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Simple trading strategies for the crypto age

Congratulations on your decision to begin trading what is perhaps the most lucrative asset class in existence! There’s no denying that crypto has created more millionaires than any other instrument type in recent years. Experts believe this growth is set to continue well into the future. But while there certainly is a lot of money to be made in cryptocurrencies, your chances of doing so are pretty slim if you don’t devise and stick to a proper strategy.

With all this talk of huge profits for Bitcoin traders, it’s easy to forget that their gains are other people’s losses. When someone makes $500,000 on BTC in a day, that means somebody else (or several other people) have lost just as much in the same amount of time. Extreme volatility means extreme risk and opportunity. Striking the right balance between the two is absolutely imperative. A solid trading approach is hands down the most practical way to achieve this. Here are two easy strategies depending on your personal risk appetite.

Tether-cost averaging

This simple strategy comes from the world of value investing and has been used by equities investors for decades, where it is known as Dollar Cost Averaging (DCA). You know what they say: if it ain’t broke, don’t fix it. Cost averaging is perfect for cautious newbies or die-hard hodlers alike because it protects you from the market’s ups and downs while also giving you a handsome average return. Let’s say, for example, that you buy $150 in Bitcoin once every Monday from 1 January 2018, spending a total of $26,700 and resulting in 5.07 Bitcoin (worth $190,217 at time of writing). If you’d spent $26,700 on Bitcoin all on 1 January 2018, you would’ve ended up with just $64,080 worth of Bitcoin (1.6 BTC). As you can see, the power of DCA is incredible, especially over extended periods of time. It requires patience and commitment, but the rewards in compound interest and prime buying opportunities make it well worth your while.

RSI divergence

If you’re a bit more ambitious and fancy trying your hand at day trading, this is a good entry-level option. As you probably know, the Relative Strength Index (RSI) tells us when an asset is overbought or oversold. That gives us an idea of whether it is likely to fall or rise, respectively. The RSI divergence strategy goes further by looking at discrepancies between the price and the RSI indicator, which allows it to identify when the price trend will change direction before it actually happens. Typically, both the price and the RSI move almost in lockstep. However, the price might occasionally trend down while the RSI rises and vice versa. This signifies a subtle shift in buying or selling volume and is a strong signal that momentum is in the early stages of reversing. The four-hour or daily charts are the best places to look for divergences because they show stronger shifts in the mid-to-long-term trend. StormGain allows you to overlay the RSI directly onto the in-app instrument chart to make your analysis even easier. Once you spot a buying opportunity, you can open a trade without having to switch tabs.

No substitute for practice

Before you even consider trading Bitcoin, Ethereum or anything for real, you simply must have some practical experience under your belt. A great way to do this is via a demo/practice account, which is pretty much the same as the real thing, except that you’re only trading imaginary money instead of your own hard-earned cash. One platform that offers a generous $50,000 USDT demo account is StormGain. With a balance like that to play with, you can try out a whole range of different strategies until you find one that suits you. Apart from honing your general approach, demo accounts also give you valuable experience with Stop Loss/Take Profit orders and leveraged trading. This means that when you start trading on a live account, you can avoid the costly teething problems that plague new market entrants. And if you simply can’t wait to get going, StormGain’s cloud miner offers a great, risk-free way to build up your Bitcoin balance while you prepare yourself for the big leagues. Just leave it running and wait for your payouts to start rolling in!

MicroStrategy Goes All-In, Averaging Down Its Bitcoin Buys

Experienced traders know that the averaging down strategy can be dangerous. However, MicroStrategy's analysts believe that the market setback is a good opportunity to increase position volumes. But how much risk does this game incur?

Averaging down means buying more of an asset when the price is falling. If you buy Bitcoin at $60,000 and $40,000, the average price paid is $50,000. In this scenario, the investor makes a profit if the price goes above $50,000 but doesn't reach the initial buying price of $60,000.

If you're confident the price will increase, things look good. Problems arise, however, if the price drawdown continues or consolidation occurs over an extended period. Classic trading and investment literature suggests closing your position if the fundamental base has changed or the risk exceeds the expected level. But that's well and good if you're managing someone else's money.

MicroStrategy is a publicly traded company that borrows funds by selling its stock for quality capital management. When it's successful, all shareholders receive profit through dividends and higher stock prices. However, a shortage of funds for operating activities would threaten the company with bankruptcy and its investors with the loss of their investment. The company's management decided to walk on thin ice when it announced a $400 million bond issue maturing in 2028 to buy Bitcoin again.

This is not the company's first purchase of the cryptocurrency with additional collateral. It also issued $1 billion in debt securities in February when it bought Bitcoin at an average price of $48,000. Presently, MicroStrategy is one of the biggest public holders of Bitcoin, with a total of 92,079 BTC. However, a company's general financial condition can be properly assessed by its stock prices:

Bitcoin doesn't have to dive too low to swallow up buyers like MicroStrategy. If Bitcoin's price consolidates for a few years, the company will be unable to repay its debt.

Institutional investors caused the 2020 rally, but they also overheated the cryptocurrency market by pumping large sums of borrowed funds into it. Young retail investors already felt the power of a cryptocurrency storm when all leveraged positions were liquidated in May. Is it time for the big fish to follow suit?

The StormGain Analytics Group

Why MATIC’s 8,500% Growth in One Year Is not Ceiling

In May 2021, the cryptocurrency market underwent a considerable setback. However, MATIC (Polygon) saw +118% growth despite the general dynamics. This exemplifies not the coin’s strong positions in the market but also the ability of certain projects to resist the market’s setbacks.

Ethereum’s basic problem is its network’s high congestion and its slow proof-of-work protocol. As a result of the smart contract rush, its transfer fees rose above Bitcoin’s network fees, reaching $69.50 pm average. MATIC solves this problem by increasing transaction throughput to 65,000 transactions per second with a fee of $0.001.

MATIC was created to be integrated with Ethereum as opposed to the ‘Ethereum killers’ Polkadot and Solana. That’s why MATIC was a bigger winner in the rally experienced by the DeFi market, most of whose platforms are deployed on Ethereum’s network.

Currently, MATIC’s capitalisation stands at $9 billion, ranking it 17th overall. In May, the number of Polygon’s daily active users grew from 7,500 to 28,900. In addition, Aave recorded a 156% growth in the number of addresses after it integrated with Polygon, which made it the number 1 platform among DeFi projects.

On 26 May, reports emerged that Mark Cuban — the billionaire owner of the Dallas Mavericks basketball team — had invested in MATIC. The sum was not publicly revealed, but on 27 May, Polygon’s co-founder spoke of a ‘significant investment’ being made.

The DeFi market grew 60-fold in one year. Users don’t want to pay $10 per transaction, so the demand for low-fee solutions will grow. The only thing threatening Polygon is Ethereum’s transition to a proof-of-stake protocol. However, Vitalik Buterin has said that 2022 is the closest mark, and a full network deployment might take about six years. Until then, the huge difference in fees and transaction speeds will help MATIC’s growth.

The StormGain Analytics Group

NFT Market Benefits From Cryptocurrency Crash

In May, the capitalisation of the cryptocurrency market cap fell by 42% or around $1 trillion. As a result of the retracement, about $1 million leveraged trades were liquidated. However, the NFT market continued to grow: compared to January, the trading volumes jumped by 277% to $5.8 million per day. The recent crash has given NFTs a second wind.

An NFT is a non-fungible token that serves as an equivalent to a certificate or a signature. It can be linked to a digital artwork or legal transaction parameters, but it cannot be falsified or changed. The convenience of using NFTs has already been appreciated in digital art: these tokens have been sold at Sothbey’s and Christie’s auctions, and Mike Winkelmann’s image was sold for $69 million.

The advantages of NFTs include the transparency in buying and selling artworks, a quick identification of the true owner, the possibility to include additional parameters (such as royalty payments to the author from each resale). The cost of the token is normally the same as a transaction in the Ethereum network (most of the NFTs are built on the ERC-721 standard of Ethereum’s blockchain).

A large transaction fee would scare away many participants from creating their own NFTs as the average fee reached $70 in May.

Ethereum’s problem is in the uniqueness of smart contracts, which caused an explosive growth of the NFT and DeFi markets. Because of the increased workload, the commissions would have continued to grow, but May’s market crash cooled them down – the current commission is around $8.

A relatively low commission will allow startups and young artists to use NFTs more actively for promoting their artworks. Thus, GameStop is planning to enter the NFT market, after having received support from general public earlier this year. The company has launched a site nft.gamestop and opened vacancies in the fields of cryptography and design. Another example is Christie’s auction where the works of 19 modern artists and even a fashion film by Gucci will be sold.

Being more practical and universal, Ethereum is recovering faster than Bitcoin. The continuing NFT market’s growth will give NFTs more support.

Analytical group StormGain

Millions of Subscribers Lose Millions on Musk’s Tweets

Is Elon Musk the godfather of cryptocurrencies or an evil genius chasing his own interests and holding the public on a doge leash. A former SEC analyst Marc Powers believes that the regulators should check Musks crypto tweets.

In September 2018, Elon Musk was already accused of fraud by the US Securities and Exchange Commission (SEC) for publishing false and misleading tweets. Tesla and Musk agreed to pay $20 million each for a pre-trial settlement. Those funds went to the treasury, but the shareholders did not get compensated for the alleged financial losses. Elon was also obliged to coordinate his tweets about his company.

In 2019, the U.S. Federal Trade Commission issued a list of normative requirements for influential individuals and celebrities: they had to publicly report their profits associated with the recommendations of products. Thus, Floyd Mayweather and DJ Khaled have been called to account for cryptocurrency PR, but Elon Musk has somehow escaped the regulators’ sight.

In the recent years, Elon Musk has been actively promoting Dogecoin and has even suggested making it the Mars cryptocurrency. As a result of this PR campaign, the meme coin became a top 7 cryptocurrency by market cap (the 4th at its high), and now 29% of Americans know about Dogecoin, while only 21% know about Ethereum, according to the polls of Harris Poll and CouponCabin.

Elon Musk believes that it is enough to increase the block size of Dogecoin 10 times to make it the number 1 crytpcorrency. Vitalik Buterin responded to this, saying that it would be impossible to implement such a change without massive centralization of the coin, which will destroy the basic value of the blockchain network. Elon simply laughed it off:

The former SEC analyst Marc Powers believes that the regulators should more rigorously inspect Elon Musk’s posts as his actions can lead to multimillion losses of his subscribers. Besides, Elon Musk’s words can also hold personal interest.

When Bitcoin reached the $60,000 mark in March and became one of the most popular search queries, Tesla announced that it would sell its cars for the cryptocurrency. However, chasing the hype, Elon Musk did not take into account that the top officials of China – the biggest car market – did not favour cryptocurrencies.

Tesla instantly became an objectionable company, and Mode3 sales dropped by 30% in China in April. (this was officially explained by a general slump on the electric vehicles market). Musk had to reverse his stance on Bitcoin, acknowledging its negative environmental effect, and rejected to accept it as payment, bringing down the crypto market and setting crypto enthusiasts at odds with himself. But New York Times twice spoke about the Bitcoin energy consumption problems in 2018, so there was nothing new about it.

We will not go into the rumours of Elon’s savings in Dogecoin, however we have to agree with Marc Powers: Musk has got a large fan audience that can act to its detriment under his influence. Elon has failed to boost Tesla’s sales on the wave of Bitcoin’s popularity, and he has quickly turned away from that idea. And those who bought Bitcoin at its highs with leverage, have found themselves down in the gutter.

Analytical group StormGain

Don’t drop the ball on DOGE: why the profit potential of the meme crypto has never been higher

Dogecoin (DOGE) is wagging its tail once again as Elon Musk promises to teach devs new tricks. To celebrate the stunning rise of the canine cryptocurrency, crypto exchange StormGain is offering Doge along with a one-of-a-kind bonus to its unique Bitcoin cloud miner. Just head over to StormGain, register and enter the promo code DOGESG to get free 5 USDT in the StormGain Cloud Miner, which earns you free BTC while you trade.

After a less than stellar performance on Saturday Night Live during which the most hyped cryptocurrency received only a passing mention, you might be forgiven for thinking that Elon Musk had also only been joking about Dogecoin, but don’t be too quick to discount the Dogefather.

While Musk’s lukewarm SNL spot sent Doge down with its tail between its legs, a new Twitter comment from Elon on Thursday, which said that Tesla and its CEO are “working with Doge” developers to “improve system transaction efficiency,” resulted in 22% gains over a 24-hour period for the canine cryptocurrency as it clawed its way back to 0.52 USD at the time of writing. This dog’s still in the fight, and according to experts, has yet to have its day.

“Dogecoin is an unforgettable part of crypto’s story,” said Alex Althausen, CEO of the StormGain crypto platform, “it comes from the same playful internet culture that created crypto in the first place and that’s why creative thinkers like Musk are always going to be supporting it. But what we see happening now is Dogecoin moving beyond its meme status, potentially getting an upgrade and seeing adoption in big tech. This is a really special moment for Doge, and the right time to invest in the coin before the next big jump. We could see this early on, that’s why we’re proud to offer DOGE ahead of many of our competitors.”

StormGain offers several unique advantages for trading Dogecoin and other digital assets. The crypto exchange platform is extremely user-friendly, packing easy-to-understand but powerful charts, signals and analytical tools into both its web platform and mobile app. Furthermore, StormGain operates on a profit-sharing model - users only pay commission on profitable trades. But its most unique feature is its integrated Bitcoin cloud miner that gifts BTC to its users just for spending time on the platform. By using the aforementioned code, you can get a head start on earning BTC while you trade DOGE, Tesla crypto stocks, and over 55 other crypto instruments on StormGain with up to x300 leverage. Don’t miss out, the countdown has started and DOGE is about to lift off!

West Is Buying “Chinese” Cryptocurrency

This time, Chinese government is putting pressure on cryptocurrency miners and investors through commercial banks and financial institutions: clearing, payments and cryptocurrency insurance are under a ban. Despite foreign registrations, the biggest Chinese crypto exchanges have reduced the list of services, and the crypto market has shrunk by $1 trillion in two weeks.

The leader of the Chinese market is Huobi with $18 billion worth of daily trading volumes, the second is OKEx. Given the issues at hand, Huobi has stopped providing leverage to new users “from several countries and regions” – for which read, China; and OKEx has closed its trading pairs with Yuan, starting from Monday, 24th May. Huobi with its 8th by capacity mining pool in the world is closing access to the residents of continental China.

The Chinese negativity has triggered a cryptocurrency sale with a subsequent conversion of stablecoins into Yuan, which caused 12% volatility in USDT/CNY. While Chinese traders were trying to sell their cryptocurrencies and get Yuan, while it still was possible; Western investors were buying the devalued coins. Glassnode reports that the whales (10,000 to 100,000 BTC) bought 123,588 BTC during the downfall. The buying was mainly going in the U.S. as Bitcoin was trading with a premium of $3,000 during the fall, compared to other crypto exchanges.

China accounts for around 50% of the world’s hashrate and 60% of perpetual future contracts volumes. Another series of persecution of miners and investors can cause global changes in the structure of the world’s crypto finances. In early November 2020, the Director of National Intelligence John Lee Ratcliffe wrote an address to the SEC Chairman Jay Clayton suggesting allowing American companies to compete with China in the field of digital currencies. Possibly, in the near future the USA will lead the way in terms of hashrate and cryptocurrency trading volumes.

Analytical group StormGain

Bitcoin’s Correction Has Refreshed the Market

The bull run of 2020 increased the level of greed among investors, many of whom had forgotten that this is a high-risk market. As a result of the sudden but not too big retracement, all margin buys were discarded from the market. A slight panic increased the level of volatility in Bitcoin up to 80%, and up to 139% in Ethereum.

In the period from February to May 2021, Bitcoin was in a limited price corridor, which many associated with the accumulation of liquidity for the next bull run.

Judging by the growing rate funding rate, it looks to be the case: the more traders are buying cryptocurrency with leverage, the higher becomes the commission for holding a position. But a series of negative news, including Musk’s overkill and the tightening of China’s policy, have led to an adverse resolution: Bitcoin has lost over a half from its highs, and the markets have already leveraged out all margin investors.

At some moment, even the swaps became profitable, making long-term purchases more attractive the shorts, but currently they are at near-zero yields. The correction in cryptocurrencies has brought the market down to earth, having liquidated the leveraged positions. It decreases the load on the network coming from active speculations. Thus, the commission in the Ethereum network has fallen to $23 after peaking to $70 on 12th May.

The institutional demand revealed in open interest towards Bitcoin has reduced by $5 billion. For some time, this will help to further lower the rates, because high-net-worth capital holders are less interested in high volatility than regular traders.

However, there are some who have used the price fall. The portal itsblockchain has traced the transactions of a whale: he or she sold 3,000 BTC on 9th May at an average price of $58.500 and bought 3,521 BTC at an average price of $44,500 on 15th – 19th May. Thus, the investor was able to make a profit of $18.7 million, having increased his or her holdings by 521 BTC.

StormGain Analytics Group

Bitcoin: Who Is Selling and Buying Right Now?

Retail and institutional investors behave differently in the times of large corrections on the crypto market. The current 50% Bitcoin retracement from its historical high is no different.

Elon Musk’s change of mood coincided with an overheated market that has growth threefold this year alone. Tesla has not sold its coins (as claimed by Musk) but its refusal to accept BTC as payment has triggered a slight panic on the market.

As in the last year, retail investors began to transfer their Bitcoins from their wallets to exchanges to sell them. Meanwhile, institutional investors are buying the cryptocurrency at lower prices. The difference in the behavior of the two groups of market players come to the surface thanks to the different types of target audiences of different exchanges. Retail investors primarily trade on Binance, while [censored]’s trading volumes are primarily provided by institutional players.

On 17th May, Binance registered an inflow of 26,000 BTC, while [censored] registered an outflow of 146 BTC. Similarly, big players were buying the fall in March 2020.

The MicroStrategy CEO Michael Saylor is not far behind, having announced a purchase of 229 BTC (%10 million) on 18th May at an average price of $43,633 per BTC. The company’s total balance exceeds 92,000 BTC ($2.3 billion).

Meanwhile, different analysts demonstrate different approaches. Thus, Carter Worth from Cornerstone Macro predicts a drop to $29,000, which corresponds to the coin’s traditional big retracement worth 55% from its ATH. Bank of America has surveyed 194 investment fund managers and has found a growing interest toward Bitcoin as a long-term investment.

There is a third category of investors who do not choose between buying and selling Bitcoin but invest in the most promising altcoin – Ethereum. At present, its market capitalisation is worth 45% of Bitcoin.

The founder of Investment Ark believes that institutional investors underestimate Ethereum, so her fund has bought Ethereum Grayscale Trust shares for $21 million in the first quarter. It was the right choice as Ethereum Grayscale Trust shares have grown by 179% this year as Grayscale Bitcoin Trust shares – only by 1.7%.

StormGain Analytics Group

Bitcoin’s Carbon Footprint vs. Banks and USD

Last week, Elon Musk’s tweet triggered a downfall in Bitcoin; in it, he said that Tesla no longer accepted BTC as payment. The reason for the reversal was the ecological impact that Bitcoin miners had. But how real is it?

Galaxy Digital conducted research that compared the amount of energy consumed by Bitcoin miners to gold miners and the banking system. Bitcoin was the least toxic:

With the global electricity consumption worth 166,071 TWh/yr Bitcoin consumes 114 TWh/yr or 0.07%. Meanwhile, the banking system requires 264 TWh/yr, and gold miners take 241 TWh/yr for mining and refining gold, which is twice as much as Bitcoin consumes.

Thanks to its decentralisation, Bitcoin offers a range of unarguable benefits against traditional systems especially for the people living in authoritarian regimes. Alex Gladstein from the Human Rights Foundation believes that 4.2 billion people need such a financial instrument. A backward economy of several countries leads to a fast devaluation of their national currencies, and for many Bitcoin remains the sole opportunity to save their funds.

Meanwhile, the stability of the U.S. dollar largely relies on the foreign policy and military campaigns of the USA. For instance, one M1 Abrams burns up to one litre of petrol in idle run, and they do not kill their engines in flashpoints. In 2019, a report was published, estimating the carbon footprint of the U.S. Armed Forces in 140 countries of the world. If they were taken as a sovereign state, their energy consumption would be the 47th in the global ranking between Peru and Portugal.

John Lennon’s son Sean Ono has not stood aside from Bitcoin criticism: “Ppl wearing jeans and drinking coffee and eating almonds and avocados and driving cars and taking flights and using cellphones and buying new computers while complaining that #bitcoin uses electricity (70% of which is renewable).” In his opinion, everyone should start with themselves and moderate their consumption of resources.

In 2015, Natural Resources Defense Council estimated that the electricity consumption of inactive devices connected to the U.S. power grid totaled 1,375 TWh/yr. It is twelve times bigger than the current Bitcoin network power.

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StormGain Analytics Group

The ‘YOLO economy’ kicks off as generation lockdown turns to crypto for financial freedom

Fed up with lockdown life, under-employed or overworked, many people are ditching their old routines and risking it all to pursue what is really important to them. Pundits have dubbed this movement of fulfilment-seeking workers and their money the ‘YOLO economy’. Cryptocurrency, now able to bring its promise of financial freedom to the masses via user-friendly FinTech apps, is a defining aspect of this new economic trend.

New ways to work, new ways to build wealth

The basic premise of the YOLO, or ‘you only live once’, economy is that the old ways of working just aren’t cutting it anymore. Low-income workers have been laid off and are struggling against inefficient government relief and a shrinking job market. Although labelled ‘essential’ and heaped with praise, others workers aren’t seeing that gratitude being translated into material security even as they risk their health to keep the economy going. Then there are the luckier ones: the tech workers, marketers and administrators. They found themselves getting used to working from home, with more control over their time and privacy. They hear the call to return to uncomfortable suits, cubicles, and commutes, dig their heels into their living carpet and say, “No!” The rollout of vaccinations and increasing anticipation of a return to ‘normal’ has many considering the lessons learned in lockdown and whether they truly want to go back to the way things were before.

Not everyone has had the savings, support or opportunities to turn the 2020 upheaval into a bliss-seeking adventure. Many are still trying to stay afloat. But anyone in a position to think about where to put their next investment is likely to have a very different mindset than the pre-pandemic paradigm. Seeking a new way of making money, they’re turning to online crypto exchanges, which are making the investment into blockchain technology easier than ever.
StormGain, a cryptocurrency platform popular with new traders, reported a dramatic uptick in new clients in 2021. One thing that makes StormGain particularly attractive to crypto beginners is that the app features a comprehensive suite of educational materials that explains the different types of cryptocurrency and all the ins and outs of trading that make it easy for the layperson to understand.

“We’re seeing some real growth in interest these recent months,” said StormGain CEO Alex Althausen. “Part of this is the popularity of crypto since value is going up across the crypto space, and people want to make that money for themselves. But newcomers are choosing us because they are ready for a big change in this so-called YOLO economy, and we are the ones that offer not only the tools for trading but also all the information they need to prepare themselves and start trading crypto with confidence”.

YOLO and crypto

Considering the optimism, individualism and innovation of the YOLO economy, it’s actually no surprise that it coincides with a boom in cryptocurrency, both in terms of value and adoption. The exposure of the economy’s fragility went hand in hand with an indictment of the traditional financial system — one that felt like the last straw for those who came of age around the 2008 financial crash and the Occupy Wall Street movement. Fast-forward to 2021, non-traditional finance has come into its own. Bitcoin (BTC) has hit dizzying heights of $60K+ value amid fears of the devaluation of the dollar and other fiat currencies. Part of this is due to large-scale investment from established financial giants. But the YOLO economy isn’t about JP Morgan, Goldman Sachs or Citibank. In fact, it’s not even really about Bitcoin.

Bitcoin may be a household name now, but it’s the alternative cryptocurrencies, or altcoins, that are the real stars of the YOLO economy. Bitcoin’s boom was met with cheers by longtime crypto holders, but for most retail investors and ordinary people dipping into cryptocurrency as an extra money-maker, it’s all about altcoins. The number two cryptocurrency, Ethereum (ETH), is soaring to new all-time highs, and other altcoins are falling suit. Litecoin (LTC), Ripple (XRP), Monero (XMR), Pancakeswap (CAKE), Chainlink (LINK) and many more are enjoying their heyday. Bitcoin may have priced itself out of the range of many ordinary people, but YOLO investors aren’t just looking at the ‘mainstream’ cryptocurrency.

To offer the best range of affordable altcoins for this new wave of investors, StormGain recently debuted a series of new altcoins on the platform, totalling 50 different crypto instruments to trade, in addition to 3 indices, or packages of different coins to offer risk management. This makes it easier for the new investors who decided to go YOLO to choose from the most promising Bitcoin alternatives and build a diverse portfolio quickly.

The tools of the trade

The proliferation of platforms is key to the YOLO economy. Crypto thumbs its nose at banks and borders and puts the power in the hand of the individual. Specialised crypto brokers have become faster, slicker and more user-friendly. They boast better bonuses and innovations as they expand to attract new users. Higher leverage rates tempt the daring while crypto indices have been introduced for risk-averse investors. Other gimmicks make it easier to earn crypto without buying it outright.

StormGain, for example, although it already boasts low fees and high leverage, also debuted a built-in Bitcoin cloud miner so that users can also earn the big BTC even while trading more affordable altcoins. StormGain’s cloud miner is unique and impressively works without using any resources from the user’s device. If you’re interested in trying this novel approach to mining Bitcoin, register with StormGain. It only takes a few seconds, and when you use the code YOLOSG, you get a 5 USDT bonus head start towards mining your BTC.

Crypto brokers like StormGain are what really powers the YOLO economy. Because they put access to the crypto market on our smartphones and computers, it becomes simplicity itself to take the first steps towards becoming financially independent while we swipe and click and stay at home, planning for our big break in a post-pandemic world. Sure, pursuing such ambitions may involve some risk, but why not shoot for the moon like Elon Musk? Everything is changing, anything is possible, and You Only Live Once!

Ethereum Founder Hammers Dogecoin Copycats

A co-founder of Ethereum – the most promising network – and crypto billionaire Vitalik Buterin has decided to kill two birds with one stone: stop Dogecoin copycats in their tracks and help India in its battle with the coronavirus. Meme cryptocurrencies dropped by 50% on average in one day.

Dogecoin has become popular and got a big army of fans. Elon Mask has lauded it over the years, calling it his favourite cryptocurrency. We have been telling you about the reasons behind such a positive attitude towards Dogecoin whose market cap has grown by 1,000% in the last year. Such success led up to the advent of many copycapts – Shiba Inu, Akita Inu, DogElon Mars – many of which started off very well after the launch.

Thus, Shiba Inu grew 10 times in 5 days, having risen to the fourth place by daily trading volumes with a mark of $21 billion. In contrast with Dogecoin, most of its copycats are built on the ERC-20 token (such a token can be created in several mouse clicks), because of which the cost of transactions in the Ethereum network rose to a record $70.

The creators of Shiba Inu, Akita Inu and DogeElon, ingratiating themselves with a grand master of the cryptocurrency world, gifted him their coins in hope that he would not spend them and would speak positively about their projects.

However, Vitalik Buterin decided to decrease the level of tension around Dogecoin, decrease the level of congestion in the Ethereum blockchain and make a good thing all along: he sent 50 trillion Shiba Inu ($1.2 billion at the moment of transaction) to a charity fund helping India fight COVID-19 and donated a half of Akita Inu ($431 million) on the Gitcoin platform. As a result of his actions, Dogecoin copycats lost 50% of their market capitalisation in 24 hours.

Dogecoin fell less than 10%, but there were different reasons for that.

On 12 May 2021, Elon Musk said that Bitcoin was too toxic to be accepted as payment for Tesla cars due to the ‘rapidly increasing use of fossil fuels for bitcoin mining’. And the fact that Dogecoin is like Bitcoin works on a proof-of-work protocol, the integration of this cryptocurrency is also irrational (Musk was asking his Twitter subscribers a few days ago whether it should be allowed to be used as payment for Teslas).

StormGain analytics team

BTC has moved out of reach for many traders, but altcoins are where the action is

There’s no question that Bitcoin (BTC) is enjoying a fantastic year, but as the original cryptocurrency’s momentum looks to be stagnating, other, smaller cryptocurrencies are racing ahead. These cryptocurrencies, known as ‘altcoins,’ i.e., alternatives to Bitcoin, don’t quite have the name recognition of Bitcoin. But ignore them at your own peril — many of them present investment opportunities that are potentially superior to Bitcoin, and recent market activity seems to back this up.

Bitcoin’s recent dip down to below $50K pulled its dominance rate down to 49.5%, its lowest level in almost three years. This indicated an increased interest in altcoins and led a large number of traders to declare ‘alt season’ open, with the prediction that altcoins will outperform Bitcoin in the short term.

Conventional wisdom, such as it exists in the relatively new world of crypto trading, points to the tradition that the value of altcoins tends to follow that of Bitcoin: when the original cryptocurrency rises, it tends to lift all boats. Likewise, when BTC sinks, it can drag others down with it. But that doesn’t seem to be the case anymore.

The top altcoins to watch

In 2021, a year that represents a real turning point for cryptocurrency, old patterns may no longer apply as altcoin prices appear to be disengaging from Bitcoin. Notably, the 2nd-ranking cryptocurrency by market cap, Ethereum (ETH), hit a new all-time high this week even as Bitcoin’s price sank 20% from its all-time high. This may have had something to do with Visa announcing that they would support cryptocurrency payments on the Ethereum blockchain at the end of March.

Dogecoin (DOGE) also hit a new all-time high (again), once more due to tweets from Elon Musk. The Tesla founder declared himself ‘The Dogefather’ on Wednesday while promoting his upcoming TV appearance on Saturday Night Live on May 8, a date that Dogecoin traders would do well to pencil into their diaries! Musk has promised to “put a literal Dogecoin on the literal moon” via the next rocket launch of his commercial spaceflight company SpaceX.

Chainlink (LINK) has also been performing well following the release of the Chainlink 2.0 white paper, which detailed the decentralised oracle solution’s innovations for smart contract architecture.  LINK hit an all-time high of $44 before a correction to $36 but remains a strong choice for investment.

Other altcoins to watch right now include Qtum (QTUM) and Pancakeswap (CAKE) — innovative tokens that both hit recent all-time high prices but remain affordable to retail investors — as well as established altcoins such as Litecoin (LTC) and Monero (XMR).

Why the altcoin rush?

Every coin has its own function, whether as a digital currency, governance token, smart contract gas, etc. Even ‘meme coins’ such as Dogecoin have their role. One key attraction is their affordability. What is attracting many people to altcoins even during the Bitcoin dip could well be that. Although BTC has dropped from its all-time high, it’s a resilient asset that has bounced back since the dip and is holding at around $55K at the time of writing. That still puts purchasing a whole Bitcoin out of the remit of many retail investors. However, nowadays, more and more people are looking to invest in the crypto market, and altcoins are much more affordable and accessible to new traders who are getting their foot in the door and building up their portfolios.

Join in the altcoin season on StormGain

With altcoin season in full swing, traders should choose a reliable crypto platform that offers a wide range of altcoins for their portfolio and bring them the best returns on their investment. StormGain, the crypto trading platform with low fees and high leverage, has just debuted a new range of altcoins, including all the above-mentioned trending assets and many, many more! Not only do StormGain clients get the best deals on ETH, XMR, LINK, CAKE, DOGE and other altcoins, but you can also benefit from the unique advantages of the StormGain platform, such as interest earning and a built-in Bitcoin cloud miner.

Registering with StormGain is easy. Just sign up via our website or smartphone app, choose a username and password and start trading in a few seconds! Try it now and reap the benefits of altcoin season with the crypto platform that brings you the best perks on the market.

Biden’s corporate tax hike plans could be back on track

It’s no secret that incoming US President Joe Biden needs funding for his highly ambitious campaign package. The cost of his infrastructure plan alone is estimated at around $2.3 trillion, but this is positively dwarfed by the projected $18 trillion needed over the next three decades for the Democrats’ Green New Deal. Even for the world’s biggest economy, that’s some serious cash, and it has to come from somewhere. Biden wasn’t done any favours by his predecessor either.

In 2017, Trump cut the corporate tax rate from 35% to 21%, thus significantly reducing the natural source of income for such projects. Faced with little other choice, the new president tried to drum up support for a tax increase just halfway back to where it was before Trump came to power. The internal resistance from both sides of the aisle in the House of Representatives was fierce, and it had looked as though Biden would be forced to put his plans on hold. But after some serious compromise, it now appears that the bill has not only risen from the dead but is even gaining global traction.

G20 to the rescue

The plan’s far-reaching and ambitious nature had originally given ammunition to its domestic detractors. But that’s all over now that the finance ministers of numerous G20 nations have spoken out in support of the proposal. One notable supporter is German Finance Minister Olaf Scholz, who had this to say: “I’m in high spirits that with this corporate taxation initiative, we’ll manage to put an end to the worldwide race to the bottom in taxation”. Meanwhile, Mr Scholz’s French counterpart, Bruno Le Maire, welcomed the fact that a “global agreement on international taxation is now within reach,” adding, “We must seize this historic opportunity”. This comes after the UK and France, frustrated by the lack of progress in negotiations, famously launched unilateral digital services taxes pending a worldwide consensus.

You can’t please everyone

Naturally, not every major economy is thrilled about establishing a global minimum tax rate for corporations. Ireland is one such example. As the country’s finance minister, Paschal Donohoe, put it: “The focus on a global minimum tax rate is a prospect that I do have reservations about… on what would be the impact of that on the competitiveness for smaller- and medium-sized economies that do have lower rates of corporate taxation and use that as part of their overall competitive model”. However, the necessity of global support for the new programme is obvious. If tax havens are allowed to continue to operate, businesses will simply relocate to these jurisdictions to avoid the programme’s impact. This is also why Biden is looking to close loopholes that see company bookkeepers generate complex ledgers of leases, loans and sales contracts to avoid US taxes. Removing the incentive to do so by standardising corporate taxes worldwide could just be a long-term solution that works.

Compromise and conquer

As we’ve already mentioned, Biden’s plans were initially met with serious opposition — not only from Republican senators and congresspeople but from within his own party, too. However, far from giving up on the project, the wily president has instead been on the offensive in an effort to win lawmakers over to his cause. The biggest battleground here is undoubtedly moderate-to-conservative Democrats, many of whom were truly conflicted by the proposed legislation. One prominent example would be Senator Joe Manchin, who has repeatedly expressed concerns over the need to remain competitive, most recently warning against “throw[ing] caution to the wind”. Mr Manchin has, however, stated that he would be willing to support a hike as high as 25%, a figure that seems much more psychologically acceptable for many previously still on the fence. Biden has listened to what his colleagues are saying and has since revised his target in line with this 25% figure, which might just be enough to get it through Congress.

Final thoughts

Whatever happens, it’s clear that things need to change when it comes to corporate taxation. Companies are making billions in profits and growing every year, yet they are now paying less tax proportionally than they were in the 1970s. Nobody can deny that this is an issue that simply must be tackled in a coordinated, supra-national fashion in today’s increasingly globalised world. Until there is a firm commitment to fair levels of corporation tax across the entire world, the ‘race to the bottom’, as it’s been termed, can never truly end. But, as the US Chamber of Commerce’s continued opposition to the proposals would suggest, the fallout for business is likely to be pretty significant. Many believe that it could even provoke some serious downward movements on the equities markets as the sobering reality of what this means for corporate earnings sinks in for investors.

How to play it

The good news for Libertex clients is this could spell a special opportunity to short the big three US indices (S&P 500, Dow Jones and Nasdaq) or even specific companies, with tech giants tipped to be hit particularly hard. Luckily, Libertex offers both long and short trading in a range of CFDs, spanning ETFs, indices and individual stocks.

New altcoins on StormGain - diversify your portfolio

Keen-eyed users may have already noticed that there are a plethora of new additions to the StormGain family of digital instruments. StormGain is proud to debut 15 (!) new altcoins to our platform. Our experts have vetted each one to make sure it represents an interesting investment opportunity to the right buyer. To find out which may be right for you, let's take a look at the new additions:

Theta, the video-sharing token (THETAUSDT)

Theta is the cryptocurrency of a P2P system that aims to support one of the most crucial services on the Internet, at least as far as home entertainment is concerned: video streaming. Many video streaming sites are plagued by issues, such as poor global coverage, low video quality, stuttering or interrupted streaming.

Theta is a decentralised blockchain infrastructure for video streaming that rewards its nodes with Theta tokens for their efforts in hosting video content. The aim is to make video streaming online both higher quality and more secure.

Algo, the un-forkable (ALGOUSDT)

Developed by the Algorand foundation, Algo is a cryptocurrency intended simply as digital cash for cross-border payments. Stop us if you've heard that one before. But the Algorand blockchain, built to support billions of users, can boast breakneck speeds and scalability. It takes just 4.5 seconds to make a transfer, big or small. Algo's other selling point is that it is guaranteed never to fork, thus offering an additional layer of long-term reliability.

Solana, a unique DeFi token (SOLUSDT)

Created by former Qualcomm engineers, Solana is a DeFi token with a twist. It introduces a proof-of-history (PoH) consensus combined with the blockchain's underlying proof-of-stake (PoS) consensus. The innovative hybrid consensus model is intended to improve scalability for building dApps, and Solana is noted for its high-speed processing and validation times.

Terra, for stability and security (LUNAUSDT)

The Terra blockchain protocol powers global payment systems but uses fiat-pegged stablecoins as tokens. The intention is to combine the price stability and wide adoption of fiat currencies with the decentralised advantages of Bitcoin (BTC).

Terra offers stablecoins pegged to the U.S. dollar, South Korean won, Mongolian tugrik and the International Monetary Fund's Special Drawing Rights basket of currencies. It intends to roll out even more in the future. LUNA is Terra's native token. It's used to stabilise the price of the protocol's stablecoins and give its holders a say in the protocol's governance.

Aave, the DeFi solution for crypto loans (AAVEUSDT)

Aave (AAVE) is an Ethereum token that powers Aave, a DeFi project formerly known as ETHLend dedicated to facilitating cryptocurrency lending.  Users can participate as depositors that provide liquidity to the market in return for a passive income or as borrowers who can borrow cryptocurrencies in exchange for paying interest. Aave works on automatic liquidity-based market lending with interest calculated on the spot based on asset supply and demand.

And many more!

The other new coins available on StormGain have a variety of functions, from eSports to file storage to exchange systems. They include:

●    Binance Coin (BNBUSDT)
●    Avalanche (AVAXUSDT)
●    eGold (EGLDUSDT)
●    Filecoin (FILUSDT)
●    Chilliz (CHZUSDT)
●    PancakeSwap (CAKEUSDT)
●    SushiSwap (SUSHIUSDT)
●    Enjin (ENJUSDT)
●    Polygon (MATICUSDT)

All 15 new altcoins can now be traded on the StormGain app and web platform.

Build a diverse crypto portfolio with StormGain

StormGain is designed to be your one-stop crypto platform, with full-fledged features for buying, selling, holding and even cloud mining! Any good investor knows that a diverse portfolio is key to mitigating risk and achieving long-term market success. That's why we've expanded our available crypto instruments to include more of the most exciting altcoins on the crypto scene. In addition to a wide selection of instruments, StormGain features super low fees, a fast and user-friendly app, and a loyalty programme for clients with attractive bonuses and rewards.

Registering with StormGain is easy and takes just a few seconds. Sign up now and use up to 300x leverage when trading Bitcoin, Ethereum, Ripple and a wide range of digital assets, including, but not limited to, all of the above!

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