Circle Becomes First Stablecoin Issuer to Meet Canada’s New Listing Rules
Circle, the issuer of the USD Coin (USDC) stablecoin, has announced its approval under Canada’s new regulatory framework for digital assets. The move establishes Circle as the first stablecoin issuer to meet the country’s updated crypto asset listing rules. This regulatory milestone allows USDC to enter the Canadian market under stricter compliance standards introduced by Canadian securities regulators earlier this year. Additionally, the USDC would remain valid in Canada even after the deadline for delisting non-compliant stablecoins elapses on December 31, 2024. We are the first stablecoin issuer to meet new Canadian listing rules, facilitating $USDC's continued availability on registered crypto asset trading platforms in the Canadian market. Read more about this milestone.https://t.co/0MdTxgfHIM — Circle (@circle) December 4, 2024 It is worth noting that the strict regulations help to enhance consumer protection and ensure financial transparency amid rising cryptocurrency adoption. Notably, the rule entailed comprehensive inputs from the Ontario Securities Commission (OSC) and the Canadian Securities Administrators (CSA) for Value-Referenced Crypto Assets (VRCAs). According to Circle, this approval positions United States dollar-backed USDC as a legally compliant and secure stablecoin option for Canadian businesses and consumers. The development also aligns with Canada’s growing focus on regulating digital assets without stifling innovation. “The availability of USDC in Canada underscores Circle’s compliance with emerging global regulations and marks another step forward in fostering a transparent and accountable digital financial ecosystem,” Dante Disparte, Chief Strategy Officer and Head of Global Policy at Circle stated. Canadian Compliance Standards Tightened for Stablecoin Issuers Under the new rules, stablecoin issuers operating in Canada must adhere to rigorous standards, including detailed disclosure requirements and strict oversight of financial reserves. These measures aim to mitigate risks associated with unregulated cryptocurrencie. Industry experts view this approval as a potential turning point for Canada’s digital asset ecosystem, paving the way for broader institutional and retail adoption of stablecoins. Circle Expands Regulatory Reach The approval marks another significant step in Circle’s efforts to expand its regulatory footprint. The company has actively pursued compliance initiatives across multiple jurisdictions, including the United States and Europe, as part of its strategy to align with evolving global standards. In Canada, the stablecoin sector has faced increased scrutiny following global concerns over cryptocurrency volatility and its impact on traditional financial systems. Regulators have sought to differentiate between stablecoins backed by real-world assets and more speculative digital currencies. Circle’s USDC, a dollar-backed stablecoin, has been positioned as a low-risk alternative within the crypto market, particularly for payments and cross-border transactions.
How to Make Money with Bitcoin for Beginners
Bitcoin has been one of the top-performing assets in recent years, outpacing traditional investments like stocks and bonds. But how do you, as a beginner, tap into this opportunity? Whether you’re interested in short-term trading or long-term investing, understanding how to make money with Bitcoin can help you open potential financial growth. This article will examine beginner-friendly strategies to help you get started. Read Also: The 10 Best Bitcoin ETFs to Buy Right Now Key Takeaways Buy and Hold Bitcoin (Long-term Investment) One of the easiest ways to make money with Bitcoin is by buying it and holding it for a long time. This method is called “HODLing,” a term in the Bitcoin community that stands for “Hold On for Dear Life.” The idea behind this strategy is to buy Bitcoin and hold onto it, hoping its value will increase over time. How Buying and Holding of Bitcoin Works Buying and holding Bitcoin is a straightforward long-term investment strategy, ideal for beginners looking to profit from Bitcoin’s potential value growth. To start, you need to purchase Bitcoin through a cryptocurrency exchange, where you can deposit funds from your bank account or credit card to buy Bitcoin. After purchase, it’s important to store your Bitcoin securely in a digital wallet, either a hot wallet (online) for easier access or a cold wallet (offline) for better security, such as a hardware wallet like Ledger or Trezor. Cold wallets are recommended for long-term holding due to their enhanced protection against hacks. Once securely stored, the strategy is to hold onto your Bitcoin and wait for its value to increase over time, driven by factors such as increased demand, scarcity, and broader adoption. For example, if you buy 1 Bitcoin at $10,000 and its price rises to $20,000, you could sell it for a $10,000 profit. Bitcoin Trading (Short-term Investment) Source: Daily Trust If you’re looking for quicker returns and are willing to be more active, Bitcoin trading might be a good option for you. Bitcoin trading involves buying and selling Bitcoin over shorter periods to profit from its price changes. This strategy requires regular monitoring of the market and a good understanding of how Bitcoin’s price fluctuates. Types of Trading There are different styles of Bitcoin trading that you can choose from, depending on how much time and effort you want to invest. Here are the most common types: Day Trading In day trading, you buy and sell Bitcoin within the same day. The goal is to take advantage of short-term price movements. Day traders closely monitor the market and make several trades throughout the day. Day trading can be highly profitable but also risky. Experienced day traders may earn anywhere from 1% to 3% of their capital per day, but this requires skill, timing, and a solid strategy. As a beginner, you may experience losses while learning how to manage trades effectively. Swing Trading Source: Strafx Swing trading involves holding Bitcoin for days, weeks, or even a few months until its price reaches a target you have set. Unlike day trading, swing traders are less concerned with daily price changes and focus on medium-term trends. Swing traders might expect monthly returns of around 10% to 30%, depending on how well they predict price movements and market trends. Although there’s less active trading than day trading, it still requires good market analysis. Risk is moderate compared to day trading. Scalping Source: Cryptonews.net Scalping is a very fast-paced style of trading where you make small, quick profits by entering and exiting trades multiple times in a day. Scalpers usually rely on small price movements and make many trades to accumulate profits. Scalpers aim to make very small profits on each trade, typically targeting gains of 0.1% to 0.5% per trade. With dozens or hundreds of trades per day, profits can add up quickly. However, it requires high attention to detail and constant monitoring of the market. Scalpers might expect a daily return between 1% and 2%, but the risks of losing in volatile conditions are high. How Bitcoin Trading Works Bitcoin trading can be an active way to make money, but it requires close attention to market trends. Buy Low, Sell High The basic principle of Bitcoin trading is to buy when the price is low and sell when the price is high. To do this, you need to monitor the market closely and look for opportunities to buy Bitcoin at a lower price, then sell it when the price increases. For instance, you buy Bitcoin when it drops to $27,000. After a few days, the price rises to $29,000, and you decide to sell. Your profit is $2,000. Nathalie Llanto, Manager at Shopthemer, cautions against the common mistakes of selling during price drops or chasing trendy coins, which often fail to deliver on their promises. To identify good opportunities with manageable risk, she recommends sticking to well-known cryptocurrencies like Bitcoin that have stood the test of time. “It’s better to research and stay patient than to jump into risky bets,” Nathalie explains. She believes that in Bitcoin, careful planning and a solid understanding will yield better results than hasty decisions. Use a Trading Platform To trade Bitcoin, you’ll need to use a reliable trading platform that allows you to buy and sell easily. Some popular platforms for Bitcoin trading are: These platforms provide tools like charts, price alerts, and order types (e.g., limit orders, stop-loss orders) to help you make informed trading decisions. Bitcoin Mining Source: Bankrate Bitcoin mining is the process of solving complex mathematical problems to confirm Bitcoin transactions on the blockchain. In return for their efforts, miners are rewarded with Bitcoin. However, over the years, Bitcoin mining has become a highly competitive and resource-intensive activity. This section will explain how Bitcoin mining works and what you need to get started. How Bitcoin Mining Works Bitcoin mining allows individuals to earn rewards, but it requires substantial computing power and energy. Here’s how the process works: 1. Invest in Mining Equipment
A Full Guide to Fibonacci Extensions for Trading Strategies
Being a successful trader doesn’t just mean earning substantial profits; more significantly, it grants you freedom. You have the flexibility to do what you want when you want, and that kind of freedom is truly invaluable. In that case, one habit you can develop to get ahead is understanding the appropriate tools you can use to make gains. One of such tools is known as the Fibonacci extensions. This is a powerful tool used by traders to identify potential levels of support and resistance, helping them determine target prices for their trades. With this, traders can forecast price movements beyond the standard 100% retracement level. In this article, we’ll explore how Fibonacci extensions work, their application in trading, and how traders can use them to improve their strategies. Recommended reading: How to Use Fibonacci Retracement in Cryptocurrency Trading Key Takeaways What is Fibonacci Extension? Fibonacci Extensions are derived from the Fibonacci sequence, a mathematical series in which each number is the sum of the two preceding numbers (e.g., 0, 1, 1, 2, 3, 5, 8, 13, and so forth). This technical analysis tool is used in financial markets, such as crypto or forex trading, to pinpoint potential price levels where an asset’s price might exceed its previous swing high or low. A swing high is a peak rise in the price of an asset, identified through technical indicators, while a swing low refers to a price lowest slump. Technical traders often use these points to determine entry or exit positions. Therefore, when Fibonacci Extensions are applied to a chart, traders can project future price levels that may serve as targets or resistance points (the highest point a price reaches before falling) for their assets. Note that a price swing high or swing low can be subjective to each trader. In that case, to determine the price levels, traders only have to extend the Fibonacci ratios beyond the preferred last significant swing high or low in the price movement. Fibonacci Retracement vs Fibonacci Extension Source: Pinterest Fibonacci’s studies are grounded in the mathematical concepts introduced by Italian mathematician Leonardo Fibonacci. These studies use the Fibonacci sequence, a series of numbers where each number is the sum of the previous two, starting with 0 and 1: 0, 1, 1, 2, 3, 5, 8, 13, 21, and so forth. In trading, the Fibonacci sequence gives rise to certain key ratios — 23.6%, 38.2%, 50%, 61.8%, and 100% and these Fibonacci levels are used to pinpoint potential areas of support, resistance, and zones of price retracement or extension. Many traders believe that these levels serve as key market turning points, offering valuable insights for making informed decisions. Although both Fibonacci retracement and Fibonacci extensions are part of Fibonacci analysis, they serve distinct functions. Fibonacci retracement is used to identify potential price pullback levels within a prevailing trend. Traders rely on retracement levels, such as 38.2%, 50%, and 61.8%, to assess where the price might temporarily reverse before resuming the overall trend. These levels are plotted by identifying the swing high and low on a chart, with the retracement levels drawn between them. However, unlike Fibonacci retracements, which focus on price pullbacks, Fibonacci extensions forecast how far a price may go beyond its current trend, identifying likely points of resistance or support in both bullish and bearish markets. The most commonly used Fibonacci extension levels include 127.2%, 161.8%, 200%, 261.8%, and 423.6%. These percentages represent the distance that the price might extend beyond a significant swing high or low. Therefore, when traders apply Fibonacci Extensions to a chart, they can project potential future price levels that may serve as targets or resistance zones. The Math Behind Fibonacci Extensions Source: Pinterest The mathematical foundation of Fibonacci extensions lies in the golden ratio, approximately 1.618. This ratio is derived from dividing consecutive Fibonacci numbers, and it’s found in many natural phenomena, such as spiral galaxies, plant growth, and ocean waves. In trading, the 161.8% extension level, known as the “golden extension,” is frequently regarded as a key target price. For example, if a stock price rises from $100 to $150 (a $50 move), a 161.8% Fibonacci extension from the low of $100 would predict a potential price target of $200 ($50 x 1.618 = $80, added to the $150 high). Fibonacci Extensions are generally calculated using three primary Fibonacci ratios: 61.8%, 100%, and 161.8%. These ratios are derived from the Fibonacci sequence and are often referred to as Fibonacci extension levels. To calculate Fibonacci Extensions, traders follow these steps: The resulting levels serve as potential price targets or areas where traders might consider taking profits or entering new positions. The 61.8% level is commonly viewed as a critical support or resistance zone, while the 100% and 161.8% levels indicate possible extensions beyond the prior price swing. The table below shows how Fibonacci Extensions can apply to a price chart to help you understand the discussion above better: Price Level Fibonacci Ratio Calculation Swing Low 0% – Swing High 100% – Extension Level 1 61.8% (Swing Range) x 0.618 Extension Level 2 100% (Swing Range) x 1.000 Extension Level 3 161.8% (Swing Range) x 1.618 How Fibonacci Extensions are Used in Trading One popular saying about trading is the “Rule of 90,” which indicates that 90% of new traders lose 90% of their initial capital within the first 90 days of starting their trading journey. However, you can be different from the norm by mastering the use of appropriate technical indicators such as Finona ci extensions. Here are several common Fibonacci extension strategies that traders utilize: Trend Continuation and Trend Reversal Strategy Source: Pinterest Traders can leverage Fibonacci extensions to identify potential price targets within a trend and place profit-taking orders accordingly. For instance, in an upward trend, a trader might use Fibonacci extensions to pinpoint possible resistance levels beyond traditional retracement levels and set profit-taking orders at those points. On the other hand, Fibonacci extensions can also help identify potential support or resistance areas for a
Cryptocurrency Wyckoff Method: An In-depth Market Analysis
In October 2023, @ohiain tweeted “The Wyckoff Method is like having a map for the markets, which helps you decode the hidden intentions of big players and gain a competitive edge! Developed over nearly 100 years ago, the Wyckoff method is a well-known trading strategy Originally created for the traditional markets. It is a way of helping traders understand the movement of the market by recognizing that there are repeatable patterns in changes to price. These patterns help you make better decisions about when to buy and sell. In this article, we will discuss how the Wyckoff Method functions in the crypto market, which then should bring it within reach to anyone with a platform to execute effectively. Read Also: A Comprehensive Guide to Harmonic Patterns in Crypto Trading Key takeaway What is the Wyckoff Method? Source: warrior trading The Wyckoff Method is a well-known trading strategy that outlines key elements in price trend development marked by periods of accumulation and distribution. It was developed to analyze stocks, but today, many cryptocurrency traders use it because of its focus on market behavior. By studying the patterns in buying and selling, the Wyckoff Method can offer insights into the best times to buy or sell in any market. It allows traders the opportunity to trade less and earn more. The Wyckoff Method’s Origins To truly appreciate the Wyckoff Method, it’s important to understand where it comes from. This method dates back to the early 20th century and was designed to help traders better understand the behavior of big market players, such as banks and large investors. The idea is that if you can track their moves, you can follow along and make better trading decisions. The Wyckoff Method is named after Richard Wyckoff, a financial expert who spent his career analyzing market behavior. He believed that by closely watching price movements, volume changes, and overall market trends, traders could figure out when big players were entering or leaving the market. His method became a roadmap for understanding how the market works. Transition of the Wyckoff Method from Stock Markets to Cryptocurrency The Wyckoff Method was first used in stock markets, it found a new home in cryptocurrency trading. This transition happened because both markets share similar traits, like price swings, high volatility, and large market players influencing price movements. In many ways, crypto markets resemble the early stock markets that Wyckoff studied, making his approach still relevant today. Why the Wyckoff Method is Popular in Cryptocurrency Trading The Wyckoff Method has gained popularity in the cryptocurrency market because of its ability to analyze market cycles. Crypto traders can use the method to identify key market phases, such as accumulation, markup, distribution, and markdown. These phases help traders understand when it’s a good time to enter or exit a trade, especially in a market that can change quickly. Comparing Traditional Markets to Crypto Markets One reason the Wyckoff Method works well for cryptocurrencies is that traditional markets, like stocks, and crypto markets share some common characteristics. Both markets go through periods of growth and decline, and both are influenced by large players who can push prices up or down. However, cryptocurrency markets are more volatile, meaning they experience bigger price swings in a shorter time frame. Advantages of Using the Wyckoff Method in Volatile Crypto Markets One of the key benefits of the Wyckoff Method in the cryptocurrency market is that it helps traders make sense of rapid price changes. Having a method to spot trends and understand what big market players are doing is invaluable in a market such as Crypto where prices are constantly changing. It can help traders reduce risk and increase their chances of making profitable trades. Key Principles of the Wyckoff Method Source: Olymp trade blog The Wyckoff Method, developed by Richard Wyckoff in the early 20th century, offers a structured way to analyze financial markets. This method is widely applied in cryptocurrency markets today because it provides valuable insights into price movements and trends. Below are the key principles of this method and how they apply to cryptocurrencies. The Five-Step Approach to Market Analysis The Wyckoff Method can be broken down into five practical steps, each designed to help you understand market trends and make better decisions. Determining the Market’s Trend (Supply and Demand) In any market, including cryptocurrency, price movements are driven by supply and demand. By studying these forces, traders can determine if the market is in an uptrend (more demand) or a downtrend (more supply). If the demand for a cryptocurrency exceeds its supply, prices rise. On the other hand, if supply exceeds demand, prices fall. Understanding these shifts helps you anticipate future price moves. Selecting Strongest Cryptocurrencies Based on Market Health Once the market trend is identified, the next step is to choose the strongest cryptocurrencies to trade. A healthy market is marked by consistent upward price movement, which usually indicates strong demand. By selecting cryptocurrencies that perform well in a healthy market, you can increase their chances of success. Identifying Market Leaders and Laggers Market leaders are cryptocurrencies that tend to move before the rest of the market, setting trends. On the contrary, laggers follow the trends set by market leaders but at a slower pace. Identifying leaders and laggers is crucial for timing trades. Investing in leaders during a strong market often leads to higher returns, while recognizing laggers can help avoid potential losses. Estimating Cryptocurrency’s Future Potential By analyzing past price movements and market conditions, you can estimate where a cryptocurrency might be headed in the future. This step often involves studying charts, patterns, and historical data to predict whether the price will continue rising or start falling. Timing Market Entry and Exit The last step in the Wyckoff approach is deciding when to enter or exit the market. Timing is crucial in trading, and the Wyckoff Method helps traders spot ideal moments to buy (during accumulation) or sell (during distribution). Accumulation happens when larger players buy assets
