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Month: August 2021 Page 1 of 3

Arbitrage Trading — Essentials of This Low-risk Strategy

Are you unsure of high-risk cryptocurrency trading strategies? The popular low-risk arbitrage trading may be best for you! Arbitrage trading is popular among crypto traders and helps realize profits from the barely noticeable price differences across different markets. 

In this article, we’ll examine this strategy, consider the risks, advantages, and disadvantages of implementing it, and suggest a system to simplify its execution. 

What Is Crypto Arbitrage Trading? 

Crypto arbitrage is the simultaneous trading of a cryptocurrency from numerous exchanges, platforms, or locations to profit from the price difference between each source. It’s noteworthy that the profit realized in this strategy is relatively low in percentage terms. An arbitrage trader sells the same quantity of the asset that they buy elsewhere. 

Types of Arbitrage Trading 

There are three common types of arbitrage:

  • Two-currency Arbitrage: This technique exploits the difference between various quotes of two cryptocurrency pairs rather than two cryptocurrencies within the same pair.
  • Covered Interest Arbitrage: This strategy sees the trader capitalizing on the difference in two countries’ interest rates. Such traders have to account for their exchange rate risk through a forward contract.
  • Triangular Arbitrage: Traders who deploy this tactic optimize the difference between three varying cryptocurrencies. They attempt to profit from these three by exchanging one of the coins for the other two before exchanging the cryptocurrency back to its original form. 

How Does Crypto Arbitrage Trading Work?

  • Arbitrage trading depends on your ability as the trader to exploit the price difference of an asset in varying markets. Arbitrage opportunities are typically fleeting; therefore, automated tools are common among arbitrage dealers. 
  • Suppose coin X appears on Binance and Coinmama, and the former quotes the asset at $5 per unit while the latter lists each unit at $4.50. One can capitalize on the fifty-cent difference.
  • To capitalize on this price difference using arbitrage, the trader buys each unit of coin X at $4.50 on Coinmama and lists on Binance at $5, thereby earning $0.50 per unit. They may earn more or less, depending on the cryptocurrencies’ differences. What’s important is that the profit per unit covers the expenses per unit. 

Common Risks Associated with Arbitrage Trading

There are no infallible strategies in cryptocurrency trading. The following are five common risks traders may experience as they arbitrage.

  • Execution Risk: A significant requisite for optimum profit realization from arbitrage is that the two trades finish simultaneously. However, this expectation is unrealistic in most cases. Only one part of the deal executes more often than not, resulting in less than the trader targeted. 
  • Mismatch: Buying and selling a non-identical asset may cause a mismatch risk. This is because the blockchain may not allow for trading the same asset at varying prices at the same time in foreign markets. The trader has no alternative but to conduct the transaction, assuming that both assets have correlating prices.
  • Counterparty Risk: Arbitrage may suffer counterparty risks when involving cash transactions. This implies that one of the parties in a transaction may fail to fulfill their part on time. The counterparty risk poses a terrible issue for a trader who conducts multiple trades simultaneously. An arbitrageur may suffer massive loss when numerous counterparties fail. 
  • Liquidity Risk: There are noticeable odds of an arbitrage getting leveraged. A trader may have to borrow money should a margin obligation suddenly arise or in the case of a non-identical asset. The trader may then be unable to recoup their investment due to a lack of sellers or inefficient markets. 
  • Assessment Risk: The assessment risk differs from other risks, as it doesn’t concern financial capability. Information arbitrage relies on the trader’s insight to properly evaluate an underrated piece of information to realize its significance. 

Advantages of Arbitrage Trading

Arbitrage trading is usually safer than buying coins to hold. The strategy assures you of efficient, streamlined means to make profits. The benefits of arbitrage trading are:

  • Lower Risk: Arbitrage trading lessens the risks associated with buying and selling cryptocurrency, thanks to the neutral nature of most arbitrage techniques in the market. Arbitrage trade presents numerous opportunities to profit when the market is heavily volatile — courtesy of widespread price differences. 
  • Uncorrelated Performance: Price-oriented arbitrage helps improve portfolio diversification, resulting in enhanced risk-adjusted-performance. An asset may earn you profit even in a bearish market if you recognize the appropriate information. 
  • Good for Everyone: Arbitrage trading improves market efficiency and liquidity. Thus, traders may make a profit and feel good simultaneously.

Disadvantages of Arbitrage Trading

  • Leverage: The arbitrageur may suffer overconfidence, which may cause them to over-lever their moves. This often results in capital destruction for a long while.
  • Considerable Costs: Taxes, slippage, and transaction costs incurred in buying and selling cryptocurrencies can be costly. Add the price you pay to secure reliable data.
  • Capital: The price difference is typically minuscule in many arbitrage techniques. Therefore, traders may earn huge profits solely if they invest a significant sum of money and optimize their leverage with the utmost margin rates. 

How to Profit More Conveniently from Arbitrage Trading

Crypto arbitrage trading requires a lightning decision-making ability and reliable information. Consequently, it’s recommended to use a resource that offers both. Obolon9 is an automated cryptocurrency trading system that provides 24/7 market surveillance and instant notifications when the market meets set parameters. Obolon9 offers the first 30 days of use for free. 

Conclusion

Crypto arbitrage trading is a low-risk strategy among traders that consequently offers low profits. A person may have to invest a significant amount before realizing a considerable profit. The strategy may have its risks and disadvantages, but few crypto techniques offer less risk. Arbitrageurs may engage automated cryptocurrency trading systems, like Obolon9, for optimum trade results.

Understanding What Tether Is: What Are the Unique Benefits of USDT?

Tether (USDT) is a popular stable coin that helps investors reduce the market’s volatility. Tether is available across most exchanges and is the most used cryptocurrency for fiat-crypto exchanges. However, how does USDT achieve such stability in the notably erratic cryptocurrency industry?

We’ll see below. This article will answer questions on what Tether is, how it works, and its advantages and disadvantages.

What Is Tether (USDT)?

Tether is a cryptocurrency network that ties the value of its coins to the value of the specific fiat supporting it. Fiat currencies (for example, US dollars, euros, and pounds sterling) are typically more stable than cryptocurrencies may ever be. USDT is associated with the US dollar, which means that every USDT token has the same value as one dollar. 

The same applies to other Tether tokens, such as CNH₮ (Tether Chinese Yuan) and XAU₮ (Tether Gold), according to the fiat affiliation they keep. Tether serves as a means of exchange and storage — aside from the traditional functions of cryptocurrencies as speculative. 

Understanding the Tether Network

Tether LTD is the owner of the Tether network. The enterprise is responsible for accepting fiat deposits and withdrawals on clients’ behalf and for minting and burning Tether tokens according to the administered reserves. 

Tether originally started on the Bitcoin blockchain through the Omni Layer protocol, trading and creating digital assets on the network. With this mechanism, Tether may create and destroy tokens using the amount in custody. The Omni Layer protocol keeps track of Tether circulation. 

The reports of Tether’s transactions are available on the Bitcoin blockchain — courtesy of Omni Layer. Users track their confirmed trades through Omni Explorer. Tether was also listed on a notable Bitcoin sidechain, Liquid, as of 2020. 

The Tether network has incorporated various other blockchains, notably Ethereum, Tron, and EOSIO. This development allows these blockchains to mint new assets natively. Ethereum remains the largest USDT market, as it stands. 

Tether’s Use Case

USDT represents US dollars on cryptocurrency blockchains. It is commonly classified as a stablecoin — a  group of cryptocurrencies that prioritize price stability and are supported by a reserve asset. Tether LTD issues USDT as IOUs (I Owe Yous), an acknowledgment that they owe you the dollars you invest. Whoever invests has their dollars deposited at Deltec Bank in the Bahamas. 

  • Tether has solidified its blockchain roots, having established itself on nine public ones currently, including Bitcoin Cash, Algorand, Ethereum, EOS, Bitcoin Omni & Liquid, Aolanay, and OMG Network. This expansion ensures that Tether is usable on the most popular cryptocurrency blockchains.
  • Holders of USDT may spend this coin without waiting on third-party permission, thanks to their private keys. Anyone with access to public blockchains may audit Tether transactions. Furthermore, the US dollar’s stability helps regulate USDT, limiting the crypto space’s volatility. Also, this dollar association ensures that investors may use USDT as collateral in DeFi and conduct arbitrage trades when asset prices differ, according to the platform. 
  • In conclusion, Tether (USDT) reduces the volatility risk in the cryptocurrency industry, diversifies protocol risk, and limits exchange risk since holders may exchange across all platforms. Tether enjoys the cryptographic guarantees of blockchain-recorded and digitally held assets. 

Advantages of Tether

Tether is different from typical cryptocurrencies. This implies that it offers benefits that aren’t achievable with coins like BTC and ETH.

  • Absence of Volatility: Tether conveniently avoids volatility, ensuring that demand doesn’t affect the coin’s value. One Tether token would be equal to $1 in most cases. 
  • Several Blockchains: Tether has established itself across at least nine public blockchains. What does this mean? You may trade the coin across all these networks. Take Ethereum and Solana, for example. 
  • As Beneficial as Bitcoin and Altcoins: Despite the absence of volatility, USDT fulfills nearly every function of a cryptocurrency. What’s better? USDT holders may enjoy relatively affordable transaction fees and improved security. In addition, traders may use it to store the value of their cryptocurrencies whenever they are bothered about prices falling. This is because Tether retains your cash by maintaining a stable price, unlike cryptocurrencies that may decline unexpectedly.
  • May Access All Exchanges: Some crypto exchanges don’t allow fiat transactions. Fortunately, USDT supports borderless payments and may be traded on such platforms. Users don’t have to use cash. Also, the costs are remarkably low to cash out USDT for fiat on the Tether network.

Disadvantages of Tether

Few cryptocurrencies are without shortcomings. Let’s see some Tether limitations that may discourage users.

  • Non-transparent Audits: Tether transactions are auditable on Omni Layer, but the company itself has failed to give a full public audit. Its last audit in 2017 wasn’t comprehensive, and there are no talks of a new audit yet. Currently, there isn’t a  complete professional public audit of Tether’s dollar reserve.
  • Anonymity Issues: Every transaction on the Tether website requires account confirmation and verification. Ultimately, the promised anonymity is lost.
  • Centralized and Trust Dependent: Tether may claim a decentralized network, but the company and its dollar reserve are centralized. Furthermore, the whole 1:1 Tether arrangement depends on the company’s capability and willingness to maintain the ratio.
  • Dependent on Third Parties: Tether’s ability to keep functioning depends on the company’s relationship with banks and legal authorities. Therefore, Tether has to strive to maintain a good relationship with these institutions at all times. 

How to Trade Tether (USDT) Automatically

Trading USDT profitably significantly depends on your trading resources. As such, automated trading systems such as Obolon9 are recommended. Obolon9 surveys the market and alerts you of movements in the parameters you’ve set. This system helps traders make timely decisions with ease.

Summary

Tether (USDT) is a stablecoin that holds a 1:1 value with the US dollar. The coin is free of the extreme price swings that characterize cryptocurrencies. Yet, it performs nearly every function of traditional cryptocurrencies, like BTC, ETH, and LTC. USDT is great for storing value when traders are worried about volatility. In addition, Tether facilitates trading across nearly every cryptocurrency exchange, thanks to its incorporation into the most used blockchains.

Popular Trading Indicators: Stochastic RSI and Bollinger Bands

Stochastic RSI (StochRSI) and Bollinger Bands are two well-known technical indicators that may help traders make better trade decisions. Both indicate different metrics but are ultimately useful for realizing more profits. In this article, we’ll assess each signal and consider a reliable tool for implementing both. 

What Is Stochastic RSI?

StochRSI (Relative Strength Index) is a trading indicator that helps gauge an asset’s price momentum. Cryptocurrency traders use this oscillator to determine whether the market has oversold or overbought a coin. This technical analysis (TA) is a derivative of RSI values rather than crypto price data. StochRSI is extremely sensitive to market changes; therefore, it’s able to produce considerable trading signals that you may find useful.

StochRSI is most useful when within the range of its upper or lower extremes. Zero to one hundred numerical scales (marked at 20 and 80) from StockRSI. The scale labels overbought and oversold market movements over 80 and below 20, respectively. 

However, the RSI indicator may not always be dependable. Why? The presence of false signals and numerous fake-outs make it challenging to assess the exact demand and supply conditions. Also, the indicator may remain over 80 or below 20 for prolonged periods. Experts recommend the use of other indicators alongside the RSI.

Main Features

Three key features differentiate the StochRSI from other technical analysis tools. 

  • StochRSI is a technical evaluation indicator that compares an asset’s price range and closing price to predict the stock market’s movement. 
  • StochRSI performs an exclusive function in cryptocurrency trading as it analyzes market momentum to provide reliable interpretations for oversold and overbought coins.
  • The price of overbought coins moves faster to oversold on the StochRSI than the Relative Strength Index. 

But you may ask, “What is the difference between RSI vs. Stochastic?” RSI is an instrument to measure the rate of price movements — in other words, speed — while the Stochastic indicator gauges an asset’s price momentum. Working together, they form the StochRSI that measures RSI momentum.

How to Calculate StochRSI

The formula for Stochastic RSI is: 

  • StochRSI = RSI – Lowest RSI divided by Max RSI – Lowest RSI

Where:

  • RSI means the current RSI reading.
  • The lowest RSI means the minimum RSI reading for the last 14 periods.
  • Max RSI means the maximum RSI reading since the last 14 oscillations. 

Stochastic RSI

These values are derived from RSI readings. The calculation involves 14 data oscillations, and that’s the RSI’s value input too. The StochRSI formula, in turn, incorporates these values. Let’s see the step-by-step illustration below to achieve your StochRSI values.

  • Note the RSI levels for 14 data periods.
  • Highlight the current, the lowest, and the highest RSI values on the 14th.
  • Also, highlight the current, lowest, and highest RSI readings on the 15th oscillator.
  • Use these values to get your new StochRSI.
  • You may now compute your new StochRSI values using only the last 14 RSI readings. 

What Are Bollinger Bands?

Bollinger Bands are a technical indicator that helps traders recognize and categorize new market trends. Therefore, they may have a clearer understanding of the oversold and overbought stock. Overbought assets on Bollinger Bands are represented on the higher band, a signal for traders to sell. On the other hand, underbought assets are displayed on the lower band — a buy signal in this case. 

Bollinger Bands are technical indicators that crypto traders use to track an asset’s performance over a period. They may then sell or buy according to the collected analysis. Traders may identify coins that may spike, thereby figuring out when to enter and exit a trade. Bollinger is also helpful in automated cryptocurrency trading. Experts may code trading bots that help recognize and discharge technical indicators. 

Main Features

Two vital specifications distinguish Bollinger Bands from other forms of technical analysis.

  • Bollinger Bands may help estimate an asset’s rising probabilities. This feature implies that Bollinger Bands comprehensively define an asset when losing strength or reversing its movement. 
  • Traders may get a clearer idea of down-trending assets using Bollinger Bands. They may figure out an asset’s falling state, particularly when the upside trend is reversing.

Understanding Bollinger Bands Better

Bollinger Bands have unique characters that help the trader deduce meaningful marker information. A trader may suspect a sharp move in prices should the bands pack tightly in a low volatility period, for instance. Typically, such a trait indicates a trending move, but traders are advised to ensure the signal isn’t false and may move counterclockwise.

The presence of a significant gap between bands indicates the likely end of a trend and increased volatility. 

Bollinger Bands

However, note that prices may also fluctuate within the bands. The price may touch a band while swinging towards another. These interactions may be confusing, but they help evaluate profit targets. To summarize, the upper band represents the profit target if an asset’s price drops down to the lower band and spontaneously climbs up and across the moving average. 

It’s noteworthy that prices may glue the band for a long time or increase when the trend is strong. Nonetheless, experts recommend more research to figure out extra profits. For instance, a price may cross both bands and flip back inside, leading to a negative scenario.  

Create an Automated Custom Scenario 

Obolon9 is an automated crypto trading system that offers comprehensive market surveillance 24/7 and instant notifications when the market moves according to the parameters you’ve set. This tool comes with ready-made scenarios and ones customizable to the user’s specifications.

Follow these steps to create a custom tool using Obolon9’s customizable scenario:

  • Create a name for your scenario.
  • Select a trading scenario.
  • Choose a trading platform and a cryptocurrency pair.
  • Specify your desired parameters. 
  • Save and run your program. 

Conclusion

Stochastic RSI and Bollinger Bands are two powerful technical indicators that may help cryptocurrency traders gain a clearer market understanding. When properly done, these evaluations will help the trader have a good picture of the potential future of the coins they’re trading. You may implement StochRSI and Bollinger Bands on automated trading systems, like Obolon9, and create a customized scenario.

 

Which One Is Better: Bitcoin vs Litecoin

Are you interested in a Bitcoin (BTC) and Litecoin (LTC) comparison but don’t know where to start? If so, you aren’t alone in this matter.

These are two of the most well-known cryptos on the market, but because of many similarities, people face difficulties when choosing the better one for themselves. That’s why this article provides useful information about the Bitcoin vs Litecoin cryptocurrencies comparison. 

Let’s get started. 

What Is BTC?

Satoshi Nakamoto proposed and developed Bitcoin, the world’s first digital currency, between mid-2008 and early 2009. It is a decentralized cryptocurrency that facilitates instant payments through peer-to-peer technology. Bitcoin has the crypto world’s largest market capitalization of 850 billion USD at the moment.

What Is LTC?

Litecoin (LTC) is a cryptocurrency founded by Charles Lee in October 2011. It was presented at its launch as the “light version of Bitcoin.” It is essentially comparable to Bitcoin in terms of technical specifications. Litecoin has the 13th largest market capitalization of ten billion USD.

Bitcoin vs. Litecoin

Now take a closer look at the major differences between Bitcoin and Litecoin.

  • Design and Purpose: The cryptos aim to create a source of exchanging and storing value by eliminating all third-party organizations, like banks and governmental authorities. LTC is a fork of BTC and was developed to overcome Bitcoin in terms of low transaction costs, quick transfers, and low power consumption.
  • Working Algorithm: Another important difference between Litecoin and Bitcoin is their mining algorithms. While they are both Proofs of Work, Bitcoin employs the SHA-256 hashing method. Scrypt is a relatively new algorithm used by Litecoin. Scrypt runs on lower power consumption and is faster than BTC’s algorithm.
  • Mining: Because of LTC’s Scrypt, it consumes low power and time for Litecoin mining and offers its users the ability to mine on their personal computers. On the other hand, Bitcoin mining requires a proper, high-cost hardware setup, which consumes a lot of power.
  • Market Capitalization: This year went well for the overall crypto market. In April 2021, BTC recorded an all-time high market capitalization of one trillion USD and currently has the largest market capitalization of 850 billion USD. In May 2021, LTC recorded an all-time high market capitalization of 23 billion USD and currently has the 13th largest market capitalization of ten billion USD.
  • Block Sizes: A block is processed every 2.5 minutes on the Litecoin network, compared to ten minutes on the Bitcoin network. As a result, Litecoin has a faster transaction speed than Bitcoin. When it comes to block rewards, the Litecoin network currently gives miners 12.5 coins for every block, while the Bitcoin network gives miners 6.25 BTC. Both cryptos limit their block size to 1MB.
  • Transactions Every Second: Bitcoin processes only seven transactions per second, while LTC can process more than 50 transactions every second, almost eight times faster than BTC. Litecoin was established in part to improve transaction speeds, with a block being fully confirmed and added to the Litecoin network within an average of two and a half minutes.
  • Network Transaction Fee: LTC offers way cheaper transaction fees in comparison with BTC. BTC has an average transaction fee of $7.56 for every transaction. It costs only $0.03 for every transaction on the LTC network, almost 250 times cheaper than BTC. 
  • Store of Value and Institutional Involvement: One of the key reasons Bitcoin is so much more successful than LTC and any other cryptocurrency is its status as a store of value on the market. Bitcoin is termed a “digital gold.” Institutions from all over the world have started investing their capital in BTC, and according to recent reports, around eight to ten percent of BTC is held by them. Elon Musk recently said that Tesla holds Bitcoin. LTC hasn’t gained so much popularity among institutions yet.

How to Automate Your Bitcoin and Litecoin Trades

Obolon9 provides a trader with a set of predesigned scenario-based trading tools (plus a configurable scenario) through an automated crypto trading system. It combines the best of both worlds through the flexibility of manual trading and the diligence and precision of programmed scenarios.

With these six simple steps, you can set up your first scenario on Obolon9.

  • Name your scenario: Name your scenario according to your associated asset and purpose of trading.
  • Choose a strategy: Select a trading strategy for your scenario. It might be one of the ready-to-use scenarios, your own custom one, or an imported one from TradingView (a social network of 15 million market participants from across the globe who utilize the best analytics, charts, and traders’ tools to keep track of the global crypto markets).
  • Select a trading platform and crypto-asset: Select a crypto exchange and cryptocurrency pair you want to trade.
  • Specify parameters: Fill in the rest of the asset parameters you wish to track in the scenario. Only when these factors are favorable will your scenario issue alerts/trades.
  • Click on Save and Run: You’re done; after clicking this button your scenario is already functioning.

Conclusion

Bitcoin has been termed “digital gold” and holds status as a store of value. Litecoin has various advantages over Bitcoin, like low network fees, fast transaction speeds, and low power consumption, and it does not require any professional hardware for mining. Undoubtedly, both cryptos have huge growth potential and belong among the top 15 cryptos on the market. With all this information regarding Bitcoin vs Litecoin, it’s easier to make a decision on which crypto is best for you. 

 

A Four-Year Price Prediction of Litecoin: 2021 – 2025

Are you interested in Litecoin (LTC), its working mechanism, history, and price forecasting? If so, you should keep an eye on this digital asset before the currency delivers the best results.

Unfortunately, there are very few sources where you can find all the Litecoin predictions in one article. We collected some of the best price predictions of Litecoin for the next four years. Furthermore, we discussed the advantages of this digital asset, price-affecting elements, and one automated platform to trade Litecoin.

What Is Litecoin Cryptocurrency?

In October 2011, Litecoin (LTC) was launched as a Bitcoin fork, or altcoin, to become a better-decentralized cryptocurrency than the established assets. The coin was engineered by Google developer Charles Lee. Litecoin has a better block generation mechanism using the Scrypt consensus algorithm.

Past Performance

Litecoin never broke the $100 mark from 2011 to 2017. But during the 2017 bull market, the price reached the $400 level. The price subsequently dropped below the $100 mark until breaking it again in 2019. 

Working Mechanism

Since Litecoin is a digital currency, having the knowledge of how Bitcoin or Ethereum work is important to understand Litecoin. However, the actual code is a modification of Bitcoin, so you will find Litecoin faster. The mining mechanism is also better than Bitcoin. 

Advantages of Litecoin

  • Scalable Asset: Litecoin is much more scalable than Bitcoin. The technology introduced sophisticated scalability features without increasing the network fees.
  • Faster and Lightweight: The developer of Litecoin improved the block confirmation time. Now, the ten-minute Bitcoin approval time has been replaced by 2.5 minutes in Litecoin. Hence, Litecoin is lighter than its peer cryptocurrencies.
  • Better Fees: While Bitcoin and Ethereum have higher fees due to scalability issues, Litecoin solves the problem by introducing cheaper services.
  • Strong Privacy Features: Litecoin introduced better anonymous transaction features to the core of their services. No third parties are allowed during a transaction thanks to the development of MimbleWimble services.
  • Better Integration: Multiple industries are trying Litecoin as a payment gateway, like retail, arts, and gambling. The open software concept helps achieve better integration for the native Litecoin. 

What Affects Litecoin Price

  • Litecoin Trading: Litecoin is a big name in terms of market cap. Currently, it is the seventh largest altcoin in the world. Moreover, the currency ranks third in the crypto derivatives market.
  • Fear of Missing Out: The digital asset market has been experiencing a FOMO craze. Investors are interested in the future of Litecoin, so they don’t want to miss the chance of making a profit. Hence, the market has a chance of moving upwards.
  • Privacy Factors: The privacy of Litecoin can be a price-driving factor. Both the security of user funds and on-chain services have been improved. This is one of the reasons more investors might get attracted and increase the price in the future.
  • Smart Contracts: Litecoin is working on the smart contract feature with Flare Networks. After implementing this service, Litecoin projected growth should increase.

Price Predictions for Litecoin: From 2021 to 2025

All the technology behind LTC suggests that the Litecoin price has potential for future growth. But what are the experts’ opinions about future Litecoin prices? Let’s see here:

Price Prediction: Litecoin in 2021

Litecoin has been doing well this year along with the surge of many other major cryptocurrencies. But the LTC price prediction shows that it might end the year at $265. This can be a lucrative investment for LTC investors.

Price Prediction: Litecoin in 2022

Experts are predicting that the 2021 bullish run will continue in the year 2022. There are also speculations that Litecoin prices will reach the previous resistance levels between the years 2021 and 2022. The price surges should continue until the end of the year.

Price Prediction: Litecoin in 2023

We studied the expert opinions of Litecoin for the year 2023:

  • TreadingBeasts: The site provided a forecast that Litecoin’s price will average around $153 in 2023. However, the price might stay above $100 this year.
  • Wallet Investor: Wallet Investor predicted two months of fluctuations in 2023. The subsequent months will make the currency less volatile. Litecoin may hit a high of $392 by the end of the year.

Price Prediction: Litecoin in 2024

Digital Coin Price published a Litecoin price prediction for 2024. They are expecting that Litecoin will be around $317, and at the end of the year, the average price will be around $440.

Price Prediction: Litecoin in 2025

Four years from now, we might see a Litecoin price between $500 and $600, according to sources like CryptoNewsZ. The year will see major reforms in the economic and political arena, but experts believe that Litecoin can sustain the issues and increase in value in the future.

Where to Trade Litecoin

Now you have enough information about Litecoin and its possible future. But where do you start trading Litecoin?

You can try Obolon9, an automated crypto trading system, to start your Litecoin journey today. The platform allows you to create automated trading scenarios with a manual decision-making ability for optimal trading performance. Creating an automated scenario for trading Litecoin is easy here. Also, there are lucrative subscription plans you can avail of after trying the platform using a free trial.

Conclusion

Litecoin is one of the most exciting technologies in the crypto world with good speed and cheap network fees. Having an eye on the Litecoin price movement can bring better results to investors amid the highly volatile crypto market. Also, a few elements like anonymity and smart contracts can increase the price of Litecoin in the future.

Keeping everything in mind, you should study Litecoin predictions to make the right decision. Already, various experts have predicted a strong upward movement of Litecoin in the near future. So, you just need a better place to start trading the asset. Try the reliable platform Obolon9 with a free trial period.

 

Popular Ethereum Price Predictions for 2021 – 2025

The cryptocurrency market has been doing well since the hike in Bitcoin (BTC) prices in the last half of 2020. At the same time, the second most valuable digital asset in the world, Ethereum (ETH), showed promising results over many other cryptocurrencies. Recent trading data shows that Ethereum’s price increased threefold in just three months from December 2020. 

However, it’s not wise to make an investment decision without strong market research. So, it’s time to understand Ethereum projections of price and the coin’s benefits.

Definition of Ethereum

Ethereum is a digital asset platform with decentralized and open-source services. The goal of Ethereum is to build a global network related to digital currencies and make the data available for public use. The network supports a few futuristic applications like smart contracts, DeFi, NFTs, etc. This has created a strong presence of the asset in the crypto domain.

Advantages of Ethereum

  • Financial Inclusion: Ethereum supports banking services for everyone. Having the Internet will allow anyone to borrow, lend, and save in Ethereum.
  • Better Privacy: Ethereum applications have better user privacy. You don’t have to give your personal information to use them. 
  • Peer-to-Peer Services: No third party is required to transfer money or make agreements with a party or individual. Everything can be performed directly.
  • No Censorship: Central bank or government regulations can’t be imposed. A transaction can be made using decentralized technologies.
  • Commercially Viable: Ethereum is commercially feasible for both small businesses and large corporations.  

Price Predictions for Ethereum 2021 – 2025

After reviewing the positive aspects of Ethereum, now it’s time to look at the Ethereum future price

Wallet Investor

The popular crypto forecasting portal Wallet Investor predicted that ETH will double in just one year. Furthermore, they predicted strong growth of the asset in the next few years. The site forecasted the year-ending prices of Ethereum for 2021 at $3,661, $5,919 for 2022, $8,439 for 2023, $11,218 for 2024, and $14,021 for 2025. 

TradingBeasts

This website published conservative ETH price predictions from 2021 to 2024. Unlike Wallet Investor, this site is showing that Ethereum will only reach the $4,000 level in the next three years. The TradingBeasts year-end predictions are: $3,115 in 2021, $3,479 in 2022, $3,816 in 2023, and $4,122 in 2024.

Long Forecast

Here we can see a strong ETH pricing indication by Long Forecast. They predicted that Ethereum will close at $4,952 in 2021. The following year’s price will reach $15,740. However, the price will drop slightly to $14,792 in 2023. The following years will see a massive drop of $7,011 and $6,328 in 2024 and 2025.

Digital Coin Price

Another well-known site, Digital Coin Price, predicted that Ethereum will reach the $9,000 level by 2025. The price movement will be stable and consistently grow in the next four years. The predictions are $4,164 in 2021, $5,203 in 2022, $6,088 in 2023, $7,498 in 2024, and $9,002 in 2025.

Coin Price Forecast

Forecasting from Coin Price also shows stable growth for ETH over the next few years. Like Digital Coin Price, it shows consistent growth from 2021 through 2025. The year-end prices are: $4,411 in 2021, $5,993 in 2022, $8,662 in 2023, $8,646 in 2024, and $8,921 in 2025.

All of the crypto experts have the same opinion about Ethereum’s cryptocurrency — it should have a bright future.

Why You Need to Buy Ethereum Now

With such a large growth opportunity, it is quite obvious that you are thinking, should I buy Ethereum now? Here are the top reasons you should buy Ethereum today.

  • Usability: Ethereum is a better technology than Bitcoin with more development scope under one network. The strong accessibility makes Ethereum more suitable for businesses than Bitcoin.
  • Strong Backups: The digital asset has strong backing from Fortune 500 companies. The latest news shows that the blockchain has support from Microsoft, Intel, and J.P. Morgan. The efficiency and smart contract feature of the blockchain make it a perfect choice. 
  • Adoption: Many financial institutions are adopting Ethereum by incorporating digital assets. Even Bank of America is trying out the promising applications of the Ethereum blockchain over other assets.

A Quick Review of Automated ETH Trading at Obolon9

You can trade Ethereum at any traditional cryptocurrency exchange. But, if you want more control over your trading operation, you can try the automated crypto trading system Obolon9. Here’s a quick way to start trading Ethereum at Obolon9:

  • Start by creating a name for your scenario. The name should include your purpose for trading and the related digital currencies. 
  • Then, select a trading scenario. There are multiple trading scenarios preloaded inside the Obolon9 crypto trading system. The system also allows you to customize or import scenarios from other sources like TradingView. 
  • The next step is to choose the trading platform and the assets you want to trade. 
  • The platform will ask you to set your parameters. Find the API keys for the trading platform. You can also use the API keys to update profiles. Next, set other parameters like time intervals. When you set the parameters, the automated tool will automatically trigger trades using the numbers you provided.
  • Finally, use the “Save and Run” button to complete your setup. Now you can start trading with Obolon9.

Final Thoughts

To sum up, Ethereum brings good investment opportunities, such as usability and strong backups, for digital currency investors. The project has no censorship and is backed by top institutions. At the same time, top crypto forecasting sites are showing large growth opportunities for ETH in the next four years. 

With such Ethereum projections, it’s wise to use the right platform to make maximum profit from future ETH price movements. Since Obolon9 is a trading system with in-built scenarios for performing customized trading operations, you can try it and improve your trading performance. The Obolon9 system offers a free trial period so you can decide whether it’s right for you.

How to Buy NFT and Its Basics 

NFTs may not be as popular as cryptocurrencies. However, there’s no doubt that they may be equally, if not more, profitable in some instances. After all, the world has witnessed an NFT sale valued at $69 million. Furthermore, you or anyone else may create NFTs to earn profits. This article explains how to buy NFT and also covers everything to know about this unique blockchain tech. 

What Is an NFT? 

An NFT (non-fungible token) refers to a vast range of virtual assets, including both tangibles and intangibles. An NFT may be a digital sneaker pair, digital real estate, or collectible sports cards. The primary essence of NFTs is to store artistic or cultural values.

NFT Characteristics

  • Non-interoperable: NFTs work only on specific platforms; in other words, an NFT can only function on the particular platform it was designed for. A Gods Unchained game card is inaccessible or unusable in the Blockchain Heroes game. Likewise, a CryptoKitty is not usable on the CryptoPunk application or vice versa. 
  • Indivisible: Unlike Bitcoin satoshis, you cannot break an NFT down into smaller portions for any reason. NFTs exist solely as non-divisible items.
  • Indestructible: You cannot destroy, replicate, or remove an NFT. Why? NFT data keys directly into smart contracts. What’s better? NFT ownership is unchangeable, meaning collectors and investors wholly control and own their tokens, instead of their creators. In contrast, buying a product from the iTunes store doesn’t make you the original owner. You merely own the license to use the service for a specified period. 
  • Verifiable: The use of smart contracts for NFT technology ensures that information remains forever. As such, digital artwork and similar items are traceable to their original designers. This feature allows for data verification without third-party intervention. 

Mechanism Behind an NFT’s Operations

Think of NFTs as artwork that you may create, buy, or sell.

NFTs are established on the ETH protocol as unitary tokens containing additional information, like a flash drive containing secret coordinates. Although, it’s impossible to get the exact value of an NFT even if you get a similar copy. Think of this concept the way duplicate copies of art prints contain the same information, but does that mean they are as valuable as the original? 

These data may be music, video, images, or other art forms stored as MP3s, MP4s, JPEGs, or GIFs. NFTs hold information, which may be as important as a secret government project or as common as a gaming card. Therefore, the creator may sell them according to the price fixed by market demand. 

It’s noteworthy that while you may conveniently download an NFT image through right-clicking, the downloaded file won’t contain the data that makes it valuable. 

Differences Between NFTs and Cryptocurrencies

Some characteristics differentiate NFTs from cryptocurrencies, with blockchain programming the only similarity between the two. Let’s check out some of these differences.

  • Cryptocurrency Is Fungible: Fungibility describes the interchangeable nature of an item. Thus, cryptocurrencies are exchangeable for one another. You may exchange Bitcoin for Ethereum and vice versa on both decentralized and centralized crypto exchanges. 
  • Cryptocurrencies Are Measurable in Equal Value: Two cryptocurrency measurements may be equal in value. This means that one BTC is equal to one BTC, whatever the circumstances may be. Likewise, one ETH equals one ETH. In essence, two different cryptocurrencies (LTC and DOGE) may have the same value if correctly measured. As a result, cryptocurrencies are an acceptable payment means worldwide. 
  • NFTs Maintain a Virtual Signature: The use of smart contracts in NFTs ensures that data is encoded while the creation remains that way for eternity. Some users optimize this feature to write their signatures on their products before selling them. That way, everyone who buys a copy knows the product’s original creator. 
  • NFTs Aren’t Measurable in Equal Value: Unlike cryptocurrencies (and fiats), two different non-fungible tokens never have the same value. For instance, there’s no way to equate the value of one EVERYDAYS to one NBA Top Shot clip despite both being NFTs. You and another party may agree to barter, but others may not agree to the value measurement.
  • NFTs Aren’t Tradable Assets: Cryptocurrency trading is the most reliable way to earn with cryptocurrencies. However, that’s not possible with NFTs due to the absence of a system to measure two different products equally. You may equate some BTC satoshis to one ETH, but that’s impossible with NFTs. Consequently, automated crypto trading systems that simplify crypto revenue generation (Obolon9, for instance) do not support non-fungible tokens. 

Special Use Cases of NFTs

  • Optimizing Digital Content Creation Earnings: Typically, creators cede ownership of their content to the platforms where they publish them. Therefore, these creators get publicity but low profits from their sales in most cases. Fortunately, an NFT provides a better option. Content developers may now code their metadata into their products, such that every sale earns credit to their wallets directly. Also, they may earn commissions when others resell.
    • The Copy/Paste Debacle: The introduction of NFTs ensures that creators don’t have to bother about people copying and pasting their artwork. Their signatures remain on the products, and a screenshot doesn’t contain the valuable data they encoded during creation.
  • Improved Gaming Potential: Players can now benefit from NFTs through ownership records to fuel in-game economies and in-game assets. Moreover, you may resell gaming NFTs after completing the game to recoup your investment.
  • More Remarkable ETH Addresses: You can modify your ETH wallet address with NFTs such that it’s easier to type and remember. Such wallets are written as yourwallet.eth instead of xx324…456. These wallets may save arbitrary data like your Twitter handle and email address.
  • Physical Items: Serious projects are underway to tokenize physical assets, such as rare fashion items and real estate properties. NFTs may become the control of your home or car in the foreseeable future. Plus, you may present NFTs as loan collateral as well.
  • DeFi and NFTs: Both blockchain technologies are starting to combine for excellent results.
    • NFT-supported Loans: Some DeFi applications now accept NFTs as collateral instead of cryptocurrencies. 
    • Fractional Ownership: Although an NFT is indivisible, you don’t necessarily have to buy its whole form. You may buy a fraction and trade NFT crypto securely on DeFi platforms. 

How to Buy NFTs Securely and Conveniently

Create an Account on an NFT Marketplace

There are numerous NFT marketplaces to buy tokens. You need only to register on such a platform, but first make sure it’s a reliable marketplace to avoid getting scammed.

Reliable NTF Marketplaces

  • OpenSea: This is an ETH-based marketplace that requires a Web3 wallet, like MetaMask, to use. You may exchange NFTs for cryptocurrencies and vice versa on this platform. 
  • SuperRare: SR is a marketplace for only original NFT products. The platform operates on the Ethereum network, so only ETH can gain access.  
  • Nifty Gateway: This platform offers primary and secondary marketplaces for content creators and resellers, respectively. Nifty Gateway is also ETH-orientated.
  • NBA Top Shot: As the name suggests, this marketplace deals solely in verified NBA collectibles. They serve as an improved version of traditional basketball cards. 

Add Funds to Your Account

Funding your NFT marketplace account is typically done through ETH. Therefore, you may easily add funds if you have an ETH wallet. If you don’t, you’ll have to open one to start.

Make Your Purchase

Buy your NFT after funding your account. The marketplaces above offer simple interfaces you can easily maneuver. 

Final Words

The unique nature of NFTs distinguishes them from cryptocurrencies. Their primary function is to store culture and art, but you may buy to resell on specific marketplaces. Non-fungible tokens are profitable according to market demand; therefore, mastering how to buy NFT may be an excellent income source. 

In addition, if you want to automate your trading and improve your results, try the Obolon9 system.

 

What Is DeFi Crypto? Decentralized Finance Essentials

Not only can centralized exchanges be slow with transactions, but they may restrict your control over your assets, as well. They may equally limit trading sophistication as they play catch-up to decentralized systems. In this article, we’ll look at the essence of DeFi crypto platforms and how users may benefit from this contemporary blockchain tech.

Understanding DeFi: Essentials to Know

What’s DeFi? 

DeFi (decentralized finance) refers to blockchain-based financial applications that simplify asset trading, lending, or borrowing. These apps disrupt the operations of traditional financial institutions to make their operations easier. Developers create DeFi using smart contracts — automated binding arrangements that anyone with the Internet may access.

Decentralized finance initially centered on Ethereum, but numerous other networks that offer lower costs and superior speed are emerging.

What’s DeFi Coin (DEFC)?

DEFC is a fairly launched and community-oriented token to access DeFi applications. The developers of the coin burned all their tokens before launching it and invested like everyone else. A DEFC transaction involves reflection, LP acquisition, and burn. 

Unique Reasons to Embrace Decentralized Finance

Using DeFi has many peculiar benefits that extol its superiority over the traditional financial system:

  • Permissionless: Unlike conventional financial arrangements, DeFi doesn’t demand permission before transactions take place, thanks to the use of smart contracts. This feature removes the dependence on third parties for data storage, oversight, and server space.
  • Immutability: Record manipulation, however slight, is impossible on DeFi. This unchangeableness is traceable to the excellent cryptography, consensus algorithm development, and incorporation. Protocols like POW (proof-of-work) ensure that the blockchain maintains accurate records forever.
  • Transparency: Shady financial procedures aid scams and illegitimate business activities. Fortunately, these occurrences are avoidable due to the transparent nature of the DeFi protocol. These applications also help identify fraudulent schemes.
  • Lending and Borrowing Facilitation: The presence of DeFi enables smoother and simpler verification on lending and borrowing platforms. Also, this protocol assures security for co-actors in a trade. 
  • Savings Apps: DeFi applications assist users in accessing numerous lending procedures, thereby improving their interest. Moreso, these users may perform borderless assets, moving across different lending protocols for excellent rewards. 
  • Tokenization: The use of smart contracts in DeFi allows for the issuance of crypto tokens to users. These tokens may help a user own fractional portions of physical assets. Likewise, they may be valuable shares in some digital applications.

How to Cope with Risks Attached to DeFi

All investments, whether digital or offline, have their peculiar risks. Therefore, it’s necessary to accept these risks before venturing into them for easier trading decisions. Accepting risks helps you take action when your move goes wrong. Common risks attached to DeFi include:

  • Technology Risk: Software is only as good as the coding protocols affected in their production. Sometimes, there may be errors in this code, and this may cripple functions. In other words, DeFi applications run on the blockchain, but they need a correct code collection to operate smoothly. Any mistake in a developer’s code may result in vulnerabilities within the protocol. If this weakness remains obscure for long, users on the app may pay dearly with their assets. 
    • Let’s point out that DeFi is not the problem here. Rather, it’s the developer’s error.
  • Asset Risk: DeFi applications require collateral before you may borrow their products or services. A DeFi protocol maker, for example, demands security worth 150% of the borrower’s loan. 
    • However, this isn’t the problem. What is? Cryptocurrencies are the typical collateral when borrowing from these apps. Unfortunately, these assets have fluctuating prices due to their volatile nature. Your position may liquidate should the assets you submitted as collateral fall significantly in value. As such, stablecoins are the more advisable collateral means on DeFi apps, thanks to their less volatile character. 
  • Product Risk: DeFi applications don’t provide insurance or regulation on the assets you invest in. Therefore, you may fail to regain the loan you give to others if they can’t repay as agreed. Luckily, you may have some security in the collateral that the application takes from borrowers.
    • To avoid this risk, you may invest with the more reputable DeFi protocols, but the less respected ones are typically more profitable. 

DeFi Unique Use Cases

DeFi has special use cases that are unavailable on other financial protocols. Let’s see how you may use the unique features of decentralized finance to your advantage.

  • Lending: DeFi applications offer you the opportunity to make profits with your assets instead of simply holding them. Unlike the monthly returns you are familiar with, you may lend out cryptocurrencies in return for minute rewards.
  • Secure a Loan: DeFi apps come to your aid when you’re short on finances. You may get loans within minutes since there’s no extraneous paperwork to fill out. What’s better? These protocols offer flash loans — loans with a short repayment period — that other systems don’t afford you.
  • Save Money: DeFi protocols offer you higher interest rates than traditional banks for keeping your assets in their care. This may help you build a savings fund over time.
  • Derivative Purchase: Decentralized finance options afford you the chance to place bets on some cryptocurrencies. You may see this arrangement as the crypto form of futures contracts or stock options. 
  • Trading: Decentralized finance applications facilitate P2P transactions of specific cryptocurrencies. In regards to the question of where to buy DeFi coins, many platforms are available to conduct brokerage-free crypto trading. You may improve your trading profits with the use of automated crypto trading systems, even with poor market knowledge. An example is Obolon9, a resourceful system for executing smart trading decisions effortlessly. You may try it out for free to start.

Wrap Up

DeFi is a modern-day solution to the limitations of traditional financial institutions, such as banks and other borrowing houses. Applications built upon the protocol offer users crypto borrowing, lending, and trading services, alongside plenty of other services. You may rightly describe DeFi crypto platforms as a superior alternative to the traditional financial system. 

 

 

17 Ways to Make Money with Bitcoin 

Bitcoin is currently the most valuable coin in the cryptocurrency industry. As such, it offers plenty of ways to earn cash. What’s better? Some of these require only your devotion and no capital. Keep reading this comprehensive guide to exploring some smart methods to make money with Bitcoin

Introduction to Bitcoin: Brief Historical Background

A pseudonym account, Satoshi Nakamoto, introduced Bitcoin in October 2008 to respond to the then-ongoing worldwide financial predicament. Bitcoin was intended to be a virtual currency that transcended the control of a single body or organization — unlike fiat currencies. 

The coin recorded its first transaction in May 2010, thereby proving its real-world monetary value. This transaction paved the way for the launch of numerous other cryptocurrencies. Some of these coins were BTC hard forks.

Bitcoin has undergone a meteoric rise over the years. The coin has spiked and crashed several times, but what’s undeniable is BTC’s superiority over all other cryptocurrencies. Bitcoin broke the $50,000 barrier in February this year.

Shortlisting 17 Practical Ways to Earn with Bitcoin

Bitcoin Lending

A Bitcoin lender lends the coin to interested investors on specified terms and conditions. They may also lend to legitimate websites. Typically, Bitcoin lenders request a fixed percentage as an interest to make their money. According to their records and terms, you may decide to offer short- or long-term loans to each intending borrower.

Bitcoin Mining

Bitcoin is pretty similar to gold, and miners are the nodes that ensure the coin remains in circulation. In exchange, the system rewards them with money or valuable bonuses. However, you need high-end machines, cheap electricity, and expert knowledge to mine BTC. Therefore, it’s costly and requires a significant investment in the beginning. 

Faucet Websites

Faucet websites offer Bitcoin rewards for completing certain tasks. These challenges may include Captcha submissions, poll participation, referral programs, and survey inclusion. However, the rewards for these tasks are typically small. Moreso, there are a plethora of fake faucet websites these days.

Bitcoin Trading

Trading represents the primary and most reliable means to make money with Bitcoins. Yet, it’s arguably the riskiest of the options. 

Poor trading decisions may cause you significant losses and dent your portfolio. Therefore, it’s advisable to learn from experts before becoming a cryptocurrency trader. Four common Bitcoin trading strategies are:

  • Day Trading: It means conducting all trades within a day. These short-term deals offer relatively small profits, but they may contribute to a large portfolio over time. 
  • Scalping: This is an aggressive day trading technique that targets small profits from the positions of Bitcoin. A scalper targets market dips through the use of leverage and snipe positions. 
  • Swing Trading: A swing trader swings in both price directions: bullish and bearish. Their sole aim is to buy Bitcoin at a low price and sell when the price is high. 
  • Position Trading: A position trader maintains a position for a long-term duration until they make a profit. This period may last weeks and even months. For instance, closing a deal you started in December in February is position trading. 

In addition, you can try trading with Obolon9, an automated crypto trading system. The service offers round-the-clock market surveillance, providing you the opportunity to focus on your strategies and make excellent trading decisions. You may try it out for free today.

Buying and Holding

Buying and holding is a Bitcoin strategy that holds Bitcoin until an upward price movement before cashing out. Unlike the day trader, a buy-and-hold investor may hold their Bitcoin for months, if not years, before trading.

Affiliate Marketing

Some product websites may promise you a commission for referring customers to their products or services. This reward is usually in the form of Bitcoin. It’s necessary to verify the legitimacy of an affiliate program before joining.

Accepting Bitcoin as a Payment

Offering your products or services in exchange for Bitcoin is more profitable than accepting only fiat currencies. How so? A Bitcoin unit worth $2,000 today may be worth $2,500 after some time if you keep it. It’s a passive money-making strategy. Plus, it facilitates borderless transactions across the globe.

Bug Bounties

Software developers often offer rewards to individuals who may help detect vulnerabilities and exploits in their products. You can find such opportunities at most Bitcoin P2P marketplaces and exchanges due to their constant drive to enhance their services. 

Earning Through Tips

Some platforms connect helpers and tippers. The former represents users who help complete specific challenges, while the latter offers rewards in exchange for help. Likely tasks you may have to complete include product promotion, technical product resolution, solving fashion crises, and streaming video games. 

Bitcoin Forum Campaigns

Bitcoin forum campaigns are platforms that offer BTC as rewards for content contribution. However, your contributions have to be valuable and helpful to earn incentives. Satoshi Nakamoto launched the first of these forums: Bitcointalk.

Micro Earnings

Some websites reward members in BTC for watching ads, and trying out such platforms may earn you some cash. However, micro earnings are quite literal: they don’t pay much! An hour-long video may earn you only $0.005, but it’s something anyway.

Bitcoin Staking

Staking works similarly to lending, but there are no loans in this case. Staking involves keeping your assets in a network for stability purposes. In return, the network offers you rewards for your loyalty. You may check out Binance’s staking program for a start.

Yield Farming

Yield farming is a unique DeFi strategy that combines lending and staking. A yield farmer allows decentralized exchanges to share their Bitcoin to a swapper interested in trading, and as a reward, they receive the trading fees from the platform. Your main purpose here is to provide liquidity, thereby ensuring transaction continuity.

Task Completion

Pay-to-Click websites offer users BTC in exchange for completing little tasks, such as ad watching, survey completion, and quiz participation. These activities may be monotonous, but you may have no better option sometimes. Besides, you may find some videos entertaining or educational when you watch them.

Writing Crypto Content

You may earn cash as a cryptocurrency writer when you publish posts on blockchain-based platforms. This option is one of the highest-paying strategies to earn with cryptocurrencies, although it requires more technical knowledge too.

Sell Old Stuff Online

These days, you may find platforms that connect buyers with sellers if you’re keen on cryptocurrencies. You may sell your old stuff on such sites instead of discarding them in a backyard sale for little or nothing. Also, you may advertise on social media while specifically requesting Bitcoin for payments.

Become a Bitcoin Consultant

Cryptocurrency technicalities are often overwhelming to beginners; therefore, the industry highly regards experts who simplify the learning process. Working as a Bitcoin consultant is greatly rewarding. However, it requires years of experience and remarkable market understanding to become one. 

Summary

Knowing how to make money with Bitcoin may be an excellent source of active or passive income — depending on your preference. As things stand, now it’s up to you to choose the best way to make money with Bitcoin, considering that we’ve just highlighted seventeen ways to do so. However, trading remains the most popular strategy.

 

How to Day Trade Bitcoin — Main Strategies

Bitcoin day trading is a common money-making strategy among cryptocurrency investors. However, trying out popular techniques on how to day trade Bitcoins without prior training or knowledge increases the risk of loss. This article will look at how to day trade Bitcoin, including its technical and physiological implications. 

Here we go.

The Basics of Day Trading

What Is Day Trading?

Day trading is described as the buying and selling of assets such as cryptocurrencies on a daily basis. A day trader speculates on assets, makes purchases, and concludes sales within a 24-hour timeframe. No trade spills over into the next day. These investors conduct trades on a short-term basis; thus, they may partake in hundreds of transactions per day.

Pros of Day Trading

  • Day trading saves you the expenses that cryptocurrency trading platforms charge overnight.
  • The short-term nature of day trades helps traders sniff out a plethora of opportunities in the volatile crypto space daily.
  • Trading is quick to start and conclude. This spares you the anxiety associated with waiting for future results.
  • Day trading affords you legitimate trading that doesn’t violate a pattern day trader (PDT) regulation. This restriction requires traders to keep at least $25,000 in their accounts, and if their balance is below this level, they will be denied access to trading. 

Cons of Day Trading

  • Day trading can be super costly due to the recurrent transaction fees. This con worsens when you’re trading on a platform with exorbitant charges.
  • Day traders have to take a lot of time perusing the market before profit realization.
  • Profits are typically small in day trading.

What Should You Do to Day Trade Bitcoin More Profitably?

Certain actions have to precede your venture into day trading to earn gains:

  • Blockchain Understanding: The blockchain represents the playing field for all transactions. You’ll be able to enter profitable trades if you gain a good understanding of the blockchain. 
  • Be Attentive: Day trading has both positive and negative sides. It’s essential to notice and attend to both aspects before your move.
  • Work Out Your Investment: The presence of risks means that you either profit or lose with day trading. As such, you should invest amounts that don’t cripple your portfolio if the move backfires.
  • Stay Updated: The cryptocurrency world is interrelated. It’s, therefore, necessary to keep track of other coins. The price of BTC may affect every other coin.
  • Know Politics: Cryptocurrencies relate to the outside world. Therefore, government regulations have a significant influence on what happens in the crypto industry.
  • Find Good Software: The last but most relevant preparational step to day trading is acquiring capable software and mastering its use. Good trading software may day trade profitably even in your absence.

Common Bitcoin Day Trading Techniques

People who day trade Bitcoin adopt different techniques according to their risk tolerance level, the amount they’re willing to invest, and portfolio shape. Here are the most common of these methods!

Scalping

Scalpers are investors who attempt to profit from the little adjustments in an asset’s price movements. Such investors conduct short-term transactions to scalp a meager gain from largely profitable trades, thanks to market inefficiencies such as spreads and liquidity. 

A trader must be consistent and fast to realize profits from scalping. A scalper without a strict exit technique may lose all the profits they’ve accumulated. 

Range Trading

Range trading is a strategy that aims at making profits between two consistent price levels of an asset over a specified period. A range trader studies the market structure to identify stable trends and buys or sells according to their observations.

For instance, these two price levels may be the support and the resistance. Range trading helps earmark both levels as entry and exit points. 

Trading the News

News-based trading takes its cue from Forex and traditional stock trading. This approach aims to make trade decisions in a reactive response to significant events or news that may affect the crypto industry. 

Trading the news is possible in traditional trading because news is typically scheduled; therefore, traders may anticipate price adjustments correctly. However, events or news relating to cryptocurrencies are often more sporadic; thus, anticipation can be more challenging in this regard. It may be highly profitable if correctly timed, however. 

Automated Trading Resources

Automated trading tools simplify day trading. They automatically identify market trends and act according to your set preferences. 

It’s advisable to verify a platform’s reliability before trying it. Obolon9 is a secure automated crypto trading system that has different crypto trading scenarios with alerts. So, you’ll be notified about changes in your set parameters of a trading scenario.

Trading on the Ideal Exchanges

Trading on the appropriate platforms helps improve your profits. Transactions are 100% secure, remarkably quick, and less costly. Such platforms include:

  • Binance: Binance is arguably the world’s largest cryptocurrency exchange. Trading fees are affordable, and security is outstanding. Plus, Binance boasts an impressive liquidity ratio.
  • Kraken: Kraken is a reputable cryptocurrency exchange to maximize day trading profits. Transactions on the platform are relatively affordable and secure.
  • CEX.io: CEX is a reputable platform to trade cryptocurrencies with fiat currencies. The resource charges considerably lower fees and assures maximum security. 

Tips to Avoid the Negative Physiological Part of Day Trading

  • Avoid Greediness: Day trading is basically for small profits. It’d be best if you stuck to the typical gains instead of unrealistic targets.
  • Take Responsibility: You’re responsible for your day trading decisions. Realizing this early helps improve your consistency and speed at decision-making.
  • Accept Risks: Day trading comes with significant risks. Accepting that you may lose your investment helps you move on quickly after losses.
  • Improve Your Discipline: Some distractions may occur while you day trade. It’s best to ignore them and focus on your target. 
  • Adopt a Winning Mindset: Ingrain into your mind that you’re a winner and that losses are simply unavoidable. This will help you continue, even in the face of painful losses.

Conclusion

Beginners to day trading need to master a lot before their debuts. Otherwise, they’d likely lose their starting capital. You must master both the technical and physiological aspects of this strategy to know how to day trade Bitcoins profitably. In addition, you may consider Obolon9, an automated crypto trading system that offers 24/7 market surveillance and notifies users of market changes instantly. Remember that speed and precision are the fundamentals of successful day trading. 

 

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