Diginex has launched a cryptocurrency exchange in Singapore, where it currently operates under a "temporary exemption" from licensing. The move comes ahead of its planned listing on Nasdaq, expected to take place this quarter.

Its Singapore exchange, EQUOS.io, would specialise in crypto derivatives trading and initially offer spot trading, with dated futures, options, and other derivative products to follow. The blockchain technology company added in a statement Thursday that the exchange was operating under an exemption in Singapore's Payment Services Act, and would be a "fair and transparent platform" for users.

It also would introduce an "easy to use" interface for retail investors as well as managed account features designed to improve collateralisation processes, amongst others.

Diginex CEO Richard Byworth said: "Our industry analysis has allowed us to understand the friction points for institutions to trade digital assets and address many of those with new and improved solutions around portfolio management."

The launch comes ahead of the company's planned merger with 8i Enterprises Acquisition, which is expected to be finalised in the third quarter and will see Diginex's listing on Nasdaq.

In its statement, the blockchain tech company added that it had applied for a Major Payment Institution licence in Singapore, where it currently operates under the temporary exemption.

The Monetary Authority of Singapore (MAS) earlier this year published a list of entities that had been exempted from holding a licence under the Payment Services Act, for specific payment services, and a period of either six or 12 months. This exemption would end after the specified period or if the entity applied for a licence.

While based in Hong Kong, Diginex chose to launch its cryptocurrency exchange in Singapore because of the latter's regulatory regime, Byworth said in a Reuters report. He described Singapore as "more flexible" in its views about cryptocurrency.

In January, the country's Senior Minister Tharman Shanmugaratnam said in parliament that the government believed crypto derivative products were not suitable for most retail investors because they did not have intrinsic value and were subject to volatile pricing due to speculation. He said this prompted MAS to regulate crypto derivative products that were listed and traded only on approved exchanges, which were subject to regulatory requirements and oversight.

Tharman noted: "But we do not extend the regulation of crypto derivative products beyond approved exchanges. This would confer misplaced confidence in these highly volatile products and lead to a wider offering of such products to retail investors. Our approach has worked so far as trading in crypto products in Singapore remains limited and only a small number of retail investors are involved."

He said MAS had instructed all financial institutions to comply with additional measures if they offered crypto products to retail investors, such as restrictions on advertisement. The minister had stressed that such measures did not apply to entities not regulated by MAS.

Singapore last November said it was exploring plans to allow payment token derivatives, such as Bitcoin and Ether, to be traded on local exchanges and for such activities to be regulated. The move aimed to address international investor interest in cryptocurrencies.

MAS in 2018warned eight cryptocurrency exchangesagainst engaging in unauthorised trading, specifically, those involving securities or futures contracts. It also had repeatedlycautioned the publicabout the risks of cryptocurrencies and to understand the environment before investing in digital tokens, stressing that these were not recognised as legal tender and functioned in an unregulated environment.

Japan's messaging platform Line in July 2018 launched its cryptocurrency exchange, Bitbox, in Singapore, offering 30 cryptocurrencies including Bitcoin, Ethereum, and Litecoin.

Originally posted here:
Diginex launches Singapore cryptocurrency exchange | ZDNet

A bipartisan quartet of US congressmen wants the IRS taxation policy not to dissuade taxpayers from participating in blockchain token staking.

These politicians believe Americas ingenuity can help drive this promising staking technology.

The four congressmen are Bill Foster (D) of Illinois, Darren Soto (D) of Florida, Tom Emmer (R) of Minnesota, and David Schweikert (R) of Arizona.

In their letter addressed to IRS Commissioner Charles Rettig, the quartet expressed concern that the taxation of staking rewards as income may overstate taxpayers actual gains from participating in this new technology.

They add this could result in a reporting and compliance nightmare, for taxpayers and the Service alike.

The letter, in which the U.S. politicians explain their understanding of proof-of-stake (POS), also gives reasons why they favor POS ahead of bitcoins proof-of-work consensus.

The politicians say in addition to needing massive amounts of energy, the Bitcoin network is secured by a relatively small number of miners. On the other hand, in POS, all tokenholders can contribute to network security.

By staking tokens, participating third-party tokenholders can also receive newly created tokens as rewards for helping to maintain the network.

The quartet says it agrees with the principle that taxpayers true gains from these tokens should indeed be taxed.

However, the politicians suggest a different solution:

Similar to all other forms of taxpayer-created (taxpayer-discovered) property such as crops, minerals, livestock, artwork, and even widgets off the assembly line these tokens could be taxed when they are sold.

Eager to keep the U.S. abreast with this technology, the congressmen end their letter by urging the IRS to continue pursuing its mandate but also (to) ensure innovation wont be driven elsewhere.

This letter by the four members of Congress is the latest signal that the U.S. is moving to embrace blockchain technology and cryptocurrencies.

In July, the Office of the Comptroller of the Currency (OCC) clarified that national banks and federal savings associations can provide cryptocurrency custody services for customers.

Also in the same month, a U.S. federal court ruled that bitcoin is a form of money.

Meanwhile, reacting to the letter by the U.S. congressmen, Tim Ismilyaev, CEO and founder at Mana Security, says the growth of POS has finally forced some people in the U.S. government to see the importance of embracing cryptocurrencies.

The US government recognizes the immense growth of assets locked in POS and defi [decentralized finance] markets (over $15B is already locked in such products) although these markets did not exist a few years ago. The value of locked assets is likely to surpass $100B mark in upcoming years, and this will happen with or without US approval. So this move by Congress toward crypto is rational.

The bipartisan letter was written on July 29.

What do you think of this letter? Tell us your thoughts in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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US Congressmen Want IRS to Balance Taxation and Innovation in the Cryptocurrency Space | Taxes - Bitcoin News

In reply to an RTI submitted earlier, the Finance and Department of Economic Affairs (DEA) has said that the inter-ministerial committees cryptocurrency bill is awaiting approval of the government. Several ministries are currently examining the bill.

In February 2019, the inter-ministerial committee had submitted the bill titled Banning of Cryptocurrency and Regulation of Official Digital Currencies Bill 2019. Former DEA Secretary Subhash Chandra Garg heads the committee.

Mohammed Danish, lawyer and co-founder of Crypto Kanoon, had filed an RTI with the DEA requesting the status of the bill. In a short reply, the DEA wrote:

The government has set up inter-ministerial committee (IMC) for examining the issues of cryptocurrencies under the chairmanship of Secretary (EA).

The report of the IMC on VCs [virtual currencies] has since been submitted by its members, but is awaiting approval of the government. The report and bill now be examined by the government through inter-ministerial consultation by moving a cabinet note in due course.

Danish explained that the bill in question proposes a blanket ban on all cryptocurrency-related activities. He added that the bill prescribes punishments for every activity from mining, holding, advertising, promoting, buying, and selling digital assets.

He added that it is unclear and quite pre-mature to predict what the Ministry of Finance will do. However, it appears that the ministry does not want to proceed with this crypto bill for parliamentary clearance in the present form. He added:

If the govt. decides to pass a law banning crypto, this law can be challenged by crypto business, traders, or enthusiasts based on various rights available to them under the Constitution.

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Indian government yet to approve the cryptocurrency ban bill - FXStreet

MEXICO CITY, MX / ACCESSWIRE / August 5th, 2020 Venture capital and blockchain incubator Krypital Group has announced plans to enter the LATAM crypto market with the upcoming launch of the Mexo crypto exchange. Set to launch on August 20th with backing from Krypital Group, Mexo is a cryptocurrency exchange designed to serve the needs of Latin American crypto users. Growing demand for digital assets in Mexico and across LATAM inspired the creation of Mexo as a platform tailored to cater to the unique needs of this region.

Built on a foundation of high security, deep liquidity, and excellent customer service, Mexo is a modern exchange for seamlessly entering the cryptocomy. It offers spot trading, contract trading, trading academy, peer-to-peer marketplace, and professional local support team while giving users exposure to a full list of trading pairs and features.

Maggie Wu, CEO & Co-Founder of Mexo and Krypital Group, said: For years, we have been at the forefront of blockchain evolution and have seen the LATAM market gradually emerging as a major player in the space. In our eyes, the Latin American market and especially Mexico has the biggest potential to be the next center of blockchain.

Adrian Diaz Lujan, COO of Mexo, said: The cryptocurrency community in Latin America has been forced to endure suboptimal platforms that arent tailored to their needs and whose features are limited. I am excited that we finally have a platform like Mexo, with a robust technological structure that provides security, liquidity, and which is focused on communities and users in Latin America.

David Yao, CMO of Mexo, said: LATAM cryptocurrency users have been waiting a long time to access advanced products like contract trading with leverage as well as a full suite mobile app to manage their portfolio in a market that runs 24/7. Mexo users will be able to access powerful trading tools in the palm of their hand and connect with local customer service in Spanish. This will benefit the entire region.

Mexican and LATAM cryptocurrency traders with a range of experience and investment levels comprise Mexos target market. Novice and pro traders, OTC, P2P, and market makers are all catered for on Mexos purpose-built platform.

Mexico is estimated to have more than 800,000 cryptocurrency users, who currently have limited access to new products and growth markets, including derivatives and defi assets. Mexo will provide a safe environment for these individuals to familiarize themselves with such products and to advance their technical and fundamental skills to trade more effectively. Features include:

Mexo will launch in Mexico and Latin America on August 20th, giving cryptocurrency investors a new way to trade, learn, and profit.

About Mexo

Mexo is a cryptocurrency exchange developed by a professional team with years of industry experience. Localized for Mexican and LATAM traders, Mexo speaks their language and offers the products that Latin American investors are seeking. The platform provides the most reliable and user-friendly way to buy, sell, and trade cryptocurrency while learning practical skills to make smarter investment choices.

About Krypital Group

A global venture capital firm and blockchain incubator, Krypital Group has nurtured projects that have generated a total value of more than $1B and has brought in more than 2 million users to top blockchain projects. The company, which has invested in Filecoin and Tezos and incubated projects such as CyberMiles and ArcBlock, is the recipient of two Outstanding Awards by Nova Global Blockchain Investment Institution.

Contact for Krypital Group & Mexo.ioJane LuoKrypital GroupJane@krypital.com

SOURCE: InboundJunction

View source version on accesswire.com: https://www.accesswire.com/600478/Krypital-Group-to-Enter-LATAM-Cryptocurrency-Market-With-Mexo-Exchange-to-Launch-on-August-20th

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Krypital Group to Enter LATAM Cryptocurrency Market With Mexo Exchange, to Launch on August 20th - IT Business Net

An Indian government official has claimed that two ministries and the Reserve Bank of India are actively working on a legal framework to ban cryptocurrencies on the subcontinent.

According to an Aug. 4 report from Indian news website Moneycontrol, authorities in India are making preparations to pass a law banning cryptocurrency trading. The site quoted an anonymous official as saying that consultations between the Ministry of Electronics and Information Technology, the Ministry of Law and Justice, and the Reserve Bank of Indiahad begun regarding the framework of such a law.

Once Parliament resumes for the session, we are hoping to get [the law] ratified,the official said. Parliament is expected to reconvene in late August or early September.

The official stated that the government was considering banning crypto through legislative change rather than methods such as the blanket ban from the RBI for banks dealing with crypto firms because it would be more binding. It will clearly define the illegality of the trade, the person said.

In March, the Supreme Court of India struck down a blanket ban on banks dealing with crypto businesses thathad been imposed by the RBI since July 2018. The repeal led to a boom in new exchanges across the country.

However, government officials have been floating the idea of enacting a new law not allowing cryptocurrencies in India in place of the RBI ban.

Ashish Singhal, founder and CEO of Indian cryptocurrency exchange CoinSwitch, said that the chances that the government would impose a blanket ban on digital currencies weremore likely in 2019 than this year. He said there has been a change in the way crypto is perceived across India, hopefully for the better.

Though many parts of India still face some restrictions on movement due to the pandemic since a lockdown was ordered in March, crypto exchanges in the country reported strong growth as some investors moved away from traditional assets.

Cointelegraph reported in May that India-based exchange CoinDCX had ten times the average number of users sign up in the week after the RBI ban was lifted as well as47% growth for Q1 2020. Trading platform WazirX also recorded a month-on-month growth of over 80% in both March and April. Additionally, United States-based crypto exchange Coinbase entered the Indian market, offering crypto-to-crypto conversions and trading services from April onward.

Moneycontrol said that millions of dollars worth of business in cryptocurrency is being done every week, with the lockdown pushing up the volumes.

A growing number of investors have found refuge in virtual currencies as traditional assets have taken a beating over worries about the health of the economy battered by the coronavirus outbreak.

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Indian Government Actively Working Toward New Crypto Ban - Cointelegraph

Ripples investment arm Xpring is throwing three more years of support into the development studio XRPL Labs and its crypto banking platform Xumm in a push for mass adoption.

Warren Paul Anderson, Xprings head of developer relations, says the company views the Xumm platform as one of the best representations of the XRP Ledger. The banking app allows users to hold and spend Ripples native token XRP with the goal of allowing people to be their own bank. In the long haul, XRPL Labs says Xumm plans to give people a way to spend dollars, euros, and XRP without the assistance of a financial institution.

First unveiled in 2019, Xumm has been in public beta since March. XRPL Labs says Ripples continued support will help drive the widespread adoption of its XRP-focused platform.

With Xpring supporting XRPL Labs with an additional investment to support the next three years of growth and development of its Xumm App & Platform, XRPL Labs will be able to focus on their road map, working towards adoption, XRP ledger accessibility & building the bridge between consumers, businesses and developers.

The startups new mid-term to long-term roadmap for Xumm includes adding fiat on and offramps while also introducing a new amendment to the XRP Ledger called Hooks. The proposed change will offer new business logic functionalities such as automatic saving and tipping as well as blocking of transactions related to scam activities.

Featured Image: Shutterstock/Willehard Korander

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Ripple Reveals New XRP Investment in Push for Mass Adoption of Cryptocurrency Banking Platform - The Daily Hodl

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Isle of Man licensed betting platform, Rivalry, is the latest esports focused sportsbook to adapt to changing player preferences by supporting payments through Bitcoin. COVID-19 has, in many cases, served as an accelerant to slow-burning changes in consumer behaviour and preferences. Most notably: the meteoric rise of esports betting. While many operators were left scrambling to adapt to the overnight demand, a select few, such as Rivalry, were perfectly positioned to capitalize on the pandemic pivot. Much like cryptocurrencies, esports betting is proving to be anything but a fad.

Forward-thinking operators like Rivalry believe esports provide a glimpse into the future of betting. Their average esports bettor is in their twenties an early adoptor and digital native that is no stranger to Bitcoin, but maybe less so to traditional betting mechanics and terminology. This brings new opportunities for operators to reshape and reimagine the betting experience.

Rivalry CEO, Steven Salz adds Our integration with CoinCorner has allowed us to offer Bitcoin as a payment option to our players and further simplify the payment experience. Its partnerships like these that help us evolve the betting experience for a new cohort of bettors that think and behave differently.

UK Bitcoin exchange, CoinCorner, has seen business appetite adjusting to accommodate the recent rise in demand for online banking and payment methods, with an uptick in businesses keen to introduce Bitcoin payments as a way to gain competitive advantage by opening up to new markets, receiving cheaper fees and no chargebacks.

Sam Tipper, Business Development Manager at CoinCorner, said: Since I joined CoinCorner in 2019, weve been making huge strides in assisting businesses across multiple industries to accept Bitcoin preparing them for the new reality of a changing payment landscape. This is particularly true for businesses regulated out of the Isle of Man, like Rivalry, who cater to a global market.

While the gambling industry debates on the staying power of esports as a profitable betting market, operators like Rivalry are adapting with ease and transforming the betting experience to meet the needs of an evolving user base.

Related

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Esports Sportsbook Rivalry Announces Roll Out of Cryptocurrency Payments in Partnership with CoinCorner - European Gaming Industry News

The Office of the Comptroller of the Currency (OCC) recently signaled its approval for banks to fully wade into the cryptocurrency custodian space. On in a July 22, 2020 interpretive letter, the OCC concluded that a national bank may provide cryptocurrency custody services on behalf of its customers, including by holding the unique cryptographic keys associated with cryptocurrency, so long as the institution is able to effectively manage the risks and complies with applicable law.

In the letter, the OCC recognized a growing demand for banks to hold unique cryptographic keys associated with cryptocurrencies on behalf of customers and to provide related custody services. The demand is driven by the need for secure custody of cryptographic keys, which are irreplaceable and loss of the key is essentially loss of the cryptocurrency assets themselves. Existing cryptocurrency exchanges that currently offer custodial services have proven vulnerable to hacking and theft. The OCC also recognized a benefit to permitting investment advisers that manage cryptocurrencies on behalf of their clients to use national banks as custodians for the managed assets.

The OCC highlighted several key differences between providing custody for cryptocurrencies as opposed to other assets. First, because digital currencies exist only on the blockchain or distributed ledger on which they are stored, there is no physical possession of the asset; rather, ownership of a particular unit of digital currency is transferred from party to party by the use of unique cryptographic keys. As such, a bank holding digital currencies on behalf of a customer would take possession of the cryptographic asset keys and maintain them in a wallet that shields the key from discovery by a third party. Second, bank custody of digital assets also implicates the distinction between non-fiduciary and fiduciary custodians. Non-fiduciary custodians, including many existing cryptocurrency exchanges, simply provide safekeeping services that allow for control and transfer of the asset. In contrast, a bank holding assets in a fiduciary capacity (e.g., as a trustee, an executor or administrator of an estate, a receiver, or an investment advisor) is subject to heightened standards of care.

A bank engaging in new activities, such as custody of cryptocurrency assets, should develop and implement those activities through the lens of a comprehensive risk assessment. A number of factors make cryptocurrency custodial services a high risk activity, including cryptocurrencys particular susceptibility to cyberattack, its attractiveness to money launderers, and its unique, nonfungible value. In addition, Banks will need to establish specialized audit procedures to ensure the effectiveness of their controls for digital custody activities and compliance with all applicable laws. Finally, would-be digital custodians will have to strictly assess the risks associated with each individual cryptocurrency account, before opening. The custodian will have to demonstrate its capacity to meeting all required initial and ongoing diligence obligations associated with such accounts, including the Bank Secrecy Act, 31 U.S.C. 5311, et seq., and anti-money laundering considerations, information security, and the banking institutions own knowledge of the different cryptocurrencies and their individual characteristics.

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Office of the Comptroller of the Currency Affirms Authority of a National Bank to Provide Cryptocurrency Custody Services - JD Supra

The Indian government is reportedly having inter-ministerial consultations on a proposed bill to ban all types of cryptocurrencies

Ripple CEO says there is an erosion of trust in global financial markets

Chinas central bank is planning to use its digital currency to challenge the dominance of Alipay and WeChat pay

Trouble may be looming on the horizon for cryptocurrency trading platforms in India, with the government reportedly moving into advanced deliberations over a bill from last year which seeks a complete ban on virtual currencies.

The bill, entitled, Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019, was drafted by an inter-ministerial committee headed by former Finance and Department of Economic Affairs (DEA) Secretary Subhash Chandra Garg. Lawyer Mohammed Danish, the co-founder of Crypto Kanoon, a crypto regulatory media platform, had filed an RTI application with the Department of Economic Affairs to establish whether media reports suggesting that the government had begun consultations on the bill were accurate.

In his RTI, Danish had inquired, Has any cabinet note been sent for IMC (inter-ministerial consultation) on the legal framework of cryptocurrencies/virtual currencies? and, Does this cabinet note seek inter-ministerial consultation on Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019? If not, what is the purpose of this cabinet note?

In its reply to Danishs RTI, the Department of Economic Affairs wrote, The government had set up an inter-ministerial committee (IMC) for examining the issue of cryptocurrencies. The report of the IMC on VCs (virtual currencies) has since been submitted by its members but is awaiting approval of the government. The report and bill will now be examined by the government through inter-ministerial consultation by moving a cabinet note in due course.

The proposed bill calls for a complete ban on all cryptocurrencies and related activities such as mining, holding, advertising, promoting, buying, selling and providing exchange services, among other things. Indian institutions have long been hostile towards cryptocurrencies as it is believed that such currencies are used for anti-social purposes such as funding terrorist activities, a fact backed through evidence collected by the Financial Action Task Force (FATF), an inter-governmental organisation to combat money laundering. These supposed ramifications are believed to be a consequence of cryptocurrencies being outside the purview of any countrys central bank, the lack of any underlying fiat, episodes of excessive volatility in their value, and their anonymous nature which goes against global money-laundering rules.

In March this year, the Supreme Court quashed a Reserve Bank of India (RBI) circular from 2018 which had ordered a banking ban on cryptocurrencies in India. Since the SC order, there has been a spurt in cryptocurrency-related activities in India, with some crypto exchange platforms reporting a 400% spike in trading activity. It remains to be seen if the positive outlook for cryptocurrency exchange platforms in India will hit a roadblock with the coming of a blanket ban on virtual currencies possibly in the upcoming monsoon session of the Indian Parliament, the dates for which are yet to be notified

In other news, Bitcoin is trading at $11,135 at the time of writing, reporting a marginal increase of 1.69% from last week, when the price of a Bitcoin was $10,949. Bitcoins market cap is $205.46 Bn.

Ethereum is trading at $391.52, reporting an increase of around 24% from last week, when the price of Ethereum was $316.6. Ethereums market cap is $43.86 Bn.

Brad Garlinghouse, CEO of global payments system Ripple, has said that in an uncertain world where the global economy is witnessing a downturn due to the financial disruption caused by the Covid-19 pandemic, governments were seriously considering the blockchain technology. Garlinghouse, in a series of tweets, while commenting on a Bloomberg article which detailed the pros and cons of potential alternatives to the dollar such as gold, yuan and crypto, said that with the erosion of trust in the global financial system, people will inevitably gravitate towards cryptocurrencies. It addresses frictions (settlement, transparency, among others) that were assumed VERY hard to solve before. Crypto is up 80% while USD is down 3% YTD, Garlinghouse wrote in a tweet.

Garlinghouse admitted that the US dollars dominance as the backbone of the global financial infrastructure wasnt going to be lost anytime soon to other assets such as gold, the yuan or crypto, among others, anytime soon. But is it weaker today? he asked. Evidently, as the dollar index, which measures the greenback against a host of leading currencies, had its worst month in a decade in July, as it lost more than 4%. It is down 10% from its peak in March.

Chinas central bank, the Peoples Bank of China (PBoC), is reportedly planning to use its digital currency electronics system to counter the dominance of Chinese tech giants Alibaba and Tencent in the countrys digital payments sector. The report comes only a few days after it was reported that PBoC had promoted an antitrust investigation against both companies digital payments platforms, Alipay and WeChat Pay for suppressing competition in the sector. PBoC will use the DCEP to provide banks equal opportunities in the field of digital payments as it earlier did to technology giants.

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Cryptocurrency This Week: India Could Ban Virtual Currencies & More - Inc42 Media

Written by Noah Abbe, analyst and trader at BTCC UK

Traders all around the world are always looking for opportunities to make money. With progression of time and technological advancements, the traders life and opportunities have evolved along as well. Introduction of virtual financial assets, along with the popularity of the futures of virtual currency has brought interest from traders globally.

Bitcoin was the first cryptocurrency launched in 2009 and remained relatively low in terms of value the first few years until reaching a massive high in 2017 and staying close to a $10K mark now.

Looking at the chart above, having traded below a $2 000 mark until 2017, there was an upsurge in price where the return went as high as to 10 times in a single year.

That makes it a 10x or 1 000 percent in a single year of holding. Not just that, Bitcoin has provided immense such gains each year, with volatility so great that a trader could have made more than a 10x/1 000 percent each year in the previous three years just by trading.

In December of 2017, the two largest global exchanges the CBOE and CME launched the derivatives for Bitcoin which allowed the traders to take benefit of leverage Bitcoin trading.

The futures then allowed the traders to take a long as well as a short position on the Bitcoin letting the traders take benefit of each and every available opportunity that grew out as a result of rising volatility.

Looking at the graph above, it can be easily seen that BTC futures was close to $7 000 at the start of the year, where they rose to $10 000 mark, fell down to $5 000 during the ongoing pandemic, beginning in March 2020.

Soon thereafter, recovery of Bitcoin started and the futures rose as well. The retracement is now close to a 100 percent from the beginning of 2020 in February and currently trades close to $9 270 for a contract.

Let us consider if there are any opportunities available.

Just looking at the above available graph, there is another possibility of Bitcoin Futures.

The moment the futures break above the $9 500 mark, the futures would be moving up towards the $10 400 mark in a matter of a few days. Since the futures work on the underlying commodity which in this case is Bitcoin itself, this means that Bitcoin is ready to provide a move as well.

The lower black line should be the stopping point for any long move, where the upper pink line noting 2020 Febs previous top as the likely target.

Having earned a technical view, I decided to go long on a 10x leverage where I enter when Bitcoin has provided me a breakout above $9 500.

I keep my target as $10 400 with a stop of $9 320. In that case, my stop-loss is $180 for the move while my target is $900 on the long move, making my Risk to Reward Ratio (RR Ratio) 1:5.

On every $1 that I have put at stake to lose on the basis of the wrong view, I can earn $5 A view that is prepared on technical basis led by experience, a defined stop-loss and moves is not gambling.

Instead, its an opportunity to trade. And the stop-loss, if taken, are the costs of doing business.

So, lets explain the above example in detail.

Lets say, I went long at $9 500 with a 20x leverage buying 1BTC contract each. So, I have now effectively exposure of 20BTC.

The money at risk that I have is 20 times the $180, making it $3 600 as the amount that I can lose. On the other hand, given that my technical view is right, on my exposure of position, I can in against make 20 x $900 = $18 000.

So, given that my RR ratio is good enough and I am making the right moves, assuming I took five trades and only one of them went right, I would still not be in a loss, if my three out of five or four out of five trades go right.

With a preview given on how to trade the contracts of Bitcoin futures, let us now speak about which platform to choose for your trading.

You need a platform which is safe, offers you a good leverage option and enough liquidity with low costs of position. For this purpose, I suggest BTCC.com.

It has options of letting you trade at a 100x leverage, with signup free bonus of $1 000 and allows you to trade nine pairs of major cryptocurrencies which include Bitcoin, Ethereum, Litecoin, EOS, Bitcoin Cash, XRP, ADA, XLM and Dash.

The signup option takes 30 seconds and the charting option that the platform provides is extremely lucrative. It also offers a customer service option and financial security, making it one of the best available options globally.

Find out how to make your first Bitcoin or crypto futures trade on BTCC here.

Disclaimer: There are risks attached to investing, trading and speculating. With hefty gains, there is always a risk of losing your money given that you are not adequately taking care of it. It is advised that you follow safety measures which could include using technical entries, stop loss(es) and targeted exits. Understanding leverage is significant. Consulting your independent financial advisor before entering into any commercial trade is highly advisable.

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Making money on Bitcoin and cryptocurrency futures - htxt.africa