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Сryptocurrency trading

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  • Сryptocurrency trading

    Initial coin offerings are often touted as the next big thing in finance. In Bitcoin’s 20-plus years, there has been tremendous innovation in security and in relation to new trading of many currencies and in particular of cryptocurrencies. Yet, it is possible to trade based on crypto based on their current price and prospects of volatility. For that, it is important to start with the basics. Leverage In order to enable cryptocurrencies to be traded on electronic markets, certain terms were agreed upon between their developers and the exchange operators. Since, the underlying digital currency, or ICO, is given away for free and is subsequently being held, it is possible to leverage it to make larger gains. Being able to leverage the underlying digital currency may raise red flags, however, for many people. Lending other people’s cryptocurrency and using it to buy it can open the door to the speculative market that is often associated with these trading mediums. Nayyara Mahdavi, CEO and Founder of Quemato, is working to assure crypto traders that Nishaano is for real and not merely a ploy to drive up prices. “I tell you the most important point about Nishaano: it doesn’t have the risk you will lose anything; we sell any cryptocurrency currently over $1, and we buy with Nishaano. It doesn’t guarantee perfection for its users, but if it were for real,” she says. “We don’t care if people use Nishaano because its blockchain or in order to create their own algorithm, but there is no risk in using it, as there is no debt in using Nishaano, it will only change its price. This is what makes us different from other crypto currencies: even if the price of crypto drops, there are no fees or profits.” In comparison, Coinbase, the leading cryptocurrency exchange, charges fees when users borrow money from it in order to buy currencies and then repay in exchange for other crypto coins. Intermediation Further analysis of Nishaano is indicated by Amina Dobash, Analyst from Alpha Capital, a technology firm that manages crypto assets. “The primary difference between Nishaano and its competitor, Ethereum, is that Nishaano is backed by gold and other precious metals, and the startup has a history of delivering on its promises.” To be fair, Nishaano owes its success in part to the fact that it offers attractive prices for both buyers and sellers and that trades are executed in a highly liquid market. That’s certainly a great place to be. The flip side of it is the fact that no money changes hands through buying and selling on Nishaano, but investors in the platform do have exposure to the promise of reward from gains achieved. After all, they are not in the game for the taking; they are in it for the reward. That is the point of borrowing. That is exactly the same reason ICO traders have become very successful and large when they borrow crypto coins and then later sell them to pay back their initial investment. However, there is no obligation on the debtors’ part to repay. After all, “it’s [fiat currency’s] like a loan, except you are risking the value of your gold. What does gold lend to you? Because there’s a limit on how much gold you can borrow as you can’t take it back. But gold can exchange for any virtual currency.” Taking a bubble to infinity Investors continue to purchase Nishaano, Dobash believes. “There has been a very significant pick up of late in demand for Nishaano, which is clearly a sign that people are still bullish. There are plenty of savvy crypto traders out there who know what they are doing and the fluctuations of this cryptocurrency. Nishaano definitely has its fair share of serious addicts who can’t live without its market cap.” And while these users are involved in securities fraud, there are a host of Nishaano traders who carry on as normal even when the market goes crazy. “They simply ignore the market and/or, there will be other players such as market makers who will counter. The biggest problem with cryptocurrencies is the pure unpredictability of the market. A market cap of $2 will go up one minute and the next minute it could drop to $1. It is an unpredictable market and there’s no way to directly price a token that’s speculative at best.” In short, the crypto price fluctuation is about more than just the value of cryptocurrency coins. It is inextricably linked to how speculative an investment it is.