How to Stick With High Probability Trades

Professional traders look for “high-probability” trades. The following are 5 questions you should know before making a trade. Let's say that the EUR / USD is in an uptrend and you see an opportunity to buy the currency pair. You would most likely just execute the trade if you were trading purely on the data…

Professional traders look for “high-probability” trades. The following are 5 questions you should know before making a trade.

Let's say that the EUR / USD is in an uptrend and you see an opportunity to buy the currency pair. You would most likely just execute the trade if you were trading purely on the data of a single chart or setup. That is a recipe for disaster. At minimum, it is important to take a look at the general trend in the market because due to the absence of the markets sentiment can lead to unnecessary losses.

Fundamental indicators, technical indicators, and the market sentiment are three factors that can and will affect every trade. If you wait for those factors to align in your favor, you have a far greater chance of reducing your risk and landing a potential profit.

Ask yourself these 5 questions to help determine whether a trade is worth the risk or not:

1. How deep is the retracement?

In trading, a very strong retracement is much more difficult to recover than a failure decline. Buying after a deep correction in an overall uptrend is generally a lower probability trade than buying after only a small retracement. The general rule is that a deep correction increases the risk of the currency pair breaking its uprend.

2. What is the fundamental reason behind the decline in the currency pair?

If the decline in the currency pair was triggered by a very disappointing economic data such as an abysmal report on consumer spending, then this is a trade you should probably not take because the short-term fundamentals are not in your favor. If there is no major reason or news to explain the dip, there's a greater chance that the uptrend will resume and you may make profits on this trade.

3. What is in the economic calendar for tomorrow's news releases?

You should also place importance in checking if there's a piece of economic data scheduled for release over the next 24 hours that could affect the currency pair you want to trade.

When the trading the EUR / USD pair, if England's retail sales are on the market and the calendar believes the data could be strong, it creates a higher probability trade. This would also be true if there is US economic data on the calendar that the market expects to be weak. However, if there is reason the British data is expected to surprise by being on the downside or the US data is expected to surprise to the upside, then it may be better to pass on the trade.

4. What is the general sentiment in the market? Does it support the trade?

Considering the general sentiment in the market is also very important. If the Dow dipped 300 points, there is a good chance that the European markets will trade lower in the next session. It may not be such a good idea to buy the EUR / USD on a dip after a sharp sell-off in stocks because the dip could turn into further losses if traders in other countries join in on the selling.

However, if the general sentiment is steady and equities ended up, flat, or only slightly lower, then the trade looks good. There is a greater chance that the rally in the EUR / USD will resume if the general sentiment is actually positive with traders optimistic enough to rally stocks.

5. Which key levels could affect the trade?

If a dip in the EUR / USD stops just above a significant support level like 1.3000, assuming the support level continues to hold, going long EUR / USD would be a higher probability trade. If that same trade broke below the support level, then there is a greater probability for additional losses if support turns into resistance.

How Does the News Affect the Forex Market?

Big movements in currencies are usually driven by big stories in the financial markets and the direction of interest rates. For example, in the US, the Fed Chairwoman Janet Yellen will be leaving her post in 2018 and a new Fed, Jerome Powell has been appointed by the President. The changes in economic policies and…

Big movements in currencies are usually driven by big stories in the financial markets and the direction of interest rates. For example, in the US, the Fed Chairwoman Janet Yellen will be leaving her post in 2018 and a new Fed, Jerome Powell has been appointed by the President. The changes in economic policies and ideologies between the exiting Chairman and the incoming one will have an impact in the foreign exchange market.

The Big Stories

When it comes to the financial markets, staying on top of the big stories is critical to your success as a trader. For example, when Great Britain voted to exit the European Union (EU), most financial markets worldwide saw tremendous swings down in reaction to the vote. While this was an extraordinary event, we can not dismiss the events that can have a substantial impact on the value of a currency. These events include but are not limited to the following:

Potential or actual changes in government

Economic crisis

Major announcements by finance ministers and central bankers

Intervention by central banks

Wars and terrorism

Natural disasters

Economic policies by different countries

In recent years, we have seen many events that have drastically affected the currency markets. The Euro was drastically devalued with England's vote to exit the EU. The world economy was affected when the Greek government was a the verge of bankruptcy. The Venezuelan Bolivar has been rendered almost worthless by their economic policies. These are just a few examples and there are many more.

A wise Forex investor follows the news as they can help predict the market. The profits from following major news events can be great and the losses minimized.

Interest Rates

Interest rates are the most important long-term driver for treaties. Globalization has made it easier for investors to shift money from one country to another in search of a higher yield. For example, an investor in the US can get an interest rate of less than 1% where in Argentina they would get an interest rate of 20%. Where would you rather have your money saved? When a central bank changes its key interest rate, it impacts the borrowing costs of individuals, corporations, and even the government. For businesses, higher rates mean higher borrowing costs, making capital investments less attractive. For individuals, it means higher credit card, car, and mortgage payments, which are aimed at slowing growth. Low interest rates, on the other hand, are usually aimed at boosting economic growth.

Over the long run, high rates tend to slow down economic growth. Interestingly, in the short run, higher interest rates tend to be bullish for the currency. When investors move their funds into countries with the highest interest rate, the value of that currency increases. The price action after the decisions shows how monetary policy changes can trigger big moves that can last for days and even weeks at a time.

This article was provided by the Forex Traders Blog (FTB). The FTB aims at keeping Forex investors informed on technical analysis strategies and major news events that may affect the currency markets. Access to the blog is free of cost.

Technical Analysis Is A Necessary Tool To Trade In Forex

What is Technical Analysis in Forex? The technical analysis it is done by looking at the price and the volume data operated to determine if they continue in the future or not. Whenever the analysis is based exclusively on the movement of prices we are doing a technical analysis. The principle of technical analysis is…

What is Technical Analysis in Forex?

The technical analysis it is done by looking at the price and the volume data operated to determine if they continue in the future or not. Whenever the analysis is based exclusively on the movement of prices we are doing a technical analysis.

The principle of technical analysis is that markets act by trends and that everything that influences the behavior of prices is expressed in the graph.

The analysis of the trend is absolutely essential to understand and operate successfully in the Forex Market. One of the great advantages of this market is that you can earn both the rise and the fall, because buying a currency is equivalent to selling your counterpart.

The technical analysis can detect many indications that the trend can change or continue, and locate critical areas in the prices that can serve as reference for its operation.

The tendency

Experience tells us that markets move by trends, the investor has to identify them, and detect the factors that may suggest a change. A trend can last for years, months, days or even hours.

The technical analysis tries to detect the critical levels that are likely to change it. Traced trend lines generally give us support and resistance zones, price targets and, in general, many useful technical references.

It is recommended to operate along with the trend; it is much easier to succeed by operating in favor of the trend than against it. Bold trends tend to be less steep than bearish trends.

Indicators and figures

The same figures are repeated over and over again over time. The best known are the figures of “head and shoulders”, “triangles”, “rectangles”, “double maximum”, “double minimum” and “flag”.

The indicators usually indicate a level of overbought or oversold; they indicate future possible trends and corrections. We have trend-following indicators (moving average, MACD) and leading indicators that try to anticipate a turn or break within the trend (Stochastic, RSI, CCI).

The experience shows that the mood of the operators is repeated, knowledge of the development of the prices and the phrases of the market give us an idea of ​​âï½ïï½ââï½ïï½thethe future evolution of the prices.

Support and resistance

The second most important concept in the technical analysis (after the trend analysis) is support and resistance. There are levels that remain constant over time and that either are difficult to drill upwards (resistance) or difficult to break down (supports). It is logical that investors, over a long period of time, agree that at a certain level the price is good or bad, or that a certain price costs to break up.

Prices have “memory”: investors remember them and in the graphics you can see this phenomenon.

A rupture of a support or resistance, is always a technically significant fact, prices are released from barriers to go to the next critical level. Not always a break of a level that we think is a significant support or resistance, leads to an escape of prices. False ruptures sometimes occur. It is possible that despite a critical level being swept, the currency does not attract the interest of investors.

Five basic rules to operate based on technical analysis

1. Have a system and a strict discipline. If you abandon yourself and go to market psychology, it is very likely that you will fail. During a day you can change many times of opinion and what seems like a good purchase can become a disaster in a matter of hours. If you do not have references to operate and you abandon yourself to hope, you are lost.

2. If you have set a stop level, respect it. It is preferred to be faithful to a work dynamic and to absorb a small loss than to lose capital or discipline. If you do not get benefits, analyze why. The fundamental value is always to be fresh and prepared to take an advantageous position. Avoid holding positions against you or have a position without technical references.

3. Try to abstract from the euphoria or discouragement. This is not an easy task, since many times the target prices soar and the prices rise sturdy. Other times, pessimism dominates the environment; it is in this kind of situations where you can do your best operations. The psychological environment is usually a trap and it is important to know how to avoid it.

4. Set objective prices. It is preferential to undo an advantageous position at a reasonable price than abandon it to your fate. Unless the position is taken on a primary market floor it is preferred to be treated with the price objectives.

5. Tends to buy on supports and sell resistance. Many times those levels are clear and many people can see them. An uptrend tend to return to the support zone, that area usually gives a purchase signal even though it seems that the market is deteriorating. And a fall after a new maximum is a signal of purchase, a rebound after a new minimum is an exit signal.

Claim your free copy of the e-book Understanding The Myths Of Market Trends And Patterns to learn more about technical analysis strategies in the Forex market.

How To Use Bollinger Bands to Make You Profits

The Bollinger band: One of the oldest and best indicators to apply in 2018 Any Kind of proven good technical indicators requires to include several forms of volatility channels. A trend can be identified using a method like a volatility channel. It uses the theory that if the purchase price moves beyond a moving average…

The Bollinger band: One of the oldest and best indicators to apply in 2018

Any Kind of proven good technical indicators requires to include several forms of volatility channels. A trend can be identified using a method like a volatility channel. It uses the theory that if the purchase price moves beyond a moving average plus extra
amount, a tendency may have started.

The Bollinger band indicator is a volatility channel created by financial analyst John Bollinger more than 30 years ago. It is still one of the best indicators for trading among the various volatility channel methods.

The Bollinger band indicator uses two guidelines, first one is the number of days for the moving average and the second one is the number of standard deviations that you would like the band deviated from the moving average. The most frequent values ​​are 2 or 2.5 standard deviations.

In stats, the typical deviation is a way of measuring how to spread away from the values ​​of a data set in place are. But In finance, standard deviation functions as a means of gauging volatility.

What's actually the bottom line?

A Bollinger band indicator will adjust to Forex market volatility. It widens as volatility increases and narrows as volatility decreases. A long-period trend-following system using Bollinger band indicator might use two standard deviations and a 350-day moving average.

You can start an extended position if the prior day's close is above the channel peak, and have a short if the prior day's close is lower than the bottom of Bollinger band. Exit point would be when the prior day's close crosses back again through the moving average.

No system will win 100% of the time. What every investor should aim for is to have a system in place that will minimize losses while greatly improving their chances for profits. When using this valuable technical tool with other technical indicators that we will discuss in future articles, your chances of having successful trades greatly increase.

Conclusion

Use Bollinger Bands with other technical indicators such as MACD,% Bullish, and others to better determine when to enter your trades. This is particularly critical for investors in the Forex market where technical analysis tools will show strong entry and exit points to your trades that minimizing your losses.

The free e-book Understanding The Myths Of Market Trends And Patterns describes this and many other strategies to trade the Forex market.

Know All About Low Spread Brokers

Any Forex transaction without professional help is quite difficult as currency market is one of such tricky markets that can change the fate of the investor within the fraction of seconds. Low spread brokers are experts in delivering the promised to their clients. Before discussing the low spread brokers, let's look at a few things…

Any Forex transaction without professional help is quite difficult as currency market is one of such tricky markets that can change the fate of the investor within the fraction of seconds. Low spread brokers are experts in delivering the promised to their clients. Before discussing the low spread brokers, let's look at a few things you need to understand as an investor in currency markets.

• Spread: A spread is the difference between ask and the bid price. In short, it's the gain or loss you make out of your exchange transaction. There are a large variety of spreads such as bid-ask spread, yield spread, option-adjusted spread etc. Each of them has a dominant role to play in currency trading even though all would mean the same.

• Percentage in point (pip): pip is another term which traders use to indicate the spread of a transaction. For simple understanding, it is the difference that the trader makes from simultaneous buying and selling of contracts. In short, pip is nothing but a measure of spread.

The above mentioned are the basic aspects to be understood by any market participant in order to make some profit or to stay at a break-even. Typically, the majority of the Forex transactions for small traders happens over the counter while for the larger transactions there are specialized traders who execute transactions on behalf of the client in lieu of a commission. This commission is technically known as, spread and it varies depend on the volume of the transaction. Low spread brokers are one amongst such market makers who buy and sell contracts with some amount of risk involved. These brokers would trade in contracts with certain fixed or variable spreads depending upon the nature of the transaction.

Perhaps, these brokers are excelled in providing the least difference between the bid and ask prices, so giving an option to buy less and sell more. The key advantage of trading with Low spread brokers' lies in lowering the cost of the transaction. The smaller the spread the more you earn out of a transaction. Buying and selling through Low spread brokers help you in making an extra edge in every small transaction. You do not need to buy larger lots to make more profits, buy smaller lots on a low spread broker you would be able to make much better gains.

Especially it is advised for small investors to buy smaller lots on low spread brokers as their risk appetite and capital both are substantially low. For an experienced trader, they can either go for one of its kind or can choose the larger volumes if they are able to take high risks for higher gains.

How to Trade in Currency

Trading in currency in other words also known as foreign exchange is the world's largest financial market and was the area in which world's largest financial institutions were involved. Earlier the Forex transactions were of major concern of the big corporate houses, however as the time changes the need for foreign currency has made its…

Trading in currency in other words also known as foreign exchange is the world's largest financial market and was the area in which world's largest financial institutions were involved. Earlier the Forex transactions were of major concern of the big corporate houses, however as the time changes the need for foreign currency has made its way through corporate homes to individuals who are engaging in some sort of international transactions. Although the volume of transactions and the people involved in currency trading is increasing exponentially, still there is an information asymmetry between the investors and the market. Thus, to mitigate the information asymmetry and to provide the individual investor all the required information, let's look at a few basic things need to be paid attention,

• Currency trading market Vs other markets: All the other markets in the entire world are having a regulatory authority who keeps a note of every transaction occurring within their vicinity. But in case of the currency market, there is no such regulating authority or mediator who keeps a check of all transactions. Transactions between parties happen through pre-arranged credit agreements. These ad-hoc arrangements are known for providing liquidity requirements of the institutions and individuals.

• Immateriality: Trading in currency market literally does not involve any kind of physical transfer. All the transactions happen online without any involvement of physical currency. All the gains and losses are calculated and netted in respect currency accounts.

• Intermediation: In the currency market, there is no formal intermediation due to which there is no place for any sort of broker or agent. As there are no intermediaries there is no question of commission. All the gains and losses are individualistic and are the results of one's own deeds.

Above mentioned are the few basic aspects that are needed to be known by everyone who is participating in currency markets to mitigate the information asymmetry and to avoid the risk of loss. Beside, above as we all know the transactions in currency markets always happen in pairs of contracts. The value of the currency in pairs is determined by the purchasing power of the currency in the relevant markets. There are certain pair of treaties that are considered exotic in the world's currency market and they are,

• Euro / US Dollar
• US Dollar / Japanese Yen
• Britain Pound / US Dollar
• US Dollar / Swiss Franc

The above-mentioned treaties are treaties of the world's strongest economies that makes them more precious and expensive across the globe. Not only these combinations, any above currency in combination with other currencies out of this pairs trade in highest volumes in almost all the Forex markets.

Beginners’ Guide to Own Bitcoin Cryptocurrency

Bitcoin Cryptocurrency is buzzing all over the world, whether you are on the internet or any media. It is one of the most exciting and craziest things happened that comes into existence in the last few years only. More importantly, you can earn an awesome return by bitcoins trading or you can keep it for…

Bitcoin Cryptocurrency is buzzing all over the world, whether you are on the internet or any media. It is one of the most exciting and craziest things happened that comes into existence in the last few years only. More importantly, you can earn an awesome return by bitcoins trading or you can keep it for a long term.

You may be heard about Stocks, Commodities, Forex, and now a new currency called Bitcoin trading that impacts very on our lives. In this beginner's guide to Bitcoin cryptocurrency, you will get to know the ABC of Bitcoin.

About Bitcoin Cryptocurrency

The emergence of Bitcoin is still not known but a paper was published in October 2008 under the pseudonym Satoshi Nakamoto held from Japan. His identity is still unknown and believed to have approximately one million bitcoins valued more than $ 6 billion USD as of September 2017.

Bitcoin is a digital currency commonly known as cryptocurrency and is free from any geographical boundary. It is not regulated by any government and all you need is an internet connection. As a newbie, Bitcoin technology may confuse you and a little bit tough to know about it. However, I will help you dig it deeper and how you can also do your first Bitcoin trading at ease.

Bitcoin Cryptocurrency works on blockchain technology which is a digital public ledger and shared by anyone in the world. You will find your transactions here whenever you do any Bitcoin trading and anyone can use the ledger to verify it. The transaction done will be completely transparent and is verified by blockchain. Bitcoin and other cryptocurrency are the parts of blockchain and are an awesome technology that runs on the internet only.

Key Terms Related To Bitcoin Cryptocurrency

Before you ready to own your first Bitcoin, it is better to know the key terms related to bitcoins. It is also termed as BTC which is a part of bitcoin and 1 bitcoin equals 1 Million bits. With the emergence of bitcoins, some other alternative cryptocurrency also evolved. They are often called Altcoins and includes Ethereum (ETH), Litecoin (LTC), Ripple (XRP), Monero (XMR) and many others.

XBT and BTC are the same things and commonly abbreviated for bitcoin. Mining is another term used a lot and it is actually a process done by computer hardware for the Bitcoin networks.

Things You Can Do With Bitcoin

You will be able to trade, transact, accept and store bitcoin. You can send it to your friends, request from a friend and store it in your digital wallet. Even, now you can top-up your mobile / DTH directly by paying through bitcoin.

Transaction cost is low as compared to PayPal, Credit cards, and other online intermediaries. Furthermore, it also protects your privacy that may get leaked on the internet while using credit cards. It is extremely secure and nobody can seize or steal coins. Due to its transparency in the system, it is also not possible to manipulate because of the shared public ledger. You can verify transaction from anywhere and at any time.

Demand is likely to rise as the total production of bitcoins is to be limited to 21 million only. Japan has already legalized it and other countries may follow it soon and the price may hike further.

I will be covering more on Bitcoins in detail in the upcoming days where you will learn great stuff of bitcoin trading. You can comment your views and ask anything relevant to bitcoins.

If you found this beginner's guide to Bitcoin Cryptocurrency useful, then do share and like it on social networks.

Digital Currency

Cryptocurrency Cryptocurrency is a digital currency. It is also called a virtual currency. It is a digital asset that handles its transactions using cryptography, cryptography is used impenetrably and confirms the transactions.In many countries, cryptocurrencys are used as alternative treaties. Bitcoin was added in 2009 as the first decentralized cryptocurrency. After that, many different cryptocurrency…

Cryptocurrency

Cryptocurrency is a digital currency. It is also called a virtual currency. It is a digital asset that handles its transactions using cryptography, cryptography is used impenetrably and confirms the transactions.In many countries, cryptocurrencys are used as alternative treaties. Bitcoin was added in 2009 as the first decentralized cryptocurrency. After that, many different cryptocurrency came onto the market. These are usually known as Altcoins. These currencies use decentralized management as a counterweight to centralized digital money and central banking systems.

Distributed management uses Bitcoin's blockchain transaction database like a paid ledger. An encryption device generates decentralized cryptocurrency at a predefined price, which is communicated to the public. In centralized banking and the Federal Reserve System, boards of directors or governments managing the granting of currency through printing units of cash, and the exchange is carried out with digital bankbooks. However, in a decentralized cryptocurrency, companies or governments can not produce new entities or provide support to various companies, banks, or companies that hold an asset.

Satoshi Nakamoto Group created the undering technical gadget for decentralized cryptocurrency. Almost a thousand cryptocurrencies were created by September 2017, most of them comparable to Bitcoin. In cryptocurrency systems, security, integrity and general ledgers are maintained with the help of a team of mutually suspicious parties known as miners, where the general public is validated by the use of their computer systems and timestamp transactions are maintained by specific timestamp scheme. Miners, in order to preserve the security of a cryptocurrency ledger for economic reasons.

Most cryptocurrency are constantly minimizing the production of currency, capping the entire amount of currency in circulation and mimicking valuable metals. Unlike ordinary treaties, which are held via currency institutions, such as holding cash in stock, cryptocurrency are difficult to seize by law enforcement. This issue is due to the use of cryptographic technologies. Law enforcement officials faced this trouble in the Silk Road case, in which Ulbricht's Bitcoin stash was “encrypted”. Crypto-treaties like Bitcoin are pseudonyms, although add-ons such as Zerocoinhave have been suggested to provide authentic anonymity.

Some unknown person or human befits used the title Satoshi Nakamoto and added Bitcoin in 2009, the first digital currency. SHA-256, a cryptographic hash function, was used as work scheme in it. Namecoin used to be located in April 2011. Litecoin used to be released, in October 2011, Scrypt was the hash function in it. Cryptocurrency, Peercoin used the hybrid as work proof. IOTA did not use blockchain, it uses the tangle. Built on a customized blockchain, The Divi Project permits effortless buying and selling between currencies from the wallet and the ability to use non-public identifiable information for transactions. Afterwards many unique cryptocurrencies have been created, however only a few have been successful, as they had been lacking of technical innovations.

The first bitcoin ATM used to be installed in Texas, the USA on February 20, 2014, by the creator of Robocoin, Jordan Kelley.This ATM was identical to bank ATMs the help of scanners. Almost 1574 bitcoin ATMs had been mounted in distinct countries in 2017 with the common of 3 ATMs had been hooked up per day in 2017.

The legal stature of cryptocurrencies deviate heavily from country to country and is still enduring in many of them. Although some countries have clearly allowed their use and trade, others have forbidden it. Beside, various government institutions have restricted bitcoins differently. In 2014 China Central Bank prohibited the treatment of bitcoins by financial institutions in China. In Russia, however, cryptocurrency are legal, although it is criminal to use other currency to buy goods except for Russian ruble. The United States Internal Revenue Service allowed bitcoin to be subject to capital gains tax, on March 25, 2014 this ruling clarifying the legality of bitcoin.

36 Major Industries Heavily Investing in Blockchain

For 2018, the markets started off in a mostly positive direction, and have now started heading in reverse. The Dow plunged over 665 points, posting the steepest weekly decline in over two years. As main markets decline, investors immediately start re-assessing their risk tolerance, and Crypto Currency (CC) investors are re-assessing risk even more, given…

For 2018, the markets started off in a mostly positive direction, and have now started heading in reverse. The Dow plunged over 665 points, posting the steepest weekly decline in over two years. As main markets decline, investors immediately start re-assessing their risk tolerance, and Crypto Currency (CC) investors are re-assessing risk even more, given all the discussion about how volatile this market space can be. It is not the usual mainstream economic drivers causing the CC plunge – it is fear, which is wild contagious across all investment categories. Markets are large driven by human fear and greed, two emotions that cause most investors to be unsuccessful over the long term. Cold hard analysis, coupled with “smart” Buy / Sell strategies, removes emotion from your investment decisions and paves the way to success. Strong bull markets need to correct once in a while, to restore balance and set the stage for the next run up.

CC Exchanges can be significantly less nimble than the mainstream stock market exchanges; however, there are several CC Exchanges that accommodate BUY and SELL LIMIT orders. Using those facilities as part of an “Entrance and Exit” strategy is highly recommended.

The news in the CC markets throughout January was mainly focused on the declining prices of almost all the coins. CC price declines preceded the overall stock market decline and are a reaction to more and more national governments indicating that they want to either ban CC's, or increase their means to control and tax them. With all the fear that is now being generated in the main stock markets, this is a perfect storm wherein CC investors have multiple sources generating fear.

Welcome to the world of cryptos, where you can make a fortune in months, and see things crash even faster. Clearly, investing anything more than a small proportion of your portfolio in cryptos is a risky proposition. But if you believe, as we do, that the concepts behind Bitcoin and other cryptos, specifically the blockchain distributed database – are sound, then it makes sense to invest in cryptos, and especially indirectly in the blockchain infrastructure that supports Crypto Currencies, a technology that is expanding into many other sectors.

Today, there are over 36 major industries heavily investing in blockchain technology to revolutionize their industry, by cutting or eliminating costs, and dramatically improving efficiency and transparency. We are talking about a wide spectrum of industries including:

  • banking
  • law enforcement
  • messaging apps and ride hailing
  • IoT (internet of things)
  • cloud storage
  • stock trading
  • insurance
  • healthcare
  • elections
  • global forecasting
  • retail
  • supply chain management
  • gift cards and loyalty programs
  • government and public records
  • charity
  • credit history
  • wills and inheritances
  • and many other industries

We believe that we have years of incredible change ahead of us before this market finally settles on a standard. Yes, we will see many cryptos come and go, but much like Amazon, Apple, Google, and Facebook, there will be a few great winners.

Stay tuned!

Bitcoin: All It’s Hyped Up to Be?

Had you spent $ 27 on Bitcoin when it was created by Satoshi Nakamoto in 2009 your investment would now be worth over $ 37,000,000. Widely regarded as the greatest investment vehicle of all time, Bitcoin has seen a meteoric rise during 2017 going from $ 777 all the way to $ 17,000. Creating millionaires…

Had you spent $ 27 on Bitcoin when it was created by Satoshi Nakamoto in 2009 your investment would now be worth over $ 37,000,000.

Widely regarded as the greatest investment vehicle of all time, Bitcoin has seen a meteoric rise during 2017 going from $ 777 all the way to $ 17,000.

Creating millionaires out of opportunistic investors and lending financial institutions open-mouthed, Bitcoin has answered its critiques at every milestone this year and some believe this is just the beginning.

The launch of Bitcoin futures on December 10th, which for the first time will allow investors to enter the Bitcoin market through a major regulated US exchange, implies that we are just getting started.

What makes Bitcoin so valuable is that there is a finite amount in existence. There will only ever be a maximum of 21 million Bitcoins and unlike normal fiat treaties you can not just print more of them whenever you feel like. This is because Bitcoin runs on a proof of work protocol: in order to create it, you have to mine it using computer processing power to solve complex algorithms on the Bitcoin blockchain. Once this is achieved, you are rewarded with Bitcoin as payment for the “work” you have done. Unfortunately the reward you get for mining has decreased drastically almost every year since Bitcoin's inception, which means that for most people the only viable way to get Bitcoin is buying it on an exchange. At the current price levels is that a risk worth taking?

Many believe Bitcoin is simply a bubble. I spoke to cryptocurrency expert and long term investor Duke Randal who thinks the asset is overvalued, “I would compare this to many supply and demand bubbles over history such as Dutch Tulip Mania and the dot com bubble of the late 90s. based, and when you look at Bitcoin's functionality as an actual currency it is almost embarrassing. ” For those who do not know, the dot com bubble was a period between 1997-2001 where many internet companies were founded and given outrageously optimistic valuations based purely on speculation that later plummeted 80-90% as the bubble began to collapse in the early 2000s. Some companies such as eBay and Amazon, recovered and now sit far above valuations but for others it was the end of the line.

Bitcoin was originally created in order to take power away from our financial systems and put people in control of their own money, cutting out the middle man and enabling peer to peer transactions. However, it is now one of the slowest cryptocurrencies on the market, its transaction speed is four times slower than the fifth largest cryptocurrency and its nearest competitor for payment solutions Liteecoin. Untraceable privacy coin Monero makes transactions even quicker, boasting an average block time of just two minutes, a fifth of the time Bitcoin can do it in, and that's without anonymity. The world's second largest cryptocurrency, Ethereum, already has a higher transaction volume than Bitcoin despite being valued at only $ 676 dollars per Ether compared to Bitcoin's $ 16,726 per Bitcoin.

So why is Bitcoin's value so high? I asked Duke Randal the same question. “It all goes back to the same supply and demand economics, reliably there is not very much Bitcoin available and its recent surge in price has attracted a lot of media attention, this combined with the launch of Bitcoin futures which many see as the first sign Bitcoin is being accepted by the mass market, has responded in a lot of people jumping on the bandwagon for financial gain. new investors are entering the market without understanding blockchain and the underlining principles of these treaties meaning they are likely to get burnt. ”

Another reason is that Bitcoin is extremely volatile, it has been known to swing up or down thousands of dollars in less than a minute which if you are not used to nor expecting it, causes less experienced investors to panic sell, resulting in a loss. This is yet another reason Bitcoin will struggle to be adopted as a form of payment. The Bitcoin price can move substantively between the time vendors accept Bitcoin from customers and sell it on to exchanges for their local currency. This erratic movement can wipe out their own profitability. Will this instability go away any time soon? Not likely: Bitcoin is a reliably new asset class and although awareness is increasing, only a very small percentage of the world's population hold Bitcoin. Until it becomes more broadly distributed and its liquidity increases significantly, the volatility will continue.

So if Bitcoin is pretty useless as an actual currency, what are its applications? Many believe Bitcoin has moved on from being a viable form of payment to becoming a store of value. Bitcoin is like “digital gold” and will simply be used as a benchmark for other cryptocurrency and blockchain projects to be measured against and traded for. Recently there have been stories of people in high inflation countries such as Zimbabwe buying Bitcoin in order to hold on to what wealth they have rather than see its value decline under the recklessness of its central banking system.

Is it too late to get involved in Bitcoin? If you believe in what these cryptocurrency will do for the world then it is never too late to get involved, but with the cost of Bitcoin being so high it is a boat for some which has already sailed. You might be better off having a look at Litecoin, up 6908% for the year or Ethereum which is up an incredible 7521% for the year. These newer, faster contingencies hope to achieve what Bitcoin first set out to do back in its acceptance in 2009 and replace government run fiat treaties.

Who knows what the price of these courses will be ten, fifteen or even twenty years from now? One thing is certain though, we better strap ourselves in as it is going to be a wild ride.