Margin Trading Tips in Crypto

Margin Trading is a form of trade that brings extremely high profits but is also very risky. In the crypto market, this type of transaction is even more dangerous. But how to minimize the risk and win when trading cryptocurrency margin?

Start small

If you are new to Margin Trading, you should start small and be ready to lose. This way you can be more confident in trading to focus on practice, instead of trying to maximize profits.

Also, practice with low leverage to get familiar with how margin trading works. Repeat this until you have mastered and successfully executed a few small deals. You can slowly start to recharge and repeat the strategies that you have used successfully in practice.

Understand interest rates in margin trading

Even though the transaction is profitable, you can still lose money, the problem at this time lies in the interest rate of the loan. All loans have interest or fees, learn to understand interest rates. This gives you a higher chance of success as a professional investor.

Be careful with events and news

Events and news that happen have the potential to have a big impact on the Crypto market. Such as decisions about Bitcoin ETFs, new government regulation, or a hacked exchange. All of which can lead to a significant decrease or increase in the market price.

Always keep an eye on and regularly follow all news related to the market. This is how you can be proactive in risk management and investment strategy.

Pay attention to liquidation prices

The liquidation price is the price at which your position will be liquidated for the complete loss of your own position balance. This means that when the market price hits the liquidation price, the exchange system will immediately liquidate all your money on that order and you lose money. Therefore, you must always pay attention to liquidation prices in transactions.

Intentional price manipulation can affect your position. The main goal of these acts is to eliminate other positions and take liquidity.

The chart above is an example showing evidence of Bitcoin price manipulation. Bitcoin price (circled in yellow) increased to $ 1,200 to remove the short position. After that, the price dropped to around $ 850 to remove the long position.

Always use stop loss

Stop loss is an important risk management tool in margin trading. It helps you prevent a trade loss in case your prediction is wrong.

Be careful to set your stop loss carefully, if it is too close to the buy price, you may lose your opportunity when the market moves in a favorable direction with your position. If you set your stop loss too far, you will suffer a significantly more loss.

Order to buy from time to time

Instead of placing multiple orders at the same time, you should execute them at different times. This method helps to reduce your risk as you can make adjustments if the market has a bad trend. The advice is to execute long / short orders from time to time in small quantities.

Notice support and resistance levels

During margin trading, small fluctuations will cause the price to reach short-term support and resistance levels. These developments occurred over many timeframes. So you have to understand basic technical analysis in order to be able to administer them.

Always have a backup

As a trader, you should never risk betting all your money on a single trade. This can cause you to end your margin trading journey very quickly. Always make sure you have some backup when needed.

Don’t deviate from the original plan

The best investors like Warren Buffett make decisions based on company principles. This is a strategy he has worked with for decades and never differs. Likewise, you should outline a strategy that has proven to be effective. Always stick to this strategy and manage your emotions so you don’t go wrong.

Never trade on speculation

Making trades based solely on personal speculation without research or analysis will be no different than gambling. You can get it right once or twice. But in the long run, this is the action that leads to heavy losses to your portfolio.

Always keep track of transactions

Margin Trading is not like passive investing. You can’t just put your money in and then wait to get it back. Conversely, not investing time in trading can lead to significant losses.

Keep cryptocurrencies safe at all times

In order to trade margin, you must deposit cryptocurrency on an exchange to use this function. Instead of storing all the money on an exchange, you should just leave the amount you need to trade on it. This significantly reduces the risk to the asset, especially in the event of an exchange being hacked. Also, make sure you have some spare money available to keep investing.

Introduce potential NFT projects

NFT stands for Non-Fungible Token, a unique token used to identify goods and assets. Because of this unique nature, it can become an authentication tool in the internet world, and the potential of this technology is immense. However, in the present, it is difficult to exploit them all. Only a few areas with the right specificity could quickly apply this technology. In this article, let us explore the potential of NFT.

Potential of NFT

Game

Game is one of the leading areas in the NFT. By playing video games players can earn valuable items. Tokens will be authenticated and identified against all of the game participant’s items.

Users can take advantage of their gaming prowess and generate real income. Items can be sold and purchased weapons, vehicles, characters. It depends on the game and there are different rules and gameplay.

In addition, NFT in the game world allows players to easily trade items with each other. This is a rare function on the market.

Art

Before blockchain technology, verifying works of art gave artists a headache. With blockchain, every artwork when transacting will be counterfeited, ensuring neither side can change the details of the artwork. This enhances the transparency of the origin and the trust between the buyer and the seller.

Identity management

Identity management is an indispensable need of governments. With the need to securely store digital data increasingly in the world, NFT can hold unique information about a particular asset. This could include any kind of data such as medical history, property details, personal records, education level, and financial information.

Communication and content creation

In the field of media and content creation, piracy, copyright and plagiarism are significant challenges. It affects the growth of the media and entertainment industry. NFT could use blockchain technology to prevent such fraud. This makes reproducing ideas and creative work impossible.

Real estate

The traditional real estate industry has a very cumbersome procedure. With the NFT, the entire process will be digitized. Assets can be encrypted on the blockchain network and divided into tokens. These tokens are tradable and easily exchangeable on secondary markets. This eliminates the role of middlemen such as brokers, brokers, banks, and agents. It also prevents any disputes over property ownership between any party.

Potential NFT projects

CryptoKitties

This is a game built on the Ethereum platform. It allows users to collect and breed virtual cats. These digital cats are distinguished in appearance and traits. It is considered their “attribute”. Given the nature of these tokens, each digital cat represented by the NFT cannot be copied, destroyed, or taken away.

To start breeding digital cats, users need to deposit ETH into the game’s official wallet, Dapper. There are two ways to breed a new kitten. One is to breed two of your own kittens, if you do not have two, you can use Public Sire. Second, buy the first kittens on the market.

CryptoKitties was the first NFT protocol to get major attention in late 2017. Since users can breed rare cats and resell new kittens for a profit, the game has attracted considerable attention. Currently the “boom period” of CryptoKitties has passed, but the game still retains a strong attraction in the NFT space.

Decentraland

Backed by Ethereum, Decentraland is a decentralized virtual world. It allows users to buy and sell real estate and participate in the process of building virtual worlds.

In the game system Decentraland requires both fungible token and non fungible token. MANA is the digital currency used on the Decentraland market. MANAs can be purchased from any supported cryptocurrency exchange. In addition to the Decentraland marketplace, users can purchase items supported on the NFT marketplace like OpenSea.

Decentraland calls on users to participate in the administrative process. Users can vote on administrative recommendations and their voting rights come from a variety of sources. Maybe for example MANA, land, resources in the game. Topics are voted on regarding new features, transaction fees, equipment in the Decentraland world.

Rarible

Rarible is an NFT marketplace founded by Alexander Salnikov and Alexei Falin in January 2020. It specializes in buying and selling rare digital collections. Rarible supports a wide variety of digital assets. Some examples are: digital art, domain names, DeFi insurance policies, meme and metaverses.

In use, users can upload collections in any supported digital format (graphics, sound). Then add a description and pricing details. As a next step, users need to connect to their Ethereum wallet to approve transactions.

Rarible has gained widespread popularity in the crypto community due to its token. It is RARI. The launch of RARI is the first step towards Rarible’s ultimate goal. That is the establishment of the decentralized organization Rarible. As RARI holders, users can submit and vote on system upgrade proposals. These include decisions regarding Rarible’s transaction fees and the addition of new features. Similar to Decentraland.

SuperRare

SuperRare is a digital arts marketplace founded in 2017 by John Crain. At SuperRare, artists can code and monetize unique artwork. Every piece of art on SuperRare is represented by an ERC-721 token.

When artists release authenticated digital artwork on SuperRare, their artwork gets certified on the Ethereum network. This prevents tampering and provides historical origins. Additionally, artists can showcase their artwork in SuperRare using virtual reality galleries.

Art collectors, on the other hand, can purchase artwork on SuperRare. Also resell NFT on secondary markets, such as OpenSea. All transactions on SuperRare are done using Ethereum. Buyers then need to pay a 3% transaction fee on all purchases.

Similar to traditional art galleries, SuperRare also charges fees from artists. For primary sales, artists receive 85% of sales, while SuperRare holds 15%. For extra sales, the artists receive 10% of the royalties.

Ethereum Name Service

Founded by the Ethereum Foundation in May 2017, Ethereum Name Services is an open, decentralized, and scalable naming system based on Ethereum. “.ETH” domains are unique and cannot be changed. It is represented by ERC-721 compliant NFTs and they are available to buy and trade on NFT markets like OpenSea and Rarible.

Since these domains comply with the ERC-721 NFT standard, they can also seamlessly connect to NFT markets and wallet interfaces, enhancing NFT and DeFi integration.

Epilogue

The potential of NFT is indisputable. Another aspect of this technology is the NFT marketplace. These markets are developing and improving more and more. That gives traders another promising investment channel.

Things to know about Standard Protocol (STND)

Standard Protocol is Polkadot’s pioneering protocol in accepting the collateralized Rebasable Stablecoin (CRS) for synthetic assets.

1. Issues of Algorithm in Current Stable Coins

Stable Coin is focused on stability compared to fiat without interoperability

The current algorithm stable coins focus only on maintaining automatic price stability. Although they provide some interoperability between tokens with their initial distribution via yield farming, there is no way for them to interact in sustainable financial operations.

The current oracles are centralized and do not have a decentralized ecosystem to reward them

There is currently no reward system for oracle vendors and solutions are controlled by validators or companies themselves. Joining the Dex exchange has disadvantages compared to the Cex including: the introduction of unfavorable spread data, and fast swaps.

Therefore, in order to provide aggregated and balanced data, oracle providers must be rewarded in a decentralized way. The Standard Protocol solves it by providing phased rewards and position reductions that are equivalent to an IQR (Interquartile Range Rule).

Auctions are difficult to track and focus on

Liquidation auctions are difficult to track and participate in, and therefore only experienced traders can benefit from them. A more decentralized approach to liquidation of positions should be considered for this. Auction orders contain large amounts of collateral, which can lead to tyranny (who holds large amounts of collateral).

2. How the Stand Protocol solves the problem

Elastic supply

The issue rate of the MTR (inverse with the mortgage rate) is fully controlled by the administrator within the epsilon range; However, when the MTR price breaks out of the epsilon range, the activity will be suspended urgently and no further MTRs will be issued for the remainder of the period.

Starting from the next period, the system will charge and adjust the MTR issue rate to stabilize the MTR price to USD until the MTR price recovers to 3 quarters of the epsilon range.

If the MTR is higher than the USD, more MTR will be generated from the mortgage over the next period. If the MTR price is lower than the USD, there will be less MTR from the mortgage over the next period.

Total supply of MTR is adjusted according to the above ratio

Ampleforth (AMPL) uses an elastic supply to re-base its total supply. Standard restores its stablecoin supply from time to time and overuse it to mint stablecoin, Meter (MTR).

Standard (STND) automatically rebases collateralized stablecoins, in the way of an algorithmic reserve bank with decentralized governance for STND holders. By rebasing each period, the total supply of the stablecoin Meter (MTR) and the amount that can be issued is adjusted to the Meter (MTR) to the value of USD.


Meter Supply (MTR) is measured in each rebase and adjusted with intermediate prices from oracles

Decentralized Oracle ecosystem

Oracle customers from a variety of sources (e.g. Binance, Coinbase, HydraDX) can provide aggregated price information so that prices cannot be manipulated by a single entity.

Standard Protocol builds an oracle module to share block rewards with oracle providers. Substrate allows developers to divide block rewards among other network participants at all times.

The block reward for Oracle vendors maintains an 8: 2 ratio between validators and vendors for a period of time. The total block reward for each period is 10% (controlled by the administrator) of the total STND produced during the period.

Oracle vendors are selected using the phragmen algorithm. Selected oracle providers have no fees. Blocks can only have the maximum number of oracle transactions recorded. This is to prevent too many oracle transactions from taking over a block.

Oracles is used to create synthetic assets from the stablecoin Meter (MTR). The Standard Protocol treats oracles like validators to operate across a wide range of the DeFi ecosystem.

Effective liquidity in the market

Instead of holding an auction to liquidate collateral, the Deposit Standard Protocol liquidated the collateral into the AMM pair so Meter holders (MTRs) could buy the liquidated digital assets. other reason.

The standard protocol uses an integrated AMM module to provide liquidation in a more efficient way in the market, where liquidated assets are used to execute arbitrage transactions.

Standard Protocol rewards stakeholders that find loans that have expired by giving them a percentage (10% or more) of collateral.

The remainder will be routed to Standard Protocol’s integrated DEX to provide arbitrage trading opportunities for stakeholders using the exchange.

Basic price stability

By being algorithmically stable through rebasing, Standard Protocol provides cash that can act as a base price. For speculating on digital assets, Meter can be used to estimate the value of that asset at a price pegged in USD.

Ecosystems can interact

Standard Protocol is a collateralized, re-fundable rebasable stablecoin (CRS) protocol that works on different blockchains as a form of smart contract within each network.

Together, the Standard Protocol ecosystem for interoperability represents a blockchain hub.

Standard Protocol will be able to share price information with other chains or fiat assets without charging due to its self-maintained oracle reward ecosystem.

Use Vaults standards to leverage collateral

To help better understand Standard Protocol, I will take the example Ngoc – a personality girl who owns electronic money. Like MakerDAO’s Vault, Standard creates an MTR by leveraging all the accepted collateral called Standard Vaults.

One of the main ways Vault owners can use Meter (MTR) is to purchase additional collateral, usually DOT. If the DOT price increases, the Vault owner makes a profit.

She can also borrow from Vault as a form of decentralized leverage. Since Standard Vaults requires a 150% minimum mortgage, the maximum leverage available is 3 times, regardless of transaction fees or slippage.

Ngoc sends 15 DOTs, worth $ 1,500, into her Vault. She generates 1,000 Meter (MTR) of it (maximum possible with a 150% mortgage), and then uses the generated Meter (MTR) to buy 10 DOTs, which she sends back into her Vault me. Ngoc can now generate an additional 667 Meter (MTR) compared with the $ 1,000 of DOT collateral.

Buying $ 667 DOT allows her to generate an additional 444 Meter (MTR). Repeating this process provides an additional 296 Meter (MTR), then 198 Meter (MTR), 131 Meter (MTR), 88 Meter (MTR), and 59 Meter (MTR).

In the end, a total of 3,000 Meters (MTR) can be generated compared to the original 15 DOTs, allowing Gems to leverage 200% of her initial stake.

The risk of DOT depreciation also increases. If Ngoc does not keep her Vault fully collateralized, it could be liquidated.

Send Meter (MTR)

In addition to refinancing a Standard Vault with a generated Meter (MTR), tokens can also be used for purchases. One option is to use Meter (MTR) to buy other cryptocurrencies on the Meter market (MTR), which are cheaper than the prices available from HydraDX.

In addition, you can hold, earn, spend, donate, loan and trade Meter (MTR). Community will grow as teams build projects that use Meter (MTR).

Support for the Economy of the Meter (MTR)

Meter (MTR) will become the incubator for solutions to problems, from financial services to charities and its ambitions to become the most used cryptocurrency in the Polkadot ecosystem.

By interacting with the various products and services built into Meter (MTR), users can manage and trade their crypto assets, and develop and expand the Standard ecosystem. .

Simply by spending Meter (MTR), users are adding liquidity to the token, growing the Meter economy (MTR) globally, and improving the Meter’s configuration (MTR), and many advantages of It compared to conventional alternatives:

Decentralized: Meter (MTR) can be peer-to-peer by anyone, anywhere in the world without third-party intervention.

Accessibility: Anyone with an internet connection can access Meter (MTR) through various wallet solutions within the Polkadot ecosystem, including Mathwallet, Speckle.

Speed: Transactions typically take only a few seconds on the PoS network.

Low cost: The transfer fee is usually just a few cents.

How to use Standard Protocol

In the case of Pump market

Standard issued its MTR stablecoin from collateral, typically the DOT. This allows leveraged trading to make a profit with one’s existing assets. Additionally, holders of MTR can generate aggregate assets out of oracles, such as virtual stocks, commodities, etc.

In the case of Dump market

MTR holders can still make a profit by buying other digital assets from liquidation. These assets can be bought with MTR and sold on exchanges

Why is the digital asset coming from Meter cheaper than other exchanges?

Since liquidation from expired vaults will be routed to the market, Meter holders (MTRs) can buy other digital assets at a discount.

Crosschain integration

Standard protocol is a crosschain application protocol that aims to be an important currency for each blockchain ecosystem. Standard protocols that will be applied to a blockchain include: Exchange integration, Oracle support for pricing, and support for smart contracts.

Stage 1. Deployment

Standard protocol will be initially implemented in smart contracts in the following platforms: Parity ink, Cosmwasm (new smart contract platform built for cosmos ecosystem), EVM (Solidity, Vyper).

An integrated interface will be provided starting with the EVM implementation.

Stage 2. Connection

Standard protocol will be implemented for parsed or chained chains based on Cosmos SDK, all of which support IBC. Each implementation of the Standard protocol will be able to transfer assets or receive value from other blockchains in a decentralized manner.

Stage 3. Unification

Managing each implementation with different tokens can confuse STND holders. To prevent this, the Standard protocol builds separate operational blockchains for each inter-chain ecosystem to provide unified governance.

Smart contracts are limited in the way that one has to perform a transaction in order to administer it. A dedicated governance blockchain will process proposals and voting in an automated and fair manner.

Mechanism of Standard Protocol

Maintain stability

The standard protocol protects its price during both contractionary and expansionary phases, with the process of payment of payment, through stabilization fees and rebasing a steady total supply of money every eight hours.

Stable fee

The standard protocol gets a stable fee as a profit by creating a stable coin MTR.

The stability fee is determined by the governance as a percentage and the amount of MTR required to close the vault is calculated by the number of previous periods.

After opening a position, it is calculated using a simple interest formula. Assuming the steady rate of fees is R, the number of past periods is N and G is the amount of the generated MTR.

Period (ERA)

A period = 24 hours in a substrate node with an interval of 6 seconds in block completion. Standard uses the same amount of time to define the period.

Elastic supply

Similar to Ampleforth’s elastic supply, the stablecoin’s total supply is adjusted when the price falls out of the epsilon range, about 1% of $ 1.

Expansionary & Contractionary

Expansionary

In economics, the Expansionary Policy is done by pumping money into the economy to stimulate investment in business and consumer spending. The pumping can be through government spending or by lowering the lending interest rate.

Expansionary in Standard Protocol, makes sense in case the price increase of the MTR exceeds 1 USD, the vault will transfer the new MTR to the vault account. After that, the vault will have an additional mortgage MTR for distribution to the community.

Contractionary

In economics, a Contractionary policy is a monetary measure that causes government spending to deficit or expand in the monetary ratio of the central bank.

Contractionary in Standard Protocol, which makes sense in cases where the MTR price falls below 1 USD (or DAI), the community is encouraged to repay the loan from the vault due to the relatively cheaper MTR price. Vault corrects this situation by reducing the supply of reserves in the Vault account to maintain a peg of $ 1. If the Vault is unable to reduce its reserve supply, the Vault module will declare emergency shutdown to generate an MTR.

Runtime modules

The Standard Protocol is implemented using Parity Substrate and has 9 runtime modules built using the pallets available in the Open Runtime Module Library (ORML).

Token

Token module is a registered place to store asset information about Standard Protoco and other chains. Derived from ORML’s XCM token, the Standard Protocol’s token module manages assets that come in and out through Cross-Chain Message Passing (XCML) over parachains. Assets are managed with a unique identifier.

Market

The Market module in the Standard Protocol manages pairs for an automated market maker (AMM) between each collateral and its stablecoin Meter (MTR). Derived from Uniswap V2 contracts, the AMM module supports transactions within the Standard Protocol’s ecosystem.

The module allows MTR holders to buy other digital assets or provide liquidity to earn fees on every exchange in the market.

Vault

The Vault module takes other digital assets as collateral and generates an MTR. The MTR holder may create synthetic assets at the price provided by the providers by oracle providers.

Staking

The Staking module uses an NPoS (Nominated Proof of Stake) mechanism to select validators and reward them commensurate with their actions in each period.

The staking module comes with other modules, including discovering authority over the authority keys of the candidates per block.

Oracle

Oracle module is a price and election feed information module, this module stores prices from external data with content IDs from Token module in the form of keys. Oracle Vendors are elected at all times with the amount of stake from the user.

Oracle vendors provide pricing information and are periodically rewarded on each block reward. Prices are stored in state and oracle providers are reviewed from time to time.

If they create anomalies, they’ll be slashed. The total reward for each oracle provider in each era is recorded by the Reward module and the ratings can claim their rewards by claiming them.

Farm

The Farm module modeled after the existing Solidity contracts is used for yield farming projects in Ethereum. It distributes rewards proportionally based on the amount of staked and the time that has elapsed.

The farm module will be used to reward liquidity providers, who will provide liquidity to each asset pair including the MTR and some other assets.

Reward

The Reward module manages the annual inflation rate through administration and stores the total rewards for network participants from time to time. With STND’s initial annual inflation rate of 5%, the reward is distributed to oracle and validator at a ratio of 2: 8.

Other network participants (e.g. liquidity providers) can be added via on-chain run-time upgrades.

Democracy

Democracy module manages the governance problem in order to operate the Standard Protocol. The module has access to all root methods for each runtime module and holders can suggest changes in the network. Voting rules follow the same rules outlined in the Polkadot wiki.

Treasury

The Treasury module manages the proceeds from fees or slashes in the Standard Protocol. This module is used to fund protocol developers, monthly payments for operators and teams, stable fee management or bonuses for community members.

Tokens in the Standard Protocol ecosystem

Meter (MTR)

Meter (MTR) is a stablecoin synthesized by the vault protocol. By rebasing the total supply of the stablecoin at the oracle price provided by the oracle customers, the supply of the stablecoin is adjusted so that the value remains at $ 1.

Holders can use MTR as a medium of exchange, to buy other assets and farm tokens in the Standard Protocol ecosystem by providing liquidity. The supply of the MTR is expanded and combined accordingly to maintain the exchange rate.

Liter (LTR)

Liter (LTR) is a liquidity provider token representing a portion of the AMM module.

Similar to LP tokens in Uniswap, LTR can be burned in AMM to receive deposited assets. LTR can also be used for liquidity mining.

There are also the following tokens: Standard (STND), Standard Tokenomics, STND Token Distribution.

Through this article, we hope to help you understand the Standard Protocol ecosystem abbreviated as STND. We will also update other articles about this ecosystem, stay tuned for updates from us.

EToro’s crypto investment service adds UniSwap and Chainlink

In its recent announcement, eToro added UniSwap and Chainlink to its crypto trading services.

Social trading and investment platform eToro has decided to add two DeFi-based protocols such as UniSwap (UNI) and Chainlink (LINK) to its online cryptocurrency trading services.

EToro Vice President Doron Rosenblum approved the addition of both UniSwap and Chainlink to the platform. As a result, this has brought the total number of digital assets eToro is offering to 18.

Chainlink is currently the 12th largest digital asset with a market cap of over $ 15 billion. On the other hand, UniSwap is in 11th place with a market capitalization of $ 15.8 billion.

The additional admission of UniSwap and Chainlink has attracted the attention of investors, Rosenblum especially said that eToro has always been driven by the robust growth of the crypto industry. This will help them add more cryptocurrencies in the future.

Currently, eToro exchange has over 20 million registered users. In addition, eToro currently provides trading services for leading cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, XRP, Dash, ADA, following this article you will be able to deliver translate UniSwap with Chainlink on eToro.

800 million XLM has been moved in the last 15 hours

The Whale Alert channel, which tracks major movements of digital currencies, has detected nearly 800 million XLM being moved by major owners in the past fifteen hours.

800 million XLM moved

This huge volume of XLM has been moved by anonymous users, according to a series of recent tweets posted by Whale Alert, totaling 800 million XLM, equivalent to $ 351,697,770.

Arguably, this is the first major XLM move in the past few weeks.

At the time of writing, XLM is a 15th ranked digital currency on CoinMarketCap, trading at $ 0.44. Over the past 24 hours, the coin has increased by 8.41%.

ETP XLM and ADA are launched in Switzerland

It is possible that the following event was one of the reasons that triggered the move above. On April 22, CoinDesk reported that ETP products based on XLM and ADA were launched on the Swiss exchange SIX.

The ETPs are launched by Swiss-based investment product provider 21Shares – crypto-friendly country.

The Coinbase CEO is in the richest group in the world

After Coinbase IPO and valued at $ 86 billion, the exchange’s CEO immediately joined the group of richest people on the planet with a net worth of $ 12.4 billion.

On April 14, the largest crypto exchange in the US officially went public on the Nasdaq with a value of up to $ 86 billion. This helped the fortune of co-founder and CEO Brian Armstrong rise to 12.4 billion USD, becoming the 175th person on Bloomberg’s list of world billionaires.

Coin (Coinbase) Price Chart Source: nasdaq.com

After earning a master’s degree in computer science from Rice University, CEO Armstrong founded UniversityTutor, a website that offers online tutoring services and has been running for almost a decade but with little success. He then moved on to work as a software engineer at Airbnb for about a year.

By 2012, founders Brian Armstrong and Fred Ehrsam officially partnered to create Coinbase, a cryptocurrency exchange that allows users to buy and sell more than 40 different digital assets, including cryptocurrencies. like Bitcoin, Ethereum and Litecoin.

It is known that the 38-year-old billionaire currently owns about 40 million Coinbase shares. “I think some digital currencies will eventually be the world’s reserve currencies. I see their future,” said CEO Armstrong.

This IPO of Coinbase is considered a turning point in the market because this is the first time that a company associated with a cryptocurrency has conducted a public listing.

In the last two years, the value of Bitcoin has increased dramatically, making the names of CEO Brian Armstrong and Coinbase become famous in the tech world with about 56 million users worldwide, managing more than $ 320 billion in total volume.

The bullish momentum of digital currencies such as Bitcoin, Ethereum currently reaching the milestone of $ 63,000 and $ 2,500 respectively are considered leverage to help Coinbase achieve impressive revenue and profit.

In 2020, this crypto exchange has generated $ 1.3 billion in revenue. In its preliminary report for the first quarter of this year, Coinbase showed that revenue for the same period increased 9-fold to $ 1.8 billion and net income increased from $ 730 million to $ 800 million.

After the IPO, Coinbase is receiving a lot of expectations from experts as well as those who believe in cryptocurrencies for a solid future in the market.

Things every trader should know about derivative exchanges

Understanding open contracts (OI), funding rates and the difference between futures contracts is the starting point for any investor interested in trading cryptocurrency-based derivatives.

Over the past two years futures have become widely popular among crypto traders, which has become even more apparent as the total OI for derivative products more than doubled in three months. .

Additional evidence of their popularity comes as futures trading sales outnumber gold, a longstanding market with a daily volume of $ 107 billion.

However, each exchange has its own orderbook, index calculation, leverage limit, and rules for Cross Margin and Isolated Margin. These differences may seem superficial at first, but they can make a huge difference depending on the needs of the trader.

Open contract


Synthesis of OI futures contracts (blue) and daily trading volume (black) | Source: Bybt

As shown above, OI futures has grown from $ 19 billion to $ 41 billion at present in three months. Meanwhile, daily trading volume has surpassed $ 120 billion, well above the $ 107 billion level of gold.

While Binance futures take a larger share of this market, a number of competitors with trading volume and related OI include FTX, Bybit, and OKEx. Some of the differences between the exchanges are obvious, such as the FTX which charges perpetual contracts (reverse swaps) per hour instead of the usual 8 hours.

OI futures BTC and ETH | Source: Bybt

Pay attention to how the CME holds the third place in Bitcoin futures, despite only offering monthly contracts. Traditional CME derivatives markets also stand out for their margin requirements of up to 60%, although brokers may offer leverage to specific clients.

Stablecoin is mixed with the margin token contract

For crypto exchanges, most will allow 100x leverage. Tether trading orders (USDT) are usually denominated in BTC. Meanwhile, Inverse Perpetual (token margin) orders shown in contracts can be worth $ 1 or $ 100 depending on the exchange.

BTC Futures Trading Order Entry | Source: Bybit

The picture above shows the USDT futures trading order entry asking for the amount in BTC on Bybit, the same process is happening at Binance. On the other hand, OKEx and FTX give users an easier option, allowing customers to enter the amount of USDT, while automatically converting to the value of BTC.

BTC Futures Trading Order Entry | Source: OKEx

In addition to USDT-based contracts, OKEx offers a pair of USDK. Similarly, Binance perpetual futures contracts also offer Binance USD (BUSD). Hence, for those who don’t want to use Tether as collateral, there are other options.

Funding rate changes

Some exchanges allow clients to use very high leverage and while this may not pose an overall risk since liquidation engines and insurance funds are in place for these situations, it will Put pressure on funding rate. Hence, Long trades are often penalized on those exchanges.

Funding rate of ETH futures | Source: Bybt

The chart above shows that Bybit and Binance generally show higher funding rates, while OKEx consistently offers the lowest levels. Traders need to understand that there are no rules that enforce this and that rates can vary between assets or the need for leverage in the short term.

Even a 0.05% spread equates to 1% of additional weekly costs, which means it is essential to compare funding rates occasionally, especially in bull markets, when fees are available. the trend escalates rapidly.

Major economic corporations join the Bitcoin community

While institutions praise Bitcoin for its ability to store value, many major economic corporations accept Bitcoin as their payment method, in addition to other companies and retail stores. BTC as a means of payment.

With the continued rise in price and popularity, Bitcoin’s mass adoption has skyrocketed in recent months. In addition to the notable big names when buying Bitcoin as a store of value, many companies large and small have accepted Bitcoin payments for their products as an alternative to fiat money.

Tesla leads the way

Bitcoin has had an extremely successful year as institutional investors, banks, and fund managers continue to support in many forms.

But before it became a store of value for some, it was designed to function as a peer-to-peer electronic cash system. That story was in doubt at the right time as many people refused to use Bitcoin as a form of payment.

However, the situation is changing and many companies around the world already allow payments in Bitcoin.

Arguably the biggest name on this growing list is Elon Musk’s Tesla. The electric car giant bought $ 1.5 billion in Bitcoin in January of this year but didn’t stop there. Just a few months later, Tesla announced that it would start accepting Bitcoin payments for its customers, and perhaps more importantly, they would store money in Bitcoin instead of converting them into cash.

From Expedia to Apple

The consequences of Covid-19 were dire for travel agencies. However, Expedia, one of the leading online travel agencies in the world, joined the Bitcoin movement a little while ago.

Recently, Expedia announced a partnership with Coinbase, through which it begins to allow payments in Bitcoin. Some experts believe that the move will bring more flexibility to the company and help it get through the next difficult months.

In turn, tech giant Apple announced that users can spend Bitcoin through Apple Pay. According to the company, BitPay Card can now be added to Apple Wallet. BitPay CEO Stephen Pair explains the innovation:

“We have thousands of BitPay Wallet application customers using BitPay Card. The addition of Apple Pay and the upcoming Google as well as Samsung Pay makes using BitPay Card in many places easier and more convenient ”.

Other companies that accept payments in Bitcoin

Another world-famous company on this list is PayPal. The US payments giant notes that domestic users can transact and hold BTC, BCH, LTC, and ETH directly through their accounts starting October 2020.

Based in Tokyo, Rakuten is Japan’s largest e-commerce company, a strong potential advocate of Bitcoin as well as cryptocurrency, and one of the first major corporations to adopt it as a form of payment.

Coca-Cola has announced a partnership with digital asset platform Centrapay to allow Bitcoin as a payment option. This popular beverage brand has around 2,000 vending machines that accept Bitcoin.

The current Covid-19 pandemic also positively affects a number of companies. One such example is the US e-commerce website Etsy. Etsy is famous for customers interested in handmade or vintage items and crafts.

Although Etsy does not currently have an automated system for accepting Bitcoin, vendors can designate the adoption of cryptocurrencies in their advertising to attract consumers.

Bitcoin to the NBA and Premier League

Another report reported that Luzboa, a Portugal-based retail electrical store, has switched to using Bitcoin as a form of payment. This innovation will allow Portuguese citizens to pay their electricity bills with cryptocurrency.

The Bitcoin craze has come to the English Premier League. The Southampton team announced they would reward the players Bitcoin instead of cash. The Saints players will have access to end-of-season performance rewards and they will be paid out in BTC.

Another sports club that is paying its players in Bitcoin is American NBA giant Sacramento Kings, while the Dallas Mavericks is accepting Dogecoin entrance ticket payments.

Ethereum and Smart Contract technology

If bitcoin is the revolution in decentralized e-payment by blockchain technology, ethereum opens a new era of allowing internet applications to operate on the blockchain platform without being bound by any organization or individual.

Surely anyone who learns about bitcoin, blockchain or digital money (cryptocurrency) has come across names like ethereum (ETH), smart contract (SC), ETC20 Token or ICO. These are the concepts that are popularized by Ethereum – blockchain technology has been groundbreaking in recent years.

If bitcoin is the revolution in decentralized e-payment by blockchain technology, ethereum opens a new era of allowing internet applications to operate on the blockchain platform without being bound by any organization or individual. So what is ethereum?

1. Ethereum

Invented by Vitalik Buterin – Canadian programmer, ethereum is a blockchain technology, and also a platform that allows users to build decentralized applications on the blockchain platform.

The revolution and also the key difference between ethereum and bitcoin is the smart contract. So what is Smart Contract?

2. Smart contract (SC)

Smart Contract is a computer program written in a Turing-complete programming language (the difference with bitcoin). This program is translated into a bytecode and stored on the blockchain as SC with a unique address.

The user can use this site to interact with the SC and to execute the tools provided by the SC. This execution is done by the EVM (Ethereum Virtual Machine) virtual machine that comes with the Ethereum Client that miners use.

Each SC can store its own values ​​and this change must be consensused by the blockchain as each change equates to 1 transaction.

3. ICO

Although ICOs were born very early, this form of fundraising has only gained popularity thanks to ethereum.

ICO (short for Initial Coin Offerring) is a popular form of raising capital with digital money. This is how blockchain startups or Distributed Ledger Technology (DLT) often use to raise capital. Instead of contributing with fiat money, investors will contribute with fiat money.

A common capital call on the ethereum platform consists of the following components: the white paper, the gold book, the executive team, and the development roadmap.

The whitepaper is a detailed description of the project. Next is the golden book, the golden book is the description of the technical properties, the theory, the equation and the mathematical proof of the product (depending on the project). Finally, there is the founding team, the operating team, the advisory team and the development roadmap of the project called the Roadmap.

ERC20 Token

A SC certifies the investor’s ownership of a part of the project. After the project is officially put into operation, this token will be separated from the ethereum network and transferred to a corresponding frame of reference.

ICO Contract

Convert the investment money (ethereum) to a certain type of project token and confirm ownership of this token amount for the investor.

With the explosion of Blockchain and cryptocurrencies, raising funds with ICOs has become an extremely efficient method of raising capital. However, the risks that come with it are also very great when there are currently dozens of ICOs and ERC20 tokens growing like mushrooms every day. In addition, countries such as China, Korea have also started to tighten and even ban completely all forms of ICO for citizens of these countries. However, there are also quite successful ICOs and are gradually asserting the importance of blockchain technology in particular as well as DLT in general.

Things you need to know before investing in cryptocurrencies

Do you want to participate in cryptocurrency? Here’s what you need to know before you invest.

Know yourself

A lot of people are investing in crypto and it’s becoming increasingly clear that it’s not just a fad. It’s also clear that it’s potentially very appealing – though not without risk. So before you invest in cryptocurrencies, it’s a good idea to have a goal in mind and know how much you can afford to lose.

Not many people wonder why they invest? Most will say it is for making quick money, while others will say it is a future investment in blockchain technology. For others, it may just be curiosity. These are very different reasons, so creating very different strategies.

For short-term returns, it makes sense to buy low and sell high – but there’s more to it than that. You will need to choose a highly liquid coin, consciously manage your risk, and rebalance your portfolio on a regular basis. Without a plan, you simply won’t produce good results.

Likewise, if you are betting on future technology then you have the ability to make a long-term investment, meaning you will either hold or hodl. That’s what many early Bitcoin and Ethereum holders did, but that doesn’t mean it’s the right strategy for you and your goals. And even this purpose still requires research. There are many investment opportunities and many will fail.

No matter your reasons, don’t gamble your money because you are only feeling your. Investing in cryptocurrencies is a good thing, but you need to be your own boss. There’s a reason why you invest, how much you’re investing, and when you choose to buy.

When you know why you invest, ask yourself what you want to achieve. For example, how much profit do you make? How much time, effort and research are you willing to spend to achieve your goal? What is your stop loss? Before you invest, know your goal and do it properly. Since most people won’t have a lot of free time to research, you can use cryptocurrency trading tools to aid decision making.

Things to keep in mind

If you have experience trading stocks, don’t assume cryptocurrency trading would be the same thing. Cryptocurrencies are not stocks. You can use tools like the RSI (relative strength index) and the ADX (average directional index), which is certainly helpful, but the cryptocurrency is more volatile and the market is trending. much more volatile than the stock market. Think FUD / FOMO: fear, uncertainty and doubt / fear of capital loss.

If you can keep your head cool, plan and stick with it, while managing your risk properly, then your crypto investment can be a reward for you. How you make money when you invest depends on your goals.

Remember, whether or not cryptocurrency is a good investment depends entirely on what you think the future will look like and not what cryptocurrencies have achieved in the past.