Crypto Guides, Knowledge & Insights

Here’s 3 ways the relative strength index (RSI) can be used as a sell signal

A trade is profitable only if both the purchase and the sale are done at the right time. Many times, traders sell their positions too early and leave profits on the table or they keep holding on to the trade even after the trend changes. This leads to profits evaporating, and many times the trade turns into a loss.　　While it is important to trade with the trend, it is also important to keep an eye out for signs of a reversal. If traders learn to spot these warning signs, they can avoid buying at the tops and selling at the bottoms, which is a common experience for many new traders.　　One tool that can help traders spot trend reversals is the relative strength index (RSI) indicator.　　 RSI basics　　The RSI is a momentum oscillator that measures the magnitude of recent price changes and as it moves between 0 and 100. Generally, it is used to spot the overbought and oversold levels on any asset.　　An asset is deemed to be overbought when it exceeds its intrinsic value, either in the short term or long term, and this is an early sign that it could be vulnerable to a correction.　　Similarly, oversold readings suggest that

2021-06-04Deep Dive

DOJ to Give Ransomware Attacks Same Priority as Terrorism: Report

In brief　　The US Department of Justice will elevate ransomware hacks with to a similar priority level as terrorism, Reuters reports.　　Recent high-profile ransomware attacks have affected the supply of meat and gas nationwide.　　In the wake of ransomware attacks against Colonial Pipeline and the meat processing company JBS, the US Department of Justice will elevate ransomware to a similar priority level as terrorism, Reuters reports.　　Ransomware is a type of malicious software that can freeze or otherwise disable a network until a ransom is paid. A Russian hacker group called DarkSide used ransomware against Colonial Pipeline last month, taking out much of the East Coasts oil and gas supply. The company reportedly paid a multi-million dollar ransom in Bitcoin.　　Earlier this week, another Russian group called REvil used ransomware against JBS, taking out meat plants nationwide. The company has not disclosed whether it paid out a ransom.　　Ransomware hackers tend to demand payment in cryptocurrency, since its relatively easy to obscure the paper trail. DarkSide reportedly takes payment in both Bitcoin and Monero (a privacy coin). According to data from the blockchain analytics firm Chainalysis, the amount of crypto extorted from ransomware attacks grew 311% last year alone.　　Reuters also reports that US attorneys offices across

2021-06-04Deep Dive

Why On-Chain Governance Is Critical for Blockchain Growth and Longevity

The decentralized properties that make blockchain architecture unique can also be its Achilles heel, demonstrating the importance of bringing network governance on-chain to promote a more inclusive and democratized consensus on network upgrades.　　Governance Transformation Is the Key To Unlocking Decentralizations Innovative Potential　　There are many bitter arguments over blockchains, whether involving how they should be run, the consensus mechanisms, implementing changes, or upgrading the frameworks. These debates have often put network communities at odds, creating schisms that eventually unfolded in hard forks. Despite the success of these consensus systems as evidenced by rising transactions and valuations, Bitcoin and Ethereums future could be in doubt.　　The term consensus has to do with everything enshrined in code for the two largest networks, like transfers of value, how much miners get paid, smart contract operations, and other basic network-coded functionality. Unfortunately, that means that network consensus is not a part of addressing any severe problems or implementing even the tiniest upgrades. This parallel governance process often occurs exclusively off-chain in a highly politicized manner.　　For evidence to support this very point, just look at the aftermath of the Ethereum Classic debacle. Or consider the amount of time it has taken Ethereum to update its consensus mechanism

2021-06-04Deep Dive

Former U.S. congressman Ron Paul says legalize Bitcoin and ‘let it compete with dollar’

Ron Paul, former 12-term US Congressman from Texas, warned about the intricacies of the current inflation and the governments crackdown on crypto in an interview for Kitco News.　　The former presidential candidate argued his case for the legalization of Bitcoin (BTC), advocating free market and competition, as he warned about the consequences of Federal Reserve (Fed) policies.　　Gold and Bitcoin　　Corona-charged inflation due to unchecked money printing from the Fed is going to be detrimental for the economy, according to Paul. He pointed out that governments have controlled the money for centuries and are not going to give it up, adding that “one of the most appealing aspects of crypto is the absence of government and central banking.”　　The debasement of the dollar caused rising interest in Bitcoin as a safe-haven asset, but Paul is particularly concerned about that. According to him, “the dollar will stick around, but won‘t be worth much,” leading to the government’s crackdown on cryptocurrency.　　He applied the same concern to Bitcoin as to gold, referring to Roosevelts move from 1933, which imposed limitations on gold ownership in the US under the pretense that the depression caused “hoarding” of gold and was stalling economic growth.　　The order was repealed during the Ford

2021-06-04Deep Dive

Binance CEO CZ Believes BNB Has The Potential To Become Bigger Than Apple And Amazon

Binance Coin could certainly topple the market value of leading traditional firms. The asset has recorded an incredible upsurge in value, and to speculate that it could continue in the same direction, resulting in a sky-high market cap that could outperform leading tech giants like Amazon and Apple is objectively valid.　　However, the head of the Binance exchange and the Binance blockchain, which the BNB coin is built upon, is not predicting that the above will be the case. He is in fact totally certain that BNB knocking out either of both companies will become a reality in no time.　　BNBUSD Chart By TradingView　　Can BNBs market cap surge past $1 trillion？　　Popular Bitcoiner and Crypto YouTuber Davinci Jeremie caused the CEO to make the big reveal when he tweeted the following:　　“I believe Binance coin BNB will be bigger than Apple or Amazon because its a stock, a crypto, and smart chain.”　　CZ, although disagreeing that BNB is a stock, responded in affirmation to the other parts of Davinci‘s tweets saying “Not a stock, but the other parts are spot on. Where we are going, we don’t need stocks.”　　Looking at current market metrics, CZ‘s assertion seems like a long shot. At press time, BNB’s market

2021-06-04Deep Dive

Banking and Financial Services Reignite the European Industry Region

Digital technology firms such as Backbase, SmartMessage, Abaka, and Creatio joined the foremost edition of Finnovex Europe to formulate evolutionary strategies for re-igniting the banking and Financial Services Industry (FSI) of the European Region.　　The Leading Summit on Financial Services Innovation and Excellence, which kicked off from May, 24 – 25, 2021 on the hosts virtual platform witnessed the attendance of CEOs, CDOs, COOs, CIOs, CISOs, CTOs, CROs Senior Vice Presidents, Vice Presidents, Directors, and Heads of departments from the Banking and FI industry. The event, being organized by Exibex, which took place virtually is a part of the Finnovex Global Series.　　This years edition was themed “Evolution Strategies for Reigniting the Industry” to reiterate the requirement for banks to build up their digital identity by leveraging technologies to stay relevant in the current digitalization era.　　The Head of CEE at Backbase, Pierre-Alexandre Boulay highlighted the “One-Platform Vision” roadmap for banks and financial institutions. These include – delighting customers, empowering employees, ochesterating value, and digitising operations.　　Backbase is a fast-growing fintech software provider that empowers financial institutions to accelerate their digital transformation and effectively compete in a digital-first world. It was founded in 2003 and privately funded, with headquarters in Amsterdam (HQ Global) and

2021-06-04Deep Dive

Elon Musk’s reputation plummets following his Bitcoin energy attack

Earlier this year, Elon Musk was considered a crypto hero following Teslas $1.5 billion Bitcoin buy. But according to sentiment tracking firm Awario, public opinion has since swung the other way.　　This change of heart comes following Musks announcement that Tesla would no longer accept Bitcoin as payment for its vehicles. The now infamous tweet gave an environmental justification for the action.　　Many considered this as an attack on the leading cryptocurrency. As such, its not surprising that attitudes towards the eccentric billionaire have sunk to a new low. But just how bad has it become？　　Awarios findings　　Data from Awario shows tweets of a positive opinion on Musk reached a new low last month. This corresponded with his U-turn on Bitcoin and the subsequent crash in its price.　　At the start of this year, tweets in favor and against Musk were level pegging in number. But by May, the ratio of positive-to-negative sentiment dipped by about a quarter hitting its lowest proportion since October 2020, which was when Awario first began tracking this metric.　　Back then, neutral tweets about Musk formed the biggest category, accounting for 66% of tweets. This was followed by negative tweets at 19.2%, and positive tweets bringing up the rear at

2021-06-04Deep Dive

Institutions Gobbling Up Cardano and Two Additional Altcoins During Crypto Market Plunge: CoinShares

Digital assets manager CoinShares says institutional investors are buying Cardano (ADA), XRP and Polkadot (DOT) as the crypto market struggles to recover from a massive correction.　　In a new report, the firm says that investors are adding positions to their crypto holdings amid the widespread plunge in the prices of digital assets.　　The report shows cryptocurrency investment products recorded a net inflow of $74 million last week after two weeks of record outflows worth $151 million.　　Data shows that Ethereum (ETH) attracted $47 million worth of investments in that period, accounting for nearly 27% of the inflows last week.　　CoinShares adds that proof-of-stake coins are the other most popular assets among crypto buyers with ADA, DOT and XRP attracting inflows worth $5.2 million, $3.8 million and $4.5 million, respectively last week.　　“Investment product flows indicate that altcoins remain popular with inflows into all altcoin investment products.”　　In the same time frame, Bitcoin witnessed outflows of $4 million.　　Overall, the amount of ADA, DOT and XRP under management (AUM) is valued at $27 million, $41 million and $45 million, respectively.　　Bitcoin (BTC) remains on top with over $30 billion in AUM, followed by ETH with $11.82 billion.

2021-06-04Deep Dive

Blockchain.com Hops on Miami Hype Train, Moves US Headquarters Away From NYC

Blockchain.com, which runs a crypto wallet and exchange, is moving to the Magic City.　　Miami Mayor Francis Suarez announced the news alongside Blockchain CEO Peter Smith this morning, not far from where the Bitcoin 2021 Conference officially kicks off tomorrow.　　According to Blockchain.com, the firm wants to hire 300 full-time employees by the end of next year, and in his City Hall announcement Suarez said the salaries would be between $80,000 to $140,000. The company certainly has the capital to expand its workforce. Its raised $420 millionin financing in the last several months—$120 million in a strategic growth round in February followed by $300 million for a Series C in March.　　At the time, Smith said the company planned to expand its product line, look to acquire other companies, and hire more employees, many of whom work out of London, San Francisco, and New York. While its moving its US headquarters from New York, it continues to list London as its global headquarters.　　Blockchain cited Miamis “welcoming regulatory environment” and its status as a financial center for Latin America as key factors behind locating there.　　Suarez has been a key pitchman for the city, attempting to lure FinTech firms and make Miami “the most crypto

2021-06-04Deep Dive

Security tokenization may be the next big use case for blockchain tech

Tokenized Apple, Tesla and GameStop stocks have surpassed $1 million per day in trading on cryptocurrency exchanges Binance and FTX.　　Is tokenization of securities the way of the future？ In an interview with Raiffeisen Bank International, the bankers leading its blockchain research hub stated that indeed, by 2030, most securities will have been tokenized. To gain a deeper understanding of how blockchain technology can transform traditional stock exchanges, Cointelegraph Research compiled a dataset of all security token offerings and found that almost $5 billion was raised in 2020.　　Cointelegraphs first report on security tokens explains how bond and stock tokenization works, how many assets have already been tokenized, what returns they have provided, and how they are regulated in different countries.　　A new opportunity　　A recent trend is the self-custody of securities and the reemergence of bearer financial instruments. Tokenization of financial instruments allows investors to remove securities from an exchange and send them to a new exchange with a private key.　　Exchanges can attract investors to deposit securities by offering them interest on their deposits for lending their securities to the exchange, which will in turn lend the shares to other borrowers. Exchanges may also allow investors to use their securities as collateral for

2021-06-04Deep Dive

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