Over recent months, cryptocurrency markets have witnessed accelerated growth. As traditional low-risk assets like treasury bills and bank deposits fail to return significant yield, and the mushrooming money supply of the world's global reserve currency fuels rising concern over inflation, cryptocurrencies as hard assets have gained a lot of traction.
Bitcoin rose past $50,000 this week, but how are big corporations reacting? What does institutional investment mean for the asset? The Dubai Eye's Business Breakfast asks Matt Blom, writer of our Daily BTC Analysis and Global Head of Sales Trading at EQONEX.
Cryptocurrency markets are famous for their inherent volatility, yet they are also no stranger to quieter periods. In fact, Bitcoin (BTC) spent almost two months in the summer of 2020 locked in a stubborn trading range between $9,000 and $10,000. The number-one cryptocurrency almost resembled a stablecoin with its uncharacteristic lack of volatility during that time. So, how do traders learn to trade in sideways markets and capitalize on the smallest fluctuations in an asset's price? Here are a few tips.
The cryptocurrency markets have evolved at a rapid pace and, with the recent surge in institutional interest, that growth looks set to accelerate. Yet, as an emerging asset class underpinned by nascent technology, cryptocurrency markets remain largely inefficient and riddled with opaque practices to the detriment of investors. As cryptocurrency reaches the mainstream, the importance of integrity among participants and the need to implement best practices becomes ever more pressing.
With the cryptocurrency markets beginning 2021 in earnest, we review the regulatory approaches taken by different jurisdictions. Last month, European Central Bank (ECB) President Christine Lagarde called for Bitcoin (BTC), a "highly speculative asset," to be regulated on an international level. But, is a uniform approach possible with such different degrees of comfort toward cryptocurrencies between global regulators?
As Bitcoin’s meteoric rise and subsequent volatility over the past few weeks has hit the headlines, the total crypto market cap now stands at well over $1 trillion. In collaboration with our partner, Itiviti, we look into what trends are set to shape the digital asset class in 2021.
Neil Sheppard, COO of Financial Services at EQONEX, and Anthony Pompliano discuss EQONEX, derivatives, risk management, capital efficiency, and EQONEX.io. Learn about Neil's background, the EQONEX ecosystem, derivatives, and how EQONEX benefits all traders.
Watch our CEO Richard Byworth and SkyBridge Capital Founder and Managing Partner Anthony Scaramucci discuss the new era of cryptocurrencies on the AIM Summit, as they delve into mainstream digital asset adoption, likely price movements, market regulation, and the role of crypto exchanges.
As we mentioned previously, perpetuals have a mechanism to ensure pricing aligns with the underlying spot product. We refer to the spread between the Spot and the Perpetual contract as Basis. The resulting exchange of payment between long and short holders of the contract is called the Basis Payment.
The massive rally in cryptocurrencies is almost unrecognizable from three years ago. When the Bitcoin (BTC) price marked its all-time high just shy of $20K in December 2017, it was exclusively retail-driven. Regulation was scant and insufficient; hacks, scams, and Ponzi schemes abounded; investors made (and lost) a lot of money overnight; and major financial institutions like JPMorgan were steadfast in calling BTC a "fraud" and a "bubble."
On EQONEX, we differentiate between the Market Price and the Mark Price of the perpetual. The Market Price is the last traded price of the product on EQONEX. The Market Price may deviate (significantly) from the rest of the market for example in case of large orders or an illiquid order book. The Mark Price gives a fairer value for the contract by taking a 3-second TWAP of the Market Price. A TWAP is the average of the open, high, low and close price for a specific period. In the case of the Mark Price these periods are three 1-second intervals. As the Mark Price is used for P&L calculation and to determine whether the position needs to be liquidated, using a TWAP to smooth out temporary spikes in prices should prevent unnecessary liquidations.
Perpetual futures are futures contracts with no maturity, as opposed to dated futures, which expire at a pre-set date and time such as every month or every quarter. Any position in a perpetual future stays open until the trader decides to close the trade by executing an offsetting trade, or until the trade gets liquidated by EQONEX.