USD/CHF Price Forecast – Grinding Through Important Triple-Top Formation

Recent price action in the U.S. dollar is showing another attempt to make a clear break above parity against the Swiss franc.  On several occasions, traders bullish on the USD/CHF have failed in their attempts to move into these areas. But bearish traders appear to be in capitulation mode as the market’s psychological levels are slowly being removed. Since last November, this is the fourth time the USD/CHF currency pair has tried to overcome these resistance levels.  But most of the evidence suggests that this most recent attempt could be stronger in terms of its directional influence on the longer-term timeframes.

  • Critical Resistance:   1.00949
  • Critical Support:   0.99525
  • Trading Bias:  Bullish
  • USD/CHF Forex Strategy:  Buy Dip to 0.99600

All of this prior activity has created a triple-top formation on the daily charts, and so a clear break higher from current levels would mark a highly bullish event for those long USD/CHF. Directional behavior in the pair’s moving averages remains supportive, as the 50-day EMA has completed a bullish cross. Indicator readings in the CCI remain healthy, and support in the 0.99525 region looks like it should hold near-term.

USD/CHF Daily Chart
USD/CHF Daily Chart

All of that said, it should be understood that the USD/CHF is not exhibiting forceful breakout behavioral activity. This suggests that the price momentum in the pair is insufficient to buy at breakout levels. Instead, traders should be waiting for a moderate drift back into the aforementioned price support before establishing new long positions. The bias remains bullish, and the outlook suggests dip-buying strategies into the 0.99600 should remain viable going forward. Interest rate differentials between the USD and CHF lend themselves well to long-term holdings, so forex traders do not need to be overly aggressive when taking profits on these positions.

USD/CNY Price Forecast – Verging On Major Breakout

The U.S. dollar is in the midst of a two-stage breakout relative to its long-term performance against the Chinese yuan. The greenback began its major advance in the early parts of 2014, and these trends continued for almost three straight years before showing signs of reversal. The USD/CNY forex pair then fell back through its long-term moving averages before finding its footing in the middle of April of this year. The bull rallies which have followed have been forceful, and the pair now appears to be on the verge of a major breakout which could send its valuations significantly higher.

  • Critical Resistance:   6.9633
  • Critical Support:   6.2419
  • Trading Bias:  Bullish
  • USD/CNY Forex Strategy:  Buy Breakout of 6.9650

The latest impulse moves in USD/CNY have sent the pair back through all of its major moving averages. Activity in the moving averages themselves confirms this activity, as the 50-week EMA has broken above both the 100-week EMA and the 200-week EMA.  Indicator readings are bullish, with the CCI holding within its mid-range levels. This suggests the pair has not yet reached over-extended levels (despite this significant run higher).

USD/CNY Weekly Chart
USD/CNY Weekly Chart

The balance of the evidence here strongly suggests a bullish potential for continued moves higher. Breakout traders can look to establish buy positions on a violation of resistance at 6.9633, which marks the prior highs from the end of 2016. Alternatively, a downside break of prior support at 6.8685 suggests a period of sideways stalling in the pair. Given the extent of the market’s previous run higher, a move like this would not be entirely surprising. Directional behavior in the EMAs for the USD/CNY pair appears to be readying for a more elevated approach, so traders can look to these indicators for further evidence of reversal within the dominant trends.

Interview with FP Markets

FP Markets is a provider of CFD and Forex trade platforms providing execution services to clients from over 100 countries from around the world. The business is 100% Australia owned with its headquarters in Sydney. Founded and regulated by the Australian Securities and Investment Commission (ASIC) in 2005, FP Markets has a strong operational track record over the past 14 years.

The company now has offices worldwide and it services thousands of clients from around the world and executes billions of dollars of transactions each month.

FP Markets offers over 10,000 trading instruments across Equity CFDs, Futures CFDs, Indices, Forex and Bitcoin, making it one of the largest offerings in the industry.
We will learn more about FP Markets from the company’s Managing Director, Matthew Murphie.

  • FP Markets have been around for several years, can you tell me a little more about the history of the company?

FP Markets was regulated by the Australian Securities and Investment Commission in May 2005 and rapidly became the largest equity CFD broker offering DMA (Direct Market Access) equities in Australia. In 2013, the company extended it’s offering to Forex, Commodities, and Indices and more recently Cryptocurrencies, all offered via a true ECN model, in line with the company’s heritage.  

The company’s long history has enabled it to learn many lessons about combining outstanding pricing, technology, and support which has enabled it to be one of the largest and most popular brokers in Australia.  

FP Markets executes billions of dollars’ worth of transactions daily and has thousands of clients from around the world who are supported from our head offices in Sydney and London, along with support offices around the world.  

  • In this competitive and crowded industry, what sets FP Markets apart from other brokers?

Despite tough competition, we remain one of the most awarded brokers for what matters most: fastest execution speeds, value for money and customer service. We are officially home to the most satisfied clients in the world according to Investment Trends, which is the largest independent industry research provider.

The fact that clients are increasingly well-educated in the market provides us with a great advantage, as they understand not only the cost savings we offer through unbelievably tight pricing, but also the benefits of reliable pricing and other associated benefits that come via our cutting-edge technology. The clear benefits that we offer over European brokers operating in Australia mean we have competed fiercely, and we are confident that the trading environment we offer will set us apart in Europe as it has in Australia.   Our heritage is in DMA/ECN and that very much remains in the company’s DNA to this day with our multi-product offering across several platforms, including MT4, MT5, and IRESS.

FP Markets has invested millions in combining bespoke infrastructure, client portals, analytics and reporting with the industry’s most popular and robust trading platforms (MT4/5 and IRESS) and Equinix NY4 Data Centers (for the speed of execution) and advanced price-aggregation technology to ensure the best available prices are offered. This has earned FP Markets a strong reputation in Australia and in other global markets.

  • What is your view on the recent ESMA legislation around leverage and do you expect ASIC to bring margin rates and bonus promotion rules in line with ESMA?

I support the improvements in regulation, however, at the same time, I feel that the focus on education should center around risk management and risks of the product itself rather than capping leverage.  There is no doubt that clients should be well-informed before trading any high-risk product. Ultimately, I believe in free will, and, provided clients have the knowledge required, I do not believe that the decision-making process should be taken out of their hands completely. The knock-on effect of over-regulation is inevitably traders seeking unregulated, offshore trading firms to continue trading as usual. Ultimately, people want to trade and that is not going to change.

Regarding ASIC, it is increasingly likely that there will likely be some consolidation in the market and a move towards addressing some of the issues that ESMA have attempted to address with their new regulations.

My prediction for 2019, is that increased regulation ESMA and its effects will continue to re-shape the business. The main reason that this legislation was brought in was to eradicate the rogue element of unregulated and unscrupulous brokers and I hope that this continues so that we are left with a smaller number of well-regulated and compliant brokers who are battling with one another to offer clients the most competitive trading conditions.

  • Where is FP Markets regulated and what are the most significant regulation updates for 2018/2019?

Founded and regulated by ASIC in 2005, FP Markets has a strong operational track record over the past 14 years. The company has headquarters in Sydney and has offices in several cities worldwide and is in the process of becoming regulated in the EU.

With regards to regulation, as stated I think we will see a knock-on effect from ESMA’s leverage restrictions with other regulators taking steps to follow suit in some way.  Another topic worth following closely is the fast-evolving issue of ‘social regulation’ and power of quasi-regulators (such as Google, Apple, Mastercard, and other payment providers.

  • What are the main reasons that FP Markets has grown so quickly over the past 2 years?

FP Markets has grown quickly as a decision was taken to take the company to a different level to make it recognized globally, as it currently is in Australia, as the leading industry brand.

We brought Craig Allison on board as our Global Head of Development and working together closely, we have implemented a clear strategy making key improvements and continue to strengthen our global team with key appointments. The arrival of Craig has driven our expansion to add other offices and markets to our already strong client base of Australia and our aim is to continue to grow and improve the business at a similar pace by investing in people and technology and by continuing to put clients’ needs at the heart of our offering.

eToro: A New Innovative Partner in FC Midtjylland

In England: Premier League club Tottenham Hotspur, in Germany: Eintracht Frankfurt from the Bundesliga, and now in Denmark: defending champions FC Midtjylland, are the latest unique marketing platform for eToro.

eToro provides and commodities. The brand is well recognized and represented in more than 140 countries worldwide.

We are very happy to proudly present eToro as a new partner in our club. We are a good match because both eToro and FC Midtjylland are companies who excel at disrupting their respective industries”, says Jacob Jorgensen, commercial director at FC Midtjylland.

The partnership between eToro and FC Midtjylland brings together two innovative businesses with aligned philosophies.  Both companies lead their fields by leveraging data and analysis, and eToro has been impressed with how FC Midtjylland can bring new expertise to an “old school” sport.

Jacob Jorgensen adds: “eToro was attracted to us because of we, just like eToro, go for top performance and top results every day. We are sure that FC Midtjylland can help eToro achieve its objective of taking its brand awareness to the next level here, boosting eToro’s growth in the Danish market.”  

Yael Moscovich, Nordics Regional Manager at eToro comments: “We are very pleased and excited to partner with FC Midtjylland. This deal follows partnerships in Germany and the UK as part of our ongoing efforts to raise awareness of eToro”. 

“eToro’s vision is to open the global markets for everyone to trade and invest in a simple and transparent way. Our platform gives investors of all types access to the assets they want today from commodities and stocks, through to crypto assets. They also benefit from being part of a global community of more than 10 million registered users who share their investment strategies and insights and anyone can follow the approaches of those who have been the most successful.” 

About eToro
eToro empowers people to invest on their own terms. The platform enables people to invest in the assets they want, from crypto assets to stocks and commodities. eToro is a global community of more than ten million registered users who share their investment strategies and anyone can follow the approaches of those who have been the most successful.  Users can easily buy, hold and sell assets, monitor their portfolio in real time, and transact whenever they want.

eToro is regulated in Europe by Cyprus Securities and Exchange Commission and regulated in the UK by the Financial Conduct Authority.

Training Before Trading – Not Just Numbers

Limassol, Cyprus: Stratton Markets, your friendly and education-centered broker, officially launched its website for customers from 29 European Countries (EEA), including Switzerland. Stratton is operated by F1Markets Ltd, regulated by CySEC (license 267/15) and registered in the majority of European countries. The trading platform gained a lot of its experience, as well as an understanding of traders’ needs, from F1Markets’ great market wisdom. The new brand officially launched their European website www.strattonmarkets.com on Monday, November 5th, 2018.

Stratton’s own Chief Trading Educator, James Trescothick, is an experienced trader with more than two decades of accomplishments in the financial industry. When it comes to Stratton, he states: “We share the same beliefs, that trading should be personal. And that finances only come after your personal health and that of your family. That’s why the approach we take, is to make our traders feel they matter and they’re not just a number. As well as that, with all the market noise that’s out there, we try and educate our traders in a no-nonsense, gimmicky fashion. Instead, we strive to provide our traders with real education that will really help in developing them into the trader they deserve to be.”

What was built from the core idea that traders matter, has brought to life Stratton Markets – an STP trader-focused brand, that focuses on delivering great quality by offering:

  • highly competitive trading conditions, based on traders’ experience;
  • a great assortment of CFD assets (commodities, metals, energy assets, currencies and cryptocurrencies, indices and shares);
  • Stratton Library – a well-built media center with eBooks, video tutorials and webinars;
  • An online Stratton Trader platform, as well as the well-known MT4, with Android downloadable version;
  • Five of the most used European languages – Italian, German, Dutch and

Even though Stratton is new, the engine that keeps it going is the desire to provide great support, education and valuable insights for creating the knowledgeable traders of tomorrow. This happens to also be the essence of Stratton’s mission statement, that is carefully focusing on implementing the latest European regulations.

For more information about this, please contact Leyla Kohen, at +972 523502288 or leyla@bugfreakmedia.com.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of the retail investor, accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your moneyץ

Crypto Give-Away Bonanza at This Year’s Web Summit

This year’s Web Summit conference sees over 69,000 attendees from 159 countries gathered in Lisbon to hear over 1,200 speakers. With 1,800 start-ups, 1,500 tech investors and 2,600 media in attendance, it is perhaps no surprise that crypto companies are taking the opportunity to make their mark at the event.

On stage at Web Summit, Blockchain, one of the world’s leading crypto wallets, announced that they have partnered with the Stellar Development Foundation to give away $125 million worth of Stellar lumens (XLM). Positioned as an ‘airdrop’, anyone signing up to the waitlist will receive about $25 worth of lumens. The offer is open to anyone with a Blockchain wallet and the first batch of recipients will receive their lumens later this week.

The blockchain is not alone in wanting to share the free crypto love. Global, multi-asset investment platform eToro announced the rollout of their highly anticipated crypto wallet. At launch, users will be able to store Bitcoin, Bitcoin Cash, Ethereum and Litecoin in their eToroX wallet. eToro has said that additional functionality is coming soon including more coins, fiat tokens, crypto to crypto conversion, the ability to deposit fiat, payment in-store and more. The first 100,000 people to download the new eToroX wallet will receive 0.1 Ethereum free which today equates to $21.

BTC.com, the digital currency platform, is also giving away cards containing free Bitcoin Cash (BCH) when you visit their stand and download their wallet. The cards contain 0.0030 BCH, approximately $2. Designed to promote the adoption of crypto, BTC.com’s stand provides everything a novice needs to know to start their crypto journey including help setting up a wallet and a quiz.

Echoing BTC.com’s focus on educating newcomers to crypto, Bitstamp, the crypto exchange, have launched a quiz – #cryptomyths – to help people separate the myths from reality in order to understand what to trade. Participants earn a starting bonus fee of $10 applicable when they make their first trade on the exchange.

While critics of crypto will doubtless label these initiatives as marketing ploys, these giveaways serve to raise awareness of crypto and drive adoption. Who wouldn’t want some free crypto!

eToro Rolls Out Crypto Wallet

eToro, the global investment platform with over 10 million registered users, today confirms the rollout of its crypto wallet.

The eToro wallet is a mobile application available via Google Play and the Apple App Store. It provides an easy to use customer interface and enhanced security. Multi-signature* security gives users the ability to see their on-blockchain transactions and balances without the fear of losing their private key**.

Yoni Assia, CEO of eToro comments: “We believe that crypto and the blockchain technology that underpins it will have a huge impact on global finance. Blockchain has the potential to revolutionize finance and we believe that we will see the greatest transfer of wealth ever onto the blockchain. We believe that in the future all assets will be tokenized and that crypto is just the first step on this journey. Just as eToro has opened up traditional markets for investors, we want to do the same in a tokenized world. The eToro wallet is a key part of this.”  

In order to ensure the best customer experience for clients, eToro is launching its crypto wallet on a phased basis both in terms of users, with a country by the country roll out, and functionality.

At launch, users will be able to store Bitcoin, Bitcoin Cash, Ethereum and Litecoin in their eToro wallet. The number of supported cryptos will increase over time just as eToro has increased the number of cryptos available on its platform.

Initially, the ability to transfer crypto from eToro to the wallet will be available to Platinum Club*** members for Bitcoin. This will gradually be extended to more users and a greater number of crypto assets.

Yoni Assia continued: The eToro wallet today is just the beginning and we will adding a whole host of additional functionality which will include supporting additional crypto and fiat tokens, crypto to crypto conversion, the ability to deposit fiat, payment in-store and more.”

 

About the wallet

The etoro wallet is provided by eToro X Limited (“eToro X”).  eToro X is incorporated in Gibraltar with company number 116348, registered office 57/63 Line Wall Road, Gibraltar (“eToroX”). eToro X has received an ‘in-principle’ approval from the Gibraltar Financial Services Commission in respect of its application for a Distributed Ledger Technology (DLT) Provider Licence application.

About eToro

eToro empowers people to invest on their own terms. The platform enables people to invest in the assets they want, from stocks and commodities to crypto assets. eToro is a global community of more than ten million registered users who share their investment strategies, and anyone can follow the approaches of those who have been the most successful. Due to the simplicity of the platform users can easily buy, hold and sell assets, monitor their portfolio in real time, and transact whenever they want.

eToro is regulated in Europe by the Cyprus Securities and Exchange Commission and regulated by the Financial Conduct Authority in the UK.

Cryptoassets are unregulated and can fluctuate widely in price and are, therefore, not appropriate for all investors. Trading crypto assets is not supervised by any EU regulatory framework. Your capital is at risk.

Trading plan for November 6

$50 Welcome Bonus – the easiest way to progress on Forex

As we can see from the economic calendar, there are not so many events. The currency pairs will be driven mostly by the news factor.

The main event for the US dollar for today is mid-term Congressional elections. There has been speculation that the opposite party of Democrats will likely take control of the House of Representatives. If it happens, the USD will be weak.

In other news, the employment data for New Zealand will come out at 23:45 MT time. According to experts, the employment change will increase by 0.5%. A higher-than-expected data will be good for the currency. The level of unemployment will reach 4.4%. If its actual level of an unemployment is lower, the kiwi will be supported.

Now let’s turn our attention to the charts.

At first, let’s look at the US dollar index. As we can see, the direction of the price, for now, is uncertain. If the Democrats win, the greenback will fall. In that case, watch the support at 95.7. If the Republicans win, the greenback can move up to the resistance at 96.35.

GBP/USD is mostly driven by the Brexit news. Since the beginning of the week there have been talks about reaching an agreement soon, however, an Irish border issue still triggers both sides.  Positive news on the outcome can lift the cable above the resistance at 1.3105, otherwise, it can fall towards 1.2899. We will keep you updated on the situation.

As for NZD/USD, the pair was supported last days by positive news on the possible trade talks between Chinese president Xi and US president Trump. For now, the pair is testing the resistance at 100-day MA at 0.6658. If the employment data will outperform the forecasts, it can rise towards 0.6719. If the USD is strong, the pair will fall. The first support at 0.6615.

Cryptocurrencies – The Month That Was and the Month Ahead

As always with the end of the month, we discuss the greatest daily and hourly price moves on virtual currencies in the past month. What’s the point? First, we want you to get ready for the next trading opportunities to come in November. Second, looking back at these events may help you predict similar moves when the cycle repeats and trade at the time when buying and selling CFDs with a leverage really pay off.

A sideways trend with three major events

As many people have noticed on the Bitcoin Group on SimpleFX WebTrader Shoutbox, the second part of 2018 is not great for Bitcoin day trading. Cryptocurrencies didn’t lose value, but CFD traders wouldn’t mind if they did. All they want is the prices to change a lot. They want volatility that allows them to open a short or long position, hedge and take profit.

BTCUSD Chart
BTCUSD Chart

As you can see on the chart, Bitcoin in October was quite boring most of the time drifting sideways. However, there were three big price movements that for sure brought fortune to smart CFD investors. Let’s take a closer look at them and see what we can learn from the cryptocurrency markets in October.

Global economy outlooks causing a wide market crash

October the 10th was an exciting day for Bitcoin and other digital currency short sellers. On this day the market capitalization of the crypto industry shrank by roughly $13 billion in just three hours. Ethereum and Ripple lost the most that day as the Bloomberg Galaxy Crypto Index fell by 11 percent in just a few hours.

Bitcoin plummeted below the $6,300 threshold, which created additional opportunities for traders reading the market trends with technical analysis.

Was it predictable? The cryptocurrency sell-off happened at the time the global stock market hit the eight month-low. The Nasdaq tech giants – Amazon, Facebook, Netflix, and Apple – were leading the falls.

The impulse came from the International Monetary Fund published “World Economic Outlook” report where it downgraded the forecast of the global economic growth for 2018 and 2019. IMF chief economist Maurice Obstfeld underlined to the threats of US-China trade war and the uncertain future the UK and Brexit.

Additionally, in the report IMF warned about the cybersecurity threats and attacked the crypto market directly stating:

“Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system”.

This caused some attractive short time price movements. However, as you can see on the Ripple 15M chart below the situation soon stabilized, and the day traders who missed that day could regret it.

XRPUSD Chart
XRPUSD Chart

A flash spike on the 15th of October

The second major crypto price movement in October was much more unexpectable. Suddenly on October the 15th Bitcoin skyrocketed and broke $7000 limit. The rise in price was remarkably short term as in the next couple of hours the price came down to $6,500 and drifted on.

Once again the traders that were active during these four hours could profit from the dynamic price movements. Ideally taking a long position first, and then shorting Bitcoin or other cryptocurrencies. On the other hand, the move was so unexpected and brief it was very risky to open any bigger position during this time. It was an ideal moment for speculative orders with high leverage.

Surprised by taxes?

October ended with one more interesting event you could use to trade cryptocurrencies. This time, savvy traders could predict it easily.

Litecoin Chart
Litecoin Chart

On the 29th of October Bitcoin investors who made huge profits in 2017 during the crypto, bonanza had to file their capital gain taxes in the US. As it usually happens the inexperienced investors were surprised by the amount of taxes they needed to pay. As a result, some of them had to get rid of their coins, causing a local price slump.

CFD traders who were able to predict this scenario or at least remembered to stay active at the end of October during the tax-filing period could have opened some lucrative positions on practically any tradable cryptocurrency: Bitcoin, Ripple, Ethereum, Litecoin or Bitcoin Cash.

BCHUSD Chart
BCHUSD Chart

November outlook

It looks that in the near future the price of Bitcoin and altcoins will stabilize, which is a good sign for long-term direct cryptocurrency investors and enthusiast, but not so good for the CFD traders that are looking for exciting trading opportunities that come with price volatility.

One interesting takeaway from the October events is the growing correlation between Bitcoin and Nasdaq index. It seems that big market players are seeing similarities in the two assets. Both are tech-based and both aim at disrupting old business models and fiat currency systems.

November may be the time of steady growth for cryptocurrency coins and tokens with several random high volatility events similar to the ones we saw in October.

For the time being Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Ripple investors should stay plugged into the crypto related news and watch closely the biggest Nasdaq companies.

Make sure that when the opportunity happens you have access to a fast trading platform with some funds in the deposit, so you can benefit from price movement even opening some small positions with high leverage. SimpleFX WebTrader is a perfect tool for reactive cryptocurrency trading.

What’s the most important, with SimpleFX you can trade with no minimum deposits. Just choose the most comfortable payment method and get ready to profit from crypto events in November.

How to Start Investing in ETFs With €1,000

You’ve probably heard the phrase ‘you need to invest for the future’. Whether it’s family or friends, or wealth gurus like Warren Buffett or Tony Robbins, learning to invest is high on the list. However, like most people, you may be disenchanted with the current savings rate available at your local bank. Maybe you’ve considered investing in the stock market to try and find the next Amazon. After all, if you had made a $1,000 investment when Amazon first started publicly trading in May 1997, then in September 2018 that would have grown to around $1,362,000.

However, finding the next Amazon and investing in it at the right time is not the easiest thing to do. But is there a solution that can help investors to try and gain access to better returns than the bank? without spending all their time trying to find the right company to invest in? Yes, there is – they’re called ETFs, or Exchange Traded Funds. But first let’s take a quick look at what is possible when starting to invest with 1,000 EUR:

Investing Basics: The Bank vs.The Stock Market

When you are aiming to invest for the future, it can be helpful to look at the possible returns across different investing scenarios. In this case, we’ll look at investing in a savings account versus investing in the stock market.

  • Bank’s interest rate with singular investment: Imagine you put 1,000 EUR into a simple savings account, which paid an interest rate of 3% per year. If you left the money in the bank for 40 years, how much would you have? Well, that pot would have grown to EUR 3,262.04 – hardly life-changing for most people. Let’s see if we can try to increase the overall return in the second scenario:
Source: The Calculator Site: A 1,000 EUR investment, with 3% interest per year for 40 years.
Source: The Calculator Site: A 1,000 EUR investment, with 3% interest per year for 40 years.
  • Bank’s interest rate with regular investments: Now, imagine if you also managed to save an extra 100 EUR a month. With the same initial 1,000 EUR, and the same 3% interest rate, in 40 years that same bank account would now hold 95,207.23 EUR. Now that account balance graph is starting to look a bit better! But can we go further?
Source: The Calculator Site: A 1,000 EUR initial investment with 100 EUR saved per month, with 3% interest per year for 40 years.
Source: The Calculator Site: A 1,000 EUR initial investment with 100 EUR saved per month, with 3% interest per year for 40 years.

Stock market returns with regular investments: We already know that regular investing trumps singular investment, as shown by the returns of scenario one and two. Now let’s say we turned to the stock market to try and increase the yearly percentage gain. The S&P 500 index, which tracks the largest 500 companies listed on the New York Stock Exchange, has made an annualized return of approximately 10% a year between 1928 to 2017. An initial 1,000 EUR investment, with regular 100 EUR monthly investments, at a 10% interest rate, in 40 years would now hold 604,720.00 EUR.

Source: The Calculator Site: Scenario 2 with annualised stock market returns at 10% per year
Source: The Calculator Site: Scenario 2 with annualized stock market returns at 10% per year

Of course, this is just a hypothetical example, and returns will vary as past performance is not indicative of future performance. However, it is pretty clear as to why billionaire investors like Warren Buffett invest in the stock market. So how can one get started in investing in the stock market? There are a few ways, but one could take on billionaire investor Warren Buffett’s advice as a good starting point:

Warren Buffett and the S&P 500 Index ETF

Warren Buffett dubbed the ‘Oracle of Omaha’ is one of the best investors of all time. At his 2004 company shareholder meeting, Berkshire Hathaway, the billionaire investor was asked by one investor whether he should buy Berkshire Hathaway stock, invest in an index ETF, or hire a manager to do it. Here was part of Buffett’s answer: “Just pick a broad index like the S&P 500. Don’t put your money in all at once; do it over a period of time. Vanguard. Reliable, low cost.”

Well, from the different returns within scenario one and two that we looked at before, that makes a lot of sense. But what does he mean by Vanguard and the S&P 500? He is referring to a very popular ETF called the ‘Vanguard S&P 500 ETF’. And what is an ETF? Let’s take a look:

What Are ETFs and Why Are They Popular?

An ETF stands for an ‘Exchange Traded Fund’ and was first created in 1990 in Canada. The concept of ETFs is simple – it’s all about pooled investing. Essentially, ETFs are investment funds that aim to track the performance of a specific index. For example, the Vanguard S&P 500 UCITS ETF aims to track the performance of the S&P 500 Index, which is a basket of 500 of the largest US stocks.

However, many investors use ETFs for the benefits of diversification, as well as to access new markets. For example, you may have recently heard a lot about the growth of AI (Artificial Intelligence). However, you may not be comfortable in finding the right company to invest in, or trade on, as it is still a very new area. In this instance, an investor could turn to the Global X Robotics & Artificial Intelligence ETF.

This particular ETF seeks to invest in companies that stand to benefit from the adoption of robotics and artificial intelligence. Therefore, this can provide the investor with access to a growing market, without searching for just one individual company. The ETF market has grown considerably, and in 2017, was worth $3.4 trillion. So how can you actually start to invest in ETFs? You could use Admiral.Invest!

Why Invest in ETFs with Admiral. Invest?

Admiral Markets offers different account types covering investing and trading. Admiral. Invest allows you to invest into stocks and ETFs from fifteen of the largest stock exchanges in the world. You also have access to:

  • Free real-time market data
  • Complementary premium quality market updates
  • Extensive market coverage
  • Low transaction commissions and no account maintenance fee
  • Dividend payouts
  • State of the art trading platforms

Accounts are available to all clients who accept the general terms and conditions, with a minimum funding requirement of just 500 EUR. So now you know how to start investing, let’s take a look at how to identify the best ETFs to invest in:

Picking the Best ETFs to Trade

While many investors will be happy with the 10% annualised return available with the S&P 500 index, some will prefer to diversify their portfolio, to find other markets that could increase their overall return. Some investors may also like to invest into something they know more about, such as technology stocks. The Nasdaq 100 Index, which tracks the top 100 tech stocks on the Nasdaq exchange, achieved an annual return of 28.24% in 2017 alone. This is why more and more investors are learning how to invest in ETFs, and are searching for the best performing ETFs to invest in. After all, finding a suitable Nasdaq ETF, or a Nasdaq Index ETF, can make a big difference.

So how could you have invested in this particular index?

There are many ETFs that track the performance of the Nasdaq 100 index. For example, there is the First Trust NASDAQ-100 Technology Index Fund ETF (QTEC). This gives the investor exposure to a broad range of technology stocks like Facebook, Apple, Amazon, Netflix, and Google, in the form of ETFs. However, there are other areas and sectors for professional traders to consider.

The Different Types of ETFs

There are a variety of ETF funds and ETF stocks that you can trade, such as:

  • Country specific ETFs – you can access stock markets from around the world you may have otherwise found difficult to access. For example, if you think that Taiwan’s stock market is going to move higher, you could trade the iShares MSCI Taiwan ETF.
  • Sector specific ETFs – if you have the viewpoint that the UK property sector may struggle you could trade the iShares UK Property UCITS ETF. And because it is a CFD, you can trade short, as well as long.
  • Commodity specific ETFs – through ETF CFDs such as the SPDR S&P Metals & Mining ETF, you can gain exposure to the global metals and mining market, rather than attempting to find the right metal to trade, or the right mining company to invest in.
  • Index specific ETFs – as we’ve discussed already, you could trade the S&P 500 Index ETF through the Vanguard S&P 500 ETF.

There are many more types of ETFs to choose from that cover bonds, currencies, new growth markets like biotech, artificial intelligence, and so on. However, one area that has always fascinated investors is in finding the best technology stocks, and technology ETFs to trade. After all, we all use technology in our daily lives, and companies are always breaking new ground with their innovations. So, let’s have a look at the tech ETF sector in a bit more detail:

Understanding the Tech ETF Sector

Within the $46.6 trillion market cap of the S&P 500 Index, more than 20% of it is apportioned to technology stocks. This makes it the biggest group within the overall index.

Traditionally, investors have stuck to the broader market indices like the S&P 500. However, with changing markets and new products becoming available to investors and traders alike, traders can take advantage of movements within these niches. Let’s take a look at some examples:

  • If you invested $10,000 into the Vanguard 500 Index (which tracks the S&P 500) on 28 February 1997, 20 years later the value of the investment would have grown to $42,650.
  • If you invested $10,000 into Apple on 31 December 1980, then that would have grown to $2,709,248 by 28 February 2017, providing an annual return of 16.75%.
  • If you made a $1,000 investment when Amazon first started publicly trading in May 1997, then in September 2018 that would have grown to around $1,362,000.

You can see why investors and traders alike are keen to find the best technology stocks and best technology ETFs to trade with. Of course, trying to find the next FANG stocks may take years, if not a lifetime (FANG stocks is a term coined by CNBC’s Jim Cramer as an acronym for Facebook, Apple, Amazon, Netflix and Google). However, while you can’t trade a FANG ETF, or Facebook ETF, an Amazon ETF or a Google ETF, there are some options for those looking for exposure in a technology ETF. Let’s take a look at some options available to invest in with Admiral Markets on the MetaTrader 5 (MT5) trading platform:

Investing in the Best Technology ETFs

There is a huge variety to choose from when trying to select the best technology ETF. Here are just a few to get you started:

Technology Select SPDR Fund ETF (#XLK)

This broad based technology ETF is one of the most popular ways to trade on the tech sector. It has seventy five stocks within it, including the heavyweights of the industry, such as Apple, Microsoft, and Facebook. However, with over 16 percent of the portfolio weighted towards Apple, it may struggle when Apple’s stock struggles. Here is a chart of how it has performed in recent years:

XLK Weekly Chart
XLK Weekly Chart

This tech ETF actually spent much of 2015, and half of 2016 in a trading range. This is a type of market condition in which prices are contained in between two price levels, as neither buyers or sellers want to take control. How do we know this? By using trading indicators. The two lines featured on the chart above are moving average indicators. They help to determine whether the market is trending or not. Essentially, they calculate a user defined amount of previous closing prices, to then find the ‘average’ price of that series. This is then plotted on a chart, such as the one above. The blue line is the 20 period simple moving average, and the red line is the 50 period simple moving average. In essence, these lines have plotted the average price over the past twenty and fifty bars.

However, what is most interesting to traders is that during the trending period when the moving averages are moving up in a smooth fashion, this indicates a strong trend that is going higher. In the range based period between 2015 and half of 2016, you can see that the moving averages are actually moving sideways. This is just one type of useful trading indicator available on the MetaTrader 5 platform.

iShares PHLX Semiconductor ETF (#SOXX)

PHLX Weekly Chart
PHLX Weekly Chart

Whilst the previous tech ETF covered a broad range of technology stocks, this ETF is much more specific. As the ‘semiconductor’ part of the title suggests, this ETF focuses on the hardware of all the other software and internet stocks. The ETF contains some of the biggest hardware companies in the sector such as Nvidia Corp and Intel Corp, amongst others. Through the use of support and resistance levels, traders can determine that this particular ETF formed a symmetrical triangleformation across 2017 and 2018. This is a consolidation pattern which suggests neither buyers or sellers want to control this market, and that a breakout is imminent. In this particular instance, the market broke to the downside.

Are There Any Risks With ETFs?

There are always risks associated with investing. However, there are some specific risks associated with ETFs that are important to know.

  • Market risk: ETFs are designed to follow a basket of securities, an index, a commodity asset, or even a derivatives contract (like oil futures for example). Therefore, you make profits in the good times, but also take a hit when it falls. As you can’t change the structure of the ETF, when you are trading you have no choice but to follow the performance of what the ETF is doing, whether it is good or bad – that is, until you decide to close out of the investment.
  • Too much choice: As ETFs keep on growing, so does the choice of what to invest in. For example, investing into a biotech ETF may sound simple. However, the difference between the best performing biotech ETF, and the worst performing biotech ETF, was more than 18% within a few years. This is because one ETF holds a company that is looking to cure cancer, and another ETF holds companies that provide the tools for the life sciences industry.

Index ETFs, such as the S&P 500 index ETF, are the most common forms of investment within the ETF industry. That’s because they provide the highest liquidity, and is likely to be the best place to start when first investing.

Conclusion

Investing with just 1,000 EUR can make a meaningful difference in the long term. You have seen how gains could be accelerated by adding extra funds on a monthly basis, providing that your annual rate of return remains positive. Of course, the key to everything in terms of investing, is the rate of return. This is why many investors participate in the stock market – to try and get a better rate of return compared with what is offered in a normal bank savings account.

Investing in ETFs allows more diversification into different sectors and markets. For example, you could find the best technology ETF, or you could go more specialised and find an ETF that focuses specifically on hardware, or cybersecurity. Admiral. Invest allows you to invest into stocks and ETFs from fifteen of the largest stock exchanges in the world. By using the MT5 platform, investors can access charts and indicators that are used for the technical analysis of different kinds of ETFs.

Stock Market Facing a 2019 Crash: 70% Correction Warning

July 2019 will mark exactly 10 years since the end of the Global Financial Crisis in 2009. It will also mark the longest period of economic expansion on record, surpassing the 1991 to 2001 internet boom.

The question – Is the current boom sustainable?

The 90s economic boom was fuelled by the internet. This economic recovery has been fuelled by historically low-interest rates and cheap credit – a situation many investors and economists say cannot last.

Warning Signs: The End of the Economic Boom

2018 has been the most volatile year in the stock market since the recession, and volatility can make stock market crises more likely.

most volatile year
Source: CNBC

Yet, volatility is just one reason the world’s biggest hedge fund managers and leading economists are predicting a 2019 crash. Another reason is rising interest rates.

The Interest Rates and Financial Crises Relationship

As the US economy firing on all cylinders, the Federal Reserve has increased interest rates eight times since 2015. However, as the US nears full employment, there is an increased danger of rising inflation and consumer prices.

Increasing interest rates is a strategy to curb the rise of inflation – increasing the cost of credit and making saving more attractive strikes a balance between people spending and saving.

However, there are also dangers to this approach. Lower consumer spending has a negative impact on the revenue of consumer-facing businesses. Declining revenue then tightens spending across both the consumer and business landscapes. At the same time, higher interest rates make it harder for financially weak companies to meet their debt obligations.

In a vicious cycle that can lead to economic shrinkage, falling stock prices, and stock market crashes, it’s not surprising that interest rate hikes have preceded over 10 economic recessions in the past 40 years.

Source: Forbes
Source: Forbes

Expert Predictions: A 70% Stock Market Crash

Increased volatility and rising interest rates are leading investors and economists to warn of an impending stock market crash.

According to hedge fund manager Paul Tudor Jones, “We have the strongest economy in 40 years, at full employment. The mood is euphoric. But it is unsustainable and comes with costs such as bubbles in stocks and credit.”

Scott Minerd, Chairman of Investments and Global Chief Investment Officer of Guggenheim Partners has forecast a 40% retracement, while economist Ted Bauman believes the market could fall by 70%.

Finally, the CIA’s Financial Threat and Asymmetric Warfare Advisor Jim Rickards has claimed that a 70% drop is the best case scenario.

How Traders Can Take Advantage

With great volatility can come great rewards, and the right financial instruments give traders the opportunity to profit in both rising and falling markets.

By using share CFDs and index CFDs, traders can turn any potential market crash into a profit, or hedge their existing investments until the market turns, with short trades. However, keep in mind that volatile markets can result in higher trading risks, so proper risk management and volatility protection is essential.

SimpleFX Adds 50 New Trading Instruments

One of the fastest growing CFD platforms has recently launched the new version of its flagship product SimpleFX WebTrader. Now the platform adds new trading instruments, which are all available under the $500 limited-time cashback promo.

Day trading rollercoasters

If you are into maximum volatility, you will enjoy the introduction of Bitcoin Cash. The cryptocurrency came to life after a group of Bitcoin developers decided to split the blockchain in August 2017. At the moment it’s the fourth largest cryptocurrency after Bitcoin, Ethereum and Ripple.

Bitcoin Cash Daily ChartA 1-day chart of BCHUSD shows that the huge daily price changes may return soon.

Nasdaq adds to SimpleFX trading platform are also very volatile. You will definitely enjoy cannabis stock exchange stars.

Tilray Inc. is the first cannabis company in the US that went public. Established in Nanaimo, Canada, Tilray was the pioneer cannabis exporter of medical marijuana to Australia and New Zealand. Due to the limited number of shares available Tilray is, like many other low-float stocks, a day trader’s favorite.

GW Pharmaceuticals is the second Nasdaq marihuana business. With headquarters in Cambridge, UK, the company specializes in medical applications of natural cannabis derivatives, which can be used in treating sclerosis.

GWPH Daily Chart1-day chart of GWPH.US, the Nasdaq company is highly appreciated by day traders

Corporate giants on the biggest exchanges many follow with interest

Some interesting New York Stock Exchange, London Stock Exchange, Euronext Paris, and Tokyo Stock Exchange adds are the iconic brands such as Nike, Walt Disney, General Motors or Airbus. These options are perfect for traders that follow trends in sports fashion (and sports advertising), film industry or are interested in the future of motorization and aviation.

Local giants, such as Tesco, Lloyds Bank, Suzuki, Societe Generale, or Renault are a perfect trading instrument for SimpleFX users that are somehow connected with the UK, Japan, or France. These major regional corporations’ stock is often affected by macroeconomic trends and political events. You can make a winning trade on the base of a news event you closely follow.

TLRY Daily Chart
Since the debut in August 2018, TLRY.US has shown some extreme volatility (1-day chart).

Investing in Turkey and Brazil

The Brazilian and Turkish stocks are especially interesting adds. Both countries are one of the biggest growing economies in the world. Both countries are regional powers, and their biggest stock companies are interesting to watch. At the same time, these financial markets are very volatile themselves. Several monetary crises have occurred in Turkey and Brazil in recent years.

The two stock exchanges – BM&F Bovespa and Borsa Istanbul  – are operating in relatively young democracies, thus are sensitive to political changes. You can watch this in the making as the Brazilian 2018 general election drama is unfolding.

Here’s the complete list of the new instruments added recently by SimpleFX WebTrader.

Crypto

  • Bitcoin Cash (BCHUSD)

Nasdaq

  • Tilray Inc. (TLRY.US)
  • Activision Blizzard, Inc. (ATVI.US)
  • GW Pharmaceuticals, (GWPH.US)

New York Stock Exchange

  • Walt Disney Co.- (DIS.US)
  • General Motors Co (GM.US)
  • Nike Inc. (NKE.US)
  • Pfizer Inc. (PFE.US)
  • Qualcomm (QCOM.US)
  • AT&T, Inc. (T.US)

Tokyo Stock Exchange

  • Tokyo Electron Ltd  (TEL.JP)
  • Shiseido Company Ltd (SHISEIDO.JP)
  • Suzuki Motor Corp. (SUZUKI.JP)

London Stock Exchange

  • British American Tobacco PLC (BATS.UK)
  • Barclays PLC (BARC.UK)
  • BP PLC (BP.UK)
  • Centrica PLC (CNA.UK)
  • easyJet PLC  (EZJ.UK)
  • Glencore PLC (GLEN.UK)
  • GlaxoSmithKline PLC (GSK.UK)
  • Lloyds Banking Group PLC (LLOY.UK)
  • Ocado Group PLC (OCDO.UK)
  • The Royal Bank of Scotland Group PLC (RBS.UK)
  • Tesco PLC (TSCO.UK)
  • Vodafone Group PLC (VOD.UK)

Euronext Paris

  • Airbus SE (AIR.FR)
  • Danone SA  (BN.FR)
  • BNP Paribas SA (BNP.FR)
  • TOTAL S.A. (FP.FR)
  • Valeo SA (FR.FR)
  • Societe Generale  (GLE.FR)
  • Renault SA (RNO.FR)
  • Sanofi  (SAN.FR)
  • Peugeot S.A. (UG.FR)

Borsa Istanbul

  • DO & CO AG (DOCO.TR)
  • Aselsan Elektronik Sanayi A.S. (ASELS.TR)
  • BIM Birlesik Magazalar A.S. (BIMAS.TR)
  • Fenerbahce Futbol A.S. (FENER.TR)
  • Koza Altin Isletmeleri AS. (KOZAL.TR)
  • Mavi Giyim Sanayi ve Ticaret A.S. (MAVI.TR)
  • Turkcell Iletisim Hizmetleri AS  (TCELL.TR)
  • Turk Hava Yollari (THYAO.TR)
  • Turkiye Petrol Rafine Stock (TUPRAS.TR)

BM&F Bovespa

  • Vale SA (VALE.BR)
  • Ambev SA (ABEV.BR)
  • COSAN SA (COSAN.BR)
  • Itau Unibanco Holding S.A. (ITAU.BR)
  • Petroleo Brasileiro SA  (PETROBRA.BR)
  • Suzano Papel e Celulose SA (SUZANO.BR)
  • Telefonica Brasil S.A. (TELEFON.BR)

If you are interested in trading any of the instruments, log into SimpleFX WebTrader and give it a try. You can start your trading with a fully functional demo account or a live account with no minimum deposits.

The Pot of Gold From the Financial Markets – Part I

Or is it? Considered one of the first plants to be cultivated – cannabis –  made quite a journey. It started from being used as raw material for ropes and was discovered to have medicinal purposes. Later on, it got banned and flagged as a drug, went back to being known for medicinal purposes and lately it became recreational.

Whether you call it marijuana, cannabis, herb, grass, Mary Jane or pot, you should know that WEED made it in the financial markets. And it’s making quite a fuss. Some market analysts even went as far as calling it the “The asset of the moment” or even “the new Bitcoin”. But will it be just a bubble, or stay true to its trend?

Before you start investing in this asset you should probably know a couple of things about its background in the US, Canada, and Europe.

The land of all possibilities takes down the marijuana wall

Currently, 30 US states legalized the medicinal cannabis – nine of which also legalized the recreational use. Whereas, 21 decriminalized the use of marijuana. The seeds of legalization in the US started with California, back in 1996. It was then followed by Oregon, Alaska and Washington.

Just 12 years later, Colorado and Washington became the first two states to legalize recreational cannabis. By now, seven other states joined them in legalizing recreational marijuana, the latest being Vermont (2018).

Canada joined the marijuana party and legalized recreational use and almost run out of it, four days after. A shortage of stamp glue needed for ordering cannabis caused a marijuana shortage. Canopy Growth Corp. that prides itself to be the first publicly traded cannabis company in North America, has taken quite a hit in its shares price when this news reached the markets. It lost about 10CAD, during the intraday trading session.

Europeans battle between rope and smoke

Countries as UK, Ireland or France, along with nine other European countries consider both, medical or recreational marijuana to be illegal. Currently, Malta is the only EU country to have legalized medical marijuana.

11 European countries view marijuana as illegal, but decriminalized it. Italy, Belgium and Netherlands share with Switzerland the idea that possession might not be a criminal offense, but could be fined, or punished with a short jail time.

On the other hand, Denmark, Finland, Germany, and Poland treat marijuana as illegal but often unenforced. Meaning that various types of medical marijuana can be legally purchased with a prescription. It could also mean that possession of a small amount, which can vary from six to 15 grams – from country to country – might not be punishable.

Medicinal Purposes

Keep in mind that some of the EU countries, even though see marijuana as being illegal, but decriminalized or unenforced, continue growing the medicinal herb mostly for research purposes.

The medical use of marijuana still remains highly debated. Many online videos show its almost sudden effect in treating Parkinson, or Amnesia. Patients often requested marijuana for treating or ailing pain. It may also be recommended to treat some of the following:

  • Muscle spasms caused by multiple sclerosis,
  • Nausea caused by cancer chemotherapy,
  • Poor appetite and weight loss due to chronic illness (HIV, nerve pain)
  • Seizure disorders,
  • Crohn’s disease.

How to deal WEED under the strict eye of the law

Marijuana plays an important role in the economy of the countries that legalise it. Market analysts are calculating the money economies are wasting by not doing so. What is also interesting about cannabis, is that you can trade it from every country. Even if retail is not yet legalised.

Stratton Markets is one of the regulated brokers that adopted trading with marijuana shares, like Canopy Growth Corp. In addition to that, they also specialize in training before trading.

Trade safe, and always remember: CFDs are complex instruments that come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts, lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Patience Pays: Get to Know Popular Investor Reinhardt Coetzee

This South African Popular Investor is proof that low-risk and long-term investing need not be boring! Since joining eToro in July 2016, Reinhardt Coetzee has kept his risk score low by focusing on stocks from well-known yet innovative companies which according to his own research have solid growth potential, and holding assets for an average of 6 months.

Read more about Reinhardt’s investment strategy and see his trading activity here:

Hi, Reinhardt! Thanks for chatting with us today. Can you tell us a bit about yourself?

I’m 35 years old and live in Johannesburg, South Africa. I work in the industrial automation industry and specialize in the fields of software engineering, business intelligence & data analytics. Investing is an avocational passion of mine. I’m a technology enthusiast — or nerd for short — and I love playing around with and following the latest technological trends that are changing the way we live.

Did you have previous experience with financial investments before joining eToro?

I’ve been investing in equity funds like unit trusts and ETF’s ever since I started my first ‘real’ job and could afford to put some money away. Being a bit of an obsessive when it comes to investing my money, I would research how a particular fund was performing over time and look into things like the underlying asset allocation and detailed stats. Did I mention I’m into analytics? I soon started share trading online, investing in stocks directly and building my own portfolio and have become further involved in the world of investing ever since. I joined eToro in mid-2016 and quickly climbed the ranks to reach Elite Popular Investor status.

Why did you choose to join eToro?

I was looking online for an affordable and accessible way to get more direct exposure to US stocks. Trading international markets using traditional investment brokers can be complicated, non-transparent, and expensive. eToro just made it easy and accessible. I immediately loved using the platform, as it’s very easy to use. The interface design and user experience are great and then there is the whole social aspect to it — having the ability to interact with, and see what other traders all over the world are investing in, is quite amazing.

What are the three key benefits of using eToro?

There are many, and I think it will differ from person to person depending on their trading strategy. For me, the three key benefits have been:

  1. Easy and simple-to-use platform with full transparency and statistics. I love stats.
  2. Social interaction with a like-minded community of traders and investors — the power of the crowd.
  3. Friendly and professional communication. When it comes to supporting issues and how those are communicated, or speaking with an account manager, I’ve only seen and had good experiences.

That last one might be more of a company culture thing rather than a feature of the platform, but for me, trust in the company you use to invest your money is just as important.

How has eToro changed the way you trade?

Having the ability to trade stock CFD’s, and more recently, directly in the underlying asset, while still being able to trade shares with fractional ownership means I can build out a well-positioned, diversified portfolio. This market-maker model eToro uses, allows me to continually reinvest in my portfolio, adding to existing positions and taking advantage of good buying opportunities such as during market dips.

What is your type of trading strategy and what is it focused on?

My portfolio is focused on maximum long-term growth. I’m not a day trader. I do a lot of research and reading up on each of the companies in which I invest, fundamental analysis, studying earnings reports etc. I’m also big on thematic investing — researching the technology themes, like AI, shaping our future and what that might look like in the next 5, 10 or 20 years and invest in the companies that stand to benefit the most. You also have to have a benchmark. I invest mainly in tech stocks so I use the Nasdaq100 index (NSDQ100) which historically has been one of the best-performing industry indices over any long-term period, which gives me and my copiers a good benchmark against which to compare my performance.

What are the benefits of being a Popular Investor and what is your long-term goal?

There is obviously the monetary reward for being a Popular Investor, receiving a percentage of my assets under management, which is a great incentive from eToro to be part of the program. Being a Popular Investor means I have a responsibility toward the people who have invested their money with me and I believe this has benefitted me personally by motivating me to do even more research and due diligence when comes to managing the portfolio. Also, I love the social interaction, and playing a bigger part in this awesome community has been great. My main focus and long-term goal at eToro is still to grow the portfolio, keep getting the best possible return, and to be profitable on a consistent basis for myself and my copiers. Hopefully, by doing that, I can keep attracting people to invest with me and remain a top-performing Popular Investor on eToro.

Do you have any advice for your copiers/users considering copying you?

Keep a long-term goal in mind. Equities, and technology stocks, in particular, are one of the most profitable investment categories, but they can also be volatile in the short-term. The important thing is to stay calm and have patience. If the market suddenly drops, it can be difficult to stay calm, but just open up a chart and zoom out a bit — most times it will make the drop look like a small blip in the overall performance. History shows that even if you start investing at a really bad time if you stick with your investment choices, you will be far better off than selling and investing in something else every time. This is how many people lose money in the stock market, which remains one of the best places to put your money.

What are your hobbies?

Then: Braaing (barbequing) with friends, traveling, gaming, and snowboarding when we get the occasional snow in Lesotho.

Now: Spending time with my wife and adorable daughter ? When I get the time, slowly converting my home into a ‘smart’ IOT home.

Lightning Network: How It Is Going to Affect Bitcoin and Litecoin

There’s no secret that Bitcoin suffers from slow and expensive transactions. In December 2017, an average transaction fee was over $30 and a confirmation process was taking about 30 minutes! Now the numbers are much lower, but scalability remains the biggest issue Bitcoin has yet to solve.

Many crypto enthusiasts believe that the Lightning Network will bring new solutions that will affect a lot of currencies. It is an off-chain technology, which can significantly decrease both the speed and the price of BTC transaction. However, some claim that it will be not Bitcoin but Litecoin benefiting most from its launch. In addition to fast and cheap transactions, the technology introduces so-called ‘atomic swaps’ that allow for cross-chain cryptocurrency exchange. As Bitcoin and Litecoin are among the first to utilize the LN upgrade, the level of interoperability between the two coins will increase. In layman’s terms, with the Lightning Network implementation, the number of ways to exchange Litecoin for Bitcoin and vice versa will increase. Let’s say, if a BTC holder wants to use a cheaper LTC for daily micro-payments, they do not need to go for a crypto exchange to buy Litecoin first; they can simply perform an atomic swap between two blockchains. Seems catchy, doesn’t it? Let’s go deeper into how the Lightning Network works and how it will change the balance of power in the crypto market.

What is the Lightning Network?

The Lightning Network is an off-chain system of payment channels powered by smart contracts and designed to facilitate direct deals between users. It can work on Bitcoin’s blockchain or any other, and be used to exchange different coins cross-chain owing to the Atomic Swaps technology. The Lightning Network wallet address is accessible to two users who want to make a deal – they input the number of coins to be spent and confirm the transaction. The contract will be finalized only when both parties sign it. At any time, any user may close their unique channel, so the latest information about transactions and balances will be sent to Bitcoin’s blockchain.

What does this mean for regular crypto investors? Using the Lightning Network, they can make deals without synchronizing with blockchain all the time. Data about transactions will be transferred via off-chain payment channels.

How will it affect Bitcoin?

The Lightning Network was designed to make payments more convenient and attract more users. This system may be completely game-changing for Bitcoin. For now, most users consider BTC as a store of value but not as a payment method because of the high fees and slow processing times. With the Lightning Network, Bitcoin will be able to become cheaper and more efficient, which is going to be a clear competitive edge over some altcoins.

Transaction speed

Bitcoin’s blockchain is based on the Proof-of-Work algorithm. It means that miners confirm on-chain transactions. They can decide in which order to verify deals and will obviously choose ones with higher fees first.

How the Lightning Network can help here? It eliminates miners’ verification step and increases the speed of transactions’ processing. Off-chain deals will be done instantly.

Micro-payments

Bitcoin – the current price of which is over $6,400 – can be divided into smaller parts called Satoshis. One such unit is equivalent to 0.00000001 BTC. As you can see, a lot of Satoshis are needed to form even the tiniest sum in cents.

At the moment, the fees are too high which makes small deals inefficient. Say, an average fee of $0.2 makes purchasing coffee or paying for a subway ticket with BTC unreasonable. In contrast, Litecoin offers $0.04 fees, which makes it a perfect cryptocurrency for micro-payments.

Implementation of the Lightning Network can result in reducing fees and making micro-payments with Bitcoin more realistic. All transactions will be based on smart contracts, and the system itself will control the processes.

Possible drawbacks

Behind its intention to solve the fees problem, there are some controversial features in the Lightning Network. It has its own fees for opening and closing a payment channel and for transferring assets between channels. At the moment, the latter fee is zero, but the situation can change.

Also, the Lightning Network usage can result in making more on-chain transactions if your wallet fails to find a route to the receiver. In this case, a user will have to make two transactions of opening and closing a channel in order to meet a payment eventually.

There’s also an issue of how widely it will be used which is linked to the general adoption of cryptocurrencies.

How will it affect Litecoin?

Litecoin is considered to be silver in the world where Bitcoin is viewed as digital gold. Originally, LTC is Bitcoin’s fork designed to provide faster and cheaper deals.

What impact can the Lightning Network have on this currency? Skeptics claim that it will disintegrate Litecoin as investors will prefer using fast and cheap Bitcoin as more famous and trusted asset. If BTC will actually solve its scalability issues, nobody will need other currencies to perform the same tasks.

On the other side, optimists argue that Litecoin can survive as a secondary chain. The project’s founder Charlie Lee claims that LTC will always remain cheaper and faster than BTC, and the Lightning Network can only contribute to Litecoin’s wider adoption.

To sum it up

The Lightning Network is designed to make blockchain transactions instant and cheap. While the major cryptocurrency still tries to deal with the problem of scalability, this technology seems to offer a solution. But it could be not that simple. The success of implementing the Lightning Network depends on various factors: the general crypto adoption, the usage of altcoins that provide speed improvements and lower fees compared to BTC, or contradictions over the technology’s nature itself.

M2O Project: Seamless Union of Loyalty Points, Crypto and Fiat

How many loyalty programs are you a part of? Have you ever tried to calculate? We usually have thousands of different points and bonuses but still cannot use them to the fullest. Is there a way to change it? It seems that the solution is already here.

Getting rewards for purchases is what surely makes the customer fall for the brand. Thus, this is not surprising that the value of the global incentives industry continues to grow each year. While in 2013-2014 the North American loyalty market was worth $54 billion dollars, then in 2016 it comprised $90 billion. Meanwhile, in 2017 it already reached about $320 billion.

Despite the fact that the average U.S. household is registered with 29 loyalty programs, billions of dollars’ worth of reward currencies lie unused, and over half of loyalty participants do not actively participate, according to Rambus research.

In addition, 53% of American consumers are unsure of how many points they have collected, as 3Cinteractive’s research states.

So, what prevents people from enjoying their accumulated bonuses?

It’s often the case that having collected them for months, shoppers finally find out their points no longer viable – they have simply expired. How do clients feel? Confused, if not to say disappointed.

Moreover, quite often customers are not satisfied with the reward menus. They are not interested in products, offered as gifts. It is obvious that people want to be able to exchange their points for any product or service, even the ones from other brands.

Also, current loyalty programs are tied down to one place. Simply put, if you have bonus points from a shop in London, most likely you won’t be able to use them in the same brand store in Singapore.

And now imagine that bonuses, miles, and rewards are stored in one place and can be sold, transferred or exchanged. You can buy any product with them as easily as with cash and don’t have to worry about points’ expiration dates, as they don’t have it anymore. All these were impossible just a few years ago, but today the hi-tech is changing the rules.

“Mileage to Opportunity”, says the slogan of a Korean company M2O, and that’s what it is currently doing. The startup aims to bring new opportunities to people and allow them to use loyalty points like a real asset: spend, sell and exchange.

To implement this idea, M2O utilizes the blockchain technology that has already gained much traction in different spheres. The project has created its own cryptocurrency that will act as a universal digital asset – people will be able to convert all sort of loyalty rewards into M2O tokens, and then use them as freely as cash. In order to ensure the safety of coins, M2O will have a Mileage Bank, where these will be securely stored.

Having M2O tokens, a customer will be able to buy points of any other loyalty program and even spend them as fiat on shopping in the wide network of M2O affiliated stores.

This way, instead of having expiring and unnecessary points, a person receives universal tokens that are not linked to any specific place and can be used in any shop, sold and even traded on different cryptocurrency exchanges.

M2O team challenges today’s loyalty programs, offering new options for spending collected points. Using blockchain, it transforms bonuses and rewards into real assets, that can be spent on anything a person wants, anywhere and anytime. Isn’t it what we as customers dream of?

About the project

M2O is working on the globally integrated mileage and reward points program platform. The whole idea behind the project is to allow its users to convert their loyalty rewards into internal tokens – M2O coins – and use them for goods and services of various merchants affiliated with the M2O project.

Additionally, customers will have access to M2O digital wallet, where they can securely store their tokens. M2O is planning to start the second crowdsale on October 29th at, 16:00 JST time (UTC +9), that will be officially ended on November 23rd at 16:00 JST time (UTC +9). They have set a hard cap of $56 million and a soft cap of $5.6 million.

While participating in the second stage, remember that only Ethereum is accepted. Crowdsale token price is of 30000 M2O for 1 ETH. The minimum contribution is 1 ETH. Total Supply is 35 billion M2O; meanwhile supply for the ICO is 14 billion tokens.

To learn more about the M2O project, please visit its website, follow the growing communities on Facebook, Twitter and join the discussion on Telegram.

Trading the Abu Dhabi Formula 1 Grand Prix

Formula 1 is one of the most popular sports in the world with over 350 million viewers worldwide. With 20 teams, 40 drivers and 21 races in the year, it is a chance for sponsors to get their names out there.

Just like the World Cup football attracts sponsors like Adidas and Coca-Cola, Formula 1 has a raft of sponsors plastered over the circuits, cars, drivers, and models. However, while it seems glamorous on the outside, the racing teams work day and night to find that edge to win.

That’s because there are millions of dollars on the line. In fact, there are billions. The top 10 teams spend an average of $2.6 billion per year to keep themselves in the race. However, there is one team that outspends them all. That team is Ferrari, whose Formula 1 budget amounts to $570 million annually. Winning the prize money and the status for recurring sponsorship deals is essential for this team – especially now it has been publicly trading since 21 October 2015.

With the last race of the year at the Yas Marina circuit in Abu Dhabi on 24 November 2018, all eyes are on the Ferrari team and their stock price. Let us have a look at the company’s finances in more detail before we look at possible ways to trade the company within the Admiral Markets platform.

Analyzing Ferrari’s Finances

When Ferrari’s shares listed under the stock ticker symbol RACE on 21 October 2015, the shares spiked over 17% higher from its initial public offering price – valuing the company at just over $11 billion. Demand for a piece of the company was high.

However, before this Ferrari’s finances were shrouded in secrecy. It is only after becoming a publicly traded company did Ferrari have to become more transparent in its finances. Since then, analysts have pored over financial statements, revealing some very interesting facts.

For example, an ESPN report revealed that three teams, Ferrari, McLaren and Red Bull Racing share a guaranteed annual prize fund of around $100 million. This is because they are the Constructors Championship Bonus (CCB) teams – the ones which won the most amount of races prior to 2012.

Not only that but, Ferrari also receives at least 62.2 million a year just for being Formula 1’s longest standing team, having raced since 1950. Of course, this all sounds great. However, looking at the Formula 1 teams finances paints a different picture:

Image

As you can see, Ferrari had the biggest revenue of £382 million. But, they also had the highest costs at £464 million, resulting in a net loss for the year. That’s why winning and maintaining their status is a top priority, financially.

How has their stock price fared this season so far and what kind of strategies can we trade on the stock price of Ferrari? Let’s take a look.

Understanding Ferrari’s Stock Price

Below is a chart of the stock price for Ferrari from 21 October 2015 to 22 October 2018.

Ferrari Weekly Chart
Ferrari Weekly Chart

The hallmark of a range-based market condition is when price trades in between two price points. In the chart above these lines are denoted by the two red horizontal lines. One is providing upper resistance and one is providing lower support. In a range based market condition price will often trade in between these levels as neither buyers nor sellers want to take control of the market.

With the uncertain outlook on Ferrari’s ability to perform and their financial perks being threatened, investors, during this period of price consolidation seem to be waiting on the sidelines. The question is how can a trader take advantage of such conditions? Let’s take a look at both trending markets and ranging markets.

Trading Ferrari’s Stock Price

During the period of 2016 to mid-2018, we can see that Ferrari’s stock price was trending higher. The reason we are able to identify this is frome the use of trading indicators that help us make trading decisions.

For example, moving averages are very popular trend-based indicators that help determine whether the market is trending or not. In essence, they calculate a user-defined amount of previous closing prices to then find the ‘average’ price. This is then plotted on a chart to see the average of prices over a certain period of time. For example, the chart below shows two moving averages plotted on Ferrari’s stock price:

Ferrai Weekly

The yellow line represents the 10-period simple moving average. The blue line represents the 20-period simple moving average. These two lines plot the average price over the past ten and twenty bars.

What you’ll notice during the trending period is that both moving averages are moving up, nice and smoothly which is the hallmark of a strong trend. Compare this period to the range based period between the two horizontal red lines. We can see the 10 period simple moving average is moving up and down quite wildly, whilst the 20 period simple moving average is starting to turn lower.

While there are many indicators available to use on the Admiral Markets MT5 platform, with these moving averages we can simply identify the right market conditions to choose the right tools for the job. Let’s take a look at how we could trade this current period of consolidation.

Trading Range-Based Stocks

Within the trading community, there are those who use fundamental analysis and those who use technical analysis. The most common approach is to utilize both. So what are the differences?

  • Fundamental analysis – this involves analysing company reports and economic statements to understand if the asset will be worth more in the future or not.
  • Technical analysis – this involves analysing charts and indicators to determine turning points in the market where buyers, or sellers, are taking control.

So far, we have used fundamental analysis to generate the ‘trading idea’. Essentially, it gives the trader a reason to focus on a particular market. When it comes to trading that ‘idea’, technical analysis becomes useful to identify the market condition but also where a trader could possibly buy or sell.

For example, we can use simple technical analysis tools like support and resistance levels to help identify turning points in a range based market. Let’s zoom in to the most recent range based market condition on Ferrari’s stock price:

Ferrari 3

From the chart above we can see that when the price is trading in between $139.80 and $118.60, the $139.80 acts as a level of resistance the market bounces off and the $118.60 level acts as a level of support the market bounces off.

How we could we use this information to trade from? One possible way is to use price action patterns such as pin bar reversals that trade at these levels of support resistance. These price action patterns analyse the behaviour of buyers and sellers and can leave traders clues on what could happen next.

Let’s take a look in a little more detail.

Trading Pin Bar Reversals on Range Based Stocks

pin bar reversal is a simple price action pattern which shows the rejection of a price level.

Ferrari 4

In the chart above, the yellow box represents a bearish pin bar reversal – a very well-known price action pattern. It shows buyers trying to push the market higher but failing and allowing sellers to step in to take control of the market and push it back down. Some traders would use this setup at a horizontal resistance line to enter a short position where they would profit if the market moves lower.

The Trade in Action: Entry Price, Stop-Loss, and Target Level

A trader could have entered at $136.22, the break of the bearish pin bar’s low, with a stop loss at $142.47, the high of the pin bar. If the market traded through the entry price and then reversed to hit the stop loss, then trading 50 lots the trader would have lost $312.50 on the trade.

However, in this instance, the trade did not trigger the stop loss and actually moved lower, all the way down to the lower horizontal support level of the stock’s trading range. At this target level of $118.60, the trader would have made approximately $881.00 on the 10 October.

Conclusion

Within the world of financial trading, there are many different styles. For the most part, bigger players, like hedge funds, tend to start by generating an ‘idea’ on what they want to buy or sell. In essence, this is their research.

Some traders will focus purely on technical analysis, while some traders and bigger players, will use fundamental analysis to generate a trading ‘idea’ and then use technical analysis to time their actions in buying or selling.

In this article we started with a well-known event – Formula 1’s Abu Dhabi Grand Prix – and broke down the different elements to find a suitable market to trade on. In this instance, it was the impact of the budget cap on the biggest teams that caught our attention. The team in question was Ferrari, now that they are a publicly traded company and available on the Admiral Markets MT5 platform to trade. The preparation and planning of the trade could have happened long before the trade was executed which can help traders execute their trading decisions with confidence and discipline.

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.

Demand for Gold Up 42%. Why Are Central Banks Raising Their Reserves?

So which countries are raising their gold reserves and why?

While we can’t know for certain, there are some statistics that prove to be quite interesting.

For example, the Russian central bank has been the largest purchaser of gold for the past six years, which has taken their holdings to 224 tonnes in 2017. They have now also overtaken China to hold the fifth spot in having the largest gold reserves in the world.

Meanwhile, Hungary’s central bank announced that the country has raised its gold reserves tenfold to 31.5 tonnes. The reason given was to ‘improve the security of the nation’s wealth and the reduce risks’.

And on 19 April 2018, Turkey also requested that 220 tonnes of their gold be pulled out of the US Federal Reserve system and brought back home. Other countries making similar requests of the US Federal Reserve.

include:

  1. Germany
  2. Netherlands
  3. Austria
  4. Belgium
  5. Russia
  6. China
  7. Azerbaijan

Why do more countries want their gold back?

When it comes to why more countries want their gold back, this is an interesting question with many possible answers. One theory is that countries around the world are trying to avoid the US dollar because of ongoing trade wars, tariffs, and an uncertain political scene.

Russia and China have also been trying to win support from global governments to create a new gold-backed currency, thereby removing the US dollar as the world’s reserve currency. After all, the reserve currency status may not last forever.

At this point in time, we may not be able to pinpoint the exact outcome of central banks raising their gold reserves. However, we can still take advantage of the volatility in the gold market as the metal is available to trade with a CFD option with Admiral Markets. How can we do this? Let’s take a look…

How to trade CFDs on Gold with Admiral Markets MT4?

First, let’s take a look at the 12-month gold chart:

Gold Daily Chart

From the chart above we can see there are times gold ranges and trends. In a range, gold will trade in between two price points, struggling to break out of its range. In a trend, we would see prices accelerate for a sustained period higher or lower.

There are a variety of strategies to trade trend-based market conditions as well as range-based market conditions. Let’s focus on the most recent range-based market conditions as highlighted by the chart below:

Gold Daily Chart

In the chart above, we can see that the gold market was contained in a range known as a consolidation, wedge or triangle formation. New price highs kept on getting lower, while new price lows kept on getting higher. This pattern suggests that at some point the market will break out and move in a directional manner up or down.

In this instance, the gold market broke higher, penetrating the upper resistance level of the consolidation pattern. A trader could have bought as the market broke through this resistance line at the $1,202 price level on the 11 October 2018, with a stop loss at the lowest price of the breakout day $1,191.

Trading at the lowest lot value for gold, 0.1 lots, then if the entry price was triggered and then hit the stop loss, the trader would have lost USD 110. In this instance, the stop loss was not hit and if the trader held on to previous resistance at $1,222 (July 2018 lows), the approximate profit would have been USD 200 reached on the same day as an entry, 11 October 2018.

Crypt-ON: DAO Dream Becomes Reality

Most crypto community members are familiar with the idea of creating a DAO. However, we haven’t yet seen an example of creating a fully functional DAO, and the precedent of a $50 million theft from the project of the same name has called into question the very possibility of creating such companies. After all, in order to create a decentralized autonomous organization, it is necessary to aggregate a large number of finances which motivates fraudsters and hackers to resort to illegal actions. So, should we give DAO a shot, how will such a model change the business world and are we able to protect ourselves from taking risks?

Since there are no owners, control bodies or directors, each participant becomes a full co-owner of the company. This paradigm solves the problem of unfair distribution of revenue within the organization: now each member receives as much as they deserve going by their actions, regardless of their status. Therefore, all the members of the company, not just the top managers and owners, are motivated to advance the development of the company. It is difficult to say how soon DAO will compete with the largest companies with a classic organizational structure, but the higher efficiency of decentralized solutions isn’t beyond question.

First and foremost, of course, it is necessary to provide a reliable protection from unlawful actions against DAO members. Therefore, the Crypt-ON team intends to create a single infrastructure solution with the highest security standards. Crypt-ON is a multi-service p2p-platform targeting several crucial problems in the industry at once, and ultimately gather enough participants to become the world’s first fully functional DAO.

Escrow is going to be the first service, the so-called core of the platform and a mechanism aimed to protect the interests of transaction parties. The transaction amount is deposited with an independent arbitrator until all obligations are mutually confirmed by the parties. At the same time, any interaction between the participants is direct and conducted without the intervention of a third party, but only using the platform interface. The entire history of the user interaction is stored in the system, allowing you to return to the details of the transaction, if necessary. In this case, the software module will allow you to change the terms of the transaction by creating a new smart contract if both parties agree. This may help, for example, when one of the parties can’t fulfill the obligations in time, and the second one agrees to wait.

A reliable tool used to ensure secure transactions is going to be the basis for the development of a multi-service platform. Crypt-ON will also include a crypto-freelance exchange, a p2p lending service, and a p2p geo-exchanger. A single platform token envisaged for all financial transactions is called i-Point. There is also a reputational trust token, which contains records of all the user actions within the platform, displayed as a rating. The immutability of all user action records within the blockchain will create the most reliable registry of users and their reputation.

With debugging the DAO, Crypt-ON primarily provides a reliable environment for interaction between community members, and also offers the opportunity to carry out any necessary operations on the platform. In the future, when the DAO is formed, we plan to migrate to our own blockchain to ensure the highest autonomy of the Crypt-ON DAO and transfer the control over the further development of the platform to the community members.

By the way, the significance of creating the world’s first functional DAO was pointed out by one of the blockchain industry leaders, Brock Pierce, who has spoken positively about Crypt-ON in his Twitter.

Do not miss the opportunity to evaluate the benefits of Crypt-ON and take part in the ongoing TGE.

Website https://crypt-on.io/

Whitepaper https://drive.google.com/file/d/1ItcfVNhOnSiXhRlf-OIAjZDSnfJuIS66/view

3 Innovative Solutions For the Seamless Inheritance of Cryptocurrency Assets

Earlier this year, Futurism carried a story about Michael Moody, a 26-year old who died in a tragic plane crash in Chico, California in 2013. Before his death, Michael was a Bitcoin miner, in the words of Michael’s father, “my son was actually one of the earliest people to mine it. He used his computer at home to mine bitcoins when you actually could do it that way, and he had a few, we think.” Two years after the crash, the father started exploring ways to retrieve Michael’s cryptocurrency assets. He has succeeded in piecing together information about his son’s stash of Bitcoin, but he been unable to access his crypto wallets because of the decentralized nature of cryptocurrencies.

Nolan Bauerle, director of research at cryptocurrency analysis at CoinDesk in an interview with Bloomberg observed that “if someone who owns Bitcoin, or another cryptocurrency passes away without sharing their account information, those coins are simply abandoned.”

Interestingly, being able to retrieve personal information and access a cryptocurrency wallet doesn’t automatically mean that the funds of the deceased are available to their beneficiaries. A number of legal considerations such as the Computer Fraud and Abuse Act (“CFAA”) and The Stored Communications Act prohibit the unauthorized access to people online accounts (including crypto wallets) even when they are dead.

Now, accessing deceased cryptocurrency wallets and transferring funds without legal authorization apart from being a financial crime also has tax implications. Hence, dying without clear-cut instructions on the management of your digital assets means such assets could be forfeited to the state or lost forever. This piece examines three projects introducing innovative solutions for managing digital inheritances.

TrustVerse

TrustVerse is fundamentally a blockchain-powered AI platform that provides an optimized asset management service while also minimizing cryptocurrency volatility for low-risk medium-return performance ensured by its deep neural network and secure and reliable blockchain based system. Beyond intelligent asset management, TrustVerse also offers smart contract programming and design solution on its dApp to help cryptocurrency investors manage taxes, legacy planning, inheritance and transfer of digital assets.

With TrustVerse investors can manage their crypto assets, and make sure their family and loved ones will get access to your assets after they die thanks to Smart Contracts and oracle mechanism. TrustVerse helps investors protect their assets through private smart contracts stored on a public chain. The smart contracts are also programmed with life scheduling service that reaches out to your beneficiaries to when you’ve not checked in for a while.

Proof of Death

TrustVerse also leverages a Proof of Death (PoD) consensus solution to prevent post-mortem identity theft and fraud. TrustVerse also has solutions to determine if your digital assets are required to be reported and submitted to probate. Once all statutory legal requirements are met, you can trust that the smart contract will execute and the transfer and distribution of digital assets to predefined designators will be done. The best part is that this platform manages other digital properties such as online storage accounts, websites, emails, photo , nd video sharing accounts, domain names, and intellectual property among others.

Safe Haven

Safe Haven is a platform that uses blockchain technology to help people safely and transparently share the keys to their assets with beneficiaries after their demise. Many people are worried about sharing their account information or keeping it in storage because of fears that the accounts could be compromised and that their funds could be stolen. Safe Haven is using a TFC Share Distribution Key, Trust Alliance, and Escrow protocol to encrypt the information about digital assets while sharing the keys as a puzzle.

Safe Haven allows users to protect their digital assets and ensure seamless inheritance without locking you out. The protocol distributes seeds/private keys/passphrases that provide access to an asset to between the initiator and their beneficiaries. However, the shares of the keys are distributed to give the initiator/parent control over their assets – the shares are also managed as a legally-binding document by a notary. In the event of the death of the initiation, the beneficiaries holding the other shares can present the necessary legal documents to the Trust Alliance System.

DigiPulse

DigiPulse is another platform that wants to make it easier to manage digital inheritances with a solution for storing and encrypting information on a blockchain. The encrypted information can only be accessed by prespecified recipients. DigiPulse is being developed around the notion that there’s technically no need to attorney service for the transfer of cryptocurrency assets in event of the demise of the investor.

DigiPulse adds an interesting feature into the mix in that it allows users to choose between keeping their identity anonymous and allowing their identities to be visible. DigiPulse, however, doesn’t seem to require beneficiaries to take any action before the inheritable assets can be transferred to them. DigiPulse uses its API integrations to measure activity signals. Once a pre-defined period of inactivity elapses, the smart contract will assume that you’ve passed on and the smart contract will execute to transfer the assets to your beneficiaries.