As tempting as it can be to buy altcoins using perpetual futures, there are a few hidden traps that one should monitor closely. Over the past few years, numerous exchanges began to offer altcoin futures quoted in Tether (USDT) and stablecoin pairs, which eventually became the standard. This change is more convenient for most traders but still presents some serious issues for those willing to keep long positions open for more than a couple of weeks. Before opening any trade at an exchange offering perpetual futures, traders should be aware that stronger wicks can run stop losses, investors lose the …

The public nature of blockchains continuously generates an endless stream of data, as every single transaction and address leaves a clear trace. This information, known as on-chain data, provides a way to precisely analyze cryptocurrency network activity. Some on-chain indicators such as the number of active addresses, HODL wave, and hashrate have become well known in the industry, but the general public is really only scratching its surface. As the number of on-chain metrics available has grown to an overwhelming amount, figuring out which are the most useful to the average investor has also become a task. A good place …

There’s an increasing number of exchanges offering futures contracts trading. So far there’s Binance, FTX, Bitfinex, Bybit, and Kraken, to name just a few. Volumes are also picking up across the board and it appears that retail traders are growing more interested in experimenting with these complex instruments. As recently reported by Cointelegraph, there are multiple benefits to using futures trading. Traders using them can hedge and maintain peace of mind during periods of high volatility. Futures contracts can be used to reduce risk and leverage bets when the appropriate strategies are deployed. Professional traders frequently utilize futures contracts for …

Bitcoin’s (BTC) options markets are finally taking off at CME. This week Cointelegraph reported that the combined volume traded over the last ten days surpassed $140 million, as institutional investors delved in call options. The buyer of a call option can acquire Bitcoin for a fixed price on a predetermined date. For that privilege, this investor pays an upfront premium for the call option seller. CME Bitcoin Options Volumes - USD. Source: Skew As halving uncertainties became less of a risk, institutional investors began mounting bullish positions. Despite being more complicated then futures trading, options markets allow investors to leverage …

Recent data from Skew shows that Bitcoin’s (BTC) implied volatility plummeted after yesterday’s halving occurred. Generally, volatility is at the heart of any professional trader as it measures daily average price oscillations and gives insight into market conditions. As previously reported by Cointelegraph, Bitcoin’s halving event tends to increase volatility due to its significant uncertainties. Traders anticipated that the price would either rally or dump during and after the event, thus the short term spike. At the time of writing the metric has gone back to previous levels. Uncertainties can drive volatility For the past few months analysts have spun …

Many investors believe a significant price swing is about to happen, as the next Bitcoin (BTC) halving is now less than 15 days away. Despite its demonstrated and incredibly long term potential, no one knows for sure how exactly Bitcoin’s price will respond during and after the third halving. Fortunately, this time, the market has matured to the extent that traders can now deploy strategies to generate gains on both sides of Bitcoin’s price action. Derivatives markets are a relatively new addition to the crypto market, and over the past two years, they have developed enough to allow investors to …

The global economy is experiencing massive shockwaves due to the continuing global coronavirus pandemic. Markets are at record levels of volatility, seeing historic swings in both directions on a near-daily basis. In the midst of the crisis, pundits and talking heads on television are switching tunes like a DJ quickly rotating through songs. One day they believe the bottom is in, while the next they are screaming for a repeat of the Great Depression. As all of this occurs investors are scared and while they should be nervous, it’s also good to have a plan of action for when catastrophic …

Dennis Gartman began his trading career in the 1970s and over the years he amassed a ton of experience trading Forex, treasuries, stocks, commodities, and derivatives. Those familiar with Gartman will know that he wrote a very prestigious daily newsletter for 30 years, and it is held in high regard by institutional investors. Known for his pragmatism and skepticism, Gartman crafted some of the most contrarian trading calls ever registered, often hitting the bullseye. Gartman eventually wrote down some “rules of trading,” and these have been revised and honed over time. Most of Gartman’s rules work for any market, but …

Institutional traders have long known the benefits of derivatives trading, including leverage and hedging. By trading options markets, one can predetermine maximum gains and losses, even with volatile assets like Bitcoin (BTC). Despite being far more complex, such instruments allow traders to generate gains independent of what happens over the next weeks or even months, which is essential for traders’ peace of mind to achieve optimal performance. Retail traders have only recently begun using derivatives, although they have focused almost exclusively on futures contracts offered by BitMEX, OKEx, Binance and so many others. The main problem here is liquidation risk, …

This week as equities markets plummeted across the globe, Bitcoin (BTC) price also faced a sharp correction. Over the past week Bitcoin price has dropped $1,500 and currently trades at $8,454, a new four week low. Since the start of the year Bitcoin and most major altcoins showed an impressive gain in price, leading analysts to suggest that a bull-run was brewing for 2020, an idea now being challenged by the current pull-back. As has been the norm, on one side, there are bullish enthusiasts aiming for sky-high valuations; on the other, there are more conservative analysts raising questions about …

Since the start of the year, Bitcoin (BTC) price has been as high as $9,200 — a 2-month high — while going as low as $6,900 on Jan. 3. Bitcoin’s volatility is one of the most frequently discussed issues that arise when investors evaluate Bitcoin as an asset class. However, its volatile behavior is what provides an opportunity for investors to take advantage of the price movements and make a profit. Following predictions as optimistic as the $100,000 forecast based on the stock-to-flow model, investors may foresee another period of high price speculation, opening the door for a wider set …

The talk of the crypto community in the past few months has been the gaps on the Bitcoin (BTC) CME (Chicago Mercantile Exchange) futures chart. Bitcoin trades 24/7 on major exchanges but does not trade on weekends on the CME. This often creates a gap, or empty space on the chart when trading resumes on the CME. There is a famous saying in Physics: “nature abhors a vacuum.” This is a postulate attributed to Aristotle, who articulated a belief, later criticized by the atomism of Epicurus and Lucretius, that nature contains no vacuums because the denser surrounding material continuum would …