Trading is a fundamental economic concept that involves buying and selling assets. These can be goods and services, where the buyer pays the compensation to the seller. In other cases, the transaction can involve the exchange of goods and services between the trading parties.
In the context of the financial markets, the assets being traded are called financial instruments. These can be stocks, bonds, currency pairs on the Forex market, options, futures, margin products, cryptocurrency, and many others.
If these terms are new to you, don’t worry – i will explain them all later in this article.
The term trading is commonly used to refer to short-term trading, where traders actively enter and exit positions over relatively short time frames. However, this is a slightly misleading assumption.
In fact, trading may refer to a wide range of different strategies, such as day trading, swing trading, trend trading, and many others. But don’t worry. I will go through each of them in more detail later.
What is investing?
Investing is allocating resources (such as capital) with the expectation of generating a profit. This can include using money to fund and kickstart a business or buying land with the goal of reselling it later at a higher price.
In the financial markets, this typically involves investing in financial instruments with the hopes of selling them later at a higher price.
The expectation of a return is core to the concept of investment (this is also known as ROI). As opposed to trading, investing typically takes a longer-term approach to wealth accrual.
The goal of an investor is to build wealth over a long period of time (years, or even decades). There are plenty of ways to do that, but investors will typically use fundamental factors to find potentially good investment opportunities.
Due to the long-term nature of their approach, investors usually don’t concern themselves with short-term price fluctuations. As such, they will typically stay relatively passive, without worrying too much about short-term losses.
Trading vs. investing – what’s the difference?
Both traders and investors seek to generate profits in the financial markets. Their methods to achieve this goal, however, are quite different.
Generally, investors seek to generate a return over a longer period of time – think years or even decades. Since investors have a larger time horizon, their targeted returns for each investment tend to be larger as well.
Traders, on the other hand, try to take advantage of the market volatility. They enter and exit positions more frequently, and may seek smaller returns with each trade (since they’re often entering multiple trades).
Which one is better? Which one is more suitable for you? That’s for you to decide. You can start educating yourself about the markets, and then learn by doing. Over time, you’ll be able to determine which one suits better your financial goals, personality, and trading profile.
What is fundamental analysis (FA)?
Fundamental analysis is a method for assessing a financial asset’s valuation. A fundamental analyst studies both economic and financial factors to determine if the value of an asset is fair. These can include macroeconomic circumstances like the state of the wider economy, industry conditions, or the business connected to the asset (if there’s one). And these are often tracked through macroeconomics leading and lagging indicators.
Once the fundamental analysis is complete, analysts aim to determine whether the asset is undervalued or overvalued. Investors can use this conclusion when making their investment decisions.
In the case of cryptocurrencies, fundamental analysis may also include an emerging field of data science that concerns itself with public blockchain data called on-chain metrics.
These metrics can include the network hash rate, the top holders, the number of addresses, analysis of transactions, and many more. Using the abundance of available data on public blockchains, analysts can create complex technical indicators that measure certain aspects of the overall health of the network.
While fundamental analysis is widely used in the stock market or Forex, it’s less suitable for cryptocurrencies in their current state.
This asset class is so new that there simply isn’t a standardized, comprehensive framework for determining market valuations. What’s more, much of the market is driven by speculation and narratives.
As such, fundamental factors will typically have negligible effects on the price of a cryptocurrency. However, more accurate ways to think about cryptoasset valuation may be developed once the market matures.
Fundamental Analysis:
Fundamental Analysis In Urdu/Hindi:
What is technical analysis (TA)?
Technical analysts work with a different approach. The core idea behind technical analysis is that historical price action may indicate how the market is likely to behave in the future.
Technical analysts don’t try to find out the intrinsic value of an asset. Instead, they look at the historical trading activity and try to identify opportunities based on that.
This can include analysis of price action and volume, chart patterns, the use of technical indicators, and many other charting tools.
The goal of this analysis is to evaluate a given market’s strength or weakness.
With that said, technical analysis isn’t only a tool for predicting the probabilities of future price movements. It can also be a useful framework for risk management.
Since technical analysis provides a model for analyzing market structure, it makes managing trades more defined and measurable. In this context, measuring risk is the first step to managing it.
This is why some technical analysts may not be considered strictly traders. They may use technical analysis purely as a framework for risk management.
The practice of technical analysis can be applied to any financial market, and it’s widely used among cryptocurrency traders. But does technical analysis work? Well, as I have mentioned earlier, the valuation of the cryptocurrency markets is largely driven by speculation.
This makes them an ideal playing field for technical analysts, as they can thrive by only considering technical factors.
In Urdu/Hindi
Fundamental analysis vs. technical analysis – which is better?
That entirely depends on your trading strategy. Actually, why not use both? Most market analysis methods work best when they’re combined with other methods or indicators.
This way, there’s a bigger chance of finding more reliable investment opportunities. Combining different trading strategies can also help eliminate biases from your decision-making process.
This concept is sometimes referred to as confluence. Confluence traders combine multiple strategies into one that harnesses benefits from all of them.
The idea is that the trading opportunities presented by the combined strategies may be stronger than the ones provided by only one strategy.
If you’re reading this, it’s likely that you’ve heard of the fortunes won and lost in the crypto space.
Maybe you’ve seen the lambos and the insane amounts of money that people earned back in the beginning of 2018, and you want to get in on the action.
If you want to start buying cryptocurrencies and learn how to trade and invest into them successfully, this is the post for you.
I present to you, the ultimate beginner’s guide to bitcoin and cryptocurrency, crypto trading with help of images and videos.
What is Cryptocurrency?
In Simple, cryptocurrencies are peer-to-peer digital money. That means that they don’t require any central authority like a bank. In essence, this means that you are your own bank when you own your own cryptocurrencies. This means that you can send your money to whoever you want, whenever you want, no matter where they are in the world. You can do it within minutes with minimal fees.
What is Cryptocurrency?
What is Cryptocurrency More Broad explanation?
What Is Bitcoin?
Bitcoin is a digital currency created in January 2009. It follows the ideas set out in a whitepaper by the mysterious and pseudonymous Satoshi Nakamoto.
Bitcoin is a type of cryptocurrency. There is no physical bitcoin, only balances kept on a public ledger that everyone has transparent access to. All bitcoin transactions are verified by a massive amount of computing power.
Bitcoin is not issued or backed by any banks or governments, nor is an individual bitcoin valuable as a commodity. Despite it not being legal tender in most parts of the world, bitcoin is very popular and has triggered the launch of hundreds of other cryptocurrencies, collectively referred to as altcoins. Bitcoin is commonly abbreviated as “BTC.”
Launched in 2009, bitcoin is the world’s largest cryptocurrency by market capitalization.
Unlike fiat currency, bitcoin is created, distributed, traded, and stored with the use of a decentralized ledger system, known as a blockchain.
What Is Ethereum?
Ethereum is a blockchain platform with its own cryptocurrency, called Ether (ETH) or Ethereum, and its own programming language, called Solidity.
As a blockchain network, Ethereum is a decentralized public ledger for verifying and recording transactions. The network’s users can create, publish, monetize, and use applications on the platform, and use its Ether cryptocurrency as payment. Insiders call the decentralized applications on the network “dapps.”
As a cryptocurrency, Ethereum is second in market value only to Bitcoin.
Ethereum is an open-source blockchain-based platform used to create and share business, financial services, and entertainment applications.
Ethereum users pay fees to use dapps. The fees are called “gas” because they vary depending on the amount of computational power required.
Ethereum has its own associated cryptocurrency, Ether or ETH.
What Are Altcoins?
Altcoins are cryptocurrencies other than Bitcoin. They share characteristics with Bitcoin but are also different from them in other ways. For example, some altcoins use a different consensus mechanism to produce blocks or validate transactions. Or, they distinguish themselves from Bitcoin by providing new or additional capabilities, such as smart contracts or low-price volatility.
The term “altcoins” refers to all cryptocurrencies other than Bitcoin.
As of March 2021, altcoins accounted for 40% of the total cryptocurrency market, with more than 9,000 cryptocurrencies and counting.
Some of the main types of altcoins include mining-based cryptocurrencies, stablecoins, security tokens, and utility tokens.
Altcoins might include only mining-based cryptocurrencies other than Bitcoin in the future as usage continues to develop with technology.
Ethereum and Binance Coin were the largest altcoins by market capitalization
Online payment company PayPal is to allow users in the UK to buy, hold and sell cryptocurrencies using its platform.
PayPal today announced the launch of a new service enabling its customers in the UK to buy, hold and sell cryptocurrency with PayPal. This new service starts rolling out this week.
Customers can choose from four crypto Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
By accessing their PayPal account via the website or the mobile app, they can view real-time crypto prices, access educational content to help answer commonly asked questions, and learn more about cryptocurrencies, including the opportunities and risks.
This announcement marks the first international expansion of the company’s cryptocurrency offering outside of the United States. With a trusted brand like PayPal now making an entry, access, knowledge, and the exploration of cryptocurrency has the potential to become mainstream in the UK.
Vice President and General Manager, Blockchain, Crypto and Digital Currencies at PayPal, Jose Fernandez da Ponte said:
“The pandemic has accelerated digital change and innovation across all aspects of our lives— including the digitisation of money and greater consumer adoption of digital financial services.
Our global reach, digital payments expertise provides us the unique opportunity, and the responsibility, to help people in the UK to explore cryptocurrency. We are committed to continue working closely with regulators in the UK, to offer our support and meaningfully contribute to shaping the role digital currencies will play in the future of global finance and commerce.”
Buy, hold and sell cryptocurrency with PayPal
The introduction of this service offers customers a new way to explore cryptocurrency in the PayPal. Customers can start by buying as little as £1 of cryptocurrency through PayPal. To purchase cryptocurrency, eligible customers can log into their PayPal account via the website or their mobile app, navigate to the new crypto tab to view the four cryptocurrencies available and view current pricing and trends.
Create greater understanding and enable access
As part of this offering, PayPal provides account holders with educational content to help them understand the cryptocurrency ecosystem, the volatility, risks, and opportunities related to purchasing crypto.
In the UK, PayPal’s new crypto offering which covers buying, holding and selling cryptocurrency will start to roll out this week and will be available within the next few weeks for all eligible customers directly in their PayPal account via the website and their mobile app.
Bitcoin hits $50,000, reaching more than a 3-month high, while Cardano is busy making new All-Time-highs, as the cryptocurrency continues to recover.
Bitcoin hit an all-time high of over $64,000 in April, but then fell heavily in June and July, even dipping below $30,000.
After dipping below $30K, Bitcoin has been growing steadily since mid-July.
The world’s largest cryptocurrency by market cap just surpassed $50,000. According to CoinGecko, it is up 2.9% in the last 24 hours, 5.8% in the last week, and 57% in the last month.
Bitcoin last saw $50,000 in mid-May, right after Tesla CEO Elon Musk announced that his company would no longer accept Bitcoin as payment for its electronic cars due to environmental concerns. This news, along with the China crack down on crypto trading and mining, led to massive Bitcoin losses.
While Bitcoin relatively fast recovery to the $50,000 level is impressive, Cardano (ADA) is in the spotlight right now.
Cardano has just hit another all-time high of $2.84.
Cardano is set to launch smart contracts on September 12, which is believed to be the main reason for this bullish rally.
Kazakhstan bitcoin mining has dramatically surged into third place on the global market as the country’s share reached 8.2 percent of Global BTC mining, reported by Cambridge Centre for Alternative Finance.
The recent sixfold increase in mining operations of Kazakhstan is the result of China crack down on crypto trading and mining industry.
Recently, the Astana International Financial Center (AIFC) announced its pilot project on opening cryptocurrency bank accounts in the country. With this law Kazakhstan citizens will soon be able to buy bitcoins, convert their income into cash, and sell crypto on exchange markets.
On June 25, Kazakhstani President Kassym-Zhomart Tokaev signed legislation officially legalizing crypto-mining in Kazakhstan. As part of this law, Kazakhstan introduced a new tax, stipulating a fee of one tenge per 1 kilowatt-hour (kW/h) for miners, starting on January 1, 2022.
This legislative decision could be interpreted not as a barrier for the migration of new miners to Kazakhstan but as a necessary measure taking into account the processes of tightening control over miners.
The Kazakhstani government intends to support crypto-currency mining operations by introducing the lowest taxation rate among major crypto-currency mining countries.
This has already produced a surge of activity. As of August, Kazakhstan hosted 25 crypto farms, many of them recent migrants from China.
In the wake of the Chinese government’s crackdown, the Shenzhen-based BIT Mining Ltd., a crypto-currency mining company that provides cloud mining equipment rental services, announced the suspension of its operations in China and later stated that it had transferred 320 machines with a Bitcoin net hashrate performance of 18.2 PH/s, from China to Kazakhstan. It additionally plans to shift another 2,600 pieces of equipment in the near future. The move to date cost $9 million, but the company is so certain of its future in Kazakhstan that it has raised $50 million for future operations there from investors through a private placement.
Another Chinese company has also begun to increase its digital footprint in Kazakhstan. Canaan, one of the world’s largest manufacturers of ASIC bitcoin mining computer equipment, after opening its first overseas after-sales service center in the country, announced that it was delivering on its 2021 strategic plans by driving its crypto-mining business in Kazakhstan. The firm stated it is delivering and operating the latest Avalon Miner units in Kazakhstan and is ready to service associated crypto-mining equipment there.
At a cost of approximately $0.03–0.04 per kW/h (depending on the tenge-dollar exchange rate), electricity tariffs in Kazakhstan are among the cheapest in the world. Kazakhstan’s largest crypto-mining rivals charge $0.06 per kW/h (Russia), $0.08 per kW/h (China) or as much as $0.09–0.12 per kW/h (USA).
An important aspect of the increased bitcoin mining in Kazakhstan is that the growing crypto mining industry relies primarily on fossil fuels, which might present future difficulties considering the country’s dedication to expanding its renewable energy sources and pivoting towards a greener economy by 2030.
Dogecoin has a new foundation behind it and this current foundation has Vitalik Buterin as Board Advisor along with and Elon Musk representative, Jared Birchall.
Image source: Dogecoin Foundation
The recent development was announced by Dogecoin foundation.
Dogecoin Board members includes three prominent Dogecoin community members, Jens Whichers, Gary Lachans and Timothy Stebbing along with two core developers Michie Lumin, and Ross Nicholl.
Image source: Dogecoin Foundation
The Dogecoin Foundation writes:
“The Dogecoin Foundation is not here to ‘take control’ of the Dogecoin Core Wallet project. We are here to accelerate the development effort by supporting current Dogecoin Core and future Dogecoin Developers to work on a full-time basis through sponsorship, as well as providing a welcome landing for new contributors hoping to help with the project.
The Dogecoin Foundation is also looking to the future of the broader Dogecoin ecosystem, and in coming weeks, will be announcing new projects that will compliment the current Core Wallet to enable faster integration and easier APIs for Financial, Social and Charitable projects wishing to use Dogecoin.”
Elon Musk support for the Dogecoin is reflected in the presence of a Musk representative in Doge foundation advisory board.
Musk had previously criticized ETH and Bitcoin, saying that their transactions were slow and expensive.Musk speculated that Doge could be a better option for faster transactions and lower fees.
After signing a unique partnership with Anycoin Direct, the Dutch football club PSV Eindhoven has becomes the first European Football club to have its entire sponsorship paid in Bitcoin.
PSV announced this partnership in their official blog.
This partnership will last for two seasons and is first of its kind to promote crypto in Europe.
PSV will be receiving 400,000 euros per season as a result of this partnership.
Commercial Director PSV, Frans Janssen said:
“The possibilities and the future that the world of cryptocurrency offers is very promising. As a club in the heart of the Brainport region, we are always innovating, cryptocurrency fits well into this picture.”
Lennert Vlemmings, COO at Anycoin said:
“We are very excited to be working with PSV. The payment in Bitcoin marks the next step for the adoption of cryptocurrency in the EU.”
PSV made their first entry in crypto world in April 2021, when they sold their 1988 European Cup Final victory as NFT.
Four months after applying for a Bitcoin exchange-traded fund (ETF) backed by the actual underlying asset, Galaxy Digital is making another attempt, this time, with an investment vehicle tied to Bitcoin futures.
According to the U.S. Securities and Exchange Commission (SEC) filing on Tuesday, the Galaxy Bitcoin Strategy ETF hopes to register under the Investment Company Act of 1940.
The new fund doesn’t invest directly in Bitcoin, seeking instead to provide capital appreciation primarily through the active management of Bitcoin futures contracts.
The Hacker was able to steal $611 millions of funds.After being approached by the Poly Network with a request of giving back the funds, and also threatening him with legal actions. The hacker said that he is white hat hacker and has no intentions of using the stolen assets. He later returned most of the funds.
Recently PolyNetwork offered the hacker a reward of half a million dollars. Now, they are offering him the position of chief network security adviser, and assuring him that they will not pursue any legal action against him.
In a tweet, Poly Network stated that it would transfer the $500,000 whenever he wants.
Poly Network Writes:
“PolyNetwork has no intention of holding Mr white hat legally responsible and cordially invites him to be our Chief Security Advisor. $500,000 bounty is on the way. Whatever Mr white hat chooses to do with the bounty in the end, we have no objections.”
#PolyNetwork has no intention of holding #mrwhitehat legally responsible and cordially invites him to be our Chief Security Advisor. $500,000 bounty is on the way. Whatever #mrwhitehat chooses to do with the bounty in the end, we have no objections. https://t.co/4IaZvyWRGz
“Mr. White Hat shared his concerns about Poly Network’s security and overall development strategy in a recent public dialogue. The Poly team is actively working with organizations that are equipped to provide security solutions, with the aim of presenting the public with a robust and secure system that is fully prepared for Poly Network’s recovery and revamp.”
we sincerely hope Mr. White Hat can understand our appeal and continue to actively cooperate with us.”
The network hopes that the White Hat will soon return private keys of the wallets, so that funds can be returned to investors.
Spain National Securities Market Commission (CNMV) has warned 12 companies, including Huobi and ByBit, about their trading and investment activities in Spain without the required licenses.
The CNMV said in a statement that these institutions are not registered with the Commission and therefore not authorized to provide investment services or other trading activities without CNMV supervision.
The warning says that crypto exchanges Huobi and ByBit provide investment services without the required license, the warning also targets 10 more firms with similar activities.
