Currency Trading

The Potential Impact of Venture Capital on Cryptocurrencies

It might seem at first glance that there is no place for venture capital in the world of cryptocurrency. After all, many people associate crypto with Bitcoin, which really doesn’t have a company behind it in which to invest. The value of the coins simply comes from the forces of supply and demand. Many people don’t see any kind of intrinsic value in the world of cryptocurrency, hence leaving nothing for those involved with venture capital to sink their teeth into in any way. Yet cryptocurrency goes far beyond Bitcoin, into the realms of coins whose purpose is to fund initiatives involved in all walks of life. Many initial coin offerings come from groups that are essentially start-ups, and their big ideas might indeed deserve the attention of the kind of seed funding for which venture capital was invented.

The Potential Impact of Venture Capital on Cryptocurrencies
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This doesn’t mean that venture capitalists should go around throwing money at every new coin offering that comes down the pike. The same kind of due diligence should be done to any new offering as it would be for a new company seeking early-stage funding. In much the same way, you should be doing due diligence as an investor for any potential coin purchases, which is why a trading robot like Bitcoin Loophole can be such an integral tool. The venture capital world may soon be intersecting with the realm of cryptocurrency. Here’s what it all means.

1. The Pitch

If venture capital fully integrates with crypto, those who are making coin offerings have to work on their salesmanship pronto. It’s one thing to throw a white paper and get the attention of some retail investors for a coin. It’s quite another to bring a venture capital group into the fold. That will require the kind of song and dance that startup managers have been doing for a long time. And that’s a capitulation that crypto entrepreneurs must be prepared to make to draw in this potentially big money.

2. The Applications

What venture capitalists will be looking for are the kind of organizations that have ideas and intentions that go beyond making investors rich. That is certainly a good thing if they can pull it off, but venture capital managers know how to see through empty pitches. What they’ll be looking for are blockchain applications that solve some sort of endemic societal problem or fill a neglected niche. The coins that fund those initiatives will have sustainable value over time.

3. The Long Game

One thing that will immediately follow the incursion of venture capital on the crypto world is that crypto should seem like more of a sure thing for other investors who may have been skeptical. After all, venture capital is now an in and out operation. The investors involved generally will commit their money for years, making for a long-term influx of funds for the coins in question.

Venture capital’s big money may soon be flowing into crypto very soon. What happens next is what all investors in the coins want to know.

Currency Trading

Will Institutional Investors Be A Good Thing for Cryptocurrency?

Up to this point, the cryptocurrency craze is something that has largely been the dominion of so-called retail investors. These are the unaffiliated individuals leading everyday lives who have taken to Bitcoin, Ethereum and the rest of the coins available because of the benefits they provide, as opposed to traditional currencies. These folks have also taken advantage of the rising value of the coins as well, many becoming extremely wealthy due to the increasing popularity. The entities who have been largely left out of the cryptocurrency banks have been the institutional investors, which consist of banks, funds, and larger groups that usually have the advantage over the retail investors in every other aspect of the investment world.

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At some point, the institutional investors are likely to become involved in cryptocurrency in some capacity. There is no timetable for that happening just yet, although some experts think that it may occur sooner than people realize. When it does, the effect on Bitcoin and the rest of the crypto coins might be hard to gauge in the short term, although it seems like a net positive for the long haul. If you plan on investing in Bitcoin or its brethren, a trading program in the mode of Bitcoin Loophole might be the easiest way for you to get through this confusing asset class. Here is a look at what to expect as institutional investors slowly begin their mating dance with the crypto asset class.

1. What’s holding it Up

Right now, the biggest obstacle to institutional investors stepping into the cryptocurrency fray is the lack of a reliable holding area for investment money that is parked in crypto assets. Coin exchanges have proven unable to hold off hackers in many instances, and it’s unrealistic for institutional investors to have giant crypto wallets of their own to store coins away. Until this problem is solved, there likely will be no institutional investment in crypto on a large level.

2. When It Happens

What will happen when the institutional investors become involved is it will in many ways provide the crypto coins with a kind of establishment sheen. It will also likely increase their value since demand will be astronomically greater, so those holding on to the coins should receive a short-term boost as if a stock had split.

3. The Long-Term Outlook

The problem with institutional investors getting their tentacles on crypto coins is that it has the potential to once again put retail investors in the back seat. And that could rob crypto of its very essence, because, if nothing else, it has proven to be a populist currency. The hope is that the retail investors still have a bigger seat at the investing table than they do with traditional stocks, but it is difficult to see how that will happen when the might of the bigger players steps into the picture.

Institutional investment in cryptocurrency seems almost counterintuitive now. But it won’t be long until it happens, and those who are already in the crypto game should be prepared to react.

Currency Trading

Understanding The Mentality for Forex Trading

Most forex traders find themselves struggling to stay profitable in trading forex.

Firstly, a trader has to figure out the best way to stay profitable, which usually boils down to optimizing their trading strategies according to his or her personality, time schedule, and risk appetites. In order to monitor your positions and actually trade, every investor needs to use a specific trading platform. The most famous, reliable and popular is the Metatrader 4. All the biggest brokers in the world use this platform, because its easy, intuitive and very accurate. The MT4 represent the highest level of the online trading.

While implementing strategy is usually not difficult with some online research, the effectiveness is hard to determine as there is no way to guarantee future success using existing strategies.

The more serious issue that most traders face is having the right mentality to stick to his strategy. We take a closer look at the mentality that traders need to win the forex game.

Forex Trading
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Chasing profits leads to losses

Almost everybody goes into because of the money. This can become a problem because traders can end up getting overly obsessed with the paper chase and incur massive losses. One of the leading-difficulties staying profitable in Forex trading is to have the patience and practicality to stick to the winning strategy.

It is all in the mind – the trader needs to leave behind any unrealistic objectives and aims. The concept of making enormous amounts of profits in a couple of trades highly improbable, like winning the lottery.

On the other hand, trading too frivolously and carelessly can cause the investor to lose money quickly. Novice day traders who target daily profits are especially prone to this pitfall.

The overtrading trap Overtrading is caused by seeing chances on the market that are actually not there. Like how a thirsty man mistakes a mirage for an oasis in the desert, traders become blinded by the illusion and falls into deception.

A trader can lose his way and trades in too high, resulting in a high loss. Overtrading is arguably one of the most trading mistakes committed by traders. Most traders tend to be unaware of their overtrading moves and therefore all forex investors have to be thoroughly prepared and understand their mental limitations, so as not to fall into the temptation of greed.

Trading bots give investors an advantage

Fortunately, the mental aspect of trading can be mitigated with the advent of artificial intelligence. Most modern trading bots are programmed with advanced machine learning algorithm to help you stay consistent in your trading strategy.

Trading bots such as Fintech LTD removes the emotional element in trading and allows investors to focus on earning profits, and lets investor’s fine-tune your strategy until they can achieve the profits that they want.

Keep your eyes on the prize

At the end of the day, forex is all about taking calculated risks. Understand that the only control you have in a trade is the amount of money you choose to put in a trade. To succeed in forex, you must first understand yourself and your own abilities.

Ask yourself these questions:

  • What do you think about your abilities?
  • Is forex an appropriate trade for you?
  • What are your weaknesses?
  • Can you control your greed or fears?
  • Can you keep your confidence despite failures?
  • Once you have really pondered on these questions, then you will know if you are suitable to become a forex trader.
Currency Trading

Four Things A Trading Robot Can Do That the Average Investor Can’t

If you are an investor that takes pride in the ability to pick assets and make the correct calls in terms of your investment opportunities, you might think that you don’t need any help. But, in actuality, you might actually be hurting yourself by taking on all of the responsibility for trading by yourself. Especially in a world where digital technology has advanced to the point where even the average person is getting a boost in productivity and efficiency by taking advantage of it, you are actually putting yourself at a disadvantage by not taking every opportunity available to you.

Trading Robot
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That help could come in the form of a trading robot, something enhanced with artificial intelligence that’s designed to create the optimum investing results. There are robots available for practically every aspect of the trading world, such as the QProfit System, for the world of foreign exchange trading. By utilizing one, you will be giving yourself every chance to maximize your profits and build a stable portfolio. If you insist, however, on being a lone wolf, here are some of the things you’ll be missing out on by not employing some digital assistance.

1. Rapid Data Processing

The human brain is an impressive thing, no doubt. But it doesn’t have the capability to process the massive amount of data that is available when it comes to trading assets, everything from price information, trading volume, trends, and much more. A trading robot backed by AI can do that for you, and, even more impressive, it can synthesize it all in a matter of seconds.

2. Time Freeing

To be a great investor, you have to be diligent. And diligence requires a lot of time spent poring over information, information which you couldn’t possibly take in completely take in any way (See Item 1.) If you have a busy schedule, it makes it unlikely that you can possibly commit enough time to this endeavor. The trading robot, on the other hand, can do it all for you and save you that time spent.

3. Quick Decisions

If you do consider yourself an expert investor, you know that timing is a crucial component of a successful trade. You likely have had experiences in the past where you thought of an excellent trade to make only to find that the moment had passed for optimum effect. Having a trading robot working for you every moment of every day will ensure that you can make those trades when they need to be made.

4. Freedom from Responsibility

When you find a trading robot that you can trust, you can rest assured knowing that your portfolio is in good hands. The task of finding a good one should take all of your diligence and caution. But once you’ve made the correct choice, all your investment cares can fall away.

You might be a little wary of putting your hard-earned money in the hands of a trading robot. But once you make that decision, you’ll quickly wonder how you ever got along without one.