Cryptocointrade https://www.cryptocointrade.com/ Trade cryptocurrencies Wed, 30 Nov 2022 09:12:38 +0000 en-US hourly 1 https://wordpress.org/?v=6.1.1 https://www.cryptocointrade.com/wp-content/uploads/2019/09/cropped-CryptoCoinTrade-Logo-Favicon-32x32.png Cryptocointrade https://www.cryptocointrade.com/ 32 32 Best Ethereum ETH Fundamental Price Analysis Indicators https://www.cryptocointrade.com/uncategorized/best-ethereum-eth-fundamental-price-analysis-indicators/ Fri, 25 Nov 2022 09:53:16 +0000 https://www.cryptocointrade.com/?p=25409 We have summarized the best Ethereum ETH fundamental indicators for price analysis. As for all models, there are always limitations, and no model is 100% accurate. However, if you combine and evaluate a few models and compare them, you might have a chance to come closer to an accurate conclusion. No Financial Advice, Do your […]

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We have summarized the best Ethereum ETH fundamental indicators for price analysis.

As for all models, there are always limitations, and no model is 100% accurate. However, if you combine and evaluate a few models and compare them, you might have a chance to come closer to an accurate conclusion.

No Financial Advice, Do your own research. Information source only.

Summary: Ethereum ETH Fundamental Indicators

In the table, we have summarized the ETH fundamental indicators we have identified and analyzed with Glassnode software. 

Also, you see the current state of each fundamental indicator.

Read more and we describe each model for price analysis.

Ethereum Gas Fees (Gwei)

Ethereum Mean transaction gas price (Gwei)

Ethereum gas fees are an indication of the demand on the blockchain.

It’s a measurement of how many users are willing to pay transaction fees to be added to the blockchain.

As you can see in the graph above, the transaction gas price in gwei on the Ethereum network peaked during the summer of 2020, the 2021 spring, and the 2021 fall.

Summer 2020 was the Defi summer when everything connected or related to Web3 and Defi had a nice rush. Also, Microstrategy started to accumulate Bitcoin in August 2020. Spring 2021 was when Tesla announced they bought Bitcoin and Coinbase did their IPO. Fall 2021 was when all markets peaked before the global inflation war started with higher interest rate. Of course, later the war in Ukraine started early 2022, and many supply chains were interrupted.

Fall 2022 the price has fallen back and the transaction fees are low which is both perfect for an accumulation phase.

Ethereum MVRV Ratio - Market Value / Realized Value

The Market Value to Realized Value Ratio (MVRV Ration)  gives an indication of when ETH is traded price is below a “fair value”.

The metric was created by David Puell and Murad Muhmudov. Here, you can read more about the MVRV ratio.

Ethereum NUPL - Net unrealized profit/loss

Net Unrealized Profit/Loss (NUPL) is the difference between Relative Unrealized Profit and Relative Unrealized Loss.

This ETH fundamental metric indicates whether the market is in capitulation or euphoria.

As you can see in the graph above from Glassnode, the color scheme has correlated reasonably well with the price in history. You can see a similar pattern with the Bitcoin BTC NUPL fundamental indicator.

  • Red: Capitulation
  • Orange: Hope-Fear
  • Yellow: Optimism – Anxiety
  • Green: Belief – Denial
  • Blue: Euphoria – Greed

Ethereum Accumulation

Number of Ethereum addresses holding over 1, 10, 100, 1.000, 10.000. As you can see, they are all increasing in the end indicating there is less and less supply in ETH on the market. 

In the graph above from Glassnode, you can see ETH addresses holding over a certain amount of ETH in them according to the color scheme below (also seen in the graph).

As you can see, all addresses are increasing indicating ETH is in a massive accumulation phase.

Ethereum Staking Deposits

Ethereum ETH 2.0 total value staked graph from Glassnode

Number of Ethereum deposited into ETH 2.0 staking contracts is increasing over time and taking supply of the open market.

Ethereum ETH 2.0 staking deposits give information about how many ETH is leaving the market to be staked. Staked ETH 2.0 has no release date, and these coins are taken off the market, decreasing the available supply on the open market.

As you can see in the graph above from Glassnode, the Ethereum ETH 2.0 staking deposits are increasing steadily over time. The means there is less and less available ETH supply to buy and less ETH is required to move the market price.

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Best Bitcoin Fundamental Indicators for Price Analysis https://www.cryptocointrade.com/fundamental-analysis/best-bitcoin-fundamental-indicators-for-price-analysis/ Thu, 24 Nov 2022 07:43:26 +0000 https://www.cryptocointrade.com/?p=25316 We list some of the best Bitcoin fundamental indicators for price analysis. We have collected them from some of the best onchain data providers online, including Glassnoce and TradingView. There is stock-to-flow, MVRV ratio, stablecoin supply ratio oscillator, Hash ribbon, NUPL, and more.  Summary: Bitcoin Fundamental Indicators See the complete list of the 7 best […]

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We list some of the best Bitcoin fundamental indicators for price analysis.

We have collected them from some of the best onchain data providers online, including Glassnoce and TradingView.

There is stock-to-flow, MVRV ratio, stablecoin supply ratio oscillator, Hash ribbon, NUPL, and more. 

Summary: Bitcoin Fundamental Indicators

See the complete list of the 7 best Bitcoin fundamental indicators in the table. Also, there is a column telling you if the indicator shows an undervalued Bitcoin price or overvalued at the publishing time.

What is a Bitcoin Fundamental Indicator?

Bitcoin fundamental indicators are helpful for Bitcoin price analysis.

By looking at several different Bitcoin fundamental indicators it might be possible to get an understanding of if Bitcoin is overvalued or undervalued. 

A good Bitcoin fundamental indicator is:

  1. A set of data that has been correlated to the price in the past
  2. A set of data that is possible to connect to the “intrinsic value” of the Bitcoin network
Examples of number 2 can be data connected to number of users, addresses, mining activity, scarcity etc.

Crypto fundamental analysis VS Equity fundamentals

Traditional fundamental analysts from the stock and equity market generally look to business metrics to figure out what they view to be its actual value.

Common fundamental indicators include earnings per share (how much profit a company makes for each outstanding share) or the price-to-book ratio (how investors value the company versus its book value). 

They might do this for several businesses within a niche, for example, to figure out how their prospective investment stands in relation to others.

What is on-chain metrics?

On-chain metrics can be observed by looking at data provided by the blockchain. Most of the data regarding Bitcoin is public and on-chain. However, there are online services collecting this data into graphs and diagrams for a fee (Glassnode is one example used in this article).

What is Stock-to-Flow Bitcoin Fundamental Indicator?

The Stock-to-Flow (S/F) Ratio is a popular fundamental price model and indicator for Bitcoin implemented by PlanB.

The model assumes that scarcity drives the value of an asset, including Bitcoin.

Definition: Stock to Flow is the Ratio of the current circulating Bitcoin supply and the flow of newly mined Bitcoins.

The price of Bitcoin has historically followed the S/F Ratio. Therefore it is a model that can be used to predict future Bitcoin valuations, or at least how accurate the current price is according to the model.

Colors represent the number of days until the next Bitcoin halving. 

  • Blue: Around 1400 days left until halving
  • Red: 0 days left to halve

MVRV - Market Value/Realized Value Ratio

This graph was taken from TradingView. Read more in our TradingView review.

The MVRV ratio Market value / Realized value ratio is a Bitcoin fundamental price indicator. It is to understand when the Bitcoin price is above or below “fair value” comparing the network value.

MVRV was created by Murad Mahmudov and David Puell while Nic Carter invented Realised Cap and Antoine Le Calvez presented it. Read more about the history and the details of the MVRV ratio.

Realized Cap is an alternative approach to Market Cap as a measure of network valuation.

Definition:  MVRV = Market Cap / Realised Cap

Market cap: Market cap is calculated by taking the last traded price and multiplying it by the coins in circulation.

Realized cap: Realised Cap approximates the value paid for all Bitcoins by summing the market value when they last moved on the blockchain.

Difficulty Ribbon

The Difficulty Ribbon indicator creates a band of different moving averages (MA) of the Bitcoin mining difficulty.

It uses different colors for the moving averages (200d, 128d, 90d, 60d, 40d, 25d, 14d), as shown in the graph above. The metric is the estimated number of hashes for mining a block. 

Historically, periods when the ribbon compresses have been good buying opportunities. Willy Woo created the Difficulty Ribbon. 

Explanation: Bitcoin miners sell some of their mined coins to stay operational.

The weakest miners have to sell more of their coins to remain the production.

When the mining operations become unsustainable, they capitulate (they can’t pay for maintaining the operations anymore). The Bitcoin price is too low to pay for the costs.

At this point, the hashing power and network difficulty reduce and cause ribbon compression.

This pattern usually comes at the end of bear cycles; after miners capitulate, the lack of miner selling pressure allows the price to stabilize and then climb. This is a classic accumulation bottom.

Hash Ribbon

Like the Difficulty Ribbon above, the Hash Ribbon is a market indicator that assumes that Bitcoin tends to reach a bottom when miners capitulate(Bitcoin price is too low to pay for mining expenses).

The Hash Ribbon indicates that the worst of the miner capitulation is over when the 30d MA of the hash rate crosses above the 60d MA (switch from light red to dark red areas).

Historically, this is when price momentum switches from negative to positive. Charles Edwards created this fundamental Bitcoin indicator, and he describes the Hash Ribbon in detail in this blog post.

Stablecoin Supply Ratio Oscillator

The Stablecoin Oscillator introduced by Willy Woo is derived from the Stablecoin Supply Ratio (SSR), and quantifies how the 200d SMA of the SSR moves within the Bollinger Bands BB(200, 2). 

Historically, the stablecoin supply has been high at the Bitcoin price peaks and low close to the price bottoms. As you can see in the graph above, the Stablecoin Oscillator is not as low as it has been during the previous Bitcoin price bottoms, but it’s close to getting there.

Read more about SSR.

Altcoin Season Index

This graph was taken from Tokenmetrics.

The Bitcoin vs. Altcoin Season indicator compares the cumulative returns of altcoins relative to bitcoin to identify whether we are in Bitcoin or Altcoin Season.

Definition: If 75% of the Top 50 coins performed better than Bitcoin over the last season (90 days), it is Altcoin Season. Excluded from the Top 50 are Stablecoins (Tether, DAI…) and asset-backed tokens (WBTC, stETH, cLINK,…)

NUPL - Net Unrealized Profit/Loss

Bitcoin Net unrealized profit-loss NUPL chart from Glassnoce

NUPL (Net Unrealized Profit/Loss) looks at the difference between Unrealized Profit and Unrealized Loss to determine whether the network is currently in a state of profit or loss.

Unrealized profit means that there are Bitcoin addresses holding Bitcoin in profit (bought for less than the current market price).

Unrealized loss means that Bitcoin addresses hold the Bitcoin they acquired for a higher price than the current market price.

The different colours represent the status of the network

  • Red: Capitulation
  • Orange: Hope-Fear
  • Yellow: Optimism – Anxiety
  • Gree: Belief – Denial
  • Blue: Euphoria – Greed

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Crypto Exchanges with Merkle Tree Proof of Funds and Reserves https://www.cryptocointrade.com/trading-platforms/crypto-exchanges-with-merkle-tree-proof-of-funds-and-reserves/ Fri, 11 Nov 2022 08:47:53 +0000 https://www.cryptocointrade.com/?p=24761 Crypto exchanges have realized they must introduce the Merkle tree proof of funds. The discussion accelerated after the FTX collapse. However, other failures in the industry have also contributed to highlighting the need for this in the crypto industry. Some of these failures are Celsius Network, BlockFi, Voyager, Three Arrows Capital, Alleged and last FTX. […]

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Crypto exchanges have realized they must introduce the Merkle tree proof of funds.

The discussion accelerated after the FTX collapse. However, other failures in the industry have also contributed to highlighting the need for this in the crypto industry. Some of these failures are Celsius Network, BlockFi, Voyager, Three Arrows Capital, Alleged and last FTX.

Crypto Exchanges with Merkle Tree Proof of funds

Gate.io was the first crypto exchange implementing a 3rd party auditor for proof of funds.

Nexo was the first crypto lending platform to hire a 3rd party auditor for full transparency regarding proof-of-reserves.

After, they have pushing other crypto-related companies to do the same and Kraken did follow in August 2022. However, after the FTX collapse in November 2022 the topic is superhot and almost all major crypto exchanges are doing statements about implementing the Merkle tree proof-of-reserves ASAP.

What is a Merkle Tree?

The Merkle tree from Ralph C Merkles’ publication in 1974. See the link below.

A Merkle tree allows two parties to agree on a shared secret by exchanging messages, even if they have no secrets in common beforehand.

The first-ever mention of such a tree was published in Protocols for Public Key Cryptosystems 1978 by  Ralph C Merkle. 

What is Proof of reserves?

No formally accepted rules or procedures define crypto proof of reserves audit.

Still, in general, a Proof of Reserves (PoR) is an independent audit conducted by a third party.

The primary mission of the 3rd party in this contest is to ensure that a custodian holds the assets it claims on behalf of its clients.

This auditor takes an anonymized snapshot of all balances held and aggregates them into a Merkle tree — a privacy-friendly data structure that encapsulates all client balances.

From there, the auditor obtains a Merkle root: a cryptographic fingerprint that uniquely identifies the combination of these balances when the snapshot was created.

NEXO - First Crypto Exchange with Proof of Reserves

NEXO and Armanino proof of reserves image

Nexo Passes Real-Time Armanino Audit in September 2021, Becomes the First Crypto Lender to Shed Light on Reserves

  • Fully-Backed: Your holdings on Nexo’s platform are backed by assets by more than 100%.
  • Properly Managed: Third-party assurance (Aramino LLP) that your funds on the Nexo platform are appropriately managed and accounted for.
  • Always Available: 24/7 proof of Nexo’s ability to meet all liabilities owed to you at any time.

See the latest result from the proof of reserves audit performed by Aramino for the Nexo crypto lending and exchange platform.

Kraken - Crypto Exchange with Proof of Reserves

Kraken was among the first significant crypto exchanges to implement proof-of-reserves in August 2022.

This happened before the crypto community screamed about it after the FTX crash in early November 2022. It’s essential with such inventors like Kraken in the crypto space working proactively to avoid such significant drops in trustworthiness that the FTX crashed caused.

How to verify that your account was audited on Kraken?

Step-by-step guide on how to verify your funds on Kraken.

  1. Login to your Kraken account
  2. Click on your name in the upper right corner and choose “Audits.” Here, you will find the historical proof of reserves conducted by Kraken.
  3. Select the audit date you want to verify. The Record ID enables you to confirm that your account balance was included via the third-party auditor.

How to verify your record with the auditor?

By following this step-by-step guide, you can easily verify your account balance against the 3rd party auditor with your Record ID.

1. Copy the Record ID from your account (see the previous section).

2. Visit the Aramino website (or any third-party auditor responsible for the audit)

3. Enter your Record ID in the third-party auditor’s portal to verify your account balances.

Gate.io - Crypto Exchange with Proof of Reserves

Gate.io uses Armanino to observe and audit their custody holdings in bitcoin and ether assets.

In cooperation with leading U.S. firm Armanino LLP, Gate.io was the first to conduct Proof of Reserves audits in this manner back in 2020.

Read more about the exchange in our Gate.io review.

Crypto Proof of Reserves Roadmap from Exchanges

Many of the top Bitcoin and altcoin trading exchanges are now making statements about implementing proof-of-reserves and even standardizing this in the crypto industry. 

Binance - Proof of Reserves

Binance has already started working on going fully transparent with its holdings.

Binance is planning to introduce a Merkle tree proof of reserves and expects to take at least a month.

In the meantime, CZ is publishing all the public addresses held by Binance.

What is Binance SAFU fund?

Binance Secure Asset Fund for Users (SAFU) is an emergency insurance fund established by Binance in July 2018 to protect users’ funds.

Binance committed a percentage of trading fees to grow it to a sizable level of US$1 billion based on January 29, 2022. Binance further topped the SAFU with $ 1 billion on the 9th of November 2022.

The fund’s value will fluctuate based on the market since it consists of BNB, BUSD, and BTC

Kucoin - Proof of Reserves

At the moment (November 2022), Prof-of-reserves is at the top of all Crypto exchange CEO priorities. They are tweeting about this topic, publishing publishes addresses, and communicating plans to introduce Merkle tree proof-of-reserves.

Bybit - Proof of Reserves

Bybit realized the need for proof of reserves after the FTX collapse. As stated in the tweet above, they will start working on a Merkle tree proof of funds.

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Free Crypto Analysis Tools for Bitcoin and Altcoins https://www.cryptocointrade.com/fundamental-analysis/free-crypto-analysis-tools-for-bitcoin-and-altcoins/ Mon, 31 Oct 2022 13:21:39 +0000 https://www.cryptocointrade.com/?p=24406 We list the best free crypto analyzing tools for cryptocurrency statistics and on-chain data.  Here, you will find  Glassnode – Onchain Data from Blockchains Altcoin Season Index – Bitcoin VS Altcoin Timing Coinmarketcal – Cryptocurrency Calendar CryptoQuant – Cryptocurrency Fund Flows Coindance – Onchain Data 3Commas – Backtesting a strategy Coinglass – Derivative data analytics […]

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We list the best free crypto analyzing tools for cryptocurrency statistics and on-chain data.

 Here, you will find 

  • Glassnode – Onchain Data from Blockchains
  • Altcoin Season Index – Bitcoin VS Altcoin Timing
  • Coinmarketcal – Cryptocurrency Calendar
  • CryptoQuant – Cryptocurrency Fund Flows
  • Coindance – Onchain Data
  • 3Commas – Backtesting a strategy
  • Coinglass – Derivative data analytics
  • Cryptopanic – Crypto news aggregator
  • Messari – Crypto research aggregator
  • TradingView – Charting Tool and Social Network
  • CryptoStats – Fees, DAO Balance, Inflation
  • Governance trackers – Tally, Messari, DeepDAO 
  • Telegram Bots – Ether drops bot, Token unlock bot
  • Highest Defi Yields – Nanoley, Stable Fish
  • NFT analyzing sites – Crypto Slam, NFT Nerds

1. Glassnode - Onchain Data from Blockchains

Glassnode builds applications that provide new ways of delivering insights into blockchains and cryptocurrencies by focusing on the most critical input source in the space: data from the blockchains.

Onchain data and market indicators

  • Exchange Inflow – How much money is going into the exchanges?
  • Exchange Outflow – How much money is going out from the exchanges?
  • NUPL (Net unrealized profit and loss) – How much of the circulating supply is in loss or profit? If many traders have unrealized profit, it can be a top, and vice versa if many people are sitting in unrealized loss, it can be close to the bottom.
  • New and active addresses – Overview of the markets. If there are a lot of new addresses, many newbies are probably entering the market.
  • Stock-to-flow Ratio (Following the Bitcoin halvings) – Famous to be used by PlanB.
  • Stock-to-flow deflection – When are we overvalued or undervalued compared to the fair value price from Stock-to-flow?
  • Stablecoin supply ratio – How many stablecoins are compared to Bitcoin?

Glassnode Stock To Flow

Stock To Flow Ratio Bitcoin and USD

2. Altcoin Season Index - Bitcoin VS Altcoins

The altcoin season index shows the quote ratios of 70 alternative cryptocurrencies to the price of Bitcoin. It can be used by traders as a diversification tool, as well as for forecasting the cryptocurrency market. As the name suggests, this tool is useful to time your funds transfers from Bitcoin to altcoin and vice versa.

The altcoin season index ranges from 0-100 where

  • Below 25 = Bitcoin season
  • Above 75 = Altcoin season

One strategy is to dollar cost average into altcoins when the index is below 25 and into Bitcoin when the index is above 75.

Altcoin Season Index Screenshot

The Altcoin season index from July 2022 to October 2022 hovered between 6-98.

3. CoinmarketCal - Cryptocurrency Calender

Coinmarketcal is a cryptocurrency calendar that tells you about important upcoming events related to a particular cryptocurrency project.

What are some examples of events upcoming for a cryptocurrency?

Some examples could be partnerships, technical updates, staking support, incoming NFTs, etc.

The community uploads the events, and the community verifies each event. Fake events will get downvoted.

4. CryptoQuant - Bitcoin and Altcoin Fund Flows

Cryptoquant is a data analytics website that give you graphic illustrations for BTC and ETH, and altcoin fund flows.

If traders are moving funds into an exchange, the intention could be to sell them and vice versa.

Some necessary charts from CryptoQuant

  • All exchange’s netflow (in or out) – If the netflow into exchanges is high, a potential selloff might come up. 
  • Miners data – If the miner’s outflow is high a miner dump might be upcoming.

5. Coindance - Onchain Data

Coindance is a great place to analyze hash rates, network nodes, transaction data, and much more.

In addition, you can easily see crypto adoption in various countries since you can break down blockchain data per country.

Global Bitcoin Legality presented with a world map and colours for each country where it is legal or illegal

Global Bitcoin Legality is presented with a world map and colors for each country where it is legal or illegal.

6. 3commas - Crypto Trading Bot

With 3commas, you can backtest a crypto trading strategy against historical price data.

Remember, historical performances don’t relate to future returns.

There is a possibility to simulate something in real time with play money via paper trading (paper trading on 3commas does not simulate liquidity and order books – not a problem for liquid markets or small-amount trading). 

Read more about crypto technical analysis.

7. Coinglass - Derivative data analytics tools

Coinglass gives you derivative trading data to form your strategy.

  • Includes futures and options funding rates
  • See how many traders are long VS short
  • Total liquidations across the markets (how many did get rekt from a sudden move in the market?)
  • You can check Greyscale fund flows – Good barometer for institutional fund flows
  • All futures exchanges orderbooks in one place

8. Cryptopanic - Crypto News Aggregator

Cryptopanic is one of the best crypto news aggregators. This tool aggregates many trusted crypto trading news sites and can save you hours from browsing the news sites yourself.

9. Messari - Crypto Research Aggregator

Messari is one of the best crypto research aggregators.

You can use Messari for many different purposes, including

  • Great to find a hidden gem altcoin
  • What is trending in the markets, scout new coins, and analyze them
  • A data-driven approach to identify altcoin prospects
  • Messari screener – sort coin data through customized filters like illiquid markets, volatility, sectors, transaction fees, and more
  • Sort gems by sector
  • Wash trading issue tool – Messari has created a list of 10 trusted exchanges

10. Tradingview - Charting Tool and Social Network

Tradingview is a cloud-based charting social network.

Some crypto TA experts and how they allocate their portfolio.

Can easily get an overview if the majority of the traders are bullish or bearish

Read more in our Tradingview review.

 

11. CryptoStats - Fees, Balance and Inflation

Crypto bundle of analyzing tools from Cryptostats.

Cryptofees

Cryptofees tells you how much users have paid in fees in the last 24 hours and the last seven days.

Remember that high transaction fees do not correspond to high demand since each transaction can cost a different price among the cryptocurrency networks.

Openorgs

Openorgs lists what each DAO has on its balance sheet.

You can see the treasury for each project and what cryptocurrency they hold.

Moneyprinter

Moneyprinter is a tool that keeps track of the inflation per cryptocurrency.

L2fees

L2fees tells you the fees on the ETH layer 2 solutions.

Gasfees

Gasfees tells you the transaction fees on most native blockchains, both in the native coin and in USD.

12. Governance Trackers

A governance tracker can help you to check when proposals will be passed so you can sell the news.

Tally Governance Tracker

Tally will show you the most active DAOs on Ethereum, Polygon, Avalanche, Optimism, and Arbitrum. All the DAOs with active proposals will show up. 

  • See the governance process for each DAO
  • Top voters in each DAO and voting power
  • You can create your proposal
  • Keep track of any selling pressure (for upcoming proposals and selling the news)

Messari Governance Tracker

Messari proposal tracker gives you an overview of the most active DAO and all the preliminary discussions before it is a passed proposal.

DeepDAO Governance Tracker

DeepDAO governance tracker can be used to sort a project by treasury value, token holders, and active voters.

You can see discussions and proposals in real-time on the DAO feed.

13. Telegram Bots

A few Telegram bots are helping you keep track of the cryptocurrency market.

Ether Drops Bot

Ether drops bot makes it possible to receive a telegram message when

  • Changes in prices
  • When a token is sent
  • When the liquidity is changed
  • Track specific wallets like the whales

Supports the chains Ethereum, Polygon, Fantom, Avalanche, Binance smart chain

In the free version, there is a limit on how many items you can track and how many messages you can receive.

Token Unlock Bot

Token unlock bot can track when early investors and the team can unlock their initial investment. A large unlock almost always lead to a large sell pressure.

There are only 2 info to set on the token unlock bot

  • Unlock info – set unlock dates for the coins and tokens the bot support
  • Alert – set alerts for a coin or a token

14. Highest Defi Yields

Two of the most valuable tools for finding the highest yield to earn passive income on your crypto holdings.

Nanoly

Nanoly keeps track of almost any yield on any Defi platform. Here, you can sort by yield and by total value lock.

A simple rule is

  • A low TLV or very high APY = Extremely high risk
  • High TVL and normal/low APY = Less risk than above

Also, check: how long the protocol has been around, audits, any historical hack, and the inflation rate.

Stable Fish

Stable fish tracks yield opportunities for stablecoins.

Here, remember the APY, TVL, and blockchain risks previously discussed. Also, consider how the yield is paid since you often receive it in a small volatile token.

15. NFT analyzing sites

Two of the best NFT analyzing sites.

Crypto Slam

Crypto slam is an excellent tool for analyzing NFTs. Some things you can do are

  • Check NFT prices
  • Dedicated tab for fan token
  • Show the number of buyers and number of transactions for an NFT
  • Spot bad NFT collections with few buyers and few transactions
  • Watch the popularity of a specific NFT

NFT Nerds

NFT nerds supply detailed data on mints and trades on ETH in real-time.

New NFT collections minted on every block

Buy instantly via the premium service.

The post Free Crypto Analysis Tools for Bitcoin and Altcoins appeared first on Cryptocointrade.

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Why is Binance the most popular trading site among all crypto investors? https://www.cryptocointrade.com/trading-platforms/why-is-binance-the-most-popular-trading-site-among-all-crypto-investors/ Thu, 27 Oct 2022 08:52:33 +0000 https://www.cryptocointrade.com/?p=24256 Binance is the most popular trading site among all top Bitcoin and crypto platforms and investors. But why? We analyze and break this question down into what crypto traders are looking for and how Binance offers this to it’s customers. What are crypto traders looking for? Binance delivers high quality to the end users serving […]

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Binance is the most popular trading site among all top Bitcoin and crypto platforms and investors.

But why?

We analyze and break this question down into what crypto traders are looking for and how Binance offers this to it’s customers.

What are crypto traders looking for?

Magnifying glass with the word quality

Binance delivers high quality to the end users serving their crypto trading clients.

How do we know that Binance delivers the highest quality, and how can we measure this?

Let’s break down and analyze some of the essential aspects to check before you sign up with a new crypto trading site, deposit, and start trading.

We have narrowed it down to four categories.

  1. Low trading fees
  2. Good deposit options
  3. Trading features options
  4. Listed pairs and trading volume

1. Low Crypto Trading Fees

costs sign with usd dollar bills illustrating trading fees

Binance has among the lowest crypto trading fees among all trading sites. They generally have the lowest trading fees in all categories, but they are not always easily comparable since they depend on many factors.

The default Binance trading fees are low. However, you can achieve super-low trading fees by

  1. Sign up through our referral ID to get -20% off all spot trading commissions
  2. Reduce your trading fees up to -25% by paying with BNB
  3. Level up your tier level by trading more or holding more BNB in  your account

Binance and Kucoin offers the lowest crypto trading fees among all crypto trading sites. See the full comparison of the lowest spot crypto trading fees.

2. Fiat Deposit Methods with Low Fees

transfer a USD bill between two mobile phones illustrating a deposit method

The first step to enter the crypto market is always to deposit fiat in one way. Therefor, a crypto trading platform must have many fiat deposit options with low fees to attract new users.

Today, many crypto trading sites offer deposit methods via bank transfer and credit card. However, they charge different fees for these services.

Binance accepts users worldwide, as you can read about in our Binance VS Kucoin comparison. Also, they are doing this with very competitive fiat onramp deposits and fees.

Binance accepts users from around the world, giving them the option to deposit in fiat currency. However, they don’t accept US customers like Kraken or Binance US.

3. Many Trading Features Options and Possibilities

A traffic sign with many possibilites illustrating Binance exchange with many trading features

You don’t want to transfer your funds to the new crypto trading platform just because you want to trade the derivative market instead for margin trading.

Also, there is a lot of KYC connected to creating new accounts, so if you are about to select one trading site, you want it to have as many trading possibilities as possible.

Transfers are also connected with a cost. 

Read more about Binance as the best crypto leverage trading platform.

Binance has the most trading possibilities and features among all trading platforms. Kucoin and Gate.io might be able to compete in the total number of services offered. However, if you provide a trading market, you must also have liquidity in the market, and here Binance is superior to its competitors with few exceptions. One is crypto options, where Deribit has the most trading possibilities and the most trading volume.

4. Listed Pairs and Trading Volume

Ethereum, Bitcoin, Ripple and Litecoin as real metal coins

Most crypto investors and traders want to explore more than a few markets and maybe even find a new crypto gem to invest in.

Therefore, a great crypto trading site must offer many listed trading pairs and even a launchpad for new projects.

In addition, a listing is not enough since the market must have a trading volume and liquidity. Hence, the spread is narrow, and there is a possibility of entering and exiting a position at any time.

Binance has many markets listed but is not the number one trading site for most listed cryptocurrencies. Here, Kucoin and Gate.io have more listings. However, as previously stated, the markets must also be liquidity. Otherwise, they don’t add much value. Binance is superior to all other platforms regarding liquidity and trading volume in almost all markets.

Summary - Most Popular Trading Site

Binance has an excellent overall quality product as the number one trading platform for cryptocurrencies. Binance has attracted the most users even if the platform is younger than Kraken or Coinbase.

Also, Binance has managed to supply liquidity and trading volume in many smaller crypto markets.

Lastly, Binance is innovative and often early to list new cryptocurrencies or adopt new crypto trading features.

The post Why is Binance the most popular trading site among all crypto investors? appeared first on Cryptocointrade.

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How to become a profitable crypto trader? https://www.cryptocointrade.com/crypto-trading-blog/how-to-become-a-profitable-crypto-trader/ Thu, 20 Oct 2022 03:43:03 +0000 https://www.cryptocointrade.com/?p=24218 We have collected information throughout the web to summarize what the most profitable traders have in common. Many dreams of becoming professional traders because of the freedom it creates. Imagine that you can wake up whenever you want and go and come to work as you like. In addition, everything you need is a Wifi […]

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We have collected information throughout the web to summarize what the most profitable traders have in common.

Many dreams of becoming professional traders because of the freedom it creates.

Imagine that you can wake up whenever you want and go and come to work as you like.

In addition, everything you need is a Wifi which makes it possible to work from anywhere in the world. Since the crypto markets are open 24/7, there is no need to be in the correct time zone either.

However, many influencers and media sometimes simplify the road to becoming successful and professional traders.

In this article, we have summarized four steps you will have to accomplish to be able to live on your trading.

  1. Optimize level for profits and losses
  2. Set goals for your trading
  3. Improve your self-discipline
  4. Socialize and connect with other professional traders

1. Optimize Levels for Profits and Losses

Optimize Levels for Profits Ans Losses - a man in a stair taking step by step

When taking a position, always add a stop loss level and a take profit level.

Make sure to have a logbook and note how the results would have been impacted if the levels were changed.

For example, note the outcome and the possible outcome if the stop loss level and the take profit level were 30% closer and further away from your set target.

When you have collected some data points, this will help you to understand if your stop losses and take profit levels are too tight or too wide.

Keep optimizing your levels for profits and losses all the time.

2. Set Goals for Your Trading

Crypto trading goals - arrow in bulls eye

Always avoid taking too large trades and positions about your total portfolio value. A standard benchmark is never having more than 1% of your trading portfolio in one place.

The level is individual since some traders take hedging positions and reduce the risk for each trade. 

Another example is to start thinking about what your monthly goal is to be able to live from your trading.

From here, break it down to daily profits. 

For example: Let’s say your monthly goal is $6000, and the daily goal is to make a $200 daily profit. Now, are you comfortable with these levels are do you need more each month to live on your trading?

If you think you need more, you will either need a more extensive portfolio value or you need to take a higher risk to reach that level.

Make sure to find a risk level appropriate for your portfolio value and that you are comfortable with. If you ever come into a position you need to “hunt” to get back on track you are at too high a risk level.

3. Improve Your Self Discipline

Your self-discipline level can never be good enough if you are about to become a professional, successful trader.

There will always be trades where you have to take losses, and you can always reduce the number of traders and decrease the amount for each transaction.

Here, you must have a process you believe in and improve over time and not make decisions based on fear, greed, or other emotions.

There are several ways to reduce emotional trading; here is one example.

Use three different portfolios and trading accounts.

  1. Crypto portfolio with no rules
  2. Crypto portfolio with strict rules
  3. The perfect dream portfolio

1. Crypto Portfolio with No Rules

No rules image

Test new strategies and get collect experience. Make sure to test new trading instruments and just collect as much information as possible.

2. Crypto Portfolio with strict rules

Follow the rules image

Here, you must follow your trading process and your trading rules. This is your everyday trading portfolio where you make the most trades and continuously follow up in your log book.

3. The perfect dream portfolio

Dream portfolio image

You only use this portfolio when the perfect opportunity appears, which is probably only a few times each month as a benchmark.

Remember, some weeks there might be several times, and sometimes there is not a single opportunity for several weeks. This is just how probability and randomness work.

All your requirements must have been ticked when you use this portfolio for trade.

For example: If you have a list of 10 requirements that you usually are waiting for 5-7 to be filled, this portfolio should only be used when all 10 requirements are checked.

4. Socialize and Connect with Other Professional Traders

Social trading - two girls sharing trading experience

Many traders feel lonely sitting in their homes, taking profits, and living their lives with limited social interactions.

Creating social interaction and a trading community has several benefits for you.

  1. A robust social network is essential for psychological and physical health. Several studies are pointing in the same direction. It’s crucial to have good mental health to manage successes and setbacks.
  2. It’s a big advantage to be able to learn from like-minded people.
  3. It’s a big benefit for people to talk to other people experienced similar situations. 

 

FAQ

Why is it so lucrative to become a professional trader?

There are essentially two things that attract people to become professional traders.

  1. You are directly evaluated as “wrong” or “right” by the market. It means your endorphin kickback comes very fast and sometimes immediately.  In addition, you are always continually assessed by an independent actor. No referee or boss is judging your behavior.
  2. You can compete in the same markets as the world’s best traders and on “almost” equal conditions. By “almost,” we mean that people with a higher net worth can more easily access information and trading tools since the cost of such helping tools is much less percentage-wise compared to total portfolio value.

What are the most significant risks of becoming a professional crypto trader?

There are several risks to becoming a professional crypto trader. The highest risk is losing control over the portfolio and taking more significant risks, not at all connected to your initial strategy and process.

If such a lousy spiral has started, it’s straightforward to find excuses such as “bad luck” or “extreme” market conditions.

Make sure to stop when you can still handle your losses if you find that trading is not a profession appropriate for you (And professional trading is not suitable for most of us, so it’s not any personal loss).

How much do I need to be a professional crypto trader?

This is very hard since it’s dependent on so many different parameters.

Some benchmarks could be (not connected)

1. Make sure to have savings on the sideline. You don’t want to start with pressure to accumulate profit over the months.

2. Make sure you don’t set the expectations too high. Services are giving 10-14% APY on stablecoins. You should aim higher since otherwise there is no reason to spend time, but don’t expect to continuously make something like 100% yearly.

 

What are the most common mistakes crypto traders make?

There are many different common mistakes from crypto traders. The most common are probably taking too much risk on a single trade to catch up for a temporary loss.

Other common mistakes are emotional trading and no strategy. and too large positions compared to the portfolio value.

Read more about the most common crypto trading mistakes.

What does it mean to have trading as profession?

Trading life as a profession comes with a lifestyle connected to continuous risk management, lifestyle, habits, and psychology. 

The post How to become a profitable crypto trader? appeared first on Cryptocointrade.

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Top 8 DeFi Yield Farming Platforms for 2022 (Review in Detailed) https://www.cryptocointrade.com/crypto-trading-blog/top-8-defi-yield-farming-platforms-for-2022/ Fri, 14 Oct 2022 12:48:25 +0000 https://www.cryptocointrade.com/?p=24049 Investors can produce passive revenue from inactive crypto tokens by farming in yield. In addition, the tokens are often delivered to its decentralized exchange to ensure that traders have enough liquidity. Those who lend the tokens can receive a portion like any trading commission charged mainly by the exchange. For security, yields, supported pairings, user-friendly, […]

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Investors can produce passive revenue from inactive crypto tokens by farming in yield. In addition, the tokens are often delivered to its decentralized exchange to ensure that traders have enough liquidity.

Those who lend the tokens can receive a portion like any trading commission charged mainly by the exchange. For security, yields, supported pairings, user-friendly, and other factors, we review and rank the 8 Defi yield farming crypto platforms in this evaluation guide.

List of the Top 8 Crypto Yield Farming Platforms

In this article, you will get a list of the top 8 currently available crypto platforms for yield farming:

Even if sure of the below-mentioned companies do not specifically focus on yield farming, they present some unique possibilities for those looking for passive income.

Investors may thus find the ideal interest-based product for their needs by reading our in-depth platform reviews.

Reviewing the Most Popular Crypto Defi yield farming Platforms

Investors must consider various aspects while choosing the most refined yield farming cryptocurrency platform.

Other crucial factors will include:

  • Current yields.
  • Supported currencies.
  • The regularity of reward transfers.
  • The platform’s security and reputation.

We rank and analyze each of the eight companies from its yield farming cryptocurrency list below.

1. OKX: Current Best Crypto Yield Farming Platform 

OKX is our best choice for the excellent Defi yield farming cryptocurrency platform. Despite being primarily recognized for its inexpensive spot trading platform, OKX provides a whole crypto environment. This hardly includes interest and staking accounts but also a full-fledged yield farming division.

OKX provides a selection of yield farming pairings, all of which comprise Ethereum, in collaboration with SushiSwap. This contains wrapped bitcoin, sushi, tether, dai, and USD coins. The average annual percentage yield (APY) on USDT/ETH and SUSHI/ETH, according to OKX, is 7.78% and 6.52%, accordingly. Results will fluctuate just like any yield farming platform, though.

Estimated yields for USDC/ETH and DAI/ETH are 4.31% and 4.81%, accordingly, while WBTC/ETH yields are only 0.55%. But most importantly, most yield farming pools run by OKX seem to be accessible on such a flexible schedule. Thus, there is currently no lock-up time as a result. Therefore, investors have the flexibility to take their tokens out of the yield farming pool whenever they choose.

Investors may want to consider using the staking option at OKX in contrast to yield Farming. The approach shouldn’t need investors to supply liquidity for something like a trading pair, and it does offer the possibility of creating passive income on dormant cryptocurrency tokens. Furthermore, every staking agreement needs one token.

In conclusion, OKX is a fantastic yield farming platform that would enable users to earn crypto in 2022.

Services for Yields: Interest accounts, yield staking, and Farming

Supported Coins: Multiple blockchains are supported, including SOL, ETH, and BTC.

Rates on Farming: With a yield of up to 6.52% APY

Pros

  • Overall most excellent cryptocurrency farming platform
  • supports interest accounts, staking, and yield farming
  • Comparable APIs
  • Farming pools with variable yields
  • Support for several blockchain networks
  • Access the top alternative currencies on 600+ markets
  • high standing in the crypto world

Cons

  • During yield farming, ETH-based currencies are accessible.

Cryptocurrency assets are very risky investment commodities. Your money is in danger.

2. Battle infinity: A Fantastic Decentralized Staking Alternate to Yield Farming

Staking is a fantastic substitute for Defi yield farming, as we said previously in a straightforward manner. In reality, opting to go with staking to earn different cryptocurrencies has several advantages. The finest cryptocurrency staking systems, first of all, and importantly, provide set APYs. As a result, investors are fully aware of their potential return on its staked tokens.

Compared to this, it is challenging to predict agricultural yield benefits since they depend on the compatibility and market valuation of the 2 digital currencies that make up the pair. Staking offers another advantage in that users only require to invest in one cryptocurrency. However, as said, yield farming demands that investors include an equal number of two separate staking coins in their deposits.

Battle Infinity is among the top possibilities to consider in the staking market. The play-to-earn and NFT ownership concepts are used in each multiplayer gaming hosted by the metaverse system built by this project. Users may acquire IBAT, the project’s native token, by participating in Battle Infinity games.

Staking IBAT is made simple by first purchasing Battle Infinity tokens via Lbank or PancakeSwap. Then, the IBAT tokens need to be transferred to a personal wallet so that they may be linked to the tools for Battle Infinity staking.

Yield Services: Fixed and adaptable staking

Supported Coins: IBAT

Rates on Farming: flexible staking is 12% APY, but fixed-term rates are higher.

Pros

  • One of the top cryptocurrency initial coin offerings of 2022
  • Earn passive money using a popular cryptocurrency.
  • IBAT investments with adjustable withdrawal conditions
  • Highest returns on fixed terms available
  • There is no need to register or give any personal data.

Cons

  • Only at this time supports IBAT staking.

Cryptocurrency assets are very risky investment commodities. Your money is in danger.

3. eToro: Earn Passive Income with Tron, Cardano, and Ethereum

ETFs, indices, Stocks, and commodities are also supported by the licensed cryptocurrency exchange and broker eToro. This company is regarded as a secure and reliable cryptocurrency trading platform only because it has CySEC, FCA, ASIC, and SEC licenses. Almost 27 million traders across the globe use eToro.

Although eToro cannot offer Defi yield farming, the trading platform enables users to stake their way to a passive income stream. Tron, Cardano, and Ethereum are the 3 proof-of-stake currencies currently supported. eToro is a fantastic choice as it does not ask investors to sign further into the staking feature and provides a licensed platform for earning income.

On the other hand, investors would start receiving staking rewards when the minimum holding time has elapsed. For instance, the creation of staking incentives after purchasing Tron on eToro will begin on its 9th day of holding. On eToro, there are still no lock-up periods for coin staking, and traders can payout at any time, seven days a week. 

Services of Yield: Adaptable Staking

Supported Coins: Tron, Cardano, and Ethereum

Rates on Farming: Up to 90% of eToro’s staking payouts are produced

Pros

  • Licensed cryptocurrency exchange with over 27 million users
  • Without having to opt-in, stake Tron, Cardano, and Ethereum
  • Purchase dozens of the top cryptocurrencies for as little as $10
  • No charges for deposits in USD
  • Trading Crypto Actively Using Copy Trading

Cons

  • There are now just 3 supported staking coins, but additional coins will be added.

Cryptocurrency assets are very risky investment commodities. Your money is in danger.

4. Crypto.com: High-Yield Income Accounts With Crypto Lending

Like OKX, Crypto.com is well-recognized for its cryptocurrency Defi yield farming exchange platform. Almost 250 marketplaces, including a large variety of top meme coins to buy, are accessible through this supplier. Additionally, Crypto.com provides transaction fees even lower than Binance, with its maximum rate being almost 0.075% per slide.

Investors may get passive revenue with Crypto.com in contrast to its exchange platform. Although it doesn’t include yield farming, Crypto.com provides interest accounts on various currencies. In addition, there are 3 lock-up choices for every single supported money. This offers flexible payouts together with 1 to 3-month durations.

The APY increases with term length. Additionally, Crypto.com interest account profits may be increased by staking Cronos to increase the returns available (CRO). Owners of this coin, a natural part of the Crypto.com system, will benefit from decreased trading commissions. The highest yield on stablecoins that Crypto.com offers is 8.5%.

Yield Services: Flexible, one-month, and three-month interest accounts

Supported Coins: Multiple crypto holdings and stablecoins

Rates on Farming: Crypto assets up to 14.5% and stablecoins at 8.5%

Pros

  • Start earning 14.5% on a few top crypto assets in the long run.
  • Stablecoin rates for high-yield farming cryptocurrencies
  • You can choose flexible, one month, or three months.
  • Weekly interest payments are made.
  • The cost for spot trading is merely 0.75%.

Cons

  • Investors must stake CRO to receive the greatest APY.

5. Coinbase.: A regulated broker with adaptable staking pools

The best cryptocurrency exchanges worldwide are Coinbase. This simple Defi yield farming platform supports almost over 100 crypto assets, most of which may be bought right away using a MasterCard or Visa. Having already said, Coinbase charges significant fees, including visa or MasterCard payments incurring a cost of approximately 4%.

Additionally, the Coinbase platform charges 1.49% per slide in fees for exchanging cryptocurrency assets. Although it does not provide yield farming services, Coinbase facilitates staking. Support for over 6 different currencies is provided, with Algorand providing the most significant yield (5.75%).

This and the following earning currencies supported are Tezos and Cosmos, with APYs of 4.635% and 5%, accordingly. Staking on Coinbase is accessible in more than 70 countries, and payout options vary. At Coinbase, a $1 minimum may be made through staking cryptocurrency.

Yield Services: Accounts with adjustable rates

Supported Coins: ATOM, ETH, ALGO, SOL, ADA, and XTZ

Rates on Farming: As Low as 5.75%

Pros

  • Best Platforms for newcomers
  • Strict regulation

Cons

  • There are other places where stake yields are higher.
  • Is not open about staking costs
  • High deposit fees and trading commissions

6. Uniswap: A decentralized exchange that offers ETH-based token returns.

A decentralized exchange based on the Ethereum blockchain, Uniswap. Trading using Uniswap eliminates the demand for a middleman. Users of Uniswap also don’t have to open an account, supply any personal details, or submit any KYC paperwork; all they have to do is link the wallet to any exchange.

Consequently, Uniswap becomes the best Defi yield farming bitcoin platform for someone looking to create passive income covertly. Uniswap specializes in Ethereum yield farming pairs. The most popular liquidity pools on Uniswap include DAI/USD, WBTC/ETH., and USDC/ETH. 

The yields will be significantly influenced by the liquidity pool chosen. Thus Uniswap cannot provide forecasted APYs. The fact that yield farming on Uniswap is decentralized, however, prevents the exchange from allowing access to the tokens. In contrast side, the Uniswap system is supported by smart contracts that Ethereum supports.

Yield Services: farming with ETH-backed tokens

Supported Coins: ERC-20 token

Rates on Farming: change according to the particular pair and the marketplace.

Pros

  • Decentralized exchange offering ETH-based yield farming services
  • No account needs to be created.

Cons

  • It does not give estimated APYs for farming yields
  • Unsuitable for beginners
  • Only accepts ETH tokens

7. PancakeSwap: the Most-Used BNB-Based Tokens for Yield Farming Platform

While PancakeSwap concentrates on Binance Smart Chain (BSc) currencies, Uniswap leads the decentralized Ethereum token trading industry. In actuality, PancakeSwap typically hosts the digital currencies with the fastest rates of market expansion; two examples include Battle Infinity and Lucky Block.

Identical to Uniswap, PancakewSwap offers a full-featured, decentralized crop-farming ecosystem. This provider is maybe the best Defi yield farming platform for high yields. For instance, it is anticipated that yield farming pools on CAKE/USDT or CAKE/BNB would provide an APY that is nearly 50%.

Even trustworthy combinations like BNB/BUSD offer up to 11.6% enticing deals. In addition, pancakeSwap users may access yield farming pools by linking MetaMask or Trust Wallet.

Yield Services: farming on BSc tokens

Supported Coins: Accepted Every BSc token

Rates on Farming: Currently available rates: 294% APR

Pros

  • The most excellent platform for cryptocurrency yield farming using BSc tokens
  • To produce passive income, there is no account registration required.

Cons

  • Farming pools with excessively erratic yields are typical.
  • It only works with BSc tokens.

8. Sushiswap: A Diverse Range of Defi Interest Tools Can Be Found at Top DEX 

The last website on a particular list of the most effective Defi yield farming bitcoin sites is SushiSwap. SushiSwap offers a complete environment of Defi services and is constructed on top of an Ethereum blockchain. The SushiSwap liquidity pools had cryptocurrencies worth almost over $1.4 billion at the time of this publication.

Nearly 16,000 transaction combinations are currently available on the SushiSwap exchange. It is essential because SushiSwap, like PancakeSwap and Uniswap, is a decentralized exchange because it still enables investors to begin earning money without initially setting up an account.

It will significantly differ regarding the yield farming analysis performed on the couple. Even though this combination has little liquidity, it may offer APYs in the six to seven-digit range.

Yield Services: Yield farming using tokens based on ETH

Supported Coins: Almost about 16,000 pairs

Rates on Farming: dependent upon the pair

Pros:

  • Significant returns on small-cap tokens for Farming
  • Almost 16,000 couples backed

Cons

  • Not appropriate for newcomers
  • Less liquidity than Uniswap

Conclusion

The top Defi yield farming cryptocurrency platforms currently available have been reviewed in this beginner’s guide.

We have also discussed the advantages and risks of yield farming, as well as any potential tax issues.

OKX could be a good choice for anyone interested in investing in yield farming right now. Compared to its yield farming services, OKX now provides staking, and interest account accounts with attractive APYs.

Author Bio: 

My name is Marnus Harris, and I am a writer. I have been writing for over five years, and my expertise lies in crypto, blockchain, DEFI Development, defi yield farming, and the Defi smart contract industry. I enjoy writing about developments in the crypto and blockchain industry.

The post Top 8 DeFi Yield Farming Platforms for 2022 (Review in Detailed) appeared first on Cryptocointrade.

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Metverse Coins listed to buy, exchange and trade on Binance https://www.cryptocointrade.com/trading-platforms/metverse-coins-listed-to-buy-exchange-and-trade-on-binance/ Wed, 05 Oct 2022 10:21:16 +0000 https://www.cryptocointrade.com/?p=23861 What metaverse coins are listed on Binance? How to buy, exchange, or trade the most popular metaverse cryptocurrencies? We answer all these questions and describe how we believe the metaverse will take form in the future.  The metaverse is still a new concept, and there is no clear definition, but we will help you define […]

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What metaverse coins are listed on Binance? How to buy, exchange, or trade the most popular metaverse cryptocurrencies?

We answer all these questions and describe how we believe the metaverse will take form in the future. 

The metaverse is still a new concept, and there is no clear definition, but we will help you define the metaverse’s future.

Metaverse Coins Listed on Binance

The most significant metaverse coins by marketcap are listed in the table below.

You find them all on the Binance exchange, some of which were launched on the Binance launchpad.

What is the Metaverse?

There is no accepted unique general definition of the metaverse as it is a term used for an
an integrated network of virtual worlds expected to exist in the future.

Some people would say it will be an immersive and interactive shared virtual space that combines the physical and digital worlds by combining VR(virtual reality) and AR(augmented reality technologies.

Metaverse accessibility

Metaverse should exist as a borderless world with no limits to how many people can use it simultaneously, what types of activities can take place, or what industries can enter it. The metaverse should be accessible to anyone anytime and not controlled by a centralized authority.

Metaverse decentralization

The metaverse shouldn’t be owned by a centralized entity like a company or corporation. Instead, the metaverse should be decentralized, owned, and governed by the community in the form of a DAO powered by Blockchain technology. All transactions within a metaverse would be public, quickly tracked, and secure by blockchain technology.

Virtual economies

Since the Metaverse will support most real-life activities, wealth transfers will be within an existing metaverse. In addition, people entering the Metaverse will have access to a decentralized virtual economy powered by cryptocurrencies.

Through these tokens, they can buy, sell and exchange digital assets like avatars, virtual clothing, NFTs, and even event tickets on marketplaces.

Immersive experience

Since a metaverse should be accessible to anyone, it must support availability for simple smartphones. However, a metaverse must also support advanced technology to enhance the experience with VR and AR technology.

User-focused

Since the community should own a metaverse, each participant in a metaverse community is responsible for creating value for each other with user-generated content. There shouldn’t be a Facebook optimizing the algorithms to prolong a user’s interaction with the platform because it increases the value for the shareholders. Instead, the

What can you do in the Metaverse?

We have now defined some criteria for the Metaverse infrastructure and how it should be owned and governed. Still, what you can do in a Metaverse is not evident to everyone.

Metaverse Gaming

The most obvious thing to do in Metaverse is gaming. Metaverse 1.0 already exists in gaming with games like Pokemon Go, Minecraft, and Counterstrike, where your avatar exists in the same virtual world as other avatars.

Go to virtual gigs

In a virtual world, you would be able to attend a concert, music festival, or any other entertainment show. In addition, it will be much easier to make interactive experiences where you can include or exclude the audience or change the atmosphere.

Go to social events

With the help of VR goggles and motion capture gloves, we might not even need 3D avatars soon.

Work

After the pandemic, working online is normal for many of us.

In addition, some tech giants are building virtual offices in the metaverse. 

Invest in real estate

You can buy land, buildings, and other properties like yachts in many metaverse gaming applications. Then, you can use your land to build, rent or resell.

How to enter the Metaverse?

NFTs

Non Fungible Tokens (NFTs) can be helpful in the metaverse to facilitate identity, community, and social experiences.

Metaverse Tokens

There must be some money in the metaverse to purchase in-world products and services.

Binance Launchpad Metaverse

Binance Launchpad is a great way to invest in new promising metaverse projects. 

Step-by-step guide on how to invest with Binance Launchpad.

  1. Signup with Binance
  2. Login in and go to “Earn,” and after clicking “Launchpad”
  3. Here, you find all the available and upcoming projects
  4. Unfortunately, the frequency is not very high for Binance Launchpad to market new projects.

How does crypto fit into the metaverse?

Gaming will probably be the entrance to the metaverse with the aspect of a 3D virtual reality. However, gaming can’t cover all aspects of life when we are about to spend more time of all ages and our lives in the metaverse.

Crypto will be able to offer other aspects that are required, such as digital proof of ownership, transfer of value, governance, and accessibility.

How can crypto offer these aspects?

Digital proof of ownership

In the digital world, instantly proving an asset’s ownership will be necessary. This can be done on the blockchain.

A crypto wallet is one of the most secure and robust methods for establishing a digital identity and proof of ownership it’s still transparent so all parties can either agree or disagree on the ownership status.

Digital collectibility

The blockchain also let us show that an item is original and unique. For a metaverse looking to incorporate more real-life activities, this is important.

This is important for all kinds of art and music since copying a digital item is straightforward. Also, it can be crucial in other means such as tickets, memberships, education, and more.

Transfer of value

Like in the real world, a metaverse will need a way to transfer value securely, transparently, and with a high throughput speed.

When users spend a significant amount of time in the metaverse earning, spending, and exchanging money and value there, they will need a reliable way to do this.

Governance

If metaverse will play such an important role to many people around the world, it will be important that no single company or entity control the rules. Therefore, the interactions with the metaverse should be governed by laws and rules dictated in any form of democracy.

It can be done with voting rights to elect leaders and governments. However, it can also be managed as a decentralized autonomous organization with no clear leaders and governments. Some cryptocurrencies are already addressed in form av DAOs.

Accessibility

In an ideal world, the metaverse should be accessible and open to anyone. Therefore, there is a possibility to create a wallet on public blockchains for anyone with access to the internet since it’s free.  

This makes it probably the most accessible way to manage finances online.

Interoperability

The metaverse will need to be able to connect to multiple projects and blockchains. In addition, blockchains need to be able to talk to other parts of the world and not just communicate between blockchains.

Today, these functionalities are limited even though Polkadot and Cosmos are working with blockchain interoperability and Chainlink with oracles to connect blockchain to other parts of the world.

Is there just one metaverse?

As it is used today, the metaverse concept assumes that there is one common and shared metaverse.

However, as partly discussed above, several metaverses might be separate from each other, but they might be connected and interoperable in some way.

Still, it comes down to the definition of the metaverse, and as we stated early in this article, there is no clear definition yet.

Binance Earn - Interest on Metaverse Coins

With Binance Earn you can earn interest on your metaverse coins while you HODL them. This is good if you intend to buy metaverse tokens in speculation and want to earn passive income why you HODL.

However, if you buy metaverse tokens to support the community and be a part of that specific metaverse, you should rather use them in the virtual world to by land, access concerts or other useful stuff.

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Binance Dual Investment Review – Calculator Example https://www.cryptocointrade.com/trading-platforms/binance-dual-investment-review-calculator-example/ Mon, 26 Sep 2022 08:35:18 +0000 https://www.cryptocointrade.com/?p=23803 We review Binance dual investment with a calculation example.  What is Binance dual investment and how can you earn yields over 100% APR? In addition, you can earn in both a bear market and a bull market since you can both agree to buy crypto or sell crypto in the near-term future. However, usually, dual […]

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We review Binance dual investment with a calculation example. 

What is Binance dual investment and how can you earn yields over 100% APR?

In addition, you can earn in both a bear market and a bull market since you can both agree to buy crypto or sell crypto in the near-term future. However, usually, dual investment is most profitable during flat market conditions.

We explain everything to you in this article.

What is Binance dual investment?

Binance Dual Investment is a high-interest yield product.

Here, you can agree to buy or sell cryptocurrency at your desired price and date in the future while earning a high-interest yield no matter which direction the market goes.

If you hold stablecoins, you can agree to buy a cryptocurrency at a certain price (lower than the current market price) at a certain settlement date in the future. If the cryptocurrency price is at, or below the agreed price on the settlement date, you will get the agreed cryptocurrency + the interest rate on your account. If the cryptocurrency price is above the agreed price, you hold your stablecoins and the interest rate. 

If you hold cryptocurrencies, you agree to sell your cryptocurrencies to a certain price (higher than the market price) at a certain settlement date in the future. If the cryptocurrency price is at, or above the agree price, you will receive stablecoins + the earned interest on your account. If the cryptocurrency price is below the agreed price, you hold your crypto + the earned interest rate.

When should I use Binance dual investment?

If you believe the markets will be flat for a while it´s hard to invest since you will not earn by going go long or going short on Binance.

However, the dual investment on Binance is perfect if the market is not moving since you will hold your coins but earn a very high-interest rate on them outperforming any other APY you can find on the market.

Binance Dual Investment Risks

As for any investment product, certain risks are associated with Binance dual investment contracts.

Binance dual investment contracts are similar to short-term crypto options with a settlement date in the near future (days to weeks).

  • If you hold stablecoins and agree to buy cryptocurrency at a certain price on a specific date in the future, the risk is that the cryptocurrency is worth less than the settlement price on the settlement date.
  • If you hold cryptocurrency and agree to sell at a specific time at a certain price in the future, the risk is that the cryptocurrency is worth more than the agreed price on the settlement date.

Still, you will get the agreed interest rate paid in any scenario.

Binance Dual Investment Yield

How can Binance dual investment pay such high yields in interest return APR?

Binance dual investment is a crypto-up option trading agreement between you and a counterparty.

You give the counterparty the right to buy or sell crypto at a specific time in the future.

The counterpart is prepared to pay you a premie to sign this deal. Therefore, if you think the premie covers the risk, the agreement is preferable.

Binance Dual Investment Step-by-step

Here is our step-by-step guide for Binance dual investment.

  • Sign up with Binance
  • Login to Binance and go to Binance Earn
  • Chose Dual Investment
  • Choose an asset (see screenshot below in beginner mode). We selected Bitcoin BTC
  • Decide to Sell High or Buy Low. We decided to sell BTC
  • Enter target price and settlement date by clicking the pen symbol. We want to sell Bitcoin BTC if the price is at or higher than 19.500 the 2022/09/30
Binance dual investmet beginner mode step-by-step
  • Enter Subscription Amount (see the screenshot below)
Binance dual investmet beginner mode step-by-step subscrition amount
  • Check the possible scenarios click that you have understood the possible outcomes. See outcome scenarios 1 and 2 in the screenshots below.
Binance dual investmet scenario 1 outcome
Binance dual investmet scenario 2 outcome
  • Confirm and Subscribe

Binance Dual Investment Beginner Mode

There is a beginner mode for Binance dual investment. If you use the product for the first time, you might want to opt-in to use the beginner mode. The beginner bode guides you through the investment process with a step-by-step guide.

Auto-compound Binance Dual Investment

Binance dual investment auto-compound means that you automatically can re-subscribe to a new position on the settlement day. Auto-compound is not available in the beginner mode.

  • Ethereum ETH settles every Tuesday and Friday.
  • All other assets settle every Friday.

Basic Plan auto-compound – Set a new target price and compound until the target is reached

Advanced plan auto-compound – Here, you can continue to auto-compound in the same direction if Target Price is not reached.

IN addition, you can Auto-Compound in a different direction if Target Price is reached.

Binance Dual Investment Strategies

There are different strategies to approach the Binance dual investment product.

First, you need to decide if your strategy is to acquire as many crypto coins as possible or as many stabelcoins as possible.

If you hold stablecoins and your strategy is to acquire more stablecoins, the Binance dual investment product is perfect in a neutral and bull market. 

If you hold cryptocurrencies and want to acquire more cryptocoins over time, the Binance dual investment product is perfect in a neutral and a bear market.

Read more about the top 6 dual investment strategies from the Binance academy.

Binance Dual Investment VS Crypto Option Trading

Binance dual investment is a simple version of crypto options trading.

Also, the settlement date is shorter than average crypto options trading, where you can find options with a settlement date of 9 months in the future.

Summary: Binance dual investment is a simple form of crypto options trading with short time frames. Crypto technical analysis might be applicable for such investments. Also, crypto hedge trading can be an alternative.

Binance Dual Investment Video Tutorial from Binance

Binance Dual Investment Pros and Cons

Pros

  • You can earn high-interest rates. Especially if the market is not moving in any direction
  • Beginner mode is straightforward to use
  • Only available in certain jurisdictions, and this is not transparent
  • There is a quiz before you are allowed to enter this product

Cons

  • There are risks involved that can be hard to evaluate for a beginner
  • It’s complicated to calculate long-term losses or gains since it can be profitable in both directions

The post Binance Dual Investment Review – Calculator Example appeared first on Cryptocointrade.

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How to Short on Bybit? https://www.cryptocointrade.com/trading-platforms/how-to-short-on-bybit/ Fri, 23 Sep 2022 07:05:13 +0000 https://www.cryptocointrade.com/?p=23766 There are many ways to short crypto, and here we explain how to short on Bybit. Bybit is one of the top Bitcoin and altcoin derivative exchanges. Short selling is an appreciated trading product by many traders since you can win in a bear market and hedge your positions in a bull market. Still, risks […]

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There are many ways to short crypto, and here we explain how to short on Bybit. Bybit is one of the top Bitcoin and altcoin derivative exchanges.

Short selling is an appreciated trading product by many traders since you can win in a bear market and hedge your positions in a bull market.

Still, risks are involved in shorting a market, especially volatile markets with a long-term large potential upside, like cryptocurrencies. At the same time, due to the volatile nature of cryptocurrencies, this kind of market should attract professional short sellers to find great opportunities when crypto is overbought.

Best Crypto Trading Platforms for Shorting Bitcoin

*Shorting is possible through leverage trading instruments like margin trading, futures trading, perpetuals contracts, and leveraged tokens. Read more about the best crypto leverage trading platforms.

What is Short Selling a Crypto?

Short selling crypto occurs when an investor borrows a cryptocurrency and sells it on the open market, planning to buy it back later for less money and give it back to the lender and at the same time make a profit.

One of the most famous short-selling stories is when Michael Burry shorted the American house market.

Long VS Short

Having a “long” cryptocurrency position in means that you own the cryptocurrency and probably believe it will increase in value over the long term.

The opposite of a “long” position is a “short” position. A “short” position is generally a sale of a cryptocurrency you don’t own since you believe in a bear market to make profit.

How to Short Bitcoin on ByBit?

Apart from Binance, you can also short Bitcoin on ByBit as well. The platform is crypto-to-crypto trade only but has many advantages of its own. Here are steps you should take to start shorting Bitcoin on ByBit.

Step 1: Register an account on ByBit. It is pretty easy and lasts about 5 minutes. It requires an email address and password. Be sure to implement 2FA with Google authentication.

Step 2Analyze the different shorting options on ByBit. In the screenshot from the ByBit trading screen, you can see what trading instruments are available for trading on ByBit.

  • Inverse Perpetual
  • USDT Perpetual
  • Inverse Futures

ByBit offers two different derivative contracts, futures and perpetuals

futures contract is a derivative trading product. It’s an agreement to buy or sell the cryptocurrency at a predetermined price at a specified time. 

perpetual contract (Perpetual swaps) is a derivative product similar to a future contract. However, there are a few differences you must be aware of

1. Perpetual contracts are open-ended (There is no expiry as it is with Futures)

2. Perpetual contracts mimic a margin-based spot market and are traded close to the underlying reference. (Futures may trade at a significantly different price)

Step 3: Create a Short Order. Once you decide if you short Bitcoin with perpetual or futures, you can open up an order. At ByBit, the order input field is located on the right-hand side, as indicated in the screenshot below.

Here, you can make many different selections.

  1. Isolated or Cross margin
  2. Leverage level
  3. Market order, limit order, or conditional order
  4. Order price and quantity
  5. Take profit or Stop Loss (TP/SL)
Read more about these fields in our Bybit review.

What is a crypto short squeeze?

A short crypto squeeze is triggered when a cryptocurrency increases in price at a rapid pace. This will trigger a lot of margin calls and in the worst case liquidations.

If liquidations occur, this will trigger a further price increase and even more short-selling liquidations.

This is also a way for large institutions to make market manipulations. If you have money under management and discover a large short position in a market you can go and buy stocks in the open market to increase the price and force a short squeeze.

One of the most famous short squeezes was when the Reddit Wallstreetbets community found that the Gamestop stock was shorted by large institutions. The community agreed to short squeeze these institutions by buying large amounts of the stock.

All-in-all, they were successful with regards to the short squeeze. However, many small traders lost large amounts of their capital when the stock was called back in price since no one could withhold the high Gamestop price.

What is a Margin Call in Shorting?

A short sale requires a margin because the practice involves selling a cryptocurrency that is borrowed and not owned.

A margin is a form of collateral that has to be in the short seller’s account as a security to make sure that the trader has funds enough to cover the borrowed cryptocurrencies sold in the market.

The initial margin is the amount of margin required at the time the trade is initiated.

The maintenance margin is the margin requirement during the life of the short sale.

If the value of the short position falls below maintenance margin requirements, the short seller will face a margin call and be asked to close the position or increase/deposit funds into the margin account.

How can a short position be liquidated?

Yes, definitely. A short position requires an initial margin and maintenance margin. If the maintenance margin is not met, there will be forced liquidation. 

Short Selling Pros and Cons

Pros

  • Traders can win in a bear market
  • There are leveraged short selling products

Cons

  • The downside is unlimited since a crypto increase in price indefinitely. Still, your position will be liquidated so it’s actually a limited downside in each trade.

The post How to Short on Bybit? appeared first on Cryptocointrade.

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