Disctric0x is a network of decentralized communities and marketplaces, and where each ‘district’ is a decentralized entity on the district0x Network. In other words, District0x allows anyone to create a network of communities (or organizations) with a focus on governance, cooperation and decision making being decentralized. District0x is an open-source software project, and as such, it does not seek to gain profit, but rather focuses all of its attention towards building software that enables development and governance of marketplaces that are powered by the community.
Fundamental analysis is a methodology that was first conceived by the late American Investor, Benjamin Graham. It was then later popularized by Warren Buffet, currently one of the world’s more famous value investors. Fundamental analysis is a concept that is most often applied to companies, but it can just as easily apply to digital assets such as Bitcoin. Instead of metrics such as the P/E ratio, factors such as the following can be used as part of any cryptocurrency related fundamentals analysis:
As well as buying crypto using fiat currency, a centralized exchange is somewhere you can store funds and exchange the likes of Bitcoin for other coins and tokens. Examples include Coinbase, Kraken and Binance. Although there is less risk that your funds will disappear if you forget a password or your private key, it’s important to go with reputable providers who have high security standards. That’s because there have been cases where millions of dollars have disappeared from these exchanges overnight through hacking.
While all features and services of the CryptoExchange platform are free of charge, cryptocurrency transfers from or to an external cryptocurrency wallet will cost the users 0.2% of the transaction and a minimum of ฿ 0.0007 (BTC), 0.007 (ETH), Ʀ 0.03 (XRP), Ł 0.0015 (LTC), Đ 0.01 (DASH) for the main Cryptocurrencies, when transferring cryptocurrency to an external wallet. Other than this, exchanging crypto to crypto and fiat to crypto will cost the users 1% and 5% of the transaction respectively.
We will describe these cryptocurrency trading strategies for you here, and the first ones we’ll review are the technical strategies. With technical trading, you have two basic strategies to use for the trading of cryptocurrency. You’re either going to trade with the trend/momentum of the current market, or you’ll be trading for mean reversion. Mean reversion is when you think the spring has been pulled too tight, and your waiting for that spring to snap back to an equilibrium point.
Binance are relatively new on the block but are poised to become the biggest digital asset exchange service available. Crucially, Binance are likely to eventually limit the number of users they take on, much like some of the other exchanges, so I recommend opening a Binance account today even if you don’t use it anytime soon – then you at least have the option.
Consider Diversifying. With the above advice in mind, there is nothing worse than getting frustrated with BTC, moving to ETH / alts and missing a BTC price spike, then moving back into BTC and missing the ETH spike. This is very easy to do given the rotation, and the natural urge to “FOMO buy.” If you have some of your funds in all the coins you trade, you’ll avoid missing out on a unicorn (a term one can use to describe an odd event, like a giant price spike in a short amount of time). If you diversify, especially when prices are low across the board, you’ll avoid some of the urge to jump into one coin mid or late into a run and out of a coin just before it goes on its run. In other words, although it isn’t the most profitable tactic, diversifying is good for one’s sanity in a number of important ways.
Let’s discuss the correct way of using the order book. A coin’s value is determined by the last executed transaction, at the junction between buyers and sellers, or according to the supply and demand forces. Those supply and demand commands are arranged in a table, better known as the order book. In crypto, it’s all about volatility. Thus, and following the previous tips given in our crypto trading article, when you enter a position it is recommended that you set the sell level to take profits. Alternatively, while aspiring to make it simultaneously, set a stop loss to minimize losses. But how will we know exactly where to place these commands? To identify both resistance and support areas, we start by analyzing the graph at the most basic level. A beginner’s technical analysis article will assist with this task. We identify points where we want to take profit (resistance levels) and simultaneously identify support levels. By referring to the order book we will find the optimal levels at which we will actually place these commands. Note that if support levels break down it is time to cut the losses.
So-called “hot wallets” make accessing your crypto easy – allowing you to transfer funds and complete trades quickly and with ease. Many providers now offer mobile apps so this can be done on the move. Meanwhile, “cold wallets” are stored offline – commonly on USB sticks – with some people even writing down their private keys on paper. The latter can work well if you’re looking to save crypto for a rainy day.
Arbitrage is the process of buying then immediately selling something for a profit. This is possible when there are price differences between different marketplaces. For example, buying certain DVDs at your local store for $10 only to sell them online for $20 each, doubling your money in the process. In our case, it’s buying cryptocurrency on one exchange and then immediately selling it at another. Arbitrage is based on exploiting market inefficiencies and is popular in all kinds of markets, including the stock and FOREX markets.
Mean reversion is where the investor assumes that the price of a coin will remain at an average price level over time. Upward trends, and downwards trends, are expected to revert back to the average over the long haul. This means you need to know the charts well and be able to figure out what the average price for the cryptocurrency you intend to trade in. When the coins are less than the estimated average that is when one wants to make a few purchases. When the price is higher than the average it is expected to drop back down to the mean price and that would be the time to sell. Of course, figuring out just when to sell is the trick, and that is where the gamble comes in.
Bitcoin seemed to be heading for its demise last night before it broke back above resistance and retested the channel bottom trendline. We do have a trendline (red), which has been supporting this recent rise back up after the big drop and as long as we stay above it, bulls can remain hopeful. This pop has caused MACD to crossover bullish and turned the histo ...
Cardano (ADA) is a fully open-source, decentralized, public blockchain and cryptocurrency. Cardano is very similar to Ethereum, and the team wants to build on that. Cardano aims to operate a global smart-contract platform which will deliver much more advanced features compared to its competitors. Loads of existing investors are excited because Cardano is the first blockchain founded on scientific philosophy, and also the very first provably secure proof of stake algorithm.
On top of the possibility of complicated reporting procedures, new regulations can also impact your tax obligations. The U.S, the ‘property’ ruling means your earnings will now be deemed as capital gains tax (15%), instead of normal income tax (up to 25%). Each countries cryptocurrency tax requirements are different, and many will change as they adapt to the evolving market. Before you start trading, do your homework and find out what type of tax you’ll pay and how much.
The basic idea of this strategy is, “get out until the carnage is over.” When the crypto-market is under fire, non-crypto assets will appreciate in value compared to cryptocurrencies. Moving some of your portfolio over to fiat currencies (or something else) will protect it from a declining cryptocurrency market. This is similar to how investors buy gold as a safe haven in times of stock market turbulence. When the storm is over, you can buy back your assets at a lower price. It’s always a good idea to keep a diversified portfolio.
The Verge (XVG) technology revolves around providing an incredibly safe, private, and fast digital payment transactions – on an everyday basis. It offers all individuals and businesses a fast, efficient, and a decentralized option to make and receive direct payments in an average 5-second window per transaction. It runs on open-source technology, it is not a private company, and it isn’t funded by pre-mined coins. This is one of the reasons why people are so excited about it, all of its development, marketing, and other endeavors are completely done by the community – for the community.
Know when to take a loss. Nothing is less fun than taking a loss, but if you are going short in BTC and you haven’t set a stop, sometimes it makes more sense to take a loss and wait for a better price than it does to suddenly start going long. The best way to know when to hold ’em and or fold ’em is some basic TA on longer term charts (I will use things like MACD on 6hr – 12hr – 1 day candles to confirm trends) paired with unwavering discipline.
Accept that coins can go to zero, and even good coins can lose up to 80% of their value (especially against BTC). There are many coins that didn’t make it to 2018 that were once highly valued and popular. Meanwhile, even some giants of today like ETH and XRP have seen their value in BTC prices drop to depressing levels. You should prepare for this mentally and have a strategy that factors this in. If you buy the dip in ETH from .15 down, .08 may look like an excellent price, but you have to be ready for .02. ETH holders who didn’t prepare for this had a depressing June 2017 – December 2017. Heed my warning, that new coin doesn’t have to moon twice, it can go to literal zero, and even those that will moon again… they can have long seasons of stagnation in between (where they lose value against BTC for months on end). See the Crypto Graveyard and please look at the historic charts of major alts like XRP (the gap between moons is real and some coins really don’t make it).
Think of this as your guide to day trading cryptocurrency and you’ll avoid most of the hurdles many traders fall down at. When choosing your broker and platform, consider ease of use, security and their fee structure. There are a number of strategies you can use for trading cryptocurrency in 2017. Whichever one you opt for, make sure technical analysis and the news play important roles. Finally, keep aware of regional differences in rules and taxes, you don’t want to lose profit to unforeseen regulations.
Don’t be greedy. No one ever lost money taking a profit. As a coin begins to grow, the greed inside us grows along with it. If a coin increases by 30%, why not consider taking profit? Even if goals are set to 40% or 50%, you should at least pull out some of the profit on the way up in case a coin doesn’t reach the goal. If you wait too long or try to get out at a higher point, you risk losing profit you already earned or even turning that profit into a loss. Get into the habit of taking profits and scouting for re-entry if you want to continue reaping potential profits.