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Blockchain

DeFi – Why Bitcoin’s Decentralized Financial System is Important for Human Rights?

Since the inception of Blockchain, Bitcoin, and related technological architectures, the focal area mostly has been around financial services, medical and healthcare industry, logistics, and transportation industry. But one may see it as focusing just on the short-term and neglecting the long-term alterations which may pop-up on the ground. Such technologies will surely aid numerous […]

The post DeFi – Why Bitcoin’s Decentralized Financial System is Important for Human Rights? appeared first on PrimaFelicitas.

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Since the inception of Blockchain, Bitcoin, and related technological architectures, the focal area mostly has been around financial services, medical and healthcare industry, logistics, and transportation industry. But one may see it as focusing just on the short-term and neglecting the long-term alterations which may pop-up on the ground. Such technologies will surely aid numerous industries, but in the long-term, people across the world are the one’s who would be employing it. So, in a crux, human beings would benefit if one tries and scrutinize from a macro-level perspective. Make no mistake, the aid to humans would be observable only if the algorithms would be written in a specific manner, and humans would use it thinking it to be of some assistance.

The global hub for Bitcoin – USA or Europe?

Since the
industrial revolution, there has been a close competition between the United
States of America and Europe. Starting with automobile innovation and military
power among others, and then coming to technological innovations. Both the
nations have been seen as the 1st and 2nd top students in
a class (metaphorically speaking). Similarly, there has been a cut-throat
competition with regards to developing Blockchain and Bitcoin tools and
frameworks. Just like the Silicon Valley of USA, Malta, located at Southern
Eastern Europe is said to among few Bitcoin hubs in Europe. With GDPR being deployed on the ground a few years ago, some
may perceive Europe to be one step ahead of the USA at the moment. But one
never knows what may happen tomorrow. The best thing to do is to keep one’s fingers
crossed and hope for the best.

Regulatory patterns with DeFi being kept in the background.

Pattern finding
and recognition have become somewhat a necessity to examine and forecast
forthcoming potential scenarios. Medical, logistics, and financial services
industries have experienced a small fraction of the technology in the past few
years. But as the architecture is new, regular input is crucial for machine
learning, neural networking and similar technologies to showcase maximum yield
at the end of the day. Considering policy making and regulating, and legal
structure as a whole, the alterations w.r.t DeFi should be altered immediately.
As transactions could be done anywhere across the world, and higher usage is
being observed because of an increase in trust factor (among others), policymakers and DeFi developers should together design, build, and implement laws
according to every nation. To overcome the illicit dealings happening across online channels (also sometimes
referred to as the dark web), the focal point must be pattern finding,
recognition, and modifying according to a scenario and nation as well.

Increase in Robustness of Decentralized Frameworks in ambiguous scenarios.

With more
developers and users entering the decentralized frameworks, interoperability
and adaptability while keeping the data/money secure be of utmost necessity. Such
a feast may take a few experiments before experiencing the desired output. Due
to cost-effectiveness and more technical experts in the market today, a higher
number of potential prototypes are being developed in short intervals. For
robustness to get heightened in DeFi’s architecture, one will need to first understand thoroughly its
building blocks. Just like the internet protocol suite, DeFi also uses a
multi-layered framework, which encompasses:

  1. The
    Settlement Layer
  2. The
    Asset Layer
  3. The
    Protocol Layer
  4. The
    Application Layer
  5. The
    Aggregation Layer

It might seem
obvious that each layer in interconnected for completing a specific task. In
this piece of research, a macrolevel description is shown through a diagram
about the interrelation between developers, merchants, bitcoin grid, exchange
platforms, and the rest of the variables that help the decentralized framework
operate swiftly and with utmost precision.

Digital Asset Market.

A digital asset consists of a lot of variables like:

The market for
digital assets came into notice after social media platforms (mostly which are
used across the world), i.e. around 2009.

But when it comes
down to evaluation from a venture capitalist’s perspective, there’s a lot of
uncertainty among those building it, offering it, and using it as well. The
principal value of an asset is the current value of payoffs including the
complete available appropriate information. As DeFi is decentralized, and not
managed by an authority, it’s value changes with time. That is one factor of
uncertainty among people in the DeFi ecosystem. Cybersecurity and
crypto-economics and relatable variables are gradually picking up the pace in
narrowing down the fear of uncertainty.

Can Social Bitcoin sustain a Democratic Digital World?

Intermixing
Bitcoin, Sociology could seem to be a fascinating idea at the face value, but
until it’s not implemented and experimented on small clusters, it too soon to
tell whether a social Bitcoin could sustain a Democratic digital world. If one
delves into and examines the sociological patterns financially in different
centuries, there’s a narrow hope. But if similar concepts are applied with an
appropriate mindset from people building and those using it, then there might
be a lot of hope in the coming times.

One big benefit of using Bitcoin with sociology kept in mind at the back is that the
whole ecosystem works including micromanagement and micromanagement as well. Unlike
a centralized environment, a decentralized ecosystem modifies when required. It
doesn’t wait until everything is at the tip of a breakdown. Besides that,
developers and venture capitalists operate simultaneously, meaning, if a
cluster of developers built an application that surpasses others, the
developers receive some form of incentive/bonus which helps in building more productive
tools in the future. Such a scenario might not be visible with clarity because
of complications in the regulations, policies, and the overall functioning of a
centralized framework. A multi-dimensional financial system is one potential
approach to resolving the financial mess may nations are experiencing (according to this piece of research). Some portion of the worldwide population are
preferring to use digital currencies than currencies in physical form.

Concluding
Remarks:

After going
through the current scenario in nations where a major focus is given on
R&D, scrutinizing from the market’s point-of-view, seeing how to intensify
the robustness, and finally examining if a social Bitcoin could sustain the
digital world, it might be appropriate to say a lot of trial-and-error’s need
to happen before finalizing it. Even after finalizing it, one shouldn’t be
hesitant to build a fresh architecture from scratch.

The post DeFi – Why Bitcoin’s Decentralized Financial System is Important for Human Rights? appeared first on PrimaFelicitas.

Source: https://www.primafelicitas.com/defi-why-bitcoins-decentralized-financial-system-is-important-for-human-rights/?utm_source=rss&utm_medium=rss&utm_campaign=defi-why-bitcoins-decentralized-financial-system-is-important-for-human-rights

Blockchain

Cardano, Uniswap, Chainlink Price Analysis: 16 May

Republished by Plato

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Cardano introduced some target levels at $2.53 and $2.69 via the Fibonacci Extension tool. Uniswap needed to garner bullish strength for a break above $43-$45 resistance. Lastly, a descending triangle breakdown on Chainlink could see a 7.5% retracement towards its 50-SMA

Cardano [ADA]

Source: ADA/USD, TradingView

If buyers were looking to make profits on large-cap alts during the recent turbulent broader market, Cardano was a must inclusion in every portfolio. Weekly gains of 36% were the highest among the top 10 coins by market cap and underlined ADA’s independence from broader market sentiment. Fibonacci Extension tool was used to identify potential target points for the current rally. The 372.2% and $361.8% extension levels stood at  $2.53 and $2.69, respectively. With buying pressure still on the rise according to Awesome Oscillator, ADA made a strong case for an extended rally.

In case of pullbacks, these extension levels can also act as support lines. RSI’s overbought territory indicated the need for stabilization and a dip in volumes could mean some southbound action. Nevertheless, key factors could allow ADA to sustain higher levels moving forward.

Uniswap [UNI]

Source: UNI/USD, TradingView

A descending triangle breakdown showed losses of 8% from the bottom trendline, but buyers stepped in at $35.6-support. In fact, this support has been under the spotlight during recent dips and only reinforced the area as a buffer against extended losses. On the 4-hour timeframe, OBV’s sharp fall was an interesting development which explained why bulls have failed to topple $43-$45 resistance. Considering the dearth of constant buying pressure, Uniswap could trade between $44.4 and $35.6 over the coming days.

A breakout above $44.4 on high volumes would result in a bullish trend but the market was not yet ready for such a swing. Awesome Oscillator’s wavy trajectory suggested that neither side had been fully able to assert dominance.

Chainlink [LINK]

Source: LINK/USD, TradingView

While Chainlink did see losses over the last 24 hours, the bulls held on to $41.2-support – an important development. A descending triangle was prominent on the daily timeframe and a breakdown could see a sell-off between $35.7-39.1. Those hoping to trade on a breakdown can observe the 4-hour timeframe for more sensitive price action.

Awesome Oscillator registered a series of red bars as selling momentum dragged  LINK from a high of $61.9 to a low of $39.7 during the present downtrend. MACD also confirmed a bearish presence in the market. To negate LINK’s pattern, buyers would need to target a rise above $45.6-resistance.


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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://ambcrypto.com/cardano-uniswap-chainlink-price-analysis-16-may

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Blockchain

Here’s how Bitcoin’s intraday volatility complicates leverage trading

Republished by Plato

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The crypto sector is in a bull market, and frequent evidence comes from anonymous traders who post their five-, six- and seven-figure investment returns as screenshots on Crypto Twitter.

This condition creates a FOMO-like situation where everyone gets greedy. The temptation to boost potential earnings by twenty times or more is often irresistible for most novice traders.

Today, almost every cryptocurrency exchange offers leveraged trading using derivatives. To enter these markets, a trader has to first deposit collateral (margin), which is usually a stablecoin or Bitcoin (BTC). However, unlike spot (regular) trading, the trader cannot withdraw from a futures market position until it has been closed.

These instruments have benefits and can improve a trader’s outcomes. However, those who often rely on incorrect information when trading futures contracts end up with heavy losses rather than profits.

The basics of derivatives

These leveraged futures contracts are synthetic, and it is even possible to short or place a bet on the downside. Leverage is the most appealing aspect of futures contracts, but it is worth noting that these instruments have long been used in stock markets, commodities, indexes, and foreign exchange (FX).

In traditional finance, traders measure daily price change by calculating the average closing price changes. This measure is widely used in every asset class, and it’s called volatility. However, for various reasons, this metric isn’t helpful for cryptocurrencies and can harm leverage traders.

Bitcoin 60-day USD volatility. Source: BuyBitcoinWorldwide

To be brief, the higher the volatility, the more often an asset price presents wild oscillations. Contrary to the expectation, moving up by 7% to 10% every day represents a low volatility indicator. This happens because the deviation from the mean is small, while random fluctuations between a negative 3% to a positive 3% present a much wider range.

Markets with very low volatility are perfect for leverage

Knowing the general range of how an asset oscillates is extremely important when opening leverage positions. Take the British Pound Sterling (GBP), for example, and one will notice that its volatility is usually below 1% as surprise aggressive daily price changes are unusual.

GBP currency 60-day USD volatility. Source: BuyBitcoinWorldwide

FX markets are relatively stable markets when compared with stocks and commodities. Therefore, some regulated brokers offer even 200x leverage, meaning a 0.5% move against the position would cause a forced liquidation.

For a cryptocurrency trader, the Swiss Franc’s (CHF) daily change versus the U.S. dollar would likely be seen as a stablecoin.

Swiss Franc (CHF) USD prices. Source: Investing.com

However, the 3.4% daily Bitcoin volatility hides a more dangerous price fluctuation. While measuring daily closing prices for traditional markets makes sense, cryptocurrencies trade non-stop. This difference potentially creates much wider movements within the same day, although the daily closing often masquerades it.

Bitcoin price low-high-close USD prices. Source: CoinMarketCap

The average change between the Bitcoin intraday high and low of the past 180 days is 6.5%. As shown above, these ‘intraday moves’ surpassed 10% on 25 occasions. Meaning, in reality, BTC price oscillations are much larger than expected for a 3.2% daily volatility asset.

20x leverage seems crazy considering Bitcoin’s daily moves

To put things into perspective, a 5% move in the wrong direction is enough to liquidate any 20x leveraged Bitcoin position. This data is clear evidence that traders should really consider risk and volatility when leverage-trading cryptocurrencies.

Fast profits are nice, but what is more important is being able to survive the usual daily price swings to hold on to those unrealized gains.

Although there’s not a magical number to set the best leverage for every trader, one must account for the effect of volatility when calculating liquidation risks. Those aiming to keep positions open for more than a couple of days, aiming for 15x or lower leverage, seem to be ‘reasonable.’

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Here’s how Bitcoin’s intraday volatility complicates leverage trading

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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://blockchainconsultants.io/heres-how-bitcoins-intraday-volatility-complicates-leverage-trading/?utm_source=rss&utm_medium=rss&utm_campaign=heres-how-bitcoins-intraday-volatility-complicates-leverage-trading

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Blockchain

YFI, VeChain, Litecoin Price Analysis: 16 May

Republished by Plato

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YFI’s technicals suggested that the cryptocurrency possessed bullish strength to sustain its rally. VeChain was projected to move sideways within a fixed channel. Lastly, Litecoin traded within $330-$300 – an area that needed to be defended against bearish pressure.

YFI

Source: YFI/USD, TradingView

Year-to-date gains of 210% may be modest when compared to some other alts in the market, but a rise above $55,000 indicated bullish progress for YFI– one that could see sharper gains over the coming months. A breakout above $55,000 had already fueled a 50% jump in value to above $83,000, but a broader market pullback complicated matters. Unable to fully take advantage of its rally, YFI noted choppy movement over the past few days.

Healthy volumes and buying pressure have allowed the price to trade above $63,000-65,000 support. OBV’s uptrend attested to buying activity in the market. Awesome Oscillator’s green bars also conformed with OBV’s stance. There was some resistance around $83,000 and a break above this could see another price swing. Conversely, a breakdown could see losses towards $48,000 or $43,000.

VeChain [VET]

Source: VET/USD, TradingView

An ADX reading of 20 showed a weak directional market as VeChain traded between $0.203 and $0.1666. Low volatility was also evident from the constricted nature of Bollinger Bands. Considering its technicals, VET would likely continue to see some rangebound movement over the coming days.

A rise above $0.203 could spur some additional buying but gains would likely be capped at $0.254-resistance.Having said that, a breakout from $0.254 could see a shift of market dynamics towards the bullish side and volumes must be observed for such an outcome.

Litecoin [LTC]

Source: LTC/USD, TradingView

On the daily chart, Litecoin traded within a buy zone of $330-$300. The current area needed to be defended from a sell-off towards the 50-SMA (not shown) around $266. While the 4-hour chart did register a series of bullish candlesticks, bearish sentiment still prevailed on the daily timeframe.

The Squeeze Momentum Indicator highlighted bearish momentum and a dip below half-line would present a sell signal. This would also lead to a breakdown towards the 50-SMA. RSI floated around neutral-50 but did point north at the time of writing. If the present buy area is retained, a comeback above $330 would become a possibility, however, broader market cues would likely dictate LTC’s trajectory.


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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://ambcrypto.com/yfi-vechain-litecoin-price-analysis-16-may

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