Digital Asset Insights #42 How And Why to Make Profits Off the Downside
This post was originally published on Trademakers
courtesy of trademakers
Just about the entire cryptocurrency market experienced a free fall last Monday and Tuesday, with Bitcoin falling more than 10% to $58,500 and ETH to $4,100. Sometimes you have to ask yourself, is high level of volatility necessarily a bad thing? The answer is, when understood and used correctly, Bitcoin’s wild gyrations could be golden opportunities to make money. Futures trading is a tool created to hedge loss and make profits out of Bitcoin’s price swings. With it, traders can either long or short Bitcoin, and if the price goes as they had predicted, traders can make money when the price moves in their direction. In addition, traders are afforded the opportunity to borrow money from exchanges to increase their leverage and positions. As an example, let’s say you have 0.1 BTC and want to short Bitcoin at the price of $55,000. You would then open a short contract at an exchange where leverage is available, such as in the Bexplus exchange. Since Bexplus allows you to use 100x leverage, your investment could be worth up to 10 BTC. When the price declines to $50,000, your profit will be the decline times 10 BTC ($55,000 – $50,000) = $50,000 = 1 BTC altogether. Without leverage, your profit would only be 0.01 BTC, or $500.
The danger is that you go in the wrong direction and then your losses would be multiplied by just as much. However, since Bexplus offers 100x leverage and perpetual contracts on BTC, ETH, ADA, DOGE, XRP, and others, no matter whether the market is rising or falling, the potential is there for you to use leverage to earn more money than you would otherwise. The other positive aspect of this is that all orders on Bexplus are executed immediately with low latency, so traders will not miss out on the next blast of volatility. Bexplus was registered in Saint Vincent and the Grenadines in late 2017, and many traders use it due to its no-KYC policy, a free demo account, 100% bonuses and their efficient mobile app. They only require an email address in order to open an account and once registration is complete, a trading account and a demo account with 10 BTC will be opened automatically. With the demo account, you can practice your skills before actual trading begins. Successful traders are those who learn to analyze the market and could always keep a clear head. The best way to improve your skills and mindset is by practicing in the free demo account. Every user is given 10 BTC at the beginning and they are replenishable, so you can try out different strategies as much as you like. No deposit fee is needed, and you can start your deposit at 0.001 BTC. One last benefit is that, to help traders earn more profits, Bexplus offers a 100% deposit bonus to every trader. Deposit 1 BTC and you will get 2 BTC, and up to 10 BTC is available for each deposit. The bonus is not withdrawable, but it is used as margin.
Another potential benefit of using this platform to trade, is that when you are not trading, you can transfer your BTC to the interest-bearing wallet and enjoy up to 21% annualized interest. The interest is calculated daily, and the revenue of the deposit will be settled monthly. With the crypto market being full of opportunities, this offers traders one more possible tool to use in market volatility.
Large Transfers of Ethereum Cause Unease as Market Watchers Anticipate Selloff
Ethereum started last week strong, inching back to the $4,800 mark, but then several long-lasting divergences began pointing to an upcoming correction, and now market watchers anticipate an impending sell-off. At the end of the prior week, the Ethereum Foundation transferred 20,000 Ethereum, worth roughly 9.5 billion, to Kraken. The Ethereum Foundation made similar sales in the past, when the price was peaking, according to Colin Wu, who brought attention to this most recent transaction. Wu stated that, “On May 17, the cold wallet of the Ethereum Foundation transferred 35,000 ETH to Kraken. Vitalik once persuaded the Ethereum Foundation to sell 70,000 ETH (maybe around $1,400 in January 2018) to support the development.” Wu is a popular Chinese journalist. David Iach noted that the Ethereum Foundation currently owns just 3% of the Ethereum that it used to own and had sold most of it at prices below $10. Iach, who is a popular crypto investor, said, “the idea that it’s a top signal when they sell is highly idiotic.” He concluded by completely dismissing the sale’s potential to be regarded as a price movement indicator. The prior week’s Ethereum transfer to Kraken added to market unease, even though all the funds were transferred from the exchange’s cold wallet.
Santiment recently reported that Ethereum’s supply on exchanges dropped to 15.66%, while a year ago, this number was at 23.29%. According to the data platform, the current trend of Ethereum moving into cold wallets for DeFi-related activity and ‘hodling’ can be interpreted as a sign for long-term price prospects. Others believe that on-chain metrics call for caution, and since Ethereum crossed the $4,800-mark last Wednesday, recording a new all-time high (ATH), it witnessed a price correction by the end of the day, dropping as low as $4,485. Following the ATH, Santiment’s analysis addressed some of the on-chain metrics which indicated that a price correction is soon to come. The analysis warned about network activity going down, despite the price pushing upwards. Ethereum’s daily active addresses, the main user participation indicator, has been in decline since late October, diverging from the price. Additional bearish divergences were recorded in the case of daily trading volume and the network profit loss (NPL), as both metrics struggle to go up, despite the price increase.
“People are too relaxed to take profits even though ETH is going up (visible in NPL). There is a good chance they will be punished,” concluded Santiment’s analysis. However, to conclude on a more optimistic note, Colin Wu recently pointed out that the “current amount of ETH burned by EIP1559 has exceeded the number of ETH held by miners.” These numbers are painting a bullish outcome for ETH, at least in the context of long-term price prospects.
Shiba Inu Whale Buys 170 Billion SHIB Coins Worth $8 Million During Recent Dip
A brand new Shiba Inu whale was born last Wednesday with his or her first SHIB transaction, and the amount is staggering. The mysterious and unidentified Shiba Inu whale purchased 170 billion SHIB coins worth an astonishing $8.1 Million during the recent dip. SHIB was on a downside swing most of last week, and the whale made the most out of it by scooping up masses of coins. In fact, the whale converted Ethereum (ETH) to buy SHIB with a transaction fee of all of $88. SHIB has remained one of the hottest-selling tokens in the whale community for just over a month now. In the last three weeks alone, individual whales have purchased more than 20 billion SHIB coins during various dips, giving Shiba Inu the top spot in the leading ERC20 tokens (despite the latest dip in price). Looking back to understand how the pattern of whale movements have affected the coin, we can make some definitive insights. Ethereum is the second most-loved crypto among the whales, but SHIB has not moved out from the top spot, and whale dominance in Shiba Inu arguably began as far back as June 2021. Whenever whales took entry position in the coin, it ended up getting listed on exchange platforms a month later.
Whales who picked up SHIB in June saw the coin getting listed on eToro in July. Whales who purchased SHIB in July saw it being listed on WeBull and Coinbase Pro in August. Similarly, whales who bought SHIB in August saw the coin getting listed on Binance and Coinbase in September. Whale dominance in SHIB has increased again in October and November and hopes of a new listing could be in the cards. Rumors are afoot that Robinhood will get SHIB, and as such, a Robinhood listing will give Shiba Inu a boost in price since it would literally open the floodgates for new customers. So, what are the latest price predictions for SHIB? Experiencing a dip since its ATH two weeks ago, whales are thirsty, lapping up SHIB like a bowl of ice water after a long walk on a hot summer day. Slumps such as these are healthy, and the correction is rightful since every token dips after climbing the ladder. Investors are indulging in profit bookings. However, these swings are customarily the best opportunity to buy once again, since inevitably the price will soon shoot up further. Looking at professional investor expectations, SHIB is projected to knock out a zero from its trade by the end of 2021. Also, if the Robinhood listing gets confirmed, the token could delete two ‘zeroes’ from its trade from last week’s closing price.
Bitcoin Turns Red, Why Bears Aim for A Retest Of $55k
Bitcoin started a fresh decline below the $65k and then even the $62k support levels. At the end of last week, the price was trading below $60,000 and the 100 hourly simple moving average. There is a key bearish trend line forming with resistance near $61,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could extend losses below the $58,500 and $57,500 support levels in the near term. Since Bitcoin price extended its decline below the $60k support against the US Dollar, BTC could extend losses towards $55k in the coming sessions. Once the price traded below the main $60,000 support zone, a low is formed near $58,630 and the price is now consolidating losses. On the upside, an immediate resistance is near the $60,000 level, with the first major resistance being near the $60,450 level. This is close to the 23.6% Fib retracement level of the key decline from the $66,350 swing high to $58,630 low.
As stated above, there is also a key bearish trend line forming with resistance near $61,000 on the hourly chart of the BTC/USD pair. This means that a clear break above the $61,000 resistance may possibly open the doors for a steady recovery. The next major resistance would then sit near the $62,500 level, since the 50% Fib retracement level of the key decline from the $66,350 swing high to $58,630 low is also near the $62,500. This is a level which acts as a key hurdle, and any move above the $62,500 level might start a fresh rally. However, if Bitcoin fails to recover above the $61,000 resistance zone, it could extend declines and an immediate support on the downside is near the $58,800 level. The first major support is, in fact, now forming near the $58,650 level, with the next major support near the $58,000 level, below which the bears might aim a retest of the $55,000 support zone in the near term. Finally, a review of the technical indicators reveal the following: Hourly MACD – The MACD is now gaining pace in the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level. Major Support Levels – $58,500, followed by $58,000. Major Resistance Levels – $60,450, $61,000 and $62,500.
Online Casinos Accept Digital Payments Which Opens Opportunity for Ripple to Reach More People
Since online casinos are now accepting digital payments due to the high demand of their markets, this opens up an opportunity for Ripple to reach more people. With more and more people holding onto their digital assets, this is a vital sign for many industries, and experts feel that cryptocurrency will only get bigger and bigger and will become one of the main payment systems accepted in the future for all online casinos. The entertainment value of casino games and the possibility to win some money from them are great incentives for many people to engage in it. With the combination of a huge gambling market and crypto tech, many entrepreneurs are trying to find ways of creating new casinos that also accept digital currencies. Up until now, the most obvious choice had been the great number one cryptocurrency out there, Bitcoin. Many online casinos offer games you can play with BTC and some even exclusively for this type of currency.
However, it has not been very common to see casinos where you can make deposits using Ripple. Since this is one of the biggest crypto giants out there and it has some great benefits compared to Bitcoin, even though Ripple has not been as popular as many other currencies, all of that could be changing rather quickly. Ripple is constantly growing and reaching new people with its proposition of a fast and easy payment system. It is one of the Stablecoins which has kept its position since January 2018, and now it is slowly and steadily growing. Ripple (XRP) is trading at $1.06 with a market cap of $49 Billion. Due to its high market cap, many online casinos have begun accepting this coin as their payment method. Ripple casinos such as the BitCasino.io and Earnbet are not only satisfying their customers by allowing them to use Ripple for online gaming, but they are also helping fulfill a growing consumer demand.
With an increasing number of traditional casinos adding Ripple (XRP) to their payment options, experts say that soon enough, it could be the future of casinos. Bitcasino.io is the first licensed crypto casino to start to use Ripple (XRP) as its primary cryptocurrency for both players and gaming sites alike. Players who choose Bitcasino are allowed to deposit, play, withdraw and receive winnings with XRP directly. There is no longer a need to convert from BTC or LTC. Earnbet is another casino which is accepting Ripple as its default option for deposits, withdrawals, and bets. Ripple is a currency that was originally created as a replacement for Bitcoin, which had problems in the past due to high transaction fees and slow processing times. The idea behind Ripple was to create stability by providing transactions with low fees and fast processing times. Currently, the casinos which are accepting Ripple are relatively new. However, they are already growing in popularity due to their convenience and fast transactions.
By choosing casinos that use XRP as their main currency, players can now experience faster betting times than when using traditional casinos where gambling is done online in fiat currencies such as USD or GBP. As more casinos continue to add Ripple as a payment option, the rest of the casinos such as Dogecoin Casino will certainly follow suit. The casinos that are accepting Ripple will help contribute to the increasing popularity of this cryptocurrency by generating more users. Now that some industries start to adopt Ripple in their payment options, many are hopeful that soon enough, it will be the future of gambling. The focus on providing an environment where users can have fun and gamble safely is one factor that differentiates Ripple from other cryptocurrencies in the market today.
Weekly Roundup of Cryptocurrency News 19/11/2021
The top cryptocurrencies grabbed headlines last week following a market-wide sell-off which saw over $250 billion wiped off the sector. Bitcoin slid below $60,000 early on Tuesday and despites effort to bounce back, the crypto coin continued floundering and will begin the new week trading around $58,000. Ether followed a similar path, dropping to around $4,200. The tokens are down 8.31% and 7.75% in the last 7-days respectively. Some other exciting events outside the market itself included: India officials are bullish on a CBDC pilot program to begin early next year. In a week where a parliamentary panel concluded that cryptocurrencies would not be banned but instead be regulated, it has also been reported that India is planning to launch a CBDC pilot program early next year. Last Monday, a group of crypto experts from the IIM Ahmedabad, the Blockchain and Crypto Assets Council (BACC), and top crypto exchanges, met with the Parliamentary Standing Committee on finance. The meeting, led by BJP MP Jayanth Sinha, discussed the crypto situation, and concluded that crypto cannot be stopped but will rather be regulated.
Then last Thursday, reports confirmed that India could launch a CBDC pilot program as soon as Q1 2022. P. Vasudevan, the chief general manager at the Department of Payment & Settlement of the Reserve Bank of India, was quoted saying this, adding that the central bank was also exploring “various issues and nuances related to CBDC.” Speaking at an online event hosted by the Australian Strategic Policy Institute on Thursday, Prime Minister Modi took a combative approach when talking about crypto. He complained that crypto, more particularly Bitcoin, was a threat to the younger population. This was not the first time the Prime Minister was expressing discontent. Just this month, he led a meeting that resolved youth should be protected from any overpromising and false advertising on cryptocurrencies.
Winklevoss-founded Gemini raised $400 million to build a metaverse. Towards the end of last month, the social networking firm Facebook paved the way for a spree of investments by several firms entering the metaverse. The announcement and resultant transformation saw startups raise more than $4 billion in an attempt to rival contemporary big tech in the idea of a metaverse. For the first time, Gemini’s twin-brother owners, Tyler and Cameron Winklevoss, received external capital into their company with the $400 million raise that saw the crypto exchange’s valuation rise to a significant $7.1 billion. The pair will still retain a huge chunk (75%) of ownership of the firm. The Winklevoss brothers have popularly in the past challenged Facebook boss Mark Zuckerberg and will be seeking to go head-to-head with his company’s planned metaverse. In addition to offering exchange services, Gemini also has $30 million of crypto assets under its custody. The exchange also runs an NFT marketplace and facilitates users to lend their crypto.
Paradigm revealed the largest-ever VC crypto fund at $2.5 billion. Last week saw a series of fundings by venture capital firms, and one of the highlights was Paradigm’s $2.5 billion raise. The investment firm unveiled the fund on Monday, and with the firm having a keen eye on Web3 applications and protocols of the future, it plans to put the money into supporting innovation and incubating ideas. Elsewhere, the Anoma Foundation on Wednesday confirmed that it had raised $26 million at a $260 million valuation. The round was led by California-based Polychain with additional participation from Zola Capital, Maven 11 Capital, Electric Capital, and others. On the same day, blockchain technology company, ConsenSys revealed via a blog post that it had raised $200 million at a $3.2 billion valuation. The firm plans to use the capital in making Web3 applications around Ethereum much more accessible and easier to use.
Finally, Binance published a detailed list of rights for cryptocurrency investors and users. The world’s largest crypto exchange set the rules in what was a remarkable turnaround. Binance was largely surrounded by regulators in various countries over the last few months and is working hard at compliance in its 10 Fundamental Rights for Crypto Users. The exchange pulled off what was its first-ever publication on traditional media – a full page of the fundamental rights on the Financial Times, complemented with a web posting. The rights touched on the idea that crypto was good for all, but it still needed to address certain issues. Binance advocated for a more regulated crypto space to assure ordinary user’s protections, and this is something the regulators wanted to hear. The document also detailed what Binance believes to be the required market ideals and list of user rights.
Digital Asset Insights #42
How And Why to Make Profits Off the Downside
appeared first on JP Fund Services.
The post Digital Asset Insights #42 How And Why to Make Profits Off the Downside first appeared on trademakers.
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