How To Make Money In A Crypto Bull Run And The Vital Signs You Must Know

A crypto bull run presents an opportunity for early investors to make above-normal profits. Here are the vital signs that you need to know.

Photo by Pixabay on Pexels.com

3 unmistakable vital signs of a crypto bull run

Cryptocurrencies in general aren’t yet general-use currencies, or at least not for most people. While the account of investors who own and trade them grows every day, they’re still mainly used as speculative currencies and fast money moves.

The direct result of this is that the crypto market behaves more closely to the stock market than the currency flip– with regular, often long, bull and bear runs that can make or destroy fortunes. For traders, this means that they need to keep an eye on the prices of cryptocurrencies and also for signs that a token might be entering a bear or a bull run.

Read Also: The Big Breakout of Uniswap, Justswap, Trustswap, and The Incredible ROI As DeFi Unfolds

How to spot a bull run

The earlier a trader can identify a bull run, the better. Being able to tell when a bull market starts means having a headstart on profitable investments, thus maximizing profit. Luckily for many traders, decades of stock market trading and observation have armed us to know when a cryptocurrency is entering a bullish market. Several of the signs for this are:

A sharp drop followed by immediate recovery

Photo by Pixabay on Pexels.com

The first step in learning how to make money in a crypto bull run is to know the vital signs. Crypto prices, just as stock prices, sometimes see sudden variations. These sudden price changes are often caused by external factors or unexpected news that lead people to suddenly lose trust in the cryptocurrency. The disenchanted then dump their crypto immediately, causing an offer overflow against a steady or dwindling demand that brings prices down.

The thing is, the despair that leads crypto investors to immediately sell all they have isn’t necessarily shared by everyone else. Spurred by the sudden price drop, other traders might see opportunity and decide to buy – turning a sudden, sharp decline into a steep rise.

When this happens, a bull run is likely – as quite often prices recover in the short-term to at least the same levels they had before the crash. In many cases, the post-crash prices can even go higher than pre-crash threshold, leading to even higher profits for those who recognized the opportunity.

Unstable prices can breed bull markets

A more common type of bull run is often dictated by short to mid-term pricing data: A currency whose price goes up, then down, then up again might be entering a bull market.

This follows the same logic as above, to some degree: Before prices start to go high, they first go low, although not necessarily as suddenly as in the previous example. Chart analysts usually refer to “M patterns” and “W patterns” to signal expected behavior in a cryptocurrency.

An M pattern is a bad one – it’s the pattern drawn in the graph when a price rises, then lowers, then rises… only to then lower again and continue its way down. An M pattern is a sign of a likely, but not assured, bear run.

For bull runs, it’s the W pattern you want to see: A downward trend switches direction, the price hike is short-lived before it starts going down again, and then before long it goes up – that’s a sign of a likely bull market. The W is created by market forces (offer/demand and prices) stabilizing over a period of time, and then the proper bull market begins.

Do note that an M pattern can give way to a W pattern and otherwise, so it’s always good to keep an eye out on market behavior – as these patterns don’t guarantee a bull or bear market. They’re just predictors.

Large gaps in the order book

All cryptocurrencies – and stocks, and valuables – are traded via order books. Sell orders are placed by people who own crypto and want to sell it at a certain price, while buy orders are placed by people with money, hoping somebody will sell them crypto at specific prices too.

Read Also: The Price Volatility of Bitcoin and Cryptocurrencies Explained

There’s always a gap between buy and sell orders, which is usually where offer and demand meet, giving place to the standardized price for a cryptocurrency at any given moment.

The gap, however, is usually very small. When this gap looms large, it can be a sign of an incoming bull run.

Essentially, a large gap between the prices of sell and buy orders means there’s a hole in the market – for example, if the lowest sell order sits at $10,000 and the highest buy order sits at $9,000, then it’s easy to tell the market is due for a correction somewhere in between. This correction often comes in the form of a bull run.

The bull runs caused by large gaps can be short-lived, but they can be extremely valuable for those who learn to spot said patterns, as they can then make decent to large ROIs over a short time.

Other indicators

The above are only a few of the more obvious indicators of incoming bull runs for cryptocurrencies. There are more, and there are some that can only be predicted by looking outside the market: External events and news.

It’s not uncommon for a cryptocurrency to have its price go up when large developments are announced – but the detail here is, those large developments often have been on the cards. Just as well, an external event that drops the price of a token due to, for example, political reasons, could well drive down the prices of others in the short run.

In truth, the best way to predict the market falls somewhere in between the charts and the news. Charts tell pricing story independent from the market itself. News tell you what’s going on, but not how prices are acting at that moment. Know what’s going on in both sides, however, and you might be able to predict the future of the market.

Must-Read: How Leverage Trading Works When You Use The Binance Cryptocurrency Exchange

The 3 Trusted Global Cryptocurrency Exchanges For Futures Trading

Futures trading in the cryptocurrency space has expanded in the last 12 months with several platforms now offering this investment window. Here are the leading exchanges making their marks.

Futures trading for Bitcoin, other cryptocurrencies, or financial assets, generally, is a contract to buy or sell a particular financial asset at a fixed price after a period in the future. The goal is to prevent negative changes in the prices of such financial assets in the market.

But as simple as this sounds, knowing the right platform to carry out this kind of trade is essential, mainly because the right platform will help to regulate the contracts that have been made, and help to prevent conflicts from happening in the future.

There are reliable and regulated platforms for futures trading of cryptocurrencies, which should a relief for people who are sceptical about the decentralized and unregulated nature of cryptocurrencies.

Two big regulators overseeing cryptocurrency futures trading in America, and these are Chicago Board Options Exchange, CBOE; and Chicago Mercantile Exchange, CME. However, these two bodies are strictly regulated by American laws and may not directly apply to you.

So, in this article, I will exclude those CBOE and CME and talk about the other three best exchanges that apply more to you irrespective of your current location. The best 3 global exchanges for futures trading include the following:

1. Bitmex Exchange

BitMEX was launched in 2014 and is known for its beautifully designed platform. In addition to being an impressive platform, it also contains many useful tabs. However, it has a difficult user interface in my opinion.

Many cryptocurrency futures are served on the platform. But to start with, Bitcoin Futures are traded in perpetual contracts, which implies that the contracts don’t have an expiry date. Also, the offers have a leverage of about 1:100.

Other crypto future contracts traded on this platform are Cardano (ADA), Bitcoin Cash (BCH), EOS, Ethereum (ETH), Litecoin (LTC), Ripple (XRP) and TRON (TRX).

2. Kraken Exchange

Ethereum, Litecoin, Bitcoin Cash, Ripple, and Bitcoin futures are served on the Kraken exchange. On this platform, futures are incredibly useful with respect to capital and require less money to open positions, unlike spot trading or margin trading which are 1:1 and (3:1 – 5:1) respectively.

Also Read: How Leverage Trading Works When You Use The Binance Cryptocurrency Exchange

In spot or margin trading, you may have to commit between 20-100% of your cryptocurrency, which can make you afraid of a big loss. But this platform offers a leverage of 50:1 and allows you to entrust only 2% of your money to the exchange.

3. Binance Exchange

Binance cryptocurrency exchange announced the official launch of its two platforms for trading cryptocurrency futures that were previously in test mode in September 2019.

Platform A, also called Binance Futures, is already being used by the code owners who have tested and voted for the site as credible and capable, but it’s also available in beta mode for users who have a referral code.

Also Read: Investing in 2020: what you need to know

The platform distributes about 200 codes daily to intending users who participate in Binance social media (Twitter, Weibo, etc) activities or by contacting support.

Platform B is now known as Binance JEX, which will make it possible to do many amazing things in futures trading. For example, it will be possible to transfer funds from the main exchange to Binance JEX.

Other crypto futures that are served on the platform are EOS/USDT and ETH/USDT contracts.

Conclusion

While several platforms are now offering futures trading to their users, these ones above clearly have the integrity and reputation that users around the world can trust.

Softbank Vision Fund: What you need to know

Venture Capitalists can make you dreams come true as a prospective entrepreneur. How different is SoftBank? Read on..

Enter SoftBank

The world of startups is full of pitfalls, but also filled with investors looking to help fund the next big thing. Over the last decade, a whole economy has been created around it – an economy that has produced many successful gadgets, but also many outright failures.

Softbank is one of the biggest players in this economy, its Vision Fund is one of the most coveted funding sources for startups.

The sheer size of the fund, valued at $100 billion, is said to be disrupting the whole venture capital industry by raising the prices on companies and investments. As such, it’s one of the big hitters these days, yet it’s difficult to understand just why it is so important.

Why is it necessary?

Startup companies, particularly in tech, often face a huge problem from the get-go: funding. It used to be, decades ago, that you could start producing whatever widget you wanted by hand, sell it locally, and slowly expand.

That won’t work today.

The global economy has shifted, and today, success in tech often requires having a wide reach and mass production. This means that any new venture needs prohibitive amounts of money to begin with, amounts of money regular people don’t really have.

Does it just give you money?

Of course not. While Vision Fund’s funds are big, it isn’t bottomless – and they aren’t a gift, either.

Vision Fund is an investment program, its core philosophy being that it’ll give entrepreneurs the money they need so they can focus on building a successful company without the financial issues they’d otherwise face.

Softbank is known for being a permissive investor, but it’s still a capitalist undertaking – which means a profit is eventually required.

Moreover, Softbank will naturally be entitled to a share of whatever profit your company makes.

You could, therefore, see this funding as a loan of sorts.

What if no profits are made?

One of the big problems of venture capitals is that many companies indeed never make a profit. This is pretty common when companies try to fix problems that aren’t there, thus failing to find a market.

The Venture Capital world is full of poorly planned, ill-conceived gadgets somebody somehow thought were the next big thing that led to millions of dollars wasted.

In theory, investors review proposals and choose those that are the most likely to succeed and help change our world.

In truth, venture capitals are often seen as a way for certain individuals to promise investors everything, deliver nothing, and live like millionaires.

Softbank’s Vision Fund, however, has a method to try and stop this.

Fighting mismanagement with clauses

As usual with venture capital contracts, if your project doesn’t take off, the investors lose their money. That’s also true of Softbank’s fund, and whatever money was spent on getting the company off the ground will be lost.

Just as well, if the company turns a profit first, then it stops doing so, the fund itself will take the hit.

That is true, however, only for the money that was actually spent on the company.

Softbank’s Vision Fund has a peculiar clause that hopes to fight against venture capital scammers, those who live like millionaires on investor money and then return nothing.

Money spent on management salaries and bonuses can be taken back if the company fails.This doesn’t only extend to the initial investment, but also earnings.

Earnings are divided between the company and Softbank, but if the company stop earning any money soon, managers are expected to pay back a part of the money they took to Softbank.

This makes keeping the company efficient a priority above all things, since results are not just encouraged but expected.

Is this really changing the landscape?

It’s still early to tell. Softbank works in a different way from other funds, since it requires entrepreneurs to have some skin in the game. They’ll fund projects, but they don’t take the full cost of a failure – meaning companies receiving funds need to plan around the idea of having to pay back a part of it.

While the logic is sound, it also means only people who can take a risk can participate – thus thinning the eligible startups and offering the services mostly to people who already have means to begin with and who can take the brunt of failure.

Still, in a world where venture capital is a thing, Softbank Vision Fund has caught many eyes and helped many companies, even when their tactics and clauses are often reviled by others.

Conclusion

The emergence of venture capitalists like SoftBank really makes the difference. With funding that can bring the entrepreneurs dream to reality, it is world heralding.

Blockchain Innovations, Affiliate Marketing, and The Changing Face of Digital Marketing

Blockchain is here, and it is changing the preset notions on how to conduct an online business. How is your business changing today? Read more..

The scalability, transparency and efficiency of the Blockchain is a huge boost for digital product marketing.

To take advantage of this edge, businesses need to look at how best the solutions currently available can give a leap to realization of organization goals, cost reduction and profitability.


There are over three billion people in the digital world who daily access their emails, websites, and search online for clues, play online games and carry out a variety of other activities.

The growing number of people with Internet access and connectivity has created a huge market for people who have one, two or more online digital products to offer to the rest of the world.


There is an online digital product for virtually every field of human endeavor, and this is an affirmation that many fast-thinking people are already cutting their slice of this new frontier.

An online digital product is not inferior to its physical alternative except that it can be accessed via a mobile phone or portable device and you can easily access it wherever there is Internet presence.


The Blockchain and Fast Moving Online Digital Product Scenarios

The following examples provide a gateway to success with an online digital product;


Digital Books and Blockchain

EBooks are probably the commonest form of digital products as a result of the early introduction of books in digital format.

Digital books are now widespread and can be accessed by such devices as the Kindle, mobile phones, and other portable devices.

The digital book can be produced by using widely known platform owners like Kindle, Lulu, and Kobo amongst others.

You can decide to ignore these platforms and self-publish through a free medium like Adobe PDF and sell digital downloads through your website or affiliate website of your preference.

The ease of payment and download access to digital books makes it an attractive option for many people with internet access.

Your digital books can become your online business as you make efforts to market and sell them through the various outlets available.

The Blockchain has an edge for publishers here as it can remove the need for middle men and help the publisher reach consumers directly. Usage of cryptocurrencies will also remove the burden of remittance difficulties.


Online Courses and Blockchain

Today’s world is a knowledge-driven marketplace with multitudes in search of one thing or the other to meet their needs.

Learning is recognized as a process that lasts throughout a lifetime and the foresight to create and locate your audience or recipients will unlock the opportunity for an online digital product business along this line.

You do not need to have an accreditation or institutional recognition for the course you can comfortably offer online.

It is only important that you have a grip on your turf and ensure that your materials are well- researched, packaged and presented.

You will be amazed at the reach of your online digital product across the globe when you use a trusted platform to market your specialty.

Known websites like Udemy, iVersity, Fedora amongst others; rake in millions in sales yearly for courses they offer.

The Blockchain can help course developers earn more if tokens are used for access and remittance for each course developed.


The Affiliate Scheme and Blockchain

Shutterstock Image


The affiliate scheme is perhaps the most proven form of an online digital product as it has survived the early years of the Internet bubble to the present day.

By the way, it is the platform for many MLM (Multi-Level Marketing) products.


You can build your affiliate scheme around a fast-moving product, service or any item that is beneficial to people and is marketable.

Last Lines

An online digital product business is the fastest and logistics-nightmare free business you can ever be involved in.

Any business with a website and a payment gateway enabled for PayPal, Credit Cards or Bitcoin, with an effective marketing plan for a beneficial product, is destined for success.

How Cryptocurrency Payments Are Reducing Transaction Costs Globally

One area that cryptocurrencies impacts the global stage is price reduction. Low transaction cost and faster payments make account settlement good to go.

Cryptonews Image

It’s not news to anyone who has been following the cryptocurrency trend that, while they have attracted lots of attention, they have also failed to penetrate our economies as well as some analysts expected they would.

Indeed, cryptocurrencies have run into several difficulties, putting them into the odd position of being household names, but not household items. That is, everyone knows what a cryptocurrency is, but most people don’t own any or know how to use them.


Yet while the cryptocurrency craze has brought few widely recognized improvements to our economy, there is one specific area where it should, as penetration grows, show a great improvement in most peoples’ lives.
That area is transaction costs.

High costs we ignore

Bank transactions are never free. Every single transaction that happens involving a bank, be it a debit/credit card purchase, a bank transfer, issuing a check, or even getting cash via an ATM, has a cost.

The allied cost can often be small enough for people not to notice or care, and in some cases the cost is paid by our counterpart, so we completely ignore their existence.


However, these costs add up. It might be a few cents here or there, but little by little, they end up making a dent on our finances – we just don’t notice. When we hear that it costs $10,000 to move $1,000,000, we assume that’s a rich people problem.

We don’t have a million dollars to move, so why should we worry if the rich are paying a lot? They have a lot, so it’s only fair.


Except that it’s not the raw numbers that matter. It’s the percentages.

Fortunes are made cent by cent

Now, let’s assume instead of the 10K example, I tell you that your bank charges about 1% per transaction. It’s little, right? What’s one dollar for every hundred you move? The bank has to make money, so it makes sense they’ll charge.


Yet it adds up. That means that if you move only a thousand dollars a month using your bank account – a small amount of money – you’re paying your bank $10 a month. Which amounts to $120 a year.


Reconsidering it yet?

Crypto to the rescue

Cryptocurrency transactions have been somewhat demonized by the media. While most claims against them aren’t false, some have been overblown or reported as inherent problems with crypto while being transient ones, results of the economy rather than poor design.


While cryptocurrency transactions can be slow – the Bitcoin and Ethereum networks both have but a fraction of the capability of Visa and Master Card – that might not be a problem for long. New blockchains are being currently developed with the aim of solving the transaction bottleneck.


As for the issue of value fluctuations – where the initial wave of worries about crypto transactions being expensive – crypto markets are stabilizing. And any cryptocurrency that enters widespread use will, by virtue of its widespread use, gain enough stability that day-to-day price changes won’t be huge.

Fairer costs at no cost

Let’s go back to the $1M example, since it’s good to illustrate just how much money you might be losing once all things add up – and let’s be clear: while you might not regularly move a million dollars, the average American moves more than a million dollars through their lifetime.


On the Bitcoin network, known for its scalability problem and slowness, you could move more than a hundred million dollars for the paltry sum of… ten cents.


That’s several orders of magnitude lower than those of a regular bank. As such, some of crypto’s early adopters have taken to performing their large-scale transactions through the blockchain, since whatever they lose from them taking longer, they more than make up on savings.


Not that they always take longer. Transactions inside a same bank are instant, but between banks – or countries – aren’t anyway.
The point is, using crypto you can go from 1% transaction fees to 0.01% fees.

Only one drawback…

While banks use percentages to calculate transaction costs, cryptocurrencies use a more lineal approach, usually tied not just to the amount of money but also to the current state of the blockchain.


This means charges move between smaller amounts, but depending on the blockchain they might have minimums to be paid. Over the Bitcoin blockchain, for example, the minimum amount for a transaction is ten cents.

This means that you might be able to move a hundred million for that much… but if you spend $5 on crypto for an ice cream, it’ll cost you that much, too.


Thanks to this, for now, cryptocurrencies remain a great option – for larger transfers. Their fees vary between ten cents and five dollars. This depends on the blockchain, the amount, and how busy the chain is at the time.


However, this should change. As the scalability problems are solved, transaction costs – and times – should halve. Eventually, we might see small charges for large transactions, and almost nonexistent ones for smaller ones, turning cryptocurrencies into the best way to save money overall.

Last Words


As for now, the writing is on the wall for many companies: Cryptocurrencies are a way to save money in transactions. Not only that, but they offer an alternative to dealing with regular banks, and can in some cases be faster than regular bank transfers.


It’s due to this that, while cryptocurrencies haven’t yet gained mass acceptation, several important parts of our society are actually dealing with them already. It’s just difficult to argue with a 99% reduction on transaction fees.