaming. 

Aave: Tokenomics 

As of July 30, 2020, Aave is trading at $0.0324118, and with a market cap of $421, 352, 978, it’s the 30th biggest cryptocurrency in the world. Aave has a 24-hour volume of $64, 663,115, and a circulating and total supply of 1, 299, 999, 942. The token’s all-time high was $0.442615 (Jan 07, 2018), and its all-time low was $0.003353 (Sep 06, 2019).

Where to Buy and Store LEND

You can grab some Aave from any of several exchanges, including Binance, MXC, Bilaxy, Bibox, Gate.io, Poloniex, Alterdice, Uniswap, dex.blue, Eterbase, Fatbtc, and Loopring. 

As an ERC20 token, LEND can be stored in any wallet that supports Ethereum. You will not go wrong with any of these choices: Atomic Wallet, Trust Wallet, and of course, the hardware wallets (and hence ultra-secure) Ledger and Trezor. 

Final Words

Given its constant re-invention, Aave’s ghost reference is fitting. Its uncollateralized loans and rate-switching features are two of its radical innovations to ever be seen in the world of finance. And that’s what DeFi is all about: disrupting norms to deliver real value. 

Categories
Crypto Guides

The Basics of Cryptocurrency Lending And Staking

Introduction

Introduction

Introduction

Crypto trading has become one of the hot topics of the market. With the security of cryptography and interesting rates of the currency, everyone wants to get their share of the pie. That is why more people are looking for opportunities to generate some income with the help of cryptocurrency. Two best methods you can opt for making money through cryptocurrency are lending and staking. Let’s dive into the two techniques and see which one can be beneficial for you.

Crypto Lending

The concept of crypto lending can be understood as a simple cryptocurrency collateralized loan. A borrower can utilize their crypto assets for getting a stablecoin or fiat loan. In exchange for this, the lender gets a fixed (agreed-upon) interest rate. Alternatively, the borrower can also use their stablecoins as collateral for borrowing crypto assets.

The whole process raises the cryptocurrency’s productivity by reallocating it to people who are in immediate need (borrowers) from those who are not (lenders). That is why crypto lending proves to be a powerful financial primitive in the crypto market that traditionally had only two options: trade and HODL.

The only drawback to crypto lending is that you got to have some capital or assets at your disposal to get the loan. That means they are over collateralized and don’t offer all advantages of true credit.

Crypto Staking

You may find people talking about staking as just holding some crypto and earning rewards in exchange for it. However, there is more to this concept. Staking involves the Proof-of-Stake mechanism, where new blocks get produced and verified through staking.

So unlike mining, you don’t need special computers to solve problems here. But you do need to follow some conditions to become a new block validator, such as:

  • Your cryptocurrency wallet must hold a minimum amount.
  • Your wallet must remain online throughout the day and every day.
  • Your wallet should support crypto staking.

Other than these, different blockchains may apply different rules. So you need to check with the blockchain for how you can stake. Plus, staking is not supported by every cryptocurrency, and you have to choose only from the provided options.

In exchange for holding these staking processes, you get a fixed percentage of rewards per year. You can also opt for a pool, where multiple holders keep their coins together. This increases the overall chances of validating a block and getting higher revenues.

Lending vs. Staking: Which One To Opt?

It would be wrong to state that either of them is better than the other. They both have pros and cons. Your choice majorly depends on the type of investor you are. In case you need instant stable coins with the help of assets, lending would be more beneficial for you. On the other hand, you can opt for staking if you want to generate a significant amount of money by holding the crypto coins in your wallet.

The crucial point here is to keep an eye on the blockchain in which you are investing. You need to look through all the aspects before putting money in a particular investment method.

Categories
Forex Fundamental Analysis

Everything About GDP From Transport & Its Impact On The Forex Price Charts

Introduction

Introduction

Introduction

The Transportation Industry’s contribution to GDP is both direct and indirect. The real contribution of Transportation to overall economic growth goes beyond what the GDP can measure. Hence, Understanding the Role of Transportation in economic activity and its underlying importance that is both visible and subtle is essential for our overall fundamental analysis.

What is GDP from Transport?

Transportation

Transportation includes the types of services that are provided through operating vehicles, moving goods, or people over public transport systems like roads, railways, waterways, airways, etc.

The supply side of the Transportation system is called the Transportation Industry. It is also essential to note that the Standard Industrial Classification (SIC) and North American Industrial Classification System (NAIC) both consider Transportation as a separate industry. They do so through a standard set of definitions and criteria. Hence, not all Transportation services come under the Transportation Industry.

The Transportation services’ contribution to GDP can be measured in the following ways:

Final Demand: It is calculated by adding all the expenditures by households, private firms, and the government on Transportation related goods and services.

Value Added: It is calculated as the GDP contribution by the Transportation services overall. Transportation Value Added is a gauge of the transportation sector’s contribution to GDP. It is based on the difference between transportation services sold value and the goods and services used to produce Transportation.

The Bureau of Economic Analysis (BEA) takes industry value added to be a measure of an industry’s contribution to GDP.

From measurement viewpoint, three types of transportation operations can be distinguished:

  • For-hire operations: It includes those services conducted by transportation industries on a fee basis. A trucking company’s trucking operations is an instance of for-hire operations. 
  • In-house operations: also called, own-account operations, is conducted by non-transportation industries for their use. For instance, the Coca-cola company may transport its beverages to its local warehouse for storage through its trucks. 
  • Final user operations: Final users include the general population (end consumers) and the government who purchase transportation services like cars, trucks for their use.

Transportation Satellite Accounts: The Satellite industry segregates data by focusing on types of economic activity. Hence, the TSAs depict the contribution of for-hire, in-house, and household transportation services as they all form part of the Transportation Industry.

How can the GDP from Transport numbers be used for analysis?

The Transportation-related Final Demand metric is useful to compare the expenditures incurred on other industries like healthcare or housing. For sector-wise, growth analysis, investors can use this to gauge, which industries are experiencing increasing demand that can help them to invest accordingly.

On the other hand, it is not an accurate metric to measure the Transportation needed to support and sustain economic activity. For instance, if the investment into Transportation infrastructure is underfunded, then correspondingly, it will underestimate the final demand due to low economic output. The Transportation industry’s contribution in the year 2019 and 2018 has stayed around 3.2% of GDP as per BEA.

The value-added contribution of Transportation Industry to GDP is, however, understated for the following two reasons:

  • It only includes the contribution of for-hire transportation services. Many industries use transportation services for their use. In-house services do not contribute to GDP.
  • The extent to which industries depend on Transportation is not depicted in these figures. Mobility and interconnectivity between industries, states, and countries are critical factors in business growth in today’s interconnected international markets.

Accessibility to resources, end consumers are all enabled through Transportation and are heavily impacted with poor transportation infrastructure. The US Department of Transportation – Bureau of Transportation Statistics accounts for the TSA reports, and they, by far, depict the contribution of the Transportation industry better than other measures published.

Impact on Currency

GDP from transport does not paint the full picture of the economy but tells us the direct contribution of the Transport industry to the overall GDP. Still, for the International Markets, it does not serve as a useful indicator. It is a proportional and lagging indicator. Higher GDP from Transport is good for the economy and its corresponding currency, and vice-versa.

Sources of GDP from Transport

For the United States, the BEA reports are available here – GDP -BEA

We can use the GDP by Industry to get the transport’s contribution to GDP here –

GDP by Industry – BEA & Transportation Statistics –Annual Report – BTS

Transportation’s contribution to GDP for the world can be found here –

GDP from Transportation – Trading Economics

GDP from Transport Announcement – Impact due to news release

The main role of transport is to provide access to different locations to individuals and businesses. Transport facilitates a wider range of social and economic transactions than would otherwise be possible. Transport is an important sector in its own weight. Transport infrastructure and transport operations together account for more than 5% of the country’s GDP. In developed countries, further investment in that infrastructure will not only result in economic growth but also improve the quality of life, lower costs to access resources and markets, and improve safety.

Therefore, the transport sector is an important sector of the economy that many long-term benefits associated with it. Fundamentally speaking, investors would not invest based on a currency based on the contribution made by the transport sector alone, as its direct influence on the GDP is less. The transport industry indirectly helps in boosting the GDP by assisting in all business activities.

In today’s article, we will observe the impact of GDP on various currency pairs and observe the change in volatility because of its news announcement. For illustration, we have collected the latest GDP data of Switzerland, which was released in March. The below image shows that the GDP in the fourth quarter was slightly better than expectations and higher than the previous quarter.

USD/CHF | Before the announcement

Let us start with the USD/JPY currency pair in order to analyze the impact of GDP on the Swiss Franc. In the above Forex price chart, we see that the overall trend of the market is down where recently the price is moving in a ‘range.’ After the occurrence of a trend continuation pattern, a ‘sell’ trade can be taken with less risk. Conservative traders should wait for news releases and trade after the volatility settles down.

USD/CHF | After the announcement

After the news announcement, the price marginally increases that takes the market higher by just a few pips. We can argue that the GDP data had the least impact on the currency pair and did not induce any volatility in the market. As the data was as expected, it did not turn the market downside, and it moves as usual.

EUR/CHF | Before the announcement

EUR/CHF | After the announcement

The above images represent the EUR/CHF currency pair, it is clear that before the news release, the market is in an uptrend, and few minutes before the release, the price has been moving within a ‘range.’ This means the news event could either result in a continuation of the trend or a reversal of the trend.

Hence it is recommended to wait for the news announcement to watch the impact it makes on the price chart. After the news announcement, there is a slight increase in volatility to the downside after the close of news candle resulting in strengthening of the Swiss Franc. However, the ‘news candle’ itself appears to be impact-less, where there is hardly any change in price during the announcement.

NZD/CHF | Before the announcement

NZD/CHF | After the announcement

The above images are related to the NZD/CHF currency pair, where we see that the market is moving sideways before the news announcement. Just before the release, the price is close to the bottom of the ‘range.’ As the impact of these numbers is less, aggressive traders can take ‘long’ positions when technically the location is supporting for a ‘buy.’

After the news announcement, the market moves higher, and there is an increase in volatility to the upside. Since the GDP was not extremely bullish or bearish, the market did not react violently to the news release. Therefore, in such times we need to look at the charts from a technical angle. All the best!

Categories
Cryptocurrencies

Blockstream Green Wallet Review: What Makes This Crypto Wallet App Unique?

The Blockstream Green crypto wallet was developed by Lawrence Nahum and Jerzey Kozera of Green Address Inc. It was introduced to the crypto industry in 2013. But would, in 2016, be acquired by Blockstream, yet another blockchain technology company and renamed to Blockstream Green wallet.

The Blockstream Green crypto wallet was developed by Lawrence Nahum and Jerzey Kozera of Green Address Inc. It was introduced to the crypto industry in 2013. But would, in 2016, be acquired by Blockstream, yet another blockchain technology company and renamed to Blockstream Green wallet.

The Blockstream Green crypto wallet was developed by Lawrence Nahum and Jerzey Kozera of Green Address Inc. It was introduced to the crypto industry in 2013. But would, in 2016, be acquired by Blockstream, yet another blockchain technology company and renamed to Blockstream Green wallet.

Today, it is considered by far the most innovative and secure crypto wallet app, as well as the pioneer of multiple security features. The Blockstream Green wallet was, for instance, among the earliest to integrate multi-signature signing, allow two-factor authentication, introduce hierarchical deterministic wallets, and allow for dynamic Bitcoin processing fees.

In this review, we will be looking at all these features in detail and highlighting everything else you need to know about Blockstream green crypto wallet. We will be factoring in its operational and security features. We’ll also explore its pros and cons, cost and transaction fees and compare its efficiency with other crypto wallets.

We start by looking at its primary features:

Key features:

i) User-friendly: The Blockstream Green crypto wallet has one of the friendliest user interfaces. It features a simplistic design that makes in-app navigations seamless and eases interactions with the portfolio. It also features both basic and advanced settings that appeal to the beginner, intermediate, and experienced crypto enthusiasts.

i) Compatible with multiple OS: The Blockstream Green crypto wallet is also highly versatile and compatible with virtually all operating systems. The wallet desktop and mobile app version as well as a web version – available as a chrome extension.

iii) Hardware wallet integration: The crypto wallets versatility extends with its interactions with hardware crypto wallets. Blockstream Green wallet is, therefore, compatible with all the leading hardware crypto wallets, including Trezor and Ledger Nano models.

iv) Real-time account monitoring: The Blockstream Green crypto wallet allows you to monitor the value of your crypto balances in real-time via the apps and web version. It will also automatically email you a report of your transaction every time you send or receive your crypto.

v) Multiple accounts: While Blockstream Green is a specialist wallet that only supports Bitcoin cryptocurrency, it allows for the creation of multiple user accounts. You can, therefore, create an extra user account/wallet address for separating your digital assets. One wallet can, for instance, hold expense and savings accounts.

Security features:

Password:

Blockstream Green crypto wallet has a password as its primary security feature. You, therefore, will be required to set this 6-digit passcode when installing the crypto wallet app.

24-word recovery seed:

Additionally, the app or web wallet will also present you with 24 random phrases that represent its recovery seed. Write these down and store them in a safe place. They come in handy when recovering your private keys should you lose the wallet or forget the passcode.

Two-factor authentication:

This added layer of security eliminates the possibility of remote hacks. It demands that you attach a phone number to your wallet and receive login and crypto transfer verification codes via SMS or call. You can alternatively use ‘tether the app to your email’ and activate SFA via google authenticator.

Highly encrypted:

According to the Blockstream, Green wallets limit the amount perof sonal data collected of their clients while subjecting any data stored within the app – especially the private keys and passcodes – to strict encryption protocols.

Multi-signature wallet:

Blockstream green is a multi-signature wallet implying that two signatories must approve a transaction before it is executed. The first signatory is your password, and the other is the Blockstream servers.

Non-custodial:

All Blockstream green crypto and web wallets are non-custodial. Meaning that your private keys aren’t stored on the companies servers but on the individual device hosting the wallet. This gives near-absolute control of your digital assets while eliminating the possibility of a central point of attack for hackers.

Open-sourced technology:

The Blockstream Green wallet is also built on an open-sourced technology, which is, in itself, a guarantee of safety and transparency.

Hierarchically deterministic:

The wallet is hierarchically deterministic. That implies that it can automatically generate a wallet address for every new crypto transaction. This makes your crypto activity and transactions hard to track.

How to set up the Blockstream green crypto wallet app:

Step 1: Start by downloading and installing the Blockstream wallet app on your phone and desktop (download these apps from the official Blockstream website to get the most updated versions).

Step 2: Launch the app.

Step 3: Write down the 24-word recovery seed using the specific order in which they are presented by the app.

Step 4: Confirm your seed phrase and proceed to set the unique 6-digit passcode.

Step 5: You can now access your Blockstream green wallet dashboard and configure your desired transaction fees

Step 6: Create a Bitcoin wallet address

Step 7: Your wallet is now active, and you are now free to start adding Bitcoins.

How to add/receive crypto into your Blockstream Green wallet

Step 1: Start by launching your Blockstream green wallet app and clicking on the ‘Receive Money’ tab.

Step 2: This reveals your Bitcoin wallet address as well as the QR Code

Step 3: Copy the wallet address and send it to the exchange, wallet, or fiat-to-crypto conversion party from whom you wish to receive funds

Step 4: Wait for the Bitcoins to reflect on the wallet app.

How to send crypto into your Blockstream crypto wallet:

Step 1: Launch the crypto wallet app and click the ‘Send Money’ tab.

Step 2: In the pop-up window that appears, key in the recipient’s Bitcoin wallet address or simply scan their QR code if using a mobile crypto app.

Step 3: Enter the number of Bitcoins you wish to send

Step 4: Confirm that both the wallet address and the Bitcoin amounts are okay and click send.

Step 5: The transaction can take between a few minutes to several hours, depending on your preferred transaction fees.

Blockstream green ease of use:

One of the unique features of Blothe ckstream Green wallet is that it is highly customizable. It features both the basic and advanced app/web wallet settings for the intermediate and experienced bitcoin investor/trader. Some of the customizable features that experienced traders can take advantage of include transaction fees and auto-logout.

In addition to the four-tier transaction fee structure, experienced traders can decide to set a custom transaction fee to be paid in Bitcoin Satoshi. They can also add notes difto ferent Bitcoin transactions and set an automatic logout timer for their apps.

These and more add-ons like SPV synchronization and or PGP key have earned the crypto wallet app a nickname – ‘fancier wallet.’

Blockstream Green wallet supported currencies.

Despite all these operational and security features integrated into the Blockstream Green wallet, it will only support one cryptocurrency – Bitcoin. This sets it apart from its peers of equally advanced crypto wallet apps that support a wide range of cryptocurrencies and tokens. It also sets it apart from some Bitcoin-specific wallet apps that support both Bitcoin and its hard fork – Bitcoin Cash.

If you, however, wish to invest or interact with more crypto coins and tokens while enjoying the security and operational features of the Green wallet, consider integrating it with a hardware wallet.

Blockstream Green cost and fees:

Downloading and installing the Blockstream Green crypto wallet app is free, and so is using it to store your digital assets. You will, however, be charged a small transaction fee when you send Bitcoins from the app. But, you get to set the transaction fee when setting up the account.

Ideally, Blockstream Green crypto mobile and desktop app features five classes of Bitcoin transaction fees under the ‘Replace by fee protocol. The most pronounced are the low-fee transfer option that charges the lowest amounts but takes the longest to execute a transaction, the medium-fee transfer that charges moderate amounts for relatively faster transaction processing, and express-transaction fee that charges significantly higher fees for near-instant transaction processing.

You get to decide on your preferred transaction fee level when setting up your green wallet app. You, however, can always adjust this fee category at any time or shift to the other two pricing models – the customized Satoshi bitcoin payment plan or the economy-fee category. The later is only available on the desktop wallet app and only possible when sending Bitcoins to a wallet within 12 blocks from your physical location.

All of these fee categories are variable and dependent on the transaction volumes.

Blockstream green customer support:

Blockstream Green wallet’s customer supports starts with the FAQ page on the company website that guides you on how to interact with the app and provides solutions to common app challenges. The Blockstream website and both the desktop and mobile crypto wallet apps as well as its web wallet are multi-lingual and currently support over 12 of the most popular international languages.

We also found their customer support team quite friendly and highly responsive. And you can reach out to them by raising a support ticket on the company’s website or contacting them via email info@Blockstream Green.it. Alternatively, you can reach out to them through their different social media pages on Twitter, Facebook, and Instagram.

What are the pros and cons of the Blockstream green crypto wallet app?

Pros:

  • The crypto wallet app is highly secure and has integrated such advanced security features as 2-factor authentication, HD and, Multi-sig wallets.
  • The wallet installation process, as well as its use, are relatively easy and highly straightforward.
  • The Bitcoin-specialist wallet is highly transparent as it is developed on an open-sourced technology.
  • Blockstream green crypto wallet is quite a user friendly and features highly customizable features like different fee categories.
  • The fact that the Blockstream green wallet integrates seamlessly with crypto hardware wallets further boosts its security and number of supported currencies.

Cons:

  • Blockstream Green crypto wallet app will only support the Bitcoin cryptocurrency.
  • It has limited operational features. It doesn’t have such critical features as an inbuilt exchange.
  • Its online nature subjects it to several threats, include hacking and malicious malware.

Comparing Blockstream Green wallet with other crypto wallets

When compared to other hot wallets like Abra, Blockstream Green carries the day because of its security features and ease of use. Its key selling points include its highly innovative approach towards securing the wallet that has since been imitated by the entire industry, its highly customizable transaction fees, and intuitive user interface. But one can’t fail to notice that Abra supports way more cryptocurrencies, has more ways through which you can deposit crypto into the wallet, and active in-built exchange.

Save for the convenience that it offers frequent traders and the fact that it is free to acquire, Blockstream Green wallet’s features pale in the face of a hardware wallet like Trezor. The hardware wallet is considered more secure as it stores your private keys offline, supports a wide range of cryptocurrencies and tokens, and is more insulated from common threats dogging hot wallets like remote hacks.

Verdict? Is the Blockstream Green wallet safe?

Blockstream green wallet has a long history of keeping their client’s data and private keys safe. It was developed and is still maintained by some of the most experienced blockchain and crypto industry experts around. Since its inception, the wallet has led the industry by pioneering some of the most innovative security protocols that have since achieved global acceptance. Other factors that we believe endear this wallet app to most Bitcoin traders are the decongested and highly intuitive interface that makes it easy to use.

We, however, believe that the app would have an even larger following and user-base if it accepted more cryptocurrencies. Going forward, we would also like to see the bitcoin app integrating more features like an in-built exchange.

Categories
Forex Basic Strategies

Dynamic Channel Trading Using The Concepts Of Price Action!

Introduction

Introduction

Introduction

In forex, the dynamic channel trading is a profitable strategy that forms with standard trendlines. It indicates a potential move to identify the market direction both to the downside and upside. On the other hand, price action is a method to identify the price direction based on price behavior. Therefore, we can create a profitable trading strategy by reading the price action from any channel support and resistance level.

In general, traders use price channel as a technical analysis tool that helps to identify the potential market movement. The dynamic channel moves like a zigzag by creating lower lows and higher highs. In Forex trading, we usually have two types of dynamic channels:

  • An upward or ascending channel
  • Downward or descending channel

Dynamic Channel Identification

We can easily identify the dynamic channel by connecting the swing lows or swings highs they create. In an upwards dynamic channel, it will move with the price with a higher high formation.

Similarly, in a downward dynamic channel, it will move with the price by creating lower lows.

In the image above, we can see that the higher highs and the lower lows connected through straight lines. The dynamic price channel shows a significant movement from down to upside in the trend line. The trendline below the price may work as a dynamic support level, and the trendline above the price may work as a dynamic resistance level.

Besides the dynamic channel, we will use the concept of price action by measuring what buyers and sellers are doing in the market. Any slower and corrective movement from the dynamic channel support and resistance would indicate a possibility of a potential market reversal.

Later on, we will use the appropriate reversal candlestick from that area to enter a trade. In this trading strategy, we can make a profit when the price is trading within the channel, or it breaks out from the channel. However, we will filter out the unusual false movement by reading the price action.

Bullish Dynamic Channel Trading Strategy

In the bullish channel continuation trade setup, we will identify the price that is moving upside within the channel.

Identify the Price Location

Central banks and big financial institutes drive the price of a currency pair. Therefore, institutional traders focus on long timeframes mostly, as it provides the most reliable price direction. Therefore, we will move to the daily or weekly timeframe and identify the location of the price. We will consider channels that only meets the following condition:

⚠️ An upward channel should move within an uptrend above a key support level.

Entry

In an upside movement of a price channel, there will be new higher highs. Therefore, we need to identify a price channel where the price moves down towards channel support with a corrective speed. We will enter the trade as soon as the price rejects the channel support with a reversal candlestick formation.

Stop Loss

In a bullish channel trading, the stop loss would be below the reversal candlestick with 10 to 15 pips buffer.

Take Profit

The primary aim of the taking profit would be the immediate channel resistance. However, we have to read the price action to make a trading decision regarding the take profit.

If the price starts to move with an impulsive bullish pressure, it can go beyond the channel resistance. In that case, we can take some partial closing 10-15 pips below the channel resistance and wait for the price to test any event level.

Bearish Dynamic Channel Trading Strategy

In the bearish channel continuation trade setup, we will identify the price that is moving downside within the channel.

Identify the Price Location

Based on the price action context, we will move to the daily or weekly timeframe and identify the price’s location. We will consider channels that only meets the following conditions:

⚠️ A downward channel should move within a downtrend from a key resistance level.
Entry

In the downward price channel, there will be lower lows. Therefore, we need to identify a price channel where the price is moving down towards a channel resistance with a corrective speed. Therefore, we will read the price action and enter the trade as soon as it rejects the channel resistance with a reversal candlestick pattern.

Stop Loss

In the bearish channel trading, the stop loss would be above the reversal candlestick with 10 to 15 pips buffer.

Take Profit

The primary aim of the taking profit would be the immediate channel support. However, we have to read the price action to make a trading decision regarding the take profit.

If the price starts to move with an impulsive bearish pressure, it can go beyond the channel support. In that case, we can take some partial closing 10-15 pips above the channel support and close the rest of the amount at the next event level.

Channel Breakout Trading Strategy

In forex trading, when the price crossed (above or below) the channel, there is a profitable trading strategy. For making the trade sustainable, we need to identify the speed of the breakout. When institutions or banks enter the market, we see such massive breakout from the channel support or resistance.

Entry

After a massive breakout from a dynamic channel, we will wait for a correction. The correction indicates that the massive breakout would be strong. We will wait until the price moves to the channel support or resistance level with a corrective speed and enter the trade as soon as it rejects the level with a reversal candlestick formation.

Stop Loss

Setting a stop loss is similar to the channel continuation trade setup. You can put your stop loss above or below the reversal candlestick with 10 to 15 pips buffer.

Take Profit

The primary target of the channel breakout is the immediate event level. However, you can extend the take profit by reading the price action. If the power of the breakout is strong, the price may move beyond the immediate event level.

Conclusion

The Forex market is a competitive trading market where trade management is a key element for a forex trader. No trading strategy can assure you a confirmed profit. Therefore, it is recommended to use not more than 2% risk per trade and move the stop-loss at breakeven as soon as the price creates new lows or highs.

Categories
Cryptocurrencies

What’s Crypto.com All About?

Blockchain and cryptocurrency are two emerging techs that can no longer be ignored. By enabling trustless, immutable, and decentralized financial solutions, blockchain is laying the foundation for a new generation of better and inclusive financial applications. 

Blockchain and cryptocurrency are two emerging techs that can no longer be ignored. By enabling trustless, immutable, and decentralized financial solutions, blockchain is laying the foundation for a new generation of better and inclusive financial applications. 

Blockchain and cryptocurrency are two emerging techs that can no longer be ignored. By enabling trustless, immutable, and decentralized financial solutions, blockchain is laying the foundation for a new generation of better and inclusive financial applications. 

Crypto.com is an effort to push the world’s adoption of cryptocurrency. The platform has a motto: “put currency in every wallet.” Its main offering and what majorly contributes to this effort is its Monaco (MCO) visa card. Through the Visa card, Crypto.com hopes to solve the issue of traditional systems not accepting payment in crypto. And those that do, they do so through slow and often expensive processes which bar many people from using cryptocurrency.

Crypto.com hopes to solve this by offering “the best way to pay and be paid in crypto, anywhere, any crypto, for free.” 

What’s Crypto.com?

Crypto.com is a cryptocurrency and payment platform whose goal is to advance the worldwide adoption of crypto. Founded in 2016, the platform houses a range of products – from an exchange to crypto Visa cards, to a wallet and a crypto investment platform. 

According to the team, “We strongly believe that decentralization is an important part of a better society for everyone, and by accelerating the world transition to cryptocurrency we are helping the world move in this direction. We will achieve this by building on one side, a network of cryptocurrency projects, and on the other side, focus on developing merchants’ ability to accept crypto as a form of payment.”

Crypto.com’s Go-to-Market Strategy

Crypto.com has a clear vision of how it wants to accomplish this. It has four “disruptive forces” to this end: 

  • Great offers for users to incentivize the usage of cryptocurrency
  • Zero transaction fees for merchants
  • A seamless experience for users
  • A decentralized and trustless protocol to process transactions

What Does Crypto.com Offer?

Why should you care about Crypto.com? Well, that’s because it offers several great financial benefits for users. Signing up for Crypto.com gives you access to the following features: 

  • MCO Visa card through which you can spend crypto anywhere in the world
  • Crypto.com app that allows you to buy, exchange, send and track crypto
  • Crypto Credit feature that enables you spent money on credit through your MCO Visa card
  • Crypto Earn that allows you to earn up to 20% interest by depositing crypto
  • Crypto.com Exchange, a crypto exchange that has deep liquidity, competitive fees, and favorable execution prices

Crypto.com’s Native Tokens: MCO and CEO

The Crypto.com ecosystem utilizes a dual-token system. The tokens in question are MCO and CEO.

The MCO Token

The MCO token plays the following roles in the ecosystem: 

  • Allows users to own visa cards by staking in the tokens
  • Allows users to get cashbacks (depending on the card tier) on spending
  • Allows users to earn extra rewards like Netflix, Spotify, and Amazon Prime and other benefits when they stake more tokens
  • Receive MCO at 6% p.a. for 500 and 8% p.a. for 5,000 and 50,000 amount in stake, respectively

The CRO Token  

The CRO token has the following utilities:

  • Facilitate cross-assets currency settlements on Crypto.com
  • Reward nodes for validating and processing transactions
  • As payment for transacting in CRO
  • As a 50% discount to users when they purchase crypto on the crypto.com exchange
  • Get users to access to Crypto.com’s Syndicate platform

Crypto.com Exchange

Crypto.com has an in-house exchange that was launched in November 2019. Let’s look at some of the features of the exchange:

  • The Vortex Liquidity System that allows users access to a global trading platform
  • A 100% trading fee discount depending on your trading volume for the last 30 days and the amount of staked CRO
  • 0% trading fee for the first 90 days
  • Earn up to 20% interest just by depositing crypto
  • A Matching Engine in an Order Management System that provides a fast and efficient trading environment
  • Intuitive and interactive environment powered by a unified REST and Websocket API

Crypto.com Fees

Crypto.com charges a maker and taker fee starting at 0.2% and a transparent, competitive fee structure. However, staking CRO tokens grants you cheaper fees a 20% ROI on the staked amount. 

Crypto.com’s MCO Visa cards

Crypto.com provides five tiers of Visa cards that you can choose depending on your budget and needs. Let’s go through each of them:

Midnight Blue: This card is beginner level. With the Midnight’ Blue card, you get 1% cashback. There is a withdrawal limit of $200, a withdrawal fee of 2%, and an interbank fee of 0.5%. You don’t need to own MCO tokens to own Midnight Blue.

Ruby Steel: With this card, you get a 2% cashback when you stake 50 MCO tokens and a 1% cashback when you don’t. Also, when you stake, you get a $4,000 interbank exchange rate limit and no limits on ATM withdrawal. 

Jade Green/Royal Indigo: This tier is unlocked by staking 500 MCO tokens. With either of these cards, you get a 3% cashback, and if you don’t stake an MCO, you get a 1.5% cashback. 

Icy White: When you stake 5,000 MCO tokens, you get a 4% cashback and stand a chance to earn bonus interest. This level has a $20,000 interbank exchange rate limit of $20,000 and an ATM withdrawal limit of $1,000. No-staking gains you a 1.75% cashback. 

Obsidian Black: This is the highest level available. Staking 50,000 MCO grants you 5% cashback and unlimited interbank exchange rates, and an ATM withdrawal limit of $1,000. Not staking gives you a 2% cashback. 

Depending on the tier, there are also various benefits ranging from free access to Netflix, Spotify, Amazon Prime, airport lounge access, an exclusive merchandise welcome pack, and rebates on Airbnb and Expedia.

Tokenomics of Crypto.com

Now, let’s check in on how Crypto.com stacks up in the market. As of July 29, 2020, the cryptocurrency was the 9th largest in the world, with a market cap of 2.95 billion. Its 24-hour volume was $115, 652, 263, and it had a circulating supply of 18, 466, 210, 046, and a total supply of 100 billion. Crypto.com’s highest ever price was $0.168761, while its lowest ever was $0.011487 (Dec 17, 2018). 

Buying and Storing Crypto.com

You can purchase Crypto.com from several exchanges, including OKEx, Huobi Global, HitBTC, Bittrex, BitMart, DigiFinex, BitHumb, Gate.io, CoinDCX, Sistemcoin, CoinTiger, and KuCoin.

Crypto.com has provided its own wallet, the Crypto.com Wallet, which is “designed to give you full control and secured custody of your crypto.” If you’re using user-custodied wallets such as Ledger and MyEtherWallet, you can migrate your existing wallet to the Crypto.com wallet using a 12/2824 recovery phrase. Following the import, you can continue managing your crypto using the Crypto.com Wallet.

Closing Thoughts

In its small way, Crypto.com is doing its part in promoting the wide-scale use of crypto. With the MCO Visa card, say goodbye to not being able to spend crypto your funds. And the bonus is if you stake in the MCO token, you unlock loads of possibilities with what you can do with the card. Multiply your crypto holdings just by putting it to work for you. Build an investment portfolio without breaking a sweat. Get lots of benefits by using the native exchange platform. No matter your needs, there’s something for everyone on Crypto.com!

Categories
Crypto Videos

Americans Trading Depreciating Dollar For Bitcoin!

https://youtu.be/eVf_DdljkQM

https://youtu.be/eVf_DdljkQM

 

Americans Trading Depreciating Dollars For Booming Bitcoin

A Bloomberg article that came out recently claims that Americans are foregoing the largest fiat currency, the US dollar, for more speculative assets such as stocks, gold, as well as Bitcoin.

High saving rates, low yields

As the COVID-19 lockdown continues in the US, the personal savings rate of Americans is at a historic high. On the other hand, the yield offered to them by financial institutions on savings accounts is close to zero. Meanwhile, assets like Bitcoin, equities, and gold, all made double-digit gains since March.

The article talks about a 28-year-old Californian who said that he is soon going to take out his $15,000 savings that were held in a high-yield savings account at Ally Bank and convert them into Bitcoin.

USD July performance

If we look at USD from an objective standpoint, the reality is even worse than what Bloomberg article suggests. The dollar is rapidly depreciating against almost every single leading fiat currencies. As a matter of fact, according to the Financial Times, July is by far the worst month USD had in a decade.

With yet another round of stimulus checks just around the corner, as well as most of the US still affected by COVID-19 restrictions, it is quite possible that this problem will most likely only get worse. Americans may have more depreciating USD on their hands in the short term, which they could seek to convert into higher-yielding assets, such as crypto. However, as they say, there is no such thing as a free lunch, as higher rewards always bring higher risks.

Categories
Crypto Videos

Grayscale Can Now Publicly Trade BCH and LTC! FINRA Approved!

https://youtu.be/mGqiKjddT9s

https://youtu.be/mGqiKjddT9s

Grayscale Can Now Publicly Trade BCH and LTC – Approved by FINRA

Crypto fund manager giant Grayscale Investments will now make Bitcoin Cash and Litecoin available for public trading. This will be done through shares of the firm’s cryptocurrency trusts.

A July 20 announcement stated that Grayscale got verified by the Financial Industry Regulatory Authority (FINRA for short) to transact shares of the firm’s Bitcoin Cash Trust as well as Litecoin Trust. The two stocks will be available for public trading very soon. They will go under the tickers BCHG and LTCN.

Grayscale reported that it has 2,725,300 shares in its BCH Trust for $5.8 million assets under management, as well as 509,400 shares of the LTC Trust totaling $2 million as of June 30.
Publicly traded tokens
Grayscale’s trust will provide a means of investing in crypto without actually having to hold the tokens. According to the investment firm, this investing strategy avoids “the challenges of buying and storing digital Bitcoin Cash or Litecoin directly.”

Shares of BCH and LTC are the fourth and fifth public offerings that came from Grayscale. The firm previously received approval to list shares of Bitcoin, Ethereum, and Ethereum Classic. Horizen, Stellar Lumens, XRP, and Z-cash, are available for trading through Grayscale’s trust directly.

At the time of writing, Bitcoin Cash and Litecoin are valued at $251.11 and $48.37, respectively. According to CoinMarketCap, BCH is rated as the fifth largest token by market cap, while LTC is the eight.

Categories
Crypto Videos

When Will BTC Hit $20,000 Analyst Opens Up!

https://youtu.be/Mj_8X6ThnGQ

https://youtu.be/Mj_8X6ThnGQ

 

When Will BTC Hit $20,000? Analyst Opens Up

Capriole digital asset manager Charles Edwards made a statement that, in his opinion, Bitcoin will pass $20,000 if US banks invest even 1% of their assets in crypto. On top of that, he added that this was not impossible as the unfolding trend is “not hard to see.”
“If US banks put even just 1% of their assets into Bitcoin as an investment, insurance or hedge… the Bitcoin price will more than double” he wrote on Twitter, further adding:

“Just Grayscale already owns 2% of circulating Bitcoin supply today. It is not hard to see which direction this is going in.”
Edwards uploaded a chart of US banks’ asset balances as further proof of the potential impact they could have if they leaned even slightly towards BTC.

Institutions quietly buying BTC

While this is the opinion of only one analyst, the current market development is showing that this is not just an opinion. US lenders received a green light from regulators to engage in cryptocurrency custody activities last week, which opened up a lot of possibilities.
Whether an influx of buyers from the banking sector would ultimately benefit Bitcoin remains a contentious topic, but the overall opinion of the community leans towards this being beneficial, if not mandatory, for Bitcoin’s price development.
As time passes, we will see more and more institutions reaching towards crypto, therefore increasing the demand. “It’s not a matter of it being good or bad,” Edward said.

Categories
Crypto Videos

Where Did They Go? 10,000 Antminers stolen!

https://youtu.be/K6_hofOrqtE

https://youtu.be/K6_hofOrqtE

 

Where Did They Go? 10,000 Antminers ‘Missing’ From a Facility in Mongolia


The power struggle at crypto mining giant Bitmain is continuing. Not only have the accusations of certain “illegal power seizures” made headlines, but the physical theft of mining hardware as well.
Bitmain-owned Antminer’s Wechat channel made a post alleging that former Bitmain staff has “illegally moved” around 10,000 Antiminer Bitcoin mining rigs from a Mongolia-based company-owned facility.


The machines included models from the S17 and T17 series, as well as the flagship S9 miners, and they were reportedly removed in mid-July. This reportedly caused serious economic losses to Bitmain and its customers. The fact that the incident has been reported to the police as well as public security authorities acts as further proof that this allegation is not just another story.
At stake is not only Bitmain’s personal hardware but also hardware belonging to its clients, as there are many who choose to have their mining hardware hosted at the manufacturer’s mining rigs.
Bitmain’s co-founder, Micree Ketuan Zhan, accused his other co-founder Jihan Wu of being the one responsible for the “illegal transfer” of the mining hardware.

Bitmain’s power brawl

Wu Jihan, the co-founder of Bitmain Technologies Ltd., poses for a photograph in Hong Kong, China, on Friday, May 18, 2018. The Coingeek Conference runs through today. Photographer: Anthony Kwan/Bloomberg via Getty Images

This conflict seems to have drawn two co-founders further apart, as they are now furiously fighting over who has the position of the legal representative at Bitmain.
This public battle started in October 2019 when Jihan Wu reportedly considered Zhan responsible for the illegal power seizure.

This battle is apparently growing out of the business field, as Bitmain’s CFO was arrested in May after supposedly participating in a purported “mob attack” on the co-founder Micree Ketuan Zhan. In June, reports showed that Zhan had hired guards to forcibly seize control of the Bitmain’s Beijing office.
At present, Jihan Wu retains formal authority over Bitmain’s operations based in Hong Kong.

Categories
Forex Basic Strategies

You Must Know This ‘7-Day Period’ Forex Trading Strategy!

Introduction

Introduction

Introduction

Trying to pick the top or bottom is one of the favorite things a trader likes to do. We tried to do that using the ‘Dolphin Strategy.’ We did that with no indicator support. We are again going to unveil a strategy that does pick a top or bottom with no indicator support. This strategy is called the 7-Day period strategy. Let us take a step back and think, indicators are nothing but a mathematical representation of prices, which are calculated in different ways.

Therefore, sometimes it is important to look at prices alone. The 7-day period strategy is based on the idea that after every seven days of consecutive strength, a currency pair’s move is due for a retracement. The question arises, why seven days? This number is derived after constantly watching the market for years. Often, a new trend emerges at the beginning of the week, and if the trend is strong, it can last for several days with no retracement.

Many psychologists believe that human beings have the best retention rates on numbers that are in groups of seven or less. This is one of the reasons why phone numbers in the U.S. only have seven digits, aside from the area code. We have seen that the seven-day reversal pattern is more accurate in a trending market. We gave occasionally seen those periods when the market continues to move in the same direction after seven days of the exhaustive movement, i.e., from the 8th day onwards. Even though the setup is rare, when it does occur, it is significant.

Time Frame

As the name of the strategy suggests, it can be traded only in the daily time frame.

Indicators

In this strategy, no indicators are used. Simple Moving Average (SMA) can put on the chart to get a clear idea of the trend.

Currency Pairs

This strategy can be applied to all the currencies in the forex market. Exotic pairs should be avoided.

Strategy Concept 

The basic idea of the strategy is that when the market is strongly trending on the hourly chart, the retracement does not last more than seven days and changes its direction at the sixth or seventh day. This retracement is considered to over-extended, which leads to a strong reversal in the pair.

If the sixth or seventh candle coincides with a key technical level, the ‘move’ may very well stall at that level and continue its major trend. To implement the strategy effectively, we need to know trends and trend retracement. Since this strategy is based on fixed rules and price action, it is not necessary to know about technical indicators. However, SMA and ATR can be used for trend identification and measuring the momentum of the market.

Trade Setup

In order to understand how the strategy works, we will apply it on the USD/CAD currency pair and execute a ‘short’ trade using the strategy.

Step 1

The first step is to identify the direction of the market. As this is a trend trading strategy, we should be able to identify the major direction of the market. If the market is making higher highs and higher lows, it is an uptrend, or if the market is making lower lows and lower highs, it is a downtrend. A trend can also be determined using the Simple Moving Average (SMA) indicator. Very simply, if the price is below SMA, we say that the market is in a downtrend, and if the price is above the SMA, the market is said to be in an uptrend.

In the example we have considered, from the below image, it is clear that the market is in a strong downtrend.

Step 2

Next, wait for a retracement from the highest or the lowest point, which we will be evaluated based on our strategy rules. The retracement should be such that there are seven consecutive candles of the same color. One or two candles of the opposite color are okay, but we need to make sure that it does not impact the structure of the retracement. These seven candles represent an extended pullback, which can lead to reversal any moment.

In the below image, we can see seven days of the up movement, which is exactly the kind of retracement which we need for the strategy.

Step 3

In this step, we need to check the position of the price after seven straight days of the movement. The strategy works best if the price coincides with a key technical level of support and resistance. This is because, in these areas, the price action is very strong, and market moves as per expectations. But it is important to make sure that no step of the strategy is used individually. All of them need to be used collectively.

We enter the market once we get confirmation after the 7-day period. The confirmation is nothing but a bullish candle in case of a ‘long’ setup and a bearish candle in case of a ‘short’ setup.

In our example, we see that the price has approached the previous ‘lower high’ of the downtrend. This is an area where we can expect sellers to get active and take the price lower.

Step 4

Finally, we need to determine the ‘stop-loss’ and ‘take-profit‘ for the strategy. We place the stop-loss a little higher than the bullish candle when entering for a ‘long’ and little lower the bearish candle if entering for a ‘short.’ We take profit at two places in this strategy. The first take-profit is set at the previous higher high or lower low, while the second take-profit is set at 1:2 risk to reward.

Strategy Roundup

As there are many conditions associated with the strategy, the setup might be rare, but when it does occur, it is significant. We have seen trends where the retracement occurs for just a few days before it starts moving in the direction of the major trend. But these setups are not reliable. The most important condition of this setup is the continuous appearance of bullish or bearish candles for seven days.

Categories
Cryptocurrencies

What’s Matic (MATIC) All About?

Blockchain tech has proven to the world that it’s a force to reckon with. It has powered thousands of cryptocurrencies that have shaken the finance world to the core. Multiple industries are scrambling to integrate the tech to benefit from the remarkable characteristics of decentralization, immutability, and radical transparency.

Blockchain tech has proven to the world that it’s a force to reckon with. It has powered thousands of cryptocurrencies that have shaken the finance world to the core. Multiple industries are scrambling to integrate the tech to benefit from the remarkable characteristics of decentralization, immutability, and radical transparency.

Blockchain tech has proven to the world that it’s a force to reckon with. It has powered thousands of cryptocurrencies that have shaken the finance world to the core. Multiple industries are scrambling to integrate the tech to benefit from the remarkable characteristics of decentralization, immutability, and radical transparency.

But despite the attention they have garnered, blockchain-based applications still haven’t gone mainstream. Even applications based on Ethereum, the most popular decentralized applications (DApps) platform, are yet to receive wide-scale recognition. Even in the case of the wildly popular CryptoKitties game, it was only a matter of time before the entire Ethereum network was almost crippled because it couldn’t handle the sheer volume of transactions. Scalability issues and not-so-friendly user experiences are partly to blame. 

The other problem is, for the few smart contract platforms that have managed to achieve high throughput levels, they tend to trade-off speed with decentralization. Also, most upcoming solutions create their own blockchains incognizant of the fact that platforms like Ethereum have already attracted a massive developer community. 

Matic is a Layer 2 solution that seeks to solve the problems facing blockchain-based applications through the use of sidechains. For now, Matic focuses on the Ethereum blockchain but plans to extend its offerings for other smart contracts platforms in the future. 

Let’s examine just how Matic intends to do this.

Understanding Matic

Matic is a platform that wants to solve the scalability and user experience issues of the blockchain, all while still letting decentralization thrive. Matic aims to achieve this through the following key features: 

  • Scalability: provide fast, secure, and minimal to low-cost transactions. 
  • High throughput: achieve up to 10,000 TPS enabled by multiple side chains for horizontal scaling
  • User experience: provide a smooth interface and provide native mobile apps
  • Security: Matic token stakers maintain and secure the network themselves
  • Public sidechains: Matic supports public and permissionless side chains (as opposed to individual DApp chains) that are capable of supporting multiple functionalities

Matic’s Value Proposition

Matic’s value proposition lies both in its technical approach and its variety of potential use cases. Let’s see how: 

#1. Matic utilizes a variant of MoreVP (More Viable Plasma). This framework facilitates protection for assets in the main chain, while generic transactions are secured by a proof-of-stake consensus mechanism. Matic sidechains can use the Ethereum Virtual Machine (EVM) and are thus capable of deploying solidity smart contracts, making it easy for Ethereum developers to use to scale their decentralized applications.

#2. Matic sidechains are capable of supporting the many decentralized finance (DeFi) applications running on top of Ethereum

#3. Matic’s core aim is to provide an enhanced user experience that’s unlike anything offered by today’s centralized applications

#4. Matic aims to support more base chains in the future, apart from Ethereum, as will be proposed by community members

Players of the Matic Ecosystem

The Matic ecosystem will comprise the following participants:

  • End Users 
  • DApps developers. These are the businesses that will take advantage of the Matic platform to offer a better user experience 
  • Stakers: Stakers maintain the security of the network through a proof of stake consensus mechanism with a two-thirds majority. Stakers will also elect block producers amongst themselves, according to certain criteria. Stakers must purchase Matic tokens to qualify for the role
  • Block producers: These are individuals who facilitate block generation. They are chosen by the stakers and have to purchase a significant stake to qualify for the role

The Matic Architecture

The Matic network features a three-tiered architecture that enables it to achieve its scalability and user scalability goals: 

  • The Staking and Plasma smart contracts on Ethereum
  • Heimdall (Proof of Stake Layer)
  • Bor (Block producer layer)

#1. Matic Smart Contracts

Matic runs a set of smart contracts on the Ethereum blockchain. These smart contracts carry out the following responsibilities: 

  • Managing staking functions for the proof-of-stake layer
  • Delegating various management roles, including validator shares 
  • Managing plasma contracts for MoreVP, including checkpoints for sidechains

#2. Heimdall (proof-of-stake validator layer) 

This is the PoS validator node that works together with staking contracts on Ethereum to facilitate the PoS mechanism on Matic. The Heimdall nodes are built on Tendermint, and they validate blocks, select the block producer committee, and so on.

#3. Bor (Block Producer Layer)

Bor is the block producer layer for the Matic network. Block producers are not permanent, but rather shuffled periodically in durations known as ‘spans.’ 

Potential Use Cases

The Matic network, with its goal to provide a scalable and user-friendly environment for users, will support various uses cases, including the following: 

#1. Payments 

The Matic network will facilitate payments in crypto assets for users, payment APIs, merchants. The network will first support Ether, ERC20, and ERC721 tokens, with plans to add more cryptos in the future.

#2. Atomic swaps

Via Matic smart contracts, users will be able to pay and receive payments in their preferred crypto token.

#3. Liquidity providers

Individuals and entities will be able to use the Matic network to exchange a variety of tokens for others by utilizing Magic’s 0x liquidity pool. For Fiat, the Matic team it’s planning to onboard Fiat liquidity providers in major currencies.

#4. Decentralized exchange (DEX) 

The Matic network will support trustless, reliable, and fast crypto trades. The DEX offers better security and solvency as compared to centralized exchanges.

#5. Identity

The Matic network will support an Open-Identity system through which users can sign transactions without having to submit the private team for each single DApp. The system will provide users with control over their private keys. 

#6. Games

The Matic network will support the buying, selling, and trading of in-game assets on its multiple side chains. Developers will get access to a fast, efficient, and secure platform to experiment with various games. 

#7. Infrastructure

The Matic team believes in the mantra “simple and seamless.” For this reason, the network will offer a user-friendly app or structure with user-friendly crypto wallets for both users, user-friendly payroll dashboards, easy-to-use payment software development kits, and more.

Fraud Proofs

To enhance the security and integrity of the network, the Matic network implements Fraud Proofs on the mainchain. Using this mechanism, users can submit the details of any transaction that they suspect is fraudulent. If the transaction turns out to be indeed fraudulent, the stake of the transaction owner is slashed, and the user who submitted the proof is given the slashed funds as a reward. The Matic team considers this a sort of ‘perpetual’ bug bounty program that can help to incentivize good behavior among network participants.

How Does the Matic Token Fit In?

The MATIC token is the native utility token of the network. It plays the following roles in the ecosystem: 

  • Participation and proof of stake consensus. For network participants to be chosen as block producers, they must stake Matic tokens.
  • As a unit of payment by developers who wish to create DApps on the Matic ecosystem
  • As payment of staking rewards to PoS stakers 

The MATIC Token Distribution

The MATIC token was distributed as follows:

  • 3.80% went to the private sale
  • 19% went to the Launchpad token sales
  • 16% went to the team
  • 4% went to advisors
  • 12% was reserved for network operations
  • 21.86% went to the foundation
  • 23.33% was reserved for the running of the ecosystem

Tokenomics of MATIC token

As of July 28, MATIC traded at $. 0.020814. With a market cap of $77, 987, 502, it was the 97th largest cryptocurrency in the world. The token has a 24-hour volume of $27, 493, 973, a circulating supply of 3, 746, 869, 854, and a total supply of 10 billion. MATIC’s all-time high was $0.045017 (May 21, 2019), and its all-time low was $0.003012 (May 09, 2019). 

Where to Buy and Store Matic

You can purchase MATIC from any of several exchanges, including Binance, BitForex, BitMax, Poloniex, HitBTC CoinDCX, WhitBit, Folgory, Coinone, Omgfin, CEX.io, Cat.Ex and Oasis Exchange. 

For storage, the Matic team provides the Matic Wallet available for iOS and Android. Third-party options include Trust, MyEtherWallet, Atomic Wallet, Ledger, and Trezor. 

Final Thoughts

Matic wants to provide scaling solutions for smart-contract platforms through the innovative combination of sidechains, the Plasma Framework, and the PoS validation mechanism. Instead of trying to reinvent the wheel, Matic focuses on already working solutions that will complement its approach. The large developer community on Ethereum will find the Matic solution quite useful and timely. 

Categories
Crypto Daily Topic Cryptocurrencies

What’s Yield Farming?

The newest and hottest DeFi trend in town is ‘yield farming.’ And no, it has nothing to do with rain and crops and granaries. Instead, ‘DeFiers’, or DeFi fans, have latched onto the metaphor to describe interest or ‘yield’ that’s achieved when they put to use crypto assets such as Dai, USDC, and USDT into DeFi platforms such as Compound. 

The newest and hottest DeFi trend in town is ‘yield farming.’ And no, it has nothing to do with rain and crops and granaries. Instead, ‘DeFiers’, or DeFi fans, have latched onto the metaphor to describe interest or ‘yield’ that’s achieved when they put to use crypto assets such as Dai, USDC, and USDT into DeFi platforms such as Compound. 

The newest and hottest DeFi trend in town is ‘yield farming.’ And no, it has nothing to do with rain and crops and granaries. Instead, ‘DeFiers’, or DeFi fans, have latched onto the metaphor to describe interest or ‘yield’ that’s achieved when they put to use crypto assets such as Dai, USDC, and USDT into DeFi platforms such as Compound. 

The DeFi scene had already exploded in 2020 before yield farming became the next big thing. But in June, things went notches higher after DeFi platform Compound started distributing its governance token, COMP, just this June. In other words, Compound started rewarding users with the COMP token. The platform has taken on a near-celebrity credential in the DeFi world, thanks to the distribution. Hordes of investors and traders have flocked to the network to “farm” COMP. 

So, how does yield farming work? Let’s demystify this trend as we explore any risks that you need to look out for. 

How Yield Farming Works

At its core, yield farming, a.ka liquidity harvesting, is when you lend cryptocurrency, such as USDC or Tether, using a platform such as Compound. Compound will, in return, lend the funds to borrowers who want to use them for speculating in the market. Interest rates will vary with market movements as well as demand. However, just by participating in the Compound platform, you start to earn COMP tokens and interest. Other miscellaneous fees may also make part of the final equation. If the COMP tokens increase in value, your returns will also see a massive jump. 

What kind of cryptocurrencies are involved? 

Currently, Compound, only launched in June, is the biggest such service. Other major coins include Balancer, Ren, Curve, and Synthetix. Synthetix is the one that came up with the idea. As we speak, these projects have $1 billion in user funds locked up for lending. Most of the users are speculators seeking to earn triple-digit returns.

What are the Risks? 

Well, for one, theft. The crypto scams and frauds you hear about are not far off just because this is a new type of investment. Remember, the funds you lend out are stored in software. And hackers always seem to have a knack of discovering new ways of compromising even the most seemingly foolproof code and stealing funds. 

There’s also the risk of deposited coins losing value – a phenomenon that could cause the entire system to crash and burn. Moreover, there’s the whale effect. This is when investors with significant holdings go short, a move that could potentially shake the market. 

On the whale point, still, there’s concern that they could manipulate prices. If a whale lends to a platform like Compound and then borrows the money back, it effectively creates artificial demand for the currency, creating inflation. Traders with modest holdings need to know that yield farming “has become a game for whales who are capturing the vast majority of rewards,” as pointed out by crypto research firm Messari. 

Why is Yield Farming Suddenly Hot? 

The reason is twofold. Amid the Covid-19 pandemic, cryptocurrencies, generally viewed as independent of system controls, have witnessed a surge of interest as Fiat currencies experience volatility due to overall economic uncertainties. There’s also the fact that these yield-harvesting products only just recently debuted, and are backed by high-profile entities like Andreessen Horowitz and Polychain. 

What’s the Future of Yield Farming?

Jesse Walden, the founder of venture fund Variant, has said that while yield farming can promote growth for the sector right now, for it to succeed in the long-term, users have to have a reason to continue staying in the platforms. 

“Yield hacking in DeFi is a short-term incentive to drive user growth, but the bigger game is the long-term wealth creation that comes from building (and owning!) a piece of the products and services that billions of people will use every day.” 

Yield Farming Tips

Here’s how the most successful yield farmers are getting, well, profitable harvests. 

A DeFi investor by the name Degen Spartan says the strategy of investing stablecoins in the sUSD Curve pool and depositing  LinkPool tokens on the Synthetix forum has yielded him an Annual Percentage Yield (APY) of 20%  since he started investing this way in 2019. Spartan thinks that the increased investor interest in COMP  has allowed the less explored investing strategies to thrive, increasing the overall yield in the DeFi space.

CoinFund founder and managing director Jake Brukhman believes there’s a lot of potential in the niche. He says he has witnessed APYs of anything from a few points to several hundred points, but that this hinges a lot on what assets you hold and your risk tolerance. Brukhman believes this success is a result of either the overzealousness of these protocols (some are offering capital at incredibly low rates) or inefficiencies in their systems (still a young niche). 

Another investor going by the name SNX Professor recommends monitoring your trades daily, and only switch between lending protocols only when it makes sense. This is because yield farming, like any type of investment, takes time. Remember, you’ve invested in things such as transaction and slippage fees. As such, it’s better to wait it out in one platform until your investment can truly yield results. 

And lastly, 1kx founding partner Lasse Clausen believes investing in these up and coming protocols is way more promising than investing in platforms that are already highly valued.

Closing ThoughtsYield farming is disrupting the DeFi scene and capturing the attention of investors and traders. For fear of missing out (FOMO), it’s easy to jump in the bandwagon rather blindly. However, this new type of crypto investing might be flashy and promising, but that doesn’t mean you should throw caution to the wind. Take highly measured steps and don’t put in more money than you’re willing to lose. 

Categories
Forex Basic Strategies

Divergence Trading – MACD Regular Divergence Forex Strategy

Introduction

Introduction

Introduction

MACD regular divergence is a trading strategy that considers the relationship between Moving Average Convergence Divergence and the price.

MACD, a technical indicator, invented by Gerald Appel in 1979. It is very famous among professional and institutional traders; therefore, it can provide a reliable trading opportunity. On the other hand, divergence is a significant concept in trading that happens between the price and oscillator.

In most of the cases, oscillators like MACD or RSI move with the price. However, there is some condition where MACD does not follow the same direction of the price and creates divergence.

What is the MACD Divergence Strategy?

MACD is a Momentum based indicator that shows the correlation between two moving averages. Traders use this indicator in stocks, bonds, and forex trading as a trend continuation and reversal indicator. If you want to become a successful forex trader, MACD would be the best indicator to follow.

If you use a momentum-based strategy, MACD is the best available technical indicator for you. If you trade using the MACD divergence strategy, it will show you the proper entry and exit points.

There are several types of divergence, but in most cases, investors use the following types of divergences:

Hidden Divergence

It happens when the MACD histogram creates divergence with the price. It indicates a minor market reversal and significant trend continuation.

Regular Divergence

It happens when MACD EMA moves to the opposite direction of the price. Regular divergence from a significant support or resistance level indicates a potential market reversal.

In the example below, we can see a naked chart with a MACD indicator.

If you look at the image, you can see several lower lows, and higher highs in the price and MACD EMA also followed the same direction. However, there is some point where the price and MACD did not follow the same direction as indicated in the image below.

This is how divergence forms in the price. It indicates a potential market reversal if it happens from significant support or resistance levels.

Bullish MACD Regular Divergence Trading Strategy

Bullish MACD regular divergence happens when the price of a currency pair moves to the opposite direction of the MACD histogram from a significant support level. Therefore, bullish MACD divergence strategy is considered as the positive divergence signal.

Timeframe

In this trading strategy, there is no specification of the timeframe. However, this trading strategy works well in H1 and H4 timeframe.

Currency Pair

The MACD divergence trading strategy works well in most major and minor currency pairs, including EURUSD, GBPUSD, USDJPY, and AUDUSD.

Location of the Divergence

It is essential to identify the location of the price. In this bullish divergence trading strategy, the price should form the divergence in a critical support level. Any divergence from a random place rather than a vital level would not provide good profitability. Before moving to the entry point, we should find Negative Positive and Negative (NPN) MACD histogram to form.

Entry

After forming the divergence, we should wait for a bearish reversal candlestick to enter the trade. Make sure to enter the trade as soon as the candle closes.

Stop Loss and Take Profit

In the bullish divergence trading strategy, stop loss would be below the reversal candlestick candle with 10-15 pips buffer.

The first take profit level would be based on 1:1 risk: reward, where you should close 50% of the trade and move the stop loss at breakeven. Later on, the 2nd take profit level would be based on near term event level from where the market is expected to show some correction.

However, as part of the trade management, you can extend the take profit level based on the market momentum. If the price shows an impulsive bullish pressure near the resistance level, it may break the level by creating a new high. In that case, you can extend the take profit level if your trade management system allows.

Bearish MACD Regular Divergence Trading Strategy

Bearish MACD regular divergence happens when the price of a currency pair moves to the opposite direction of the MACD histogram from a prominent resistance level. It is also considered as a negative divergence signal.

Timeframe

Similar to the bullish divergence, this trading strategy works well in H1 and H4 timeframe. You can use this trading strategy in all timeframes, but the higher timeframe provides a reliable result. On the other hand, traders often find it challenging to observe the price in daily and weekly timeframes. Therefore, H1 and H4 are ideal for swing traders.

Currency Pair

The bearish MACD divergence trading strategy works well in most major and minor currency pairs, including EURUSD, GBPUSD, USDJPY, and AUDUSD.

Location of the Divergence

It is essential to identify the location of the price. In this bearish regular divergence trading strategy, the divergence should format a significant resistance level. Any divergence from a random place would not provide good profitability.

Before moving to the entry point, we should find Positive Negative Positive (PNP) MACD histogram to form.

Entry

After forming the divergence, we should wait for a bullish reversal candlestick to enter the trade. Make sure to enter the trade as soon as the candle closes.

Stop Loss and Take Profit

In the bullish divergence trading strategy, stop loss would be above the reversal candlestick candle with 10-15 pips buffer.

The first take profit level would be based on 1:1 risk: reward, where you should close 50% of the trade and move the stop loss at breakeven. Later on, the 2nd take profit level would be based on the near term event level.

Summary

Let’s summaries the MACD regular divergence trading strategy:

  • Find the divergence based on NPN and PNP from a significant level.
  • Enter the trade after a reversal candlestick formation.
  • Stop-loss should be below or above the reversal candlestick with 10 to 15 pips buffer.
  • The first take profit would be based on 1:1 risk: reward ratio, and the second take profit would be based on the price action on the next event level.

There are more ways to use divergence as a trading strategy. Besides the divergence formation, you should focus on how the price is approaching a critical level. Any weakness at a significant level would indicate the first impression of market reversal. Later on, the divergence would indicate the final try of the opposite party. Happy Trading!

Categories
Forex Daily Topic Forex Price Action

Pay Attention to the Signal Candle Along with Reversal Candle

In today’s lesson, we are going to demonstrate an example of a combination of an H1-15M chart trading strategy. The price makes a strong bullish move and makes a long bearish correction. It produces several bullish reversal candles, but the price does not react to all of them. It makes its bullish move at last. We try to find out why it reacts to that particular bullish reversal candle. Let us get started.

In today’s lesson, we are going to demonstrate an example of a combination of an H1-15M chart trading strategy. The price makes a strong bullish move and makes a long bearish correction. It produces several bullish reversal candles, but the price does not react to all of them. It makes its bullish move at last. We try to find out why it reacts to that particular bullish reversal candle. Let us get started.

In today’s lesson, we are going to demonstrate an example of a combination of an H1-15M chart trading strategy. The price makes a strong bullish move and makes a long bearish correction. It produces several bullish reversal candles, but the price does not react to all of them. It makes its bullish move at last. We try to find out why it reacts to that particular bullish reversal candle. Let us get started.

This is an H1 chart. The chart shows that the price produces a bullish engulfing candle and heads towards the North. The buyers are to wait for the price to make a bearish correction and produce a bullish reversal candle to go long again in the pair. The last candle comes out as a hanging man. It may make the pair make a bearish correction. Let us proceed to the next chart to find out what happens next.

The price makes a long bearish correction. It produces several bullish reversal candles. However, it does not make its bullish move. If we spot out, we find that there have been three significant bullish reversal candles. To make things clearer, have a look at the chart below.

Here are the three most significant bullish reversal candles that the chart produces. On the first two occasions, the price does not head towards the North. Let’s try to dig out what happens on the first occasion. On the first occasion, the chart produces a bullish engulfing candle. This is one of the strongest bullish reversal candles. The buyers are to flip over to the 15M chart. If the 15M chart produces a bullish continuation candle, they may trigger a long entry. Over here, the 15M chart does not produce a bullish continuation candle. Thus, the price does not head towards the North. On the second occasion, the 15M chart produces a bullish continuation candle. You can assume by the look of the next H1 candle. However, the price does not continue its move or makes a breakout at the highest high. The reason behind that is the reversal candle comes out as an Inside bar. On the third occasion, the reversal candle comes out as a bullish engulfing candle. Let us flip over to the 15M chart.

Look at the arrowed candle. This is what comes out after the bullish engulfing candle. The buyers have been waiting to get a candle like this after a strong H1 bullish reversal candle. They may trigger a long entry right after the candle closes (15M). Let us find out how the price moves now.

It moves towards the North with good bullish momentum. We must notice that when two factors come together, the price reacts vigorously. We may find that sometimes the price moves on the case of the second occasion as well. However, when it meets two of them together (H1 bullish engulfing and 15M bullish continuation and vice versa), most likely, it goes towards the trend and helps traders make money.

Categories
Crypto Daily Topic Cryptocurrencies

Best Security Token Issuance Platforms 

Thanks to blockchain, asset tokenization is now a possibility. This is the process of converting the ownership rights of real-world assets into digital rights on the blockchain. Assets are tokenized to improve their market liquidity, and also to open up your asset to a global market through the power of blockchain. 

Thanks to blockchain, asset tokenization is now a possibility. This is the process of converting the ownership rights of real-world assets into digital rights on the blockchain. Assets are tokenized to improve their market liquidity, and also to open up your asset to a global market through the power of blockchain. 

Thanks to blockchain, asset tokenization is now a possibility. This is the process of converting the ownership rights of real-world assets into digital rights on the blockchain. Assets are tokenized to improve their market liquidity, and also to open up your asset to a global market through the power of blockchain. 

Several tokenization platforms are scrambling for the spotlight in a bid to become the go-to place for tokenizing assets. Let’s look at some that are hacking the game right now. 

#1. Securrency 

Founded in 2015 and headquartered in the US, Securrency is a one-stop token issuance platform. It supports token issuing, post-issuance support, and the interoperability of tokens across several blockchain networks.

The platform also came up with the CAT-20 and CAT-721 token standards. Tokens created with this standard can be transferred across blockchain networks (including Stellar, EOS, and Ethereum) and legacy financial systems. This interoperability with several blockchain platforms gives it an edge over other platforms that are only compatible with Ethereum. 

Securrency has also embedded customer management applications that customers can utilize to manage investors and token buyers without having to rely on external applications. 

The platform has entered into partnerships with fintech companies SharesPost, AX Trading, Entoro, Vertalo, OpenFinance, and SeriesOne.

#2. Securitize

Securitize is a token issuance platform founded in 2017 and based in Tel Aviv. The company raised $12.75 million from Blockchain Capital, Coinbase Ventures, Xpring (Ripple), NXTP, and Global Brain Corporation. Securitize has also partnered with fintech companies Tzero, Blocktrade, OpenFinance, Airswap, ShareSpost, Hyperion, and Bnk to the Future. The platform offers the tokenization of equity, funds, and real estate, and plans to add debt in the future. 

The company created the DS Protocol, which generates “DS tokens” that can run on top of the ERC-20 token standard. This means the tokens are only compatible with Ethereum. There’s no mention of compatibility with other blockchain networks. 

Securitize tokens can be traded on crypto exchanges as well as be hosted on clientele systems. The platform has a record registry that supports KYC details, a regulations compliance layer, and a communication protocol that notifies investors of industry trends.

Some of Securitize’s clients have been Blockchain Capital, SpiceVC, Augmate, 22x Fund, and Science Blockchain. 

#3. TokenSoft 

TokenSoft is another trusted token issuance platform that features a ton of functionalities. It’s been funded by investors such as eVentures, Base10, Coinbase Ventures, and Fidelity Ventures. The company has partnered with several other platforms, both in blockchain and fintech, such as OpenFinance, Stellar, Hyperledger, R3 Corda, and Tierion, to enhance its service delivery capabilities to customers. 

Services offered include token issuance and distribution, payment of dividends, trading of issued tokens, post-token issuance support, and digital asset custody solutions. 

TokenSoft developed the ERC-104 standard that enables token issuers to manage investor whitelists and investor limits, and issue tokens globally. Some of the clients that have used TokenSoft for token issuance include Andra Capital, Hedera Hashgraph, and the Tezos Foundation. 

#5. Polymath 

Polymath is a security token issuance platform based out of Toronto and founded in 2017. The platform has partnered with various industry players in finance, legal, custody, and escrow such as SelfKey, IdentityMind, OpenFinance, Pegasus Fintech, Vertalo, Blocktrade, Prime Trust, Monarch Wallet, Netcoins, Genesis Block, Tokenizo, Athena Blockchain, Blocktrade, Prime Trust, Glyph, Cassels Brock, Aird & Berlis, and Messner Reeves LLP to provide the highest level of customer experience to users. 

Polymath features a token marketplace, a token studio for token creation and issuance, and token compatibility with the Ethereum network. On the Polymath Token Studio, token issuers can customize and launch their own security token offering (STOs), and still be able to select a Know Your Customer (KYC) and anti-money laundering (AML) service provider of their choice.

Examples of companies that have issued security tokens via Polymath include Corl, 7PASS, MintHealth, IPwe, and BlockEstate. 

#6. Harbor 

Founded in 2017, Harbor is a tokenization platform based in San Francisco. The company is led by individuals with a ton of experience, including former PayPal COO David Sacks, who is also the founder of Yammer, Craft Ventures, and Zenefits. The company managed to raise over $38 million from VC firms Founders Fund, Pantera Capital, Fifth Wall, Kindred Spirits, Andreessen Horowitz, Valor Capital Ventures, Future Perfect, and more. 

Through integration with BitGo, Harbor facilitates investor onboarding through KYC/AML procedures, accreditation, tax forms, e.t.c. 

Harbor supports an ERC-20 token known as R-Token that ensures supported ERC-20 wallets or exchanges are compatible with the necessary requirements for trading. It also uses an Oracle feature to act as the go-between for peer-to-peer token transfers and exchanges.

#7. Swarm 

Swarm is an ”open infrastructure for digital securities.” The company has partnered with several companies such as OpenFinance, Maker, Tron, Security Token Network, Jaxx, Mercury, Copper, MVP Workshop, Monarch, Standard Consensus, Glyph, Blockpass and STOCheck to avail the best services to clients and other platform users. 

It uses the SEC20 protocol that facilitates the creation and issuance of security tokens. Swarm allows users to tokenize all manner of assets, including real estate, renewable energy, agriculture, tech companies, cryptocurrency hedge funds, and so on. Swarm makes it easy to manage, transfer, and trade tokens. 

Other supported functions include STO fundraising and post-issuance and support such as token redemption and the issuing of dividends to clients. Swarm features the Market Access Protocol (MAP), a protocol that supports token interoperability between various players, including issuers, investors, exchanges, and qualification providers. 

Swarm allows users to purchase security tokens with either of several supported cryptocurrencies, which include a native token called Swarm (SWM), BTC, ETH, BNB, DAI, MKR, XLM, XRP, TRX, ADA and DASH. 

#8. Tokeny

Tokeny is a Europe-based tokenization platform founded in 2017. The company serves over 180 jurisdictions and has had $27 billion worth of assets tokenized so far. 

Tokeny allows for the issuance, management, and transfer of tokens. Properties such as individual, company and government assets, business equity, investment funds, and even goods and services can all be tokenized on the platform. 

The platform features a cloud-based T-REX (Tokens for Regulated Exchanges) that allows investors to manage securitized assets such as by paying and receiving dividends and carrying out audits. T-REX also offers interoperability with crypto wallets, exchanges, and identity providers. It also allows clients to issue and transfer assets globally. 

Some of Tokeny’s past clients include Black Manta, Property Token, Lition, Bakari, Mash, Vivo Play, Key Pasco, Neovate, Block Port, and b40Lux. 

Categories
Forex Fundamental Analysis

Exploring The ‘GDP From Utilities’ Forex Fundamental Indicator & Its Impact On The Market

Introduction

Introduction

Introduction

The Utility sector is the safe-haven sector for investors during economic slowdowns. The volatility of the Utility Sector is very low compared to any other market, be it currency, stocks, or any other financial market. Understanding the nuances involved with the GDP from the Utility Sector can help us identify money flow patterns during slowdowns and growth periods.

What is GDP from Utilities?

Utility Sector

As per the Bureau of Economic Analysis Department of Commerce: The Utility Sector comprises of industries that provide the following utilities: electricity, natural gas, water, and steam supply, sewage removal. Hence, the Utilities Sector deals with the most necessary commodities for the functioning of modern-day society. It deals with the most indispensable resources.

Functioning of societies without electric power is impossible.

One research even shows if electricity was not available for two weeks, 50% of survey members stated they could not survive. Water, Sewage systems, natural gas are all pillars for conducting our social life. Hence, these basic amenities produce profits; they are part of public service and hence are heavily regulated.

Within the sector itself, specific activities associated with utilities also vary. Electric power includes generation, transmission, and distribution. So some companies may only focus themselves on the sub-categories within the Utility sector.

Water supply includes treatment and distribution. Steam supply includes provision and distribution. Sewage removal consists of the collection, treatment, waste disposal through sewer systems, and sewage treatment facilities.

How can the GDP from Utility numbers be used for analysis?

Utilities generally give its investors stable and consistent dividends. It is relatively less volatile compared to other equity markets. During times of recession, the non-essential goods and services sectors take the worst hit while Utility Sector the least. As utilities are a necessity, their performance is consistent in the long run.

Typically investors buy utilities as long-term holdings for their dividend income and portfolio stability. During recessions, where the Central Authorities cut interest rates to stimulate the economy, investors flock to Utility stocks as a more secure alternative. When economic growth is restored, investors may find better alternatives than utility sectors.

Since this sector is heavily regulated, raising rates to increase revenue for the companies. The infrastructure required to run utility services are expensive and require high capital to maintain and upgrade over time. Hence, Utility providing companies have debts in their balance sheets, taken for maintenance and continuity. Hence, these industries are susceptible to interest rate fluctuations, as interests on their debts vary accordingly.

Consumers also have an impact on the Utility sector. Since many states let consumers choose their utility provider, the competition forces companies to keep competitive prices, that overall decreases their profits. Long-term power purchase agreements or water supply contracts can also incur dent on profits for companies when utility generation costs increase over time.

It is also crucial to know the growth of the Utility Sector is also a function of population and industrialization. Developing economies observe a rise in new factories, and industries would require higher utility services. The contrast in the sector’s economic size would be apparent while contrasting underdeveloped and developed economies.

Capitalization of utility services can lead to monopoly or resource control to private industries to their advantage for profits. Overall, we also must consider that utility services are to be accessible to all classes of people. Hence, regulation by the government is essential to keep it affordable for the lower sections of society.

The regulation also ensures that sustainable development is kept as a priority over profits. As the generation of electricity from fossil fuels like coal, and water supply from underground water, both of which are exhaustible. Therefore, revenue-wise, Utility Sector is not a significant contributor. In the United States, it contributed about 1.6% of value to GDP for the year 2018 and 2019.

Impact on Currency

The GDP from Utilities is a low impact indicator compared to the Broader measures like GDP Growth Rates and Real GDP. GDP from Utilities does not paint the full picture of the economy but tells us the direct contribution of the Utility Sector to the overall GDP. It is useful for long-term investors as a safe-haven during economic slowdowns.

Still, for the International Currency Markets, it does not serve as a useful indicator. It is a proportional and lagging indicator. Higher GDP from Utilities will impact the economy and its currency positively. Contrarily, low GDP from utilities will have a negative impact.

Sources of GDP from Utilities

GDP from Utilities Announcement – Impact due to news release

The Utility sector is an important part of any country as it consists of essential products that are consumed by people daily. Water, gas, electricity are some of the products of the Utility sector. Naturally, they play a vital role in economic and social development. Governments are responsible for ensuring access to service under an accountable regulatory framework.

Utilities are one of the key stakeholders in the economic development team. This industry is also important because all business requires these essential services to operate. Therefore, its contribution to the GDP is increasing year by year. When it comes to fundamental analysis of the currency, investors consider the nominal GDP as an indicator of the economy’s growth.

In today’s example, we will examine the impact of GDP on the value of a currency and see the change in volatility because of its news release. The below image shows the first-quarter GDP data of Hong Kong, where we see a big drop in the value from the previous quarter. Let us find out the reaction of the market to this data.

USD/HKD | Before the announcement

Let us first examine the USD/HKD currency pair to analyze the impact of GDP on the Hong Kong dollar. In the above price chart, it is clear that the market is moving within a ‘range’ where the overall trend is up. Before the news announcement, the price is at the bottom of the ‘range,’ which means there is a high chance of buyers getting active from this point. Aggressive traders can ‘long’ positions as the market is expecting weak GDP data for the first quarter.

USD/HKD | After the announcement

After the news announcement, the price rises by a few pips, and the market moves higher by little. As the GDP data was very bad, the rose higher, which resulted in the weakening of the currency. But this did not bring the kind of weakness and bearishness expected, as the GDP had dropped by more than 5%. This means the new release had the least impact on the currency pair.

EUR/HKD | Before the announcement

EUR/HKD | After the announcement

The above images represent the EUR/HKD currency pair, where we see that before the news announcement, the price has broken out of the small ‘range’ that was formed few hours before the news release. Until the breakout is confirmed, one should not consider buying the currency pair as the news announcement could lower the price and make this a false breakout.

After the news announcement, the market moves lower and volatility increases to the downside, resulting in the Hong Kong dollar’s strengthening. We witness an opposite reaction from the market in this currency pair, where the currency gains strength after the news release. This means the market has already priced in weak GDP data and reacted positively to the GDP data. We recommend using technical indicators to confirm the breakout and then take ‘long’ positions.

AUD/HKD | Before the announcement

AUD/HKD | After the announcement

The above images are that of AUD/HKD dollar, where we see that before the market is moving within a ‘range’ before the news announcement where the price is currently in the middle of the ‘range.’ Another thing we notice is that the overall trend of the market is up, which means we need to be cautious before taking a ‘sell’ trade in the currency pair.

After the news announcement, we see that the price marginally moves higher and closes with a slight amount of bullishness. This means the GDP did not impact the currency pair adversely and minimal effect on the pair. One could take a ‘short’ trade after price moves below the moving average.

Categories
Cryptocurrencies

Most Important Cryptocurrencies Apart From Bitcoin Part 2

1. Tether (USDT)

1. Tether (USDT)

1. Tether (USDT)

Tether was one of the pioneers of a new class of cryptocurrency known as stablecoins. Stablecoins are cryptocurrencies that avoid the legendary volatility of cryptocurrencies by being pegged to real-life assets. The cryptocurrency industry, including Bitcoin itself, is known for unpredictable price swings that can wash out gains in a matter of hours. This volatility is also the reason why cryptocurrencies have been slow at real-life adoption since users fear making losses. Stablecoins such as Tether exists to provide cryptocurrency users with both security and speed of cryptocurrencies with the stability of Fiat currency. 

Launched in 2014 by Tether Holdings, the project describes itself as a “blockchain-enabled platform designed to facilitate the use of Fiat currencies in a digital manner.” What this means is that Tether users also get to sidestep the complexity sometimes associated with crypto. As of July 18, 2020, Tether’s per-token value is $0. 997473, with a market cap of 9.2 billion. It currently occupies the third spot right after Bitcoin and Ethereum.

2. Bitcoin Cash (BCH)

Created in August 2017, Bitcoin Cash is one of the most recognizable altcoins. This is because it was born of a contentious hard fork of the Bitcoin blockchain. At that time, the Bitcoin community was split into two. One faction was against the idea of splitting the chain, while the other argued that for Bitcoin to reach its potential, it had to be able to process more transactions at each time.

Be that as it may, it’s one of the most successful forks of the dominant currency. The source of that success is probably the currency’s compelling offering of a much faster Bitcoin network. This it does by increasing the size of blocks, and as a result, a number of transactions each can hold. 

Satoshi Nakamoto intended Bitcoin to be a peer-to-peer electronic currency that could be used for day-to-day purchases. However, as the coin gained mainstream traction, so did transactions increase on the network, and the network slowed down due to the limited 1MB block size. The block limitation meant that one block could only handle a limited number of transactions, causing transactions to queue up and clog the network. 

Bitcoin Cash’s solution was to increase the block size to 8 MB, thus permitting more transactions to be held in one block. While one block on Bitcoin can hold between 1000 and 1500 transactions, one block on Bitcoin Cash can handle tens of thousands. As of July 2018, BCH’s price was $225.36. It occupied the 5th position in the market with a market cap of 4.2 billion.

3. Libra (LIBRA)

The decision to add Libra to this list can certainly raise eyebrows but bear with us. Important here can mean the scale and magnitude of a cryptocurrency’s potential disruption or simply the power of the outfit behind it. And going by those two yardsticks, Libra is, to put it mildly, important. 

The currency is set to be launched by Facebook. When Facebook broke out the news last year, it said the currency would launch in 2020, but at the time writing, we’re yet to see that happen. 

As would be expected, the news was met with mixed reactions. Some people were excited about the potential of a powerful entity such as Facebook, helping to push the concept of crypto into the mainstream. Others, especially regulators, met the news with indignation. The reason for this was twofold. 

One was Facebook’s unflattering history with how it has dealt with users’ data and privacy. Regulators submitted that Facebook would sell user data to advertisers, and then we’d have a repeat of the Cambridge Analytica debacle. The other reason was due to Facebook’s massive worldwide reach – we’re talking about billions of users – which regulators argued would undermine the global financial system. 

The reason for the cryptocurrency’s launch delay is probably its going back to the drawing board to create a cryptocurrency that can appease regulators. In July last year, David Marcus, the project’s head, in remarks prepared for US lawmakers said that Libra would be “the broadest, most expensive, and most careful pre-launch oversight by regulators and central banks in fintech’s history,” and that Facebook wouldn’t launch the crypto until it had “fully addressed regulatory concerns.” Upon launch, the project will be overseen by Switzerland-based Facebook’s subsidiary, Calibra.

4. Monero (XMR)

Monero is one of the cryptocurrencies that have been created to make up for Bitcoin’s less than satisfactory privacy approach. While the Bitcoin blockchain does not reveal a user’s identity, all its transaction history is out there for the whole world to see. With enough resources and dedication, an entity can trace down the real-life owner of a transaction. 

Created as a fork of Bytecoin in April of 2014, Monero is a privacy-oriented cryptocurrency whose development was completely donation-dependent and driven solely by the community. It utilizes “ring signatures” to anonymize transactions. A ring signature is a cryptographic signature in which several signatures are merged together, with all of them appearing valid, while in actuality, only one is. This makes it impossible to single out the real signature.

This level of privacy for Monero has caused it to become the go-to currency for clandestine dealings and criminal activities. No matter the reputation it has acquired, though, Monero has enormously contributed to the crypto space in its offerings. So, let’s see how Monero is doing in the market. At the time of writing, Monero has a per-token value of $68.63, with a market rank of #15 and a market cap of $2.1 billion.

5. Cardano (ADA)

Created by Charles Hoskinson and launched in September 2017, Cardano is a cryptocurrency platform on which people can send and receive value in a decentralized, peer-to-peer, and safe manner. Through this, Cardano wants to make the world “work better for all.” The cryptocurrency has been nicknamed the Ethereum killer, and given its rapid rise to the coveted top 10, it wouldn’t be a surprise if this prophecy came true in a few years.

Cardano has taken a unique and intriguing approach to its development process. Apart from being originally peer-reviewed by blockchain experts, academics, and researchers from various universities, protocol updates have to undergo the same round of evaluation by experts. Cardano’s rationale for this rigorous process is to ensure that the platform meets the highest standards for security, scalability, and efficiency, ultimately granting users a quality experience. 

Cardano is one among many third-generation cryptocurrencies, which is a term used to describe cryptocurrencies that seek to improve upon the deficiencies of the first generation (Bitcoin) and second-generation blockchains (Ethereum). As of July 19, 2020, Cardano has a per-token value of $.0123970 and is the sixth-largest cryptocurrency with a market cap of 3.2 billion.

6. EOS (EOS)

EOS is one interesting cryptocurrency in part because no one knows what ‘EOS’ stands for and because it rose to the high sanctums of cryptocurrency riding on a wildly successful ICO that raised $4 billion. The crypto was created by Dan Larimer, who is also the founder and co-founder of successful crypto projects BitShares and Steemit, respectively.

Just like Ethereum, EOS seeks to provide a platform for developers to create decentralized applications. Unlike Bitcoin and Ethereum that use the power-hungry proof-of-stake consensus mechanism, EOS uses a delegated proof-of-stake mechanism that is not only energy-efficient but also allows it to achieve an impressive TPS (transactions per second) capability of 1000+. As of July 19, 2019, EOS traded at $2.50 had a market cap of $2.3 billion that positioned it at #12 in the market. 

Categories
Forex Basic Strategies

Everything About The ‘RSI Rollercoaster’ Forex Trading Strategy

Introduction Sometimes it is best to choose the simplest path of trading. The Relative Strength Index (RSI), invented by Welles Wilder, is one of the oldest and most popular technical analysis tools. If best traders in the world were asked to rank the technical indicators, RSI would certainly be accorded in the top five. It […]

Introduction Sometimes it is best to choose the simplest path of trading. The Relative Strength Index (RSI), invented by Welles Wilder, is one of the oldest and most popular technical analysis tools. If best traders in the world were asked to rank the technical indicators, RSI would certainly be accorded in the top five. It […]

Introduction

Sometimes it is best to choose the simplest path of trading. The Relative Strength Index (RSI), invented by Welles Wilder, is one of the oldest and most popular technical analysis tools. If best traders in the world were asked to rank the technical indicators, RSI would certainly be accorded in the top five. It has the unique ability to measure turns in price by measuring the momentum of the turn, which is impossible by any other technical tool in technical analysis.

The standard RSI setting of 70 and 30 serves as a clear sign of overbought and oversold, respectively. The RSI rollercoaster is a strategy that we have developed to take advantage of these turns in the market. The purpose of RSI rollercoaster is to make money from range-bound currency pairs.

Time Frame

This strategy is suitable for trading on the ‘daily’ time frame. It can also be used on the smaller time frames, but the success rate is not very encouraging.

Indicators

As the name suggests, we will be using the RSI indicator for the strategy. No other indicators will be used. Sime knowledge of price action will be helpful.

Currency Pairs

This strategy applies to all the currency pairs listed on the broker’s platform. If trading on the lower time frame, we need to look for highly liquid currency pairs.

Strategy Concept

The key to the RSI rollercoaster strategy versus the traditional RSI strategy is the way of trading the overbought and oversold levels. Here we look for a reversal candle, which provides a sign of exhaustion before taking the trade. This way, we prevent ourselves from picking the top or bottom of a ‘range’ by waiting for an indicator confirmation.

This strategy works best in a ‘ranging’ market where overbought and oversold signals are far more true indications of change in direction. Furthermore, from experience, we have observed that the setup is much more accurate on the ‘daily’ charts than on the smaller time frames such as the 4 hours or 1 hour.

The primary reason for this difference is that ‘daily’ charts include far more data points into their subset and, therefore, change in momentum tends to be more meaningful on longer time frames. Nevertheless, the disproportionate risk to reward ratio in this setup makes even the shorter time frame trades worth considering. We keep in mind that although the setup will fail more frequently on the shorter time frames, the losses will generally be smaller, keeping the overall risk manageable.

Trade Setup

In order to explain the strategy, we have considered an example of such a trade that was carried out on the USD/CAD pair. As the strategy produces a better result on the ‘daily’ time frame, we will be applying it to the ‘daily’ time frame chart. Let us see the steps to execute the strategy.

Step 1

The first step of the strategy is to open the ‘daily’ (preferable) time frame chart of the desired currency pair. Identify key levels of ‘support’ and ‘resistance.’ A ‘support’ or ‘resistance’ is only valid if the price has reacted off from this area at least twice. If the price has reacted only once, that means a ‘range’ has not yet been established.

The below image shows the clear formation of a ‘range’ where the price has reacted multiple times from the ‘ends.’

Step 2

In this step, we wait for the RSI indicator to cross above the 70 ‘mark ‘when the price is near ‘resistance’ or cross below the 30 marks when the price is near ‘support.’ During this time, the price action of the chart is not of much importance. Once the RSI shows a reading below 70 after crossing it, we will look for ‘sell’ opportunities depending on the price action. Similarly, when the RSI shows a reading above 30 after crossing below it, we will look for ‘buy’ opportunities depending on the price action.

In this case, we can see that the price breaks down below ‘support,’ which is an indication of ‘sell’ as per the theory of support and resistance. But as per our strategy, we will not be looking at the price action in this step, and we will focus only on the RSI indicator.

A few days later, we see that the RSI goes below the 30 ‘mark’ for a moment and starts moving higher. This is our first indication of going ‘long’ in the market.

Step 3

We ‘enter’ for a ‘sell’ when the price moves back into the ‘range’ after the indication from RSI. Similarly, we enter for a ‘buy’ when the price moves back into the ‘range’ after the indication from RSI. This price action indicates a false breakout or breakdown, which is identified rightly with the help of an indicator.

In our case, we are entering ‘long’ in the currency pair after we get a confirmation in the form of a bullish candle, as we can see in the below image.

Step 4

In this step, we determine the ‘stop-loss’ and ‘take-profit‘ levels for the strategy. When executing a ‘long’ trade, the stop-loss will be placed just above the ‘high’ where the price created a false breakout. And when executing a ‘sell’ trade, the ‘stop-loss’ will be placed just below the ‘low’ from where the price created a false breakdown. The ‘take-profit’ depends on the major trend of the market. If we are trading against the trend, it should be kept at 1:1 risk to reward or even a little lesser than that. If the ‘trade’ is taking place with the trend, it can be kept at 1:2 risk to reward.

Strategy Roundup

The RSI rollercoaster strategy is designed to squeeze as much profit as possible out of the turns at ‘support’ and ‘resistance.’ Instead of immediately entering into a position when the market moves into an overbought or oversold zone, the RSI, along with a little bit of price action, keeps us away from the market until we get a confirmation sign of the exhaustion. The RSI rollercoaster is almost always in the market, as long as we see wild moves on either side of the ‘range’ to stop-out traders.

Categories
Cryptocurrencies

BC Vault Hardware Wallet In-Depth Review: Is It The Most Secure Hardware Wallet Yet?

Designed by Real Security, a Slovenia-based firm, BC Vault (short for Bitcoin Vault) is a relatively new hardware wallet that provides you with a safe way to store your cryptocurrencies. It is one of the most unique and most innovative hardware wallets we have come across. It seeks to replace some of the most common aspects of a hardware wallet with more secure and highly innovative features.

Designed by Real Security, a Slovenia-based firm, BC Vault (short for Bitcoin Vault) is a relatively new hardware wallet that provides you with a safe way to store your cryptocurrencies. It is one of the most unique and most innovative hardware wallets we have come across. It seeks to replace some of the most common aspects of a hardware wallet with more secure and highly innovative features.

Designed by Real Security, a Slovenia-based firm, BC Vault (short for Bitcoin Vault) is a relatively new hardware wallet that provides you with a safe way to store your cryptocurrencies. It is one of the most unique and most innovative hardware wallets we have come across. It seeks to replace some of the most common aspects of a hardware wallet with more secure and highly innovative features.

For instance, instead of recovery seeds, the wallet presents its users with 4-layer security passwords. Similarly, instead of relying on the hierarchical deterministic protocol used in generating new secure wallet addresses, BC Vault adopts the non-deterministic security protocol.

In this BC Vault review, we will be exploring the different operational and security features that help BC Vault stand out of the crowd. We will look at its key features, security features, ease of use, customer support, compare it to other hardware/software wallets and everything else you need to know about the Bitcoin wallet.

We start with key operational features:

BC Vault key features

Large D-pad and display:

The hardware is specially designed with a 2.42-inch OLED that features a 128×64-pixel white-on-black display. The screen is large enough to fit all details of a crypto transaction, including the recipient’s addresses, fees, crypto amount, and the wallet name.

Supports 2000+ wallets:

BC Vault is the truest form of a multi-signature hardware wallet as it allows you to create 2000+ individual wallets. Additionally, the wallet makes it possible for you to create highly unique multi-character passwords for each of these wallets, making it possible to share the device between two or more persons.

Compatible with multiple operating systems:

Like most other hardware wallets, BC Vault has to be paired with a desktop app or browser extension. But unlike most other wallets that will only support a limited number of browsers or operating systems. BC Vault is highly versatile.

Multi-currency support:

According to the BC Vault website, the company currently supports up to 30 cryptocurrencies and tokens. These include all the popular cryptos like Bitcoin, Ethreum, Litecoin, Dogecoin, Ripple, Bitcoin Cash, Litecoin, Bitcoin Gold, Ethreum Classic, all ERC-20 tokens. And with every successive upgrade, the wallet developers promise to add even more coins and tokens.

Native ERC20 token and multi-crypto support

The hardware wallet enables the use of cryptocurrencies in multiple wallets all in a single app. It supports native storage of ERC-20 tokens and does not rely on websites or third-party applications. Users can comfortably manage BCH, LTC, BNB, DASH, and many more supported currencies.

BC Vault security features

Multiple passwords:

Unlike most other crypto hardware wallets that only have one password unlocking the application, device, and individual wallets, BC Vault is fortified with four passwords for both the wallet device and application. The Global Password is used to unlock the BC Vault application and is entered on the application. The Global PIN is, on the other hand, used to unlock the wallet device. The two give you access to both the app and the wallet device.

There’s also the Wallet password that’s used to unlock the wallet on the application. The wallet PIN, on the other hand, is used to unlock a wallet and initiate a transaction and is entered on the wallet device.

Note that the wallet password and pin can be different for each wallet, especially if it is a shared wallet. Plus, it isn’t mandatory that you set the wallet password and PIN if it isn’t shared (not recommended).

Two-factor authentication:

The BC Vault user has the option of activating the two-factor authentication that comes in handy when unlocking the wallet and accessing the wallet content. You can use any of the common two-factor authentication apps /tools like Google Authenticator.

Independently generated keys:

BC Vault uses a Random Number Generator (RNG) to create more than 2000 independent and non-deterministic crypto wallets. What’s more, each key is generated independently, which also means that keys are not mathematically linked.

Secure storage:

All its private keys are stored in specialized storage known as FRAM. They are 1000x faster and consume 250x less power. Apart from that, the hardware is designed with a security chip to prevent the exposure of users’ wallets to hackers or malicious malware.

High anonymity:

The fact that wallets on the hardware device are generated independently enhances its anonymity. Additionally, BC Vault does not have a serial number to ensure complete anonymity of its users’ wallets.

Secure encryption:

Also known as the bounty wallet, this hardware integrates quite a strong encryption. Private keys correspond to a specific public address in each BC Vault.

Industry-standard encryption:

In addition to the passwords, every aspect of the BC Vault hardware wallet is highly encrypted, especially the private keys, your personal data, and the wallet addresses.

SD Card and paper QR backup:

While most crypto hardware wallets available today have recovery seed that one can use to recover private keys if their device is compromised, BC Vault presents you with a 1GB SD Card. It is highly encrypted and provides you with more than enough room for backing up your private keys.

Guaranteed security:

BC Vault touts its wallet as being the most secure cryptocurrency hardware wallet. As a guarantee, the wallet developers have placed a 1BTC price for anyone who will be able to crack the wallet’s encryption.

Tamper proof:

The compact design of the wallet’s hardware ensures that the user will always know when their device has been opened up. Additionally, the software/firmware technology applied in proprietary and not open-sourced, which means a hacker would have to undertake the painstakingly long and tedious process of reverse-engineering the system if they were to carry out a successful hack.

How to set up and activate the BC Vault wallet

Step 1: Plug in the device to your laptop or desktop

For the device to be operational, you have to plug it to a desktop or computer. It has a long connectional cable, which means that you can use it while still connected to the laptop.

Step 2: Shake the device to generate a random number

To generate a wallet address, you are required to shake the device for about two minutes. This is a security safeguard and the non-deterministic form of generating wallet addresses.

Step 3: Download and install the app

After generating the wallet, open the BC Vault official website and download the BC Vault app and link it to your device and the newly-created address. The app is compatible with Windows, macOS, and Linux Operating systems.

Step 4: Set a Global password or PIN

After going through all the above steps, you will be required to set a unique 8-character global password or PIN before you can be allowed to use your BC Vault. It is a fundamental security feature that will be used every time you need to access your BC Vault or application.

Step 5: Create a wallet and transfer funds

Now that you have set your PIN, you need to create a wallet and transfer some crypto funds. You can deposit into your new wallet from another wallet, from an exchange, or by converting your fiat currency via such third party fiat-to-crypto conversion sites like Simplex or Changelly.

Step 6: Use your BC Vault

Now your BC Vault crypto hardware wallet is all set and ready for use.

How to add/receive into your BC vault hardware wallet

Step 1: Start by logging into your wallet device and application, and clicking on the ‘Add New Currency’ tab.

 Step 2: Click on the wallet address for the crypto you wish to receive. If it is a new wallet, you will first need to create a new wallet address for the cryptos by simply clicking on ‘New Wallet’ and selecting the crypto you wish to add from the drop-down menu.

Step 3: Copy the wallet address and send it to the party from whom you wish to receive the cryptos or have them scan your address QR Code.

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

Step 5: Back up your wallet using the SD Card as soon as you add these cryptos into the wallet. Keep in mind that the wallet does not have a cloud backup, and you, therefore, need to backup your wallet on to the SD card every time you load new crypto.

How to Send Funds with Your BC Hardware Wallet

Step 1: Start by launching the BC Vault app and connecting the hardware device

Step 2: Tap on the ‘Send’ icon and click on the cryptocurrency you wish to send.

Step 3: In the pop-up window that appears, key in the recipient’s wallet address and the amount of crypto you wish to send

Step 4: Confirm that the crypto amounts and the wallet address are safe and hit send.

BC Vault wallet costs and fees:

There are currently three models of the BC Vault hardware wallet. The Legendary BC Vault One costs $155, the limited edition of both BC Vault Quicksilver, and BC Vault Gunmetal vaults cost $260. They all have similar specifications safe for Quicksilver and Gunmetal wallets whose casings are made from brushed aluminum and aircraft-grade aluminum, respectively.

Storing your digital assets in the sturdy hardware wallet is free. But you will have to part with variable transaction fees every time you send cryptocurrencies to another wallet or exchange. The amounts charged will depend on the transaction volume and the type of crypto and will go to blockchain miners.

BC Vault wallet customer support:

BC Vault has one of the most elaborate FAQ pages. This section of their website addresses all of the most common challenges by the hardware wallet users. It features both quick-start guides and video tutorials on how to interact with the hardware device. For more personalized queries, however, you may contact the BC Vault hardware wallet developers via email: [email protected]  or on their different social media pages.

What are the Pros and Cons of BC Vault Hardware Wallet

Pros:

  • It’s a true multi-signature wallet that supports 2000+ individual wallets with unique passwords.
  • The wallet integrates some of the most innovative security features that include four sets of passwords and an SD card backup.
  • BC Vault wallet has a straightforward activation process and elaborate FAQ Section that make it beginner-friendly
  • All aspects of the wallet are highly encrypted to guarantee maximum security.

Cons:

  • One may consider BC Vault’s acquisition cost of $155-$260 exorbitant.
  • One may question the transparency and security of the wallet, given that their technology isn’t open sourced.
  • Doesn’t have a mobile app and doesn’t support Bluetooth/wifi connectivity

How Does Bitcoin Hardware Wallet Compare with Other Wallets?

Unlike Ledger Nano S or Trezor, BC Vault utilizes an encrypted backup and a global password or PIN instead of an unencrypted BIP39/44 seed phrase in its security. Users can also back up their funds externally on a wallet data on an SD.

Further, they can also use an encrypted wallet data to print out a series of QR codes. The majority of their competitors use hierarchical deterministic wallets, which also means that addresses used can be traced back to the seed.

Verdict: Is Bitcoin Vault Worth Your Money? 

Based on the security incorporated in these devices, there is no doubt Bitcoin Vault is worth every penny. The device is specially designed to provide users with a sophisticated method to store funds and other digital assets over a long period. Some of the factors that make BC Vault stand out are its adoption of highly unconventional operational and security features.

It, for instance, is the first hardware wallet to forego the recovery seed in favor of an SD card backup. There also aren’t many hardware or software wallets that have as much as four passwords. And while most multisig wallets support multiple wallets, only a few support individualized passwords for each wallet.

Categories
Crypto Videos

About Time! Binance Sending Out Its Debit Cards!

  Binance Sending Out Its Debit Cards – Crypto Cards Taking Over After months of planning and testing, the crypto giant Binance has begun delivering its crypto debit cards to customers. Binance CEO Changpeng Zhao, better known as CZ, posted a tweet on July 25 as a response to a community member that has expressed interest […]

  Binance Sending Out Its Debit Cards – Crypto Cards Taking Over After months of planning and testing, the crypto giant Binance has begun delivering its crypto debit cards to customers. Binance CEO Changpeng Zhao, better known as CZ, posted a tweet on July 25 as a response to a community member that has expressed interest […]

 

Binance Sending Out Its Debit Cards – Crypto Cards Taking Over


After months of planning and testing, the crypto giant Binance has begun delivering its crypto debit cards to customers.
Binance CEO Changpeng Zhao, better known as CZ, posted a tweet on July 25 as a response to a community member that has expressed interest in the product. CZ said that they started shipping debit cards in limited quantities.
As the previous reporting shows that the plan was to do an August launch for the card in the European region, it can be inferred that CZ meant that Binance started shipping to European customers at the time being.


Binance debit card timeline

One of the largest platforms in the crypto industry, Binance, unveiled its plans for a crypto debit card in April 2020, which would go by the name Binance Card. The company then proceeded to acquire crypto debit card company Swipe, using the acquisition to further its plans for the Binance Card project.


CZ and Binance tested out the payment option in July, which the CEO revealed in a July 10 Twitter post. This was done as a part of the product’s initial testing.
Four days later, Binance announced its plans for an August card launch in certain regions of Europe, guaranteeing cards’ compatibility with four digital assets. Bitcoin and Binance’s BNB cryptocurrency were among the four assets listed.

CZ’s recent tweet shows that the development for Binance’s card is going along quite well, as well as that the company is respecting the timeline that it has given. Binance itself has also posted a number of headlines in 2020 amid all the setbacks that happened due to the COVID-19 situation.

Categories
Crypto Videos

Don’t Get Your Hopes Up! New Ruling That Negatively effects BTC…

https://youtu.be/C-L04mkAA9E

https://youtu.be/C-L04mkAA9E

 

 

Don’t Get Your Hopes Up – New Ruling That Classifies BTC as ‘Money’ Isn’t Anything Special

A recent court case in Washington D.C. saw a man being prosecuted on multiple counts for operating a so-called Bitcoin tumbler — a popular method of hiding Bitcoin transactions.
The Washington court charged the defendant on three counts in December 2019, with those counts including operating an unlicensed money transmitting business, as revealed in a July 24 court document.

The document noted that “After examination of the relevant statutes, case law, as well as other sources, the Court concludes that BTC is money under the MTA and that Helix, as the indictment described, was an ‘unlicensed money transmitting business’ under the applicable federal law.”

Even though this particular instance appears to be a ruling in favor of Bitcoin as it classifies it as money, the current law requires a money transmission when dealing with Bitcoin, even though the cryptocurrency is not technically under any monetary classification.
The defendant operating a Bitcoin mixing service
Larry Dean Harmon, acting as the defendant in the case, allegedly ran a Bitcoin mixer business named Helix. The project was run on the dark web. Mixers such as Helix muddy the data around Bitcoin transactions, therefore making transaction traceability difficult.
Harmon saw roughly 354,468 BTC flow through his business from the year 2014 to 2017, the court document stated.

Washington D.C. court accused Harmon of three separate illegal acts: 1. Conspiracy to launder monetary instruments
2. Operating unlicensed money transmitting business, and
3. Engaging in money transmission business without a proper license.
BTC is “Money”? Not a big deal!

As mentioned previously, the ruling appears in favor of Bitcoin as it classifies it as money. However, the court’s “move” was done in order to lay out the need for cryptocurrency exchanges to operate with money transmitter licenses. Therefore, while the first thought on Bitcoin being considered as money is great, the underlying move the court made can actually be considered a net negative thing for Bitcoin and its centralized exchanges.

Categories
Crypto Daily Topic Cryptocurrencies

A Guide to DeFi Investing

DeFi. The newest buzzword in blockchain and crypto. What is it, and why should you pay attention? You should because it’s an exciting new way to interact with and make money out of crypto if you play your cards right.  The crypto world has been taken by DeFi because it represents a bold new departure […]

DeFi. The newest buzzword in blockchain and crypto. What is it, and why should you pay attention? You should because it’s an exciting new way to interact with and make money out of crypto if you play your cards right.  The crypto world has been taken by DeFi because it represents a bold new departure […]

DeFi. The newest buzzword in blockchain and crypto. What is it, and why should you pay attention? You should because it’s an exciting new way to interact with and make money out of crypto if you play your cards right. 

The crypto world has been taken by DeFi because it represents a bold new departure from the world of centralized finance. It also has perks, like instantaneous transactions and anonymity. Bain Capital Ventures partner Salil Deshpande believes DeFi has caught on fire because people have in them “a libertarian streak.” 

But what does DeFi investing entail and what should you know before you join the bandwagon? 

What Does it Mean to Invest in DeFi?

Still an entirely new field, many people may be at a loss at what it actually means to invest in DeFi. You probably hear terms like ‘staking’ and ‘decentralized lending’ being thrown around, or wonder what type cryptocurrencies make the rounds in the world of DeFi. If that’s you, we’ve got you covered. Below, we’ll cover the basics of investing in DeFi and then examine the do’s and don’t’s of the same. Remember DeFi is based on crypto, and so the inherent risks haven’t gone anywhere. 

DeFi Investment Opportunities

Now, investment in DeFi isn’t a lot different from traditional investment, but a few unique aspects make it stand out. 

For instance, traditional lending involves the lender giving money to the borrower – with them (the borrower) making the promise to return the money with interest.  

This is how decentralized lending works as well, except this time, blockchain-based smart contracts lock in collateral from the borrower and automatically delivers interest to the lender periodically according to the terms of the contract. 

Then there’s staking. In traditional finance, individuals usually deposit money to institutions such as banks and credit unions and these institutions use this money to maintain liquidity and sufficient cash reserves. In DeFi, this process of buying and depositing digital assets into a platform’s account is known as staking. Such platforms need the funds to lend out to other users (borrowers), and to help maintain and secure the network.

The Do’s of Depositing in DeFi

DeFi Investing can be incredibly lucrative, but you can also potentially lose everything especially if you go in blindly. Here’s what you should definitely do before putting your money up.

#1. Do Your Own Research (DYOR)

The decentralized finance world is rife with scams and frauds. Scammers usually take advantage of the novelty of the tech to rip off unsuspecting investors. But that doesn’t mean there’s no way you can identify a scam. 

The quickest way to do so is to type the name of the project on Google along with the word ‘scam.’ The reason for this? If the project is a scam, chances are other people have already pointed that out. Whether it’s on cryptocurrency forums, Reddit, Twitter, or even Quora, it’s most likely certain the thought has been floated. And often in crypto, if it walks like a duck…

Also, DeFi protocols are based on open-source code. That means anyone can check ‘under the hood’ and identify anything that’s off. If you’re a programmer who’s familiar with smart contracts, then you can definitely examine the assemblage of what’s underneath. 

#2. Look at Reviews 

This is another way to establish the credibility of a DeFi project, and it involves looking at what other people are saying. This starts by looking at audit reports. Any DeFi project worth its salt will invite industry auditors such as ChainSecurity, Quantstamp, Trail of Bits OpenZeppelin, e.t.c. to conduct a manual audit of the project. 

The next thing to check out is what everyone else is saying, including the developers themselves, on their website and other forums. Look at the project’s social media handles and see the comments on posts. And if a project is lacking a social media presence, that right there is a big flashing red sign. 

Other helpful places to look at websites that cover the world of DeFi: DeFi Prime, DeFi Pulse, and DeFi Market Cap. These websites can provide valuable insight into a project’s cred. The key here is to rely more on independent sources, rather than on info touted by the project’s team. 

#3. Check Etherscan

EtherScan is a blockchain explorer that allows you to explore Ethereum blockchain and ‘scan’ for transactions, prices, tokens, and pretty much all activity happening on Ethereum. Remember that just because a smart contract/token is verified by Etherscan doesn’t mean it has no vulnerabilities or is not a scam. It means that the contract is available for public evaluation and is not in danger of being dishonestly altered. In other words, the code that you see (and have examined) is the code that you get when using the smart contract. 

Besides, Etherscan has recently implemented Every Transaction Hash Protect (ETHProtect), a service through which users can report any suspicious or fraudulent activity on Ethereum. Through ETHProtect, it’s easier for users to recognize tainted incoming funds, and the system can usually trace such funds to the origin. Usually, tainted funds would originate from phishing, hacks, scams, exploits and suspicions, and fraudulent activities. 

Such reports will be analyzed by the in-built Taint Inference Analysis Engine, and if confirmed to be indeed fraudulent, the address page will receive a flashing ‘Red Shield’ icon that allows users to avoid the sources of such funds. 

If you start coming across tainted addresses when investigating a smart contract, then you know there’s a problem. As such, avoid going to the project’s website or interacting with their products. 

#4. Look out For Fakes 

The majority of DeFi tokens use Ethereum-based tokens to carry out their operations. However, an unsuspecting newcomer might not be able to check the difference between a legit token and a fake one. Scammers will usually create a project with a genuine-sounding name such as DeFi token or DeFi coin. A name like that would likely raise eyebrows in an experienced investor, since ‘DeFi’ is a general word, and it’s unlikely for any project to brand themselves as such. But what would a newcomer know? 

A few simple steps may be all it takes to establish whether it’s a legit thing or not. Search the project on GitHub and see whether there are any meaningful discussions surrounding the project. Also, where do the project’s links lead to? If it’s a dead link, then that should have you scurrying in the opposite direction. Another way to tell a token’s standing is to check the kind of exchanges it’s listed on. If a token is listed on a few nondescript exchanges, that’s a red alert. Also, fake tokens will usually be listed on decentralized exchanges because there’s no regulation going on there. Stay on the lookout for these kinds of things. 

The Don’t’s

Now that we have examined what you should definitely do, let’s take a look at what you shouldn’t. 

#1. Don’t Invest Money that You Can’t Afford to Lose

This is the number one commandment of crypto and DeFi investing. The ‘why’ is obvious: crypto markets are highly volatile. You can gain or lose massively within an hour. The hype and allure surrounding DeFi protocols can trick you into thinking it’s all rains of cash, rainbows, and unicorns. 

This isn’t to scare you off from investing in DeFi. DeFi can be a great way to multiply your portfolio and secure your financial future. But you need to proceed with caution, that’s all. 

#2. Don’t Be Careless

Decentralized finance is all about being your own bank. This has several implications. One of these? The security and safety of your funds are solely on you. And since you are in total control of your assets, you need to protect them every way you can. 

This starts with choosing the wallet carefully where to store your funds. Choose a reputable wallet. Reputable wallets are those with good reviews on crypto and social forums. Also, check what reputable review sites (even YouTube videos) have said about the wallet. 

It also helps to know the types of wallets. There are two main types of wallets: software and hardware wallets. Software wallets are exclusively based online. Due to this, they are highly susceptible to online vulnerabilities such as hacking, phishing, social engineering, and malware. Hardware wallets are offline-based and constitute what’s known as cold storage. Without question, hardware wallets are safer since they can’t be hacked. Some great options include KeepKey, Ledger Nano, and Trezor. 

Also, where you buy your wallet matters. Always buy your wallet directly from the manufacturer’s web page. Wallets listed on online stores such as Amazon could very likely be fake. 

Final Thoughts

So, there. Welcome to the exciting world of DeFi. Following these guidelines could make the difference between you profiting from the field, as it should be, and you falling for a scam. Always do your due diligence before you put your money somewhere. Good luck! 

Categories
Forex Course

143. Trading Breakouts Using Trend lines

Introduction In our previous course lessons, we saw how to trade breakouts in an effective manner. As we know, Breakout trading is one of the most common ways of trading the financial markets. Most of the other trading tools tend to fail in accurately identifying a trading signal, or they lag a lot in doing […]

Introduction In our previous course lessons, we saw how to trade breakouts in an effective manner. As we know, Breakout trading is one of the most common ways of trading the financial markets. Most of the other trading tools tend to fail in accurately identifying a trading signal, or they lag a lot in doing […]

Introduction

In our previous course lessons, we saw how to trade breakouts in an effective manner. As we know, Breakout trading is one of the most common ways of trading the financial markets. Most of the other trading tools tend to fail in accurately identifying a trading signal, or they lag a lot in doing so. But that’s not the case with breakout trading. If done accurately, it helps traders in making consistent cash from the market.

In this lesson, let’s learn how to trade breakouts using trendlines. Trendlines are one of the simplest tools you can use to trade the breakouts on both lower and higher timeframes.

Trendline and it’s working!

A trend line highlights the ongoing trend by connecting the swing lower highs in an uptrend and swing higher lows in a downtrend. Just like S&R levels, trendlines also signify the appropriate areas to enter the market. The only difference is that support and resistance levels are horizontal areas while trendlines are sloping. Now let’s get to the topic.

Trading Breakouts Using Trendlines

Upward Trendline

An upward trend line connects a swing high to swing low from the lowest point to the highest point in an ongoing trend.

Buy Trade 1

The price chart below represents a trendline Breakout on the daily chart.

 

By looking at the market, it is clear that the sellers had a hard time going down as the buyers continue to give a strong fight. After a couple of months, sellers gave up, and buyers took the show to break above the trend line. The hold above the trendline confirms the buying entry in this pair. After riding the uptrend for a bit, we understood that the buyers got weak. Hence we decided to close our positions at the most recent higher high.

Buy Trade 2

The image below represents a trendline breakout in the CAD/JPY forex pair.

The pair was in a strong uptrend, and during the pullback phase, when the price action broke above the trend line, it indicates that the buyers are ready to lead the market again. The hold above the trendline confirms our buy entry. The original trend was quite strong, so the stop below the trend line was good enough to ride a new trend.

Downward Trendline

Downward trend line connects a swing low to swing high from the highest point in a trend to the lowest point in a trend.

Sell Trade 1

The chart below represents a trendline breakout in the GBP/USD Forex pair.

As we can see, the buying trend was quite strong, and the price action closely followed the trendline. A breakout below the trendline is a clear indication for us to go short in this pair.

Sell Trade 2

The price chart below represents the breakout of a trend line in the GBP/USD Forex pair.

We can see the pullback on a weekly chart, and during the pullback, the price broke below the trendline. This shows that the sellers are desperate to take the price down. After our entry, the price went down and turned sideways. After a few weeks, it again goes down, and we choose to close our trade at the most recent lower low.

This attempt is to give you an understanding of how to trade trendline breakouts in most of the scenarios. In our upcoming lessons, let’s delve deeper into this concept. Cheers!

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Categories
Forex Fundamental Analysis

What Does ‘Exports by Category’ Data Indicate About A Nation’s Economy?

Introduction Export is an essential component of a country’s balance of trade. International trade is the heart of the FOREX market that constitutes the fundamental moves in currency pairs. The imbalance in various country’s balance of trade is offset by equal and opposite volatility in currencies. Hence, understanding the macroeconomic dynamics of trade relations, compositions, […]

Introduction Export is an essential component of a country’s balance of trade. International trade is the heart of the FOREX market that constitutes the fundamental moves in currency pairs. The imbalance in various country’s balance of trade is offset by equal and opposite volatility in currencies. Hence, understanding the macroeconomic dynamics of trade relations, compositions, […]

Introduction

Export is an essential component of a country’s balance of trade. International trade is the heart of the FOREX market that constitutes the fundamental moves in currency pairs. The imbalance in various country’s balance of trade is offset by equal and opposite volatility in currencies. Hence, understanding the macroeconomic dynamics of trade relations, compositions, and how they are tied to currency values can deepen our fundamental analysis.

What are Exports by Category?

Export: It is the sale of domestically produced goods or services to the foreign market. If goods manufactured within the nation are sold to customers outside the country’s borders, it is referred to as an export. On the other hand, imports are the purchase of foreign goods or services by a country. Generally, a country exports a particular commodity because it either efficiently manufactures or is more capable than the importing country.

A country like Canada, which has abundant oil reserves, can export to countries like China, which has a massive demand for its industrial economy. Similarly, China may export electronics to other countries like the United States, as they have a competitive edge in that domain. Exports bring domestic currency into the country in exchange for produced goods and services. Imports bring in goods and services into the country and send out the domestic currency. Hence, countries must maintain a “balance” in its international trade to keep currencies in an equilibrium.

How can the Exports by Category numbers be used for analysis?

If a country’s exports exceed its imports, it is said to have a trade surplus or a positive balance of trade. On the contrary, if a country’s imports exceed its exports, it is said to have a trade deficit or negative balance of trade. Imports signify consumption, and exports signify production. In a perfect world, the trade balance would be zero, meaning a country would produce equal to what it consumes. In reality, the balances are skewed and change from time to time.

When a country exports, it accumulates wealth. Many developing economies like China have increasingly depended on exports for their economic growth. By investing heavily in optimizing its industries and resources, many developing economies could export goods at a lower price to developed economies. A trade surplus (exports exceeding imports) is generally seen as beneficial to the economy. Prolonged periods of trade surplus, drains the international market of that country’s currency, thereby increasing its valuation against other currencies.

When a currency valuation appreciates imports become cheaper as more goods can be procured per unit of currency. In general, a trade surplus is seen as beneficial, but it may not always be the case. For instance, a country might increase its imports of construction materials to develop its cities and state infrastructure. During this time, it may have a trade deficit, but later once the work is done, its exports may improve beyond its previous highs and pay off for the years it maintained a deficit.

Countries export and import in millions and billions of dollars. When a country exports goods, it does so in large quantities, and the corresponding transaction would also be significant. Such transactions amongst countries with different currencies need to be exchanged. Such exchanges in the international FOREX market occurring for fundamental reasons sets off the equilibrium.

By the natural market forces through demand and supply, currencies will come to a new equilibrium. The movement in currency values through such fundamental moves is accompanied by speculative transactions from investors and traders worldwide. Approximately 20% of all FOREX transactions occur for pure fundamental reasons while remaining occurs for speculative purposes.

Understanding the portfolio of exports a country has can help us get a fundamental idea about the underlying goods and service exports that influence currency moves. For instance, Australia depends heavily on Iron Ore exports (approximately 20%). The Iron exported is sold mainly to China and Japan. If business activity in China reduced because of some reason, a decrease in demand would reduce exports for Australia, followed by a corresponding drop in AUD currency value.

The below image depicts how AUD value against USD follows Iron Ore prices. Hence, countries that depend on fewer exports experience higher volatility than countries with a more diverse portfolio of export and imports.

Impact on Currency

The ‘Exports by Category’ is not an economic indicator but is an essential statistic to understand the country’s trade relations. The composition of exports of a country does not vary significantly every month as exports and imports are based on trade agreements and business contracts that generally last years at a stretch. Exports by Category can be used to identify which goods and services are potential influencers for currency volatility. Hence, overall it is an essential requisite for fundamental analysis but not an economic indicator.

Economic Reports

For the United States, the Census Bureau tracks all the import and export statistics on its official website. The international trades categorized based on trade partners and Categories of goods and services are also available.

Sources of Exports by Category

The Census Bureau’s International Trade Data, the Export & Import by Trade Partner, Foreign Trade has all the necessary details. Consolidated reports of Exports by Category for most countries is available on Trading Economics.

Exports by Category News Release – Impact on the Currency Market

We know that Exports is an important fundamental driver of an economy, that can significantly impact a nation’s currency. Digging deep into Exports, we can widen the heading into Exports by Category and Exports by country. In other words, the result of the two is reflected in the Exports data.

Exports by Category, not being an economic indicator, barely has any impact on the currency of an economy. Moreover, the data is based on trade contracts, due to which the numbers do not change often. Nonetheless, let us combine the Export by Category and Exports data to study the volatility change in the currency market.

Exports Report – USD

Exports by Category – United States

According to the reports, the US’s exports dropped by USD 6.6 billion from the previous month, reading USD 144.5 billion in May 2020. Looking at the Exports by Category data, all the top five categories saw a decline in Exports.

EURUSD – Before the Announcement

Below is the price chart of EURUSD on the 4H timeframe. Before the release of the Exports by Category (Exports), we see that the market is consolidating, and there is no clear trend as such. However, the market is slightly leaving lower highs and lower lows, indicating EUR weakness and USD strength.

EURUSD – After the Announcement

On the day of the news release, it is seen that the price showed bullishness in the beginning. However, it got rejected by the sellers by the end of the day.

In the following days, we can see that the market broke out from the consolidation and began to trend north, implying USD weakness and EUR strength. There certainly would be several factors to it, but one of the accountable factors can be the disappointing numbers projected by the Exports.

USDJPY – Before the Announcement

Prior to the release, we can see clearly that the USDJPY market was crashing down. However, it saw bullishness in the last week of June.

USDJPY – After the Announcement

The USDJPY price saw feeble volatility on the day the news was released. In hindsight, the market dropped and continued the predominant downtrend. This indicates that the USDJPY has negatively affected post the Exports by Category numbers.

GBPUSD – Before the Announcement

Before the report on Exports by Category, the GBPUSD market was in an evident downtrend, as represented by the trendline.

GBPUSD – After the Announcement

A day before the numbers were reported, the price aggressively broke above the trendline, indicating a reversal.

When the news released, the price tried going higher but was pushed right back down by the sellers. However, subsequently, the market did change direction and began to trend north.

Thus, it can be concluded that the market did not have an immediate effect on the prices but did have an expected outcome in the short-term. Cheers!

Categories
Forex Basic Strategies

Trading The Most Simple Yet Profitable ‘MACD Combo Strategy’!

Introduction Theoretically, trend trading is easy. All we need to do is keep buying as long as we see the price rising and keep selling as long as we see the price breaking lower. In practice, it is far more difficult to do it. When looking for such opportunities, many questions arise in our minds, […]

Introduction Theoretically, trend trading is easy. All we need to do is keep buying as long as we see the price rising and keep selling as long as we see the price breaking lower. In practice, it is far more difficult to do it. When looking for such opportunities, many questions arise in our minds, […]

Introduction

Theoretically, trend trading is easy. All we need to do is keep buying as long as we see the price rising and keep selling as long as we see the price breaking lower. In practice, it is far more difficult to do it. When looking for such opportunities, many questions arise in our minds, such as:

  • What is the direction of the market?
  • After spotting the trend, how long is the retracement going to last?
  • When is the trend going to end?

The greatest fear for traders is getting into a trend too late. That is, when the trend is coming to an end. Despite these difficulties yet, trend trading is considered to be the least risky and most popular styles of trading. When a trend develops, it can last for hours, days, and even months, depending on the time-frame.

Time Frame

The MACD Combo strategy works well on the 1-hour time frame. After gaining enough experience on the 1-hour time frame, we can also try the strategy on lower time frames.

Indicators

In this strategy, we will be using the following indicators

  1. 50 SMA
  2. 100 SMA
  3. MACD with default settings

Currency Pairs

This strategy applies only to major currency pairs. Some of the preferred pairs are EUR/USD, USD.JPY, GBP/USD, GBP/JPY, and few others. We need to make sure that whichever currency pair we are selecting, it should be fairly liquid.

Strategy Concept

The strategy we have developed answers all of the above questions. It also gives us clear entry and exit signals. This strategy is called the MACD combo. We use two forms of moving averages for the strategy: the 50 simple moving average (SMA) and the 100 SMA. The 50 and 100 input of SMA is suitable for trading on the 1-hour time frame chart. The input will change depending on the time-frame we choose to trade.

The 50 SMA provides a signal for entering a trade, while 100 SMA ensures that we are working in a clear trending market. The main idea of the strategy is that we buy or sell only when the prices cross the moving average in the direction of the trend. The basic concept of the strategy may appear similar to the “momo” strategy but is far more patient and uses longer-term moving averages on hourly charts to capture larger profits.

When this strategy is used on the daily (D) time frame wit the same indicator settings, it gives a larger risk to reward. Hence, this strategy is appropriate for long-term investors and swing traders.

Trade Setup

In order to explain the strategy, we have considered the chart of GBP/USD, where we will be using the strategy on the 1-hour time frame. Here are the steps to execute the MACD combo strategy.

Step 1

The first step of the strategy is to determine the market direction. This means we need to establish the trend of the market. As this is a trend trading strategy, the market must trend in a single direction before we can apply it. In an uptrend, the price should adequately trade above the 50 SMA and 100 SMA for a long period of time. Similarly, for a downtrend, the price should trade below both the SMAs.

In the below image, we see that the market is in a strong uptrend. Hence, we will look for ‘buy’ opportunities.

Step 2

The next step is to wait for a price retracement or a ‘pullback’ to join the trend at this discounted price. We say that the pullback is valid if the price crosses the closest SMA and stays below that SMA at least for a period of4-5 candles. But we need to make sure that the price does not cross below the next SMA. If that happens, the trend gets invalidated, and it may signal a reversal of the trend.

The below image shows that the pullback has crossed the first SMA (50 Period) and has stayed there for more than 5 hours.

Step 3

In this step, we will use the MACD indicator to enter the market. In case of an uptrend, we enter the market for a ‘buy’ as soon as the MACD indicator turns positive. Similarly, in a downtrend, we enter the market for a ‘sell’ when the MACD indicator turns negative. A conservative trader may enter the market after it moves above the SMA.

We can see in the below image that we are going ‘long’ soon after the MACD shows up a green bar. This is an aggressive form of ‘entry’ which requires experience to be able to spot them.

Step 4

In this step, we determine the stop-loss and take-profit for the strategy. Stop-loss is placed below the swing ‘low’ in case of a ‘long’ trade and above the swing’ high’ in case of a ‘short’ trade. Since we are trading with the trend, we will take our profits at the new ‘higher high‘ or ‘lower low’ depending on the momentum of the market. This is the reason behind high risk to reward of trades done using this strategy.

In this case, the risk to reward of the trade is 1:2, which is above the normal range.

Strategy Roundup

Traders implementing the MACD combo strategy should make sure that they only apply the strategy on currency pairs that are typically trending. Also, it is smart to check the crossover’s strength below or above the first moving average. We can also make use of the ADX indicator to check the momentum of the pullback. It is important to check the momentum of the trend and the pullback when trend trading.

Categories
Cryptocurrencies

Cobo Vault Review: Is It The Safest Hardware Crypto Wallet Ever Designed?

Cobo Vault is arguably one of the most secure hardware wallets currently available. Created by blockchain expert Lixin Liu, Cobo Vault features a host of premium security features that give it an edge over the competition. These include open sourcing its software, disabling wireless connections to the wallet, and enclosing it in a military-grade casing that’s both water and shock-proof. According to Liu, the device that’s dedicated to the Western Markets was designed with the aim of providing the safest, yet easy to use, hardware wallet.

Cobo Vault is arguably one of the most secure hardware wallets currently available. Created by blockchain expert Lixin Liu, Cobo Vault features a host of premium security features that give it an edge over the competition. These include open sourcing its software, disabling wireless connections to the wallet, and enclosing it in a military-grade casing that’s both water and shock-proof. According to Liu, the device that’s dedicated to the Western Markets was designed with the aim of providing the safest, yet easy to use, hardware wallet.

Cobo Vault is arguably one of the most secure hardware wallets currently available. Created by blockchain expert Lixin Liu, Cobo Vault features a host of premium security features that give it an edge over the competition. These include open sourcing its software, disabling wireless connections to the wallet, and enclosing it in a military-grade casing that’s both water and shock-proof. According to Liu, the device that’s dedicated to the Western Markets was designed with the aim of providing the safest, yet easy to use, hardware wallet.

It is one of the most transparent hardware wallets ever introduced to the public. Virtually, all its aspects are open-sourced. In this guide, we explore this in detail. We’ll highlight its key features, explaining its security features, providing you with a step by step on how it works, and going over its pros and cons.

Cobo Vault Key Features:

i) 4-inch touchscreen with a fingerprint sensor: Cobo Vault hardware wallet is relatively bulky and features one of the widest screens ever fitted on a hardware wallet. The wallet’s interactive interface is a 4-inch touchscreen with a fingerprint sensor and capable of fitting a full keyboard. The Cobo vault wallet also features a button and a camera that facilitate the wallet’s communications.

ii) Water and shock resistant: Both the metallic and glass casings of the Cobo Vault hardware wallet are made of aerospace aluminum. The military-grade casing is waterproof, impact-resistant, and fulfills the MLD-STD-810G standards set by the US Military.

iii) Rechargeable and removable battery: Cobo Vault hardware wallet features a rechargeable and removable battery. Additionally, instead of relying on the more expensive Li-Ion batteries, the wallet uses the readily available and inexpensive AAA batteries. Most importantly, these batteries have to be detached and charged on a charging dock as a further safety guide.

iv) Multi-coin and tokens support: The Cobo Vault hardware wallet currently supports up to 10 cryptocurrencies and the ERC-20 tokens. Its providers have, nevertheless, hinted on the possibility of expanding this number of supported cryptos during the upcoming firmware updates.

Cobo Vault security features:

Multi-character password:

Like any other hardware or software wallet, Cobo vault has a password as its first protection measure. You get to set this password during wallet installation and activation. Unlike most other crypto wallets, however, Cobo Vault allows you to set up a 30-character long password. Plus, you also have the option of using a pattern password.

Communication via QR Codes:

Unlike most other hardware wallets that use both wired and wireless connections like Bluetooth or Wi-Fi to connect to their crypto apps, Cobo vault uses QR codes. It does not have a USB port, and neither does it support Bluetooth nor Wi-Fi connections. To send/receive cryptos in/out of the wallet, you have to use its camera on the wallet device to scan the receiver’s QR code.

Open-sourced software:

Like most other hardware and software crypto wallets, Cobo vault has outsourced the technology used in coming up with the wallet. This has exposed it to scrutiny and auditing by crypto and blockchain industry experts who affirm its security.

Cobo vault has gone ahead and open-sourced its wallets secure element – often considered the most opaque part of the hardware – making it the first hardware wallet to expose this sensitive aspect of its wallet’s operations.

Firmware Upgrade through SD Card:

In light of the fact that the Cobo vault hardware wallet doesn’t have a USB port and doesn’t support wireless connections, it can only be updated via an SD card.

12-24 word recovery seed:

When installing the Cobo vault hardware wallet, you will also be furnished with a 24-word recovery seed that you can use to recover your private keys if you ever forget your password or lose the device. The Cobo Vault package will also feature a Cobo tablet – a stainless metallic wallet that you will use to store this recovery seed.

Increasing lockout period:

Cobo Vault further protects your wallet against brute force attacks by incrementally pushing up the lockout time between two subsequent password input attempts.

Self-destruct security feature:

In addition to the increased lockout period for failed password input, the Cobo vault hardware wallet has a self destruct feature. The wallet will delete any form of data stored within the wallet’s secure element should anyone try to open the body of the device.

Hidden vaults:

You get to create a vault/ wallet address for every crypto stored in your Cobo vault. But you also have the option of creating multiple hidden wallet addresses with individual passcodes for these cryptocurrencies and tokens.

No physical attack points:

The Cobo Vault Hardware wallet is completely air-gapped with no physical points of attack, safe for the SD card used during the firmware update. By disabling Wi-Fi, USB cable, and Bluetooth connections, Cobo Vault effectively eliminates the possibility of a man-in-the-middle attack.

Encryption chip:

The device features an encrypted chip that integrates BIP32, 39, and 44 security protocols. The Chip is proprietary and bank-grade, and it works by auto-generating truly random numbers for your private keys.

Setting up Cobo Vault hardware wallet

Step 1: Power on your device

Press and hold the power button for 3 seconds to boot the Cobo Vault wallet and proceed to choose your desired language.

Step 2: Visit Cobo official website

Using your desktop, laptop, or mobile phone, open Cobo Vault’s official website and click on start to display the web authentication QR code. The size of this code can be adjusted inwards or outwards.

Step 3: Scan the QR code using your Cobo Vault device

Use the camera on your Cobo vault device to scan the QR code displayed on the Cobo vault.

Step 4: Input the 8-digit code shown on your device

For the Cobo vault device verification, scan the 8-digit code on the website. If it succeeds, the website will display the “Authenticated” message while the device displays a “Success” note. But if your hardware and the website don’t pair, and the authentication process fails, it is possible that the device might have been tampered with.

Step 5: Set a strong password

Proceed to set a strong, memorable, and highly unique password. An ideal password is ten characters long. But, the Cobo Vault wallet makes it possible for you to create a 30-character password with a mix of symbols, numbers, and letters. Plus, you have the option of choosing to set up a pattern as your password.

Step 6: Create your vault

Proceed to create a new vault for storing your digital assets. To get started, tap on the ‘Create vault’ icon, click ‘Next,’ and then “Understand” to complete the process.

Step 7: Back up or record the recovery phrase

After creating the first vault, the device will display a set of 24-words known as the seed that is used in recovering your private keys should you forget the password for the device. Record these on the indestructible metal tablet shipped alongside the device. The device will ask you to confirm that you correctly recorded the seed.

Step 8: Start loading cryptocurrencies and tokens

Your wallet is now active and ready for use. You can start moving your cryptocurrencies from exchanges and other wallets into the Cobo Vault Wallet.

Step 9: Synchronize with Cobo Vault Mobile App

Accessing your vault from your mobile phone is quite easy. All you are required to do is synchronize your Cobo vault mobile app with your device. Start by downloading the app from Google Play or iOS. Open the app and click on “Bind” from the “Add wallet” option. Agree to their terms and conditions and click “confirm” to begin scanning the QR code.

If the code doesn’t scan currently on the first trial, click on “difficulty scanning” and retry.

Supported Crypto Assets and countries

Unlike most other hardware crypto wallets that support hundreds – sometimes thousands – of cryptocurrencies and tokens, you can only store a maximum of 11 cryptocurrencies and ERC-20 tokens on the Cobo Vault hardware wallet. These include:

  • Ethereum (ETH)
  • Dash
  • Bitcoin (BTC)
  • BitcoinCash (BCH)
  • Ethereum Classic (ETC)
  • EOS
  • XRP
  • Litecoin (LTC)
  • Zcoin (XZC)
  • Tron (TRX)
  • Decred (DCR)
  • ERC- 20 tokens

The Cobo wallet developers argue that there is no limit to the number of cryptos you can store within your Cobo crypto wallet. They are also regularly releasing firmware updates for the wallet that involves increasing the number of supported cryptocurrencies.

Virtually any crypto trader/investor looking for a safe storage unit for their digital assets can purchase the Cobo Vault hardware wallet form their official website and have it shipped to any part of the world.

Cobo Vault hardware wallet ease of use:

The fact that the Cobo Vault wallet will only use the QR code scanner for communications with the company’s website and mobile apps complicate its use – especially the initial activation and verification process. The processes of sending and receiving coins into the wallet are, however, quite straightforward as the wallet eliminates the need to type in the lengthy wallet addresses. You only need to scan the other party’s QR code.

Thanks to its relatively large touch screen and fingerprint sensor, interacting with the wallet when checking crypto balances, creating additional vaults, or setting passwords for hidden vaults is relatively simple.

Cobo Vault hardware wallet customer support:

Cobo vault’s website is multilingual and available in both English and Mandarin. Its developers have also availed both written and video tutorials on their website aimed at helping address some of the most common challenges faced by Cobo Vault users.

You can also contact the Cobo Vault customer support team by raising a ticket on their website, via email, or reaching out through the official Cobo Vault social media pages (Facebook, Weibo, Twitter, or LinkedIn).

Cobo wallet fees and charges:

The unlimited number of premium security features integrated into the Cobo Vault hardware wallet explains the relatively high price of the different Cobo Vault wallet models. Ideally, there are three models of the Cobo Vault Wallet: Cobo Vault Essential costs $99, Cobo Vault Pro costs $149, while Cobo Vault Ultimate costs $479.

You, however, won’t be charged to download and install the Cobo Vault mobile app or for the continued use of the Cobo wallet. The blockchain network operators will nevertheless institute transaction fees that vary based on the amounts transferred and type of coin. These fees go to blockchain miners and not Cobo Vault.

Pros and Cons of Cobo Vault hardware wallet

Pros 

  • The contactless nature of the hardware wallet goes a long way in eliminating the man-in-the-middle hacks.
  • It’s the first truly open-sourced hardware wallet – given that this open-sourced nature extends to its secure element.
  • Its large display allows users to use a full keyboard and eases interactions with the wallet.
  • The increased lockout period and self-destruct features pay a critical role in preventing such physical intrusions as the brute force attack.
  • Cobo Vault wallet employs a combination of several security features, all aimed at keeping your private keys private.

Cons

  • One may consider the wallet too complicated and not user-friendly.
  • The different models of the Cobo Vault wallet are a bit expensive.
  • The wallet supports less than a dozen cryptocurrencies.

How Does Combo Vault wallet Compare to other Wallets in the Market? 

Cobo Vault differs significantly, with some of the most common hardware wallets available today. For instance, in addition to the common security features employed by such hardware wallets as Trezor and Ledger Nano, Cobo Vault introduces the self-destruct mode. It also limits the device’s wireless connectivity and embraces a military-grade casing. That is, fire, water, and impact-proof. The likes of Trezor and Ledger Nano may, however, be considered more user-friendly, support a wide range of crypto assets, and are also less costly.

Final Verdict: Is Cobo Vault the safest hardware wallet?

Thanks to its tamper-proof design, open-sourced secure element, self-destruct feature, and limited connectivity, Cobo Vault makes it on the list of the most secure hardware wallets available today. We consider it ideal for long-time crypto investors specializing in popular cryptos. Its security and cool design notwithstanding, we take offense with its steep cost $479 cost, especially considering that it only supports 11 cryptocoins.

Categories
Forex Daily Topic Forex Fibonacci

Fibonacci Trading: A Reversal Candle is to be Followed by a Good Signal Candle

In today’s lesson, we are going to demonstrate an example of an H1-15M chart, which made a good bullish move upon producing a bullish reversal candle at a key Fibonacci level. The H1 chart produces an H1 bullish engulfing candle earlier, but the price does not head towards the North. It takes time then produces another bullish reversal candle. It then heads towards the North with good bullish momentum. We try to find out why it does not make a bullish move at the first attempt but makes it at the second.

In today’s lesson, we are going to demonstrate an example of an H1-15M chart, which made a good bullish move upon producing a bullish reversal candle at a key Fibonacci level. The H1 chart produces an H1 bullish engulfing candle earlier, but the price does not head towards the North. It takes time then produces another bullish reversal candle. It then heads towards the North with good bullish momentum. We try to find out why it does not make a bullish move at the first attempt but makes it at the second.

In today’s lesson, we are going to demonstrate an example of an H1-15M chart, which made a good bullish move upon producing a bullish reversal candle at a key Fibonacci level. The H1 chart produces an H1 bullish engulfing candle earlier, but the price does not head towards the North. It takes time then produces another bullish reversal candle. It then heads towards the North with good bullish momentum. We try to find out why it does not make a bullish move at the first attempt but makes it at the second.

This is an H1 chart. The chart shows that the price makes a good bullish move and then makes a bearish correction. It consolidates for a while at a level of support and produces a bullish engulfing candle. The H1-15M combination traders may flip over to the 15M chart to trigger entry upon getting a 15M bullish candle. Let us find out what happens next.

This is the H1 chart too. The chart shows that the price produces a bearish engulfing candle instead. We have not flipped over to the 15M chart yet. Let us find out how the 15M chart looks.

This is the 15M chart. The chart shows that the price does not produce any bullish candle closing ahead of the H1 bullish reversal candle. Thus, the price heads towards the South. The last candle comes out as a bearish engulfing candle in the 15M chart. It does not look good for the buyers anymore.

The price consolidates with more candles. The last candle comes out as a bullish engulfing candle again. The chart produces the candle at the same level. The combination traders may flip over to the 15M chart again to look for entry. Let us find out what the 15M chart produces this time.

This is how the 15M chart looks. The buyers may wait for a 15M candle to close above the last H1 candle’s close. The chart suggests that the level of support is a strong one, which may push the price towards the North with good bullish momentum.

The last candle comes out as a bullish candle closing above the last H1 candle’s resistance. The buyers may trigger a long entry right after the candle closes by setting stop loss below the level of support. We find out the level take profit with the help of Fibonacci levels.

See how the price moves towards the North. The price makes a bullish move and makes a new higher high. It makes a bearish correction and then heads towards the North again. Let us draw the Fibonacci extension on the chart.

The Fibonacci level shows that the price hits 161.8%. It goes even further up. It makes a bearish correction before producing the last wave. The level of 100% works as a level of support.

We have seen how important it is that the 15M chart produces a bullish continuation candle to offer an entry. At the first reversal, the price does not head towards the North since the chart does not produce any 15M bullish continuation. On the second occasion, it produces  a bullish continuation, and the buyers find an opportunity to go long and push the price towards the magic Fibonacci level of 161.8%

 

Categories
Forex System Design

First Steps to Build a Trading System

Introduction

Introduction

Introduction

A trading system can be defined as a specific set of rules that automatically determine what to buy or sell without human intervention. What to buy or sell? Where entry and exit of the market? How many positions will place on the market?
In this educational article, we’ll review the first steps to build a trading system.

Difference Between Trading Systems and Trading Strategy

In general terms, a trading system is a precise set of rules which automatically and without any external kind of human intervention, will place an order into the market, including the entry and exit levels. In consequence, since the trading system does not need any human intervention, the results can be verified objectively. 

A trading strategy typically features components such as a money management rule, and a portfolio rule that will define when entry and exit from the market.

The money management rule should not be confused with risk management because risk management considers where to place the stop loss and the profit target level. Conversely, money management answers the “how much” question; it determines the position size on a particular trade entry. 

Now, when the developer of a trading system includes a set of rules for portfolio construction, using non-correlated assets, this process corresponds to the portfolio management section of that system, which should target the maximization of its returns relative to the risk incurred.

The First Steps to Build a Trading System

As we commented, a trading system is a set of rules that defines, under certain market conditions, an entry order to buy or sell, which must include predefined stop loss and take profit levels. In this context, an example of pseudo-code of a trading system could be:

  • If the price(close) is higher than the price(high) of 10 days, then buy 0.1 lots.
  • If the price(close) is lower than the price(low) of 10 days, then sell 0.1 lots.
  • Set a stop-order at 1.5*AverageTrueRange(14)
  • Set a take-profit at 2.0*AverageTrueRange(14)

Our example is a basic idea for a trading system that will buy when the price surpasses the highest level of 10 previous days, and sell when the price pierces below the lowest level of 10 previous days. In both cases, the position size will be 0.1 lots, assuming that the system developer risks 1% of its trading account. Our model of the trading system proposed will place a stop-loss at 1.5 times the Average True Range (ATR) of 14 days, and the take profit will locate at 2.0 times the ATR of 14 days. This example did not consider a portfolio management rule. Until now, we assume the trader will work on a single market.

Considering that a trading system can be validated objectively using statistical methods, a system developer should consider these five steps to building a trading system:

  1. Observation of the financial market activity to discover a relationship between a group of variables.
  2. Hypothesis definition originating from the relationship between variables that causes some effect in the market.
  3. A Forecast arising from the potential effect of the interaction of the variables under study.
  4. Verification of the model employing real market data, using statistical methods.
  5. Conclusion based on the results obtained on the verification process and considering a determined confidence level. 

Conclusions

A trading system is a specific set of rules oriented to take market entries, including stop-loss and take profit levels, without human intervention.

The development process of a trading system requires a systematic methodology before placing it to work into the real market. The steps that the developer should have in consideration are as follows:

  1. Observation.
  2. Hypothesis.
  3. Forecast.
  4. Verification.
  5. Conclusion.

Suggested Readings

Jaekle, U., Tomasini, E.; Trading Systems: A New Approach to System Development and Portfolio Optimisation; Harriman House Ltd.; 1st Edition (2009).

Categories
Forex Assets

How Expensive Is It To Trade The NZD/DKK Forex pair?

Introduction NZD is the symbol of the New Zealand dollar, and it is the 10th most traded currency in the Foreign Exchange market. It is the official currency of New Zealand and some other countries like Cook Islands, Niue, the Ross Dependency. Whereas DKK stands for Danish Krone, and it is the official currency of […]

Introduction NZD is the symbol of the New Zealand dollar, and it is the 10th most traded currency in the Foreign Exchange market. It is the official currency of New Zealand and some other countries like Cook Islands, Niue, the Ross Dependency. Whereas DKK stands for Danish Krone, and it is the official currency of […]

Introduction

NZD is the symbol of the New Zealand dollar, and it is the 10th most traded currency in the Foreign Exchange market. It is the official currency of New Zealand and some other countries like Cook Islands, Niue, the Ross Dependency. Whereas DKK stands for Danish Krone, and it is the official currency of Denmark, Greenland, and the Faroe Islands.

The currencies in the Foreign exchange market are traded in pairs. NZD/DKK is the acronym for the New Zealand dollar against the Danish Krone. In this case, the first currency (NZD) is the base currency, and the second (DKK) is the quote currency.

Understanding NZD/DKK

To find the comparative value of one currency in the Forex market, we need another currency to evaluate. If the value of the first(base) currency goes down, the value of the second (quote) currency moves up and vice versa. The market value of NZD/DKK determines the strength of DKK against the NZD. It can be clearly understood as 1 NZD is equal to how much of DKK. So if the exchange price for the pair NZD/DKK is 4.1943, it means we need 4.1943 DKK to buy 1 NZD.

Spread

Forex brokers have two different rates for currency pairs: the bid & ask price. Here the “bid” price at which we can OFFER the base currency, and The “ask” price is at which we can ACQUIRE the base currency. Therefore, the difference between the ask and the bid price is called the spread. Some brokers, instead of charging a split fee for trading, they already have the fees inherent in the spread. Below are the ECN and STP for the pair:

ECN: 15 pips | STP: 20 pips

Fees

When we place any trade, there is some payment/commission we need to pay to the broker. A Fee is simply that payment that we pay to the broker each time we open a position. The fee also fluctuates from the type of broker we use; for instance, there are no charges on STP account models, but a few pips on ECN accounts.

Slippage

The difference between the anticipated and executed price at which the trade is implemented can be termed as Slippage. It can appear at any time but mostly happens when the market is fast-phased and volatile.

Trading Range in NZD/DKK

The trading range is a tabular interpretation of the pip movement in a currency pair for separate timeframes. Using this, we can gauge the risk on a trade for each timeframe. A trading range effectively represents the minimum, average, and maximum pip movement in a currency pair. This can be assessed quickly by using the ATR indicator combined with 200-period SMA.

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.

NZD/DKK Cost as a Percent of the Trading Range

The cost of trade primarily varies on the broker and fluctuates based on the volatility of the market. This is for the reason that the total cost includes Slippage and spreads apart after the trading fee. Following is the description of the cost variation in terms of percentages. The knowledge of it is discussed in the subsequent sections for ECN and STP accounts.

ECN Model Account

Spread = 15 | Slippage = 5 |Trading fee = 8

Total cost = Slippage + Spread + Trading Fee = 5 + 15 + 8 = 28

STP Model Account

Spread = 20 | Slippage = 5 | Trading fee = 0

Total cost = Slippage + Spread + Trading Fee = 5 + 20 + 0 = 25

The Ideal way to trade the NZD/DKK

The NZD/DKK is an exotic currency pair, and the volatility in this pair is moderate. As seen in the range table above, the average pip movement on the 1hour time frame is 68. We must know that the cost of trade declines as the volatility of the pair increases. But this should not be held as an advantage because it is unsafe to trade high volatile markets as the prices rise and fall swiftly.

For instance, in the 1-hour timeframe, the maximum pip range value in this pair is 119 pips, and the minimum pip range value is 20 pips. When we compare the fees for both the pip movements, we find that for 20 pip movement fees is 140.00%, and for a 119 pip movement, the fess is only 23.53%.

So, we can substantiate that the prices are more significant for low volatile markets and high for extremely volatile markets. Hence, we must constantly try to make our entries and exits when the volatility is minimum or average than to that of maximum values. But if your preference is certainly towards decreasing your trading costs, you can trade when the market’s volatility is near the maximum values with optimal risk management.

Categories
Forex Fundamental Analysis

‘Imports by Country’ – How Crucial Is It To Know About This Fundamental Forex Driver?

Introduction Currency values are critical for international trade and vice-versa. The exchange rates are directly influenced by changes in import and export composition, quantity, and prices. The volatility of a currency is directly associated with the country’s import and export relations with other countries. Understanding how international trade affects currencies in the forex market is […]

Introduction Currency values are critical for international trade and vice-versa. The exchange rates are directly influenced by changes in import and export composition, quantity, and prices. The volatility of a currency is directly associated with the country’s import and export relations with other countries. Understanding how international trade affects currencies in the forex market is […]

Introduction

Currency values are critical for international trade and vice-versa. The exchange rates are directly influenced by changes in import and export composition, quantity, and prices. The volatility of a currency is directly associated with the country’s import and export relations with other countries. Understanding how international trade affects currencies in the forex market is paramount for fundamental analysis.

What are Imports by Country?

A country’s trade balance (net exports and imports) is critical for currency valuation. The Balance of Trade refers to the required balance to exist between the total monetary value of a nation’s exports and imports. It is key to currency valuation. When a country exports, domestic currency comes into the country in exchange for the sale of products. When a country imports, the currency goes out in exchange for purchasing goods outside the country. Hence, a balance of exports and imports to maintain a healthy economy.

It is often necessary to understand a nation’s export and import composition to grasp its ties with other countries. Countries’ dependency on goods and services from other nations induces leverage and power for the exporting countries. For example, the United States imports 20% of all its goods from China. If China were to cut-off all its exports to the United States, that would dramatically impact the United States economy and its currency. Hence, the categorization of imports based on country and goods gives us an idea of the underlying relationships between currencies.

United States Imports by Country 

Source: Trading Economics
How can the Imports by Country numbers be used for analysis?

Today’s global world is one that is tightly interconnected and has complex links amongst countries. Understanding trade composition helps us in identifying where to look for volatility. For instance, the United States only imports about 2% of its products from India. If, for some reason, the import prices changed from India in either direction or completely stopped, it would not impact the trade balance significantly.

Hence, categorization based on countries helps us understand the dependencies a particular country has. Heavy dependence on a limited set of countries, especially for primary resources like energy and food, is not suitable for the economy. During times of a natural disaster in the exporting country will affect the dependent countries also.

A country that solely depends on its trade relations with fewer countries is likely to see more volatility in currency valuation. The more diverse the portfolio of a country in terms of its international trade partners, the more robust the currency is. Hence, currencies like the AUD, CAD are more volatile currencies because their exports are heavily dependent on fewer markets, unlike the EUR and USD.

Imports and Exports by country and category of products are equally essential to understand a nation’s currency volatility. For instance, Australia’s heavy dependency on coal and iron ore exports to china and japan induces volatility in AUD currency in correlation with coal and iron ore prices.

The Imports by country is not an economic indicator but is a prerequisite for understanding macroeconomic analysis of currency pairs. Currency valuations are primarily affected by trade relations a country has. It is not frequent for a country to change its import composition by country often, but it has a significant impact on the currency when it does.

Imports form only one half of the equation. Overall to understand the macroeconomic dynamics, both exports and imports have to be taken into account. Also, currency value change has a direct effect on imports and exports. When the Domestic currency appreciates imports are cheaper and profit margin increases for importing companies but hurts exporters as they receive fewer dollars than before. When the domestic currency depreciates, imports get hurt while exporters benefit. Some countries competitively peg their currency lower during export and higher during import. This phenomenon is sometimes referred to as “currency wars.”

Changes in import and export composition as a result of trade agreements or tariffs imposed has a more direct impact on companies that constitute the import and export goods and services. Hence, stock prices of companies are more sensitive to import and export data.

Impact on Currency

Imports categorized based on countries is for segregation and analysis purposes only. It is not an economic indicator in itself. Still, it is essential to understand the existing trade partners of a country to know which currencies are being exchanged for what goods. Imports and Exports both make up the balance of trade, which helps to analyze currency valuation.

Hence, Imports categorized by country are although useful, changes in the composition are necessary for a macroeconomic picture but does not induce volatility in itself. Any change in composition would have already been announced in news reports that would be priced into the market. It is useful at the starting point for establishing currency analysis, but it is neither an economic indicator nor induces any volatility in currencies.

Economic Reports

For the United States, The Census Bureau tracks and consolidates import and export composition on its official website. It releases monthly data ranking countries with which it had exports and imports. It details all the goods and services that are exported or imported from the partner countries.

Sources of Imports by Country

Census Bureau’s Trade highlights reports are available here. We can find a consolidated listing of “Imports by country” of most countries on Trading Economics.

Imports by Country News Release – Impact on Price Charts

Imports by Country is an important piece in analyzing the “Trade” and “Imports” fundamental indicators. It alone is not an economic indicator but is one of the components that make up a fundamental indicator. Precisely, the balance of trade is the economic driver that references the data obtained from Imports and Exports. Extending further, the data from Imports is acquired from factors like Imports by Country and Imports by Category.

Imports by Country alone does not pump up the volatility of the market. Also, the report is released during the release of the Imports data.

Imports Report – Untied States

United States Imports by Country

The USA is the second-largest importer in the world. The imports of the USA are China, the European Union, Euro Area, Canada, Mexico. For the May data, the overall imports dropped from $200.9 billion to $199.1 billion. Imports from China and Canada increased the previous month, but the rest saw a slight decline.

NZDUSD – Before the Announcement

In the below chart of NZDUSD, on the 4H time frame, we can see that the market is in an uptrend. It made a high to 0.65815. Since then, the price has been retracing.

NZDUSD – After the Announcement

On the day of the report announcement, the NZD showed strength, while USD showed weakness. However, the volatility and volume remained average. In the following days, the bullishness remained intact. In fact, after consolidating for a while at the resistance, the price made a new high. Thus, we can conclude that the Imports by Country indirectly did affect the USD price.

AUDUSD – Before the Announcement

From the price chart of AUDUSD, we can see that the price action is similar to that of NZDUSD. Before the announcement of the news, the market was in a strong uptrend.  After making a high to 0.69845, the prices have been pulling back down.

AUDUSD – After the Announcement

During the announcement of the news, the market volatility was unchanged. However, in the subsequent sessions, the market reacted negatively on USD, and the price touched the recent high and even made a higher high. The market perhaps did react as expected to the new, but in the later weeks.

USDCHF – Before the Announcement

Before the announcement of the news, the market was in a pullback phase of a downtrend.

USDCHF – After the Announcement

On the announcement day, the volatility of the market was feeble. The price pushed to the downside but with low volume that is typically seen during the announcement of major news events.

In the following trading days, the predominant downtrend continued where the price made a new low from 0.93828. This down move could be due to several factors; however, there could be a slight effect on the Imports by Country report. Cheers!

Categories
Crypto Guides

Twitter Bitcoin Scams Calls For The Need Of ‘Crypto Scam Awareness’!

Introduction Blockchain and cryptocurrency have changed the way people used to think about making a digital transaction. Blockchain uses cryptography to secure the digital payments made through cryptocurrencies. Over the years, there have been plenty of cryptocurrencies launched that are fueling the crypto world constantly. However, Bitcoin remains a prominent player that is continuously enhancing […]

Introduction Blockchain and cryptocurrency have changed the way people used to think about making a digital transaction. Blockchain uses cryptography to secure the digital payments made through cryptocurrencies. Over the years, there have been plenty of cryptocurrencies launched that are fueling the crypto world constantly. However, Bitcoin remains a prominent player that is continuously enhancing […]

Introduction

Blockchain and cryptocurrency have changed the way people used to think about making a digital transaction. Blockchain uses cryptography to secure the digital payments made through cryptocurrencies. Over the years, there have been plenty of cryptocurrencies launched that are fueling the crypto world constantly. However, Bitcoin remains a prominent player that is continuously enhancing its growth.

With such huge popularity and wide approach comes the vulnerability to scams and fraudulent practices. That’s precisely what happened to Bitcoin traders this year when it fell prey to a humongous Twitter Scam.

An Overview of Twitter Bitcoin Scam

If you have been following the crypto news, you would have already heard and read about the Twitter Bitcoin scam that created a rage in the industry. It happened on 15th July 2020 somewhere around 22:00 UTC when approximately 130 high profile Twitter accounts majorly, including big corporate houses, manufacturing giants, and business persons, were hacked.

These Twitter accounts were compromised by the hackers to promote a Bitcoin scam wherein they asked the users to send Bitcoin to an anonymous crypto wallet as a part of a scam promotion.

What Havoc Did The Scam Tweet Make?

The scammers behind the scandalous Twitter Bitcoin scam first hacked the high-profile Twitter accounts to make people believe in the possible scam. They sent out a typical tweet where they asked the Twitter users to send Bitcoin to a specific wallet to get back their cryptocurrency doubled. Within a few minutes of the tweet, more than 300 transactions were made to the wallet, which equaled around USD 110,000 worth Bitcoin.

Though the scam tweets were removed from the account, it had already created the chaos by sourcing Bitcoin from the users. This recent Twitter Bitcoin scam is now being called as the biggest and the worst crypto hack on social media.

There have been many instances where social media was used to make financial scams, but it is for the first time that a Bitcoin scam of such a colossal scale took place on Twitter. Security experts say that this could have turned into a messy scam, but the scam was brought into light minutes after it was posted that allowed the official to take action at the right time.

How To Safeguard From The Social Media Scams?

Social media scams are considered the most severe ones as it can intensify the situation. Here are a few tips to stay protected from such scams.

  • Increase your awareness regarding social media scams.
  • Try to detect the imposter websites that can pave the way for financial fraud.
  • Fake mobile apps are popular tools for cryptocurrency scammers.
  • Stay away from fake tweets and other social media updates that ask you to make transactions.
  • Scamming emails are also a prominent source of crypto scams. Check the veracity of the email before investing in any cryptocurrency platform.

The Bottom Line

Cryptocurrency scams can be financially detrimental; hence, it is vital to take all the necessary precautions to safeguard your interests from such scams. Recently the Twitter Bitcoin scam created an alarming situation among the crypto traders. Make sure to check the credibility and authenticity of everything before dealing in cryptocurrency.

Categories
Crypto Daily Topic

Why the United States Senate is Mulling over Digitizing the Dollar

About two years ago, the concept of central bank digital currencies (CBDCs), particularly in the United States, seemed far away in the future. Sure, there have been several studies exploring the implementation and use cases of CBDCs, but to the average person, the concept was still unclear. Fast forward two years, the Senate Banking Committee tabled a bill known as “Banking For all Act” that seeks to digitize the U.S.U.S. dollar. 

About two years ago, the concept of central bank digital currencies (CBDCs), particularly in the United States, seemed far away in the future. Sure, there have been several studies exploring the implementation and use cases of CBDCs, but to the average person, the concept was still unclear. Fast forward two years, the Senate Banking Committee tabled a bill known as “Banking For all Act” that seeks to digitize the U.S.U.S. dollar. 

About two years ago, the concept of central bank digital currencies (CBDCs), particularly in the United States, seemed far away in the future. Sure, there have been several studies exploring the implementation and use cases of CBDCs, but to the average person, the concept was still unclear. Fast forward two years, the Senate Banking Committee tabled a bill known as “Banking For all Act” that seeks to digitize the U.S.U.S. dollar. 

Led by Senator Sherrod Brown, the bill came at the height of a global pandemic – the Coronavirus outbreak – which has prompted the U.S.U.S. government to offer taxpayers a stimulus check to help them weather the economic recession caused by the epidemic. In a press release, Senator Brown laid out the details of this bill by saying that if implemented, the legislation would allow Americans to access their stimulus funds without relying on expensive check cashers. Unfortunately, the proposed legislation didn’t make the final draft of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. As a result, the distribution of the first $1200 stimulus check was riddled with issuance glitches since the existing infrastructure doesn’t support the nationwide disbursement of funds. In fact, it is reported that more than 35 million Americans are yet to receive their first stimulus check. 

The digital dollar debate Gets a second chance.

Under the current system, Americans have to wait for direct cash deposits or physical checks from the U.S. Treasury Department. As such, those without a bank account filed with the Internet Revenue Service (IRS) cannot receive the stimulus check. At the same time, with respect to the spread of Coronavirus, physical cash/checks can increase the spread of the disease, countering the government’s efforts of flattening the curve. This created a new momentum for the reintroduction of the digital dollar proposal as an efficient way of distributing funds. 

Building on this momentum, congresswomen Rashida Tlaib (D-Mich.) and Pramila Jayapal (D-Wash.) introduced a proposal to have the federal government issue a $2,000 stimulus check through the Automatic BOOST to Communities Act (ABC Act). Under this act, Congress will authorize the Federal Reserve to create ‘FedsAccounts,’ which are, basically, digital dollar account wallets. This way, U.S. residents and businesses will be able to access funds through an app on their phone. 

Following up on ABC Act, the Senate Banking Committee recently held a virtual meeting to discuss the digitization of the dollar, chaired by Senator Mike Crapo. In attendance were four ‘witnesses,’ among them being the former chairman of the U.S. Commodity Futures Trading Commission (CFTC), Christopher Giancarlo. He is also the brainchild of a non-profit think tank known as the Digital Dollar Foundation (DDF), which seeks to advance the cause of government-issued digital currency. Recently, the foundation partnered with Accenture – a global leader in CBDC advancement – to form the Digital Dollar Project. Under this merger, a whitepaper was released explaining a “Champion Model” for what should be the essential technical designs of a digital dollar. 

The Champion Model 

As outlined in the whitepaper, the digital dollar doesn’t seek to replace its fiat counterpart, but rather act as a third form of the national currency. As such, the Federal Reserve will maintain its control over the monetary policy and distribution of the digital dollar. 

The only difference between the proposed digital dollar and the fiat currency is that the former will be distributed in the form of tokens instead of an account-based model used by the latter. Through tokenization, all transactions will be managed by a digital ledger that records and authenticates digital dollar tokens to ensure that they are genuine and not double spent. 

To kick-start, the distribution of the digital dollar, commercial banks, and payment processors will exchange their fiat currency reserves for digital dollars, and subsequently distribute them to customers via apps or debit cards. 

Pros and cons of a digital dollar 

The main advantage of a federal issued digital dollar is that it will enhance financial inclusion. This is especially important with the ongoing issuance of stimulus checks whereby the unbanked population missed out on the first disbursement due to a lack of access to financial services. Even for the banked population, the current payment processors are inherently slow and costly to send money. However, the blockchain architecture supporting the digital dollar can facilitate efficient transactions at a more affordable rate than the existing infrastructure. 

Besides the advantages, there are various concerns about the use of tokenized dollars. Most of these concerns are centered around the privacy and centralization of users’ data. The CBDC will be issued by the Federal Reserve, meaning that the government will gain absolute control of users’ financial data. Also, with the government’s reputation for running mass surveillance programs, the incoming digital dollar may be a new system of monitoring the masses. 

Beyond payments

The digital dollar proposal is yet to get a green light from Congress. But, having sparked the attention of legislators, it conveys an overwhelming sense of urgency that the government should work on a CBDC sooner than later. Moreover, the Digital Dollar Project whitepaper emphasizes the need for digitizing the dollar by laying out that other national governments have already started pilot programs for their native CBDC. 

China, in particular, is testing its native digital currency, which will be included in payment systems of various multinational companies such as Starbucks and McDonald. Of particular concern is China’s potential to push its digital Yuan in emerging markets and international trade. If successful, the digital Yuan has the potential to unseat the U.S. dollar as the ideal reserve currency. 

Facebook’s plan to launch its digital currency – Libra – has also had a hand in spiking the government’s interest in designing a digital dollar. Even more recently, the Libra association modified its whitepaper to include a series of fiat-pegged stablecoins rather than just one multi-currency backed token as initially planned. 

Conclusion 

It remains unclear how soon the digital dollar will come into existence. However, given the economic pressure from the Coronavirus outbreak as well as competition from China’s digital Yuan, the digital dollar debate will continue to linger in the minds of policymakers for long. Ultimately, it is great to see legislative attention on digitizing the dollar using blockchain technology, as this promotes the acceptance of cryptocurrencies. 

Categories
Cryptocurrencies

What’s Bitcoin Gold? 

One of the bargaining points for Bitcoin is its decentralization. Which means it’s not controlled by a central authority such as a bank or government. On that front, Bitcoin has it covered. However, there’s another entirely different front that the cryptocurrency has in recent years struggled with. Powerful mining machines and entities have taken over mining in the Bitcoin network, effectively locking out miners of more modest means. This is hardly what Satoshi Nakamoto had in mind when he created the peer-to-peer, electronic, and decentralized currency system. 

One of the bargaining points for Bitcoin is its decentralization. Which means it’s not controlled by a central authority such as a bank or government. On that front, Bitcoin has it covered. However, there’s another entirely different front that the cryptocurrency has in recent years struggled with. Powerful mining machines and entities have taken over mining in the Bitcoin network, effectively locking out miners of more modest means. This is hardly what Satoshi Nakamoto had in mind when he created the peer-to-peer, electronic, and decentralized currency system. 

One of the bargaining points for Bitcoin is its decentralization. Which means it’s not controlled by a central authority such as a bank or government. On that front, Bitcoin has it covered. However, there’s another entirely different front that the cryptocurrency has in recent years struggled with. Powerful mining machines and entities have taken over mining in the Bitcoin network, effectively locking out miners of more modest means. This is hardly what Satoshi Nakamoto had in mind when he created the peer-to-peer, electronic, and decentralized currency system. 

Decentralized and peer-to-peer. It’s all in those two words. The ability for ordinary people to transact with each other, directly, on the Bitcoin blockchain. The ability for anyone to participate in maintaining and securing the network. But the current picture in which a few powerful companies dominate this function diminishes the decentralization principle of the network. 

Bitcoin Gold (BTG) is a Bitcoin fork that seeks to remedy this problem. The currency hard-forked from the Bitcoin blockchain on October 24, 2017, at block height 491407. Let’s find out what Bitcoin Gold has in store.

Understanding Bitcoin Gold

Bitcoin Gold is a cryptocurrency that forked off of the Bitcoin blockchain. The currency hopes to make Bitcoin mining truly decentralized, as was the original vision by Satoshi Nakamoto. The team behind Bitcoin Gold envisions a cryptocurrency that everyone gets to participate in, as opposed to that ability being concentrated in the hands of a few powerful companies. 

In Bitcoin Gold’s own words: “Bitcoin Gold is a community-led project to create an experimental hard fork of bitcoin to a new proof of work algorithm. Bitcoin Gold will provide an opportunity for countless new people around the world to participate in a mining process with widely-available consumer hardware that is manufactured and distributed by reputable mainstream corporations. A more decentralized, democratic mining infrastructure is more resilient and more in line with Satoshi’s original vision.” 

Bitcoin Gold: Decentralizing Bitcoin

In Bitcoin’s early days, the ordinary computer could perform the work needed to verify and add transactions on the blockchain (in a process called mining). But in recent years, mining difficulty has increased, leading to the advent of more powerful and effective mining equipment known as application-specific integrated circuits (ASICs). ASICs today perform nearly all the mining on the Bitcoin blockchain. 

ASICs are designed for the sole purpose of Bitcoin mining – a factor that makes them incredibly fast and effective for the task. The problem is, buying and operating an ASIC machine involves a large amount of money (with the average ASIC miner going for $1,000 or more). 

This is something that locks out the average user from participating in the Bitcoin network. It also leaves Bitcoin mining in the hands of the few with the financial wherewithal to afford to purchase, install, and run ASIC machines. The result? Bitcoin becomes more centralized. And that’s not the end. The huge majority of Bitcoin mining takes place in actual warehouses equipped with hundreds/thousands ASICs that run 24/7. In this kind of setup, even if you can afford an ASIC machine, you cannot possibly compete with an entire warehouse. 

Bitcoin Gold wants to change this. The end goal is to make Bitcoin mining attainable for the average person, making it a much more decentralized process. Or, as the project’s slogan goes – “Make Bitcoin decentralized again” – a tongue-in-cheek play on Donald Trump’s 2016 election campaign slogan. Of course, the underlying message is much soberer: make Bitcoin mining a more inclusive and equitable process. And to achieve this, Bitcoin Gold has to make major decisions, such as changing a Bitcoin mining algorithm to no longer support ASIC mining.

SHA-256 vs. Equihash

To stop Bitcoin mining’s dependence on ASICs, Bitcoin Gold has to make it difficult for the machines to perform the proof of work involved in transactions’ verification and addition to the public ledger. In view of this, the BTG blockchain employs a memory-hard (meaning dependent on RAM) hashing algorithm known as Equihash. By contrast, the ASIC-dependent Bitcoin blockchain uses the SHA-256. The requirement for more memory renders it more complicated for the processing power-focused ASICs. This means small-time GPU miners can get in the groove once again.

Replay Protection

The Bitcoin Gold blockchain has integrated ‘replay protection’ as a means to protect users from potential hacks and other malicious activity. Replay protection is a feature that prevents users from sending both Bitcoin Gold (BTG) and Bitcoin (BTC) during a transaction. This protection is meant to cushion against a replay attack, which is an attack that can occur in the context of two forked cryptocurrencies that share the same code. In the absence of replay protection, users might accidentally send funds via the wrong blockchain, losing them entirely. 

As explained by the developers in a blog: “In order to ensure the safety of the Bitcoin ecosystem, Bitcoin Gold has implemented full replay protection – an essential feature that protects users coins from being spent unintentionally.” 

Mining Bitcoin Gold

With Bitcoin Gold being a more attainable Bitcoin, so to speak, how do you get to mining? All you need is a GPU – as opposed to the expensive and complex setup of an ASIC machine. Next, you should join a mining pool. A mining pool allows miners to come together and combine processing power so as to mine blocks faster. At the successful mining of a block, full participants share the reward according to each miner’s contribution to their processing power. You’ve got several choices, including pool.gold, 2Miners, Minergare, BTGPool Pro. Next, you need to download the mining software for the pool you’ve joined. 

You’ll then need to have a BTG wallet. You’ve got options like BTGWallet.online, Bitcoin Gold Core, Ledger S, Freewallet, and so on. Every Polo has its own set of procedures, including integrating your wallet.

Controversy Surrounding Bitcoin Gold’s Launch

Like almost any prominent crypto hard fork, Bitcoin Gold’s launch was not short of controversy. The first controversy was the developer’s decision to conduct a “postmine” of 100, 000 coins after the launch. About 8000 blocks were mined in quick succession, with 5% of these going to the core developing team.

Coinbase, the largest crypto exchange in America and one of the largest in the world, was particularly skeptical of the crypto, stating that they “cannot support Bitcoin Gold because its developers have not made the code available to the public for review. This is a major security risk.” 

Also, just five days after launch, miners accused one of the developers of adding a 0.5% mining fee that had not been made transparent previously.

Tokenomics of Bitcoin Gold

As of 13th July 2020, BTG was trading at $9.75, while ranking at #57 in the market. It has a market cap of $170, 763, 243, 24-hour volume of $39, 395, 586, a circulating and total supply of 17, 513, 924, and a maximum supply of 21 million. In addition, the coin’s all-time high was $53 9.72 (Oct 23, 2017), while it’s all-time low was $4.31 (March 13, 2020). 

Buying and storing BTG

BTG is one of the popular cryptocurrencies, so you should have no trouble finding an exchange listing it. Options include big hitters like Binance, Bitfinex, Huobi, Livecoin, Gate.io, OKEx, P2PB2B, BitHumb, EXMO, Folgory, YoBit, and Coinone. 

When it comes to the coin’s storage, you have several options, including Trezor, Bitcoin Gold Core, Ledger Nano, Exodus, Coinomi, Bitpie, and Freewallet.

Conclusion

The idea of cryptocurrency is to hand back the power of finance to the people. The ordinary person gets to participate in the “minting” of new coins, as well as securing the source network. But this grand promise for the first-ever cryptocurrency got subdued along the way, with powerful specialized machines taking the whole stage. Bitcoin Gold is out there trying to steer things back to how they’re supposed to be. 

Right now, the currency is performing modestly in the market. It’s hard to tell, just like with any cryptocurrency, the prospects of the coin. But as the crypto industry becomes more inclined towards true decentralization, it’s not hard to fathom BTG climbing to the top of the ranks. 

Categories
Forex Assets

Asset Analysis – Trading The NZD/SEK Exotic Cross Currency Pair

Introduction NZD/SEK is the acronym for the currency pair New Zealand dollar versus the Swedish Krona. It is marked under the exotic cross-currency pair category. In this pair, NZD will be the base currency, and SEK will be the quote currency. In this article, we shall understand everything about trading this currency pair. Understanding NZD/SEK […]

Introduction NZD/SEK is the acronym for the currency pair New Zealand dollar versus the Swedish Krona. It is marked under the exotic cross-currency pair category. In this pair, NZD will be the base currency, and SEK will be the quote currency. In this article, we shall understand everything about trading this currency pair. Understanding NZD/SEK […]

Introduction

NZD/SEK is the acronym for the currency pair New Zealand dollar versus the Swedish Krona. It is marked under the exotic cross-currency pair category. In this pair, NZD will be the base currency, and SEK will be the quote currency. In this article, we shall understand everything about trading this currency pair.

Understanding NZD/SEK

The price of this pair in the foreign exchange market determines the value of SEK comparable to one NZD. It is quoted as 1 NZD per X SEK. So, if the value of this pair is 5.8296, these many Swedish Kronor (SEK) are required to purchase one NZD.

Spread

Trading the Forex market usually does not involve spending a lot of fees like the Stock market. Here, Forex brokers make profits through spreads. It is nothing but the difference between Bid – Ask prices of an asset. Some broker has the cost inherent into the buy and sell prices of the currency pair; instead of charging a separate fee. Below are the spread values of ECN and STP brokers for the NZD/SEK pair.

ECN: 48 pips | STP: 53 pips

Fees

A Fee is the charges we pay to the stockbroker for executing a particular trade. The fee fluctuates from the type of broker we choose. For example, the fee on the STP accounts is zero, but we can expect a few additional pips on ECN accounts.

Slippage

Slippage is the contrast between the price expected by the trader for execution and the price at which the agent executed the price. There is this variation due to the high market volatility and more passive execution speed.

Trading Range in NZD/SEK

The trading range is used at this point; to measure the volatility of the NZD/SEK pair. The amount of money we will gain or lose in an allotted timeframe can be evaluated using the trading range table. The minimum, average, and maximum pip movement of the currency pair is exemplified in the trading range. This can be evaluated simply by using the ATR indicator combined with 200-period SMA.

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.

NZD/SEK Cost as a Percent of the Trading Range

The rate of trade varies on the stockbroker and fluctuates according to the volatility of the market. This is because the trading cost includes fees, slippage, and the spread. The rate of variation in terms of percentage is given below.

ECN Model Account

Spread = 48 | Slippage = 5 |Trading fee = 8

Total cost = Slippage + Spread + Trading Fee = 5 + 48 + 8 = 61

STP Model Account

Spread = 53 | Slippage = 5 | Trading fee = 0

Total cost = Slippage + Spread + Trading Fee = 5 + 53 + 0 = 58

The Ideal way to trade the NZD/SEK

The NZD/SEK is termed as an exotic-cross currency pair and has a low volatile market. Looking at the pip range table, the average pip movement on the 1H timeframe is 115 pips, which implies high volatility. As we know, the higher the volatility, the smaller will be the cost to implement the trade. Nonetheless, this is not a benefit to trading in a volatile market; it involves higher risk.

For instance, in the 1M time frame, the Maximum pip range value is 1938, and the minimum is 503. When we evaluate the trading fees for both the pip movements, we notice that for 503 pip movement fees is 12.13%, and for the 1938 pip movement, fess is only 3.15%. Therefore, from the above instance, we can determine that trading the NZD/SEK currency pair will be on the expensive side.

Categories
Crypto Daily Topic

Gold Vs Bitcoin: Which one is a Better Long-term Investment?

The most striking difference between gold and Bitcoin is that the former is a tangible asset. At the same time, the latter is an intangible digital asset that is created by computers crunching complex equations. From an investment perspective, gold is regarded as a ‘safe haven’ asset given its long history as an alternative investment […]

The most striking difference between gold and Bitcoin is that the former is a tangible asset. At the same time, the latter is an intangible digital asset that is created by computers crunching complex equations. From an investment perspective, gold is regarded as a ‘safe haven’ asset given its long history as an alternative investment […]

The most striking difference between gold and Bitcoin is that the former is a tangible asset. At the same time, the latter is an intangible digital asset that is created by computers crunching complex equations. From an investment perspective, gold is regarded as a ‘safe haven’ asset given its long history as an alternative investment for hedging against stock market volatility. Also, the increasing ownership of gold by central banks and governments further validates its ‘safe haven’ status as a reliable store of value. 

Bitcoin, on the other hand, is a new entry into the asset market. It made headlines in 2017 when it traded at an all-time high price of $20,000. Since then, it’s the market price has been swinging violently, which explains why it’s considered a speculative investment. Although Bitcoin’s outsized volatility usually scares off investors, it has contributed to the increase in the value of the digital asset in the long haul. 

That said, in a digital economy, hoarding piles of gold bars as a store of value can be overly cumbersome. As such, many investors are concerned about their long-term wealth and are mulling over investing in Bitcoin – a virtual currency whose future looks promising in the era of the digital economy. 

Fundamental differences between Gold and Bitcoin 

Besides the physical-digital difference, other key distinguishing features need to be examined before investing in either gold or Bitcoin. These include: 

i) Supply and demand

As with most assets, the value of gold and Bitcoin is tied to their supply and demand. The higher the supply, the lower the demand, leading to lower market prices/value. 

For starters, it’s hard to know the exact supply of all the gold in the world. However, if one were to draw a graphical representation of gold’s supply, one would notice a gradual increase in gold’s market supply over the years. With this in mind, we can deduce that gold’s price will decline at some point due to low demand. Also, owing to its unknown supply, the price of gold is prone to sneaky inflations. With Bitcoin, it’s a different case. 

A well-known characteristic of Bitcoin is that its supply is capped at a known value – 21 million Bitcoins. So far, there are about 17 million Bitcoins in the market. This is to say that its supply will decrease over time, driving up its demand. Consequently, Bitcoin’s price will increase. Also, a fixed supply means that Bitcoin can’t bend to inflationary pressures associated with overproduction. Additionally, as modern commerce becomes more digitized, Bitcoin users will increase in equal measure, further increasing its value.

ii) Liquidity

When investing in an asset for the long-term, it implies that you won’t liquidate it anytime soon. However, it would be best if you considered the asset’s market liquidity. This is especially true when you need to raise a high amount of cash, and the only way is to sell part of your entire investment. 

For gold, it’s easy to exchange it for fiat cash by selling it to a local buyer. How fast and easy you exchange it depends on the amount of gold you have. Liquidating a few gold bars/jewelry is easier compared to liquidating a sizeable amount of gold, not to mention the risk of theft.  

Bitcoin, on the other hand, has a relatively high liquid market, making it easier to exchange any amount of Bitcoin for cash. The high liquidity is due to an increased number of exchanges with high trading volumes, in addition to other intermediary solutions such as Bitcoin ATMs and stablecoins. What’s better, Bitcoin can be liquidated in smaller amounts, of up to 8th decimal place, making it easy to liquidate just the right amount. Unfortunately, gold isn’t divisible into smaller amounts as those of Bitcoin’s magnitude. 

iii) Reliability

Suppose there’s one area that gold triumphs over Bitcoin, is in reliability. For more 2,000+ years, gold was used as a medium of exchange. Even after the advent of money, it has managed to maintain a relatively stable value.

At one point in the long history of gold, the US government, under President Franklin Roosevelt, implemented measures to prohibit and criminalize the possession of gold. Even though the gold prices plunged following these drastic measures, trading and possession of gold increased significantly in subsequent years. If the same crackdown were placed on Bitcoin usage, it would put the digital currency at the end of the bench. Even worse, a change in consumer preferences or the advent of a new technological disruption has the potential to stunt the growth of Bitcoin ultimately. As such, gold being a natural resource will consistently hold its value for more years compared to Bitcoin, which is a dynamic human-made system. 

Additionally, gold investment has proper regulation, while investment in Bitcoin is not regulated. This gives gold added legitimacy making it a preferred investment option. 

iv) Utility 

Gold has several uses besides being a store of value. It can be used on luxury items like jewelry and even in electronic devices where it acts as a conductor. In some cases, gold coins are also used in place of fiat cash. Due to these real-world use cases, it has a more readily available market, which adds to its liquidity. 

Bitcoin, having been in the market for just 11 years, is making quite plausible efforts to gain real-world use cases besides its position as a speculative investment. Infrastructures such as Merklized Abstract Syntax Trees ( MASTs), Taproot, and Schnoor signatures are pushing Bitcoin in the direction of real-world functionality in which it’ll contribute to the development of smart contracts. Moreover, it is anticipated that as Bitcoin usage increases in the incoming digital economy, its demand will rise relative to its mathematically metered supply. This will increase Bitcoin’s price and liquidity. 

Conclusion: which one is Better? 

Gold has been around for quite a long time and doesn’t show any clear sign of fading away from the market anytime soon. Its value will likely increase as various governments use it as a monetary reserve. The same can’t be said about Bitcoin since it’s still in its infancy stages. As we approach the digital economy, Bitcoin investors are bound to reap hugely. So, asking whether Bitcoin is a better long-term investment compared to gold isn’t entirely appropriate, as it is possible that the two can, and will, exist as complementary assets. As such, both Bitcoin and gold can fit in an investor’s long-term portfolio for diversification purposes. 

Categories
Cryptocurrencies

What’s EOS? A Beginner’s Guide

The first (Bitcoin) and second (Ethereum) generation blockchains each brought groundbreaking innovations in the blockchain space. Bitcoin pioneered the concept of blockchain and cryptocurrency – completely changing the face of finance. Ethereum took the idea of blockchain and expanded it to include smart contracts and decentralized applications. 

The first (Bitcoin) and second (Ethereum) generation blockchains each brought groundbreaking innovations in the blockchain space. Bitcoin pioneered the concept of blockchain and cryptocurrency – completely changing the face of finance. Ethereum took the idea of blockchain and expanded it to include smart contracts and decentralized applications. 

The first (Bitcoin) and second (Ethereum) generation blockchains each brought groundbreaking innovations in the blockchain space. Bitcoin pioneered the concept of blockchain and cryptocurrency – completely changing the face of finance. Ethereum took the idea of blockchain and expanded it to include smart contracts and decentralized applications. 

But even with those contributions, the two blockchains somehow couldn’t hack the test of scalability. Both Bitcoin and Ethereum’s transactions per second (at 7 and 15 respectively) pale in comparison with real-world systems that can handle millions of daily active users. 

EOS, a blockchain project by Chinese company Block.One wants to solve these problems. It aims at supporting thousands of transactions per second, as well as providing a free interactive environment for developers from all over the world to experiment with and create decentralized applications. Ambitious goals notwithstanding, EOS has not made it unscathed by a controversy or two.

Let’s dig into what EOS is all about.

Understanding EOS

EOS is a blockchain and cryptocurrency project that supports the creation of decentralized applications (DApps). The EOS team also wants to solve some of the problems burdening blockchains such as low transaction speeds and complexity of use that would lock out many developers. The EOS platform claims to support 1000+ transactions per second. For these reasons, it has been dubbed the ‘Ethereum Killer.’

EOS is the brainchild of Dan Larimer, a well-known figure in the crypto space and creator of successful blockchain platforms, Steemit and BitShares. EOS is known as just that: EOS. There doesn’t exist a full form of the name, and neither have the creators offered any. 

Block.one, the company behind EOS, raised a record-setting $4.1 billion in a year-long initial coin offering (ICO) that ran up until July 2017. This represents the biggest ICO to ever happen in the blockchain space to date. 

EOS’s Approach to Blockchain Applications

EOS believes in and seeks to achieve these requirements for blockchain: 

#1. Support Millions of Users 

If blockchain applications are to compete with businesses such as eBay, Amazon, Uber, and Facebook, blockchain tech would need to support tens of millions of users at any time. 

#2. Free Usage

If blockchain is to realize greater adoption, it needs to be free for users. Developers and businesses using the platform can then explore and implement other monetization strategies. 

#3. Flexibility and Bug Recovery

A blockchain platform should be flexible to allow businesses to upgrade their applications if and when needed. The platform should also be able to identify and root out bugs when they occur.

#4. Low Latency

Blockchain applications should relay high volumes of data with minimal delay (latency). Low latency would ideally be near real-time access to data. Anything less would frustrate users and render blockchain uncompetitive against legacy systems.

#5. Support Sequential Performance

Not all applications can be implemented with parallel algorithms. Applications like, let’s say, crypto exchanges require sufficient sequential performance to deal with high volumes. 

How Does EOS Work?

EOS’s product is essentially like that of Ethereum – offering a conducive environment for developers to create DApps. But EOS wants to focus on the most critical problems currently facing blockchain, such as high latency, scalability, flexibility, that have held back blockchain from achieving its full potential.

EOS endeavors to address these issues by supporting more scalability, flexibility, and ease of use. The developing team claims the network can support thousands of industrial-scale DApps without suffering performance bottlenecks by the use of sequential performance and “asynchronous communication” of data. 

Additionally, EOS achieves scalability by employing certain features. First, it’s ownership model promotes free usage for clients, and significantly reduces or eliminates transaction fees. Developers can also utilize various on-platform resources based on their stake in EOS. This means app developers are in a better position to predict their hosting costs, as well as design the best monetization strategies for their respective products. 

EOS: Delegated Proof of Stake (DPoS)

Dan Larimer conceptualized the delegated proof-of-stake of consensus mechanism. In DPoS, network delegates vote for a few representatives, who are then tasked with securing the network. These chosen delegates will also oversee the generation and verification of new blocks as well as their addiction to the blockchain.

In the context of EOS, 21 delegates (supernodes) are chosen from a pool of potential block producer candidates. Block producers are rewarded for their role in maintaining and securing the network. Rewards are granted on a per-block-basis and the block rewards system bankrolled by a 1% annual token inflation. 

Controversies Surrounding EOS

EOS has not been without a few controversies. It all started with the year-long ICO that raked in $4.1 billion. Some members of the community felt this was irresponsible, greedy, and shady. 

There have also been concerns that its delegated proof-of-stake consensus mechanism, in which there are only 21 producers, is too centralized. Blockchain testing company Whiteblock has also come out to say that the project is not genuinely censorship-resistant, saying “the foundation of the EOS system is built on a flawed model that is not truly decentralized.” 

The EOS network was also rigged with bug after bug, especially leading up to the main net release. This was very bewildering for many people who couldn’t fathom how this was possible with all that money collected. This led to the company establishing a bug bounty system that rewarded benevolent hackers who identified bugs in the system. Even after the project went live, bugs were still reported.

EOS.IO and EOS Tokens

The EOS network houses two tokens: EOS and EOS.IO. The role of EOS.IO is to manage functions in the ecosystem. It facilitates the vertical and horizontal scaling on the network. 

The EOS token allows developers to purchase a stake and obtain access to various natural processes to create and run DApps. Token holders who are not running DApps can rent their bandwidth to others who need it. And lastly, the EOS token can be used as a speculative investment and is available for purchase/trading on various exchanges. 

Economics of EOS

An inflation rate of 1% of EOS is used as block producer rewards. The inflation rate was adjusted from 5% in February 2020. As of Jul 25, 2020, EOS’s per-token value is $2.62, and it has a market cap of 2.4 billion, which makes it the 12th biggest cryptocurrency in the world. EOS’s 24-hour volume is $1, 294, 563, 760, its circulating supply is 934, 603, 711, and its total supply is 1, 021, 303, 722. EOS’s all-time high was $22.89 (Apr 29, 2018), while its all-time low was $. 0.480196 (Oct 23, 2017). 

Buying and Storing EOS

You can purchase EOS from a variety of exchanges, including Binance, OKEx, Huobi, HitBTC, DigiFinex, Bitrue, ConBene, Gate.io, Upbit, LATOKEN, and BitMex.

As for which wallets support EOS, you have several great options such as Ledger Nano, Guarda Wallet, Atomic Wallet, Trezor, Jaxx Liberty, and Infinito.

Final Thoughts

EOS proposes a brave new world of free blockchain transactions. If it can indeed support a TPS of 1000+, it will be a far cry from the single and double-digit TPS offered by Bitcoin and Ethereum, respectively. Could this combination of capabilities bury Ethereum? That remains to be seen.

Categories
Forex Fundamental Analysis

Imports by Category – Comprehending This Forex Fundamental Driver!

Introduction Understanding the portfolio of an economy’s exports and imports can help us track down the fundamental moves in currencies. Tracking imports and exports can help speculators ride the fundamental wave of currency value change in their favor. Imports and Exports are critical components of a nation’s trade balance. The deeper our understanding of these […]

Introduction Understanding the portfolio of an economy’s exports and imports can help us track down the fundamental moves in currencies. Tracking imports and exports can help speculators ride the fundamental wave of currency value change in their favor. Imports and Exports are critical components of a nation’s trade balance. The deeper our understanding of these […]

Introduction

Understanding the portfolio of an economy’s exports and imports can help us track down the fundamental moves in currencies. Tracking imports and exports can help speculators ride the fundamental wave of currency value change in their favor. Imports and Exports are critical components of a nation’s trade balance. The deeper our understanding of these dynamics, the better will be our understanding of macroeconomic trends.

What are Imports by Category?

Imports: They are the goods or services purchased that were produced outside the domestic country. Imports are purchased goods or services from foreign markets. Imports are required for many reasons and inherently constitute a nation’s trade balance. In importing, foreign goods or services come into the country while domestic currency goes out into the international market. A country in general imports when it is more efficiently produced or is cheaper in other countries. It may also import when the nation is unable to produce or meet the required demand.

A country will have numerous corporations that would have requirements for foreign goods or services, and hence the country’s valuation of imports would be in millions and billions. Hence, while importing millions and billions of domestic currency goes into foreign markets where currencies are exchanged for various reasons. Suppose a country wants to import goods or services from another country. It generally pays it in the exporting country’s currency. Hence, during export, currency comes into the country, and products go out, and during imports, the currency goes out, and products come in.

How can the Imports by Category numbers be used for analysis?

When a country’s imports exceed its exports, it is said to have a negative trade balance or trade deficit. Based on the geographical location, technological and business setups, different nations will have a competitive edge in different sectors. For instance, countries like Venezuela, Canada, or Middle Eastern countries are naturally sitting on abundant oil reserves. Hence, it will export oil to countries that do not have such reserves.

Companies may often require raw materials that are more cheaply available from other countries. For instance, companies in the United States might import electronic goods from China, which is cheaper. Hence, such companies may put up bulk order imports and trade takes place. Hence, what a country needs it may import and what it produces it can export.

The international market is decentralized and operates through free-market forces that keep economies in natural equilibrium. Currency exchanges can take place for genuine business transactions or speculative purposes also. When exchanges occur for purely business reasons, we call them fundamental moves in the currency pairs. These fundamental moves give currency their volatility along with speculation from investors.

Understanding a country’s Imports by the Category of products can help us track the fundamental moves. When significant transactions related to import or export takes place, it induces volatility into the currencies. During a considerable import, the international market is flooded with importing the country’s currency, and due to supply exceeding demand, the currency value falls.

On the other hand, when a country exports a massive volume of goods, the corresponding transaction would withdraw a large sum of that country’s currency out of the international market. When demand exceeds the supply, the currency value appreciates. Scarcity appreciates value and oversupply reduces value. Hence, a country must maintain a “balance” in its trades, i.e., the monetary value of all its imports and exports should ideally cancel off. In reality, it is not so, and this imbalance in different country’s trade balance gives currencies the volatility which traders are always looking to capture.

Understanding the economy’s portfolio of imports can help policymakers also in identifying exceeding dependencies in other countries. Too much reliance on foreign countries for goods or services is not suitable for the economy. The more a country is dependent on other countries, especially for basic needs like energy and food, the less it has control over its economic growth and currency valuation.

Countries that depend on fewer categories of imports and exports have more concentrated risk in terms of currency volatility. Countries like AUD and NZD show more volatility in general than currencies like USD and EUR because of the diverse portfolio of exports and imports of the latter currencies.

Impact on Currency

Imports by Category of goods or services is not an economic indicator, but it is necessary to facilitate an understanding of international trade balance amongst currencies. It directly does not impact any currency volatility but is a requisite to base trade analysis amongst currency pairs. Changes in imports by Category does not frequently change as most trade agreements are made for multiple years on end. Any changes in trade composition in terms of Category will be priced through leading economic indicators and news releases.

Economic Reports

In the United States, the Census Bureau tracks the import and export data categorized by trade partners and products. The lists are ranked based on trade volume, deficits, and surpluses, etc. Monthly and year-to-date data are two types listed for all its trade partners.

Sources of Imports by Category

We can find the Census Bureau data on its Top Trading Partners. We can find the percentage of statistics consolidated for most countries for imports by Category on Trading Economics.

Imports by Category News Release – Effect on the Price Charts

Both Exports and Imports are fundamental indicators that vaguely impact the forex market. The Imports report is calculated by considering the Imports by Category and Imports by Country. Reliable results are obtained when they are combined. Thus, to analyze the impact of Imports by Category, we shall be taking into account the Imports number as well.

Level of Impact

The Imports by Category report released by the Australian Bureau of Statistic has minimum to negligible impact on the value of the Australian dollar.

Imports data – AUD

The Imports report published on July 02, 2020, stood negative 6%, beating the previous number -10%. Even though the numbers are not up to the mark, they have recovered to a great extent from the previous month’s readings.

From the below chart ranging from 2016 to 2020, the Australian Imports hit a new low to -10% for the May report. However, it shot up 4% higher the following month.

Imports – Australia

Below is the Imports by Category for the top five categories in imports. We can see that four out of five categories saw a drop from the previous report.

AUDUSD – Before the Announcement

Focusing on the left side of the chart, we can see that the market is in an uptrend and is currently consolidating.

AUDUSD – After the Announcement

On the day of the report release, the impact in the volatility of the currency was insignificant. However, later through the month, the Australian dollar got stronger and continued its uptrend. This indicates that, despite the disappointing number overall, the AUD saw strength as the number beat the previous month report by a significant margin.

AUDCAD – Before the Announcement

Before the news released, the market was in a range for an entire month.

AUDCAD – After the Announcement

On the day of the announcement, the market tried to inch above the top of the range but failed. However, in the subsequent trading sessions, volatility picked up, and the price made a higher high. Hence, we can, to an extent, conclude that the AUD had a positive impact on the Imports by Category numbers.

AUDJPY – Before the Announcement

In the below chart of AUD/JPY on the 4H time frame, we can see that the market is in a strong uptrend. It made a high to around 77.000. The prices were in a pullback phase, the whole month of June.

AUDJPY – After the Announcement

On the day of the report announcement, the market barely had any impact in terms of volatility. That said, in the following weeks, the price rallied up to the previous high of 77.000, indicating AUD strength.

Therefore, we can conclude that the Australian dollar had a feeble effect during the news release day but did have a positive impact on the report in the subsequent trading sessions. Cheers!

Categories
Forex Assets

Analyzing the Trading Costs on ‘NZD/CZK’

Introduction NZD/CZK is the abbreviation for the Euro Area’s Euro against the Czech Koruna. This pair is considered an exotic-cross currency pair. Here, the NZD is the base (first) currency, and the CZK is the quote (second) currency. NDZ is the official currency used in New Zealand, while CZK is the native currency of the […]

Introduction NZD/CZK is the abbreviation for the Euro Area’s Euro against the Czech Koruna. This pair is considered an exotic-cross currency pair. Here, the NZD is the base (first) currency, and the CZK is the quote (second) currency. NDZ is the official currency used in New Zealand, while CZK is the native currency of the […]

Introduction

NZD/CZK is the abbreviation for the Euro Area’s Euro against the Czech Koruna. This pair is considered an exotic-cross currency pair. Here, the NZD is the base (first) currency, and the CZK is the quote (second) currency. NDZ is the official currency used in New Zealand, while CZK is the native currency of the Czech Republic.

Understanding NZD/CZK

The price of this pair in the foreign exchange market defines the value of CZK equivalent to one NZD. It is quoted as 1 NZD per X CZK. So, if the value of this pair is 14.8124, these many Korunas are required to purchase one NZD.

Spread

Spread is the mathematical difference between the bid and the asking price offered by the broker. This value is distinct in the ECN account model and STP account model. An approximate value for NZD/CZK pair is given below.

ECN: 43 pips | STP: 48 pips

Fees

The fee is the price/compensation that one pays for the trade. There are no charges on STP accounts, but a few additional pips are levied on ECN accounts.

Slippage

Slippage is a variation between the value proposed by the trader, and the trader indeed received from the broker.

Trading Range in NZD/CZK

The tabular interpretation of the pip movement of a currency pair in separate timeframes is called as the trading range is the. These values are helpful in influencing the profit that can be produced from a trade before-hand. To uncover the value, you must multiply the below volatility price with the pip value of this pair.

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.

NZD/CZK Cost as a Percent of the Trading Range

Trading Range is the interpretation of the total price variation of trades for distinct timeframes and volatilities. The values are achieved by discovering the ratio amongst the total price and the volatility value; it is expressed as a percentage.

ECN Model Account

Spread = 43 | Slippage = 5 |Trading fee = 8

Total cost = Slippage + Spread + Trading Fee = 3 + 43 + 8 = 56 

 

STP Model Account

Spread = 48 | Slippage = 5 | Trading fee = 0

Total cost = Slippage + Spread + Trading Fee = 5 + 48 + 0 = 53

Trading the NZD/CZK

The bigger the percentage values, the higher is the price on the trade. From the preceding tables, we can see that the values are sizeable in the min column and relatively less significant in the maximum column. This means that the prices are high when the volatility of the market is low.

It is neither suitable to trade when the market’s volatility is elevated nor when the costs are high. To balance out between both these aspects, it is perfect to trade when the volatility of the pair is in the array of the average values.

Additionally, to decrease your costs even beyond, you may place trades using limit orders as a substitute for market orders. In executing so, the slippage will not be involved in the computation of the total costs. And this will put down the cost of the trades by a sizeable number. An example of the same is given below.

STP Model Account (Using Limit Orders)

Spread = 48 | Slippage = 0 |Trading fee = 0

Total cost = Slippage + Spread + Trading Fee = 0 + 48 + 0 = 48

Categories
Forex Course

142. Different Types Of Breakouts & How To Trade them?

Introduction As discussed in the previous lesson, a breakout is the price action that goes above or below a significant level on the price chart. As a breakout trader, we must enter a long position after the price breaks above the resistance, and enter a short position after a price action breaks below the support. […]

Introduction As discussed in the previous lesson, a breakout is the price action that goes above or below a significant level on the price chart. As a breakout trader, we must enter a long position after the price breaks above the resistance, and enter a short position after a price action breaks below the support. […]

Introduction

As discussed in the previous lesson, a breakout is the price action that goes above or below a significant level on the price chart. As a breakout trader, we must enter a long position after the price breaks above the resistance, and enter a short position after a price action breaks below the support. After the breakout, the volatility of the price tends to increase as most of the traders prefer entering the market to ride the upcoming trend.

There are different types of breakouts, such as channel breakout, head and shoulder breakout, triangle breakout, flag pattern breakout, etc. In this lesson, we have shared a few of the breakout strategies that you can use to trade the Forex market effectively.

Resistance Breakout

The below price chart represents a Resistance breakout on the NZD/JPY Forex pair.

It is evident that the market was quite volatile, and after the breakout, it just goes down. So during the breakout, there was no entry. The price action then came back to the resistance area, and we ended up going short in this pair. The take-profit was placed at the most recent lower-low. We chose the most recent lower low because both the parties were strong, and we expected another buying push. You can go for a brand new lower low or higher high as well. Always place the stops just above the support area.

Support Line Breakout

The below charts represent our buy entry in the NZD/JPY Forex pair.

As you can see below, we took a buy entry when the price action broke above the significant support area. Right after our entry, the market just blasted to the north, printing a brand new higher high. The reason why the market moved so much is because of the overall buying trend being super strong.

It is a common perception that support and resistance are just significant levels, but they do not provide good trading opportunities, but this is not true. If we filter out all the bad signals and only trade the S/R signals when the price action is strong enough, those trades often provide an excellent risk to reward ratio trades.

Swing High Breakout

The image below represents a swing high breakout on the daily chart.

  

Swing high Forex strategy is specially developed for the higher timeframe traders. We look for the breakout of the most recent higher high. Most of the time, the higher timeframes takes nearly 2 to 3 months for a complete pullback. So to break the most recent higher high, the price action needs a lot of power in order to print a new higher high.

The moment we get a new higher high, it indicates the strength of the buyers, and we must expect the formation of a brand new higher high. In the below image, we took the trade at the breakout of the higher high, and trade it took nearly two months to hit the take profit.

 

Swing Low Breakout

The image below represents the breakout of the swing low on the AUDCAD Forex pair.

As you can see, we took a sell-entry in this pair when the price action broke the most recent lower low. After our entry, price action didn’t blast to the north. Instead, it goes sideways for a couple of months and finally printed a brand new lower low.

Flag Pattern Breakout

The image below represents the price breaking the Flag pattern in the EUR/CAD Forex pair.

The Flag pattern is the most common and widely used to trade potential breakouts. Basically, the appearance of Flag indicates a trending market situation, and a breakout of the pullback will be a great idea to go for the brand new higher high. As we can see, after our entry at breakout, price action went north and prints a brand new higher high.

Channel Breakout

The image below represents a channel breakout in the GBPUSD Forex pair.

We can see the price struggling to make any significant moves and hence formed a channel. After the buy-side breakout, the price went in the north direction, forming a brand new higher high. While trading channel breakouts, it is good enough to place the stops below the breakout line. Since the breakout line acts as a dynamic support and resistance level, the price it needs an immense amount of power to break that level. So placing our SL-order there, is a great idea.

That’s about different types of breakouts and how to trade them. If you have any questions, please let us know in the comments below. Don’t forget to take the quiz before you go!

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