July 25, 2021

Stock & Crypto Trading

Cryptocurrency has not only given the fastest way to transfer Stock & Crypto Trading the money, but also a new entity to trade with and to earn money apart from the stocks and other commodities. While you can directly sell and buy Bitcoin, you can also use Bitcoin trading exchanges to continue your trades in cryptocurrency. There are a lot of exchanges where trading Bitcoin is safe and secured and also the customers are facilitated with many extended services. Being a cryptocurrency investor or trader you can choose any of the exchanges for your comfort. It is however recommended to sneak peek into the reviews of some before opting out the one. Below is a brief review of top Bitcoin exchanges around the world.

CoinBase: It is probably one of the most reputed and largest Bitcoin trading exchanges with dual facility trading directly and through the wallet. CoinBase was founded in the year 2012 as through venture finding of Y-Combinator and since then it has rapidly grown. It has many lucrative services like multiple options to deposit and withdraw cash, money transfers between two CoinBase are instantaneous, Wallet facilities with multiple signature options for more secure transfers, Bitcoin deposits are insured for any loss etc. CoinBase has the wide variety of payment partners of Europe and US, who seamlessly allow the transactions to be carried on through them. It has relatively low transactions fees and offers Bitcoin trade along with a large number of Altcoin trading as well.

CEX.IO: One of the oldest and reputed exchanges which was started in 2013, London as Bitcoin Trading exchange and also as cloud mining facilitator. Later its mining power grew such enormously that it held nearly half of the network mining capacities; however, it has been now closed. “CEX.IO” allows customers to expand to the much larger amount of Bitcoin trades, and it has the facility to make available the Bitcoin at requested price instantly. However, for this exchange charges a bit high exchange amount, yet this is compensated for the security and facilities of allowing multi-currency transaction (Dollar, Euro, and Ruble) to buy Bitcoin.

Bitfinex: It is one of the most advanced trading exchanges and it particularly suited to the experienced crypto-currency traders. With high liquidity for the Ethereum as well as Bitcoin, this exchange has better options like leveraging, margin funding and multiple order trading. Apart from this Bitfinex offers the features of customizable GUI, many orders types, like limit, stop, trailing stop, market etc. This exchange also provides about 50 currency pairs that can be traded and with easy withdrawals for all. One of the largest exchanges in terms of volume traded Bitfinex offers pseudonymity for trades and only for some of the services it requires identifications. The only drawback with this exchange is that it does not support the buying of Bitcoin or any other altcoin through fiat transactions.

Bitstamp: It was founded in 2011 and is the oldest of exchanges who offer cryptocurrency and Bitcoin trades. The most respected because despite being oldest it has never been under security threat and tills recently. Bitstamp currently supports four currencies Bitcoin, Ethereum, Litecoin and Ripple and is available with the mobile app as well, apart from website to trade. It has lovely support for the European users or the traders having their account in Euro Banks. The security is advanced and of cold storage type, which means the coins are stored offline.So you can say it is wholly not possible for any hacker to infiltrate. Last of all its complex user interface suggests that it is not for the novice user but for professionals and it offers relative low transactions fees.

Kraken: It is one of the largest Bitcoin trading exchanges in terms of the liquidity, euro crypto trading volumes and trading figures of Canadian Dollars, USD and Yen. Kraken is most respected exchanges steered through the turmoil of cryptocurrency trades and has managed to keep the amounts of customer safe irrespective of the other exchanges being hacked at the same time. With 14+ cryptocurrency trading facilities, the user can deposit the fiat as well as cryptocurrency along with the similar capacity for withdrawals. However, it is not suited for beginners yet it has better security features and low transaction fees relative to CoinBase. Most important factor for Kraken is that it is trusted in the community and has been first to display the volumes and prices on Bloomberg Terminal.

Here is a question that comes up often: How do I choose which crypto currency to invest in – aren’t they all the same?

There is no doubt that Bitcoin has captured the lion’s share of the crypto currency (CC) market, and that is largely due to its FAME. This phenomenon is much like what is happening in national politics around the world, where a candidate captures the majority of votes based on FAME, rather than any proven abilities or qualifications to govern a nation. Bitcoin is the pioneer in this market space and continues to garner almost all of the market headlines. This FAME does not mean that it is perfect for the job, and it is fairly well known that Bitcoin has limitations and problems that need to be resolved, however, there is disagreement in the Bitcoin world on how best to resolve the problems. As the problems fester, there is ongoing opportunity for developers to initiate new coins that address particular situations, and thus distinguish themselves from the approximately 1300 other coins in this market space. Let’s look at two Bitcoin rivals and explore how they differ from Bitcoin, and from each other:

Ethereum (ETH) – The Ethereum coin is known as ETHER. The main difference from Bitcoin is that Ethereum uses “smart contracts” which are account holding objects on the Ethereum blockchain. Smart Contracts are defined by their creators and they can interact with other contracts, make decisions, store data, and send ETHER to others. The execution and services they offer are provided by the Ethereum network, all of which is beyond what the Bitcoin or any other blockchain network can do. Smart Contracts can act as your autonomous agent, obeying your instructions and rules for spending currency and initiating other transactions on the Ethereum network.

Ripple (XRP) – This coin and the Ripple network also have unique features that make it much more than just a digital currency like Bitcoin. Ripple has developed the Ripple Transaction Protocol (RTXP), a powerful financial tool that allows exchanges on the Ripple network to transfer funds quickly and efficiently. The basic idea is to place money in “gateways” where only those who know the password can unlock the funds. For financial institutions this opens up huge possibilities, as it simplifies cross-border payments, reduces costs, and provides transparency and security. This is all done with creative and intelligent use of blockchain technology.

The mainstream media is covering this market with breaking news stories almost every day, however, there is little depth to their stories… they are mostly just dramatic headlines.

The Wild West show continues…

The 5 stocks crypto/blockchain picks are up an average of 109% since December 11/17. The wild swings continue with daily gyrations. Yesterday we had South Korea and China the latest to try to shoot down the boom in cryptocurrencies.

On Thursday, South Korea’s justice minister, Park Sang-ki, sent global bitcoin prices temporarily plummeting and virtual coin markets into turmoil when he reportedly said regulators were preparing legislation to ban cryptocurrency trading. Later that same day, the South Korea Ministry of Strategy and Finance, one of the main member agencies of the South Korean government’s cryptocurrency regulation task force, came out and said that their department does not agree with the premature statement of the Ministry of Justice about a potential cryptocurrency trading ban.

While the South Korean government says cryptocurrency trading is nothing more than gambling, and they are worried that the industry will leave many citizens in the poor house, their real concern is a loss of tax revenue. This is the same concern every government has.

China has grown into one of the world’s biggest sources of cryptocurrency mining, but now the government is rumoured to be looking into regulating the electric power used by the mining computers. Over 80% of the electrical power to mine Bitcoin today comes from China. By shutting down miners, the government would make it harder for Bitcoin users to verify transactions. Mining operations will move to other places, but China is particularly attractive due to very low electricity and land costs. If China follows through with this threat, there will be a temporary loss of mining capacity, which would result in Bitcoin users seeing longer timers and higher costs for transaction verification.

This wild ride will continue, and much like the internet boom, we will see some big winners, and eventually, some big losers. Also, similar to the internet boom, or the uranium boom, it is those who get in early who will prosper, while the mass investors always show up at the end, buying in at the top.

This year we can observe that cryptocurrencies tend to move up and down even by 15% of value on a daily basis. Such changes of price are known as a volatility. But what if… this is totally normal and sudden changes are one of the characteristics of the cryptocurrencies allowing you to make a good profits?

First of all, the cryptocurrencies made it to the mainstream very recently, therefore all the news regarding them and rumors are “hot”. After each statement of government officials about possibly regulating or banning the cryptocurrency market we observe huge price movements.

Secondly the nature of cryptocurrencies is more like a “store of value” (like gold had been in the past) – many investors consider these as backup investment option to stocks, physical assets like gold and fiat (traditional) currencies. The speed of transfer has as well an influence upon volatility of the cryptocurrency. With the fastest ones, the transfer takes even just couple of seconds (up to a minute), what makes them excellent asset for short term trading, if currently there is no good trend on other types of assets.

What everyone should bear in mind – that speed goes as well for the lifespan trends on crypto currencies. While on regular markets trends might last months or even years – here it takes place within even days or hours.

This leads us to the next point – although we are speaking about a market worth hundreds of billions of US dollars, it is still very small amount in comparison with daily trading volume comparing to traditional currency market or stocks. Therefore a single investor making 100 million transaction on stock market will not cause huge price change, but on scale of crypto currency market this is a significant and noticeable transaction.

As crypto currencies are digital assets, they are subject to technical and software updates of cryptocurrencies features or expanding blockchain collaboration, which make it more attractive to the potential investors (like activation of SegWit basically caused value of Bitcoin to be doubled).

These elements combined are the reasons why we are observing such huge price changes in price of cryptocurrencies within couple of hours, days, weeks etc.

But answering the question from the first paragraph – one of the classic rules of trading is to buy cheap, sell high – therefore having short but strong trends each day (instead of way weaker ones lasting weeks or months like on stocks) gives much more chances to make a decent profit if used properly.

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