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.
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.
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.
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.
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.
Proof of Work, also known as PoW, is the consensus mechanism to secure the network by using an algorithm. That, while also creating new blocks and issuing coins as compensation. In simple terms, miners try to solve really complex mathematical equations through a process that is energy-intensive. The goal is to create blocks and to receive Bitcoin rewards in return. The technology of the blockchain in charge of powering Bitcoin, just as many other cryptos, is simply a decentralized database. It is driven by nodes that are distributed all over the globe; there are no authorities to supervise, call the shots, or establish the rules.
Then, how is it possible for everyone to agree on the substance of the ledger? Well, that’s when the proof of work consensus algorithm plays its part. It secures the ledger and the network from attacks of “double-spend,” simultaneously, it adds blocks of transactions to the chain while it generates rewards. This kind of mechanism needs the miners to compete in solving complicated math equations using their equipment. It’s a highly complex process, it’s meant to be that way, but the results, the rewards are potentially precious.
Proof of work is needed in order to keep Bitcoin’s operation going. The consumption of energy required has suffered great scrutiny, and that’s the reason why other cryptos have chosen the proof of stake mechanism instead. We can compare the carbon footprint of Bitcoin to the one of whole Morocco. Tesla, the carmaker, pointed out the problem when it decided that it wouldn’t take Bitcoin payments anymore. They made this public in May 2021, claiming that the impact of mining was too significant, and they didn’t want to take part in it. Constantly, BTC supporters claim that the estimates of the use of energy mentioned frequently are misleading.
Another mechanism that has taken a stronghold in the industry of blockchain is proof of stake. It all started from the concerns of finding a new way around the elevated consumption of energy than proof of work generates. The proof of stake system is based on validators to hold a big amount of crypto in the network and for them to validate transactions while earning rewards. Some other coins also use the PoS model, such as Algorand, Binance Coin, Cosmos, and Cardano. Soon, Ethereum will be transitioning to the same when the Ethereum 2.0 upgrade gets wholly implemented. This improvement will significantly reduce the amount of energy consumption; experts estimate that it will be reduced up to 99.95%.
Since PoS doesn’t need sophisticated high-powered equipment for mining, reducing said consumption is possible. Although, some claim that this model will only help rich people get richer because validators have to take an enormous amount of coins to participate. At the same time, this encourages users to hold on to their coins instead of spending them.
Stablecoins, as we know them, are the cryptocurrencies backed up by the currencies issued by the government, also known as fiat currencies. Stablecoins are different from other cryptos because, unlike them, the price of stablecoins is constantly steady. They’re usually used as a value store or account’s units due to their stability. Since creating cryptocurrencies, they’ve been known as volatile assets when we talk about their price. It’s common for the prices to crash or jump, which prevents them from being valuable as everyday services or goods since it implies a high risk for merchants and vendors.
In theory, a stablecoin has a stable price because it has a fiat currency such as the USD backing it up. In simple terms, their prices are regular because of the fiat currency itself. The most common currencies backing up stablecoins are the US dollar, British pound, Russian ruble, Israeli shekel, etc. Some can be decentralized, others centralized, and they all can have diverse strategies to reach price stability.
A few examples of stablecoins are Tether (USDT), one of the first and probably the most famous ones. It claims to be backed up by USD called collateral. Other examples can be Gemini Dollar, oneFIL, and CACHE.
In the crypto space, the most common stablecoins are pegged to the US dollar, such as Tether, True USD, USD Coin, and Binance USD. Although, there are other cryptos backed by different fiat currencies that are also popular. Such is the case of GBP-pegged crypto Binance GBP Stable Coin, EUR- pegged Stasis Euro and backed by gold CACHE.
Like the majority of the assets in the crypto space, stablecoins are used mainly as a value store or a way of exchange. Because of their low volatility nature, they provide a “safe haven” when the markets are shaky.
As the best example of how popular they have become, we have Tether, the second most traded crypto after Bitcoin. Tether has a volume of trading of more than $70 billion every 24 hours. Once you know the principle they’re based on; it is easy to understand why someone would choose them. Their stability and backup provide investors with trust and confidence, knowing that their money is safer than in other assets.
The proof that these coins are backed up by the reserves they claim to have, is hard to get. For example, Tether has never provided conclusive evidence that the currency is backed, which increased the rumor of it being issued out of thin air.
Jack Dorsey, CEO of Square and Twitter, recently published that he’s currently exploring new horizons by mining Bitcoin. He has been using the services of Compass Mining for the aforementioned task. Compass Mining is a service that hosts and sources significantly powerful mining rigs all over the globe in different facilities. Jack Dorsey has been known for years now for supporting big projects that are centered around Bitcoin. He expressed his BTC preference and even stated that he firmly believes that it can bring peace to the world. Now, his last contribution to the boost of this crypto is that he’s now mining it too.
On August 15, he replied to a tweet from a user about getting into mining Bitcoin. The statement was simple but straightforward: “I’m trying to mine with Compass Mining too…”. He didn’t have to elaborate on it, Compass made sure to share it with its +25k followers. They just retweeted the comment.
As it’s well known, Bitcoin is minted through a process called proof of work; such a process is energy-intensive. Computers compete to perform a variety of compounded mathematical calculations in exchange for rewards in crypto. The task is pretty much unpredictable. Miners expand the power of computing. Due to the current price of Bitcoin, the potential reward can be pretty valuable.
Even though it is actually possible to do mining with just a computer at home, the chances of making a big profit out of it are low. The money that you could potentially get out of it would probably not be enough to cover the energy bill. The process of mining demands a vast supply of power. Mining Bitcoin in a profitable way nowadays typically requires computers with extra powerful or personalized ASIC mining rigs.
The company that Jack Dorsey mentioned in his comment brings the option of finding an ideal location to host a mining rig. You pick the ASIC rig you’d like to buy through Compass Mining, and they set it up and join the pool of mining of your preference. You’ll pay for energy costs for the equipment, and you get the reward from Bitcoin straight into your wallet of crypto.
After Jack Dorsey’s comment, the company decided not to make any specific comment about his activities with the firm. In the end, it was made clear that the company’s primary goal is to encourage anyone who wants to do mining. That by providing access to similar power costs and the supply of hardware and rack space that the best miners in the world enjoy.
What will happen after the last Bitcoin has been minted? Since the emergence of Bitcoin, it was stated that the maximum amount of coins to be minted was as high as 21 million. So, what will happen after that? That’s what many traders, as well as miners, are beginning to wonder. What’s next? Once the supply has reached the maximum level, the miners will not longer receive block rewards, at least not the way they received them so far. Miners will be rewarded with fees from transactions, and this considering that there are no significant changes in the protocol of Bitcoin until then.
There will only ever exist 21 billion coins of Bitcoin. When the last Bitcoin has been mined, which is predicted to happen sometime around 2140, there won’t be anymore Bitcoins entering the circulation. The principle that the blockchain of Bitcoin was created around is that of a controlled supply. It means that there’s already a fixed amount of new coins being issued each year until the grand total of 21 million coins has been reached. Once this happens, the network, in general, will keep operating the same way, except the significant change for miners.
Every ten minutes or so, the miners who work with Bitcoin discover a block. They solve the puzzle of cryptography that enables the miner to attach a new block to the blockchain. Every block is formed by a bunch of records of transactions waiting in the pool of memory of Bitcoin. They get chosen often because of the size of the fee they can bring to miners. Every time a miner discovers a block, they receive an established amount of Bitcoin for their contribution. That is known as the “block reward.”
First, the reward was 50 Bitcoins, but every time 210,000 new blocks are discovered, the reward gets cut by half. That happens more or less in a time frame of four years. The reward has already been cut a few times, first to 25 BTC, then 12.5 BTC to currently be at 6.25 BTC. The last cut happened in May 2020, and the next one is expected to occur in 2024.
After the last Bitcoins have been issued, miners will be able to keep participating in the process of discovering blocks. The main difference is that the reward will not be the same, but there will still be a reward for them. The miners will receive a fee spent on the transactions in every new block. They currently make as little as 6.5% of revenue out of those fees, but by 2140, it should go up to 100%.
Will this disincentivize people from mining? Only time will tell. For now, miners are taking advantage of the situation while they still can do it. Until the day that the last Bitcoin gets minted, something is for sure we still have a long way to go, and many things can change. Nothing is set in stone, especially when it comes to technology development. But bottom line, it seems more and more real that crypto has come to stay with us.
Technical Indicators are tools employed by traders to understand the supply and demand of marketable securities. When put all together, these indicators create the base for technical analysis. They are commonly used to set buy and sell signals. These indicators help us understand the stock market’s behavior now or how it will work in the future. This can be very useful considering that our primary goal is to profit from our investments in the markets.
There are two groups: economic indicators and technical indicators. The first are statistics measuring the growth or decline of the complete economy or a specific area within that economy. They are used for fundamental analysis since they enable us to quantify the economic and industrial conditions at the moment. These indicators are commonly used to supplying info about the future potential of public companies. The second, technical indicators, are used for predicting specific changes in price or trend patterns of an asset.
These are a group of indicators that exhibit a factor of the economy that can be measured after an essential change in the economy has happened. These kinds of indicators can be classified within the technical indicators since they follow the price movements of an asset. That name is given because they show the results from previous actions in a determined time frame. These indicators are very convenient to track signals in the market as they confirm a trend’s strength before making any decision. This is because lagged indicators wait for basic movements within the market before they provide a signal.
On the other hand, although they can be helpful for the trend’s confirmation, there are also a couple of disadvantages. First, they cannot predict a movement in the market; they can only confirm it. Second, the signal to enter a particular position will always be delayed, which doesn’t allow traders to take advantage of the trend’s momentum.
Averages – this indicator is used to recognize a specific trend of an asset in the market.
MACD – is used to interpret the trend and shows the relationship between two moving averages of the prices of a security in the market.
Double EMA – has a reduced lag, seeking to provide information more quickly to the trader.
Crossover – crosses data so that the trader can observe price characteristics and predict its movements.
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 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.
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 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.
If you know about the concept of crypto mining, you must understand what cryptocurrencies are and how they work. A new and innovative way to do it is through your smartphone. The most common questions about this subject are “does it even work?” and “how is this possible?” And the answer to the first one is “yes, it works”, we’ll explain next how this is possible.
It is possible to mine with a device that has android as an operating system. Although, using your mobile device might not be the best option. This method is far from the way the traditional mining hardware or software works. Also should be taken into account that using your smartphone for crypto mining might not deliver a good enough profit worth all the effort and time you have to put in it. The last is because of the early stage that mining with your phone is currently at.
Let’s clarify that smartphones don’t have enough power to withstand the task. In fact, miners use more powerful tools, which make smartphones practically useless.
Regular miners use powerful PCs that are more likely to use GPU power or computer processors, which consume significantly more energy. Based on the above-mentioned, mining crypto can be considered an industrial activity. People nowadays invest in ASIC crypto mining devices to obtain a more significant margin of profit. Pool mining aims to get more power to increase miners’ chances of solving algorithmic problems and getting rewards.
This is how crypto mining on mobile works as well but on a smaller scale. You should be able to join the pool with your device. Although, the percentage of the shared rewards will be significantly smaller, following the power of your computer.
It’s important to mention that it will take a few months before your android generates a small fraction of one bitcoin. You can easily understand that it’s not an easy process, and the popularity of bitcoin keeps increasing exponentially.
To start crypto mining is relatively easy. The only thing you need is to get a smartphone and an app that will help with the process of mining. You should be able to make use of your phone meanwhile the app is working in the background. On the other hand, the wrong side of it is that all these applications can affect the performance of your phone overall. It could cost you the money you intend to make from this operation in the long run.
Blockchain technology has become one of the most used technologies today since it became famous for making bitcoin possible. But, besides bitcoin, it can be helpful for any company. Such is the case of websites for sports betting and, in general, all kinds of websites. When talking about betting, it allows payments in crypto. That enables a system of trust for the user to feel comfortable using the websites. Also, it provides security and total anonymity for the users.
Besides this sector, the truth is that the Internet is being revolutionized by blockchain technology. That can yield a lot of benefits for all kinds of companies. If you have a business and you wish to implement blockchain to be one of its engines, here are some advantages to consider.
The main advantages of blockchain technology are safety, trustworthiness, and irreversibility since it enables the transactions from user to user. The goal is eliminate the need for intermediaries to facilitate financial relationships that are reliable and permit to decrease costs.
Among these significant advantages that blockchain can bring to your business is that, when financial transaction data has been uploaded, it will be impossible to falsify and, in turn, cannot be erased.
Thanks to the blockchain technology, the information or the service will not be lost and will continue functioning in case the Network falls.
For your business, implementing blockchain technology will cost less. This is because it is a cost-effective technology. That is possible by eliminating intermediaries as it offers the possibility of streamlining communications and processes.
Another advantage is that it doesn’t have a central authority or intermediaries, as mentioned before. It makes all the information always within reach to all Internet participants at the moment. What this causes is that the process of transmitting data becomes more straightforward. It yields data to be sent at a higher speed and also managed faster.
Recently, blockchain technology has been a significant technological disruption for all types of sectors. Above all, thanks to the evolution of software and devices, it is possible to link transactions through a global distribution system.
Of course, there are still some challenges regarding security, legality, adaptability, privacy management, and intellectual property. But companies will be preparing to fight against these challenges and make blockchain the technology of the future.
Back in May, the Chinese government tried to end all the economy involved with mining bitcoin. Big bitcoin miners felt as if they had just won the jackpot. The government in China implemented restrictions that caused the cessation of the majority of bitcoin miners in China. They represent about half of the production of this crypto in the world.
The regions where the miners settled are Xinjiang in the north of the country, in the south Sichuan and Yunnan. Now they are looking for a new place to establish their extraction base. One of the countries considered is Kazakhstan, which seems to be the most convenient option due to its proximity. The last, making it an appealing option for many.
According to Forbes, the rest of the miners in the world, instead of having only about 2,500 million euros of gross profit, gained access overnight to more than 8,000 million euros. The profit calculated is the result of subtracting half of the world’s income minus electricity costs. The amount is equivalent, for example, to the 8,000 million euros that all listed companies in the United Kingdom have declared in dividends during the first half of 2021.
These are indeed theoretical accounts, approximate and, above all, projected over a whole year when the summer has not yet passed. We should also remember that the Chinese restrictions were announced in May and, although the People’s Bank of China, for the moment, seems willing to maintain regulatory pressure on bitcoin, it is clear that the Government of Xi Jinping has not yet said the latest word.
However, this access to higher-income is already being noticed in some large miners, as analyzed by Forbes magazine itself. One of them is Bitfarm, a Canadian large-scale bitcoin mining company. According to company reports, Bitfarms generated some 6.6 million euros in mining profits in February. But the lack of Chinese competition has skyrocketed the company’s numbers. In July, Bitfarm mined about 391 coins, double the number in February. That amounts to 13.5 coins a day, compared to 7 five months earlier. Even with an average price of bitcoin set at 30,000 euros, Bitfarms has gone to 11.7 million euros in revenue, almost double.
But what easy comes, easy goes, even if it takes a while to do so or even if external factors alter a market situation that many analysts hope will take little time to correct. That is the case of Frank Elderson, a banker who is a member of the executive board of the European Central Bank.
In March of this year, even before the Chinese government declared war on bitcoin, the ECB thought it might be interesting for Elderson, through the bank’s own official Twitter account, to chat for a while with tweeters. Elderson then compared what is happening with the price of bitcoin with the tulip crisis, one of the first mass speculative phenomena recorded in the history of the economy. At the beginning of the 17th century, the eagerness to buy, sell and resell this flower raised its price to the absurd figure of 1,000 florins when the annual salary of a well-paid craftsman was about 150.
For experts like Shawn Tully of Forbes, experience says that in markets, what goes up, goes down; what inflates, deflates; and where there are good profit margins for a few, it is finally distributed among other competitors. For now, circumstances conspire in favor of bitcoin miners. On the one hand, China remains willing to eliminate mining stations. On the other hand, we have a global lack of semiconductor materials with which the immense mining equipment is manufactured. That has prevented a good number of cryptocurrency enthusiasts from entering the market and claiming their share.
The support and resistance levels are an essential tool to play a part in every financial market. Here is where the bullish and bearish forces collide, offer and demand, and only the winner prevails. It is the market makers setting these levels according to a trend. In simple terms, these are the levels where the price stops and continues with a different movement. Support is the level at which the price slows its decline to rise again. Resistance is the level at which the price stops growing and begins its descent.
The more times the price has carried out this behavior at these levels, the easier it will be to predict the price movement in the future. That is added to the fact that support and resistance levels are considered psychological levels. That is, traders tend to buy or sell at those points, which helps to strengthen them. Traders must pick the best positions to place their support and resistance levels; otherwise, the chart can turn out to be impossible to read. Also, it is essential to learn how to draw supports and resistances correctly.
One of the main problems when analyzing support and resistance is identifying the moment of change or break. While there are some accepted percentages, there is not a consensus. Given the high volatility of the markets, this has to be considered together with other indicators. It’s important to use supports and resistances as a signal and assess all circumstances affecting the value.
We could name many advantages when we talk about using support and resistance levels. Let’s sum it up in three main ones. One, it’s easy to use; even if you’re a newbie in the world of trading, it will be easy to keep up with this. If you find yourself having difficulties, there are many online articles explaining how to work with it, such as this one. Second, well-defined resistance and support points can potentially save you from significant losses. And last but not least, adjusting objective purchase and sale prices and not being subject to news or rumors can help you remove the human error factor.
In the end, we can conclude that every tool that you can use in your favor will be an ally in your quest to accomplish your goals. Although, that is no guarantee that you’ll end up becoming a millionaire overnight. It would be best if you tried learning about all these tools and constantly read about the markets. Also, you should never go straight into trades. Try testing yourself and your strategies first with a demo account. This way, you’ll be able to identify and correct your mistakes without suffering losses.