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Bitcoin & Cryptocurrency Risk Warning – Please Read

Last updated: 21st January 2020 While Bitcoin and other cryptocurrencies are unregulated at present, it’s ability to be spent on goods and services like money, and be traded like a commodity makes it a curious thing. From personal experience with a small amount of bitcoin, it is very easy to make as well as lose your bitcoin in an instant, whether through a misunderstanding of how wallets work, sending bitcoin to the wrong address, losing it with a third party, or bad bad trading choices. So as is best practice around the advertising and promotion of financial products, Please read

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3. risk warning

Last updated: 21st January 2020

While Bitcoin and other cryptocurrencies are unregulated at present, it’s ability to be spent on goods and services like money, and be traded like a commodity makes it a curious thing. From personal experience with a small amount of bitcoin, it is very easy to make as well as lose your bitcoin in an instant, whether through a misunderstanding of how wallets work, sending bitcoin to the wrong address, losing it with a third party, or bad bad trading choices. So as is best practice around the advertising and promotion of financial products, Please read this this plain English risk warning.

Before you start, read the official consumer warning from the European Central Bank about Bitcoin (from 2013).

Risk warning for normal bitcoin users/consumers
Bitcoin is a relatively anonymous electronic currency-like thingie which is bedding into the internet as a way to send an equivalent value of money, anywhere in the world to another bitcoin user, without going through the financial system. If you have bitcoin, the euro equivalent (fiat) value will fluctuate all over the place. When purchasing through a website, it will usually “lock down” a price and give you some time to send a transaction. While the transaction flashes across the internet quickly, the bitcoin network will need to confirm it several times before the payment at the other end is released to the merchant. So unlike money, there is a bit of a time lag, but this is normal enough. It can vary from less than an hour to several hours, depending on how quickly blocks are being mined. While most companies offering bitcoin are normal trading companies, and their goods and services covered by normal consumer law, it is a wild west out there on the internet, so remember Caveat Emptor and use your head. If it seems dodgy and feels dodgy, it probably is. So a little research about any product or service you choose is essential before spending for reviews can help you. Do they have contact details or are they completely anonymous? Are they offering ridiculous things to you, in return for you sending them some of your hard earned bitcoin? But once informed and armed with your bitcoins, you can shop at an increasing number of online stores, with no sign of it slowing down.

Risk warning for bitcoin gamblers
There are many unregulated or unlicensed bitcoin gambling operations online, based in far flung places. If you do choose to gamble, only gamble what you can afford to lose completely. Remember the house always wins, and while many sites are or claim to be “provably fair”, you’ll still probably lose it to the house. Bitcoin’s anonymous nature also can be a way to hide a gambling problem showing up on a credit card, so if you feel like you are having a problem, please pause, ask yourself if it’s getting out of hand, or visit http://gambleaware.ie/ to find out how to deal with problem gambling. Any credible operator should honour a request asking them to close your account if it is in relation to this. Bitcoin gambling is a bit of fun, but it’s still monopoly money, not real cash in the Irish law, and you can’t buy a pint of milk with it, and it’s definitely not worth losing your house, job or relationship over.

Risk warning for bitcoin sellers
If you are selling bitcoins to a third party or exchange, be very careful about what payment methods you accept. Any transaction done with paypal, credit cards, debit cards or other reversible payment systems carry huge risk, unless you trust the person and/or they are personally known to you. There are many cases of people who have entered into an agreement to sell bitcoin to someone online, who has sent the payment by paypal first, receive the bitcoins, and then chargeback the payment. This can leave you out of pocket of your bitcoins and money. So do your homework when selling, and don’t leave yourself open to this. Also do your own research on any exchanges or trading software you choose to use.

Risk warning for bitcoin investors
The exact same risk with any regulated financial instrument such as shares or derivatives. Bitcoin trading comes with highrisk of losing your invested capital, up to and including a total loss. Bitcoin values can fluctuate all over the place, and it’s not uncommon for the value to swing by 25% in response to macro-economic factors. You have none of the fallback options that other products have, so trade carefully with a fund that you can afford to lose completely, if all goes to hell. Bitcoins are not suitable for all investors. Make sure that you fully understand the risks, capital gains tax liabilities and other concerns about working with Bitcoin. Also, unlike other things which have can fluctuate in some sort of coherent pattern, previous history has completely no impact on what’s going to happen next. A huge amount of bots and humans are making decisions across the world, and a price fluctuation to one exchange can rapidly cause others to follow suit. Arbitrage is also difficult unless you have money on several exchanges, as the network transmission speed can mean lodging funds into or out of exchanges can let you miss the boat. Finally, security around your bitcoin keys is very important. Be wary of online services, and with wallets that don’t let you control your keys. We recommend using a suitable hardware, physical or paper wallet backup, and if doing a paper backup make sure to laminate it to ensure that it stands the test of time.

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Source: https://bitcoinsinireland.com/bitcoin-risk-warning-please-read/

Blockchain

Here’s how Options traders can take advantage of Bitcoin’s window

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It is exciting to see market sentiments in a volatile crypto-environment. The past couple of weeks, for instance, have seen Bitcoin and most altcoins at their bullish best. However, the aforementioned period has also seen these assets face a steady stream of drawdowns.

Consider this – Bitcoin is currently undergoing corrections and a mixed response should have been expected from traders. Alas, that hasn’t been the case.

Are traders too bullish at the moment?

Source: Skew

Put/Call Ratios today touched a level of Open Interest last seen back in early January. At the time, it was a key bullish signal, one which led Bitcoin all the way to $42k by mid-February.

It can be a bullish signal this time too. It might help Bitcoin break the $42k barrier once again, an essential range to recover in terms of market structure.

Source: Skew

Bitcoin Options Open Interest were resoundingly bullish, with call buys dominating both short-term and long-term expiries. Here, it’s worth paying attention to the 297 BTC expiring tomorrow at $40,000.

Does Options Interest matter that much?

A clearer picture in that regard can be underlined by Deribit’s recent Institutional newsletter. According to Deribit, the total turnover was $40.4 billion in July, 24% lower than the turnover in June 2021. Total Options turnover also dropped by 23%, registering a figure of $14.6 billion.

Source: Deribit

The letter added,

“295,920 BTC and 1,991,591 ETH options contracts were traded in July 2021, down 25% and 8% versus June 2021.”

Back in July, Bitcoin was consolidating between $35000 and $30000 until the last week, when a bullish breakout unfolded.

 But, has Bitcoin confirmed a rally yet?

Source: TradingView

Rallying and confirming a bull rally can be considered two different things, technically. One has more direction than the other. For example, a bull rally can be close to being confirmed once Bitcoin closes above $42,000 on the daily chart. It isn’t doing so right now but still, it is rallying somewhat, right?

But, a ‘rally’ might not be the reason why Options traders are so bullish. It might just be a strategy.

The Bull-Call Spread and its limited action

Now, a bull-call spread is an Options strategy that takes advantage of a limited increase in an asset’s value. Traders set up two Options where one is a Call Option at a lower strike price and a Sell Option at an upper strike price. Here, both are meant to expire on the same date. It is a reduced risk strategy that caps gains, but limits massive losses. Without getting into the technicals, here is how it works.

Bring those 297 BTCs expiring with a strike price of $40,000 on 5 August into play. Now, the play here would be to set another Sell Option at the strike price of $41,000. Now, if BTC touches $40,000 and goes beyond, the trader would sell a Call Option at a higher strike price that has the same expiration date as the first Call Option and collect the premium.

If the price of Bitcoin does not go above $40,000, then the Options strategy expires worthlessly and the investor loses the net premium paid at the onset. But, it is limited since there are two opposing contracts at play.

Moral Point?

If that bit of information got a little dizzy, then here is the shorter version – There is a possibility that traders are bullish on Bitcoin for a limited time period to cover the bullish spread. Bitcoin is in play for them, but they are acting in particularly bullish windows.

Hence, Bitcoin Options traders might not be overly bullish, just momentarily.

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Source: https://ambcrypto.com/heres-how-options-traders-can-take-advantage-of-bitcoins-window

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Blockchain

Why it’s best Cardano’s traders remain on the lookout

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Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice

While some altcoins have been quite volatile over the week due to Bitcoin’s hike above $42,000 and its subsequent retracement, the same cannot be said for Cardano.

Broader market cues did not seem to have a drastic effect on ADA’s price as it remained gridlocked between the strong resistance of $1.38-$1.40 and support at $1.25. However, tracking its movement since 19 May highlighted the formation of a pennant and a potential swing could be in store over the coming week. The question is – In which direction?

Cardano Daily Chart

Source: ADA/USD, TradingView

Since the 19 May sell-off, Cardano has formed four higher lows at $1.95, $1.86, $1.49, and $1.38. An upper sloping trendline was used to plot these points on the charts. Similarly, a lower trendline was plotted along the slightly higher lows of $0.95, $1.0, and $1.02.

This created a pennant pattern which indicated two possible outcomes going forward.

Bullish Outcome 

Let’s discuss a bullish outcome first since this seemed achievable with one simple development. Buyers need to target a hike above the $1.38-$1.40 resistance – A result that could trigger a near 40% surge in value towards the highest point in ADA’s pattern at $1.88. Excited? Well, it wouldn’t be that plain and simple.

This scenario would require ADA to close above its weekly 20-SMA (red) (not shown) which has run bearish since 5 July. Moreover, the Visible Range noted a decent number of sellers at ADA’s aforementioned resistance zone.

Bearish Outcome

Quite a few developments need to take place for this result. For starters, ADA would need to drop below its daily 200-SMA (green) and Visible Range’s POC at $1.21. Ideally, ADA would find support at the higher low at $1.05, but a close below this level might lead to a sharp sell-off in the market. The 23 April swing low of $0.92 would be in focus in such a situation.

Winner?

At press time, the buyers were at an advantage. The RSI was above 60 – A sign of bullish strength in the market. The Squeeze Momentum Indicator noted upwards pressure, while the MACD maintained its northbound trajectory, albeit with some choppy movement. However, the indicators had not yet matured to levels to indicate a clear winner in this battle.

Conclusion

ADA did flash positive signals as it traded close to the resistance zone of $1.38-$1.40. Traders should be on the lookout for a break above or below key levels to ascertain ADA’s next destination over the coming weeks.

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Source: https://ambcrypto.com/why-its-best-cardanos-traders-remain-on-the-lookout

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Indian Olympic Medal Winners to Get Free Bitcoin (BTC) and Ethereum (ETH)

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The cryptocurrency platform Bitbns intends to open a systematic investment plan (SIP) in digital assets for Indian athletes who win medals at the ongoing Tokyo Olympics. The exchange will reportedly grant around $2,700 in crypto for gold medal winners.

‘Faster, Higher, Stronger’ And Earn Crypto

The Economic Times reported that Indian athletes at the Olympic Games could receive cryptocurrencies as a gift if they manage to win a medal at the tournament in Tokyo.

The trading venue that will reportedly provide the offer is Bitbns. The first athletes that can get cryptocurrency exposure for free are the winners Mirabai Chanu and PV Sindhu. The former won a silver medal in 49 kg women’s weightlifting while the latter acquired bronze in the women’s singles badminton at the Tokyo Olympics.

Bitbns plans to roll out a SIP account and grant nearly $2,700 in digital assets for Olympic champions, $1,350 for silver medal winners, and $675 for bronze medalists. It will transfer the amount into their accounts, and after completing the Know Your Customer (KYC) norms, the athletes will have exposure to cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).

The trading venue explained that it would structure the SIP for a 3-5 year period, and thus the medal winners will be able to generate profits in the long term through Bitbns. Gaurav Dahake – the Chief Executive Officer at the platform – noted:


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“Bitcoin and Ethereum have been the best-performing assets in the last decade, and have given exceptional returns and we aim to get our winners indulge in this rewarding journey.”

Indians Love Cryptocurrencies

According to a recent research, Indian residents increased their digital asset investments from $200 million in 2020 to $40 billion for the first six months of this year, indicating that their appetite for cryptocurrencies surged significantly.

What is even more impressive is that Indians, who are well-known gold admirers, started switching their investment strategies from the precious metal to virtual currencies. A local investor explained:

“I would rather put my money in crypto than gold. Crypto is more transparent than gold or assets and yields higher returns in a shorter period of time.”

The survey added that the number of people who trade cryptocurrencies in India is 15 million. It significantly surpasses a well-developed country such as the UK, for example, where 2.3 million individuals have entered the market. Sandeep Goenka – the co-founder of the platform ZebPay – revealed the reasons why the second-most populated country saw this massive increase:

“They find it easier to invest in crypto than gold because the process is so much simpler. You go online, you can buy crypto, you don’t have to verify it, unlike gold.”

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Source: https://cryptopotato.com/indian-olympic-medal-winners-to-get-free-bitcoin-btc-and-ethereum-eth/

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