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  1. How Can You See the “Double Bottom” and Use It to “Hit the Skies”? A lot of trading players look forward to the so-called “double bottom”. The name derives from a very particular charting pattern. Why this name and what's interesting about it? Chart The “double bottom” looks like the letter W. This chart pattern is generated when the price hits a low (the “first bottom”), then rebounds and drops again (the “second bottom”) to finally soar. This movement demonstrates that the market is out of balance, with traders fighting to close transactions during the “first bottom”. When the price starts to rebound, some traders open positions, and the price drops. Traders with a good reaction manage to make quite a profit from the W-shaped pattern. Holders, i. e. traders who hold their assets and do not respond to minor market movements. The “double bottom” may be forecast even before it starts to form. For example, when a long-term slump in price is interrupted by good news and the price starts to slowly grow. Using the double bottom It's important to promptly notice that the “double bottom” is forming: drop – rebound — drop and subsequent price growth. The point is that a part of investors leaves on each curve of this pattern believing that they know how the trend is going to change further. Obviously, they make the same mistake three times before they can see that the price, having gone through the drop – rebound – drop sequence, starts to soar. In this case, the most patient players are the ones that win. This patience is based on a better knowledge of how to use the tools for price movement analysis and on not jumping to conclusions.
  2. A Common Programmer Becoming Millionaire Thanks to Bitcoin A person who refuses to his real name and introduces himself as Mr Smith bought bitcoins back in 2010. He spent three thousand dollars to do it when the first-ever cryptocurrency cost next to nothing and very few people realized its huge potential. Mr Smith is now a millionaire. Early investor Mr Smith did not invest in Bitcoin soon after learning about it. He was a programmer in a big firm in the Silicon Valley when he heard about Bitcoin from a co-worker. He studied all available information to understand this new technology. When the price rose from $0.008 to $0.08, Mr Smith made a decision to make a move. He bought 20,000 bitcoins at the price of about $0.15 per coin. Mr Smith was confident Bitcoin had a long-term potential and, as is obvious now, it was the right call to make. Millionaire Mr Smith sold 2,000 bitcoins when the price reached $350 (i. e. Bitcoin's value rose two thousand times since the purchase) and then another 2,000 bitcoins when the price climbed to $800. Thus, he ended up with $2.3 mln on his account. The very next day, Mr Smith retired and went on a round-the-world cruise. “I've got everything I've ever dreamed of... I'm now travelling the world and don't have to worry about money for the rest of my life. I'd be a fool not to sell,” says the investor. Mr Smith only buys first-class airplane tickets, stays in five-star hotels, and may travel to Singapore, New York, Las Vegas, Monaco, Moscow, Zurich and Hong Kong within a month. As Mr Smith says, he has no minute to spare to be bored. He still owns enough bitcoins to continue with this lifestyle. In total, he's earned $25 mln on bitcoins. This is what it means to accurately appreciate a new project's potential on time.
  3. Movement in the order book: Trend and Manipulation As mentioned in the previous publication, the order book may be a useful aid in determining the trading strategy on the cryptomarket. Trend The information in the order book clearly reflects the predominating market sentiment — buy or sell. You can see how demand and supply correlate. Each trader makes their own decision as to how they are going to trade using the order book data. However, most of them will follow the trend while strengthening it further. When the price change dynamics is especially high, aspiring traders must be very careful not to fall victim to the stir around buying at a high price and not to take part in the panic selling of cryptocurrencies. The trend may be modified by a big player or multiple players who create very big orders against the general trend. The price may also change under pressure from a lot of traders who simultaneously respond to certain events on the cryptocurrency market, such as the news. Manipulations Aspiring traders often confine themselves to the order books since the latter visualize things very well, and traders think they don't need any other tools. This strategy, however, is a mistake. The truth is the order book does not show the entire picture of the market: - Big players may create false order and later cancel them. This will cause the trader to respond to changes in order book data randomly and incorrectly, thus suffering losses. - Big orders with the price being 1 or 2 points lower or higher than the market price can be created for manipulation purposes, to create the feeling a massive buy or sell is about to happen. - Some players don't even create orders — they just store coins on their balance and sometimes use orders previously created by other players; therefore, the order book will not reflect the real demand / supply picture. Order books are often manipulated; to prevent it, you need to crosscheck order book data using other tools for price movement analysis or even turn to the order book as the last thing. If price movement seems suspicious, you should compare prices on a few exchanges.
  4. Is it Better to Invest in ICO or in the Existing Cryptocurrencies? Many novice crypto market investors face the problem of choosing the most profitable investment option: ICO tokens or the existing cryptocurrencies. Let's review the key risks and advantages of both options. ICO tokens ICO tokens are coins issued in order to raise funds for further cryptocurrency promotion on the market. This procedure is called ICO (initial coin offering). Obviously, anyone may easily join ICO and profit may be huge — as much as dozens of thousands percent of the initial price. But it can only happen if the project is successfully developed and entered the market. Meanwhile, it's really complicated now when the market is crowded with all kinds of ICO's. At the same time, many projects, even those that turn out to be unsuccessful in the end, usually generate profit at the first stage, even if it's small. There're two key points to pay attention to when investing in ICO tokens. Make sure the team is honest and the project is promising: the web-site must indicate the team's contacts, a complete description of the project and the customer support service. Additionally, it must contain a mandatory warning about the risks related to ICO investments. ICO investments are passive — ICO tokens cannot be traded which makes them still more risky. In practice, if the project fails, there's no way to get your investment back. Cryptocurrency Currently, over 2,000 various cryptocurrencies that have confirmed their viability are being traded. You can make a passive investment or trade on the exchange. However, not all cryptocurrencies are profitable investment-wise — most coins cost little and are traded in low volumes. At the same time, some new cryptocurrencies are quite promising and could abruptly surge in price and generate a high profit for their holders. All cryptocurrencies are characterized by volatility, i. e. exchange rate fluctuations. Volatility makes it difficult to forecast the price, thus increasing the risk of losses even if the investment amount is not big. Overall, the TOP cryptocurrencies cost more and more with each passing year; therefore, long-term investments in these currencies generally produce an excellent profit. Lesser known coins are less predictable and could either surge or remain at the same level for a long time or experience an abrupt fall. However, if a coin does surge, it'll generate a lot more profit than TOP cryptocurrencies. Off-top coins could grow in price a dozen, hundred or even thousand times. It should also be noted that even if coin price doesn't grow, unlike ICO tokens, the existing cryptocurrencies may be sold to retrieve your investment or minimize losses. Conclusion: Investing in ICO tokens means a high risk, a huge profit in case of success and inability to make up for losses in case of failure. Investing in off-TOP cryptocurrencies involves a high risk, a big income and capability to partially make up for losses in case of failure. Investing in TOP cryptocurrencies means the highest level of stability on the crypto market, a lower income than off-TOP coins and ICO tokens and the biggest recovery of losses in case of failure.
  5. What is an Order Book on the Cryptoexchange? An order book is a serious and efficient tool that can be used to analyze the cryptocurrency situation. This is how it works. Buying and selling The order book is a visualization of bids and asks on the exchange. It provides you with in-depth information about the correlation and volume of cryptocurrency demand and supply in real time. On SIGEN the blue part (green or other colors on other exchanges) of the order book shows Buy Orders. The red part shows Sell Orders. Consequently, the market price is most often between the best sell price and the best buy price. Information in the order book reflects the depth and sentiment of the market and can be used to make pretty accurate forecasts regarding cryptocurrency price movement. The order book shows the biggest orders that can be used to make trading decisions. Pricing The order books allows you to simultaneously see two price categories: the topmost Buy Order reflects the highest price buyers are ready to pay for cryptocurrency while the topmost Sell Order reflects the lowest price sellers are ready to sell the asset for. For instance, the price in the order book is fixed the following way: when cryptocurrency is sold at a favorable price, it's replaced by another order with the ask price higher than in the previous order. Transactions follow one another, with each subsequent one more expensive than the previous one. With falling prices, the situation is similar, except that the buyer creates a low-price order and when this order “plays out”, another order is created, with an even lower price. As a rule of thumb, picking the entrance point with the help of the order book works best for players who aim to hold their positions over some trading sessions. Whatever purposes you are to use the order book for, you should do so carefully. Why? We'll tell you in our next publication.
  6. Scam or No Scam — This is the Question All of you probably know that “scam” literally means con or fraud. However, in the online world, this term has a narrower meaning — raising funds for an allegedly promising project that will then disappear together with the investors' money. Pre-Scam Scam-projects usually spring up in hype industries, i. e. the fastest-growing sectors. Cryptocurrencies and Blockchain are a hype sector now; therefore, a lot of conmen find their investor victims in this area. A scam project is very hard to identify initially. Since cryptoindustry grows very fast, no developers can be confident their project will be a success. The difference between a scam and any other project is that scam has no success embedded in it — it's just about collecting money from the investors. However, there's a range of characteristics that might prove a project is a scam. Scam Characteristics - Regular technical issues on the project web-site, DDoS attacks and failures may indicated a project is a scam. - An important scam characteristic is the low activity of the support service. No one answers your questions, no one responds to your comments or replies with trivialities. Despite the announced big plans, the project makes no headway and does not grow. - Problems related to withdrawing or getting back your funds are probably the most obvious characteristic of scam. In the case of cryptocurrencies, it may be an issue related to selling the tokens. Unfortunately, if the investor reaches this stage, it's hardly possible to get back the invested funds. - A lot of negative reviews are published online, there's a strong negative feeling around the project on professional forums — this is what you should look out for. Cryptocurrencies are still an area for the “advanced” investors who understand what they invest in — don't ignore their opinion. These are the key characteristics of scam projects. Each characteristic on its own may simply mean that a project is experiencing some growth difficulties. Together, however, these characteristics are a sign it's not safe and the project is, in all probability, a scam.
  7. Cryptocurrency Trading Strategies: Arbitrage In previous publications, we talked about some popular trading strategies, such as scalping and news based trading. Today, we'll tell you about another strategy — arbitrage. The arbitrage strategy is when a trader trades on multiple exchanges. They use the difference in cryptocurrency prices on different exchanges and makes a profit on this difference. The trader compares prices on multiple exchanges and calculates the profit: where cryptocurrency can be bought at a lower price and sold at a higher price. In other words, the trader compares the price of the same cryptocurrency on different exchanges and calculates when the profit will be larger. Arbitrage is not an easy-to-use strategy, but it's quite profitable This strategy cannot be regarded as an easy-to-use strategy, but such trading can be the most profitable. To engage in arbitrage, you need to register accounts on multiple cryptoexchanges and carefully analyze and memorize their respective functionalities. You need to do it to rapidly respond and not to lag behind when you create buy/sell orders. It's important to correctly calculate fees to be paid for transferring funds between exchanges and to account for the deposit/withdrawal rate. You should also analyze and memorize how prices usually change on specific platforms. Just like with any other strategy, it's good to master analytical tools, learn how to rapidly and competently read and understand charts.
  8. Hashing and Hash Rate as the Basis of the Cryptocurrency World The world of cryptocurrencies is full of terms which are worth knowing in order to understand how the market operates. Let's have a look at the concepts of hash rate and hashing. Hashing Hashing is finding a solution to a math problems by using a miner's computing system. In other words, it's the cornerstone of the cryptocurrency system. Its functions are similar to the ones of a “printing press” in the conventional monetary system. Hash Rate A hash rate reflects the number of mining cycles a miner's computing system can run per second to find the right solution to the problem. Consequently, the higher the hash rate is, the sooner a miner can solve math problems and the more reward they can earn. Cryptocurrency networks also have a hash rate that reflects the total computing power of all mining devices. Therefore, to be able to mine cryptocurrency in networks with a high hash rate, you must have a high hash rate of your own, i. e. more powerful devices. Hash rate is measured in: - hash/second (H/s) — 1 (the lowest); - kilohash/second (Kh/s) — 1,000; - megahash/second (MH/s) — 1 mln; - gigahash/second (GH/s) — 1 bln; - terahash/second (TH/s) — 1 trillion; - petahash/second (PH/s) — 1 quadrillion. The hash rate measured in H/s is not used any more since the difficulty rate of any cryptocurrency network is continuously growing and requires more computing power. The quest to reduce consumption while preserving the rate of solving problems is the key issue for a miner. FYI, the hash rate is over 33,000,000 TH/s in the Bitcoin network, about 312 TH/s for Litecoin, and 278 TH/s for Ethereum. In other words, the Bitcoin hash rate is and will remain the highest. Bitcoin's network has the most power, but mining the first-ever cryptocurrency is the most difficult task, too. The concepts of hashing and hash rate are relevant for the understanding of how cryptocurrency is mined and can clarify the question of cryptocurrency prospects.
  9. Cryptocurrency Trading Strategies: News Based Trading It is rightfully assumed that cryptocurrency prices are strongly affected by news. News based trading is one of the popular methods to trade on cryptoexchange. Let's have a closer look at some of the fundamental principles you need to adhere to in order to preserve and increase your funds. Most traders operate as follows: When news are bad, all traders fear a drop in price and engage in a “sale”. When news are good, they buy cryptocurrency. This is an adequate response to news. However, in terms of making profit this is not always the right strategy. If you want to make profit, the right strategy would be the opposite one: When news is bad, buy cryptocurrency. When news is good, sell cryptocurrency. In this case, you'll be able to make profit since cryptocurrency price is lower when news are bad. Sources A lot of beginning investors and traders notice that news have an impact on the Bitcoin price. A lot of them try to trade based on their own interpretation of the news. They soon can see that they suffer losses or fail to make profit by misinterpreting an event. The key reason for misinterpreting is using an unreliable source of news or, more often, a source that publishes the news too late for making trading decisions. Therefore, you need to find an adequate source of news. One of the best sources is forums and blogs. It's also important that forum and blog participants share their trading knowledge and experience and analyze errors and problems. Local manipulators Some players on cryptocurrency exchanges set up groups tasked with initiating cryptocurrency price movement in the right direction. They can have significant means and use them to rapidly increase or decrease the price. However, local manipulators don't need to spend their own funds — they could just make a stir around a piece of news and force traders buy or sell cryptocurrency. This is exactly when manipulators make a profit by making the right bids. If an exchange has a chat, it's an advantage for manipulators since they can use it to directly influence traders. There's some speculation — though having no proof just yet — that certain global news regarding cryptocurrencies are also initiated by manipulator groups. Operations of some exchanges were even suspended this and last years on suspicion of using insider information. Therefore, even if you trust your source, you must always double-check all news, employ analytical tools and compare price movement on various trading platforms.
  10. Cryptocurrency Trading Strategies: Scalping Cryptocurrencies as a trading asset have not been around for long, but many traders have figured out pretty fast that cryptocurrency trading has its own patterns which allow to develop trading strategies. One of these strategies is scalping. Basics of scalping Scalping is the execution of multiple short-term transactions aiming to make profit on the intraday fluctuations of cryptocurrency prices. Profits made in each transaction are small, but they can compound into a large gain. The trader will first carefully study cryptocurrency price trends using charts, latest transactions and the order book. They will then position their orders and closely monitor cryptocurrency behavior to make an instant profit. Advantages of scalping Scalping uses the high volatility of cryptocurrency prices while decreasing dependence on market trends. In other words, the trader who uses this strategy can make profit in any market conditions: both on the rise, and on the downturn. Even though this strategy requires a great deal of concentration and self-discipline, it can also bring in a fair daily return.
  11. Hodlers as the Basis of the Crypto Market The HODL strategy on the cryptocurrency market refers to an investor holding onto their assets despite all events. I AM HODLING The term “HODL” is derived from a misspelling by a Bitcoin investor back in 2013 when a post titled “I AM HODLING” was published at one of the forums. What he meant was “to hold”, but Bitcoin supporters enjoyed this misspelling so much that they started using it to denote their faith in Bitcoin's ultimate success. Hodlers even have a kind of a motto: “Hold On for Dear Life” — hold your assets as if your life depends on it. Putting emotions aside, this strategy is the easiest for the investor: having bought or mined bitcoins or other cryptocurrencies, the investor has to refrain from selling or exchanging it, they just have to hold it in their wallet. But is it profitable? Hodler's profit Historically, being a hodler in the crypto market is quite profitable. Let's look at Bitcoin as an example and see how its price changed over time. In 2013, when the term was coined, Bitcoin cost $600. In 2014 and 2015, its price plunged by almost two times, but in 2016 it shot up to $1,000 and continued to rise until late 2017 when it reached $20,000. Even now, after Bitcoin price plummeted, it still costs over 10 times more than back in 2013. If we compare the current price of Bitcoin with its launch price, many hodlers are actual millionaires. Hodlers “hover” behind many cryptocurrencies. For example, hodlers who bought Litecoin before March 2017 when it cost around $3 per coin made a decent buck. By late 2017, the price of Litecoin surged to almost $400. The profit margin was over 100 times. Even if Litecoin costs about $57, hodlers are at an advantage in any case.
  12. Bears pushing down: what is the bear trend in the cryptocurrency market? Last time, we told you about the bulls in the cryptocurrency market. Today, we are going to talk what the bears do. The bears attack from above Many traders believe that the bears attack their prey swiping its paws downward. Therefore, when the price of the cryptocurrency is falling, and each subsequent value is lower than the previous one, and it is called bear trend. In such situation, people say bears dominate the market and sell their assets. Among them, there are many bears who know how to earn on the falling price. However, many participants of the market wait for the approximation to the lowest point of the trend and the further growth. It’s considered a good moment for the entry on the market. Therefore, many people believe that the start of the bear trend is a good time for selling, and the end of the bear trend is a good moment for purchases. How to recognize the bears The trader should determine the start of a bear market as soon as possible. For that, it’s necessary to see the cryptocurrency price diagram or draw it on your own using two or three points of the cryptocurrency price. One can easily see the downward trend. It is just the same as with the bull trend. There’s no need to hurry up and take hasty decisions. If the price is moving down it doesn’t mean the bear trend. It can be just a correction at the market. Wait for several days, then you will be able to determine the presence of the sustainable trend. For the cryptocurrencies market, it’s extremely important as the price fluctuations can occur very quickly, just in several hours.
  13. Almost everything can be bought with Bitcoin And that’s true indeed. Despite constant rumors about the approaching Bitcoin banning, it becomes ever more firmly entrenched in everyday life. It is also misleading to consider it just as an investment tool, since it has already been actively used as a means of payment. Today you can pay for many goods and services with Bitcoin all over the world Here are a few examples: - In Czechia, most auto dealers accept payment in Bitcoins, including a popular Alza - it is the easiest thing to pay here using “digital gold”, while in a matter of minutes. - Many think that Bitcoin is banned in China; however, reality says otherwise. A lot of stores accept Bitcoins, whereas not hiding it from the government at all. For example, you may buy sports cars with cryptocurrency - right on the stand there are prices in Bitcoin and in the national currency. - The Knox Group of companies in the United Arab Emirates sells real estate for Bitcoins - houses, apartments, and commercial property. It should be mentioned that it has quite a few customers. In addition, in Dubai it is possible to buy and rent cars using cryptocurrency, which is very popular. - The Magnum Real Estate, a property management company based in New York, is engaged in similar activity with Bitcoin. - Tesla electric cars are sold worldwide for Bitcoins. It has already become a kind of the mainstream - to buy innovative cars for innovative money. - Many European and American airline companies have already been selling air tickets for Bitcoins worldwide. Some of them also offer to pay with cryptocurrency for meals and drinks on board, whereas often with zero transfer fees. - A number of travel companies accept Bitcoin as well, for instance, Destina travel agency in Spain. You can buy there all inclusive tours, in other words, to rest absolutely without cash. By the way, after the company have added the possibility to make settlements with Bitcoin, demand for its services increased by 150%. - It is also possible to use Bitcoins to pay education at high ranking universities - University of Cumbria in Great Britain, Kings College in the USA, and others. A pioneer in this direction became one of Cyprus universities. - Thousand web shops around the world accept Bitcoins for payment. With cryptocurrency you can buy virtually everything: ranging from foodstuff to household appliances. - In big cities it is already possible to pay with cryptocurrency at a cafe: order a cup of coffee, pizza, beer, and various snacks. But this list is far from complete - in fact, you can pay with Bitcoin in much more cases. With each passing day, the number of companies and stores willing to accept cryptocurrency for payment grows. So soon in everyday life, we will be able to do without cash. Isn’t it cool!?
  14. Bulls Pushing Up: What is the Bull Trend in the Cryptocurrency Market The cryptocurrency market is governed by two types of traders — the bulls and the bears. Today, we're going to review what the bulls do. Why the Bull? As traders themselves say, if the bull attacks it's always from the bottom upwards, by thrusting the opponent with its horns and tossing them up. In other words, a bull trend is an increase in the price of cryptocurrencies when the market is kind of pushing the price from the bottom point upwards. It's easy to see that a bull trend is developing — it's sufficient to have a look at the cryptocurrency price diagram. An upward trend is a sequence of price values, with each subsequent value higher than the previous one. If the price goes up and immediately back down again — this is no trend, it's a short-term price increase. When, however, the price moves from one maximum value to another, i. e. when the overall price grows fast with slight downward fluctuations, this is the upward — bull — trend. What shall I do? A trader must be able to see when the market enters the bull trend rather than simply being adjusted. Many traders think that the start of a sustainable bull trend is the best time to enter the market since the stock price is constantly rising. Most traders prefer the bull trend as its makes earning a profit easier and faster. When the stock price has been rising for a long period of time, the bulls are said to govern the market. One should remember, however, that a trend must persist for at least several days rather than hours. If a trader prematurely views a short-term market move as a long-term trend, they might sustain losses. It bears a special importance on the cryptocurrency market, with expensive cryptocurrencies such as Bitcoin or Litecoin in particular, since the price behavior may change at rapid-fire pace, within a few hours, while losses may be huge. However, if a trader is right about picking up on a bull trend, their profits are going to be high.
  15. Trust your money to no one Beginning traders often get hooked by "experienced investors" who offer their services regarding some "profitable" investment, promising only profits and no losses. But most of the time, such proposals are cover for amateurs seeking to make money at someone else's expense. Trusting such people puts you at risk of going bust, while your "benefactor" won't lose anything at all. After all, if the deal ends up being profitable, he gets a percentage for his services, well. If the investment tanks, only you lose since he isn't investing his own money, only yours. Do your own research Since the cryptocurrency market is virtually unpredictable, even a truly experienced trader with solid capital can't say with 100% certainty how a particular coin will behave in the near future. Honest people simply won't promise you anything. Mountains of gold "no matter what" are usually promised by scammers who have no qualms about profiting from your naivete and trust. To stay in the black, study the market yourself and learn to do analysis. Do not succumb to the desire to make money quickly with someone else's help. Be wise: don't trust your assets to outsiders; manage your own funds. May good profits come your way!
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