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Crypto explained

How to Trade in a Sideways Market

February 16, 2021

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.

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Perpetuals Trading Series: How EQUOS deals with liquidation

January 22, 2021

As we explained in the previous sections in this guide, an account is only able to send new orders as long as its Total Account Margin is higher than the Initial Margin required for all open positions and open orders. As soon as the Total Account Margin drops below the Initial Margin, the account can no longer send any new orders unless such order would reduce the existing position (e.g. a sell order, when the current position is long). To continue adding positions (e.g. add buy orders, when the current position is long), the trader will have to transfer additional funds that can be used for margin to their wallet, close open orders, or close open positions.

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How Does Liquidation Work?

January 11, 2021

As touched on last week, the industry standard is to perform no credit checks on traders, and there is no recourse for a trader that has accumulated negative margin balance to make good on their losses. Because of this, the crypto trading industry introduced auto-liquidation as a layer of protection for the exchange against potential losses as well as a guarantee that winning trades are honored… But how does this really work?

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Does Ethereum have an Inflation problem?

January 11, 2021

With the recent highs seen in the price of Ether (ETH), market validation of the smart-contract blockchain platform is strong. But as the price has risen, so has the question of ‘inflation’ on the platform.

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The Evolution of the Cryptocurrency Derivatives Market

January 8, 2021

We believe the emergence of cryptocurrency derivatives is the inevitable evolution of the digital asset class and should contribute to reductions in volatility and enhancing market efficiency.

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Introduction to Leverage, Margin, and Liquidation

January 7, 2021

Many virtual currency exchanges advertise the ability to trade products with leverage. In traditional finance, there are a number of popular leveraged products, such as ETFs. An ETF is a product that moves as a function of the underlying factor and the leverage factor. For example, an ETF that has 5x leverage will lose or gain 5% if the underlying asset moves by 1%. Leverage defines your position’s exposure to the underlying asset class.

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Digital Assets Decoded: What are Consensus Algorithms — Proof-of-Stake

January 7, 2021

This is the fourth article of our Digital Assets Decoded series which aims to give you a fundamental understanding of the cryptocurrency space.

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Beginners Guide to Derivatives

December 19, 2020

What are derivatives? Derivatives have been around for millennia; their use can be traced back to ancient times when people bartered with one another to trade perishable goods such as grain and livestock[1]. They gained widespread popularity during the rise of the financial services sector, when newer valuation techniques were created in the 1970s and rapidly developed the derivatives market. It is difficult to imagine modern finance without derivatives now.

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Digital Assets Decoded: What are Consensus Algorithms — Proof-of-Work

December 7, 2020

This is the third article of our Digital Assets Decoded series which aims to give you a fundamental understanding of the cryptocurrency space.

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What is Ethereum 2.0? Overview, Features, and Price Implications

November 27, 2020

The second-largest cryptocurrency by market cap, Ethereum, has had the most significant update in its 5-year history. A major milestone has been achieved on the path to ‘Ethereum 2.0’, also known as ‘Eth2’, which represents a pivotal development in the evolution of the Ethereum blockchain.

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Digital Assets Decoded: What are Consensus Algorithms?

November 19, 2020

This is the second article of our Digital Assets Decoded series which aims to give you a fundamental understanding of the cryptocurrency space. In our previous article, “What is Blockchain?”, we discussed what a blockchain is and how it stores data as a series of events.

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Digital Assets Decoded: What is Blockchain?

October 28, 2020

Blockchains. DeFi. Cryptocurrencies. Consensus algorithms. These are terms that you may have heard of in recent months, and with the recent boom in Decentralized Finance, have piqued investors’ interests. How does this obscure piece of technology work, and how can you benefit from it?

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