Boxmining

Category: Cryptocurrency Trading

Trading is a fundamental aspect of the cryptocurrency space. As exciting as crypto trading is, it is also highly risky and complex. This section gives an introductory guide to the various aspects of cryptocurrency trading.

  • How to snipe Solana ($SOL) memecoins early

    How to snipe Solana ($SOL) memecoins early


    Solana ($SOL) meme coins have gained significant popularity amongst cryptocurrency traders due to their playful and often humorous nature. Most importantly, there have been some cases where if you are early into buying a Solana memecoin, you could stand to make huge gains. This is because you have entered the market and bought up some of the coins before others enter, saturate the market and increase the price of the memecoin. Therefore, one of the main objectives in playing with Solana memecoins is that you need to be early. Here’s our guide on how to snipe Solana ($SOL) memecoins early.

    Check out our video guide!

    How To SNIPE Solana Memecoins BEFORE They Explode & AVOID RUGS

    What is a Solana ($SOL) memecoin?

    Solana meme coins are fun and humourous cryptocurrencies on the Solana blockchain. They often lack serious utility but thrive on community engagement and social media buzz. These meme coins are also usually inspired by internet memes, jokes or cultural references.

    Solana meme coins are popular because they attract passionate communities. Their appeal lies in the fun and lighthearted nature of memes, which encourages active participation. The coins also gain traction through platforms like Twitter, Discord, and Reddit. Memes, jokes, and creative content drive interest and engagement. The fact that the Solana blockchain has high-speed and low-cost transactions, also makes Solana an attractive platform for meme coins. This is because users can trade and participate without hefty costs.

    Learn more about Solana ($SOL) HERE

    Here are some of the most popular Solana meme coins on the market right now:

    1. Dogwifhat ($WIF)
    2. Bonk ($BONK)
    3. Book of meme ($BOME)
    4. BananaCat ($BCAT)
    5. Myro ($MYRO)

    You can see a full list of Solana meme coins and their details on Coingecko HERE

    Coingecko Solana meme coin list

    How to snipe Solana ($SOL) memecoins early

    Here’s a guide on how to snipe Solana ($SOL) memecoins early

    1. Understand your risk tolerance.

      Meme coins are based on short-term jokes or cultural references. As mentioned previously, they generally do not have an actual utility and are mostly just for fun. However, you will be using real funds when trading these memecoins, so it is very risky. Therefore, you should understand your risk tolerace. For example, if you have very little funds, you may want to reconsidering putting all your funds into one memecoin.

    2. Set up alerts

      Set up alerts on platforms like CoinMarketCap, CoinGecko, or any other tracker that offers new token listings. By doing this, you will be among the first to know when a new meme coin is listed, giving you a head start.

    3. Get Solana ($SOL) tokens

      You will need Solana ($SOL) to swap for Solana memecoins. You can obtain Solana ($SOL) tokens on most major exchanges such as Bybit, BingX or Binance.

      Sign up for Bybit here!

    4. Research the memecoin community

      Before buying a memecoin, you should research the project and its community. Look for projects backed or created by credible names or those with active and positive community feedback. See if the memecoin is constantly posting and marketing themselves. You can research the memecoin by typing the coin ticker symbol or token address on Twitter. Look for strong, active engagement on social media platforms such as Twitter, Discord, and Telegram. Teams that are communicative and communities that are passionate often indicate a promising project.

    5. Look at token metrics

      When deciding whether or not to trade a memecoin, we look at various token metrics. One metric is holder distribution, for example, on pump.fun, you can see the holder distribution statistics on the bottom right hand side of the page. If only the developer is holding the token, there is a strong risk that they may rug pull once you buy. You can also look at the replies underneath the token chart to get a general idea of what the community feels about the memecoin. Another metric to consider is whether the memecoin unique. This is because if the memecoin is a secondary version of a meme, or it is not humourous, then people may not be that interested in buying it.

    6. How to buy the dip

      Buying on dips can be used for speculation or simply to secure better entry points for a long-term position. Keep a watch list of strong tokens ready so you can quickly secure a profit during any market drop.

    7. Find tokens tied to trending narratives

      Tokens tied to trending narratives like AI, AI agents, DPin, or AI agents are often the first to recover after a dip. Investors return to projects that align with current market trends. Examine how the price has reacted to past dips and assess the current level of interest.

    8. Find memecoins with high liquidity

      Memecoins with higher liquidity ensures that a token can be bought or sold easily without significant price slippage, which is crucial for profit-taking. Check trading volumes on major exchanges. Low liquidity makes it harder to exit positions, especially in volatile markets. You can consider exploring memecooins with a market cap between 10 million and 500 million to balance risk and reward.

    9. Look for whales or funds accumulating a token

      If whales or funds are accumulating a token, it increases trust within the project because smart money typically avoids weak projects. You can track whale wallets using tools like GMGN.AI for significant transactions.

    10. Trade meme coin

      According to the website, Pump.fun is a meme coin trading platform that aims to prevent rug pulls by attempting to make sure that created tokens are safe. Each meme coin on their platform is a fair-launch without presale or team allocation. That means that no team members of the coin can hold the coin before its public launch. This also means there are no team members who can quickly trade the coin immediately after the public launch, thereby giving them an advantage over the public.

      How pump.fun works is that once you find a meme coin that you would like to buy, you buy the coin on the bonding curve. You can also sell the meme coin at any time if you wish to lock in your profits or losses. When enough people buy the meme coin such that it reaches a market capitalization of US$69k, US$12k of liquidity will be deposited into Raydium and burned. The effect of this is that the token supply would be reduced, making the token scarcer and potentially pushing the coin price upwards.

    11. Monitor price action after any dips

      Price dips when trading memecoins are inevitable. However, strong tokens recover quickly after dips, signaling market confidence and sustained interest. Monitor the price action after a dip. Rapid recovery often indicates strength and resilience in the token.

  • BullX tutorial: Memecoin trading and strategies guide

    BullX tutorial: Memecoin trading and strategies guide

    BullX is the fastest advanced DEX trading system that is currently deployed on 6 different chains (Solana, Base, Ethereum, Blast L2, Binance Chain, Arbitrum). They are one of the most powerful trading bots for trading meme coins and may have a potential airdrop! Here is our BullX tutorial for memecoin trading!

    For a guide on how to get the BullX token airdrop, check out our BullX token airdrop guide.

    Check out our BullX tutorial!

    BullX Tutorial: Full Memecoin Trading and Strategies (part 1)

    What is BullX?

    BullX is a cutting-edge trading platform that revolutionizes memecoin trading on the Solana network. It offers a range of advanced features designed to cater to both novice and experienced traders. Here are some of BullX’s main features:

    1. Multi-Chain Support: BullX supports various EVM chains, including Solana, Ethereum, BNB Smart Chain, and Arbitrum.
    2. Advanced Charts and Stats: The platform provides live market data, interactive charts, and comprehensive analytics to help traders make informed decisions.
    3. Limit Buy/Sell Across All Chains: Users can set custom trading strategies with ease.
    4. Telegram-Web Interface: BullX integrates seamlessly with Telegram, allowing users to manage trades, monitor updates, and receive alerts in real-time.
    5. Fast Indexing: The platform processes blockchain data at lightning speed, ensuring real-time trading updates.
    6. Realtime Security Audit: BullX offers advanced security features, including AES-256 encryption and private key management.
    7. Multi-Wallet Management: Users can manage and trade across multiple wallets without constant logins.
    8. Pump Vision: This feature helps users track pump tokens and trends, staying ahead of Moonshot opportunities.

    BullX tutorial: How to trade memecoins on BullX?

    Here is a tutorial on how to trade on BullX.

    1. Connect Telegram account

      Go to https://bullx.io/ and connect your Telegram account. You will need to do this step as BullX integrates with your Telegram account.

    2. Enable two-factor authentication (2FA)

      Enable 2FA and back up your private keys. It is suggested to store your private keys in a safe location offline in case your computer is hacked. Never share your private keys with anyone and note that customer service will never ask you for your private keys. Also, ensure that your Telegram account is secure, as your BullX wallet information is generated and stored there.

    3. Fund your BullX trading wallet

      To fund your BullX trading wallet, go to the Wallet Manager in your BullX account. Then, click “Add Funds” and follow the instructions to deposit cryptocurrency from an external wallet or exchange. You will find your funds in the “Wallet Manager” page.

    4. Select a token

      Go to the “Explore” feature (i.e the compass button on the left bar). There, you can organise tokens based on features such as Trending, Gainers, Losers or Recents. You can also choose the timeframe by clicking on the time buttons on the right hand side. By doing this, you can for example find the tokens with the most gains in the last 1 hour. You can also choose a token to trade by searching its name or pasting its contract address on BullX.

    5. Buy token

      Click on the token you wish to trade, then make sure you are on the “Buy” tab. Select the amount you want to buy in and click “Buy”. To adjust your buy settings, click on the amount of gas being charged and you can select options such as Buy Priority Fee, Buy Slippage Limit, Buy MEV Protection and Buy Bribe. The first and last of these options are the ones you would most likely adjust, especially when the network is congested, and you want your transaction to be processed faster.

    6. Check progress

      After confirming to buy the token you can check the transaction progress by looking at “Orders” and checking its progress. Once the transaction has completed you will see a tick mark next to the order.

    7. Check Market Trades information

      On the “Market Trades” section at the bottom of the screen you can see all of the recent trades for that token. A star emoji next to the user under the “Maker” column shows that it is a new wallet or user doing this trade. Whilst the animal icons also show much these users have traded. The largest trades are shown by a whale icon, followed by dolphin, fish and shrimp.

    8. Check Holders

      Click on the “Holders” tab to see what percentage of holdings is being held by how many people. For instance, it will indicate the total percentage of tokens held by the top 10, 50 or other holders. This is valuable information particularly for new tokens.

    9. Check Top Traders

      Click on the “Top Traders” tab to see which users have made the most money on a specific token.

    10. Check trade statistics

      Click “Stats” on the right hand side to see the percentage of trades that have happened in the past 5 minutes, 1 hour, 6 hours or 24 hours.

    11. Check Security Audit information

      Click the “Checks” tab on the right hand side to see basic security information. For example, who has done the Security Audit for a token, if the Owner Address has been renounced, the percentage of tokens belonging to the token owner. You can also see if the token contract is open-sourced. A closed-source token contract could potentially be a red flag as traders are not able to see the token contract and potentially identify any security issues.

    12. Check life position

      Click “My Position” on the right hand side. This section will tell you your holdings of a specific token and the Unrealised PnL. The Unrealised PnL means how much you would gain/lose if you sold this token immediately.

    13. Set Limit Orders

      To set a Limit Order, click “Limit” on the top right hand side. Set when the limit order should be processed on the graph, and then the amount of tokens to buy on the “Buy” section. Once you have confirmed to buy the token, the transaction will execute when the token reaches the price you had specified. Note you can also cancel your order before it is executed if you change your mind.

  • Four.meme review: Everything you wanted to know

    Four.meme review: Everything you wanted to know

    Four.meme is the first memecoin launchpad on the Binance Smart Chain (BSC) network. The platform aims to be a streamlined and low-cost pathway to bring more meme tokens into this world. Here is our Four.meme review.

    Check out our video Four.meme review and guide!

    Four.meme Guide: BSC Memecoin Fair Launch like Pump Fun

    What is Four.meme?

    Four.meme is the first memecoin fair launch platform on Binance Smart Chain (BSC). Here are the main features of Four.meme:

    1. Fair Launch: Every meme coin launched on Four.meme uses a fair launch mechanism. This ensures there will be no pre-sale, seed round, or team allocation. As a result, this creates a level playing field for all participants.
    2. Community-Driven: Four.meme is built around the power of community, empowering creators, traders, and opportunists in the BNB Chain ecosystem.

    Four.meme fees

    Here are some of the fees for using the Four.meme platform as a memecoin creator or trader:

    • Launching fee: To launch a memecoin, you will only need to pay for the transaction fee which is around 0.005 BNB.
    • Seeding fee: Once your memecoin project reaches 100% of the bonding curve (approximately 24 BNB), the seeding process begins. The platform will then set up a liquidity pool on Pancake paired with 24 BNB.
    • Trading fee: Memecoin traders will need to pay a transaction fee the platform a 0.5% trading fee (minimum 0.001 BNB).

    What is the Four.meme token?

    Four.meme has not announced its own token yet. However, they currently have an airdrop campaign where you can receive Four.meme Points. These Four.meme Points are redeemable for rewards. For example, you can exchange Four.meme Points for USDT and memetokens such as $FOUR and $WHY, which are strategic partners of Four.meme. The type of token redeemable and exchange ratios will be announced after the end of the airdrop campaign. Four.meme Points can also be redeemed for special airdrop packages of meme tokens and exclusive NFTs.

    Check out our Four.meme ($FOUR, $WHY) token airdrop guide!

    How does Four.Meme work?

    Time needed: 15 minutes

    Four.meme has a launchpad which allows creators to make their own meme coins and tokens efficiently. Here’s a step-by-step guide on how to launch your own project on Four.meme:

    1. Configure Your Token

      Set up your token’s name, symbol, and other key details. Then, use the user-friendly interface to configure these settings efficiently.

    2. Launch Your Project

      Launching requires no technical skills and takes only a few seconds. Developers can purchase a portion of their token supply to protect against snipers. To launch your project, simply confirm the transaction to complete the launch.

    3. Pay fees

      Launching Fee: Only the transaction fee (~0.005 BNB).
      Trading Fee: 0.5% per trade (minimum 0.001 BNB).
      Seeding Fee: Once the project reaches 100% of the bonding curve (24 BNB), a liquidity pool is established on PancakeSwap.

    4. Optional settings

      You can set the start time for trading, as well as limiting the maximum buy-in per user (e.g., 10,000,000 tokens = 1%).

    Is Four.Meme safe?

    Four.meme is the first memecoin fair launch platform on the Binance Smart Chain (BSC). Here are some key points to consider:

    1. Fair Launch: Every meme coin launched on Four.meme uses a fair launch mechanism, ensuring no pre-sale, seed round, or team allocation. This aims to create a level playing field for all participants.
    2. Community-Driven: Four.meme emphasizes community involvement. Users should assess their financial situation, risk tolerance, and do their own research before trading in any meme coins on the platform.
    3. Hacks and exploits:  While the Four.meme platform itself hasn’t been hacked or exploited yet, remember that investing in highly volatile meme tokens carries risks, so users may want to always be cautious.

    Therefore, while Four.meme aims to provide a fair and transparent environment, remember that all investments carry inherent risks.

    Conclusion: Pros and Cons of Four.meme

    In conclusion, here is a review of some pros and cons of the Four.meme platform:

    Pros

    1. Fair Launch: Every meme coin on Four.meme uses a fair launch mechanism, ensuring no pre-sale, seed round, or team allocation. This promotes a level playing field for all participants.
    2. Community-Driven: Four.meme empowers creators to launch meme coins directly, connecting with their audience. It fosters community engagement and support.
    3. Integrated Trading Tools: The platform plans to integrate with trading bots and AI-powered market analysis services, enhancing utility and informed investment decisions.
    4. Built on Binance Smart Chain (BSC): BSC offers fast transactions, low costs, liquidity, and security.

    Cons

    1. Risk: As with any investment, meme coins carry inherent risks. Users should exercise caution and conduct due diligence.
    2. Market Volatility: Meme coins can experience extreme price fluctuations due to market sentiment and trends.
    3. Short-Lived Relevance: Some meme tokens may lose relevance quickly, impacting their value.

    Further reading

    Check out our other memecoin platform reviews:

    SunPump ($SUN) review: Everything you wanted to know

    Learn how to trade memecoins and get an early advantage!

    How to snipe Solana ($SOL) memecoins early

  • Upcoming Crypto Airdrops: These have the HIGHEST potential!

    Upcoming Crypto Airdrops: These have the HIGHEST potential!

    Blockchain projects frequently rely on crypto airdrops to raise awareness, grow their community, and increase the value of their products. After all, the survival of a project depends on its ability to attract and grow its user base. Users, of course, have nothing to complain about. After all, who doesn’t love free stuff? In this article, we look at the rumoured upcoming crypto airdrops. We also look at how you can sign up and receive free airdropped tokens.

    But before you rush out there to sign up, check out our article to learn more about crypto airdrops, and how to protect yourself against airdrop scams.

    Vela Exchange ($VELA) Airdrop: Airdrop coming 26th June 2023!

    Vela Exchange is a digital asset trading platform.

    Vela will be doing an airdrop and mainnet launch on 26th June 2023. So far, they have hinted on Twitter that maximizing your trading volume is the key to a max airdrop. Also, participating in their Flash Trading Competition will not only give you a chance to win their prizes but may also give you more airdropped tokens. The first competition ended with a prize pool of 10,000 $USDC and 2,000 $eVELA rewards. Vela will do a second flash contest, which will be adjusted to support traders of all sizes. However, the main event will be their Grand Beta Trading Competition, which Vela promises will offer major prizes.

    For more details, check out our Vela Exchange ($VELA) Token Airdrop Guide

    Polygon zkEVM ($MATIC) Token Airdrop

    Polygon zkEVM ($MATIC) is a Layer-2 scaling solution for Ethereum that leverages the scaling power of zero-knowledge proofs while maintaining Ethereum compatibility. Sandeep Nailwal, co-founder of Polygon, strongly hinted on Twitter that there will be a huge MATIC airdrop for zkEVM users. The best way to get the potential airdrop is to interact with the Polygon zkEVM mainnet. To do this, add Polygon zkEVM to MetaMask. Then, bridge to Polygon zkEVM either via the native bridge or a third party bridge such as Orbiter Finance. Finally, interact with QuickSwap, which is currently the only active dApp deployed on Polygon zkEVM.

    Learn more with our Polygon zkEVM (MATIC) Token Airdrop Guide.

    Blur NFT Marketplace: Season 2 delayed

    Blur ($BLUR) calls itself the “Fastest NFT Marketplace” providing users with a decentralized marketplace for trading Non-Fungible Tokens (NFTs). They aim to stand out by giving users the ability to sweep across multiple NFT marketplaces, faster access to NFT reveals, and improved user experience.

    Blur’s airdrop Season 1 ended on 14th February 2023. Blur have announced they will airdrop over 300 million $BLUR in Season 2, which was scheduled for April 2023 but is currently delayed.

    To participate in Blur’s Airdrop Season 2, users can connect their wallet to Blur’s platform and begin bidding on collections here. Airdrops are given on a point-based system. This system rewards bids on NFT collections based on their 24-hour volume. Participants can also maximize their $BLUR token airdrop by earning more points with loyalty.

    For Season 2, Blur has also launched Blend (short for Blur Lending). Blend is a peer-to-peer perpetual lending protocol for NFTs and allows NFT holders to borrow ETH against their NFTs without needing to sell them. With the launch of Blend, the Blur team also introduced Lending Points, which are doubled for certain NFT collecions.

    Learn how to get Blur token airdrops and maximize your gains: Blur Airdrop Guide: How to Get Season 2 Rewards?

    Sei Network ($SEI) Airdrop: Confirmed!

    Sei Network is a layer-1 blockchain built with Cosmos SDK. Its aim is to become the preferred chain for decentralized exchanges (DEXs) in DeFi, NFTs, and GameFi. Sei Network is planning to launch its $SEI token after its mainnet launch in the coming months. They have also confirmed that 1% of its total supply will be allocated to airdrops. The best way to receive a potential $SEI airdrop is to interact with their Seinami Incentivized Testnet by completing their tasks. Check out our Sei Network ($SEI) Token Airdrop Guide.

    zkSync ($ZKS) Airdrop: TBC

    zkSync is a ZK Rollup that aims to provide scaleable and low-cost transactions on the Ethereum blockchain. This is by submitting validity proof to an Ethereum smart contract along with transactions that are bundled.

    zkSync Era Mainnet Alpha is now open to public. The team has said they will launch a native token in the future, leading to hopes that some of the tokens will be airdropped then. There is speculation that to be eligible for the zkSync Airdrop, users should: (1) Add zkSync Era Alpha Mainnet on MetaMask; (2) interact with zkSync Lite and zkSync Era Mainnet Alpha; (3) Complete quests on zkSync’s Crew3 ;and (4) interact with the zkSync ecosystem such as Orbiter Finance or ZigZag. The last option is also particularly worthwhile since some zkSync dApps may not have launched their token yet. So you may get a chance to earn double airdrops!

    For a full tutorial check out zkSync ($ZKS) Token Airdrop Guide: How to Earn Double Rewards!

    My MetaTrader ($MMT) Airdrop: Second Round CONFIRMED!

    My MetaTrader (mTrader) is a DEX built on Arbitrum with GPT-3. It offers low trading fees, a wide range of trading pairs and leveraged trading up to 150x on cryptocurrencies, 1000x on forex & commodities, 100x on stocks, and 35x on indices. Their $MMT token was listed on SushiSwap on 21st February 2023, with 5% of its total supply of 5 million tokens being allocated towards airdrops.

    My MetaTrader have announced their airdrop is divided into two rounds. The first round is already over, but the date of the second round is yet to be announced. The second round will have the most tokens available for airdrops- 890,000 $MMT! To be eligible for their second round of airdrops, obtain special roles on their Discord channel and complete different tasks on Galxe and Crew3.

    Learn more with our My MetaTrader ($MMT) Token Airdrop Guide

    StarkNet ($STRK) Token Airdrop: Potential second round?

    StarkNet is a decentralized Validity-Rollup (or “ZK-Rollup”) that works on top of Ethereum, providing unlimited computational capacity to decentralized applications without sacrificing security or compatibility. It utilizes STARK, a secure and scalable cryptographic proof system, to ensure that transactions are secure and reliable. StarkNet is permission-free, meaning anyone can use it without needing to be approved by a third party. StarkNet’s alpha v0.11.0 has just gone live on Testnet, and the mainnet upgrade is expected to follow soon after.

    The best way to receive a potential StarkNet $STRK token airdrop is to interact with their testnet. Also, there are a few protocols on StarkNet that do not have a token yet. So using their DApps could put you in a position to receive their airdrops as well, allowing you to earn double rewards!

    Check out our StarkNet ($STRK) Token Airdrop Guide.

    MetaMask ($MASK) airdrop: TBC

    MetaMask is a popular browser extension that allows users to store their Ethereum (ETH)/ ERC-20 tokens as well as interact with other decentralized exchanges. It is highly popular for users that use ETH and/or its tokens often. This is because it is secure and allows users to have quick access to their funds.

    Check out our MetaMask Guide: How to set up an account? Plus tips and hacks for advanced users.

    On 16th March 2022, it was announced that MetaMask intends to launch its own token. Although there are few details of when the token would be launched, it was teased that the token’s ticker would be $MASK.

    Details of how to be eligible for MetaMask ($MASK) token airdrop have not been released. However, it is speculated that using the wallet for DeFi activities, swapping tokens, and bridging assets might entitle you to a MetaMask ($MASK) token airdrop when it happens.

    Learn more about MetaMask ($MASK) Token Airdrop Guide: Earn $4000 for Free

    Shardeum ($SHM) Airdrop: Details TBC

    Shardeum is a smart contract platform built on the Ethereum Virtual Machine (EVM). Although it is similar to other state-sharding platforms like Harmony, Elrond and NEAR Protocol, Shardeum stands out by using dynamic state-sharding.

    Shardeum has not officially announced their $SHM token airdrop yet. However, Shardeum recently launched their betanet, and protocols on there also have incentives for early users. So the best chance to receive Shardeum token airdrops would be to interact with their testnet.

    For a full guide on how to potentially receive Shardeum ($SHM) token airdrops: Shardeum ($SHM) Token Airdrop Guide: Earn $1500 for Free

    LayerZero ($ZRO) Airdrop: TBC

    LayerZero ($ZRO) is an omnichain interoperability protocol that can be used for lightweight messaging across chains. They are able to provide authentic and guaranteed message delivery with configurable trustlessness. It is currently live on most major blockchains including Ethereum, Avalanche, Polygon, BNB Chain, Aptos, Fantom, Arbitrum, and Optimism.

    LayerZero has not launched its token yet but the team have referred to a $ZRO token in their documentation. However, it is hoped that when they do, they will airdrop the token to users of their dApps. Here are some suggestions for participating in any potential airdrop:

    1. Stake and Vote $STG on Stargate Finance
    2. Use the Stargate, USDC, Aptos and LiquidSwap bridges
    3. Use SushiSwap Cross-Chain Swap
    4. Use BitcoinBridge
    5. Interact with other dApps on LayerZero
    6. Get roles on the Stargate Guild

    However, do note that there is no official announcement regarding airdrops from the LayerZero team. So any suggested participation methods are speculation only.

    Learn more about LayerZero and details on how to be eligible for any future airdrops.

  • Active Crypto VCs To Watch: Secrets to Success?

    Active Crypto VCs To Watch: Secrets to Success?

    Crypto venture capitalists (VC) aim to invest in blockchain projects and companies with high potential. These firms usually provide early-stage startups with capital, guidance, and resources to help them expand. Venture capital firms are crucial to the blockchain ecosystem, as they offer valuable resources that enable projects to grow and scale rapidly. Here’s our picks for the top active crypto VCs you should follow and look out for.

    What is a crypto VC?

    A crypto VC, or crypto venture capitalist, is a type of venture capital firm that specializes in investing in early-stage startups that offer products or services related to cryptocurrency, blockchain technology, and digital assets. They typically fund projects through equity investments, token sales, or other financial instruments. In addition to providing capital, crypto VCs also offer guidance and advice to the startups in which they invest.

    What does a crypto VC do?

    Crypto VCs fund projects through equity investments, token sales or other financial instruments. In addition, they also provide guidance and advice to the startups in which they invest. Hence, they play a vital role in the blockchain ecosystem by providing valuable resources to support projects’ growth and scaling quickly.

    What makes a good crypto VC?

    There are several factors that contribute to a good crypto venture capital (VC) firm. These include:

    Total assets under management (TUM)

    This measures the total value of all the investments managed by a venture capital firm. It is used to measure the size and performance of a firm and can indicate its success in attracting investors and making successful investments.

    Number of successful investments (track record)

    This serves as an indicator of a firm’s ability to identify, invest in, and help grow promising businesses. It provides a measure of the firm’s performance over time and allows potential investors to gauge the quality and success of the investments made.

    Reputation in the industry

    A good reputation helps build trust, which is essential for successful fundraising and investment. Additionally, a solid reputation can help to create relationships with the most promising entrepreneurs and startups, leading to more successful investments and higher returns for the firm.

    Network and resources

    Having access to resources such as industry contacts, financial advisors, legal counsel, and other specialized professionals can help a venture capital firm make informed decisions, maximize investment returns and protect its interests. Additionally, having an extensive network of investors can provide a venture capital firm with additional funding sources for new investments and support existing portfolio companies.

    The team

    The quality of a venture capital firm’s team and staff plays a significant role in the decision-making process. They must be knowledgeable about the industry, have a good understanding of the market, and be able to identify and assess potential investments accurately.

    Portfolio projects/companies

    The quality of portfolio clients directly affects a crypto VC’s return on investment. Venture capital firms invest in companies expecting to generate a significant return. If the portfolio companies are unsuccessful, the venture capital firm won’t be able to generate a profit.

    As a cryptocurrency trader, it can be helpful to follow these good crypto VC firms. This is because a crypto VC firms offer capital and operational assistance to blockchain startups that are behind innovative, disruptive ideas. The firms spend countless hours of research into finding viable crypto projects with the most potential. Also, the portfolios of crypto VC firms is publicly available, which offer a great opportunity for retail investors to spot the best upcoming crypto projects in the market. Therefore, by following a good crypto VC firm, crypto traders can gain enhanced market insights and stay informed about new opportunities and trends.

    Active Crypto VCs to look out for

    Based on the factors mentioned above, here are some active crypto VC firms to look out for in 2023.

    Sequoia Capital

    Number of investments: 1,805

    Total assets under management: $85 billion

    Sequoia Capital is a highly regarded venture capital firm with a reputation for investing in some of the world’s most successful technology companies, such as OpenAI, Apple, Google, and LinkedIn. Its ability to identify and support early-stage startups has earned it widespread admiration from entrepreneurs, investors, and the broader tech community. Notably, Sequoia Capital recently invested US$120 million in LayerZero Labs, a company developing a trustless omnichain interoperability protocol to connect multiple chains.

    LayerZero may do an airdrop in the future! Learn more with our LayerZero ($ZRO) Token Airdrop Guide

    Coinbase Ventures

    Number of investments: 328

    Total assets under management: Over 30 billion

    Coinbase Ventures was founded in 2018 by the Coinbase cryptocurrency exchange. However, Coinbase Ventures is not directly backed by the exchange and is a separate entity. It specializes in early-stage VC deals and operates almost exclusively in the blockchain and cryptocurrency space. Some of the firm’s recent investments include Dolomite.io, Cloudburst Technologies, and zkLink, where it raised US$10 million.

    The firm mostly focuses on investing in Decentralized and Centralized finance (DeFi, CeFi), followed by crypto protocols and Web3 infrastructure.

    Coinbase Ventures Portfolio
    Coinbase Ventures portfolio (Source: Coinbase Blog)

    Pantera Capital

    Number of investments: 220

    Total assets under management: $4.1 billion in blockchain or blockchain-related assets

    Pantera Capital was founded on 12th February 2003 by Dan Morehead, a former CFO and head of Macro Trading at Tiger Management. Before 2014, Pantera’s focus was on global macro hedge fund investments. Since then, the firm has shifted its investment advisory services to concentrate solely on Bitcoin, other digital currencies, and related companies. Recent investments by Pantera Capital include OmniNetwork and Teahouse Finance. In particular, the recent investments into Prisim Labs and M’ZERO Labs were US$26 and US$22.5 million respectively.

    Binance Labs

    Number of investments: 90

    Total assets under management: $7.5 billion

    Binance Labs is a blockchain incubator and venture fund created by Binance, one of the world’s leading cryptocurrency exchanges. It has a major following in the industry for its commitment to helping startups succeed in the crypto and blockchain space. Binance Labs typically provides capital to blockchain startups in exchange for a stake in the new business. In addition to providing capital, Binance Labs offers support and guidance to these startups, assisting with developing their product/service, identifying potential customers and partners, and navigating the legal and regulatory environment. Binance Labs also provides access to their network of industry contacts and resources, which can help the startup succeed. Recent investments include Playbux, GOMBLE, Gameta and Polyhedra Network.

    Polychain Capital

    Number of investments: 198

    Total assets under management: $6 billion

    Polychain Capital was founded in 2016 by Olaf Carlson-Wee, who was previously an employee of Coinbase where he was Head of Risk. Investors of Polychain include Andreessen Horowitz, Sequoia Capital, Union Square Ventures and Founders Fund. Their latest crypto/blockchain investments include Webb Protocol, Thetanuts Finance, Polyhedra Network and Scroll.io.

    Scroll.io plans to release their token around the same time as their mainnet launch in Q2 2023. This could mean a Scroll token airdrop! Learn more with our Scroll token airdrop guide.

    Digital Currency Group

    Number of investments: 301

    Total assets under management: $3.5 billion

    Digital Currency Group (DCG) was founded in 2015 by Barry Silbert. DCG has made over 301 investments and has had 36 exits. Some of its most notable exits include Coinbase, Voyager, and Silvergate Bank. DCG has also made 26 diversity investments. The company has six main subsidiaries: Grayscale Investments, Genesis, Foundry US, CoinDesk, Luno and TradeBlock. Grayscale Investments operates a number of publicly-traded trusts that hold cryptocurrency assets like Bitcoin and Ethereum. Genesis is an over-the-counter cryptocurrency exchange that also offers lending services. DCG is a bit quiet on the investment side in 2023, but have made 2 investments into Axoni and Coinflow Labs.

    Paradigm

    Number of investments: 92

    Total assets under management:  $1.51 billion

    Paradigm was founded in June 2018 and has invested in some of the most successful projects in the space, including Ethereum, MakerDAO, Filecoin, 0x and DFINITY. Paradigm has made 92 investments and has had 5 exits. Some of its most notable exits include Coinbase, Compound, and Tagomi. The Company has only made 2 investments so far in 2023, namely Ulvetanna and Conduit.

    Andreesen Horowitz (a16z)

    Number of investments: 40

    Total assets under management: $4.5 billion

    a16z, also known as Andreessen Horowitz, was founded in 2009 by Marc Andreessen and Ben Horowitz. The Company, headquartered in Menlo Park, California, supports bold entrepreneurs who are building the future through technology. They are stage agnostic and invest in seed to late-stage technology companies across various sectors including bio and healthcare, consumer, crypto, enterprise, fintech, games, and companies building toward American dynamism. a16z are the most active VC firms in our list, having made 9 investments in 2023 alone. Their most recent being a US$120 million investment into LayerZero Labs.

    Ozaru Ventures

    Number of investments: 29

    Ozaru Ventures was founded in 2021 and is currently based in Hong Kong. What sets Ozaru Ventures apart from other traditional VC firms is that it has an in-house creative content and PR marketing firm. This gives the Company a leading advantage in boosting the success of its investments in preparation for and after its public launch. Ozaru Ventures boasts an influencer network of over 1000 members and over 100 million followers across various social media platforms. This has allowed the Company to 5x the engagement and 300x the token launch of its portfolio companies. Notable investments in 2023 include an exclusive partnership with Hacken to tap into and promote its presence across Asia, which accounts for over 43% of global cryptocurrency activity.

    FBG Capital

    Number of investments: 72

    Total assets under management: $312 million

    FBG Capital was founded in 2015 and currently based in Singapore. They are one of the largest and earliest blockchain investment firms and their portfolio companies include Ampleforth, Dapp.com, FTX Exchange, Neutral Dollar, ThunderCore, and Wintermute Trading. FBG Capital have also been quite conservative in 2023, they have only 1 invested project, namely a US$3m investment in FilSwan.

    Union Square Ventures

    Number of investments: 414

    Total assets under management: $1.5 billion

    Union Square Ventures (USV) entered the blockchain and cryptocurrency space in 2011. As of last year, companies in the blockchain/cryptocurrency space made up 15% of its portfolio, and the fund invested in blockchain-related companies for a quarter of its most recent investments. Some of their notable investments in the cryptocurrency space include Coinbase. In 2023, USV made 7 investments, a high number compared to a lot of funds on this list. Of these, notable investments include a $14m and $55m investment into m3ter and Zeitview respectively.

    Draper Associates

    Number of investments: 355

    Total assets under management: $5 billion

    Draper Associates is a seed-stage venture capital firm founded in 1985 by Tim Draper, who also founded the Silicon Valley venture capital firm known as Draper Fisher Jurvetson (DFJ). Draper Associates encourages entrepreneurs to drive their businesses to greatness and transform industries with new technologies. The firm has invested in many successful companies, including Tesla, Skype, Baidu, Twitch, and Robinhood. The Company has so far made 9 investments in 2023 in various industries, only 1 of which relates to cryptocurrency i.e. a $4m investment into Amboss.

    Conclusion

    Crypto venture capitalists are experts in investing in early-stage startups that focus on cryptocurrency, blockchain technology, and digital assets. They provide funding through various means such as equity investments and token sales and offer valuable guidance and advice to the startups they invest in.

    While the VC firms mentioned in this article have established themselves as leaders in their field, there are many others that are still emerging. The cryptocurrency and blockchain space is constantly evolving with new companies entering the market. However, receiving VC funding does not guarantee success for a startup. It is ultimately up to the startup to demonstrate that their product or service is a worthwhile investment for VC firms.

  • Ledger Nano S Plus Hardware Wallet Review

    Ledger Nano S Plus Hardware Wallet Review

    The increasing popularity and adoption of cryptocurrency has expanded the wallet market. Now that many well-known traditional and crypto brands accept crypto as a payment option, enthusiasts are constantly on the lookout for safer ways to store their digital assets.

    Ledger is one of the most popular hardware crypto wallets in the sector. Since releasing the Nano S in 2016, Ledger has become a household name in the cryptocurrency space. To date, Ledger has launched three models of hardware crypto wallets, the Nano S, Nano X, and most recently, the Nano S Plus. The Ledger Nano S Plus retails for USD$79.

    CLICK BELOW TO BUY!

    Check out our previous Ledger reviews here:
    Ledger Nano X review
    Ledger Nano S review

    What is the Ledger Nano S Plus?

    The Nano S Plus is Ledger’s third release from its Nano series, a line of pocket-sized hardware crypto wallets. Ledger’s Nano S Plus has all of the features of the original Nano S but with a few upgrades, including support for NFT storage and management. Additionally, the Nano S Plus has built-in support for interacting with various DeFi (decentralized finance) apps and services. (thetelegramnews.com) The wallet is an effective option for people looking to manage crypto, NFTs, and other decentralized services in one place.

    New features of the Ledger Nano S Plus

    Ledger introduced the Nano S Plus with an exciting list of features and improvements over the two previous releases. Some of the major new features on the Nano S Plus include:

    • Bigger display. Same display size of the Nano X but on a smaller device!
    • Expanded cryptoasset support. The Nano S Plus doesn’t just hold cryptocurrencies, but also NFTs and is the first Ledger device to have DeFi app integration.
    • Industry-leading security. The Nano S Plus uses the same industry-leading security with CC EAL5+ certification.
    • Easy setup. USB plug-and-play feature means owners can begin using the device in minutes.
    • Low cost. The Nano S Plus comes at an affordable price of US$79, making it an attractive option for all levels of crypto traders.

    Security features: is the Nano S Plus safe?

    The Nano S Plus uses the same certified secure chip (CC EAL5+ chips) as the Nano X to protect users’ assets. This chip employs state-of-the-art technology that guarantees high-level security and asset protection against phishing and other asset extraction schemes. Additionally, the wallet has industry-standard security features, including a security phrase, PIN code locks, transaction confirmations, password encryption, and more.

    To learn more about the security features of the Nano S Plus and Nano X, click here.

    5/5 Security Rating

    Cryptoasset support

    A major Nano S Plus feature is the huge roster of supported crypto assets and apps. The Nano S Plus supports over 5,500 assets and can accommodate up to 100 different apps. Some supported assets include:

    • Bitcoin (BTC)
    • Ethereum (ETH)
    • ERC-20 tokens
    • Dogecoin (DOGE)
    • XRP
    • BNB
    • Cardano (ADA)
    • Polygon (MATIC)
    • Litecoin (LTC)
    • Tron (TRX)

    The Nano S Plus has 1.5MB of storage and with that can run over 100 apps simultaneously. On Ledger devices, an “app” refers to the app required to be installed to access a cryptocurrency on the device e.g. in order to access your BTC on the device you need to install the app on the Ledger first. Meaning that, unlike the Nano S which can only run 3 apps simultaneously, users are not required to delete apps in order to access other cryptocurrencies which do not have the apps already installed.

    But what is truly unique about the Nano S Plus is that it is the first Ledger device to offer NFT support. Users of the Nano S Plus can securely hold, send, and receive NFTs via the Ledger Live app. Ledger has made this process user-friendly, as owners can authenticate transactions right from the wallet’s interface.

    Users of the Nano S Plus can also access several DeFi applications through the Ledger Live user interface. Anyone can securely buy, exchange, lend or stake crypto assets.

    The NFT support and DeFi app access give the Nano S Plus an even bigger boost in features compared to the Nano S and for that reason, we rank this category even higher than the Nano X.

    4.8/5 cryptoasset support

    Hardware design

    Similar to the Nano S, the Nano S Plus also has two hardware buttons located on the top of the device.

    The Nano S Plus has a much larger screen than its predecessor, which makes usage very easy. Same as the Nano X, the 128 x 64-pixel screen makes operating the device simple and helps users navigate the product’s features. The main benefit of the larger screen is that users can see the entire wallet address clearly displayed as one line on the screen. The screen also blends well into the rest of the device, adding to the Nano S Plus’ aesthetic appeal. And whilst the screen size on the Nano S Plus is the same as the Nano X, the Nano S Plus is a much smaller device overall.

    The Ledger Nano S Plus’ measurements are smaller than the Nano X at 62.39 x 17.40 x 8.24 mm, and weighs in at only 21g. The wallet is about the size and weight of an average USB flash drive and is easy to carry around.

    4.5/5 for hardware design

    4.5/5 for ease of use

    What’s in the Ledger Nano S Plus Box?

    The Nano S Plus wallet comes with the following inside the box:

    • The Ledger Nano S Plus hardware
    • A Type-C USB cable to connect the Ledger to a computer
    • An orange box with three notepads for the Secret Recovery Phrase
    • A purple box with the manual instructions
    • A key-holder chain with a Ledger logo

    Final Verdict

    The Ledger Nano S Plus is a great option for enthusiasts looking for a secure, reliable, and easy-to-use hardware wallet. It offers the same features as the original Ledger Nano S and adds a lot more. Furthermore, users looking to upgrade from the older Ledger Nano S can quickly move their assets to the newer S Plus.

    The Ledger Nano S Plus is one of the best hardware wallet options on the market for crypto and NFT enthusiasts who currently own or plan to purchase NFTs or get involved with any DeFi project.

    The Ledger Nano S Plus retails for US$79.

    CLICK HERE TO BUY!

    Ledger Nano S Plus worth it?

    [wp-compear id=”5154″]

    Product Specifications (Technical Specifications)

    Ledger Nano S Plus Product Specifications:

    Processors
    Compatibility 64-bits desktop computer (Windows 8+, macOS 10.8+, Linux) excluding ARM Processors.Also compatible with smartphones Android 7+.
    Connector USB-C
    Security Certification CC EAL5+
    Size Size: 62.39mm x 17.40mm x 8.24 mm
    Weight: 21g
    Supported assets 5,550+ digital assets plus NFTs and DeFi app access
  • Crypto Market Analysis for Beginners: Looking at Macro Data (Inflation, Interest Rate) to Determine Trends

    Crypto Market Analysis for Beginners: Looking at Macro Data (Inflation, Interest Rate) to Determine Trends

    The crypto market is volatile and unpredictable, but there are events outside of the crypto space that heavily influences the performance of the market. If you are unsure of how the market will react, it always helps to take a step back and look at the bigger picture, which in this case is the macroeconomic data.

    Why Technical Analysis and Narratives are Not Enough

    A lot of people use technical analysis and narratives to determine future price movements. For example, traders would use chart patterns, trading ranges, and technical indicators to determine bullish or bearish trends. On the other hand, investors with a more fundamental approach tend to capitalize on rising narratives in the crypto industry, such as the upcoming Ethereum Shanghai Upgrade causing liquid staking derivatives to pump or halving events for Bitcoin.

    These can be effective strategies, but not always reliable because there are larger forces at play. When the Ethereum Merge came in September, everyone expected ETH to surge in price because of the hype. But the crypto market was under pressure from macroeconomic factors causing broader investment market volatility rather than negative reactions from investors. This was when inflation and interest rate was at its highest for the year, affecting not only the crypto market but other financial markets as well.

    How Do Macro Data Influence the Crypto Market?

    As we have seen in 2022, short term speculation has been significantly influenced by macroeconomics. Since crypto is not widely adopted yet, it is still treated as a speculative asset. As such, Bitcoin’s price movement tend to mirror Nasdaq tech stocks, despite its vision of decoupling from the stock market. It is important not to underestimate macro data as they affect all financial markets. These are some of the common macro data to look out for when analyzing the market.

    U.S. Consumer Price Index (CPI)

    Inflation is measured by the Consumer Price Index (CPI). It is a key economic metric based on prices that consumers pay for goods and services throughout the U.S. economy. When CPI is high, it means that prices for goods and services have risen, indicating inflation. Essentially, high inflation erodes the purchasing power of fiat currencies, meaning that individuals have less buying power for goods and services.

    As a result, inflationary pressures can cause market volatility, as people are more likely to save money for daily necessities and reduce their exposure to risky investments such as crypto. But as shown in the image below, the inflation rate and CPI are cooling off in 2023, which means that the worst is already behind us.

    Source: cnbc.com

    Federal Interest Rate

    The federal interest rate, also known as the federal funds rate, is the benchmark interest rate set by the Federal Reserve (the central bank of the United States) for overnight lending between banks. It is measured in basis points (bps), describing the percentage change in the interest rate. One basis point is equal to 0.01%. It is an important tool used by the Fed to influence the overall level of interest rates in the economy and to affect the supply of credit.

    The fed rate goes hand-in-hand with CPI and inflation rate. If the Federal Reserve raises interest rates, it becomes more expensive to borrow money. This affects businesses in particular, and shifts the investment landscape from risk-on to risk-off, reducing the demand for stocks and crypto alike.

    Although CPI and inflation has been cooling off in 2023, it is not guaranteed that the Fed will scale back to 25 bps. According to Bloomberg, broader analysis of economic and financial conditions would favor the Fed raising rates by 50 bps. This could result in a stock market dip, which also affects the crypto market.

    Supply Chain

    The supply chain refers to the series of industries involved in the production, delivery, and distribution of goods and services worldwide. They are key indicators of global economic activities. Strong economic growth can increase demand for cryptocurrencies, as investors seek alternative investments in a growing market. On the other hand, weak economic growth or disruptions in the supply chain can reduce demand for cryptocurrencies and impact their price.

    As of 2023, the supply chain is slowly recovering as the COVID pandemic is dying down. With the rise of artificial intelligence (AI) tools such as ChatGPT, supply chain leaders are focusing on automation, robotics and sustainability to improve manufacturing and solve labor cost problems. As such, shipping costs and gas prices have gone down. But there are still some areas struggling with shortages and bottlenecks, leading to bankruptcies and unemployment. For more information, Forbes has published an article sharing their insight on supply chain trends in 2023.

    US Gross Domestic Product (GDP)

    Out of all countries, the US seems to have been the dominating narrative in what has affected the price action of the crypto market. This could be related to the US CPI and Fed interest rates. While the US GDP does not have a direct affect on crypto prices, it can indirectly impact crypto prices by affecting the overall economy, consumer confidence, and market sentiment.

    A strong US economy may increase consumer confidence and investment, potentially leading to an increase in crypto prices. Conversely, a weak economy may lead to a decrease in consumer confidence and investment, potentially leading to a decrease in crypto prices.

    Housing Market

    The housing market can affect crypto prices indirectly, as changes in the housing market can impact the overall economy and consumer confidence. A strong housing market can boost consumer confidence and lead to an increase in investment, potentially resulting in an increase in crypto prices.

    On the other hand, a weak housing market can dampen consumer confidence and lead to a decrease in investment, potentially leading to a decrease in crypto prices. However, it is important to note that the relationship between the housing market and crypto prices is not direct and can vary depending on various other factors such as interest rates, economic policy, and global events.

    As of 2023, the supply chain recovery has helped bring back inventory of single family homes on the market, and has increased the supply side as well. But with mortgage rates increasing, it is unlikely there will be an increase in demand for housing any time soon. Therefore, it is highly likely there will be a housing market correction, but we do not know if it is going to small or big.

    Source: Altos Research

    Oil Prices

    Energy has been a critical factor in the economic turmoil and increased inflation in the past year, and it has mainly come from oil prices. With the ongoing war in Ukraine, many people were fearful of a major worldwide energy crisis this winter. Although there was an energy crisis in Europe, it was not as bad as predicted. Meanwhile, oil prices dropped from $120 to $80 as a result of CPI and inflation rate cooling off.

    Source: Trading Economics

    Key Takeaway

    Macroeconomic data is important for crypto prices because it can provide insight into the health and stability of the overall economy, which can impact investor confidence and market sentiment. This, in turn, can affect demand for cryptocurrencies and ultimately their prices. Macroeconomic data such as GDP, inflation, interest rates, employment figures, and trade balances can all provide a broader understanding of the economic environment, helping traders and investors make informed decisions about the crypto market. Additionally, changes in macroeconomic conditions can also impact the supply and demand of cryptocurrencies, affecting their prices.

  • SwissBorg ($CHSB): What is it?

    SwissBorg ($CHSB): What is it?

    SwissBorg provides users with tools (Wealth App, Smart Yield, $CHSB token, etc.) and the infrastructure (wider support from community, regulatory clarity etc.) to manage their cryptocurrency investments with negligible effort. Swissborg’s aim for doing this is to help users navigate the relatively new field of cryptocurrency which at times can have complex concepts and rather scattered infrastructure with little standardisation. In this article, we will take a deep look at SwissBorg: its merits, the problems it attempts to solve, and everything in between.

    Sign up for SwissBorg with our exclusive link to get free CHSB!

    Table of Contents

    Background

    Launched in December 2017 after having raised over USD $52 million, SwissBorg was founded by Anthony Lesoismer and Cyrus Fazel. Based in Switzerland and fully compliant with Swiss Law, the project has a multicultural team that comprises members from 200 countries consisting of highly experienced professionals having experience in major banks and investment management firms.

    What Is SwissBorg?

    SwissBorg is the first blockchain-based secure wealth management platform, aimed at simplifying the process of crypto investments, integrating with major digital asset exchanges and featuring community-based ownership. They also have a mobile version called “Wealth App” which is available for both iOS and Android platforms (see below).

    The top achievements of the project, so far, have included its successful fund-raising of USD $53 million, large community, blockchain referendums, gamified Bitcoin prediction app, and a high-performing native token.

    Supported countries

    SwissBorg is available in over 100 countries (however it is currently not supported in the US) with many more to come. Although for some countries, the full range of features offered by SwissBorg may not be available. See here for a full list of supported countries.

    Supported assets

    SwissBorg supports over 30 cryptocurrencies including BTC, ETH, CHSB, USDC, PAXG, ENJ, BNB, LTC, XRP and BCH. They also have ongoing votes on which other cryptocurrencies should also be listed.

    SwissBorg also supports 16 fiat currencies including EUR, USD, GBP, CAD, HKD, and SGD. Check here for a full list of SwissBorg’s supported assets.

    Swissborg supported fiat currenciesSwissBorg Network Token ($CHSB)

    The platform’s multi-utility token is SwissBorg ($CHSB), which is an Ethereum-based and ERC-20 compliant token. It has a circulating supply of 715 million out of a total of 1 billion.

    The rest of the held supply is reserved for the development and promotion of the project. The CHSB token is traded on major exchanges like KuCoin, Uniswap (v2), Yobit, HitBTC, IDEX etc. and has multiple use cases.

    Use Cases

    CHSB token powers the entire SwissBorg ecosystem. It is used for staking for platform’s fee discount and grants voting rights on the platform.

    Furthermore, it is also used for reward distribution through the “Proof of Meritocracy” concept as well as the team’s “Protect and Burn” policy. The purpose of the policy is to increase scarcity and enhance the value of existing tokens through burning the supply from generated revenue.

    Proof of Meritocracy

    SwissBorg token holders can participate in choosing the progress and development of the network through the Proof of Meritocracy policy. The CHSB token generates an RSB token, which is a referendum token for users to vote on referendum proposals. Users holding more CHSB will have more voting power. Users will also be rewarded for participating in these referendums in addition to being able to dictate the direction of SwissBorg’s development.

    Proof of meritocracy
    Proof of meritocracy

    Protect and Burn

    The Protect and Burn policy rewards long-term CHSB holders by ordering buyback and burn only when CHSB prices are going down. This is because the traditional buyback mechanisms whereby buybacks are announced in advance, short term speculators could buy the token before the buyback and sell it for a higher price shortly after the buyback when the token supply is lowered. According to SwissBorg, this traditional mechanism does not protect the token and in particular long term token holders, and is contrary to their mission to promote innovation that rewards their loyal community members.

    Every month, SwissBorg will also add 20% of their profits generated from the fees on the Wealth App to a reserve so as to protect the price of the CHSB token. If the price of CHSB arrives as a bearish-zone (using the 20-day moving average as their indicator), SwissBorg will automatically place buy orders for CHSB.

    SwissBorg DAO

    The SwissBorg DAO (Decentralized Autonomous Organization) is the supporting body assisting with the governance of the SwissBorg ecosystem. A DAO is a development in the cryptocurrency and DLT space, which permits a democratic mechanism to run or manage a project on-chain.

    The SwissBorg DAO acts as a unifying bridge between the team and community members, allowing the latter to play an active role in determining the direction of the project and be rewarded for their efforts in CHSB tokens.

    The team has defined different roles for community members to participate as. Here are some of these roles:

    Digital Artist

    A digital artist (more understandably a content creator) is a community member, tasked by the team, to develop arts, pictures, texts, presentations and videos etc. about the SwissBorg project.

    Translator

    A translator is an important member of the community, responsible for translating important documents or articles, related to the SwissBorg project. SwissBorg DAO leverages the power of incentivized multi-cultural participants to get one of the most difficult yet important jobs done. (mva.la)

    Promoter

    A promoter is responsible for spreading the word about the project on various social media platforms. They play an important role in increasing adoption and usage by promoting the project. Thus, also directly enhancing the value of the token.

    Moderator

    A moderator (better understood as an admin on forums and telegram groups) is responsible for regulating the communication on the SwissBorg’s project channels. The various duties include promoting a healthy discussion, removing inappropriate content, modulating the flow of discussion and enforcing group rules.

    Campaigner

    A campaigner (a real-world promoter) is responsible for networking with different people and organizing events, to better promote the project. They may hold group meetings, AMA’s, city meets, etc., to promote development and cohesion of the SwissBorg community.

    Business Introducer

    A business introducer (commonly understood as an ambassador) is a SwissBorg community member, who strives to arrange in-person meetings of the SwissBorg team with prominent influencers, investors, business partners etc.

    Cyber Virtuoso

    A cyber virtuoso (known as a developer) is responsible for developing tools, scripts, softwares etc. to help develop the SwissBorg ecosystem. They may also be tasked with creating step-by-step tutorials and supporting documents for the project.

    SwissBorg Wealth App

    The Wealth App is the principal and smart command-and-control centre of SwissBorg. It allows users to build, monitor, and manage their crypto portfolios, permitting easy and secure wealth management.

    The dashboard is simple but powerful and intuitive, taking the guesswork out of cryptocurrency investing.

    The users can fund their accounts with USD, EUR, GBP, and CHZ. The withdrawals can be made to the local bank of the user’s choosing. Furthermore, a limited number of crypto-assets are supported, in a similar manner to Coinbase, ensuring quality.

    However, new assets are regularly added, if they fit the inclusion criteria. The app is available on both IOS and Android operating systems.

    The smart engine offers users the opportunity to buy crypto-assets at the best rates and lowest slippage, from multiple exchanges. Furthermore, it is AI-powered, offering valuable insights about the investments (history, performance, deposits, withdrawals, etc.), which assists the user in making informed decisions.

    All of these features allow people to employ sophisticated techniques for portfolio management with relative ease.

    SwissBorg Smart Yield

    SwissBorg’s Smart Yield is a feature on its app which allows users to potentially earn passive income through Decentralized Finance (DeFi) and Centralized Finance (CeFi) platforms without much pre-requisite knowledge. The Smart Yield feature works with top platforms such as Compound, Curve Finance, Binance, Aave, and Uniswap.

    SwissBorg’s CHSB Yield 2.0

    SwissBorg’s latest CHSB Yield 2.0 program aims to be a community-centered and sustainable approach to promote the growth of the SwissBorg ecosystem. It has various yield tiers which according to the Team will provide attractive returns for CHSB token holders. Holding more CHSB in the yield program affects your returns. Currently, the lowest tier of holding 0-2k CHSB in their Standard Account generates a maximum of 12.58% yield. Those with the Genesis Premium account type can earn up to 25.17% yield.

    The difference between SwissBorg’s CHSB Yield 2.0 and their Smart Yield program is that Yield 2.0 is paid out of SwissBorg’s own treasury- i.e. an internal transfer. This means that there is no risk of DeFi hacks or impermanent loss (Learn what is Impermenant Loss in our video here). Also, with the reward structure of Yield 2.0, smaller holders benefit from accelerated growth whilst at the same time, larger CHSB token holders are rewarded in the long term.

    Conclusion

    SwissBorg ran one of the most successful fundraises back in 2017 and has delivered a powerful product. SwissBorg solves the major problem of managing wealth and making cryptocurrency investments accessible to everyone.

    The Wealth App offers a one-stop solution for crypto investments, combining deposit, buying, trading, management and withdrawal facilities, all under a clean and minimal interface.

    Moreover, SwissBorg is fully compliant with all relevant regulatory frameworks, which ensures that users can invest and take part in the digital assets field while being certain about the legality.

    The community-based democratic outlook of the team ensures that all members can take part in the evolving ecosystem. The product is currently available in more than 60 countries and with more to come, making it truly global.

    Sign up for SwissBorg with our exclusive link to get FREE CHSB!

    January 1, 2023
  • Top Chart Patterns Every Crypto Trader Should Know

    Top Chart Patterns Every Crypto Trader Should Know

    Chart patterns are an integral aspect of Technical Analysis, but they require some getting used to before they can be used effectively. A chart pattern is a shape within a price chart that helps to suggest what prices might do next, based on what they have done in the past. Chart patterns tend to repeat themselves and can give you a real competitive advantage in the markets if you are able to learn to recognize them.

    The market is constantly changing. In many cases, it does not matter how you feel about it, it only matters how the market is going to feel about it.

    Market sentiment is a critical indicator to predict price movements and make investment decisions. An easy way to gauge market sentiment is by looking at chart patterns. They tend to repeat themselves, and once you are able to recognize them, it becomes easier to strategize your entries and exits.

    However, it is important to note that they are NOT a guarantee that the market will move in that predicted direction. It should only serve as a frame of reference for you to feel how the market moves.

    The most important thing to remember when using chart patterns as part of your technical analysis is that they are not a guarantee that a market will move in that predicted direction, they are merely an indication of what might happen to an asset’s price. Below are some of the most common chart patterns studied by technical analysts as they appear on the Bitcoin/USD chart:

    1. Head and Shoulders

    This is a bullish and bearish reversal pattern that has a large peak in the middle and smaller peaks on either side. The Head and shoulders pattern is considered to be one of the most reliable reversal chart patterns. This pattern is formed when the prices of the stock rise to a peak and fall down to the same level from where they had started rising. Again, the prices rise and form a peak higher than the last peak and again it declines to the original base. Prices again rise to form a third peak, which is lower than the second peak and from here it starts declining to the base level. When the prices break the baseline with volume then a bearish reversal takes place.

    Head and shoulders is a chart pattern in which a large peak has a slightly smaller peak on either side of it. Traders look at head and shoulders patterns to predict a bullish-to-bearish reversal. Typically, the first and third peak will be smaller than the second, but they will all fall back to the same level of support, otherwise known as the ‘neckline’. Once the third peak has fallen back to the level of support, it is likely that it will break out into a bearish downtrend.

    Head and Shoulders
    Head and Shoulders

    2. Double Top

    A double top is a bearish reversal pattern that traders use to highlight trend reversals. The price forms a peak and retrace back to a level of support. It will then climb up once again before reversing back more permanently against the prevailing trend. A double top is a bearish pattern as it signifies the end of an uptrend and a shift towards a downtrend.

    Double Top
    Double Top

    3. Double Bottom

    A double bottom is a bullish reversal pattern that is opposite to the double top. Price forms a peak and then retrace back to a level of resistance. It then forms a peak once more before reversing back from the prevailing trend. A double bottom is a bullish reversal pattern, because it signifies the end of a downtrend and a shift towards an uptrend.

    Double Bottom
    Double Bottom

    4. Wedges

    Wedges are bullish and bearish reversal as well as continuation patterns which are formed by joining two trend lines which converge. There are two types of the wedge, rising and falling. Both rising and falling wedges are reversal patterns, with rising wedges representing a bearish market and falling wedges being more typical of a bullish market.

    • A rising wedge is represented by a trend line caught between two upwardly slanted lines of support and resistance. This pattern generally signals that an asset’s price will eventually decline more permanently, which is demonstrated when it breaks through the support level.
    • A falling wedge occurs between two downwardly sloping levels. This pattern is usually indicative that an asset’s price will rise and break through the level of resistance.
    Wedges
    Wedges

    5. Cup and Handle

    The cup and handle pattern is a bullish continuation pattern that is used to show a period of bearish market sentiment before the overall trend finally continues in a bullish motion. The cup appears similar to a rounding bottom chart pattern. Following the cup, the price of an asset will likely enter a temporary retracement, which is known as the handle because this retracement is confined to two parallel lines on the price graph. The asset will eventually reverse out of the handle and continue with the overall bullish trend.

    Cup and Handle
    Cup and Handle

    6. Pennants

    A pennant pattern or a flag pattern is created when there is a sharp movement in the price either upward or downward. This is followed by a period of consolidation that creates the pennant shape because of the converging lines. Then a breakout movement occurs in the same direction as the big stock move. At the initial stock movement there is a significant volume which is followed by weaker volume in the pennant section and then rise in the volume at the breakout. Pennants can be either bullish or bearish, and they can represent a continuation or a reversal.

    Pennants
    Pennants

    7. Triangles

    Ascending Triangles

    The ascending triangle is a bullish continuation pattern which signifies the continuation of an uptrend. It can be drawn onto charts by placing a horizontal line along the swing highs, which acts as the resistance, and then drawing an ascending trend line along the swing lows, the support. Eventually, the trend breaks through the resistance and the uptrend continues.

    Ascending Triangles
    Ascending Triangles

    Descending Triangles

    Just like the ascending triangle, the descending triangle is also a continuation chart pattern. The only difference is that it is a bearish continuation pattern and it is created during the downtrend. They generally shift lower and break through the support because they are indicative of a market dominated by sellers. Descending triangles can be identified from a horizontal line of support and a downward-sloping line of resistance. Eventually, the trend breaks through the support and the downturn continues.

    Descending Triangles
    Descending Triangles

    Symmetrical Triangles

    Symmetrical Triangles are continuation chart patterns that are developed by two trend lines which converge. The symmetrical triangle pattern can be either bullish or bearish, depending on the market. In either case, it is normally a continuation pattern, which means the market will usually continue in the same direction as the overall trend once the pattern has formed. However, if there is no clear trend before the triangle pattern forms, the market could break out in either direction. This makes symmetrical triangles a bilateral pattern, meaning they are best used in volatile markets where there is no clear indication of which way an asset’s price might move.

    Symmetrical Triangles
    Symmetrical Triangles

    8. Chart Patterns to Identify Market Manipulation

    The “Bart Simpson” Pattern

    When we look at the Bitcoin chart in small time frames, one can identify sudden movements or ‘bump’ in one direction, followed by consolidation and a sudden ‘bump’ in the other direction that ends close to the base price. This phenomenon has given the name “Barts” because the asset’s price pattern looks like the head shape of the iconic Simpsons character, Bart Simpson.

    It is a familiar occurrence for Bitcoin, one noticed by investors time and again during volatile trading stretches. It appears as a result of hundreds-of-Bitcoin orders in a matter of minutes. The reason for these sudden pumps and dumps is likely to liquidate crypto margin traders, whether short or long, by manipulating the market. While some believe that this is done by the exchanges themselves, which is entirely possible due to the lack of regulations, this might be related to large crypto traders, commonly known as ‘whales.’

    Bart Simpson pattern
    Bart Simpson pattern

    Wyckoff Pattern

    The Wyckoff Pattern was first brought to light by Youtuber “Uncomplication” to unearth potential market manipulation by whales. The pattern was developed by Richard Demille Wyckoff, an early 20th-century pioneer in the technical approach to studying the stock market. The pioneering work of Richard D. Wyckoff was centered around the realization that stock price trends were driven primarily by institutional and other large operators who manipulate stock prices in their favor.

    Wyckoff proposed a heuristic device to help understand price movements in individual stocks and the market, which he dubbed the “Composite Man.” Wyckoff advised retail traders to try to play the market game as the Composite Man played it. The Composite Man attracts the public to buy a stock in which he has already accumulated a sizeable amount. Wyckoff and his associates believed that if one could understand the market behavior of the Composite Man, one could identify many trading and investment opportunities early enough to profit from them. Using Wyckoff’s method, one can invest in stocks by capitalizing on the intentions of the large “smart money” interests, rather than being caught on the wrong side of the market. 

    Wyckoff Pattern in Bitcoin
    Wyckoff Pattern in Bitcoin

    The Bottom Line

    Technical analysis can give cryptocurrency traders an insight into the past of crypto, facilitating future predictions. But sole reliance on technical analysis ignores sentiment or news. This is particularly problematic with cryptocurrency trading since factors like mining hash rates and governmental regulations can have significant impacts on the market.

    What is technical analysis?

    Technical analysis is a method of analyzing the price movements of a security or asset over time. It uses charts and other tools to identify patterns and trends in order to make predictions about future price movements.

    How does technical analysis work?

    Technical analysis works by looking at past price movements and using these to predict future price movements. This is done by looking at patterns in the data such as support and resistance levels, trend lines, and chart patterns.

    What are the advantages of using technical analysis?

    Technical analysis can be used to identify potential trading opportunities and to help traders make informed decisions. It can also help traders manage risk by identifying areas where they should exit their positions.

    What is support and resistance?

    Support and resistance are levels on a chart where the price of an asset has difficulty either breaking through or falling below. These levels can be used to identify potential entry and exit points for trades.

    What is a chart pattern?

    A chart pattern is a specific pattern that appears on a chart. Common chart patterns include head and shoulders, double tops and bottoms, and triangles. These patterns can help traders identify potential trading opportunities.

    How can technical analysis be used in cryptocurrency trading?

    Technical analysis can be used to identify potential trading opportunities in the cryptocurrency markets. By looking at past price movements, traders can identify patterns and trends that can be used to make predictions about future price movements.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Crypto Futures Trading with FTX

    Crypto Futures Trading with FTX

    FTX EXCHANGE (INCLUDING FTX INTERNATIONAL AND FTX.US) ARE NO LONGER IN OPERATION

    Both exchanges have filed for bankruptcy. Subsequently, the exchange was “hacked” and more than US$600 million worth of cryptocurrencies drained. The hacker is strongly rumoured to be a former FTX employee. For more about how this story unfolded and the latest news, check out these articles:

    What is futures trading?

    Newcomers to cryptocurrency and digital asset trading must navigate a complex sector filled with acronyms and technical jargon, as well as dozens of ways to trade across multiple exchanges.

    One option newcomers may have heard of, and which they may want to learn more about is futures trading. 

    At first glance, this seems like a complicated way to invest, but the team at exchanges like FTX do their best to make the process as straightforward as possible.

    What are futures?

    Futures are a type of derivative financial contract that creates an obligation for the parties to exchange the asset at a price and date that is predetermined. 

    The buyer is obliged to buy that asset, and the seller has to sell the asset, even if the price of the asset has gone up or down. 

    Think of future trading as a fixed price sale in the future. You agree with someone on a price that is higher or lower than the current price, and then in the future, the sale gets executed at the same agreed price. 

    The underlying assets in the contract can be anything from a set of cryptocurrencies to real estate or any other commodity. The contracts are designed to have a detail of the quantity of the underlying asset, and also help in the execution of the trade on a trading platform. 

    Why is it called futures trading?

    Futures are generally named by the month they expire. For example, a January gold futures contract will expire in January and is based on gold as an underlying asset. Similarly, you can also find contracts for other commodities as well. 

    Traders usually use the term futures broadly for a whole asset class. However, there are multiple futures contracts available based on different assets. These future contracts include: 

    • Commodities such as crude oil, corn, wheat, and so on
    • US bonds, or any other government-backed financial bond
    • Precious commodities like platinum and gold
    • Index futures such as the Dow Jones Industrial Index

    Examples

    A very good example of a contract available on FTX is the Donald Trump 2024 futures contract. 

    This is a contract that allows traders to ‘bet’ whether Donald Trump will return to the White House following the next presidential election in 2024. 

    The contract expires on $1 if former president Donald Trump wins the 2024 election and it expires at $0 if he loses the election. The contract specifically also specifies other scenarios in which the contract expires early, for example, if he decides not to run in the future presidential election. 

    So if anyone invests $100 right now into the contract they will get 1063 positions of the contract which may become worth $1063 if Trump wins, and if he loses the amount would become zero. 

    The leverage used by the futures market is usually high. Leverage is a process in which a buyer can purchase the contract even if they enter it with a fraction of the contract’s value. The buyer only needs to come up with a fraction of the money, while the remainder is put up by the broker. 

    One of the most important things in futures trading is the exchange, where the whole trade gets executed and settled. As futures trading also involves physical exchange, it is important to have a good exchange with a stellar reputation backing up your trade. However, it should be noted most futures contracts are for people who speculate on the trade.

    Difference between options and futures contracts

    For people who are new to futures, it is important to understand there’s a difference between futures and options. An options contract does not put an obligation on the buyer or the seller. In the American way of doing business, it gives them the right to execute the trade before the expiration time, while in Europe the right is given after the expiration time. 

    In a futures contract, the buyer has to take possession of the underlying asset, and subsequently, the seller has to sell him that asset, they can settle for the cash equivalent. However, the trade has to take place. 

    The buyer also has the option of loading off their position any time before the trade expires to get rid of their obligation. This is one thing that is common in options as well as futures trading giving an advantage to the buyer to benefit from the leverage holder’s position before expiration. 

    FTX Exchange

    Hundreds of platforms deal with crypto futures trading, however, traders need to be careful about which one they choose. They need to select a platform based on their preferences. 

    FTX has been one of the most promising entrants in the futures trading domain and has been taking up market share. The platform is slowly gaining a lot of traction and is widely considered to be one of the best platforms for futures trading. So, if you are interested in futures trading, FTX should be considered. 

    FTX was founded by Sam Bankman-Fried in 2019. He is also the founder of Alameda Research, a cryptocurrency, and blockchain research company that creates specialized algorithms for trading cryptocurrency. He is also a high-profile trader and created FTX as a trading platform that specializes in margin trading, futures trading, and leveraged trading. The exchange is backed by Binance, the biggest crypto exchange in the world, in what has been termed as a ‘strategic partnership’.

    The FTX exchange was founded due to the SBF’s quest for a crypto trading platform that had it all from a trader’s perspective. He wanted a trading platform that put traders at the heart of the experience and designed FTX to cater to trader’s every need. 

    Simplicity, security, and abundance of features were made important parts of the FTX core philosophy. Even though the exchange was designed for traders, the UI/UX was kept simple and intuitive, so novices don’t feel overburdened.

    To get started with FTX exchange, check out our FTX Exchange Guide.

    What makes FTX futures different from regular futures?

    The futures trading on FTX is a little different from other exchanges that offer futures contracts. 

    FTX futures are settled using stable coins. The settlements are made using stable coins as collateral and regular crypto cannot be used. This means that the volatility of crypto has no real effect on the users. This also gives the users a USD-based settlement exposure which means that you can use USD as the base currency for all your collateral and contracts, without the need for a bank account. Being in the crypto space also makes it easier for the position to be shifted around.

    To avoid clawbacks, FTX futures has a unique program for providing backstop liquidity. The backstop liquidity is provided to accounts that are about to go bankrupt. This prevents the exchange from clawbacks. 

    Backstop liquidity is the assistance from the exchange that helps in creating a secondary source of funds for liquidity when the primary can’t cover it, in case of a bankruptcy event. It also stops the buyer from making additional payments to the seller in the case, which are called clawbacks.

    The margin calls on the platform are measured and careful which avoids exposure to major price dislocations and huge losses.

    How to post collateral?

    In FTX futures the collateral is based upon stable coins and you do not have the option to post collateral in other cryptocurrencies. The current stable coins that are accepted include TUSD, USDC, and PAX. 

    For you to deposit or withdraw collateral you can go to your wallet on the FTX exchange and deposit USDC, PAX, or TUSD in your wallet. You can deposit them through a credit card or wallet transfer as well. 

    All margins posted on the wallet are in USD in your wallet by default, even if you fund it with stable coins the balance is shown in USD. 

    The collateral has a weight difference for each stable coin, in the case of USD fiat, the weight is kept at 1 meaning you can keep the collateral at the same amount. However for USDT, it is 0.975, for BTC it is 0.95 and for ETH it is 0.9 which means for the collateral to be high you have to have more collateral. This means that for $100 invested in USDT the collateral is at $97.5 while for the equivalent amount in  BTC it is $95.

    You can use the same collateral pool for all of your positions, by default all currencies that include USD, non-USD fiat, stable coins, and some cryptos can be counted as collateral. Cross margin is used for the account as every sub-account has its collateral wallet which is central to that account. Sub-accounts are considered as accounts and each sub-account has its own collateral. If you want isolated margins you would need to create a sub-account for each margin pool.

    How do Futures expire?

    The futures contract expires based on the set date of expiration. For example, a quarter future contract will expire every quarter between 2 am and 3 am UTC. Once the futures contract has expired the collateral amount gets credited into the seller’s account.

    What are perpetual futures?

    Perpetual futures are based on contracts that have no expiration date. The perpetual contracts work hour-wise, with each hour the contract has a funding payment.

    This has a function of keeping the price of perpetual futures according to the index which is underlining it. The price can be kept stable without the position closing down or expiring. 

    How can I trade futures?

    FTX is simple, go to the FTX website and you’ll see the registration page. Simply sign up with the email address you want to create your account with.

    Sign up for FTX
    Sign up for an FTX account

    Once you have opened an account the next thing to do is to add funds to the exchange wallet. Depositing your funds into the FTX exchange can be done either through connecting it with an existing crypto wallet or you can deposit funds directly through using a credit card or a debit card.

    Deposit to FTX
    Deposit to FTX

    Once your funds have been deposited you can go to the ‘Markets’ tab on the front page:

    FTX markets
    FTX markets

    In the ‘markets’ tab, you would get the following view, where you can see different futures contracts listed. The FTX exchange offers the largest collection of altcoins futures in the business. 

    FTX markets page
    FTX markets page

    You can also see the timed futures, for example, December expiration futures, as well as perpetual futures in the list as well. 

    The exchange also offers futures on US-based stocks and commodities as well.

    FTX US stocks and commodities futures
    FTX US stocks and commodities futures

    Once you have decided you want to trade a future, you select the future you want to trade and you get taken to the console. The console looks something like this:

    FTX trade console
    FTX trade console

    At the middle of the console you can look at the trading window which has the graphs displayed. 

    The top right corner shows you the index details as well as the price of the futures contract, along with its expiration. The bottom right shows you details of the collateral you have available, and the leverage can also be set from there as well. 


    Coming down from the console you can come to the order book as well as the order execution tab and the market trades tab:

    FTX order book
    FTX order book

    The console of the futures tab is designed with professional traders in mind; the console has each functionality that a trader would require. 

    The traders can monitor the price through the grid as well as make reference lines on the console as well. You can also add a variety of indicators to the console. The index price shows you the average of all the exchanges in the area, it also shows you different details as well.

    Below the console window, you can take a look at the current positions you have in the market as well as the previous positions you have had.

    The futures trades can be made through the console easily by keeping the collateral in your wallets. Once you have the collateral you can start trading futures through the exchange easily. 

    Conclusion

    Hopefully, this guide has given you an insight into the world of futures trading and gives you an oversight of how traders can and do use this method to make money on digital asset markets.

    FTX is a great place to trade futures and to learn more about this exciting sector of digital asset trading, offering users a simple and easy-to-understand interface.

    As with all investments, people should take care and ensure they have an appropriate trading risk mitigation strategy in place to manage their portfolios. Always make sure you never invest more than you can afford to lose. The cryptocurrency markets are by their very nature extremely volatile, with prices moving much more sharply than traditional markets, both up and down. 

    Check out our other FTX guides

    Frequently asked questions

    Are there any fees for futures trading on FTX exchange?

    FTX uses a tiered fee structure for futures trading which starts at 0.020% for maker fees and 0.070% for taker fees. Frequent traders can get discounted trading fees up to 0.00% and 0.04% for maker and taker fees respectively.

    Can you trade crypto futures as a United States resident?

    This depends on the policies of each cryptocurrency exchange, but generally, residents of the United States are not permitted to trade crypto futures. A few exceptions are the Chicago Mercantile Exchange (CME) and the Cboe Options Exchange.

    Is crypto futures trading safe?

    Trading in crypto or Bitcoin futures, or even cryptocurrency trading generally involves risks. One notable risk is the inherent volatility of cryptocurrency prices which can fluctuate greatly on a daily basis. Combined with leverage trading, this can hugely amplify any losses you may suffer if the market does not go in the way you anticipated.

    How can you mitigate risks in crypto futures trading?

    Some traders use stop-loss or take-profit levels. These will close trades that are losses or before the market trend changes. These can help traders because it works automatically, so the trader does not need to be at their computer.

    Another way to mitigate risks in crypto futures trading is avoiding emotional trading. For example, some traders feel FOMO (Fear of Missing Out) or revenge trade by “doubling down” when making a loss in an effort to minimise the loss. Emotional trading can in fact lead to further losses because it is not well thought out and researched.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Derivatives Trading with FTX Exchange: Ultimate Guide

    Derivatives Trading with FTX Exchange: Ultimate Guide

    FTX EXCHANGE (INCLUDING FTX INTERNATIONAL AND FTX.US) ARE NO LONGER IN OPERATION

    Both exchanges have filed for bankruptcy. Subsequently, the exchange was “hacked” and more than US$600 million worth of cryptocurrencies drained. The hacker is strongly rumoured to be a former FTX employee. For more about how this story unfolded and the latest news, check out these articles:

    Derivatives Trading is a lucrative market, it is estimated to be worth more than $1 quadrillion all over the world according to Investopedia. This insane valuation is possible because derivatives are available for every type of asset in the world, you have derivatives for stocks, commodities, physical assets, and even cryptocurrency. 

    According to Investopedia, the size is almost 10 times that of the gross domestic product of the entire world. It is important to understand that the notional value and the actual value of the derivatives market are two different things, which can explain such a high valuation.  

    What is Derivatives Trading?

    Diving into the cryptocurrency world can be overwhelming. You are immediately faced with an insurmountable wall of options and information on different types of trades. Each trade may or may not eventually make you money, however, each type of trade has its learning curve, complexities, and barriers to entry. 

    Newcomers may have heard about derivatives trading as a very good way of making money, and they might be curious about derivatives trading as an option to do this. However, as with anything, it is important to make sure you understand the basics first and ensure you have appropriate risk mitigation strategies in place if you do decide to invest.

    This article aims to set out how to learn about derivatives trading, and provides derivatives on FTX Exchange as an example.

    What are Derivatives?

    Derivatives, simply put, is a contract between two parties, the contract is based on an underlying asset which can be anything but. In the traditional sense, it is either a stock or a commodity. Derivatives are popular in the crypto market as well, as more and more traders emerge themselves in all that the flourishing market has to offer. 

    A derivative is not a type of trade rather it is a collection of a few trades. For example future contracts, swaps, options, and warrants, all of which are based upon a contract of an underlying asset. In derivatives trading, the contract is really important, and it is widely used by traders all around the world to hedge risk and commensurate rewards.

    Further details about derivatives

    You can think of derivatives as a secondary asset that represents a contract on the primary asset, so it is directly linked to the value of the primary asset which is called the underlying asset. 

    This may sound jumbled up and complex, however, derivatives are an advanced investing option usually used by experienced traders. 

    Derivatives have two main classes, namely: lock and options. The lock class is made up of swaps, futures, and forward contracts, these contracts are called lock contracts because the parties are locked in the contract up until the life of the contract expires. 

    For example, if a person specifies they will buy or sell a futures contract they have to buy it or sell it at the end of the expiration period. In the options class the holder has the right to buy or sell the asset as specified in the contract, but he is not obligated to do so. Meaning the buyer can hold off on buying the asset and only give the money that he is owed and the seller can also opt to not sell the underlying asset.

    Futures contracts

    Futures contracts are a type of derivatives trade in which the price of the underlying asset affects the contract. It is a contract, as the name suggests, in which the seller and the buyer sign a contract to exchange the asset at a predetermined date with a predetermined price that is set somewhere in the future. 

    Future contracts are based on the expiration date generally, for example, in stocks, future contracts are known based on the month they expire in. Futures contracts are also available for stocks, cryptos, and commodities.

    Equity options

    Equity options derive their value from the underlying stock, the equity options work on two types of trades: calls and puts. Call options are the type of trade in which the holder of the option has the right to buy the asset at a strike price (preset price) and also a time both of which are preset in the contract. In the Put option, the seller has the right to sell the asset on a price and date that is specified in the contract.

    Example of equity options

    It is really easy to understand how options work. For example, a trader anticipates a fall in the price of bitcoin so what he does is that he sells ‘put’ options for the asset to be sold at a certain price, which may be the price before the fall.

    The trader now has a hedge against the fall of the price, if at the time of expiration of the contract the price of the asset has dwindled further he does not lose money, thus creating a very comfortable space for him.

    Differences between options and futures contracts

    For people who are new to futures, it is important to understand there is a difference between futures and options. An options contract does not put an obligation on the buyer or the seller. In the American way of doing business, it gives them the right to execute the trade before the expiration time, while in Europe the right is given after the expiration time. 

    In a futures contract, the buyer has to take possession of the underlying asset, and subsequently, the seller has to sell him that asset, they can settle for the cash equivalent. However, the trade has to take place. 

    The buyer also has the option of loading off their position any time before the trade expires to get rid of their obligation. This is one thing that is common in options as well as futures trading giving an advantage to the buyer to benefit from the leverage holder’s position before expiration.

    FTX Exchange

    There are more than 1,000 crypto exchanges globally, each trying hard to break in and flip the market over its head and acquire a lot of customers. Yet only a select few have succeeded in the endeavor. 

    FTX has been one of the most promising exchanges, the exchange has in a very short time become the ‘go-to’ for professional traders, as it offers options other exchanges cannot. 

    As a result, it is one of the biggest derivative trading platforms for crypto in the world. It is highly recommended by crypto traders that have been working for a long time in the field. 

    FTX was founded by Sam Bankman-Fried in 2019. He is also the founder of Alameda Research, a cryptocurrency, and blockchain research company that creates specialized algorithms for trading cryptocurrency. 

    Learn how to get started with our FTX Exchange Guide.

    How to trade Derivatives on FTX Exchange

    As have previously published guides on how to add cryptocurrency in your wallet on FTX exchange, you can check it out over here. You would need cryptocurrency in your wallet to post collateral for futures so make sure you add some cryptocurrency to your wallet. 

    To trade futures on FTX you would first need to go to the markets tab at the top of the platform’s home page. 

    FTX markets tab
    FTX markets tab

    Once you have reached there you would be able to see the futures section, where several contracts would already be listed.

    FTX futures contracts
    FTX futures contracts

    In the section, you would be able to see almost all kinds of details about the futures, their expiration, price, trading volume, and the change in their value over the day as well. Along with crypto, you can also deal in futures contracts of US-based stocks and also some commodities as well.

    Once you choose the type of future you want to trade, you are taken to the console which has almost all the information one needs to trade the future.

    FTX futures console
    FTX futures console

    In the middle of the console, you can look at the trading window which has the graphs displayed. 

    The top right corner shows you the index details as well as the price of the futures contract, along with its expiration. The bottom right shows you details of the collateral you have available, and the leverage can also be set from there as well. 


    Coming down from the console you can come to the order book as well as the order execution tab and the market trades tab:

    FTX order execution and markets tab
    FTX order execution and markets tab

    Futures are a type of trade that is very complex thus requiring a lot of information on the console screen for traders to make a decision. Thus while the console may look clustered it is functional. 

    At the bottom of the console is the history book, where you can take a look at different positions you have had and the ones currently you are in. The data gives you a summary of the performance over time.

    The futures trades can be made through the console easily by keeping the collateral in your wallets. Once you have the collateral you can start trading futures through the exchange easily. 

    Trading options

    Options are traded just like futures on the exchange, a topic that has already been covered on the website. You can either go long or short on a particular contract and the settlement is made at the end equal to the expiration price.

    Expiration of Contract

    FTX’s options are usually settled in USD, it is important to note that on FTX the price of a particular cryptocurrency is based on the FTX crypto index’s average at any time one hour before expiration. This is a common practice to beat volatility in the market. 

    Let’s just assume you short sell two options of BTC each priced at around $300, now the BTC expiration price according to the contract is $35,200. That means that your option is worth $200. 

    Your option gives you the right to buy BTC at $35,000. Now, if the contract expires as such, after expiration you will have essentially a profit of $400 based on your holdings, which means that the $200 above the price of the BTC translates to the $400 profit that you will get at the end.  

    Buying and selling options on FTX

    To trade options on FTX exchange you first need to go to the Options section of the platform. The options can be curated based on the requirements you set.

    FTX options section
    FTX options section

    You can create an option based on your requirements and request a quote on the platform which is the most common way of buying options. 

    There are many people on the platform checking the requests and within 10 seconds you might find a responder to your bid. Then it is up to you to accept, as soon as you accept the quote the contract starts. 

    You can look at the requests you have opened in the ‘My Requests’ section. 

    Quoting Options on FTX

    Quoting is also really simple, you can look at the requests for quotes posted by people on the platform, you can take a look at the requirements set by them and give them a quote. Whichever quote is a better deal would be shown to the person who makes the request. 

    It is important to note that you have no idea if the person posting the request is buying or selling, you have to provide a quotation for both scenarios.

    You can see the requests for quotes in the ‘All Requests’ section.

    Conclusion

    As discussed, FTX was founded as a tool for crypto traders who didn’t have a lot of options to start trading with. Over time the exchange has developed a curated set of options for its customers. 

    The platform is very stable with a  focus on simplicity and minimalism, nothing on the platform is without a purpose. The simplicity makes it very easier for people to start trading on FTX. 

    However, it should be pointed out that futures and options trading are advanced levels of investing and require lots of research, reading, and learning before starting to invest. 

    It is a good way of hedging your risks in the market, however, you should only trade at the start with the money you can afford to lose, reckless investing is not the way to go about it. Hopefully, this guide will help you get started on your crypto trading journey. 

    Check out our other FTX guides

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • How to save money on crypto exchange fees

    How to save money on crypto exchange fees

    Fees are an unavoidable part of cryptocurrency trading- or are they? Charged by cryptocurrency exchanges on each trade or transaction on their platform, these fees can add up to quite a substantial amount, especially during the bull market when people are actively trading. Therefore, people are eager to find any way to save money on cryptocurrency trading fees, and to maintain competitiveness, many exchanges do offer discounts or perks for their loyal customers. In this article, we take a look at some of the ways in which you can lower or even have no trading fees, and the discounts offered by some cryptocurrency exchanges.

    What are crypto exchange fees?

    Cryptocurrency exchanges charge customers fees for transactions or trades done on their exchange. Some types of crypto exchange fees include:

    Deposit/withdrawal fees

    Exchanges are basically a platform for customers to trade cryptocurrencies, so they would need to deposit or withdraw cryptocurrency to the exchange platform in order to use it. Exchanges charge a fee when customers deposit or withdraw cryptocurrencies onto or from their platform.

    Trading fees

    This is charged by exchanges whenever cryptocurrencies are converted to other cryptocurrencies or fiat, and vice versa.

    Most popular exchanges such as Binance charge trading fees based on a maker/taker structure with taker fees being higher than maker fees. Takers are when the user places an order that is able to trade immediately (whether partially or fully) before it enters the order books. They are known as “takers” because they “take” volume from the order books. On the other hand, maker fees are charged when the user places an order that goes onto the order book (whether fully or partially) i.e. “making” the market.

    Interest/Borrowing/Liquidation Fees 

    These fees are charged when users are involved in margin trading i.e. borrowing funds to increase your position. The amount of these fees usually depends on the amount borrowed on margin together with an interest rate. Margin trading however is very risky, and one of the reasons for this is because if the trade does not go your way you would become liquidated. When this happens exchanges also charge a liquidation fee.

    VIP programs

    Exchanges usually offer exchange fee discounts for their frequent users. This is usually based on a VIP tier structure where frequent users (based on their trading volume over 30 days) can qualify for higher VIP tiers which entitle them to cheaper fees. The requirements for the VIP tiers and discounts offered differ between exchanges.

    Binance’s VIP program requires users to have a certain trade volume over 30 days and have a specified balance of their native token known as Binance Coin (BNB). For the first VIP tier, users must have a trading volume of 50 BTC or more and hold 50 BNB or more. Check here for more details.

    Binance VIP tiers
    Binance VIP tiers (Image credit: Binance)

    Coinbase does not have a VIP program. However, Coinbase charges a fee for withdrawing from their platform and for transactions. The fees are calculated based on several factors such as the payment method, size of order and market conditions etc. The amount of such fees will be disclosed at the time of the transaction. Learn more about Coinbase fees and how you can avoid them.

    Kraken does not publicise their VIP program but users can email them to enquire about their Account Management services.

    Exchange token discounts

    Many exchanges have their own native token, and holding their token entitles users to discounts.

    Binance Token (BNB) is Binance’s native token. Binance allows users to pay for trading fees using BNB, and by doing so users can get 25% off both trading and margin trading fees, and 10% off futures trading fees.

    Woo X for instance also has their native WOO token. Users can enjoy discounts on maker/taker fees by holding as little as 300 WOO tokens, and only 1,800 WOO tokens are required to reach 0% maker and taker fees. The WOO token can also be used for yield farming and as collateral for borrowing and lending on various DeFi platforms. Click here for more details.

    Both Coinbase and Kraken do not have their own native token.

    Discounts for staking exchange tokens

    Some exchanges allow users to stake the native token i.e. to lock the token up for a specified period in return for additional rewards. Some rewards include fee discounts, additional tokens (i.e. yields), increased airdrop rewards and the ability to participate in the exchange’s initial exchange offerings (IEOs).

    Binance also allows users to stake their BNB in their Vault in return for BNB yields. Whilst there are no direct perks for staking BNB, as mentioned previously Binance users get 25% off trading fees when they pay with BNB.

    WOO X users are required to stake their WOO tokens in order to enjoy the trading fee discounts mentioned in the previous section. Other rewards for staking include eligibility for airdrops.

    Neither Coinbase or Kraken offers staking in their exchange token.

    Conclusion

    Cryptocurrency exchange fees can add up especially when you are a heavy user. With the many exchanges out there, competition is fierce to attract users since they make money on each transaction you do. One of the major ways to do this is to offer discounts on fees for using the exchange. Most, if not all cryptocurrency exchanges offer discounts simply for frequent or high volume users with tiered VIP programs. Exchanges such as Binance are more creative, utilising their native token or having staking programs which boost users’ rewards. At the end of the day, the rewards offered are only one aspect to consider when deciding which exchange to choose, other factors include the number of cryptocurrencies supported and security etc. Intended users, especially those from the US, should also check carefully as some exchanges may have features that are not available to US citizens.

    Further reading

    Coinbase Fees-How to avoid them

    Coinbase Review

    Binance Exchange Review

    Tips and tricks to save on your Ethereum gas fees

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.