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The 10 Must-Read DeFi Trading Tips | NewsBTC

Away from the centralized hub of the current traditional financial landscape, a new financial movement, known as the Open Finance movement, is starting to boom. A movement established upon the decentralized space of blockchain and cryptocurrency. Imagine if you could lend or borrow money instantly or even obtain insurance all in a matter of minutes…

Away from the centralized hub of the current traditional financial landscape, a new financial movement, known as the Open Finance movement, is starting to boom. A movement established upon the decentralized space of blockchain and cryptocurrency. Imagine if you could lend or borrow money instantly or even obtain insurance all in a matter of minutes in a decentralized financial market.

Well, that is what decentralized finance (DeFi) is all about. The DeFi market as of September 11, 2020, has a Total Value Locked (TVL) of USD 7.94B.

Exploring DeFi and Its Applications

As mentioned earlier DeFi is based on decentralization and is made up of a series of financial services such as borrowing, trading, payments, lending, and much more. All these financial services are provided through smart contracts platforms like Ethereum, Fusion, BSC, and the blockchain network in general.

The rise of the DeFi economy can’t be swept aside any longer and Fusion is one of the key drivers of this inevitable rise. Fusion’s vision of an interoperable platform has endeared it to many DeFi projects.

Contrary to the traditional financial markets that are highly centralized, which in the end leads to various gaps in service provision, DeFi offers a decentralized global alternative that is accessible to everyone. DeFi simplifies financial services such as insurance, loans, and trading in a way that doesn’t require tons of documents, applications, and reviews. For example, a DeFi exchange platform such as Anyswap provides simplified token exchange in a way that users can easily swap one coin for another with a simple click.

The DeFi economy is accessible from various dApps built to provide users access to the Open Financial market. DeFi has several applications in many core financial areas like lending and borrowing, Staking, Decentralized exchanges (DEXs), Payment Services, and Insurance.

Lending and borrowing have always been a traditional financial hotspot, and it is no different for the DeFi economy too. Here you will find dApps like Compound Finance and MakerDAO dominating the market.

Another dominant DeFi service is the decentralized exchanges that offer decentralized trading via the utilization of smart contracts. This helps bypass third parties in the transaction chain as the smart contract provides an automatic matching system to connect the sellers with the buyers. We have DEXs platform like Bancor and Anyswap providing this service to end-users. The attractive selling point of a platform like Anyswap is the low fees, high rewards, and getting more token pairs.

Although trading on the DeFi DEXs platforms has been simplified for end-users, it still requires you to know at least the basics of DeFi trading, as it comes with its own risks and pitfalls that must be navigated properly. Here are 10 actionable DeFi trading tips that can help you navigate the DeFi economy with considerable success.

1. Do Not Go After Everything You See

Yield farming is the driving force behind the current bull market in the DeFi economy. That means there are bound to be several enticing DeFi projects. Many of them will start out good; however, not all will mature and go on to be successful. Some don’t even take off at all. With these increased new opportunities for trading and financial reward also comes increased risks.

A quick look at the recently failed DeFi project Yam.finance is a good example of how a project can quickly go under. A wrong line of code was all it took to bring down a project that offered so many promises. As a result, millions of dollars in investment were locked away.

The basic line is the market is full of many projects that look very appealing. However, bear in mind the many risks that abound in the market as well. All these projects require careful consideration and scrutiny. Trying to pursue every market opening is bound to make you lose everything instead.

2. Bad Projects Will Spring Up, Too

Every time the Defi economy becomes highly rewarding financially, frauds and scams are sure to spring up. As scammers try to get a slice of the cake and with the way the DeFi market keeps picking up pace. You can anticipate more nefarious players to come on board the DeFi space.

These scammers find a way to fork a well-known project that is likely to look appealing to the public. These bad projects rely on the popularity and success of the previous reputable project. The tip here is if an offer carries illogical risks and looks too good to be true, avoid it like the plague.

3. Great Data Results In Great Insights

Data is everything in the financial market. It is the pointer that helps you make a great decision and take calculated risks. Besides, you are just as good as the data you gather. That is why it is imperative you take in your data from reliable sources.

You might be wondering how to source for reliable data from reputable sources. Fortunately, quite a few open-source information centers provide tons of data for market analysis. As the current DeFi bull market is Ethereum centered, some of the following sources can come in handy in your quest for high-quality data.

We have Coingecko, the CoinMarketCap equivalent for the DeFi market. We also have DeFiPulse that provides information useful for monitoring DeFi stats. Reliable and reputable sources like these make DeFi market navigation much easier for end-users.

4. Familiarize Yourself With Metrics

Understanding the basic metric can help you familiarize yourself with DeFi trading and some of them are described below:

TVL is the Total Value Locked and the term represents the total number of assets held by every DeFi protocols. Volume is the number of coin/token being traded at a specified period; it could be a 20-day span, 2 days, or even a day. Then we have Fees also known as Gas Prices, which stand for the amount that is charged for every transaction that is done within a specific period. For Ethereum based DeFi protocols, you pay in Ethereum so that you can carry out successful transactions.

Another basic term you should be familiar with is the Dominance rate, which represents a DeFi asset’s market cap percentage of the total market cap of all DeFi protocols in the market. For example, we can say that the DEXs project market presently has a dominance rate of 35% in the DeFi economy.

Total or circulating supply, these two metrics are also important basics that you should know. The total supply represents the total number of coin/token that will be released while the circulating supply stands for the amount presently in circulation.

5. Watch The Gas Prices

Most DeFi protocols are Ethereum based and the recent surge in ETH transactions means you have to watch out for the gas prices. Given the number of users that are eager to participate in several DeFi projects, you should expect the gas prices to go up. Careful planning of your trading strategy can save you some Ethereum in fees.

You can make use of an exchange like Anyswap that is known for its low fees, which are 100000 times lower than what is obtainable in the market. You can also keep track of gas prices using the ETH Gas Station.

6. Get To Know The Decentralized Exchanges

The DeFi bull market has been aided very much by DEXes, which is why you need to get yourself familiar with them. For newbies, it will be very helpful to gather as much knowledge as you can about DEXes. This can be achieved through tutorials on DEX as well as demo trading. You can also begin trading with little money that you can afford to lose until you become more accustomed to DeFi trading. A good place to start includes platforms like Anyswap, Uniswap, Mesa, etc. Additional DEXes include Balancer, Kyber Network, Bancor, Curve, Matcha, and many more.

7. Watch Out For Volatility

Anybody familiar with the blockchain sector will be aware of market volatility. However, for newbie traders, this is something you must watch out for in DeFi trading. Prices can come down as swiftly as they spike up in this market. Having this in mind prevents you from been caught unaware.

This is not to say that severe volatility is the constant status of the DeFi market. However, it is better to be prepared for it.

8. Follow Communities That Align With Your Interest

Once you pinpoint a project to trade in, it is best you follow the communities with the same interest as you closely. You can do that by visiting mediums that host mass discussion for the project of interest. Social media is a popular platform where you can find thriving communities for various DeFi projects. Social media platforms like Twitter, Telegram, Discord, and Reddit are hotspots for DeFi communities. These platforms offer many useful data on several projects and also provide you the opportunities to connect with people of similar interests.

9. Be Security Conscious

As mentioned earlier in tip number two, security is essential to evade the series of scams that are sure to spring up in the DeFi market. Be security conscious even as you try to experiment with different projects. Be wary of dubious websites aiming to steal your credentials through phishing attacks. Look at the web address of the site you are visiting and ensure it is the real one.

Projects that offer what is too good to be true should be carefully scrutinized to avoid falling victim to fraud. You can also make use of a hard wallet to store your tokens securely. Your wallet’s seed phrase is exclusively for your personal use. Do not share it with anybody and do not type it online carelessly. Dodge shady DeFi projects and websites.

On matters that are not clear, seek clarification from legitimate sources to help you make informed decisions.

10. Recognize The Risks

As exciting as DeFi projects are, you must know the classes of risk that comes with them. This will help you navigate this economy properly. Regulatory risk has to do with the decentralized nature of DeFi projects. Each one has a different level of decentralization, which makes it difficult to track all the claims made by the project.

We also have the volatility and collateralization risk. This kind of risk is more associated with lending and borrowing. It refers to certain collateral risks on loans. In some cases, the use of over-collateralization brings down volatility risk. However, that can backfire if the value of the collateral falls sharply.

Smart contract risk is the risk the DeFi protocol itself carries. A lot of these protocols are newly built and still require time to undergo rigorous testing and use to be deemed secure, safe, and successful. Therefore, the interaction between the series of DeFi protocols means the risks involved increase. So in case one protocol has a smart contract bug like the Yam.finance bug, it could expose the whole system or cause it to shut down. It is advisable to wait out the early stages of any project or put in a small amount you can afford to lose.

However, another sector of the DeFi market can help edge out these risks and that is DeFi insurance. You can explore DeFi insurance platforms like Nexus Mutual.

Final Thought

The act of trading is delicate and requires careful planning and considerations so as not to run into losses. Given that the DeFi economy is very large and ever-expanding, it calls for making informed decisions every step of the way as you trade. That way you can protect your investment and steer clear of bad investments.

We’ve had millions of dollars already invested in the massive potential of the DeFi economy with some yielding returns and some resulting in losses. The huge potential of the DeFi market means it will experience even more investment. Therefore, keeping up to date with various trading information and tips can give you the upper hand in investment decisions hence, ensuring a better chance of trading successfully in the DeFi market.

Photo by Chris Liverani on Unsplash

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NinjaTrader Review 2020: Pros, Cons, Fees & More • Benzinga

If you’re on the hunt for the best online brokerage, Ninja Trader is a great fit for both new investors and seasoned traders. Some of the key features in NinjaTrader’s futures brokerage service include:

If you’re on the hunt for the best online brokerage, Ninja Trader is a great fit for both new investors and seasoned traders. Some of the key features in NinjaTrader’s futures brokerage service include:

  • Commissions as low as $.09 per Micro contract
  • Low $400 account minimum
  • Low day trading margins of $500 per contract for E-mini S&P 500 (ES), Nasdaq (NQ) and Dow Jones Industrial Average (YM) stock index futures contracts
  • $1,000 margins for Gold (GC) and Crude Oil (CL) futures contracts
  • Free version of NinjaTrader platform included with all brokerage accounts
  • Three platform license levels with varying feature sets and commission rates

In addition, the broker offers competitive spreads and a high-speed execution service for forex currency pairs.  

Who’s NinjaTrader For?

Futures Traders

NinjaTrader’s brokerage services cater directly to futures traders. It’s the ideal destination for those both active and new, with unlimited free use for advanced charting, market analysis, and simulation trading.

Advanced Traders

NinjaTrader’s state-of-the-art trading platform has a variety of features available across three license levels that allow traders to select the best fit for their trading approach. There are two upgrade feature sets available, Trader + and Order Flow +.

While advanced charting, market analysis, and simulated trading are included free for all users, licensing Trader + or Order Flow + gives you access to premium tools such as an enhanced SuperDOM, an advanced alerting system, semi-automated order execution, volumetric bars, and other sophisticated charting systems.

Active Traders

With commission among the lowest in the industry, traders can keep their costs low on a per contract basis. NinjaTrader’s low margins are also a great fit for active traders. With numerous technical analysis tools available, the trading platform can help users target opportunities and manage execution in volatile markets.

NinjaTrader has their flagship advanced trading platform for Windows-based desktop computers. Other third-party platforms are supported and available by request. If you are a Mac user, you can run the software using a multi-boot utility like Apple Boot Camp.

Source: https://ninjatrader.com/

NinjaTrader features a wide range of technical analysis functions that can be useful for those starting out with demo trading — especially if you want to learn how to trade futures.

The broker uses CQG (Continuum) for order routing by default but also supports order execution through Rithmic. Kinetick is also available as a free end of day market data source for stock, futures and forex data optimized exclusively for use with NinjaTrader’s platform.

If you’re interested in trying out the NinjaTrader platform using futures data, you can register to get a free two-week trial.

A free version of the NinjaTrader platform is included with all funded brokerage accounts and has all the core features needed for live trading, with access to charts, market analysis, and simulated trading.

If you want to access some of its more advanced capabilities, you can either lease the software starting at a quarterly basis or purchase a Lifetime license, which includes free upgrades for life.

The advanced tool sets are where NinjaTrader really shines. For example, sophisticated order types known as automated trade management (ATM) strategies are included in the Trader + feature suite. These consist of a set of specific rules you create to manage a group of stop-loss and profit target orders to operate on all or part of an open position.

NinjaTrader’s third-party developer community, known as NinjaTrader Ecosystem, features thousands of third-party apps and add-ons you can use with its trading platform. From their website, you can use the keyword search and filters to scan hundreds of custom tools and trading indicators built to work with NinjaTrader.

If you have programming skills, you can build compatible software within its advanced C# based development environment.

The NinjaTrader platform provides a high-performance backtesting engine which allows users to test and verify futures trading strategies using historical data. A wide range of useful educational materials are available if you’re unfamiliar with its platform and wat to enhance your skills.

These include daily training webinars designed to educate new users on the powerful tools available, hundreds of on-demand training videos, help guides, and an informative YouTube channel.

[youtube https://www.youtube.com/watch?v=bg4ocBoYrjM]

NinjaTrader’s Commission and Fees

Commission and margin requirements are among the lowest in the industry. A $1,000 minimum initial deposit is required to fund a new account and commissions go as low as $.09 per Micro contract with a Lifetime license. Day trading margins of $500 for ES, NQ and YM contracts, and $400 for GC and CL contracts are also very low.

When it comes to platform fees, the broker’s advanced platform and live data are available free of charge for use in a demo account. For live trading, you can use their free platform with all the basic essentials or choose a paid license level for more advanced features and lower commissions.

If you lease or buy a Lifetime license for the trading platform software, you also gain access to a suite of premium features that include its advanced trading management (ATM) strategic order handling. Traders who purchase a lifetime license also get the Order Flow feature set which comes with free platform upgrades for life.

NinjaTrader’s Security

NinjaTrader is well-regulated in the United States by the National Futures Association and the Commodity Futures Trading Commission (CFTC).

NinjaTrader’s Customer Support

NinjaTrader’s online support team excels in prompt replies with inquiries addressed within 15 minutes during market hours. An active user community interacts directly with the NinjaTrader support team in their User Forum. They also host daily live training webinars, have hundreds of on-demand training videos, and more.

NinjaTrader can be reached by email, phone, and an online support form for customer service. For critical trade issues, NinjaTrader provides direct phone support for brokerage clients. International traders are also directly supported with dedicated Spanish, Russian and German brokerage service teams. 

NinjaTrader’s Tradable Asset Classes

NinjaTrader brokerage offers a basic range of asset classes with a focus on futures trading on the CME, CBOT, NYBOT and Eurex exchanges. You can trade the following asset classes via NinjaTrader:

  • Futures 
  • Forex 
  • CFDs
  • Stocks*

*The platform can also be used through other supporting brokers such as TD Ameritrade or Interactive Brokers to trade stocks.

NinjaTrader’s Ease of Use

After downloading the NinjaTrader platform, it’s best to spend some time on the forum and watch the tutorial videos provided. It may take some time to set-up your ideal dashboard.

While NinjaTrader’s platform is exceptionally customizable and offers numerous advanced features, it may not be considered easy to use when you first download the platform.

Final Thoughts

NinjaTrader is one of the top brokers for futures and forex trading. The unlimited use of its free platform is a great way to get acclimated to NinjaTrader before deciding to trade live.

The free platform is sufficient for new traders with more advanced tools available as need such as semi-automated execution. NinjaTrader’s low commissions and fees, free tools, and an active community forum will work to any trader’s advantage.

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‘Risk On’ Market Update 12/10/20 – Forextraders.com

Markets finished last week firmly in a ‘risk-on’ frame of mind. Stocks, commodities and non-USD currencies all moved into bullish territory in terms of technical indicators. The uncertainty which characterised September’s price moves made way for a more positive outlook in a wide range of asset groups.

Trading Risk Measurement

Markets finished last week firmly in a ‘risk-on’ frame of mind. Stocks, commodities and non-USD currencies all moved into bullish territory in terms of technical indicators. The uncertainty which characterised September’s price moves made way for a more positive outlook in a wide range of asset groups.

Market Update

Stocks – Market News

• Asian markets had a mixed start to the week. The Hong Kong Hang Seng equity index was up 2.29% on Monday, but the Japanese Nikkei 225 was down -0.17%.

The mixed messages from the Asian trading sessions carried into the European open. Asian traders were wise to the risk of following the buying patterns only to find European and American traders taking profits later in the day.

Metals – Market News

  • Price action in gold and silver hints that they could have started one of their breakout patterns. Fans of the metals will be familiar with how both can build momentum and click through price levels on the way to their next target price. The main issue is deciding on trade entry points.
  • As of Monday morning, the price of gold ($1925.22) is where it was on Friday afternoon. Support 1 is at $1921.98, Support 3 at $1917.87.
  • Such price consolidation is a characteristic of the metal and there’s nothing bearish about the indicators.
  • The Hourly SMA has provided support and could be the indicator to watch. The kiss of that line in the early hours of Monday marking the week-to-date low at 1921.66. Price support in that region was also provided by the 23.6% Fib.

Source: FXTM

Energy Commodities – Market News

  • Geo-political risk rather than technical indicators continue to guide the price of crude with Azerbaijan and Armenia engaging in a will-they won’t-they military stand-off.
  • It’s hard to get a clear picture of how political uncertainty will impact price. Still, the increased volatility and price increase of 6.84% last week will be a tempting proposition for many.

Trade of the Week

Last week has been firmly signed off as a successful opportunity to ‘buy-the-dips’. Our desk put on a buy of the US 500 stock index one hour before the European stock markets opened on Monday the 5th of October. With an opening price of 3367.28, it caught the pre-market exuberance and was mostly in positive territory throughout the week. Only trading underwater in the overnight trading of Tuesday evening and Wednesday morning.

Source: IG

In the morning session on Monday the 12th, the total percentage return on the US 500 position is +3.74%. The two-unit purchase trade, put on using IG, generating a profit in cash terms of £244.72 in the space of one week.

Source: IG

The obvious question to ask is whether there is any juice left in the move towards risk. The countdown to the US presidential election has started in earnest. With 22 days until votes are cast, those looking for this week’s trade might have less conviction than the position our desk put on last Monday.

Gold’s role as a defensive asset is not as strong as some would suggest. It’s hard though to look past the metal’s price action, dollar weakness, and the chance that it be seen as some kind of security as the election nears.

A position in gold could be a useful marker. Our buy-in small size for $1923.15 is one for the Demo Account, but it should help keep track of the markets.

Our analysis is based on a comprehensive summary of market data. We use a range of metrics with weighting given to simple and exponential moving averages and key technical indicators.

Any information contained on this Website is provided as general market information for educational and entertainment purposes only and does not constitute investment advice. The Website should not be relied upon as a substitute for extensive independent market research before making your actual trading decisions. Opinions, market data, recommendations or any other content is subject to change at any time without notice. ForexTraders will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

PAST PERFORMANCE IS NOT ALWAYS INDICATIVE OF FUTURE RESULTS.

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Learn with ForexTB: The battle of the currencies!

What is currency trading?How do currency pairs work?What currency pair is the most popular to trade and why? A few of the most common questions concerning traders when it comes to currency trading!Well, we’ve got all the answers, but first let’s start with some simple explanations and, as we go along, we’ll cover everything around…

An introductory guide to forex trading

What is
currency trading?
How do currency pairs work?
What currency pair is the most popular to trade and why?

A few of
the most common questions concerning traders when it comes to currency trading!
Well, we’ve got all the answers, but first let’s start with some simple explanations
and, as we go along, we’ll cover everything around the currency market.  

Forex trading
(aka. Foreign exchange, duh!), is all
about buying and selling currencies in pairs
. All you need to know is how
much the currency pair is worth. However, it’s not that simple, as these
currency pairs do not always deliver the desirable results to traders.

Before we dive into the trading currency
pairs, let’s see some of the most popular currencies out there. These are:

  1. US Dollar (USD)
  2. Euro (EURO)
  3. British Pound (GBP)
  4. Australian Dollar (AUD)
  5. Canadian Dollar (CAD)
  6. Swiss Franc (CHF)
  7. Japanese Yen (JPY)

Now, let’s see how they look in
pairs according to the category they fit in.
Currency pairs are divided into three categories. The “Majors“, the “Crosses” and
the “Exotics“, each with its own
characteristics.

1. The “Majors”
These currency pairs are always paired
with the U.S dollar
, with EUR/USD
being at the top of the currency pairs table as the most traded currency pair
in the market
. These are:

FXTB2

So why is the EUR/USD pair the most popular and traded pair ever?
Because both currencies represent two of
the biggest economies in the world!
Thus, trading this pair will result to
having tight spreads. And YES, this is a good thing because the lower the
spread is, the lower the fees you pay when you enter a trade.

2. The “Crosses”
These currency pairs do not involve the
U.S Dollar
.

These include and not limited to:

FXTB3

3. The “Exotics” *
These currency pairs include one major
currency
, this being the US Dollar, and one currency from a developing market. Some examples of exotic
currency pairs are:

FXTB4

Something
to note in this category: Exotics tend to be “trickier” in terms of price
fluctuation, due to economic factors. For example: A political result or
scandal in Mexico can cause the USD/MXN price to change unexpectedly!
Therefore… Trade at your own risk, if you’re about to trade with these pairs
(well, you should always be careful when trading)!

So, as we’re approaching to the
end of this useful educational article, it
is advised for less experienced traders, NOT TO trade with multiple currency
pairs simultaneously
! We recommend that you make yourself comfortable whilst trading on a demo account, as this
will make you gain confidence and at the same time potentially achieve better
results! Well, we can’t guarantee that, but you get the gist. Once you’ve mastered currencies, you can
slowly expand you trading abilities and start trading with new currency pairs!

Don’t you agree?

This article was submitted by ForexTB.
For bank trade ideas, check out eFX Plus

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