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ZEDXE Analysis Report – Digital Assets by Lead ZedXean – Week 20, 2020

ZEDXE Analysis Report – Digital Assets by Lead ZedXean – Week 20, 2020

Hi ZedXeans,

Welcome to our 1st Analysis Report – In My Humble Opinion IMHO, it has been an exciting time in the market as well as out of the market.

After the Halving

Bitcoin Halving has happened and BTC price dropped by 20% as well as Alts dropped significantly, too. For me, it (BTC price action) is a blessing, and I already mentioned in my message after a few hours of halving that we will observe an increase of up to 30% by Miners and we have seen the price surge from USD 8,400 to USD 10,000 resistance levels between the halving day and now. Next Halving in 1,394 Days (Approximately 4 years)…. SEE YOU HALVING THEN.

Now we will discuss the mass adoption of Digital Assets under the speculative observation of current news and scenarios.

  • After Jamie Dimon denials of BTC acceptance, JPMorgan has permitted crypto exchanges and offered vastly a bank account and banking services to Coinbase and Gemini initially.
  • Paul Tudor Jones – USD 5 Billion Hedge Fund Manager – announced that he’s committed 2% of his USD 8 billion hedge fund (assets under management) to bitcoin. This is incredibly important and pretty bullish.
  • A major brokerage firm with 30 Million customer-base is going to start offering BTC trading to its customers
  • Investor Mike Novogratz: ‘Future Will Include Cryptocurrencies, Digital Assets, and Blockchain-Based Systems’

CONCLUSION

ZedXeans, the opportunity is still here. Make sure you put your positions on. Please do not delay. BTC Mass Adoption means Alternative Coins & Tokens Mass Adoption, which will be lucrative for your future. So Do YOUR OWN RESEARCH and Go with the Flow before it gets late and we Rest in Peace…..

STAY SAFE AND HAPPY TRADING

ZEDXE ECOSYSTEM 

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Guidelines for creating a diversified cryptocurrency portfolio

Guidelines for creating a diversified cryptocurrency portfolio

Cryptocurrency is one of the sought-after investment instruments in the market these days. The continuous surge in the Bitcoin price is attracting the interests of more investors. Like other avenues, cryptocurrency also needs to be approached meticulously as it is also a great investment opportunity. One of the ways to escalate your crypto profit is diversification, and we have outlined the best tips leveraging which you can successfully diversify your portfolio.

Conduct a thorough research

Before investing in a cryptocurrency, it is indispensable to understand different coins along with the fundamentals behind them. There are ample resources and tools to comprehend and monitor the crypto market, respectively. You can also stay acquainted with the market changes and new trends based on live prices of the coin using these tools. Some sites specifically shed light on investment-related crypto topics to provide the latest insights on the crypto market. You can learn technical indicators to use, the fundamentals of the coin you want to invest in, and of course, major announcements and imminent changes. Simultaneously, look for a reliable bitcoin trading platform to achieve the best possible outcomes.

Join a crypto community

To turn from a novice to experienced crypto investors, joining online communities of crypto investors and evangelists is the best approach. These entities continually broach a crypto related topic to discuss, following which you can navigate your way around the crypto sphere. You can also garner knowledge about how to choose the best crypto coin exchange and create an account to maintain a diversified cryptocurrency portfolio from these communities. To take your investment and trades to the next level, you can copy the trades of other investors.

Understand Your Risk Profile

Of course, always copying the trades and investments of others is not the best approach to making profits. Understanding the fundamentals of crypto investment is paramount to be able to make your own investment decisions, diversify your investment portfolio and cover your risk profile. You also have to follow some golden trading rules to leverage the lucrative crypto market. These rules will also help you to figure out how much you are willing to risk to achieve your target profit.

Build a Strong Foundation

You need to build a strong foundation before effectively diversifying your investment portfolio. This means counting on the top 10 cryptocurrencies of the market, including Bitcoin, Ethereum, Litecoin, Ripple etc.

While building a crypto foundation for your portfolio, ensure to determine the growth potential of your base cryptocurrencies. Focus on coins having long-term growth potential to create a portfolio. Once you place all the components, you can invest in other coins available in the crypto ecosystem and diversify your crypto portfolio. Simultaneously, you can invest more in existing coins that you think can yield higher gains and become a renowned investor in the market.

Everything you need to know about cryptocurrency trading pairs – An expert’s take

Everything you need to know about cryptocurrency trading pairs – An expert’s take

Trading cryptocurrencies is a little different than trading other assets such as commodities or stocks. While most trading operations are akin to one another, and even indicators can be reused, there is one metric i.e. trading pairs that differ crypto trading from stock trading.

Cryptocurrencies are usually traded against other cryptocurrencies, and if you are not well-versed in trading pairs, then this article will help you to garner in-depth knowledge of this key element of crypto trading.

What is a cryptocurrency trading pair?

The term “trading pairs” describes a trade between two different cryptocurrencies. In most cases, people use BTC to trade against another cryptocurrency on a digital asset/bitcoin trading platform, but there are many other pairs that you can leverage.

How do trading pairs work?

Trading pairs come in handy to establish the value of a cryptocurrency when it is traded against another cryptocurrency. It generally works by comparing the value of an asset for another. Let’s understand this phenomenon with a simple example:

Suppose, there is a guy named Eric who possesses one BTC and wants to purchase Ethereum. He signs up on a digital asset exchange platform and navigates towards the ETH/BTC trading pair. The exchange then displays the current value of Ethereum and if Eric agrees to its price, he places an order to sell half of his BTC for ETH.

ERIC was able to execute this trade because he already owned bitcoin, which was a base trading pair. If he had XRP instead of BTC but there is no trading pair on the exchange for XRP, then his trade would look different. So, make sure to choose the best crypto exchange that offers every kind of crypto trading pair to facilitate quick trading.

What is the difference between crypto trading pairs?

Though there are various trading pairs on an exchange which works the same way, you must be aware that the value for each pairing could be much different. This is because every pairing has its own bids and asks, and depending on demand, you could pay a premium with these pairs, or maybe get a good deal upon fulfilling a demand. Besides, if you trade using BTC, there are more chances to gain profits.

How to choose a crypto trading pair?

Always make sure to choose a trading pair by taking the current trading volume into consideration in order to reap benefits. If a pair has a low trading volume, then you could have to wait for a long time to find the perfect match. So, count on a trading pair which has a high trading volume to make a good deal in a couple of seconds.

Trading pairs base currency

The base currency is one that is deemed as a common trading pair on a cryptocoin exchange. In most cases, base currency typically comprises BTC and ETH as they are the most popular cryptocurrencies one could invest in. However, some exchanges also offer their own base currencies. This could include ZedXe’s ZFL, which is its own native token.

Different exchanges accept different base currencies. You can check the base currency pairs available on an exchange to find a perfect pair for you.

Correlation between cryptocurrency trading pairs

Some crypto trading pairs have a certain value correlation where they follow each other. Since Bitcoin has gained the most momentum in the crypto market, many pairs tend to follow this maiden currency, but sometimes there is a certain deviation. This can only be true if you are using an exchange or a pairing having low trader count. In this scenario, all the demands can be fulfilled within bitcoin base currency, which in turn, lowers the liquidity of other pairings.

Cryptocurrencies are rapidly gaining mass adoption as they offer enormous benefits to new and experienced traders. But it is paramount to invest in a cryptocurrency having high liquidity and choose the best trading pair to harness the potential of the cryptocoin market.

3 Factors Affecting the Trading Volume in a Cryptocoin Exchange

3 Factors Affecting the Trading Volume in a Cryptocoin Exchange

Like liquidity, trading volume is also an imperative metric for the success of an exchange. It is basically a measure of the amount of a cryptocurrency that has been traded in the last 24 hours. From volume, users can infer the movements and direction of a cryptocurrency. An asset with frequent heavy movements won’t gain traction even if it has a high trading volume. Conversely, if a crypto has less volume but experiences heavy trading in the last 24 hours, it signifies that there is some support behind the transactions of this currency.

Though trading volume is a crucial parameter in the crypto sphere, there are ample factors that can impact this parameter impeccably. Some of the key factors are:

Cryptocurrency regulation

Proper regulations are vital for a cryptocurrency to make a statement in the market. Different nations have different perceptions of digital assets. While some have taken necessary steps to regulate them, others have brought forth stricter regulations or forged ahead to ban their use. The decisions made by the governments regarding the regulation of the cryptocurrencies impact greatly on their trading. If regulations support the digital currencies, their prices tend to escalate and trading volume experiences an elevation. However, if strict regulations are introduced or their trading is banned, their prices drop, leading to a decline in the trading volume.

Usability

The value and trading volume of a cryptocurrency is determined by its usability. A digital currency that has the potential to solve real-world problems are deemed to have higher value and consequently, shines in the market. For example, Bitcoin, the founding father of the cryptocurrencies, is a solution of the double-spending problem, a barrier, technocrats had been striving to overcome since two decades by making digital money a reality. Bitcoin adopted a peer-to-peer decentralized timestamp server to create a computational proof of the sequential transactions to overcome this issue. There are many other reasons behind the more usability of Bitcoin, which in turn, has increased its market price as well as trading volume. Besides, as per the Joseph Oreste perspective, who is the founder and CEO of Qupon, regulations and usability are the major factors to foster the trading volume of the digital assets in a cryptocoin exchange.

Market Forces

The supply and demand of cryptocurrencies also immensely impact their trading volume on a digital asset exchange platform. If a cryptocurrency is in high supply but low demand, its value is more likely to dwindle. Similarly, if it is in high demand but low supply, its value will increase. This is especially applicable for Bitcoin whose trading volume is strongly linked with its demand and supply.
These are the key factors that can affect the trading volume of the cryptocurrency in the exchange. So, always make sure to list the assets in your online coin trading platform that are completely regulated or have already disrupted the crypto market.

Why is Liquidity a Crucial Factor in a Cryptocurrency Exchange?

Why is Liquidity a Crucial Factor in a Cryptocurrency Exchange?

Liquidity is described as the potential of cryptocurrencies to be converted into fiat currency or any other coin with no compromise on their value. It is deemed vital for a cryptocurrency exchange as it signifies a stable market where investors and traders can trade smoothly, quickly and conveniently. This is why most businesses reinforce their trading platform with robust features that can foster its liquidity and help them shine in the market as the best crypto exchange.

Advantages of high liquidity:

Better and fair crypto prices

A host of traders in the market can contribute to the equilibrium price of the cryptocurrencies. For instance, high trading activities in a robust and feature-rich exchange ensure that buyers could bid at high prices and sellers could sell their assets at competitive prices. This creates stability in the price of the digital assets, which is beneficial for both the buyers and the sellers.

High stability in the market

High liquidity leads to high stability and invulnerability to large fluctuations in the market due to large trades. For instance, investors having a great deal of money can notably influence or manipulate the prices in the illiquid market with a little activity. A single trade order placed by them can bring a lot a variation in the crypto prices, which may fuel volatility in the crypto market. On the contrary, a plethora of orders placed by a large number of traders in the liquid market can effectively maintain crypto price stability and mitigate the volatility.

Fast trading process

A liquid market facilitates and accelerates the execution process of crypto trading. With a large number of traders and investors, the trade orders are fulfilled post-haste. Also, the trades can easily be entered and exited which may be challenging in the fast-paced crypto market.

Accurate technical analysis

Technical analysis is basically defined as the historical market prices of digital assets and the use of this data to envisage the crypto prices with the help of technical indicators and chart patterns. Although many experts do not believe in the accuracy of technical analysis, it is a widely-adopted technique to understand the general market and trading. The liquid market has a relatively more advanced and precise formation of price and charting, which significantly enhances data accuracy.

How market makers help in improving liquidity

A market maker or liquidity provider plays a vital role in developing valuable digital currency trading platforms and setting up efficient market mechanisms. It can be a financial institution or an individual that quotes both a buy and a sell price in a financial instrument. Besides, market makers render liquidity enough to lessen price volatility and allow traders to trade their assets at affordable prices.

Market makers benefit traders and investors by ensuring:

Quick order processing

A market maker implements the best strategies to ensure that a buyer matches with a best seller and vice-versa. When a buyer places an order for a certain currency, the market maker casts around for a seller of the same currency to instantly match the order and minimize the delays.

Well-stabilized spreads

Marker makers make certain that the spreads are stabilized in line with its role to provide and enhance market liquidity. They keep the crypto prices at a fixed and fair level to offer a well-organized entry point for traders.

Market makers enhance the trading volume as well as user count of a cryptocoin exchange. It can further boost the confidence of investors in dealing with the crypto market.

At one fell swoop, liquidity is essential for crypto trading. The higher the liquidity, the more beneficial it is for the exchange as well as the market participants.