Binance Halts Several Crypto Trading Services in Australia, as Regulatory Issues Continue

In an announcement, Binance revealed its plans to stop offering certain products to Australian traders. Users from the region will have no access to leveraged tokens, options, and futures. The new guideline starts on September 24, 2021. What’s more, Australians have a 90-day period to shut down or minimize their positions.

An End to Derivative Trading in Australia

Binance continues to examine how it can relate well with global regulators. By stopping derivative trading in Australia, Binance believes it can be on the safe side of the law. Thus, Australian traders cannot complete their positions once December 23, 2021, arrives.

Furthermore, the exchange is going to close any open position after the deadline. Binance issued yet another directive to Australians in August 2021. In the report, Binance said it is restricting Australian users from opening an account with the exchange. It blocks traders from creating margin products, options, and leveraged token accounts.

The Compliance Journey

The majority of countries are against the product offerings that Binance extends to users. For instance, the Cayman Islands claims that the exchange is operating in the region illegally. The Island’s regulator says that Binance is providing digital asset services without a license.

Hosting such products in the region requires companies to obtain a waiver from Cayman’s monetary authority. The Netherlands had a similar argument with Binance in August 2021. As per the Dutch Central Bank, the platform is offering crypto services without any official registration.

The bank also says that Binance could expose users to illegal financing and money laundering activities. Other countries in conflict with Binance’s offerings include Holland, Japan, and the U.K.

Taking up Centralization

The latest development shows that Binance may adopt centralization in its operations. Binance’s head, Changpeng Zhao, admits that centralization can improve its compliance status. The statement means that the platform could reveal its headquarters in the future.

However, the downside is that governments might constantly monitor the customers’ financial dealings. Revealing such data breaks the basic rules in the crypto space concerning privacy. In the long run, involving financial regulators also allows Binance to work without any conflicts. Hence, the exchange can secure licensing support from global regulators.

For a look at all of today’s economic events, check out our economic calendar.

ECB President Lagarde Says Cryptocurrencies Are Not Money

Bitcoin’s two primary use cases are as a store of value and a payment method. The leading cryptocurrency has given investors a hedge in times of rising inflation and ballooning balance sheets at central banks. Year to date, the bitcoin price has advanced 61%.

Meanwhile, users are also testing bitcoin’s mettle as a payment method, with countries such as El Salvador deeming the flagship cryptocurrency as legal tender. Bitcoin is also increasingly being accepted by businesses to pay for goods and services,  with movie chain AMC Entertainment the latest company to catch crypto fever.

Now Christine Lagarde, president of the ECB, has come out swinging against cryptos, saying in an interview with Bloomberg that they “are not currencies” and adding:

“Cryptos are highly speculative assets that claim their fame as currency possibly but they’re not.”

Bitcoin billionaire Tyler Winklevoss agreed with Lagarde in the sense that cryptos are not issued by the state, implying that this is a feature and not a bug.

Digital Euro

Meanwhile, the ECB is currently in the process of developing its own digital euro, as policymakers race to compete with the innovation in the private sector. The regulatory wheels move slowly.

The ECB is launching a two-year “investigative phase” that will get underway next month in which it will weigh the potential features of a digital euro as well as the impact on the economy and financial markets. Lagarde wants to give consumers the option to pay in a digital currency that “does not jeopardize the whole banking system,” according to her.

Race to Digitization

European policymaker Benoît Coeuré has warned that central banks are not moving quickly enough to introduce their own versions of digital currencies. Coeuré believes that the one-two punch of stablecoins, such as Tether that is pegged 1:1 to the U.S. dollar, and decentralized finance (DeFi) stand to compromise the way banks do business.

Changpeng “CZ” Zhao, who is at the helm of leading cryptocurrency exchange Binance, believes that central bank digital currencies (CBDCs) will be good for the cryptocurrency industry. He told the South China Morning Post that CBDCs will help to “promote bitcoin and cryptocurrencies to become a means of payment,” as consumers become comfortable with making micro-payments with digital assets.

Regulatory Pressure Is Forcing Binance To Make Tough Changes

The regulatory pressure on Binance is forcing the cryptocurrency exchange to make some changes to how it operates in various parts of the world.

Binance To Stop Derivative Trading Services In Hong Kong

Leading crypto exchange Binance announced earlier today that its users in Hong Kong would no longer be able to access derivative trading services. The exchange said the services would be stopped over the next 90 days as it looks to comply with the local regulations.

Binance has come under heavy regulatory pressure in various parts of the world, and this has prompted many changes in how it operates. In this latest development, Binance said its Hong Kong users would no longer be allowed to open derivative trading accounts. In addition to these, the existing derivative traders have been given a 90 days’ grace period to close their open positions. During this period, the traders would not be allowed to open new positions in the market.

The crypto exchange said, “Our aim is to create a sustainable ecosystem around blockchain technology and digital assets, and we hope that such efforts will help the industry grow in the local market in the long-run.”

The move came a week after it announced that Binance users from Europe would no longer be able to trade crypto futures and derivatives products. Binance stated numerous times that these actions are to ensure that it complies with the regulations put in place in various countries.

Binance Makes Changes To Operations

The cryptocurrency exchange has come under heavy regulatory pressure in recent weeks, especially in Europe. The UK’s FCA banned Binance Markets Limited from operating in the country, leading to some banks such as HSBC, Santander and Barclays blocking transactions to the exchange. Furthermore, regulators in Malaysia and Italy made similar announcements, stating that Binance isn’t licensed to operate in those countries.

BNB/USD chart. Source: FXEMPIRE

The BNB coin is up by nearly 2% over the past 24 hours despite the negative news around the cryptocurrency exchange. Year-to-date, BNB is one of the best performing coins, rising by nearly 1000% to date. It began 2021 trading at $38 per coin, but it is now trading above $330.

Are Binance’s Regulatory Struggles Just Starting? Binance Now Banned In Malaysia

The world’s top digital asset exchange Binance has been under heavy regulatory challenges in recent months, and it seems it is just beginning. The exchange has now been banned in Malaysia and given two weeks to cease operations.

Regulators Ban Binance In Malaysia

Binance, the world’s top crypto exchange by trading volume, is facing yet another regulatory challenge. This time, in Malaysia. The Securities Commission Malaysia (SC) announced earlier today that Binance and all related entities are no longer allowed to provide services in Malaysia.

In a press release earlier today, the regulator said the ban applies to Binance Holdings Limited, its CEO Zhao Changpeng, Binance UAB (Registered in Lithuania), Binance Digital Limited (Registered in the UK), and Binance Asia Services Pte Ltd (Registered in Singapore).

Following the ban, the Securities Commission had asked the company to disable the Binance website (www.binance.com) and mobile app in Malaysia over the next two weeks. The exchange should also end all media and marketing activities targeting Malaysian investors and also restrict Malaysian investors from accessing Binance’s Telegram group.

The regulators also advised Malaysian investors to stop dealing with and investing through Binance and other cryptocurrency exchanges.

Binance’s Regulatory Challenges Continue To Pile Up

The Ban in Malaysia is the latest in a series of tough regulatory challenges for the cryptocurrency exchange. The cryptocurrency exchange was banned in the United Kingdom after the Financial Conduct Authority (FCA) gave the order a few weeks ago. This led several financial institutions like Santander, Barclays and Clear Junction to block Binance transactions from their platforms.

Italian regulators also issued a warning against Binance, asking it to stop operating in the country. According to the regulators, Binance doesn’t have the regulatory license to operate in the European country.

BNB/USD chart. Source: FXEMPIRE

Binance had taken certain actions, such as halting the trading of tokenized stocks and hiring ex-regulators to ensure the company complies with regulatory demands. However, that hasn’t been enough to stop regulators from coming after it.

The Binance Coin (BNB) is down by less than 1% over the past 24 hours. BNB is trading at $310 per coin, down from its all-time high of close to $700 recorded in May.

First UK, Now Italy. Are Binance’s Regulatory Troubles Just Starting

The regulatory challenges facing crypto exchange Binance don’t seem like they would go away anytime soon, with Italy’s regulatory agency announcing that the platform is operating unauthorized in the country.

CONSOB Says Binance Is Unauthorized

CONSOB, the financial market’s regulator in Italy, announced yesterday that the world’s largest cryptocurrency exchange is operating without a license in the country. The regulator has issued a warning to Binance and advised Italians to stay away from the platform.

The regulatory agency announced this on its website yesterday, stating that all companies associated with Binance Group don’t have the permission to provide investment services and activities in Italy. CONSOB said even Binance.com that has its derivatives and stock token platforms written in Italian, is operating without a license.

The regulator, keeping in line with other regulatory agencies globally, also warned its citizens against trading cryptocurrencies. CONSOB said cryptocurrency investments should be conducted with caution as the traders and investors stand to lose all their money in the market.

CONSOB wrote that investors and traders should know that transactions in instruments related to cryptocurrencies could present certain risks that are immediately seen. This is due to the complexity, high volatility of the prices of he assets. The regulator also cited othe vices such as the cyber-attacks that cryptocurrency projects may be subjected to.

Binance  Coin (BNB) Down By 4%

The news that Italian regulator CONSOB has issued a warning against Binance saw its native coin, the BNB, lose over 4% of its value in the past 24 hours. BNB is currently struggling to stay above the $300 mark and could sustain further losses if more negative news emerges over the next few days.

BNB/USD chart. Source: FXEMPIRE

Despite the recent dip, BNB’s price is up by nearly 1000% year-to-date. BNB was trading at $38 per coin at the start of the year, but it is now trading above $300.

CONSOB is the second major regulator to warn Binance in the past month. In June, Britain’s Financial Conduct Authority (FCA) banned Binance Markets Limited from operating in the UK since it doesn’t have a license. The ban has seen some financial institutions such as Barclays, Santander and Clear Junction all end ties with the exchange, making it impossible for their customers to fund their Binance accounts.

Clear Junction Dumps Binance. Binance Can’t Seem To Catch A Break In The U.K

Leading cryptocurrency exchange Binance has been under a lot of regulatory pressure in the U.K in recent weeks, and the situation is only getting worse for the company.

Clear Junction Will No Longer Process Binance Payments

London-based payment firm Clear Junction has announced that it would no longer process payments made from the Binance cryptocurrency exchange. This order came after the Financial Conduct Authority (FCA) banned Binance Markets Limited from operating in the United Kingdom.

Clear Junction, in its blog post, said it is stopping Binance payments to comply with the FCA regulations. The payment processor said, “Clear Junction can confirm that it will no longer be facilitating payments related to Binance. The decision has been made following the Financial Conduct Authority’s recent announcement that Binance is not permitted to undertake any regulatory activity in the U.K.”

Following this latest ban, GBP and EUR payments on Binance will no longer be processed. This means that the payment processor will not facilitate deposits and withdrawals from Binance.

FCA Bans Is Affecting Binance’s U.K Operations

Last month, the FCA banned Binance Markets Limited, stating that it is not a registered entity in the U.K. and, as such, doesn’t have the license to operate. Binance has maintained that the ban only applied to Binance Markets Limited and not Binance.com, its global cryptocurrency exchange.

However, some banks, including Barclays and Santander, have banned their users from funding their Binance accounts using credit and debit cards. The Binance Coin (BNB) is one of the hardest-hit cryptocurrencies in recent weeks. The broader cryptocurrency market has sustained losses since May, with the total market cap dropping from above $2 trillion to below $1.5 trillion.

BNB/USD chart. Source: FXEMPIRE

BNB is currently down by 4% over the past 24 hours, with the news from the United Kingdom affecting its performance in recent weeks. If the bearish tendencies continue, BNB’s price could slip below the $300 mark, down by more than 50% from the all-time high above $600 it set in May. Despite that, BNB remains one of the leading cryptocurrencies in terms of market cap, and Binance is still the number one cryptocurrency exchange in terms of the trading volume.

Another Binance Smart Chain Project Suffers Attack

Projects on the Binance Smart Chain have suffered numerous attacks in recent months, with the Chainswap protocol losing millions of dollars as a result.

Chainswap Protocol Loses Millions of Dollars in Exploit

Projects hosted on the Chainswap protocol suffered an attack during the weekend, losing millions of dollars in the process. Chainswap is a protocol that helps projects launch Ethereum tokens on Binance Smart Chain (BSC).

The hacker was able to take control of the BSC contracts of various projects by exploiting Chainswap. Following the exploit of the Chainswap protocol, the attacker minted tokens directly to his/her address before selling them on Pancakeswap, Binance Smart Chain’s leading decentralized exchange.

Following the attack, the hacker’s Ether wallet now holds over $4.4 million worth of ETH.

 

The Chainswap team swung into action following the attack, pulling its liquidity temporarily to avoid further losses. The team wrote, “Smart contract is affected, not the wallets that interacted with Chainswap. Funds from individual wallets are safe.”

The other exploited tokens during the attack include Antimatter, Nord, Razor, Peri, Optionroom, Umbrellabank, Unido, Oro, Vortex, Blank, and Unifarm. It is still unclear if the affected users would get their funds back in full. Antimatter and Optionroom announced that they intend to compensate token holders on a 1:1 basis. However, the Nord team said they are still determining the best way forward.

The Binance Smart Chain Has Suffers Again

The Binance Smart Chain has suffered numerous flash loan attacks in recent months. In May, Burger Swap (BURGER) and JulSwap (JULD) suffered flash loan attacks, losing a combined $7.2 million in the process. Defi exchange Pancake Bunny also suffered an attack in May, with the attacker causing the BUNNY price to crash from around $146 to a low $6.17.

Binance Smart Chain had claimed that the attacks are targeted and organized. However, projects on the smart contract platform have lost millions of dollars to hackers over the past few months. The Binance Coin (BNB) is trading in the green despite the recent news.

BNB/USD chart. Source: FXEMPIRE

BNB’s price is up by 2.1% over the past 24 hours and is trading above $320. Binance Coin remains the fourth-largest cryptocurrency by market cap, just behind Tether, Ethereum and Bitcoin.

Binance’s U.K Problems Compound With Latest Santander Ban

Leading cryptocurrency exchange Binance has been facing regulatory challenges in the U.K, and the problems are only getting bigger. Spanish banking giant Santander has blocked its U.K customers from depositing funds into Binance.

Santander Blocks Binance Transactions

Spanish financial giant Santander announced yesterday that it would no longer allow its U.K customers to deposit funds into their Binance account. The bank said it had to block the transactions due to the Financial Conduct Authority (FCA) banning the cryptocurrency exchange.

In a tweet yesterday, Santander said keeping its customers is its top priority. Hence, it is preventing payments to Binance following the FCA’s warning to consumers. The bank said it is also concerned by the increase in the number of cryptocurrency funds in the U.K.

Binance continues to maintain that the ban issued by the FCA doesn’t apply to Binance.com, its global cryptocurrency exchange platform. The FCA banned Binance Markets Limited (BML), Binance’s U.K. entity, pointing out that the company doesn’t have the authorization to operate in the country.

Banks block Binance deposits

Since the FCA issued the ban on BML, some of the leading banks have blocked deposits to cryptocurrency exchanges. Barclays announced earlier this week that it would no longer allow its customers to fund their Binance accounts using its debit and credit cards. Natwest bank has decreased its daily limit to cryptocurrency exchanges, while Lloyds doesn’t allow its customers to fund their crypto exchange accounts using its debit and credit cards.

According to Binance, the ban doesn’t apply to Binance.com. A spokesperson for the exchange said they are disappointed with Santander’s decision since it considers their understanding of the event to be inaccurate. The spokesperson said, “We reiterate the fact that the FCA notice was not about user deposits on Binance.com at all.”

BTC/USD chart. Source: FXEMPIRE

Binance’s regulatory troubles come at a time when the prices of cryptocurrencies are down by over 40% from their all-time highs. Bitcoin is still struggling to break past the $35k barrier, and it is trading at $32,822 at the time of this report.

How To Choose A Cryptocurrency Exchange

Most people consider investing or trading in Bitcoin and other cryptocurrencies as intimidating. This is because the cryptocurrency market has been presented to most people as a very technical financial market.

However, that is not the case. You can start trading or invest in cryptos in no time, as long as you follow the right process. Following the right process starts by choosing the cryptocurrency exchange to use. Crypto exchanges are your gateway to the cryptocurrency market. Hence, the reason why they are important.

This guide helps you learn how to choose a crypto exchange and some of the best ones in the market.

Table of Contents

What Are Crypto Exchanges?

Crypto Exchanges are platforms where people can buy and sell cryptos like Bitcoin. You can use the exchanges to trade one cryptocurrency for another — converting Bitcoin to Ether – or to purchase the cryptocurrency using regular fiat currencies like the USD or GBP. These platforms reflect the current market prices of the cryptocurrencies they offer. The users can also convert the cryptos back to fiat currencies on an exchange, giving them the option to withdraw the funds back to their regular bank account or leave it on the exchange platform to trade back into cryptocurrencies later.

There are hundreds of cryptocurrency exchanges available to traders and investors. Hence, making it a tough decision to choose the best ones. However, the criteria outlined below will help you determine how to choose the right cryptocurrency exchange for you.

What Are The Criteria For Choosing Crypto Exchanges?

  • Authenticity and security.

Conduct your research to determine whether the exchange you are choosing is a legitimate and secure platform. The authenticity and security of a platform will help you determine if your funds would be safe with the crypto exchange. Traders have lost billions of dollars to scam platforms. Hence, ensure you check the reputation of the platform and the various security protocols they have in place to secure your data and funds.

  • Method of purchase.

The method of purchasing cryptos varies between platforms. Some platforms support deposits by bank transfer, some use PayPal, others accept credit and debit cards, and some only use cryptocurrency for purchases. Study the various payment options available on the platforms and choose the one most suited to you. For starters, with no coins, it is essential that you choose a platform that accepts fiat currency as it allows you to enter the market with little stress.

  • Supported coins and tokens.

Virtually all crypto exchanges support Bitcoin and Ethereum. However, there are thousands of cryptocurrencies, and some investors want to gain exposure to others aside from BTC and ETH. Thus, you have to know the coins and tokens supported by a crypto exchange before you choose one. Binance is the most popular because it grants traders and investors exposure to more cryptocurrencies than other platforms.

  • Fee structure.

The transaction fee structure differs across various crypto exchanges. Understanding the fee structure of a crypto exchange is crucial as it allows you to know what you are dealing with when conducting several activities. Ensure that you choose a platform that doesn’t have hidden transaction fees. You can choose a platform that offers flat transaction rates or those with a more flexible structure.

  • User interface and user experience.

This criterion is very important to your success as a cryptocurrency trader or investor. An exchange with an intuitive interface and good user experience makes it easier to trade the cryptocurrencies available. However, user experience is subjective, and people enjoy various interfaces. Furthermore, ensure to check the customer service and other customer-related functionalities offered by a crypto exchange. The easier to access the platform, the better.

The Top Four Cryptocurrency Exchanges For Experts And Beginners

There are hundreds of cryptocurrency exchanges available to traders and investors. However, these four are some of the leading and most powerful crypto trading platforms in the world.

Binance

Binance is considered the most powerful cryptocurrency exchange in the world. With a trading volume above $13 billion per day, Binance is the largest. It also offers traders access to hundreds of coins and tokens as it has one of the largest collections of altcoins in the market. In addition to regular spot trading, Binance offers other services such as staking, derivative trading services and more. Binance is available in over a hundred countries globally, providing crypto trading services to millions of people. Finally, Binance is a good option for anyone who wants more advanced charting than most other exchanges.

Register on Binance here.

Coinbase

Coinbase is amongst the most widely used digital currency trading exchanges, especially for traders in the United States. It is now a publicly listed company and provides services to crypto traders in the US, Europe and other parts of the world. Coinbase processes over $2 billion in trading volume per day. It offers crypto trading services to both retail and institutional traders, with the Coinbase Pro platform specially dedicated to the professional traders and investors. As a publicly-listed exchange, Coinbase offers insured custodial wallets for investors and traders to store their coins. Coinbase is highly secure but doesn’t offer as many cryptocurrencies as Binance.

Sign up with Coinbase here.

Kraken

Kraken is one of the oldest trading platforms currently in existence in the crypto space. Due to the number of years, it has been around, Kraken is admired by many and provides trading services to thousands of traders globally. Similar to Coinbase, Kraken is looking to become a publicly-listed company. Kraken allows traders to access hundreds of cryptocurrencies, fund their accounts using fiat currencies and cryptocurrencies, and gain access to other cryptocurrency trading services.

Register with Kraken here.

CEX.IO

CEX.IO is another leading cryptocurrency exchange. Its excellent user interface makes it a good platform, especially for people new to the cryptocurrency world. It allows users to access a wide range of cryptos, including the leading ones such as Bitcoin, Ether, and Litecoin. The customer support on CEX.io is also one of the best in the crypto space

Register with CEX.IO here

How To Use A Cryptocurrency Exchange

Using a cryptocurrency exchange is simple and involves a few steps. They are;

  • Register with the cryptocurrency of your choice.
  • Provide your name and other correct details and proceed to verify your account in accordance with the AML and KYC standards
  • Access your cryptocurrency exchange account and fund it using any of your preferred payment methods
  • Identify the coin or token you wish to buy and swap the deposited funds with the desired cryptocurrency. You can also buy BTC, ETH or USDT with the deposited fiat currency before swapping these cryptocurrencies with your desired coin or token.
  • If you intend to hold the coins for long, it is best to move them to a cold storage wallet. However, you can leave them on the exchange wallet if you intend to trade the coin.

Final Thoughts

Cryptocurrency exchanges are central to your success as a trader or investor. Hence, knowing how to choose a crypto exchange is crucial. The above-reviewed platforms are some of the best exchanges available to traders globally.

Binance’s CZ Gives Baby Doge Fans Something to Talk About

Now that Elon Musk has shined the spotlight on Baby Doge Coin, a meme coin that was inspired by its larger peer Dogecoin, other market leaders are beginning to pile on. Most recently, Binance CEO Changpeng Zhao (CZ) has played into the Baby Doge hype.

CZ caused a stir in the Baby Doge community after responding to a tweet with a gif of baby puppies. The Binance chief merely referenced the license plate of the car in the gif, which reveals his initials CZ, saying “nice plate number.” While CZ was subtle in his response, it was enough to get the Baby Doge Coin community talking and pontificating about a potential Binance listing.

Source: Twitter

Bullish Overtone

CZ was careful not to reference a Binance listing, and he is generally quick to remind his followers that his tweets are not financial advice. The overtone of this tweet, however, has Baby Doge written all over it. The gif was posted by Twitter account Soul_Lisker, who says they trade as a hobby and boasts more than 10,000  followers.

Many Baby Doge fans simply responded with moon emojis, in hopes that the price will go to the moon. In fact, the Baby Doge price has seen new heights since Elon Musk tweeted about the meme coin last week. It has exhibited some wild swings in its short history and most recently added more than 30% to its market cap in the last 24 hours alone.

Source: CoinGecko

Meanwhile, others who responded to CZ proceeded to exclaim what a good pairing Binance and Baby Doge could be. Some followers challenged him, speculating that it was a race between Binance and Coinbase to list Baby Doge Coin first. A listing on either trading platform could do a lot for liquidity in Baby Doge Coin, which continues to trade for fractions of a penny.

Listings on His Mind

CZ also tipped his hand over the weekend that he is thinking about more listings on Binance. In a tweet, he put feelers out to his followers on which cryptocurrencies the exchange should list next, adding a disclaimer that he is not in charge of such decisions. Of the more than 42K responses that CZ received, many were touting meme coins, including Baby Doge.

 

While Baby Doge Coin may be a newcomer to the cryptocurrency scene, it has been growing hand over fist. The cryptocurrency already has more than 300K holders in a little over a month since it launched.

The Crypto Daily – Movers and Shakers – July 5th, 2020

Bitcoin rose by 0.57% on Saturday. Reversing a 0.30% decline from Friday, Bitcoin ended the day at $9,147.7.

It was a mixed start to the day for Bitcoin. Bitcoin rose to an early morning high $9,104 before pulling back.

Falling short of the first major resistance level at $9,120.23, Bitcoin slid to a mid-afternoon intraday low $9,060.0.

Steering clear of the first major support level at $9,041.43, Bitcoin rallied to a late afternoon intraday high $9,204.0.

Bitcoin broke through the first major resistance level at $9,120.23 and second major resistance level at $9,167.27.

A late pullback saw Bitcoin fall back through the second major resistance level at $9,167.27.

The near-term bullish trend remained intact in spite of the recent pullback to sub-$9,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $6,400 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a bullish day on Saturday.

Cardano’s ADA led the way, rallying by 3.78%.

Bitcoin Cash ABC (+2.07%), Litecoin (+2.43%), Monero’s XMR (+2.52%), and Tezos (+2.38%) also made solid gains.

Binance Coin (+1.90%), Bitcoin Cash SV (+0.14%), EOS (+1.66%), Ethereum (+1.94%), Ripple’s XRP (+1.09%), Stellar’s Lumen (+0.61%), and Tron’s TRX (+1.06%) trailed the front runners.

Through the current week, the crypto total market cap rose to a Wednesday high $260.82bn before falling to a Thursday low $249.45bn. At the time of writing, the total market cap stood at $257.34bn.

Bitcoin’s dominance rose to a Monday high 66.29% before falling to a Saturday low 65.30%. At the time of writing, Bitcoin’s dominance stood at 65.48%.

This Morning

At the time of writing, Bitcoin was flat at $9,147.9. A mixed start to the day saw Bitcoin rise to an early morning high $9,152.3 before falling to a low $9,142.7.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Cardano’s ADA was down by 1.83%, at the time of writing, to lead the way down.

Ethereum (-0.03%), Litecoin (-0.33%), and Monero’s XMR (-0.56%) were also in the red.

It was a bullish start for the rest of the majors. Bitcoin Cash SV and Tron’s TRX were both up by 0.36% to lead the way.

BTC/USD 05/07/20 Daily Chart
BTC/USD 05/07/20 Daily Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall through the $9,137 pivot to support a run at the first major resistance level at $9,214.47.

Support from the broader market would be needed, however, for Bitcoin to break back through to $9,200 levels.

Barring an extended crypto rebound, the first major resistance level and Saturday’s high $9,204.0 would likely cap any upside.

In the event of a crypto breakout, Bitcoin should break through the second major resistance level at $9,281.23 before any pullback.

Failure to avoid a fall through the $9,137 pivot level could see Bitcoin struggle on the day.

A fall back through to sub-$9,100 levels would bring the first major support level at $9,070.47 into play.

Barring an extended crypto sell-off, Bitcoin should avoid sub-$9,000 and the 23.6% FIB of $8,900. The second major support level sits at $8,993.23.

The Crypto Daily – Movers and Shakers – June 10th, 2020

Bitcoin fell by 0.13% on Tuesday. Following a 0.35% gain on Monday, Bitcoin ended the day at $9,771.9.

It was a particularly choppy start to the day. Bitcoin rallied to an early morning intraday high $9,876.0 before hitting reverse.

Bitcoin broke through the first major resistance level at $9,840.57 before sliding to an intraday low $9,577.9.

The sell-off saw Bitcoin fall through the first major support level at $9,687.67 and second major support level at $9,590.93.

Finding support through the afternoon, Bitcoin rallied to a high $9,835.8 before easing back into the red.

The first major resistance level at $9,840.57 pinned Bitcoin back late in the day.

The near-term bullish trend remained intact, supported by last week’s gain.

For the bears, Bitcoin would need to slide through the 62% FIB of $6,400 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a bearish day on Tuesday.

Cardan’s ADA slid by 4.05% to lead the way down.

EOS (-1.41%), Ethereum (-1.02%), Litecoin (-1.23%), Ripple’s XRP (-1.49%), Stellar’s Lumen (-1.76%), Tezos (-1.36%), and Tron’s TRX (-2.34%) also saw relatively heavy losses.

Binance Coin (-0.34%), Bitcoin Cash ABC (-0.54%), Bitcoin Cash SV (-0.96%), and Monero’s XMR (-0.70%) saw relatively modest losses on the day.

Through the start of the week, the crypto total market cap rose to an early Tuesday high $275.84bn before sliding to a Tuesday low $265.84bn. At the time of writing, the total market cap stood at $273.04bn.

Early in the week, Bitcoin fell to a Monday low 65.79% before rising to a Tuesday high 66.21%. At the time of writing, Bitcoin’s dominance stood at 66.04%.

This Morning

At the time of writing, Bitcoin was up by 0.09% to $9,781.0. A mixed start to the day saw Bitcoin fall to an early morning low $9,759.5 before rising to a high $9,801.6.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it has been a mixed start to the day.

Cardano’s ADA led the down early on, with a 2.02% slide.

Bitcoin Cash ABC (-0.03%), Bitcoin Cash SV (-0.11%), Monero’s XRM (-0.12%), Stellar’s Lumen (-0.26%), Tezos (-0.36%), and Tron’s TRX (-0.10%) were also in the red at the time of writing.

Binance Coin (+0.37%), EOS (+0.04%), Ethereum (+0.14%), Litecoin (+0.22%), and Ripple’s XRP (+0.24%) joined Bitcoin in the green.

BTC/USD 10/06/20 Daily Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid sub-$9,740 levels to bring the first major resistance level at $9,905.97 into play.

Support from the broader market would be needed, however, for Bitcoin to break out from Tuesday’s high $9,876.0.

Barring another broad-based crypto rally, the first major resistance level and Tuesday’s high would likely limit any upside.

In the event of an extended crypto rally, Bitcoin could eye the second major resistance level at $10,040.03 before any pullback.

Failure to avoid sub-$9,740 levels could see Bitcoin struggle on the day.

A fall back through the morning low $9,759.5 to sub-$9,740 levels would bring the first major support level at $9,607.87 into play.

Barring an extended crypto sell-off, however, Bitcoin should steer clear of sub-$9,500 support levels.

How to Invest in Cryptocurrencies: The Complete Guide for 2020

Seasoned investors continue to cross over from the more mature asset classes and regulators have eased off on the Crypto assault that led to the 2018 slump.

With Bitcoin and the broader market sitting at more than 50% below their all-time highs, there is still plenty of incentive to enter the crypto sphere.

For many, however, the crypto market may seem like a maze. There are a tremendous number of exchanges and brokers and that is before considering regulations imposed by regulators in recent years.

Investing in cryptocurrencies requires a level of due diligence not too dissimilar to the research involved in other more mature asset classes.

The volatility and sizeable returns on offer have certainly allowed investors to dream. After all, Bitcoin has yielded a mass number of Bitcoin millionaires, more commonly known as whales.

So, how do we invest in cryptocurrencies?

While there are multiple considerations, some are more important than others when looking to enter the crypto market.

Just jumping in on a whim that the majors will reach historical highs is a dangerous game. This is no dissimilar to jumping into the equity markets when they are sitting at record highs.

There is one material difference, however. The regulatory landscape has materially changed since late 2017. For this very reason, investors may continue to face plenty of uncertainty before the market can find a return to the hay days.

Understanding the key drivers and market characteristics are therefore particularly important.

Basic Essentials

In this guide, you will learn the key preparations that you need in order to build your cryptocurrency portfolio.

Before making an investment, deciding on the source of funds would certainly be step 1.

In spite of the current interest rate environment, it is recommended that you avoid funding the portfolio with debt.

Credit Card or Bank Account – Investors will, therefore, need to decide on cash or credit card. As an investor, you can either fund your crypto trading account with a debit/credit card or by funding with a bank transfer.

It is worth noting, however, that certain jurisdictions have banned the funding of crypto exchanges with credit cards. Some banks have even taken a step further and banned the transfer of fiat money to such exchanges.

Nonetheless, the simplest method to fund a crypto exchange account is with a credit/debit card. This does tend to come with higher fees and caps on transfer amounts, however.

Fiat to Bitcoin Exchange

First, you need to decide on which cryptocurrency or cryptocurrencies that you wish to trade.

You would then need to identify the exchanges that have the largest trading volumes for the chosen cryptocurrencies.

One consideration here is your source of funds. Not all exchanges allow fiat money deposits. A vast majority of exchanges restrict deposits to Bitcoin.

Carrying out the necessary research on the most appropriate exchange is important. If you are looking for an exchange that accommodates the purchase of Bitcoin with fiat money:

Coinbase is popular and easy to use, with a strong global presence. The exchange has the necessary security measures as well as delivering adequate liquidity for trading.

When searching for the right exchange, it is worth noting that each has its pros and cons. The important thing is to identify the exchange that, first and foremost, delivers on your personal requirements.

Other popular exchanges include:

These crypto exchanges not only cater to Bitcoin investors and traders but altcoins in general.

It’s also worth considering exchanges that offer a wider choice of cryptocurrencies and altcoins. This would allow you to diversify your investments and gain exposure to the broader crypto market.

Bitcoin to Crypto Exchange

The next exchanges that you should look into are the ones you will be using for the Altcoins. Many of the smaller coins, my market cap, are generally not supported by larger exchanges. Generally speaking, the only way to buy those smaller coins is by buying them using Bitcoins or Ethereum.

On most exchanges, you need to deposit Bitcoins as you cannot buy coins directly from the exchange. This is why it’s crucial that you have a Fiat to Bitcoin Exchange first.

You can buy Altcoins from Binance, BitTrex, Kucoin, and Kraken.

Choose the Right Wallet

The next step in the crypto investment journey is to select the appropriate crypto wallets. It is essential to have your crypto wallet before buying any cryptocurrencies. You will need wallets to store your coins within your secure personal wallets.

While exchanges allow investors to hold purchases coins within assigned exchange wallets, it’s recommended that you withdraw your cryptos and hold them in private wallets. This protects you and your investments from hackers and theft. It is also worth noting that wallet compatibility also needs to be considered.

Crypto wallets to choose from include but are not limited to:

Before Getting Started

Prior to deciding on the most suitable crypto exchanges and wallets to support your trading activity, you need a trading strategy. As part of your strategy build, there are a number of factors to keep in mind:

  • Only invest in what you can afford to lose
  • Do not take a loan to invest
  • Do your own research, monitor the news wires, and view technical analysis on the respective cryptos that you decide to go with. FX Empire covers the largest cryptos, with exchanges also providing technical analysis to their users free of cost.
  • Set realistic expectations, don’t be greedy, and know when to accept a loss. (It is easy to be influenced by the news wires and overzealous analysts talking of the next crypto boom or doom. It is best to block out such noise.

Forming a Crypto Trading Strategy

While identifying the most appropriate wallets and exchanges are vital, formulating a trading strategy is undoubtedly the most important pre-investment step for a prospective trader.

Key Decisions:

  • Cryptocurrency selection – A blend of the largest cryptos along with medium-sized to small cryptos by market cap is recommended. This also addresses any liquidity issues for the overall portfolio.
  • Worth noting – A certain cryptocurrencies may have values that exceed the intended investment size. In such instances, identifying an exchange that offers CFDs or partial investment of a crypto coin is important.
  • Trader durations – For traders with adequate time to trade, a short, medium, and longer-term trading strategy would make sense.
    • Smaller size, more volatile, coins increase earnings potential intraday. These should ideally form no more than 20% of the total investment pool.
    • The Largest coins should form longer-term strategies. With adequate research, however, smaller coins may also form part of this strategy.
    • For the more medium-term strategies, which would be anything beyond intraday but less than a month, a blended portfolio is recommended. This can comprise of small, medium, and large-cap coins.
  • In any trading strategy -using risk management tools and indicators is recommended. While there are fees incurred for using stop loss and trade profit, using these would protect your downside.

80/20 Rule

When considering crypto market volatility and the rise and fall of the smaller coins, an 80/20 blend of large-cap to mid to small-cap would be recommended.

This would provide the opportunity to make sizeable gains any sudden surge in the small to mid-cap cryptos, whilst also holding the more stable coins. Do note that stable is a relative term in the crypto market. Even Bitcoin can see sizeable swings on a given day…

Does the Number of Coins Matter?

It ultimately boils down to the investment strategy that you build. With a blended portfolio, 1 Bitcoin may make up your large-cap portfolio, or 20 Litecoin for instance. It is important to focus on the blend rather than the actual number of coins that make up each component of the portfolio.

Recommendations

Below is a range of cryptos to consider the different components of your portfolio. This is not a comprehensive breakdown of the broader market and there may be coins that are more to your liking. As always, carry out the necessary research before hitting the buy or sell order…

Large Caps

Tezos, Ripple, Bitcoin, Ethereum, EOS, Cardano, Bitcoin Cash SV, Bitcoin Cash, and Binance Coin.

Mid-Caps

Zcash, VeChain, True USD, Tron’s TRX, Qtum, OmiseGo, OKB, NEO, Ethereum Classic, Dogecoin, DASH, and Cosmos. These have been selected based on 24-hour volumes and have market caps of between $100m and $1bn.

Low Caps

This will consist of cryptos with a market cap of less than $100m and will likely have lower trading volumes. That means less liquidity, which is why this component should form a lower proportion of the portfolio.

Unibright, Theta Fuel, Status, MCO, Matic Network, IOST, HyperCash, BitTorrent, and ABBC Coin.

Next Steps

Once you have built your strategy, selected your cryptos, opened your trading accounts, and set up your wallets, it’s time to trade.

While you may be able to have a better sense of when to enter more mature markets, such as the global equity market, it’s less simple to pick the right entry point in the crypto world.

Other than entering at an all-time high, there’s no hard and fast rule other than waiting for any sell-off to flatten out.

Once you start trading, remain disciplined, and ensure you run your risk parameters each day.

These will include your charts that should have your support and resistance levels embedded.

And remember, not every trade will yield a return, so don’t panic should your first trade take a hit.