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Coinbase Instant Buy Program May Be Fueling Bitcoin’s Meteoric Rise

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As bitcoin’s market value surges past $92 billion, a key announcement by cryptocurrency exchange Coinbase could be a driving factor behind the dramatic rally.

Coinbase Announces Instant Buy Program

Coinbase, the world’s most funded digital currency exchange, announced Thursday it is enabling U.S. investors to make instant purchases of up to $25,000 worth of bitcoin, Ethereum and Litecoin. Previously, users had to wait several days to receive their coins.

“Reducing the time to receive digital currency has been a highly requested feature and we are pleased to provide this improved experience for our customers,” David Farmer, the director of Coinbase Communications, said in a Thursday blog.

The decision to go instant was also announced by Coinbase co-founder and CEO Brian Armstrong via Twitter.

The San Francisco-based Coinbase was founded in 2012, and has more than 11 million users. It is widely considered to be one of the most accessible trading platforms enabling widespread access to the digital currency market.

Bitcoin prices peaked above $5,800 Friday, with prices fluctuating significantly before the Coinbase rollout.

IMF’s Lagarde Comments on Cryptocurrency Revolution

The International Monetary Fund’s Christine Lagarde is closely monitoring the bitcoin market, and says the global lending institution should play a role in regulating the fin-tech industry going forward. The Managing Director of the Washington-based organization said financial institutions must carefully evaluate and understand the digital currency sphere without jumping to conclusions.

“I think we should be aware of not categorizing anything that has to do with digital currencies in those speculation, ponzi-like schemes,” she said, in reference to Jamie Dimon‘s assertion that cryptocurrency is equivalent to “fraud.”

“It’s a lot more than that as well,” she added.

Lagarde said that it was possible for the IMF to develop its own cryptocurrency at some point in the future. The protocol may operate in a similar fashion to the IMF’s Special Drawing Right (SDR), an international reserve asset.

Featured image courtesy of Shutterstock

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 649 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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TD Ameritrade Backs Regulated Cryptocurrency Exchange

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One of America’s largest brokerage firms is betting big on the continued growth of cryptocurrencies. To that end, TD Ameritrade has announced it is backing a new platform that gives retail traders the ability to access both bitcoin spot and bitcoin futures.

TD Ameritrade Enters Crypto

The U.S. brokerage firm, which controls $1.2 trillion in assets, has made a strategic investment in ErisX, a regulated crypto exchange offering access to crypto spot and futures markets. According to CNBC, which broke the news on Wednesday, the exchange will be fully regulated by the U.S. Commodity Futures Trading Commission (CFTC). However, certain product offerings are pending approval.

ErisX will be backed by Virtu Capital, which provides high-speed trading infrastructure.

In addition to bitcoin and bitcoin futures, the new platform will allow traders to purchase Ethereum, bitcoin cash and Litecoin at spot prices. The narrow selection of cryptocurrencies mirrors that of Coinbase, a San Francisco-based exchange with more than 13 million users. Although Coinbase offers one additional cryptocurrency – Ethereum Classic – and is planning to add more, it only supports spot trading and not futures.

“It’s a young product in fast moving ecosystem, and while bitcoin may not have the same demand as it did in December, there is still demand nonetheless,” JB Mackenzie, managing director, told CNBC.

“We listened to our customers – what we continued to hear was that they wanted access to trade digital currency products.”

Crypto Markets are Here to Stay

TD Ameritrade’s crypto venture is the latest in a series of efforts by traditional players to establish a foothold in the enigmatic sector. Banks, hedge funds and stock exchange operators are all pivoting toward cryptocurrencies and blockchain despite the yearlong downtrend in prices.

The latest effort by TD Ameritrade is especially important given the broker’s focus on retail traders.  Until now, it has been assumed that the next great crypto bull market will be driven by institutional capital. This belief isn’t unfounded; after all, retail interest in crypto has dwindled over the past six months as the novelty of the market wore off. But a platform like ErisX could attract an entirely different segment to cryptocurrency: experienced stock and ETF traders looking to diversify into other markets.

As CNBC noted in its report, TD Ameritrade currently has about 11 million users who collectively execute 780,000 trades per day. As ErisX is rolled out, investors should keep tabs on whether existing Ameritrade users will be provided seamless access to the new platform.

Developments like ErisX give long-term holders of cryptocurrencies more reason to be optimistic about the future. With the exception of Tom Lee and a few others, most market participants have come to terms with the idea that an imminent bull market is not in the cards. In the absence of eye-popping returns, investors can still take solace in the fact that crypto adoption is growing in all the right circles.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 649 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Coinbase Closer to SEC Registration Following Purchase of Keystone Capital

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Digital currency exchange Coinbase is “on track” to obtain federal securities registration after it acquired Keystone Capital for an undisclosed amount. For all intents and purposes, the acquisition could allow Coinbase to operate as a broker-dealer in the fast-growing market for initial coin offerings (ICOs).

 Coinbase Acquires Keystone

In a statement released late on Wednesday, Coinbase announced it had obtained a broker-deal license, an alternative trading system (ATS) and a registered investment advisor (RIA) designation through its acquisition of California-based Keystone Capital Corp. In doing so, the exchange moves one step closer to offering blockchain-based assets such as cryptocurrencies and security tokens.

The licenses are still pending regulatory approval of the Keystone sale. Once cleared, Coinbase intends to seek approval from the U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) to begin offering security tokens.

“There are now many types of blockchain-based digital assets, from cryptocurrencies to security tokens to collectibles,” wrote Asiff Hirji, Coinbase’s President and COO. “In the United States, some of these assets will be subject to SEC oversight. With this in mind, securing these licenses will bring us a step closer to our goal, which is to be the most trusted way for our customers to buy, sell, and use many different types of crypto assets.”

Quest for Institutional Capital

The acquisition of Keystone comes less than a month after Coinbase launched a suite of products targeting institutional investors. By introducing Coinbase Custody, Coinbase Markets, Coinbase Prime and The Coinbase Institutional Coverage Group, the exchange aims to unlock as much as $10 billion in institutional capital currently sitting on the sidelines.

Coinbase believes that the future of cryptocurrency will be driven by institutional capital compared with the first bull market that was largely attributed to retail traders. This is certainly consistent with the seismic shift toward blockchain technology currently underway on Wall Street and Main Street.

Although mainstream crypto adoption is still a long ways away, major institutions like Goldman Sachs have already announced they are entering the market. Several others, such as Barclays and Deutsche Borse, are still investigating consumer appetite for blockchain-based products.

Efforts to bring bitcoin under the umbrella of exchange-traded funds (EFTs) are also ongoing. On Tuesday, VanEck submitted another application to the SEC for a new bitcoin-linked ETP that is backed by actual units of the virtual currency. About a dozen or so similar applications have been rejected or withdrawn since January.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 649 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Forex and CFD Broker Recommendation: eToro

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Pros

  • Good coverage of currencies, stocks, indices, commodities, and other asset classes with low fees in the retail segment
  • Industry-leading social trading offering, CopyTrading, CopyFunds
  • Easy to use, advanced trading platforms
  • Exposure to Bitcoin, Ethereum, Ripple, Litecoin, Ethereum Classic, and Dash through CFDs
  • Stable, fully regulated company with millions of users and a strong financial position
  • Only $100/$200 minimum deposit
  • Premium account above $20,000

Cons

  • Margin rates high for long-term positions
  • Minimum 2-pip spreads
  • Stock exposure only through CFDs
  • Steep withdrawal fees
  • No US clients accepted

Recommendation:

eToro has come a long way since 2007 to become a leader in the social- and copy-trading segment, while accumulating a user base of 5 million, and establishing the reputation of a stable and trustworthy broker. The company navigated through a challenging decade and kept on innovating and expanding its reach throughout the way, and now it offers one of the strongest selections in the major asset classes among retail brokers while also offering exposure to the major cryptocurrencies.

We recommend eToro for all beginner traders, especially those looking for the opportunity to learn from established traders and invest together with them while building their own strategies as well. Those looking for the lowest fees, margin rates, and spreads could find slightly better options, like our other pick Interactive Brokers.

Availability

One of the biggest drawbacks of the company is the lack of support for US residents, but to be fair, the whole retail broker industry has issues with the strict regulation of country. Other than that, the company accepts clients from all over the world, through it’s UK and Cyprus regulated branches, and opening and funding an account is easy and swift.

Funding options are plentiful, with support for the major e-wallets, credit and debit cards, as well as wire transfers.

Trading Platforms

The eToro trading platform is easy to use, and social trading is deeply integrated, with support up to 100 traders to copy. Trading is easy in all asset classes, with the help of an advanced search function and with no slippage whatsoever, although spreads are a bit wider than with some other brokers.

A fully functional mobile trading platform is available for iPhone and Android, with good charting capabilities and a reasonably quick operation.

CopyFunds Platform

The new CopyFunds option is also available now giving a comfortable and cheap alternative to managed funds. As the company website explains:

You can invest in two types of CopyFunds: Top Trader CopyFunds which comprise the best performing and most sustainable traders on eToro, and Market CopyFunds that bundle together CFD stocks, commodities or ETFs under one chosen market strategy.

CopyFunds™ aim to help investors minimise long-term risk, promote opportunities for growth, by taking copy trading to the next level and creating diversified investments.”

Other Tools

There is a wealth of valuable information the form of webinars, e-courses, and other educational materials readily available besides the millions of active traders. The Popular Investor program is great for experienced traders who can leverage they knowledge and earn a significant amount of extra income with very little effort—other than implementing their regular strategies.

Responsible Trading

Responsible trading settings are very useful, like pre-set leverage settings (with a 1:50 default maximum), and the 20% maximum exposure/trade limit are great to manage risk and let you control your emotions in volatile markets. We strongly urge traders not to use the maximum leverage allowance (not even close) with regular strategies, especially at the first period of one’s trading career. The practice account is also a great way to get ready for ‘real” trading to get to know the order types and the effects of leverage to your portfolio, and also the peculiarities of each asset

Final Words

Some of the general problems with retail brokers aside like dangerously high leverage options, user interfaces geared towards overtrading, and notoriously high fees, eToro is among the best options for beginners to get their feet wet in trading and start. With the responsible trading initiative and the social trading functions, most of the worries can be addressed, while the fees are not sky high, although they are above than in the case some of the discount brokers out there.

Featured image from Shutterstock. This post is not sponsored.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 380 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

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