Pavlína Pátková

22 May, 2023

Cryptocurrency and Stock Market Convergence: Implications, Challenges, and Opportunities

in Cryptocurrency

In recent years, cryptocurrency and traditional stock markets have begun to intersect, creating new opportunities and challenges for investors. This convergence presents a dynamic landscape where digital currencies, such as Bitcoin and others, gain recognition as investment assets alongside traditional stocks. Understanding the implications of this convergence is essential for investors looking to navigate these exciting yet complex markets. You need to use tools like stockwire.com.

Cryptocurrencies as an Investment Asset

Cryptocurrencies have emerged as a new investment class, offering potential returns and diversification benefits. For example, the most well-known cryptocurrency, Bitcoin, has grown significantly over the years, reaching a market valuation of more than $1 trillion. This growth has attracted institutional investors, who recognize the potential for long-term value.

According to a Fidelity Digital Assets poll, cryptocurrencies appeal to 70% of institutional investors due to their poor connection to other asset classes. This feature allows investors to hedge against traditional market risks and potentially enhance portfolio diversification.

Cryptocurrency Exchanges and Stock Market Integration

Platforms and initiatives are emerging to bridge the gap between these two worlds to facilitate the convergence of cryptocurrency and stock markets. For instance, some cryptocurrency exchanges now offer tokenized versions of traditional stocks, allowing investors to trade cryptocurrencies and stocks on a single platform. This integration provided convenience and expanded investment opportunities.

One notable example is the introduction of North America’s first cryptocurrency exchange-traded fund (ETF). This ETF exposes investors to Bitcoin and traditional stocks, providing a diversified investment vehicle.

Regulatory Challenges and Considerations

The convergence of cryptocurrency and stock markets brings forth regulatory challenges. Cryptocurrencies operate in a decentralized and often unregulated space, while stock markets are subject to strict regulations. Harmonizing regulations between these two domains is crucial to ensure investor protection, market integrity, and fair competition.

Regulators are actively working to establish regulatory frameworks for cryptocurrencies, including initial coin offerings (ICOs) and cryptocurrency exchanges. Striking the right balance between innovation and investor safety is essential to foster healthy growth in these markets.

Impact on Market Dynamics and Investor Behavior

As cryptocurrencies enter the traditional stock market ecosystem, their impact on market dynamics and investor behavior becomes noteworthy. Cryptocurrencies are infamous for their volatility, which can alter emotions and trading strategies.

The presence of cryptocurrencies can introduce liquidity and potentially enhance market efficiency. However, investors must understand the risks associated with increased volatility and make informed investment decisions accordingly.

Technological Innovations and Synergies

The convergence of cryptocurrency and stock markets also brings technological innovations and synergies. Blockchain technology, the underlying technology behind cryptocurrencies, offers various applications in traditional stock market operations.

Stock market processes such as settlement, clearing, and record-keeping can benefit from blockchain technology in terms of efficiency and transparency. Its decentralized nature can reduce counterparty risks and streamline operations.

The convergence of cryptocurrency and traditional stock markets offers both opportunities and challenges for investors. Cryptocurrencies provide a new investment avenue, offering potential returns and diversification benefits. Integrating cryptocurrency exchanges and stock markets expand investment options, while regulatory efforts aim to ensure investor protection.

Understanding this convergence’s implications, challenges, and opportunities is crucial for investors. It is essential to stay informed, conduct thorough research, and consider risk management strategies when navigating these dynamic markets. By doing so, investors can decide better and benefit from the exciting potential of cryptocurrency and traditional stock market convergence.

26 September, 2022

4 Benefits of Bitcoin Loans

by Pavlína Pátková

in Cryptocurrency

Bitcoin is a highly sought-after form of investment today. Learn about the benefits of Bitcoin loans.

Bitcoin is increasingly becoming a popular means for businesses and business people to raise capital. Thanks to the numerous crypto lending platforms available today, accessing Bitcoin loans has never been easier. Just like how Net 30 vendors like NAMYNOT capitalize on credit lending, Bitcoin loans are an excellent way for investors to earn interest on their holdings without selling them. They also allow borrowers to quickly access the increasingly scarce asset. So what are the benefits of Bitcoin loans? Should You Take Out a Bitcoin Loan?

The following article discusses the main benefits of Bitcoin loans for borrowers and investors.

Easy accessibility

Taking out a traditional loan usually involves a variety of procedures and paperwork. Sometimes people go through all the procedures and still don’t get the financial support they need, mainly because of the institutional bureaucracy. Traditional systems have always marginalized the financially underprivileged, making access to credit quite frustrating.

Access to Bitcoin loans is a straightforward process that doesn’t require paperwork. On crypto lending platforms, you don’t have to fill out as many forms and submit tons of documents to get a Bitcoin loan. In addition, you do not have to prove that you are working and do not have to provide the service provider with bank statements.

Crypto borrowers also don’t have to open bank accounts to get Bitcoin loans. No third parties are involved in the transactions as in the traditional systems. In addition, there are several Bitcoin lending platforms that greatly facilitate access to Bitcoin loans for businesses and individuals worldwide.

Rapid loan approval

With traditional systems, it would take several days, weeks, or even months for your loan application to be approved. This is mainly due to the numerous parties involved and the extensive procedures that loan applicants have to go through. Bitcoin loans are usually approved within 24 hours, which is more convenient for borrowers. This facilitates the free flow of capital for those who desperately need it.

ALSO READ: How Cryptocurrency and Forex Trading Differ?

Relatively low fees

Bitcoin transactions have a reputation for charging lower fees than traditional means of payment such as bank transfers. This also applies to loans. Most crypto lending platforms have fixed interest rates that protect borrowers from price fluctuations. Conventional loans usually put borrowers in a difficult financial position as interest rates are constantly rising. Sometimes they end up paying higher fees than expected.

Bitcoin is accepted worldwide as a means of payment and investment object. This means that borrowers do not have to convert the borrowed funds into local currencies to carry out transactions, which saves them the fees for currency conversion. Crypto lending platforms like bitcoin usually offer tables of interest rates that you should always check before applying for a bitcoin loan.

Flexible loan terms

In traditional systems, financial institutions always have absolute power to set the conditions for lending. And these give borrowers very little or no say in their financial affairs. Bitcoin loans are the exact opposite because they give borrowers the freedom to determine the terms of lending.

The borrower decides, for example, on the currency in which he wants to repay the loan and on the repayment period. Some lenders do not even require borrowers to service the loan monthly as with traditional systems. Overall, Bitcoin loans give borrowers the desired autonomy over their long-term repayment plan.

Bitcoin loans are ideal for large crypto holdings and owners who need to borrow money without selling their assets. It allows investors to maximize the value of their virtual assets with less risk. Unlike traditional loans, Bitcoin loans are easily accessible, inexpensive, and offer flexible terms. However, you should find a reputable and reliable Bitcoin lending platform with reasonable interest rates to lend or invest in your cryptocurrency.

1 September, 2022

How Cryptocurrency and Forex Trading Differ?

by Pavlína Pátková

in Cryptocurrency

The theme of the past few months: cryptocurrencies. These digital coins such as Bitcoin, Ethereum, and Ripple are based on blockchain technology. Due to the rapid price rise, cryptocurrencies have attracted many new investors to active trading. And many who learn forex trading have started trading cryptocurrencies in addition to traditional currencies.

Anyone who studies the market on a daily basis will soon see that the two products, forex, and cryptocurrencies, behave very differently. That means that as an active trader, you also have to make other decisions. In this article, we will discuss the differences between ‘normal’ currency trading and cryptocurrency trading.

Background

All normal currencies are issued by the central bank of a country (or group of countries). Goods and services produced by that country are paid for in the local currency. If that country’s economy does well, the demand for the currency increases, and it increases in value relative to other currencies. The central bank can influence this by changing interest rates and by putting more or less money into circulation. The market responds to this with supply and demand. As a forex trader, you try to predict this and earn from it.

Cryptocurrencies do not belong to any particular country. Coins such as Bitcoin, Ethereum, and Ripple only exist on the blockchain. The blockchain is maintained decentrally and crosses national borders. You can pay with cryptocurrencies at any store or service provider that accepts them, but no one can be forced to take payment in crypto. As a result, the value (in the long term) depends on how many retailers and service providers accept a cryptocurrency.

With cryptocurrencies, there is also no central bank that determines the interest rate or the money supply. Inflation or deflation are ingrained in the cryptocurrency’s code. This differs per coin. For example, the number of bitcoins in circulation is increasing less and less quickly, until it ultimately remains the same at 21 million BTC. The number of ethers in circulation is growing faster than the number of bitcoins, which means that ETH has more inflation. Ripple has a fixed number of XRP that can never increase. Because the supply of a cryptocurrency is fixed in the computer code, the value mainly depends on the demand.

Trading based on the news

If we look around us, we have to conclude that we can hardly pay with cryptocurrencies anywhere. Two years ago, there were still small retailers and cafes that accepted payments in BTC, but the transaction costs have become too high for small payments at the end of last year. This may change with the recently introduced lightning network. Ethereum is used for all programs that run on the Ethereum blockchain, but those programs are hardly used yet. With other cryptocurrencies, you can’t do anything at all.

As a result, the demand for cryptocurrencies is almost entirely speculative. Traders buy cryptos based on the expectation that they will be used in the future. That expectation is not unjustified, because the blockchain is a promising technology. But no one knows for sure which crypto coin has the future.

What we see as a result is that the market reacts extremely to the news. For example, if a large company such as IBM or Microsoft announces that it is partnering with a cryptocurrency, the price can skyrocket 10-30% within a few days. And if a financial regulator of, for example, China says to regulate the trade in cryptos more strictly, the price can fall just as much in a short time. Often such a reaction is exaggerated, and the price corrects itself within a few days. As a trader, you can benefit from this.

ALSO READ: 3 Ways Payroll and HR Use Blockchain

Volatility

This creates a lot of volatility. A currency pair such as the EUR/USD will not quickly go up or down 10% in one day. That’s because everyone has a rough idea of how well the European and American economies are doing. That doesn’t suddenly change by 10%. But because cryptocurrency prices are purely based on future expectations, they can easily fluctuate by 10% per day or more.

A consequence of this is that you have to trade with a smaller leverage factor. For traditional currency pairs, you use leverage to increase your profits. With leverage of 50x, a price increase of 25 pips (approx. 0.25%) turns into a profit of about 12.5%. But if you trade cryptocurrencies with 10x leverage, then a drop of 10% can mean that you have lost your investment, even if the price goes up again afterward. A leverage factor of more than 2-5 is not recommended.

If you want to actively trade in cryptocurrencies, then it is recommended to first develop a feeling for the market. Even if you already have experience with forex. This is possible with a demo account. This works just like a real trading account, except you don’t have to take any risk.

Technical analysis

Because the prices of cryptocurrencies are mainly based on speculative expectations, technical analysis is more important. After all, there is no real crypto-economy with a clearly identifiable value. The value of cryptocurrencies depends on market sentiment. And technical analysis is just right for predicting market sentiment. In addition, you should take into account that not all technical indicators are suitable for cryptocurrency.

Cryptocurrencies are a new phenomenon. The first cryptocurrency, Bitcoin, is less than ten years old. Most cryptos are less than two years old. Moreover, many cryptocurrencies were worth little for a long time and only rose sharply in 2017. As a result, some technical analysis tools do not work well with cryptocurrencies.

Take, for example, support and resistance levels. For many currency pairs, the rates at which support or resistance is experienced can be determined historically. By going back in the chart, we find price levels that the price does not easily break through. Because cryptocurrencies do not have a long history, it is difficult to find support and resistance based on the historical price chart.

Or another important indicator: moving averages. An indicator such as the 200-week SMA (simple moving average) does not exist for many digital coins (because they are less than 200 weeks old). In the shorter term, we can calculate SMAs and EMAs (exponential moving average). But those averages give a distorted picture if the price has risen enormously in a short time.

The most useful indicators for cryptos are pivot points, Fibonacci levels, and Elliot waves. For example, bitcoin’s price chart often shows a rise in five waves and a fall in three waves. Course corrections are often 38%, 50%, or 62% of the peak. And if the price starts to rise again, the new top is often 62% higher than the previous peak. These levels help you to determine your price target and your stop-loss for your crypto trades.

Conclusion

Cryptocurrencies are still very young. They are not linked to a country’s economy, and there is no central bank that determines supply. Since there are still few real applications for cryptocurrency, most demand is speculative. This means that technical analysis is more important than usual. But not all technical indicators apply to crypto.

Cryptocurrencies are extremely volatile. The market often overreacts to news, allowing you to trade on the expected correction. That makes cryptocurrency particularly attractive to active investors, but there are also risks involved. Protect yourself by not trading with too much leverage. And remember: blockchain technology will experience a lot of growth in the coming years.

8 July, 2022

Similarities Investing In Crypto And Real Estate

by Pavlína Pátková

in Cryptocurrency

Investing in crypto is similar to investing in real estate, but with a few significant differences. One of these is that you can’t touch the crypto assets.

Another big difference between cryptocurrencies and real estate investments is that real estate assets are tangible and have intrinsic value.

Cryptocurrency has no intrinsic value, meaning it’s not backed by anything other than the faith of investors who believe it will grow in value over time. With cryptocurrency, you don’t get any voting rights or equity ownership like you would with stocks or shares of a company.
Real estate investments have been around for centuries, while cryptocurrency has been around for less than ten years.

Investing in the crypto market is very similar to real estate investment.
The fundamental difference between crypto and real estate investing is that one can invest in the latter without actually buying property. One can buy stocks or bonds, which make up a part of the real estate market. And both investment has risk, so before investing, particularly in real estate, make sure to check housing market predictions.

Investing in crypto and investing in real estate have similarities and notable differences.
This article will discuss the similarities and differences between the two and highlight some of the risks associated with each.
Cryptocurrency, or digital coins, have become more popular due to their decentralization and encryption technology. Cryptocurrency transactions are often faster, cheaper, and more secure than those denominated in dollars or euros. To receive these benefits, one needs to invest in a cryptocurrency wallet and buy tokens of that specific type so that they can be traded on an exchange.
Real estate investment is a long-term investment where investors hope to gain profit on their investments through property appreciation or rental income.

Investing in real estate and crypto are two similar investments for many reasons. One is that the asset classes are not correlated, meaning there is a low correlation between the two.
There are also similarities regarding liquidity; crypto and real estate can be liquidated quickly and without incurring large fees. Finally, crypto and real estate investing have historically had low correlation rates with other asset classes, making them a solid diversifier in your portfolio.

13 January, 2022

3 Ways Payroll and HR Use Blockchain

by Pavlína Pátková

in Cryptocurrency

Over the previous few years, you’ve probably heard plenty about blockchain, and the way it’s a revolutionary technology that has countless different uses. Indeed, blockchain will create a maximum amount of $3.1trillion in business value by 2030 as its potential as Gartner predicts. But what proportion have you ever heard about blockchain within the context of payroll and HR?

From that perspective, blockchain represents less of a replacement technology and more of a brand new mindset: particularly, how it can transform how payroll and HR data is stored and accessed, and the way it will be leveraged in conjunction with other technologies.

Many early adopters are already using blockchain-inspired approaches in certain areas of HR, and that they are fuelling the initial stages of what’s expected to be exponential growth in blockchain within the world. In this blog, we’ll explore three particular areas where blockchain may be applied to create payroll and HR easier, more efficient, and simpler when pursued globally.

1. Automated payments through smart contracts

A high degree of automation can strip out much of the executive burden and room for human error by introducing smart contracts to existing payroll and HR functions. These smart contracts, which sit within a blockchain, will be deployed to automatically and instantly pay someone for the work they need to be done, once certain parameters are fulfilled.

For example, these will be wont to pay contractors or freelancers who are booked for a collection amount of labor or hours. With no intervention from the payroll team, the smart contract swings into action and processes the requisite payment as soon as that has been fulfilled.

This can deliver huge efficiencies and price reductions to payroll teams, who now not must process individual payments manually. Where employees withdraw accrued earnings through a self-service platform whenever they require it, it’s also a large enabler of on-demand pay and it allows workers within the gig economy to induce obtain their work instantly.

2. Easing the joiner, mover, and leaver processes

Employees expect to own control of their data, including deciding who can access and use it.

Ceding control looks like it’d put employers in a very bind. It actually makes life easier for payroll and HR staff to keep data secure, accurate, up-to-date, and consistent by creating one immutable record of employee data within the blockchain which permitted parties can then access.

One of the areas where this has the best effect is when new hires join a corporation, existing employees move to a brand new role internally, or employees leave the business. As an example, new hires can grant their new employer access to their personal data to hurry up the onboarding and screening processes, with no need for the employer to have data entry or storage to commit time and resources. When an employee leaves a corporation, the information access is just removed, and therefore the employer doesn’t must do anything to update their own records.

ALSO READ: 4 Reasons Why Online Casinos Are Way Better With Blockchain Technology

3. International and alternative payments

Blockchain will be wont to break down many of the barriers which will make global payroll and international payments difficult or time-consuming.

For example, payments that are cross-border, including people who involve currency exchanges, may be made much quicker through blockchain compared to the BACS or wire transfer methods currently in common use. Payments will be verified through the distributed ledger in real-time, excision the middlemen like banks and clearinghouses, and allowing exchange rates to be applied in real-time so payments are always made with the very best accuracy.

Blockchain also releases the chance to explore alternative methods of paying employees. At an initial level, this might include digital wallets for workers, into which they’ll be paid instantly, and potentially then spend this money in much the identical way as they might using Apple Pay or Google Pay.

As another, borderless, and far more flexible payment method, there’s no reason why businesses couldn’t explore cryptocurrencies and take a step further. Of course, a stable coin-freed from major fluctuations would need to be used: the volatility of cryptocurrencies like Bitcoin would generate practical difficulties, and what would be extremely complex is ensuring tax and Social Security payments are still made correctly. But it might deliver flexibility in how employers make payments to a worldwide workforce and provides employees flexibility in how they access and use their earnings.

In summary

Once you are taking a better examine what blockchain must offer from a payroll and HR perspective, it becomes clear that it’s filled with potential to rework the arena. In an increasingly globalized business landscape, any efficiencies in cost, time, or human resources can have a big positive impact, additionally as supporting the higher experiences that employees are searching for. Now could be the time to begin exploring these opportunities and making payroll and HR work better for workers and employers alike.

30 November, 2021

4 Reasons Why Online Casinos Are Way Better With Blockchain Technology

by Pavlína Pátková

in Cryptocurrency

Blockchain technology could be a hot topic in countless industries and also the media. For those that are unaware of what blockchain is, it’s essentially a ledger system that maintains records of transactions through the utilization of “blocks” that are chained together supported cryptography.

The blockchain is decentralized, meaning it’s unfolded over innumerable nodes, and there’s nobody entity that controls the whole system. For the web gambling industry and business as a full, this, together with other properties of the technology, make blockchain a game-changer. The subsequent are 4 key ways in which blockchain will change the industry for the higher.

1. Improved Transparency

Blockchain technology is simply touted to be one of the foremost influential innovations of the twenty-first century. One of the explanations people believe this can be because of the transparency it offers. Each transaction that happens during a blockchain is immutable—it is forever recorded on the blockchain, and it can never be hidden.

For someone who is gambling on a web casino playing slot games (or 슬롯게임 in Hangul), once they deposit cryptocurrency, that deposit is forever stamped within the blockchain. Similarly, whenever a player earns money and transfers the worth to their chosen cryptocurrency, that transaction also will be within the blockchain permanently. As these benefits are clear to several players and casinos, several bitcoin casinos have already unfolded for play.

Players can make deposits with their crypto and transfer earnings back to their secure digital wallet on these bitcoin casinos—or other cryptocurrency casinos. Neither the player nor the casino can try and benefit from the financial ledger.

2. Heightened Security

The folks that gamble online know that online casinos are safe. However, they also know. Some websites could also be scams, and other sites may use your personal information in ways you don’t accept as true with. Similarly, a web casino might not be built with the best security measures to push back potential hackers. Thus, they might be subject to attacks from hackers looking to steal your personal and financial information.

For both online casino owners and their users, the addition of blockchain technology is good due to these security risks. Blockchain technology has inherent security measures. Every transaction on the blockchain is encrypted. And every transaction that happens on the blockchain must be validated by every node involved. Something online casinos and players want to avoid — this makes it extremely difficult for hackers to choose out transactions and manipulate them!

ALSO READ: Transition To A Cashless Economy, Cryptocurrencies

3. Greater User Anonymity

Most gamblers wish to be anonymous, especially within the case where an internet gambler is from a rustic where the practice is forbidden. While those players have workarounds to gamble online safely, they still should provide some kind of identification information additionally to either a checking account or MasterCard information. That requirement is not any longer when casinos utilize blockchain technology.

Online gamblers won’t have to undergo the method of making an account stuffed with their personal information. They don’t have to provide financial information, a physical address, or other sensitive data. Rather, with a username and their cryptocurrency wallet, and that’s it, online gamblers can create accounts. They’re going to need nothing else to create transfers to and from their wallet, gamble, and earn money.

4. Streamlined Experience

The user collecting that service wants the experience to be as easy as possible, whether online or in-person, with any service. This suggests no jumping through hoops like identification or slow processing of requests. Looking at which online casino you employ, you’ll experience some inconvenience. You’ll bear several verification steps, it should be difficult to urge your rewards sent to you, and your earnings may incur fees.

These inconveniences are non-existent with blockchain technology-based online casinos. As mentioned above, you won’t have to provide personal information, MasterCard details, or bank details to play online. Rather, you connect your cryptocurrency wallet, and you create your transfers to and from the casino therewith.

It’s verified virtually immediately when you make a transaction on the blockchain. This means you’ll have your funds available to be used instantly thereby improving your online casino experience. Similarly, after you want to withdraw your earnings, they may be wiped out in the blink of a watch by transferring on to your wallet.

The Bottom Line

There’s been a gentle increase in attention placed on blockchain and cryptocurrency. This can be the permanent reason, of course. The technology has already shown its ability to remodel industries like becoming the backbone for digital currencies, smart contracts, and more. As there has already been most progress in blockchain’s utility, it’s no surprise that the net gambling industry will be plagued by the technology. Luckily, for both gamblers and online casino owners, these effects are positive as seen by the four major effects above.