Category: Crypto - Page 7 - Forex Dominion

Bitcoin fell more than USD 2000 in one day: why is it so volatile?

The cryptocurrency can only become an accepted form of payment if its volatility stabilizes, but that depends on a constant conviction that it represents the future of the money

The volatility of Bitcoin frightens many potential users of the cryptocurrency. This is due to the close relationship between volatility and risk: the higher the level of volatility, the greater the risk associated with the asset. In the same way, however, risk can be a source of attraction: the more volatile the price of an investment, the higher the yield – or loss – that can be obtained from it. These general rules also apply to Bitcoin.

Bitcoin is considerably volatile compared to other assets, but much less volatile than it was before. Over time, fluctuations in the price of the main cryptocurrency have been decreasing in percentage terms. On average, the daily volatility rate (how much the price changes per day) has been mostly below 5% since 2015, compared to an average volatility of 1.2% for gold. In 2016, Bitcoin was less volatile than Twitter shares, and just as volatile as oil.

However, Bitcoin continues to register violent price oscillations. On Wednesday, the cryptocurrency fell USD 2,041 from a daily maximum (and annual peak) of USD 13,880 to USD 11,200, the biggest daily price movement since January 2018.

Binance Coin (BNB): complete tutorial for beginners

by rcanessa

The powerful and popular cryptocurrency exchange Binance has created its own cryptocurrency that functions as an internal gas. Supported by a well-established company, Binance Coin or BNB is here to stay and we explain why.

What is Binance Coin?

Symbol: BNB
Release date: 06.27.2017
Maximum amount: 200 million BNB

Binance Coin is the official cryptocurrency of the crypto exchange Binance, whose name is an acronym composed of the words “binary” and “finance”.

Expiration of Bitcoin CME futures generate volatility in the markets

by rcanessa

In past periods, the maturity of Bitcoin CME futures resulted in price movements
CME recorded record volumes in the month of May, moving more than 33,000 contracts.

On Friday, May 24, some 2,710 contracts expired for the equivalent of 13,500 bitcoins settled by the CME. The maturity of these futures contracts increased the volatility of prices in the Bitcoin market. Taking as reference the past values, it can be observed that in the days following this type of events, the prices of the cryptocurrency with the highest capitalization in the world begin to move.

Bakkt Bitcoin futures platform will start testing in July

by rcanessa

- The company will offer different types of future contracts in July.
- A go-ahead from customers and regulators could speed up its launch.

The Intercontinental Exchange (ICE) subsidiary, Bakkt, is still in the process of developing its futures platform aimed at institutional capital. Through a post on Medium, the company announced on Monday May 13 the development of user acceptance tests (UAT, for its acronym in English) for bitcoin futures and crypto custody, which are expected to begin in July of this year.

The Atlanta-based company said it is continuing to work in partnership with the Commodity Futures Trading Commission (CFTC) of United States to build a platform that meets customer requirements in terms of clarity and stability, but that also conforms to all standards of US federal regulations. n this sense, the objective is for the Bakkt bitcoin futures to comply with all regulations and at the same time be a really attractive product for institutional investors.

Review of ForexTime Broker (FXTM) – Regulated Forex and CFD Broker

by rcanessa

ForexTime Broker Review

ForexTime (FXTM) is a Forex and CFD broker from Europe which allows trading with Forex, precious metals and Contracts For Difference based on indices, stocks and commodities. This company offers a variety of services, including ECN execution, access to many markets, modern trading platforms, solutions of Forex automated trading and more.

It was founded in 2014 and has its headquarters located in Cyprus and customer service centers in several countries, including France, Spain and the United Kingdom among others. It is currently regulated and registered with several financial services regulators such as CySEC, for example.

Bitcoin Markets Trend For 2019

by rcanessa

As proven in 2017, Bitcoin markets are overly sensitive in their reactions. In 2017, Bitcoin price soared by 1,800% to peak at over $19,000 and generated a market capitalization of over $250 billion. In contrast to 2017’s movement, the turmoil during 2018 led cryptocurrencies into a great crash. Bitcoin had a total market capitalization of around $65 billion by the end of 2018, reversing 70% of its 2017 market value in a year marked by volatility and higher volumes.

Bitcoin markets started the year on a smooth downwards swing. The hacking of the Japanese exchange Coincheck at the end of January, China’s talks regarding cryptocurrency banning and Facebook’s ban on cryptocurrency and ICO advertisements were some of the factors that added pressure on Bitcoin’s price. Certainly, it has not been a good period for the most famous cryptocurrency and the sector in general.

The US Securities and Exchange Commission (SEC) also had a negative effect on Bitcoin markets after rejecting BTC ETFs. A further drop was seen in September, which is believed to have been caused by a single wallet discharging nearly $1 billion of BTC into the market.

Are Cryptocurrencies the New Fiduciary Money?

by rcanessa

There is no denying the irresistible hype surrounding cryptocurrencies. The digital currency has captured the imagination of investors, journalists and the general public alike, to the point that some even consider it a worthy pretender to the throne currently held by fiat money. So, what are the chances that the cryptographers will overthrow the fiduciary money and become the dominant currency system?

Almost 50 years have passed since the world economy shifted from the commodity-backed currencies to the fiduciary monetary system. Concerned about the diminishing economic influence of the United States and the rising costs of the Vietnam War, then-President Richard Nixon decoupled the dollar from the US gold reserves and ended the Bretton Woods Agreement. Crypto-enthusiasts make us believe that the stratospheric ascent of assets like Bitcoin, Ethereum and Ripple sounds like a resounding coup de grace for fiat money.

They argue that, after half a century of strict financial regulation by governments and central banks, it is time for individuals to regain full control of their money, a noble goal that can be achieved if the digital currency becomes the status economic quo.

So, what advantages do cryptocurrencies like Bitcoin offer over fiat currencies?

To begin with, they are convenient. Cryptocurrencies have the potential to save companies and financial services companies a significant amount of time and money by eliminating the transactions intermediaries; commissions for these transactions also tend to be significantly lower. And that’s not all: an important criticism of the fiat system is the way in which the value of a country’s currency can change beyond national borders. The Nigerian Naira is a good example of this: its value drops by 30% as soon as it is taken out of Nigeria. Digital currencies, for the most part, are not issued by any country or state and, therefore, are not subject to the same geographical fluctuations.

What trends are ahead for the crypto industry in 2019?

by rcanessa

While 2017 was celebrated as one of the most impressive bull markets in cryptocurrencies’ history, 2018 saw the crypto rocket coming back to earth. Crypto enthusiasts are not discouraged however and there are some exciting upcoming developments and trends coming up in 2019.

Security Token Offerings (STOs)

2018 was the year where the door opened for security tokens (STO) and according to Nasdaq, is “set to take centre stage in 2019”. There will be more infrastructure set in place with the likes of security token exchanges, which will either come in the form of standalone exchanges or as new parts of existing platforms. A shift from ICO to STO is already happening with the need for more stable and safe investment opportunities that is paving the way for STOs.

Binance Coin (BNB) surprises with its 22% profit

by rcanessa

Binance Coin, the native token of the crypto exchange Binance, registered on Tuesday up to 22% of gains when entering to the index of the first 10 cryptocurrencies.

The Binance to Dollar (BNB/USD) exchange rate set its intraday high at 8,788 in the open of the European session. Previously, the pair opened at 7.158 as part of its rally previously underway. On January 31, the BNB/USD traded as low as 6,079, raising the pair’s weekly earnings to 44.5%.

From a technical perspective, the BNB/USD previously had a downward trend within a falling wedge formation. Ideally, as the contracts and the volume of the wedge begin to fall, the underlying asset attempts a break-up action.

CoinField the Canadian cryptocurrency exchange based on XRP

by rcanessa

On November 1, 2018, the Canadian cryptocurrency exchange CoinField, which uses XRP as the base currency, announced that it had entered into operation with 20 currency pairs against the XRP.

CoinField, based in Vancouver and founded in December 2017, calls itself “the best cryptocurrency exchange platform in Canada with the largest portfolio of currencies available in that country.” First, the company stated that it was exploring the idea of using XRP as the base currency on September 22.

However, it was not until November 1 that CoinField tweeted that its trading platform had begun to operate, and that it was available in 61 countries.

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