Modern Days and Stoicism

Live each day as if it were your last – Marcus Aurelius

Over the last year, I have got increasingly more interested in the Stoic philosophical school. Life throwing challenges at you and application of mindfulness on a daily basis may prove difficult. Solutions and frameworks that can better aid you in these situations have been on my search radar for quite a while. Buddhism and Mindfulness are one of those frameworks that can greatly aid you coming from the Eastern Schools of thought. In the West, Stoicism is a philosophical school that covers many of the areas of study and practice by Buddhism with its own unique practices, values and beliefs about everyday life and adversity.

Stoicism was the ancient Greek and Roman philosophy founded in the last decades of the fourth century BCE by a merchant, Zeno of Citium (modern Cyprus). Born out of adversity and challenge the unique outlook of this school of thought on resilience, moderation and mindfulness aid the learner and practitioner to overcome obstacles in their daily life. You might compare Stoicism to the slightly earlier philosophy of Buddhism in India, which was also about inner peace, or Confucianism and Taoism in China, which had some similar ideas about balance and moderation. The Stoics were a group of philosophers who first began teaching their ideas in the Hellenistic period. Original Stoics included Seneca the Younger, Epictetus, Marcus Aurelius, Chryssipus among others. Notable modern-day Stoic writers and readers of this school are Ryan Holiday, Tim Ferriss and Bill Clinton.

The Stoics had a number of core values and beliefs about how one had to carry himself through life into his/her behaviour, daily actions & thoughts. Simplicity and generosity must be demonstrated by the individual while always acting with integrity. Through self-control one has to be tolerant, curious and open to new ideas and behaviours as long as they don’t overstep the core values of the school.

The Stoics weren’t against earthly pleasures, food or intoxicating substances as long as one exercised control and moderation. Restraint of overindulging. The self-awareness and constant study of oneself and one’s actions would be crucial for developing confidence and maintaining humility through successes and failures alike. Finally, gratitude and compassion was a key to an accomplished and a happy life.

How does one practice Stoicism? There are a number of daily practices paired with the careful self-observation and compliance with the values and believes of this school of thought. Although one has to note that there is a certain flexibility to the ways one can interpret these teachings on the basis of the personal tolerance and situations one has faced. Hence this makes it a perfect framework to mould around a busy modern life.

Practising mindfulness and journalling are important parts of the daily practice. Marcus Aurelius wrote a journal addressed to himself.  To help him manage and restrain himself with a set of rules on a daily basis so that he can be the person who has become to be. Better, more just, more immune to temptation, wiser. Self-discipline, personal ethics, humility, self-actualization and strength, balance, modesty and moderation are the key factors to sobriety and level-headedness. Practising misfortune. A way of conditioning ourselves to bad times and failures during the good times of success and fortune.

It is in times of security that the spirit should be preparing itself for difficult times; while fortune is bestowing favours on it is then is the time for it to be strengthened against her rebuffs. – Seneca

The perception of good and bad for a Stoic is greatly tested as one can decide if he/she wants to take ownership or identify themselves with negative situations or emotions. In other words, you will be hurt only if you choose so. There is no good or bad. There is only perception. You control perception. Stoics propose that life is too short to complain and be unhappy about how things turn out. Logic doesn’t always make sense, but everything happens for a reason. The Chinese Farmer Story below is a great example:

When it comes down to being in self-control and not losing one’s temper. We have to remember that everything is transitory and ephemeral. Being angry, festering about things going down south or seeking refuge in alcohol or drugs is not a solution.

Alexander the Great and his mule driver both died and the same thing happened to both. – Marcus Aurelius

Memento Mori is one of the mottos of Stoicism derived from Latin meaning Remember that you are going to die. Being present and making the most out of your day no matter the circumstances is a crucial ingredient in a good life. You never know when is going to be your last day so you might as well make the most out of each one.

For every minute you are angry you lose sixty seconds of happiness.  – Ralph Waldo Emerson

Comparing yourself to others or judging and being judged is as detrimental to a person wellbeing as a physical disease. Marcus Aurelius says “So other people hurt me? That’s their problem. Their character and actions are not mines. What is done to me is ordained by nature and what I do by my own.” Again this falls on the precept of perception and the universal logic that guides the nature of things.

The world is an unpredictable place that is constantly changing and evolving. Our lives represent just a brief moment in time. So we should treat what happens to us good or bad as just passing feelings and situations. Epictetus was right when he said that “life is hard, brutal, punishing, narrow, and confining a deadly business.” Stoics believe in the goodness of things no matter how bad they were at any given time. That’s why I believe that practising modern day Stoicism can greatly enhance the quality of one’s life.

Cling tooth and nail to the following rule: not to give in to adversity, never to trust prosperity and always take full note of fortune’s habit of behaving just as she pleases, treating her as if she were actually going to do everything that is in her power. – Seneca

Bibliography:

  • Epictetus. Discourses and Selected Writings, 2008, Penguin Classics
  • Marcus Aurelius. Meditations, 2002, Random House USA Inc; New Ed edition
  • Ryan Holiday. The Obstacle is the Way, 2015, Profile Books; Main edition
  • Ralph-Waldo Emerson. Self-reliance and other Essays, 2016, CreateSpace Independent Publishing Platform
  • Seneca. Letters from a Stoic Penguin Classics; New Ed edition (26 Aug. 2004)

Crypto: My Binance Story

The world of crypto is considered by many to be the wild west of investing. The cryptocurrencies exchanges are the meeting spots where investors, traders, and speculators meet up to transact in them.  Buying and selling into cryptocurrencies from a reputable and reliable place where your assets will be secured might be hard to choose for many beginners. Choosing from more than 190 exchanges around the world in an industry that is just starting off is not an easy decision to make. In addition, every day there is a new exchange that comes up and there are a lot of factors that one needs to consider when choosing one. It is very important to spend time on researching your exchange and it features, almost as much time you should be spending on actually researching your crypto investments and trading ideas. Making sure that you have discounted for certain factors important to your trading when choosing an exchange is crucial for the security of your assets and investment/trading processes. In this article, I will quickly take you through some of the features of my favorite exchange Binance and the story of me coming about their services.

I knew about cryptos for a few years, but they never really got my attention until the end of 2017 when the Bitcoin craze was everywhere. At this time searching for exchanges and reputable brokers of cryptocurrencies was a daunting task as a lot of trust and uncertainty clouded the judgment of people who wish to get into the market. Coinbase, Poloniex, GDAX, and Kraken are all exchanges that I jumped on but quickly realized that they lacked availability of pairs to trade, high fees, or interface and functionality that doesn’t really work for me. A friend of mine referred me to Binance and assured me that they are “legit” and secure. So here I was in Binance, made by software engineers with extensive experience and protected by hackers from hackers. I moved all my cryptos from other exchanges and started familiarizing myself with the exchange and the large number of trading pairs they offer. In addition, upon registration and crypto transfers, I went through the fastest and easiest process of setting up which took less than minutes to open an account and transfer everything in. Aided by the seamless interface, I could quickly find my way through the different panels and tabs to deposit and allocate the cryptos. After 1 month in the exchange with a clear idea of which pairs I want to transact in and the availability of indicators to apply on my trading, I was up more than 80% considering the market was down trending.

One of the first things that really grabbed me about Binance compared to other exchanges is the simple, sleek and professional interface of the platform.

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Binance Desktop Platform Trading Screen Functionality

The interface and technical indicators functionality is top of the line with beautiful graphics and sets of indicators to apply on your charts. The picture above demonstrates the main trading window pane of the trading platform. On the lefthand side, you have trading pairs by the market while on the right-hand side you have your order book and trade history. In the center, you have candlestick charts with a range of indicators to add on such as Volume, Moving Averages, Bollinger Bands, Stochastics, etc.

Design and functionality are not only one of its strengths. Customer service is another area where Binance stays ahead of the competition. Always striving to answer all customer queries as soon as possible. The team is responsive and capable of offering professional aid to traders in need. Support tickets are submitted via an online form featured on the website, and responses are made via email. Non-English speakers will be happy to know that Binance offers multiple-language support in Chinese, English, Korean and Japanese.

 

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Binance BTC trading pairs

 

One of the main factors for me to move to Binance was the availability of trading pairs and security. The exchange currently offers trading pairs in BTC, BNB, ETH, and USDT. On the picture above we can see the interface of the BTC market pairs with their adjacent indicators. The exchange is constantly adding new pairs which positively affects both the cryptos added and the exchange. A recent example is Augur (REP), Golem (GNT), Loom (LOOM).  With more than 200 pairs to choose from and constantly growing you get the option to keep your cryptos in one safe exchange with a multitude of products.

The second factor – security – has also been handled reassuringly well so far. The issue of trust and security comes at the front lines as numerous exchanges are getting hacked, and crypto assets being stolen from them on a monthly basis. There are the other ones that decide to run off with their user’s assets and disappear. Exchanges such as Mt Gox, Bitstamp, Bitfinex have already been hacked before incurring different amounts of damage for its users. Binance offers two-factor authentication (2FA) linked with your phone and authenticator which should be the norm for this industry. The email encryption and verification automatically send you emails everytime you log in to the platform, notifying you about the access with its timestamp. Personally, I also use only the desktop platform for added security as you can never fully trust your browser. Reputation is a major factor for exchanges. The fact that your exchange is getting on the news for all the good reasons and have proper physical offices around the world really adds up to the trust between the user and the exchange.

Bonus factor of great importance is liquidity. Liquidity is a major key to this investment class, as volatility is rife and having the option to exit your positions as quickly as possible is crucial. Binance provides exactly this liquidity between a range of pairs allowing crypto traders and investors to exit in and out of positions saving them slippage and being closed off in big losing positions. The volume of transactions that go through Binance on a daily basis is up at the top lists of exchanges by volume.

 

 

It is quick and easy to open an account and immediately transfer your digital assets and start trading right away in second. Flat fees of 0.1% trading fee and the fees for deposit are free. Variable withdrawal fees as per cryptocurrency.

Finally, Binance is undoubtedly one of the best crypto exchanges out there offering great service, fees, and trading functionality. I am happy to recommend it to both beginners and advanced crypto investors and traders. A place with a sleek design, professional structure and a wide variety of products to buy and sell. In addition, I can’t wait for the listing of cryptos to the exchange such as the recent Pundi X (NPXS), Odyssey (OCN), Switcheo (SWH), Matrix (MAN). An app for Apple iPhones is also very important as only android mobile app is currently offered. Ultimately, margin trading on major pairs and a short function would appease many speculators out there.

 

 

 

Thank you Binance for the great work so far and hope you keep surprising us, the your customers with new features and successes.

How Algorithmic Trading really works?

In my final year of the part-time MSc Financial Engineering program that is offered by the World Quant University, things are coming together and the full picture of algorithmic trading and alpha generation starts to make sense. The subjects are super challenging relying heavily on computer programming & algorithm, financial markets knowledge, statistics, and econometrics. Even though I had very limited knowledge previous to starting advanced education on these subjects, now I feel much more confident and have a roadmap on a real-world implementation where only hard work and continues practice is required for concrete results.

This is a short article seeking to simply explain what algorithmic trading is, strategies that can be implemented through the use of algorithms and some of the tools and skills that one needs in order to accomplish this trading process.


What is Algorithmic Trading?

In simple terms, algorithmic trading is using computer programs that act upon certain criteria specified by the user and execute trades in the financial markets through a broker or an exchange. These programs are represented by algorithms (mathematical representation of a sequence of instructions set on solving a problem coded on a computer). The combination of financial markets and trading knowledge paired with programming skills and computational power can result in the creation of machines that take advantage of market inefficiencies.

Algorithmic Trading is about finding market inefficiencies and taking advantage of them as well as any market anomalies that may be turned profitable. Market Anomalies or market inefficiencies in the financial markets are deviations from the efficient market hypothesis in terms of prices and rates of return.

The Efficient Market Hypothesis (EMH) is a theory in financial economics that states that asset prices fully reflect all available information. What this basically means is that a trader/investor cannot “beat the market” consistently on a risk-adjusted basis as prices already reflect any new information. This hypothesis is central to finding any assets that do not comply with it and are inefficient.

The Random Walk theory is also embedded in the Efficient markets. The Random Walk theory suggests that stock price changes have the same distribution and are independent of each other hence past movements or trends cannot be used for future prediction. When talking about Algorithmic trading we have to always account for these hypotheses as anything out of their scope would be a potential opportunity or trading idea.

Efficient assets can’t be traded due to unpredictable prices. Inefficient assets can be traded due to predictable prices. Inefficient Markets – turbulent economies and large volatility and uncertainty in the market present us with the anomalies/opportunities we need to implement different trading strategies. These anomalies can relate to fundamental, technical or calendar events.

So Market anomalies are the events and trading ideas looked upon as a problem that we wish to solve through the use of our algorithms. Solving these problems on the basis of the criteria we are looking at would result in successful trades returning positive returns. Once you have created your algorithm exploring a trading idea on the basis of market anomaly you can backtest it on the underlying financial data and see if it actually works. On a cautionary note, even though the algorithm at hand might perform perfectly on a backtest, in reality, it might be a completely different story as there are many other factors influencing it such as transaction and brokerage cost, order types, slippage, etc.

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Algorithmic Trading Strategies

There are a number of ways you can trade with algorithmic strategies that bank on a particular aspect of the financial securities’ inefficiency. These strategies buy into to different aspects of the price movements of securities. Below is one of the most popular main categories of strategies explained briefly:

  • Momentum Strategies – With momentum strategies we are simplifying following the trend of the price action. Buying into the strength and along the movement of the security and selling into the weakness or the fall movement. These strategies benefit from market sentiment and big directional market moves. Through the use of moving averages crossovers and convergence as well as support and resistance price breakouts strategies can be implemented.
  • Mean-Reversion Strategies – They are banking on the strength and weaknesses of the markets on both ends of the investment spectrum. Mean-reversion strategies rely on the price of the security coming back to its true value – buying into weaknesses that are going to adjust and selling into strengths that have been overly increased. Technical indicators such as Bollinger Bands, Relative Strength Index, and Channel indexing can be implemented into trading strategies for this particular market inefficiency.
  • Frequency Strategies – when speaking about Algorithmic Trading, one can always relate to HFT or High-Frequency Trading which is a sub-category that is characterized by very short holding periods, low latency response and high trading volumes. Strategies of varying frequency from Low, High to Ultra can have holding periods of milliseconds though require very advanced market knowledge, market structure, and trading infrastructure.

Skills and Tools

In this final paragraph of the article, we are going to look at some of the main tools and skills one needs to successfully implement algorithmic trading strategies:

  • Technical Skills:
    • Programming – research, data mining, analysis, simulation, trading idea implementation, machine learning, numerical optimization, big data analysis with Python, R or C++.
    • Finance – deep understanding of financial markets, market structure, products, financial theories, modeling and trading strategies.
    • Quantitative Analysis/Statistics – knowledge of statistics, econometrics, quantitative methods.
    • Risk Management – risk identification, evaluation, and management frameworks.
  • Soft Skills:
    • Adaptability and ability to work long hours under stress
    • Opportunistic
    • Comfortable with failure
    • Innovative
  • Data Sources – there are many free and paid data sources that you will need in your financial analysis. For example:
  • Research Platforms – once you have the data for your trading strategy you will need to backtest it to see if it actually works as expected before you plug it in a brokerage account:
  • Brokers – there are also many different brokers to choose from whichever your geographical location might be. Some of the best ones are:
    • Interactive Brokers – are a good option for implementing algorithmic trading strategies on the retail level. Great API, low fees, and no hidden fees.
    • ThinkorSwim by TD Ameritrade – also a good option with great functionality though the fees are higher.

Algorithmic trading gives computers the ability to make buy and sell trades based on sets of rules provided by the trader. It is an area of quantitative finance and trading that is very complex and interesting at the same time. Ultimately, algorithmic trading is a very complex subject matter and seeking further education to excel in this area is crucial. The MFE degree offered by the World Quant University is one which gives you the set of tools required for successful implementation and uses in this field. It is one that I can personally vouch.

The simple what, where and when of investing?

People have this general misconception that investing is super complicated. Trading stocks, buying commodities, currency FX exchange may sound like a little bit over your head. In this article, I would like to try to dissolve this misconception by explaining it step-by-step through this simple three short questions what, where and when.

WHAT

First of all, investing is putting your money into assets which can be financial such as stocks, bonds, commodities, options, etc. or physical like property. By putting your money into these assets you expect them to grow exponentially at a certain rate – the interest rate or rate of return. There is a trade-off between you spending the money now to buy yourself something nice and letting your money grow and spend them in the future for something bigger. Many times you hear about investing you will also hear trading alongside it. Both notions can be considered the exact same activity with one main difference, time. Investing would be considered for a holding period of more than 6 months of your assets before you sell them. Trading, on the other hand, would be with a holding period of fewer than 3 months before you sell your assets. The period between 6-3 months, that’s the grey area, though everything boils down to basically buy/sell at different points in time. The holding time period reflects your risk profile as well as your trading style. Below is a table with example assets you can invest/trade in:

Shares Bonds Commodities Property Cash
US Equities Treasury Bonds Metals Commercial Dollars
EU Equities Corporate Bonds Energy Residential Pounds
Small Caps Foreign Bonds Livestock Land Euro
Penny Stocks Municipal Agricultural Industrial Yen

WHERE

Now you know what is investing and what you can invest in. The second question that comes to mind is where do you actually go buy these assets? Property and any other real estate are usually bought through an agent or an online marketplace. Transactions are also done person-to-person where deals still need to be sealed legally. In terms of financial assets, there are traded through brokers. These brokers differentiate in terms of what assets they offer, their fees and prices, the platforms and customer service they provide. Many of the big banks have their own in-house brokerage service while there also large international brokerage corporations. In this digital age has never been easier to acquire financial assets. Through online brokers, the only thing you need to buy stocks, commodities, etc. is an account, your ID and a credit card.

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WHEN

Investing is all about information. Knowing when to enter a trade/investment and when to exit. The main source of income coming out from the investing world is the profit from your investment. In other words the difference between the price of buying an asset and the price of selling an asset. There is also the income from rent in property, coupon payments in bonds or dividends in stocks, though these are only a fraction compared to capital appreciation. Information is the main driving force which can be can be analyzed under fundamental/qualitative, quantitative or technical indicators in the decision-making process. Trading ideas should come from your observations of the markets and the different analyses should be used to support your idea and convert it into an investment/trade. You get ideas from observing the world economy and news seeking factors and events that affect the interconnected assets.

  • Fundamental Indicators or Qualitative indicators. Fundamental analysis is the process of looking at a business at the basic or fundamental financial level. This type of analysis examines key ratios of a business to determine its financial health and gives you an idea whether the business is undervalued or overvalued. Finding out if the asset is overpriced and underpriced compared to what the market values it at can give you an edge and present you with a great opportunity to invest. Key indicators that are used in this analysis are earnings or profits and sales.
  • Quantitative analysis is the process of performing mathematical and statistical analysis of the price of the financial assets to find out where the price is going to go in the future. Basically investing based on science rather than a human judgement on certain criteria and facts. In quantitative analysis tools such as regressions,  Monte Carlo simulations, and other financial models help arrive at conclusions on the investment process.
  • Technical Indicators would deal with Technical Analysis and Charting. The study of charts and the price action of the assets. In the technical analysis process, it is assumed that the historical market price data reflects all the relevant information about the asset. Through the charting of support and resistance levels and the identification of patterns, conclusions can be made on whether the price of an asset is going.

 

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Example chart of Apple Stock from TradingView

 

Don’t Confuse Technical analysis with a tool to generate trading ideas. A combination of these analyses should be used in the decision-making process. These types of analyses can be applied to a different extent to the different asset classes where the different classes have different specific indicators that affect them more than others. The usual workflow should be your idea first then looking at fundamentals with your qualitative analysis, confirm your idea with technicals and/or quantitative analysis. On that basis build your entry/exit and risk management strategy.

You should avoid investing/trading for income. You should rather seek to exponentially grow your account through your lifetime. Fixed salaried jobs, freelancing, writing, businesses, etc. should be the one providing you with income to cover your expenses and pay your bills. At the end of the day, everything boils down to entering a trade/investment and getting out/exiting. The difference between the price you bought it and the price you sold it is your profit/capital gain. In addition, investments in stocks have dividends which pay out at regular/irregular intervals or bonds which pay on fixed dates.

In this article we have quickly learned what investing is, where can you invest and when. Money is just money. A tool, a means to an end and investing is the ultimate method to make your money grow. Money should be respected and you shouldn’t get consumed by it. Keep in mind that you cannot force the market to trade its products at particular time frames. Rather the market gives you clues and opportunities to transact in securities depending on the time period.

Don’t risk what you cannot afford to lose.

 

Quick Guide on Cryptocurrencies and Blockchain

Cryptocurrencies and the Blockchain Technology have taken the world by storm in the last 6 months. Unprecedented market gains and returns on the side of the cryptocurrencies market have stunned investors. The blockchain technology behind many of them has given hope of changing the precept of the financial system and the way society interacts. Both of these notions sound like an exciting new technological development and means of payment between people and everyone should be looking forward to what they have to offer in the near future. In this article, we are going to look at the basics of Blockchain, Cryptocurrencies, ICOs and what drives their prices and development.

Blockchain

Let’s start with digging deeper into the blockchain as this is the foundation technology of cryptocurrencies. The blockchain is a public database of all transactions that ever happened on a peer-to-peer network.This database is constructed of blocks that are cryptographically linked together forming a chain, therefore the name “blockchain”. Everybody in the blockchain network has a copy of the transactions and accounts in each block from the chain which prevents any other parties from altering information within the blocks. This is protected by a cryptographic layer or in other words hardcore mathematics that can’t be broken.

Cryptocurrencies

Cryptocurrencies are a natural progression of the means of payments between people based on the development of new technology and the blockchain. Throughout the year’s people have used many different means of paying each other and the items we used to give value to in order to transact with would be money, coins, cattle, silk, credit cards, etc. The onset of the digital age and the development of blockchain marks the end of physical money and cryptocurrencies would be the next stepping stone of the payment and transactional system. By definition cryptocurrencies are defined as:

A cryptocurrency (also called a crypto-asset or crypto money) is a medium of exchange like government-issued currencies, that uses cryptography to secure the exchange of digital information and control the creation of new units.

Bitcoin

Bitcoin is the first decentralized cryptocurrency. Decentralized means that no single person controls and regulates the supply and prices of this cryptocurrency. This means that it uses a peer-to-peer technology which operates with no central authority or banks. Bitcoin is decentralised which means that no single entity controls the money flow and supply. The network is also trustless which means that no need to trust any other peers that participate. Bitcoin is Internet money, anyone in the world can open an account and start sending and receiving funds. The only thing you need in order to open an account is a computer or mobile phone and an Internet connection. The Bitcoin network is operating 24/7, enabling everyone to send and receive funds all the time. Although bitcoin is not only one type of digital currency but a brand that is being recognized more and more as the representation of the whole asset class. There is a limit of 21,000,000 total Bitcoins that can be mined and circulated among the peers of the network.

Ethereum and Altcoins

Ethereum is an open software platform based on blockchain technology that enables developers to build and deploy decentralized applications. The Ethereum platform is built upon the Bitcoin Blockchain infrastructure adding additional functionality or sometimes referred to as Blockchain 2.0. The ability to write smart contracts on the Ethereum network gives its’ peers the power to decentralised any application, not only payments such as on the Bitcoin blockchain. While Ethereum is the second most widely used blockchain platform there are dozens of other once with modified functionality and applications called altcoins. These altcoins are usually derived from the technicalities of Bitcoin or Ethereum. Some of the most notable are Ripple, LiteCoin, Neo, Monero, etc.

ICOs

ICOs or Initial Coin Offerings have reached astronomical hype around cryptocurrencies and many investors are lured in to invest in these public offers to raise capital. ICOs are similar to IPOs (Initial Public Offerings). An unregulated means by which funds are raised for a new cryptocurrency venture or any other start-up idea, be it good, bad or even ridiculous. An Initial Coin Offering (ICO) is used by startups to bypass the rigorous and regulated intermediation capital-raising process required by venture capitalists or banks. A website you can refer to recent and upcoming ICOs is icoalert. No matter how good an ICO looks or sounds you should always do your own research and due diligence.

How do you keep on top of all this new information and technological developments that come out on a daily if not intra-daily frequency? There are a number of news providers that cover these crypto markets the same way FT and Reuters cover the traditional Financial markets. Below is a short list of some of the most popular and trustworthy providers:

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Exchanges & Wallets

Once we have some idea of what blockchain and cryptocurrencies are and where we can learn about them on a daily basis, the question of how do we handle and interact with each other with this currencies comes up. The cryptocurrencies are kept in wallets which can be digital or physical. Although, what really means is keeping your cryptocurrencies is simply keeping your keys which are lines of text and numbers. These keys are used to unlock the value of the cryptocurrencies you possess that is being kept on the blockchain network. Everyone can see the money, although only the key holders can access them. The physical wallets can be a sheet of paper with your key on it or high tech cryptographically secured USB sticks such as Trezor or Nano Ledger S. Digitally, you can store your cryptos on cryptographically secured software applications be it on the cloud or on your desktop or server. Applications such as Jaxx and Exodus.

Trading cryptocurrencies between other people can be done through exchanges or OTC directly exchanging keys between peers. Below is a list of some of the most popular and safe crypto exchanges:

Education

Now, you have the tools and knowledge to use and trade cryptocurrencies between one another. Although before you head off to start making the big money, make sure you invest more of your time in education and further research on cryptos from podcasts and following telegram groups and Twitter accounts:

Podcasts:

Telegram Groups:  @whaleclub.io    @whalepoolbtc    @badcryptoeducation    @crypto   @thecoinfarm    @trollbox  @UKcrypto

In addition to keeping on top of Twitter Accounts to Follow:

https://twitter.com/BlockchainAge

https://twitter.com/DerinCag/

Investing and Trading

Finally, I would like to put forward a few investing and trading strategies you can implement with particular crypto pairs or ICOs:

  • Momentum Long Trend Following – the trend is your friend, research and find crypto to invest in the long-term. Don’t get sidetracked by the news and media.
  • Short News-based Corrections – On the opposite side, constantly monitor Twitter, telegram, and the news providers for short-term corrections based on the information.
  • Exchanges Arbitrage Opportunities – monitor for price differences between currency pairs on the different exchanges and take advantage of it.
  • ICO pump and dumps – similar to penny stock pump and dumps finding ICOs before they get listed on exchanges and explode to trade long/short speculative bursts of volatility.
  • Volume Day Trading – OBV(On Balance Volume). Trading on the basis of massive amounts of volume that direct particular movements of the cryptos markets.

Anything could happen in the crypto market and no one is saved from wild volatile swings at the early stage of creation of this asset class. None of the information above is to be considered as an investment or trading advice rather than my personal research and observations to help in your journey to the world of crypto. The blockchain technology behind bitcoin and other cryptocurrencies could be perceived as the equivalent of the Internet in the 90s as this may prove to have such an impact on society. Position yourself so that you don’t miss all of the fun and the excitement of the technological developments of our generation.