According to crypto custodian and Stone Ridge subsidiary NYDIG, hundreds of U.S. banks will soon allow trading and holding of Bitcoin. After a long period of reluctance, established financial services providers are also opening up to the new asset class. New York Digital Investment Group (NYDIG) is a subsidiary of Stone Ridge, a $10 billion […]
It is common knowledge that the best traders have been people who trade without any emotions and execute setups, just like a robot would. With new technologies this has become possible and mundane tasks can be automated, but algorithmic trading also has unclear ethical implications. Between the 2000 dot.com boom and bust and the “Big […]
In principle, any application that includes functions for storing and handling crypto-currencies can be called a crypto wallet. An overview of the functions and types of crypto wallets will be provided in this article. It is also important to note that virtual coins and tokens are not stored on the wallet itself, but on the blockchain. Public address […]
The trading in traditional assets such as currencies, shares or commodities began over a century ago, with the most important trading platform for U.S. shares, the New York Stock Exchange, established in 1817. Now a new form of asset has entered the roster and as a result, new exchanges are on the rise. Evolution of the crypto exchanges As […]
Bitcoin is undoubtedly becoming more popular. While many people have heard of bitcoin, the percentage of the world’s population that owns bitcoin is still negligible. In the following article, a two-pronged interpretation regarding the distribution of bitcoin will be presented. The first part will focus on total quantity and distribution. Total quantity: Limited maximum number and inflation rate […]
When, in the 80s computer-based trading appeared on Wall Street, the environment reaked of gold diggers. Profits that had been hardly conceivable until that time, were now being realized as the result of automatic trading algorithms. Within a short period of time, stock exchanges were technically revolutionized, thus redefining the rules and balance of power […]
Technical analysis (TA) is an observation of the historical price movements of an asset.These observations are used to discuss possible future forecasts. Technical analysis is a frequently used instrument in trading with various assets. TA is particularly popular in trading with crypto-currencies, as the price is determined exclusively by supply and demand of the market participants. As different as the approaches to analyze a price trend may be, there are a few common denominators: Principles of Technical Analysis The only basis for decision-making is the price trend. This reflects the historical investor(s) behaviour. It reflects sentiment, rational and irrational decisions. Through the information acquired via TA, a forecast can be generated from historically recurring patterns. The current price is the equilibrium between supply and demand of all market participants; effectively it is a weighted factor that reflects all opinions and decisions. Thus, the TA deals exclusively with the price development. Fundamental data is not important. Because of this, TA of prices are not an exact science. Due to the mass of indicators, their formations and interrelationships, price charts can be interpreted in many ways. Even the selected time interval can provide different results on the possible future course of prices. Price movements are not purely coincidental. Trends arise. It is preferably traded with the trend (trend is your friend). The chances are better to earn money with the trend than against a prevailing trend. The trading volume confirms, confirms a trend. TA only works when trading activity is brisk, i.e. when price movements are meaningful. Technical analysis does not predict the future “Forecasts are based on probability, not on a result that can be expected with certainty. The aim is to identify trading opportunities with a low risk and potentially high return profile”. The approaches of technical analysis and their interpretations are diverse and extensive. There is a huge selection of approaches and approaches. Therefore, one should not strictly cram the approaches, but find out the best approach for oneself personally. An introduction to technical analysis can be found here. Rules, which you should follow when trading, can be found here. * Originally published in German at CVJ.ch
The following rules can pave the way to a successful trading strategy: Define a strategy Your strategy should be based on the fundamentals that you have observed or learned in the market. Technical analysis, i.e. the closer examination of price movements, is an important tool for this. Analyze the market and try to discover recurring patterns. Develop a strategy and […]
What is crypto currency? Crypto-currencies are digital means of payment that are managed by a central office and are cryptographically encrypted. The first functioning crypto currency was bitcoin, which has been in existence since 2009. Now there are now hundreds of other crypto currencies. What is the idea behind cryptocurrencies? Crypto-currencies are supposed to be an alternative […]
