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Why Investors Should Pay Attention to TrueUSD

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Stablecoins are a topic that not everyone understands, but they are a very key part of the entire cryptocurrency financial system. As much as people want to believe Bitcoin is going to become the perfect replacement for the USD, it is not looking like it can maintain use as both a store of value and a medium of transfer. That creates a massive opportunity for another coin to jump in and complete the package.

What is TrueUSD?

Developed by the Trust Token project, TrueUSD is their first venture into asset-backed tokens and tokenization. The project was released in March 2018, TrueUSD is a stable coin that is intended to mimic the exact value of the US dollar. It is ranked 50th in terms of market capitalization, and is linked back to bank funds in escrow in order to back the value of the coin.

There are several coins competing for the same position, with Tether being the most well-known. Tether faced controversy regarding rumours of them not holding the appropriate amount of USD as collateral for the coins. This essentially makes them speculative project who are conjuring USD out of thin air, which adds volatility to the coin.

Price volatility has been the main issue with stablecoins thus far. Steem Dollars and DigixDAO have also had issues maintaining parity with their respective assets. As mentioned before, the fact that TrueUSD holds their bank funds in escrow accounts with fiduciary institutions is a major factor in ensuring sufficient backing and trustworthiness of the project.

The Appeal of Stablecoins

Stablecoins answer a key problem presented by the new financial infrastructure: what do you do when you don’t want to hold risky assets? The purpose of these coins is to “keep you there once you arrive”. Say you’ve made your “nut”, you need something to put your money in for safekeeping. You won’t get a natural rise in value using this, but you won’t lose either.

Additionally, how many of us have heard the idea that we are entering a cashless society? In terms of being resistant to censorship and having full control of your money, this would be a disaster. So if you believe in much of the mission of Bitcoin.

Why to Buy TrueUSD

TrueUSD will not make you rich anytime soon, but it will help you preserve your capital. Many exchanges for altcoins don’t allow you to hold USD in your account, and not everyone wants to have all their money tied up in volatile assets all the time.

As one would expect for a stablecoin, the TrueUSD is currently trading at $1.00. There have been fluctuations during “attacks”, but it has mostly held its value over time.

Bittrex and Binance (as well as 10+ other exchanges) offer trading of TrueUSD, so it is definitely gaining traction. So my recommendation is, rather than cashing out of your altcoin profits by selling to Bitcoin, sell to TrueUSD and take some volatility off the table.

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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Cryptocurrencies

Bitcoin SV Price Briefly Surpasses Bitcoin ABC Ahead of Hard Fork

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With the bitcoin cash hard fork fast approaching, the rival SV and ABC futures prices are fluctuating wildly as both protocols vie for hash rate. The market took a dramatic turn earlier in the week after Craig Steven Wright, the main backer of bitcoin cash SV, revealed that more than 50% of the network’s hash power backs his protocol.

Heavy Volatility

The bitcoin SV futures price briefly surpassed the competing ABC protocol on Wednesday, reaching a high of $243.79, according to CoinMarketCap.

Around the same time, bitcoin cash ABC futures dropped to a low of $239.99.

The convergence occurred at roughly the same time – 05:14 GMT. At the time of writing, bitcoin SV futures were up nearly 72% at $230. The value of bitcoin cash ABC was down 36% at $251.

Bitcoin cash (BCH) led a broad downtrend in cryptocurrency prices on Wednesday, falling 8% to $486. Trade volumes in BCH surpassed $1 billion in the last 24 hours.

Hard Fork Nears

The anticipated hard fork of bitcoin cash on Thursday is as much ideological as it is technical. Bitcoin cash ABC, the leading implementation backed by Roger Ver and Bitmain founder Jihan Wu, is said to be a full node implementation of the existing BCH protocol. As such, it will introduce significant upgrades, such as atomic swaps. Backers of bitcoin SV, on the other hand, believe their implementation is a better representation of Satoshi Nakomoto’s original vision. This means raising the block size from 32 MB to 128 MB.

While the consensus among industry is that bitcoin ABC will prevail in the so-called mining war, bitcoin SV appears to be backed by more than half of the current hash rate, according to data provider Coin Dance. Recent data show that CoinGeek, Mempool, BMG and SVP – mining pools that support SV – hold a firm majority on the network’s hash rate. This figure was as high as 77% earlier this week.

Holders of BCH can expect heavy volatility over the next 24 hours. Exchanges such as Binance and Coinbase, which have come out in support of bitcoin ABC, have announced anticipated downtime in the hours leading up to the hard fork. Several other exchanges have also announced support for the upcoming fork, including OKEx, Huobi, Upbit, Poloniex and BitForex.

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 662 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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Analysis

Crypto Update: Selloff Accelerates as Bitcoin Brakes Support

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The bearish period continued so far today in the cryptocurrency segment with several majors falling below key short-term support levels. Bitcoin violated the $6275 level, Ethereum fell back below $200, while Ripple is now under the $0.50 price level again. The smaller coins are also under clear selling pressure, and our trend model continues to overwhelmingly negative picture, especially with regards to the long-term time-frame.                

BTC/USDT, 4-Hour Chart Analysis

Bitcoin hit its lowest level in a month, dropping below the $6275 support and likely setting up a test of the $6000 level and putting the key long-term support zone near $5850 in danger as well. The total value of the market declined by more than $5 billion due to the selloff, and bulls would need a quick recovery to avoid another leg lower in the bear market following the lengthy consolidation period.

Bitcoin faces strong resistance at $6500, $6750, and $7000 while below $5850 the next major support zone is found between $5000 and $5100. Traders should still stay away from opening new positions, with our trend model still being on a short-term sell signal.

XRP/USDT, 4-Hour Chart Analysis

Ripple also followed the broader market lower, and the now it’s clearly below the $0.51 level, with the recent weakness warranting a downgrade to neutral in our trend model concerning the short-term time-frame.

While the long-term outlook is still neutral, given the segment-wide trends, traders and investors should remain cautious with new positions even in the case of a renewed buy signal in the coming period. Support below $0.51 is still found between $0.42 and $0.46, while further resistance is ahead near $0.54 and $0.57.

Litecoin Nears Bear Market Low as Ethereum Tests $200 Again

ETH/USD, 4-Hour Chart Analysis

Ethereum dropped below the key $200 support/resistance level again after last week’s failed rally attempt, and now the coin is once again on sell signals on both time-frames in our trend model. While the second largest coin is well above its bear market low, which is found near $170, but given the strong bearish long-term trend, odds continue to favor a test of that and possibly the $160 support as well.

With that in mind, traders and investors should still stay away from the coin ETH, with strong resistance zones ahead near $235 and $260, and with further support found at $180

LTC/USD, 4-Hour Chart Analysis

Litecoin is still among the weakest top coins and it’s getting closer and closer to the bear market low near $47, with a breakdown being very likely in the coming weeks. The $44 price level is the next main support, while in the case of a recovery above $51, the next strong resistance zone is found near $56, with another zone above that at $54.

EOS/USD, 4-Hour Chart Analysis

EOS fell below the key $5.35 support/resistance level amid the broad selloff today, and now it’s on a short-term sell signal again, with the long-term trend clearly being negative. Now, a test of the $5 level seems likely in the coming days, and a break below that could set up a move towards the strong support zone near $4.50.

That said, the consolidation period could still continue, and the coin might still avoid a new bear market low, which could point to an ongoing long-term bottoming process.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

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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4.7 stars on average, based on 393 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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Altcoins

Monero Price Analysis: XMR/USD Bulls Eyeing Explosive Move Out of Current Range Block

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  • XMR/USD is moving within a range block, having been stuck within for the past 5 weeks, subject to a breakout.
  • Buying pressure would likely be triggered above $115 and heavy sellers below $100. 

XMR/USD has been trading steadily for going on five weeks now, moving within a $15 range. The price has produced a bottom at the psychological $100 level. The top observed at $115. Therehas been a lack of excessive volatility observed in either direction, for the time being. This price behaviour is coming despite the breakout of a key supporting trend line. It had been providing comfort initially since mid-August, until the breach and retest between 7-11 October.

Monero Related News Flow

Noriel Roubini, also known as Dr Doom, recently further spread FUD within the market. This week, the economist via Twitter, was speaking on anonymity and how the FEDs are coming for Monero. “So much for privacy, anonymity & censorship resistance: there is NO anonymity in crypto. Law enforcement authorities prefer transactions on crypto because it is easier to trace transactions & who is behind them than in banks.  Wake up crypto zealots. & Feds will crack Monero too.”

This isn’t the first time the economist has expressed his strong dissatisfaction for the cryptocurrency market in general. Last month, he was speaking at a hearing to the U.S. Senate Committee on Banking. During this him testifying, he noted, “Crypto is the mother or father of all scams and bubbles.” He was very much doing his best to try and sound the alarms to the committee on the market in general.

Technical Review – XMR/USD

XMR/USD daily chart

As earlier mentioned, a range block has been formed within the past five weeks of trading. Given this current form, a breakout would be expected to be imminent. Looking via the daily chart view, for now it remains unclear, in terms of next direction. The move will likely be chunky, it is just as matter of where. What can be noted is that the current bottom of the range is observed at $100, any break lower here, would likely be a huge incentive for sellers.

Should a breach occur at the psychological $100 mark, a very forceful push lower would likely be seen. The next major area of support is observed down at $85-75 range, where a demand zone is sitting. This last came into action on 14th August, after heavy selling pressure hit XMR/USD from the back end of July. The price had dropped a whopping 48%, over that period, falling from around $149 down to $76 territory.

Looking to the upside, buyers would likely apply heavy pressure should a breakout be seen from the upper part of the mentioned range. This would be a breach of $115, opening the door for a retest of the breached ascending trend line. An initial target would be seen at $140, then further north, $145-150 range. This area is a known supply zone, XMR/USD has not been convincingly above here since June.

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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4.5 stars on average, based on 49 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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