How to maximize profit with Trailing Stop Loss?

 


A Trailing Stop Loss is a modification of a typical stop order that can be set at a defined percentage or dollar amount away from a security's current market price. For a long position, an investor places a trailing stop loss below the current market price. For a short position, an investor places the trailing stop above the current market price.

A trailing stop is designed to protect gains by enabling a trade to remain open and continue to profit as long as the price is moving in the investor’s favor. The order closes the trad

Now understand Trailing Stop loss with an example. 

Assume you bought a coin at the price of 100 and put the trailing stop loss at 90 (10 points below the buying price).

If the price drops to 90 then your stop loss will be activated and the trade is closed with a 10% loss. 

But if the price of the coin increase to 130 then the trailing stop loss automatically shifts to 120 (means 10 points below the current price). If the price drops to 120 then the trade is closed automatically (the 120 trailing stop loss will be activated), If the price continues to increase the trailing stop also increase with it and remains always 10 points below the current price. You need to do it manually. 


Currently, Binance only supports trailing stop loss for the Futures market but sooner we will see the feature for spot trading also.

HOT vs COLD Wallet CryptoCurrency?


 

Security is still the main concern in Crypto Industry, during the past couple of years we saw various Hacking, Theft or Even Exchange Shuts Down.

For an individual is keeping funds on exchanges or internet-connected wallets is no safer, we must have to know what is COLD & HOT Wallets are?

HOT Wallet: The Wallet which is connected to the internet is HOT Wallet, such as Exchanges, Web Wallet, MEW, etc. The main issue with these wallets is that these are highly accessible due to that chances of hacking are much.

COLD Wallet: The Wallet which is not connected to internet is COLD Wallet, you can say these are offline wallets, you can store your funds offline, such as LEDGER Wallet, Trezor Or Paper Wallet. Due to their offline nature funds are more secure in the respective ways.

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What are Algorithmic Stablecoins?

 

Algorithmic Stablecoins
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Seigniorage or Algorithmic StableCoins is the stable coins that are designed to Expand or Contract their supply according to the Demand & Supply of the market. 

Before getting into Algo Stablecoins, let's understand what are stablecoins in short, 

Stablecoins are acting the same as a fiat currency in Crypto Space, you can say it a Fiat Currency of Crypto Space in Digital Form. These coins are generally backed by the Fiat Currency of the particular country like (USDT by Dollars) or other Cryptocurrencies or Some Precious Metals. 

USDT (Tether) is one of the most popular Stablecoin in #Crypto Space, One unit of a #Stablecoin equals $1.

Algo-StableCoins method uses ‘Smart Contracts’ that automatically expand and contract the supply using algorithms to maintain value.

Said StableCoin has a $1 value. The price drops to $0.80, indicating the supply of StableCoins is higher than the demand. The algorithm uses seigniorage to buy ‘said’ StableCoin, thereby decreasing supply and pushing the price back to $1.

Users are essentially investing in the coins. When said StableCoin trades above $1, the algorithm issues additional tokens increasing supply until the price returns to $1.

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What is Ethereum 2.0?

 


As the name suggests Ether 2.0 is the updated version of Eth blockchain named as Eth 2.0, One of the big difference we will see in Eth 2.0 that it moved away from Proof-of-Work, a consensus mechanism, means the mining of Eth will not be available in future & it will be shifted on Proof-Of-Stacking (POS) mechanism, Another big change will happen on the transactions part, Eth 2.0 will considerably handle more transaction per seconds, which will reduce the fees of the network as well.

Eth 2.0 will come with Stacking mechanism, means a member can stake their Eth in order to run a node on ether network to become a validator of the transaction, the minimum eth stacking is 32 ETH in order to run a node and member get interested on that as well, Well it considerably a great updates ahead people believe that increasing capacity through Ethereum 2.0 will also help make transactions cheaper. As we get closer and closer to the upgrade, we’ve seen costs rise substantially, which is great news for miners but bad news for consumers.

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