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WTO Trading Forecasts Underscore the Need for Reliable Trading Signals

WTO Trading Forecasts Underscore the Need to Have Reliable Trading Signals

The WTO reported that after the surge of 2nd and 3rd waves of COVID-19 in Europe, growth in global merchandise trade is likely to slow down in the 4th quarter. Now more than ever, traditional forex and cryptocurrency traders are finding the need to seek for reliable trading signals to improve the results of their trading strategies. While there are different ways to go about it, the most convenient and fastest method is to use the services of entities providing trading signals as products and services.

Brief Overview of WTO’s Good Trade Barometer

According to the World Trade Organization (WTO), it has become apparent that when economies briefly reopened and resumed with global trading in the second and third quarters, the pent-up demands resulting from the first global lockdown have been met with adequate inventory stocking. Based on the WTO’s Good Trade Barometer for November, other components indicated mixed readings, to which a potential resurgence of the pandemic will have a considerable impact on how trading will carry on in the months ahead.

As it is now the case, the slow exchange of products in the international markets will likewise affect forex trading.

What is the Relationship between World Trade and Forex Trading

Every country trades with other countries, it’s just that nations trade more than others. That being the case, trading behaviors can affect how the value by which foreign currencies are purchased in the forex market. In layman’s term, if a country sold more during the day, it follows that the purchasing countries will also have to exchange their domestic currency into the currency acceptable as payment to the selling nation.

Now to illustrate by way of a hypothetical example, let’s say the U.S. imported products from another country like Canada, paying means a corresponding amount of U.S. dollars will be used to purchase an equivalent amount in Canadian dollars as payment for the Canadian goods. If on the other hand, Canada didn’t buy any product from the U.S. this will result to a trade deficit on the part of the U.S. There is no need for Canada to buy U.S. dollars either.

If U.S. world trade continues to experience trade deficits not only from Canadian trades but also from other countries, and for a prolonged period, the purchasing power of the U.S. dollar in world trade is bound to decline. Such decline is termed as inflation, which in the long run would lower the country’s exchange rate.

Mainly because the inability to sell U.S. domestic products to foreign countries will reduce the country’s trading capital, where and when trading is largely one sided . Where borrowing becomes necessary, the interest rate on such borrowings will cause the US dollar to weaken further.

Now supposing Canada continues to show a strong performance in world trading, from which it gains considerable amount of trade surplus, such developments will lead to growth in Canada’s trading capital. Moreover, if the U.S. purchases or imports goods from Canada on credit basis, the amount that Canada will collect from the U.S. will include interest payments and therefore further weaken the US dollar value against the Canadian dollar.

This hypothetical example is only an exaggeration of how global trades transpire, in order to show how trade deficits, trade surplus, inflation and interest rates and other similar factors can affect the value of different currencies.

Advice on What to Look for In Providers of Trading Signals

When looking for the most reliable trading signals provider, keep in mind that your goal is to improve your profits. Therefore it is not enough that the trading signals are based on mere word-of-mouth tips coming from the grapevine or based on personal perceptions of some market analysts.

Consider the services of signals trading firm AltSignals, which aside from providing signals derived from in-depth analysis of data, maintains special focus on providing only quality signals; as opposed to churning signals in large quantities. Moreover, altsignals services include learning modules that will enable newcomers to develop a better understanding of how trading markets behave.

As one of the best providers of trading signals, the transparency by which the company offers its services is one of the compelling factors that attracted more than 80,000 customers to sign up with AltSignals.

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Is a Cryptocurrency-Based Credit Card Feasible?

While American Express Credit Card enables cardholders to make cashless payments on purchases, it’s not a feasible financial solution in a blockchain platform. If ever a cryptocurrency-based credit payment system will be developed by American Express (AMEX), cardholders must have enough digital money in their e-wallet to pay merchants who accept bitcoin or other altcoins like Ethereum, Bitcash or Litecoin.

Both AMEX Credit Cards and cryptocurrencies are cashless methods of payment, yet the former enables acquiring or purchasing of goods or services without requiring immediate cash payment. Cryptocurrencies on the other hand, is cashless in nature, but backed by a blockchain system that confirms there is actual cash involved in every virtual transaction.

A Quick Look at How PayPal Offers Cryptocurrency Services

Even if payment processor PayPal is now offering cryptocurrency services to its customers, the services offered are restricted to buying, selling and holding of digital money within its Cryptocurrencies Hub.

While there are PayPal merchants who accept cryptocurrency as modes of payment, PayPal does not allow customers to make direct payments using digital money of whatever type. Mainly because PayPal’s blockchain partner Paxos, has to confirm the validity of every cryptocurrency transaction through a process that is entirely different from the payment processing method used by PayPal.

Credit cards like AMEX can fit into PayPal’s payment processing system as a service to customers looking to pay a PayPal merchant on credit. After all, AMEX Credit Card holders only have to confirm the validity of their AMEX card online via americanexpressconfirmcard.live in order to have the credit payment processed and approved.

How Does Cryptocurrency Payments Work in a Blockchain Platform

Cryptocurrency as a mode of payment works on the principles of a peer-to=peer payment system (P2P)., where the parties to a specific transaction have direct involvement without the need to pay fees and disclose any personal and financial information. First off, a cryptocurrency e-wallet must have sufficient balance to cover the transaction, which can be verified by way of the blockchain ledger that records all related digital currency movements.

However, the blockchain ledger uses encryptions when recording such transactions, which can take the form of a long chain of encryptions that connect a block of transactions starting from the moment the digital money first appeared in a blockchain ledger. That being the case, the recording system requires solving or determining which encryptions are related as a way of confirming the validity of the cryptocurrency used for a block of connected transactions.

The blockchain system also puts a particular set of encrypted data through a hash function, which as a test, is expected to generate one hash value. If any one attempts to change even a tiny portion of any of the original encryptions, the altered set of encrypted data will produce a completely unrecognizable hash value. Bitcoin for one uses the SHA-256, an established cryptographic hash algorithm.

Supposing a bitcoin user changed a transaction value even by 0.0001 bitcoin, the hash that will be generated by the chain of encryptions would be unrecognizable based on the SHA-256 system . In such cases, the blockchain network will not confirm a digital currency transaction as valid. .

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What Do Cryptocurrency Insurance Policies Cover?

While cryptocurrency is already growing at a rapid pace, one can find only a handful of insurers offering coverages priced and valued in digital currency. Moreover, as far as blockchain-based car insurance coverage is concerned, the application for this type of car insurance is yet to be developed.

After all, insurance policies are designed to limit the amount of liability that insurers will assume in the event of loss or damage based on agreed terms and conditions. Yet cryptocurrencies are volatile money, which in a near or far future could present a dramatic change in values that will nullify the viability of offering a crypto-valued shield against potential risks. In the same way, client expectations on the amount of coverage for their assets is not assured, since the use of blockchain technology for monetary transactions is still loosely regulated.

The primary challenge for most insurers is the difficulty of calculating the value of possible risks since there is lack of sufficient information on which to develop a model for insurance pricing and valuation.

Secondly, there is still little room for growth, as clients still need to understand how a cryptocurrency insurance protection will work in a way that will not put them at a disadvantage in the long run.

Thirdly, there have been numerous cases of cryptocurrency cyberattacks and scams that make cryptocurrency insurance a less appealing choice of protection.

Some Known Examples of Cryptocurrency Insurance Already Offered

In some European countries like Germany and Norway, the use of cryptocurrency, particularly bitcoin, is already widely accepted and at the same time regulated. As opposed to digital money in the U.S. that has yet to gain legal recognition before American consumers can fully appreciate the significance of a crypto insurance coverage. Nonetheless, the following U.S. based fintech firms have already ventured into the business of offering insurance policies for certain assets:

Bee Nest – Based in San Francisco, California, this fintech collaborated with We Trust a fiduciary company. Together, they developed a blockchain-based insurance model for homeowners. In line with the offering, Bee Nest uses a proprietary digital currency called Bee Token, which the fintech initially introduced as digital currency that can be used in booking accommodations in the San Francisco area.

Guardtime – A fintech based in Irvine, California that partnered with logistics behemoth Maersk in developing a blockchain-based marine insurance. Using what fintechs call as “Smart Contracts,” Guardtime’s cryptocurrency maritime insurance policy offers a way of managing unchanging risks as they occur in the shipping industry.

Lemonade – This insurance company based in New York City uses blockchain-based technology in combination with artificial intelligence in offering cryptocurrency insurance to homeowners and renters. The Lemonade crypto insurance model involves the collection of a monthly premium starting as low as $5 per month, to cover a fixed insurance fee, while the remaining portion is allocated for future insurance claims. Claims for a loss must be made immediately to allow for quick valuation of loss coverage.

If you have been reading this in relation to your search for a cryptocurrency car insurance, and in case you do find some, our advice is not to walk into any such offers blindly. Even when looking for a regular car insurance policy, you have to shop around and make comparisons to make sure you will be getting a reasonable deal and adequate coverage.

The good news s that you can find all pertinent information you need at https://carinsurancesnearme.com/ when in the process of evaluating your options.

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