Cardano ADA Becomes the Third Most Popular Crypto

The token of Cardano, ADA, has exceeded other coins on top positions and just became the third-largest cryptocurrency worldwide. Now, developers of different networks aim to capitalize on the rise of DeFi that is taking the world by storm. At the moment, the currency is being traded on various exchange platforms. ADA challenged a big crash in price by a warning to jump into a historic high, going even above its previous record. 

On Friday, August 20, the token’s rate went over $2.56, registering an increase of 154.54%. The culmination of a movement that had already begun on July 20. All of that despite expert’s opinions who warned about a fall in price. Now that the price of ADA skyrocketed by 50% only during last week, the trust in the advancements in new technologies has also grown. 

The Alonzo Upgrade

The previous also boosts confidence that Cardano will enable payment systems on its platform earlier than expected. This improvement is known as the “Alonzo” upgrade, and its release has been officially scheduled for September 12. The investors of ADA keep driving the value of Cardano even higher in anticipation of said upgrade. The upgrade will present smart-contract functionality to the blockchain, which will allow Cardano to settle as a significant player in the DeFi universe. 

Due to the low price, Cardano ADA has become one of the most sought-after currencies by traders. Now, with Cardano’s ability to work with smart contracts, the currency has been gaining consistently. On the other hand, its main competitor, Ethereum, dominates the $100,000 decentralized finance space.

Smart Contracts

These are also known as blockchain contracts and distinguish themselves for the methodology in which they ensure conformity between the parties involved in a transaction. These contracts are comparable to the standard traditional contracts. They function between two parties or more that don’t require the involvement of a third party to ensure the enforceability of the agreement.

Without traditional middlemen like banks, people who use DeFi can transfer financial functions straight onto digital ledgers. That allows them to lend cash or borrow it and collect interest in an account of savings.

The Future of Cardano ADA

The rises in crypto like Bitcoin, Ether, ADA, and others contributed to the market surpassing $2 trillion in total value last weekend. The first time it happened since the crash was in mid-May. And now, on September 12, all eyes will be on the Cardano ADA “Alonzo” upgrade. We’ll have to wait and see how this affects the whole crypto market. If it goes well, ADA could be considered a severe competitor for Ethereum, probably starting a new age in crypto history.

The Biggest Crypto Theft in History

A Bit of Background

The industry of DeFi has been growing at a fast pace, which makes crypto theft more attractive for hackers. Just three years ago, the value of it was barely $800 million. By February 2021, the sum was up to $40 billion. No wonder why more people are trying to make money in this sector, just as others are trying to take advantage of it. 

A group of hackers stole about $600m in cryptocurrency last week from Poly Network. The blockchain site said they took advantage of one of the vulnerabilities between contract calls in the system, which allowed them to take thousands of tokens like Ether. A few hours later, the hackers restored the funds, first in small amounts, then in millions. The site also declared that the sum of money hacked was one of the biggest in the history of decentralized finance. Among the currencies taken were $267m of Ether, $252m Binance coins, and $85m in USD Coins.

Poly Network allows the users to make token transfers that are tied to a blockchain in a different network as decentralized finance. Binance’s chief executive, Changpeng Zhao, said the group was cooperating with all the security partners to help the situation since his firm was aware of what was happening. When analyzing the multiple hacks, the main vulnerabilities in the DeFi sector can be identified. 

How Does Crypto Theft Work?

Usually, the attacker studies the project’s business model and the third-party services implemented. Mistakes in the business model and the third-party services are two of the main issues hackers take advantage of. Despite the simplicity of smart contracts, they’re still a new concept in the technology universe, and it requires a different paradigm of development. Commonly the developers in charge don’t have the skills for coding necessary for the task and end up making big mistakes. It’ll most likely end up in huge losses for the regular users. Security audits are implemented to eliminate part of the risk, but they can only help so much.

Final Thoughts

Whatever was the reason for the breach, the Network was lucky enough to get back almost all that was taken this time. Although, this will represent significant losses for the company since its security was breached and the trust of the users. We also have to keep in mind that it is always up to the user to decide if the risk of getting involved is worth it or not. Whenever choosing a platform, you should be conscient that there’s always a risk. Nobody can guarantee 100% safety of your assets, but some have better security methods implemented than others. Make sure you research enough through your options to make the decision you feel most comfortable with.

Day Trading Tips for Newbies

Basics of Day Trading 

If you’re willing to dive into the world of day trading, there are some important tips to follow to achieve your goals. It all comes down to setting the right software and equipment. Also, how much you need to start, what to trade, when to do it, risk management, and building an effective strategy.

How to Choose the Market?

The first thing to choose is the market where you want to trade. It would be best to keep in mind that one market is not better than another; it’s all about what operations you choose. For example, the market of forex requires the least amount of capital for Day Trading. Although you can start with only a few hundred dollars, it is recommended to reach at least $500. Stocks require at least a couple of thousand dollars a day, making them the most intensive option. Requiring more capital doesn’t mean that a market is better or worse than another, your decisions should depend on your capabilities.

What About the Equipment and Software?

There are some essential tools needed for Day Trading, including a computer or laptop. Although it is preferable to have two monitors, it’s not mandatory, but you must have a computer with enough memory and a fast processor to run the trading programs. A reliable and fast internet connection is also needed and a trading platform adapted to the market and style of transactions. 

The Day Trading

Your strategies as a trader must be focused on consistency to act simultaneously during the day. It is common in Day Trading to find sessions of two or three hours a day. The best hours for stocks are the first after opening and the last before closing. Trading occurs 24 hours a day for the currency market, but the highest volatility occurs between 6:00 and 17:00 GMT.

Conclusion 

Knowing a strategy does not translate into a successful implementation since no two days are the same in the market. It takes the practice of at least three months before accessing real capital. After meeting at least those three months with a good demo performance, it is advisable to switch to live trading. The focus should be on a single strategy, and you only trade in the market you chose for as long as you have decided.

Cryptocurrency 101

An Intro to Cryptocurrency

In the last few years, technology has taken a significant role in our lives, cryptocurrency is part of it. Affecting and, most of the time, improving the way we deal with problems. The main advantage is that it offers new and fresh opportunities to make a living. 

How did it Start?

We’ve all heard about this industry that has grown tremendously, especially in recent years. But how did it all begin? Well, since 2009, when Bitcoin was launched, the whole industry skyrocketed. All of this, naturally followed by the flourishing of blockchain technology, resulted in the creation of thousands of projects. Also, different varieties of blockchain, and specifications.

About the Developers

Becoming a developer can be relatively easy if you’re a tech-savvy person. If that’s the case, you could get easily involved in constructing decentralized applications or helping the development of blockchain. Even improving the specifications of assets since multiple areas can be of interest to developers.

About the Traders

In many ways, trading crypto is very similar to trading stocks. The industry offers many different digital assets that change in price. The goal of cryptocurrency trading is to buy and sell a specific asset to obtain a profit at the end of the deal. This is also affected by the news; that way, they can decide based on expectations or hype. To better succeed in the cryptocurrency market, traders use price charts, follow patterns and indicators of price. Naturally, the main tool they use is technical analysis. Trading cryptocurrency may overlap the niche of the developers. Traders might like to get involved in building bots, chart indicators, or tools that could potentially improve their experience in the market.

How is this regulated?

This particular subject has attracted a lot of attention, creating controversy. This has become an area of focus as the industry keeps growing and developing for years since it first started. The classifications for many cryptocurrency assets have not been clear. For example, Ethereum and Bitcoin are seen as commodities, but many other cryptocurrencies don’t have any specific classification that makes their regulation a legal limbo. The role of social media has been key to the crypto industry. As a result, a door for people to share with the world their experiences and thoughts. They are making it all easier for anyone to understand and learn about the subject.

Bulls and Bears in the Markets

Bull and bear concepts

When it comes to both the crypto and other markets, the terms bulls and bears or “bearish” and “bullish” are used a lot. However, the use of it usually depends on the experience. They indicate the tendency to go high or low of a certain asset or market.

What do the terms bulls and bears refer to?

These terms are used to describe the general sentiment. When we talk about a bullish tendency, it means the rise in the price of an asset is expected. On the other hand, the term bearish points to negative expectations of the price. 

Why are the bulls and bears the animals used for this terminology?

One theory is based on the way both animals approach their prey; while bulls attack by throwing their horns in an ascending movement, bears attack on the way down, starting from a higher position. Although, where these expressions come from is not clear.

How can this be applied to the markets?

Usually, traders care more about being able to do trading in both directions than whether an asset or market is optimistic or pessimistic, which indicates that neither concept is good or bad. It is more important for traders to make sure they are right in their assumption of something being bearish or bullish in order to profit on their trades. They base their conclusions on the hype, news or other factors. Traders might be assuming that the prices on a certain asset or market will go up or down to decide the position they’ll take to accomplish their goals and eventually sell it while obtaining a profit.

Conclusion

Many factors can influence a person’s view, such as opinions, events, and timeframes, still in the end each one must come to their own conclusion regarding what they think, and what’s most important, to have clear that the goal is not to have a bullish or bearish approach, but to make sure that whichever, it’s aligned with our goals.

Big Tesla loss? Bitcoin’s rough quarter could lead Tesla to a $100M loss for Q2

As we all know, there are no absolute winners in the game of trading. You win some, and you lose some. And it seems like company giant Tesla finds itself on the losing side for a change. According to reports, Tesla will probably have to list its Bitcoin (BTC) holdings at a loss. And we have the scoop on this Tesla loss.

And just back in February, Tesla announced its $1,5 billion investment in this so-called “digital gold” coin. Bitcoin was worth around 38,000 dollars at the time. It’s also worth mentioning that the Securities and Exchange Commission (SEC) states that BTC (and other intangible assets) has to be listed as an impairment charge if BTC falls under the value it was bought at.

Seeing how Bitcoin price keeps falling and is around $31,000 at the moment, hitting levels last seen in January, this Tesla loss may mean the company will be facing an impairment charge. In other words, it has to report the drawdown in a disclosure to the SEC.

Some analysts say that anonymous yet reliable sources claim that the impairment charge can lead to a loss between $25 million and $100 million for Tesla on paper. Also, Tesla can’t mark up the Bitcoin price it holds until the position occurs as a sale.

Musk Remains a Polarizing Persona

The question on everyone’s minds in the crypto world is: did the electric car company sell any BTC in the quarter to cover some of the losses? We know that Tesla sold 10% of its BTC holdings in Q1 2021, but Chief Executive Officer Elon Musk claimed they did that to prove that BTC is liquid enough to replace holding cash on balance sheets.

Musk has been dividing crypto lovers for a while now. Is he an ally or just another opportunistic capitalist billionaire? Tesla’s interest in Bitcoin investing helped push the coin into record-high levels in never-seen-before rallies.

But then the company did somewhat of a 180 and suspended Bitcoin payments, claiming it was concerned about the environmental impact the famed crypto has due to its tasking mining operations. Moreover, Musk continued to lobby for the Twitter-based Dogecoin, earning the scorn of many crypto enthusiasts.

Adding fuel to the fire, on July 7th, a Reddit user u/StablecoinsFraud started a thread claiming they got a now-deleted screenshot from Musk’s Twitter account. They claim that the eccentric billionaire posted a picture and quickly deleted it. The problem? The picture may have been posted to pump up Bitcoin prices. Coincidence or conspiracy?

What’s In Store For Bitcoin?

As we have mentioned, Bitcoin had quite the roller coaster in recent months. The second quarter of 2021 proved to be the toughest one yet for the cryptocurrency. It fell from record-high levels of more than $63,000 to record-lows of $30,000.

In Q1, Bitcoin saw fantastic returns of 102%, but Q2 brought that number to a meager -40%. Many larger companies began adopting Bitcoin as a payment method amid its surge, so they won’t be pleased with the news. Besides Tesla, other big names that have jumped on the bandwagon were PayPal, Visa, and many more.

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