Swing Trading Strategy

This straightforward strategy simply requires vigilance. The idea is you keep a close eye out for a correction in a trend and then catch the ‘swing’ out of the correction and back into the trend. A correction is simply when candles or price bars overlap. You’ll find trending prices move quickly, but corrections, on the other hand, will not.

Let’s say on your cryptocurrency chart at 250-minute candles, you see 25 candles where the price stays within a 100 point range. If the price contracted to a daily move of just 20 points, you’d be seriously interested and alert. You should see lots of overlap. This tells you there is a substantial chance the price is going to continue into the trend.

You should then sell when the first candle moved below the contracting range of the previous several candles, and you could place a stop at the most recent minor swing high. It’s simple, straightforward and effective.

Even with the right broker, software, capital and strategy, there are a number of general tips that can help increase your profit margin and minimise losses. Below are some useful cryptocurrency tips to bear in mind.

Utilise News

Short-term cryptocurrencies are extremely sensitive to relevant news. When news such as government regulations or the hacking of a cryptocurrency exchange comes through, prices tend to plummet.

On the flip side, if a big company announces they’ll be incorporating the use of a currency into their business, prices can climb quickly. If you’re aware of any news and can react rapidly, you’ll have an edge over the rest of the market.

Technical Analysis

Analyse historical price charts to identify telling patterns. History has a habit of repeating itself, so if you can hone in on a pattern you may be able to predict future price movements, giving you the edge you need to turn an intraday profit. For more details on identifying and using patterns, see here.

Study Metrics

This is one of the most important cryptocurrency tips. By looking at the number of wallets vs the number of active wallets and the current trading volume, you can attempt to give a specific currency a current value. You can then make informed decisions based on today’s market price. The more accurate your predictions, the greater your chances for profit.

Trade On Margin

If you anticipate a particular price shift, trading on margin will enable you to borrow money to increase your potential profit if your prediction materialises. Exchanges have different margin requirements and offer varying rates, so doing your homework first is advisable. Bitfinex and Huobiare two of the more popular margin platforms.

Use this Trading strategy while trading with XcelToken Plus on CoinGeo, a secure trading platform.

Cryptocurrency: A Source Of Passive Income

Featured

In order to understand how crypto can become a source of passive income, we must first understand or define what passive income is.

What is Passive Income?

Passive income is earnings derived from a rental property, limited partnership or other enterprise in which a person is not actively involved. As with active income, passive income is usually taxable. However, it is often treated differently by the Internal Revenue Service (IRS). Portfolio income is considered passive income by some analysts, so dividends and interest would therefore be considered passive.

Passive income is a big step for cryptocurrency: it’s about time that people use digital assets productively. There are options that vary in time-intensity to fit one’s investor capacity and crypto needs at the same time.

Cryptocurrencies are complicated so you need to make the point that it could be very easy. It’s common knowledge that institutional investors, specifically from CME, are increasingly embracing the world of crypto. As far as passive income is concerned, institutional clients may be interested in these types of earnings in which case certain conditions are met. For example, the return on investment should be at one level or higher than the return on investment instruments in the classical market. At the same time, risk level must not exceed fiat market risks. Otherwise, investments will be deemed as risky and may be of interest only to highly speculative hedge funds that specialize in this domain.

Staking isthe simplest way to earn passive income, as the market pays you for holding cryptocurrencies for a certain period of time. It offers an investor a potential ROI which is more predictable than others and no investment in hardware is required. Technically, staking means a user stakes his coins to “forge” blocks by maintaining a wallet or node. When staking your coins, investors usually go through a lock-up period while voting — rules on this vary from project to project. After voting, investors get their coins back as well as the staking reward (up to 30% of the coins put in stack). Staking has been misrepresented as the equivalent of a bond in cryptocurrencies. In reality, it is much more of an instrument to participate in the corporate governance of a project and getting paid for it. As mentioned earlier, you don’t need mining hardware because staking is fulfilled via e-wallets.

Blockchain has two layers: application and implementation. The lightning network belongs to the implementation layer or Layer 2. The owner of lightning has the ability to quickly process a lot of transactions. This method does not offer an immediate return on investment; however, they offer transaction fees. Lightning network nodes have strong potential: they are expected to grow in demand within the market. So, if you invest in lightning nodes, your returns will increase in line with their usage maximization.

Here everything starts with setting up automated lending on a crypto exchange platform. AI is used to manage lending operations. Again, the income depends on the amount of your holdings: the more you own, the more AI works for you, and ultimately, the more your passive income is. While the process of lending is fully automated, an investor can take control of parameters — loans can be varied in size and length.

For beginners, here are a few tips to make cryptocurrency a profitable investment.

First of all, always assess the risks cold-headed. You should never invest in an asset if you have heard about or just because it is “hype”.

Secondly, rumours in the cryptocurrency market should be carefully filtered. There is no need to jump on every headline risk before properly checking the news provider and if the story has legs.

Finally, work with credible exchanges — your prudence matters a lot for your own safety and the stability of the entire ecosystem.

Introduction To Cryptoeconomcs

We often see Bitcoin and other cryptocurrencies like the Wild West: no rules, no social norms, only greed, selfishness and mining. This professed lack of law and order makes the crypto world scary to many people. Nevertheless, in reality, there are rules that govern decentralized peer-to-peer (p2p) networks such as Bitcoin. These rules are coded into procedures and deliver the framework for how contributors of a network interact with each other. They help us create a secure, trustworthy and valuable system, just like laws deliver a framework for a better society. Cryptoeconomics asks the question of how we can design these rules and incentives, so that the networks stay secure and create value for everyone. Cryptoeconomics uses cryptographic tools, game theory and economic incentives to achieve this goal.

The Two Pillars of Cryptoeconomics

Cryptography: techniques that keep messages secure

Economic incentives: rules and rewards that encourage you to add value to the network

In this blog we will specifically be talking about the economic tools of Cryptoeconomics.

Economic tools are incentives that encourage and discourage certain behaviour amongst network participants.

The most basic economic tool is the use of tokens and consensus mechanisms.

Tokens

Tokens are exchangeable goods within the decentralized p2p network. The most famous token in the crypto world is Bitcoin.

Beyond Bitcoin, tokens can be exchanged for a variety of goods and services. For example, you can rent out your excess CPU/GPU cycles via the Golem Network and get paid by the GNT (Golem Network Token) as a reward for your service. The presence of tokens creates a shared value amongst network participants, which makes decentralized p2p networks more like separate economies or ecosystems.

Now let’s see how tokens are used to incentivize desirable behaviour in the Bitcoin network.

Block rewards

Let’s say you are a node that creates a new block to be included in the Bitcoin blockchain. You are rewarded for your work by being allowed to include a special transaction (coinbase transaction). This transaction allows you to send a block reward to your own address. Currently (June 2018) miners receive a block reward of 12.5 bitcoins.

You will only be able to reap the reward if the new block is accepted by the rest of the network. Other nodes express their acceptance by including your new block’s hash in the next block they create. This incentivizes them to only include blocks with valid transactions. Because you believe they won’t accept your new block if you include faulty transactions, you are incentivized to include only valid transactions if you want the block reward.

Transaction fees

As I mentioned above, the block reward for creating new blocks decreases at a set rate, which means that there is a finite amount of bitcoins. But what incentivizes participants to continue building the Bitcoin blockchain and to execute transactions if they don’t get rewarded by being able to mine new bitcoin? Simple: they receive transaction fees for each transaction they include in their block.

Transaction fees also disincentivize participants from slowing down the network by sending transactions from and to their own accounts.

Consensus Mechanisms

Participants in a decentralized p2p network need to agree — they need to reach consensus — about the state of the network and about what blocks and transactions to include on the blockchain. We need a mechanism that helps eliminate issues that arise from decentralization and the possible presence of adversaries.

A consensus mechanism is a protocol on top of the blockchain that takes each node’s proposed block as an input and selects a valid block as an output.

Let’s take a look at Bitcoin’s Proof-of-Work consensus mechanism. Simply put, miners must expend a great amount of computational power to prove they have “skin in the game” and then they are allowed to propose a new block. They expend this computational power by solving hash puzzles that are based on the properties of hash functions I’ve mentioned earlier. I’m not going to dive into the technical details of these hash puzzles but you can read more on pages 64–67 of the Princeton Bitcoin book. From a cryptoeconomics perspective, it is important to note that miners must expense fiat currency to buy computing power (nowadays in the form of highly specialized and high-performance ASIC chips). With that, they have expensed significant resources that they would lose if their block wouldn’t be included on the blockchain.

Another popular consensus mechanism is Proof-of-stake. Generally, this consensus mechanism works by having a set of validators take turns proposing and voting on the next block, and the weight of each validator’s vote depends on the size of their staked deposit. They lose their stake if the block is not included in the blockchain and are therefore incentivized to vote on blocks that include only valid transactions. If you want to read more about Proof-of-Stake, I suggest perusing the writings of Vlad Zamfir and Vitalik Buterin, who are championing PoS for Ethereum (which currently runs on PoW).

Qawra: A Travel Guide

Qawra is a Maltese resort town popular for its coastal scenery and great value cafes, bars and restaurants. Many of its eateries are within close walking distance of a wide variety of accommodation choices. Accommodation options range from 2 star apartments to 4 star hotels and resorts, so there’s something for every budget.

Qawra is one of three adjoining villages located in the Northern region of Malta along the shores of St Paul’s Bay. Bugibba and St Pauls comprise the other two. The capital of Malta, Valetta, is only 17.6km (10.9 miles) away, making it easily accessible by public transport or the City Sightseeing Malta bus tour.

**Qawra Watch Tower (Source: google.com)**

In spite of its modern, tourist-centric image, Qawra boasts its fair share of beautiful old buildings. Qawra Watch Tower was built back in 1638 by the Order of St John. The battery was added in 1715. The tower is now home to a restaurant (Ta’ Fra Ben Bar & Restaurant), and the battery a swimming pool. Many visitors find it relaxing to take an evening stroll along the waterfront. Along the seafront you can choose from a wide variety of restaurants for an evening meal or a few drinks.

**Malta National Aquarium (Source: google.com)**

With its Mediterranean themed exhibitions, Malta National Aquarium is another must-see attraction. A major highlight is the underwater ocean tunnel, where you can walk beneath the waves without ever getting wet! Its on-site restaurant serves a selection of dishes to entice you in after a busy few hours exploring the enclosures.

The shop is well stocked with marine themed souvenirs. There is also a fenced playground for children, a cafe and public toilets in the square outside the aquarium. If you have children aged 6 to 14 years they can even sleep over at the aquarium as part of the ‘Night at the Aquarium’ tour.

**Classic Car Museum (Source: google.com)**

Whether you’re a motoring enthusiast or are simply looking to escape Malta’s summer sun, the Classic Car Museum is popular with all kinds of visitors. Discover a remarkable collection of vintage automobiles including many rare models. The whole museum is expertly laid out with vintage clothing displayed alongside the vehicles.

While wandering the streets of Qawra you may be lucky enough to time your visit with one of the many festivals of the Patron Saints. Festivals often feature magnificent firework displays, decorated streets, food stalls and entertainment.

EATING OUT IN QAWRA:

In Qawra there are a number of options for eating out. To dine somewhere with a bit of history you could try the restaurant in the 350-year-old watch tower. Local restaurants tend to have a strong Italian influence yet can cater to most tastes. For example, pizza and pasta dishes feature prominently alongside mixed grills, salads and all-day breakfasts.

There are just as many opportunities to sample local cuisine as many restaurants have local options with Bragioli (beef olives), rabbit stew and Lampuki pie (fish pie) being popular choices. Fresh seafood is a common inclusion on most restaurant menus.

Many restaurants located along the promenade offer spectacular seaside views. The Luzzu complex is one such place that’s popular among tourists both international and local. It features a cafe, restaurant and pool (lido) with stunning coastal scenery. Depending on the facilities in your accommodation you may also choose to prepare some meals using supplies from the local supermarkets.

Use XcelToken Plus on XcelTrip to plan your vacation to Qawra Malta and follow this guide to make memories that last a lifetime.

5 Reasons To Invest In Cryptocurrencies

With prices rocketing back from the lows. In fact, many cryptocurrencies have doubled from their recent low prices over the last several weeks. Here are a few reasons why you should get your hands on cryptos, and make them one of your investment options:

The Market Is Still In Its Infancy

Cryptocurrency is less than a decade old. Bitcoin was launched in 2009, and other major crypto names are far younger. By way of comparison, the New York Stock Exchange began in 1792 and commodities have traded for many centuries.

Volatility is the hallmark of a new market. As exchanges and investors adjust to the new products, massive price swings are inevitable. This is why, despite my bullish bias, I say to only risk what you can afford to lose when investing in the novel cryptocurrency markets.

As the market matures, volatility will decline to create smoother equity curves for investors in both directions. Make no mistake, the inevitable decline in volatility will take much of the enormous profit potential out of the nascent market. This is why now remains an ideal time to buy despite the high risk for extreme return-seeking investors.

Regulations Are Not A Bad Thing

There is a broad fear among cryptocurrency adherents that regulations will ruin the market. Many of the early adopters and creators of cryptocurrency have a strong anti-authoritarian, anarchist bias. In other words, these folks hate the government, regulations, and anything that interferes with the free market.

The early adopter’s utopian worldview — the dream to live in a world where everyone interacts fairly and peacefully — remains nothing but fantasy in the real world. As unfortunate as it may be, regulations are a must for a smooth and fair operating exchange.

The anarcho-capitalist movement that spawned cryptocurrency, and the underground commerce sites like Silk Road, is quickly becoming less of a factor in the growth of cryptocurrencies. A strong argument can be made that regulations are a must for the continued success of the crypto market. The fear-based selloffs triggered by regulation announcements and rumours make ideal buying prospects for savvy investors. An example of this was the steep sell-off that occurred when South Korea announced a slate of regulatory measures. The move was way overblown, and crypto quickly recovered from the selling. This happens again and again, creating an exploitable pattern.

Real World Applications

Crypto has moved away from the anarchist’s preferred means of exchange into the mainstream. However, it is not entirely mainstream enough to squash the upside potential. This means now is the time to buy before it’s too late!

Everyone knows bitcoin is being accepted at more and more locations around the globe. Since it was the first mover in the space, it is the leading cryptocurrency and has gained relatively widespread acceptance in the real world of commerce.

Other crypto projects like Ripple serve to transfer fiat currencies around the world. Crushing legacy systems like SWIFT regarding time and cost, Ripple and XcelToken Plus are the leading players in the conversion of money transfer systems into the digital age. Rumours abound that even Starbucks has plans to accept Ripple and Litecoin as payment within the next five years. Should Starbucks come on board, expect a massive move by retailers in this direction. Ripple is just the tip of the iceberg coming to real-world applications of the blockchain and cryptocurrency.

Platforms like XcelTrip allow those holding cryptocurrencies, to travel anywhere with cryptocurrencies.

Bigger ICOs

Initial Coin Offering (ICO) has become a favorite way to raise capital over the past year. Often built on the Ethereum network, ICOs use vast numbers of tokens which, in turn, increase the demand for Ether, the cryptocurrency of the Ethereum network.

These types of offerings have reached the billion-dollar stage with Telegram, a messaging app, and the old school company Kodak both recently announcing plans to launch ICOs. We will only see ICOs grow more extensive and more legitimate over time, increasing demand for Ether and other backbone blockchain network cryptos.

The Banks And Institutions Are Coming

Primarily a retail investor phenomenon, cryptocurrency has attracted the interest of major institutions, banks and hedge funds. Multiple cryptocurrency hedge funds are springing up around the world, increasing the demand for the cryptocurrency. At the same time, considerable institutional money is starting to flow into the space. Attracted by the high return potential, institutions are in the early stages of accepting the asset class.

The amount of institutional money available for the new market is staggering. Should institutions, banks, and hedge funds embrace digital currency, the upside is truly unlimited.

Keep all these points in mind and invest in a token that has real world transaction usage and that also provides long term profits.

How to Buy Cryptocurrency?

The method of purchasing and selling cryptocurrency has been made a lot easier over the last few months. There are five significant aspects that you must think about before purchasing any cryptocurrencies or to buy some XcelToken Plus (XLAB):

Location

To find out how and where you can buy cryptocurrency, it is important for you check your country’s regulations.

Payment Method

The most common and accepted payment methods to buy cryptocurrency include: credit card, bank transfer or even cash. Different websites accept different payment methods, so you’ll need to choose a website that accepts the payment method you want to use.

Type of Cryptocurrency

Not all cryptocurrencies are available for purchase on every website. You will have to find a website that sells the cryptocurrency that you want to buy.

Cost of Fees

Each website has different fees. Some are cheap, some are not so cheap. Make sure you know how much the fees cost before setting up an account on any website. You don’t want to waste your time verifying yourself and then find out the fees are too high!

How much you can afford

As with any investment, you should never invest more than you can afford. I recommend speaking to a financial adviser first. With those 5 factors in mind, we can move on. When you buy your cryptocurrency, you will can’t obviously store them in your bank as you would regular fiat currency.

Cryptocurrency Wallet

A cryptocurrency wallet is where you store your cryptocurrencies after you have bought them. You can compare a cryptocurrency wallet with your bank account. In the same way that you store traditional currencies (USD, JPY, EUR etc.) in your bank account, you will store your cryptocurrencies in your crypto wallet. There are a lot of easy-to-use and safe options to choose from. It is important that you choose a highly-secure wallet, because if your cryptocurrency gets stolen from your wallet, you cannever get it back.

There are three types of wallets:

Online wallets: The quickest to set up (but also the least safe)

Software wallets: An app you download (safer than an online wallet)

Hardware wallets: A portable device you plug into your computer via USB (the safest option).

The wallet you need will depend on which cryptocurrency you want to buy. If you buy Bitcoin, for example, you’ll need a wallet that can store Bitcoin. If you buy Litecoin, you’ll need a wallet that can store Litecoin. There are multiple wallets that allow you to easily transact and safely store your cryptocurrencies, coupled with features that allow you to use them for your utility payment purposes.

With the information above you will now be able to buy XcelToken Plus and trade with them on one of the 14 trading platforms that it is listed on.

Cryptocurrency Trading Strategy: The Balanced Portfolio Strategy

XcelToken Plus is an ERC20 token on the Ethereum Blockchain Platform that is created to build, engage and foster a large crypto-community within the hospitality, retail and gaming sectors. XcelToken Plus is now available on 14 diverse cryptocurrency trading platforms where you can use the below cryptocurrency trading strategy:

If you need balance in your life this may be the best cryptocurrency trading strategy for you. A balanced portfolio strategy comprises of buying numerous cryptocurrencies, for the same volume across the marketplace.

Say you invest in-

Litecoin

Bitcoin

XcelToken Plus

You have a budget of $900. You’d invest $300 into each coin allocating your asset evenly. This way you’re distributing the risk across the board.

This is a good way to test dissimilar coins, when you’re uncertain of which ones will do well for you or not. You’ll rapidly find out which currencies have the best shot in succeeding. From there you may want to only invest in one or two coins that have given you the lion’s share of profit.

The only disadvantage to this approach is that, for example, one of the coins produces a 10% gain while the other two lose 5%, you would be stuck with no profit, however this is rarely the case. Of course this would work in inverse the opposite could happen as well, so again, you’re fundamentally scattering out your risk across several coins with this approach.

Tip: Make sure each coin you invest in are utilize diverse utilities. For example: one privacy coin, one security coin, one equity coin, etc.

Use the unbalanced portfolio strategy a good cryptocurrency trading strategy while trading with XcelToken Plus on any of the 14 platforms that it is listed on.