I am a crypto enthusiast. I spend most of my time writing or chasing the next cool topic to write about. Lucky for me, this aligns nicely with my interests, which include: looking for patterns in the world around me, digging deep into causes and effects of things and making sense of unlikely coincidences.
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Some of the Consequences of FTX Collapse: Another Overview
Some of the Consequences of FTX Collapse: Another OverviewJohn Martin 7 min read
DIgital Euro: Overview, History, and Plans
DIgital Euro: Overview, History, and PlansJohn Martin 6 min read
The European Central Bank (ECB) may begin developing and testing the digital euro in 2023, said ECB Executive Board member Fabio Panetta, speaking at the National College of Ireland. He also said that it can take up to three years. Panetta noted that the introduction of the digital euro is aimed at strengthening the monetary sovereignty of the European Union and ensuring a reliable and stable monetary base for the creation of new payment and financial services in the era of universal digitalization. Cryptocurrencies are confidently entering our lives. The words Bitcoin , Ethereum , Tether , and "crypto exchanges" cease to be something of a secret knowledge for the chosen and become commonplace for those who want to learn to competently manage their finances. Not much time has passed since the advent of crypto — and the central banks of different countries have begun to declare a desire to create their digital currencies . The digital yuan already exists, the dollar has several analogs at once, for example, Tether — a stablecoin tied to the dollar exchange rate, and work is underway on the digital euro, which may soon bear fruit. So, what about this euro? The Answer to the Digital World People are increasingly paying in digital format, not in cash. Cash cannot be used in e-commerce, and many physical stores also prefer cashless payments. The answer to the growing preference of citizens and firms for digital payments can just be the digital euro. In the European Central Bank (ECB), according to Evelyn Witlox, head of the digital euro program, the developers see three main options for using a single digital European currency: Peer-to-peer payments enable people to make personal transfers to each other. Payments between buyer and seller in real and virtual stores. Payments in the interests of the state or between state organizations. Simply put, digital money may well serve as its analog "ancestors." Do not forget that the euro at first was also a little "virtual," because it was introduced on January 1, 1999, and used for cashless settlements. Euro banknotes and coins were presented only in January 2002, that is, more than 20 years ago. However, the EU is quite skeptical of blockchain and does not understand how technology can be used at the state level. But the global trend around digital assets is forcing the European Central Bank to keep up with galloping digitalization. However, the final decision to launch the digital euro into the masses has not yet been made. There are tests, the results of which will determine the fate of the European cryptocurrency. Amazon and Digital Euro The European Central Bank intends to cooperate with five corporations to test the single digital currency (CBT) within the European Union. The tech giant Amazon will work on a digital euro payment system for e-commerce. CaixaBank and Worldline will be responsible for prototyping P2P payments (that is, personal transfers to each other), and EPI and Nexi will work on retail payments at points of sale for goods and services. These companies selected 54 applicants from the list who also had an interest in developing a digital euro. The results of the testing, which is now being carried out, will be published in 2023. But the European Commission is inclined to think that their digital currency will fully work no earlier than 2026. And even then, only if the tests prove that the blockchain is safe and has sufficient throughput. What Is MiCA and What Role Does It Play in This Story? Markets in Crypto-Assets or abbreviated MiCA is a European bill that should regulate the crypto industry. It appeared back in 2020. It took two years to finalize it. MiCA will protect consumers from some risks associated with investing in crypto assets and help them avoid fraudulent schemes. For example, the recent depreciation of stablecoin UST showed the risks borne by stablecoin holders due to lack of regulation. This will bring more clarity to the European Union, as some member states already have national legislation on crypto assets, but so far there has not been a specific regulatory framework at the EU level. Without going deep into detail, the document is intended to become the main official use of cryptocurrencies. The downside is that with the help of MiCA, the EU authorities want to oblige all crypto exchanges to provide personal customer data, including transaction information, which, in principle, annihilates the original meaning of creating crypto — anonymity and deregulation. Already on September 1, members of the German Blockchain Association discussed the introduction of rules on cryptocurrency markets (MiCA) — the final text of regulations were published in October 2023. EU legislators agree with all the provisions of the document. The agreement was reached in June of last year. MiCA, by the way, will allow Europe to become the first region in the world where clear rules will be established regarding digital assets. The head of the cryptocurrency exchange Binance Changpeng Zhao suggests that the MiCA will be adopted worldwide as a standard of regulatory policy regarding cryptocurrencies. Although such a development, according to Zhao, may lead to a ban on stablecoins in the EU. Regulation and Emission of Digital Euro The average resident will not notice the difference, because for him it will be just numbers on the map or in an electronic wallet . As planned, the digital euro can be exchanged for a cash or non-cash euro at a rate of 1:1. But banks will have to connect to the system of the European Central Bank, which (with all likelihood) will begin to issue digital currency. The money supply will become easier to control, because you will not be able to hide the digital euro under the mattress, and the transition to other digital assets or fiat currencies can be easily limited or prohibited. In addition, if the conditional Bitcoin can be mined, the ECB will have a monopoly in this regard. If the digital euro is launched, its issue will be limited to €1.5 trillion. This was stated by Fabio Panetta, a member of the board of the European Central Bank (ECB). According to him, the EU authorities fear that consumers may transfer all their money to digital format, actually moving them to the Central Bank. This will deprive commercial banks of the funds necessary for lending to individuals and enterprises. The limited issue of the digital euro will help avoid negative consequences for the financial system and monetary policy of the EU. The digital euro system will interact with the private banking system, which means that people will be able to transfer their money from their accounts in commercial banks to their digital accounts in euros and vice versa. At the same time, the "digital money" system will save the government from the need to save banks from bankruptcy, because the money stored in the central bank will be risk-free. So far, the EU says that their digital asset should be an addition, not a replacement for the physical currency, but everything can change. Therefore, the main motivation is control. And not just control, but total control of the income and expenses of citizens. With a digital euro, money laundering will become simply impossible, because all transactions are recorded, tied to a specific person, and publicly available. But the issue of digital currency will affect the cost of the euro. The ECB does not publish information about the costs of its banknotes, but, according to the press service of the regulator for 2015, the cost of issuing euro notes is from 6 to 10 euro cents.Read more ❯
Exciting New Developments in Blockchain Technology
Exciting New Developments in Blockchain TechnologyRuth Kise 10 min read
What Is a Tilt in Cryptocurrency Trading: How to Deal with It And Avoid It?
What Is a Tilt in Cryptocurrency Trading: How to Deal with It And Avoid It?John Martin 8 min read
Understanding emotions is one of the components of success not only in trading crypto but also in life. And the problem is that many people know about the negative aspects of excessive emotionality, but continue shooting themselves in the foot. The mistake is that in a calm state, a person underestimates the harm that uncontrolled emotions can do. He does not notice the signs of getting out of the state of psychological balance. And when an emotional breakdown occurs, then it’s already time to eliminate the consequences. What Is Tilt? Tilt is a human condition in which a person is susceptible to emotions and takes rash actions. The term is often used in gaming practice. For example, in poker, a person in a state of tilt experiences disappointment and dissatisfaction with the situation, begins to choose suboptimal strategies, and loses, which ultimately leads to aggressive behavior. Tilt in the game is a state of anger caused by failure or a series of defeats. Emotions characteristic of a person in tilt: Aggression and dissatisfaction. Unwillingness to accept the outcome of the event, a sense of injustice of what is happening. Anger, rage. Mostly about others, and not themselves. A desire for revenge. Sometimes the desire to use physical violence towards both a person and an inanimate subject. Despair. Apathy. Tilt in trading crypto is a condition in which a person is in an excited emotional state and cannot or does not want to control his actions, completely being in the grip of emotions. There are two causes for tilt in trading: Negative emotions. Irritation, anger caused by failure, loss, etc. Instead of analyzing the situation, a person fixates on emotions and begins to make even more mistakes. Positive emotions. The euphoria is caused by a quick achievement of the result, a successful deal, etc. Under the influence of emotions, the trader overestimates his strength, relaxes, and takes a greater risk, hoping that he will be lucky again. There are also hidden and obvious tilts. The obvious manifests itself instantly: the transaction closed at a loss, an in its footsteps, an emotional reaction immediately arrived. Hidden tilt: every day the efficiency of trade is worse and worse, and depression comes slowly but surely. Susceptibility to tilt depends on the type of the person’s nervous system and mental state. Phlegmatics and sanguines are the least susceptible. They perceive everything that happens with indifference or a smile. Cholerics and melancholics are most susceptible to tilt. The former reacts aggressively, the latter engages in self-healing. The degree of emotional perception is also different for everyone. Someone will return to normal within a few minutes, and another person in a state of affect will be breaking plates for an hour. Why Does Tilt Occur in Trading? Causes of tilt: Psychological causes. Related to the internal, emotional state of the trader, his character. For example, a tendency to experiment or gamble, a splash of emotions, fatigue, self-doubt, etc. Market causes. Do not depend on the character and the state of the nervous system of the trader. Trading situations that "do not go according to plan" and knock the trader out of track. Consider them in more detail. Treating Trading as a Gamble A person treats trading as a game: Not analyzing the situation, takes rash action. Relies on luck. Does not use technical and fundamental analysis. Relies on someone else's opinion. Does not have a clear plan of action. Does not use risk management rules. In other words, it is guided by emotion, not reason. This situation falls under the definition of tilt and its consequence is loss and negative emotions. On the other hand, such a perception of trading is not always bad — the question lies in the trader's purpose. If a person has the goal of enjoying the game process itself, regardless of its result, then treating trading as a game is permissible. The main thing is that emotions stay positive. But you can forget about earnings in this case. Fear of Losing a Deposit Uncertainty and, as a result, fear of loss. Closed circle: there are all the prerequisites for opening a deal, but an internal voice says: "What if I make a mistake?" The signal remains unrealized, the price goes towards the forecast, and the trader begins to torment his conscience for an unrealized chance. Desire to Compensate for Lost Profits Or compensate for the loss. The desire to achieve the goal at any cost leads to the fact that a person begins to perform rash actions on emotions. And rash actions are like opening deals, guided by the theory of probability. Lucky or not — 50/50. Poor Psychological State Caused by External Factors Often, along with tilt, there is another negative condition — FOMO, loss of profit syndrome. It is common for a person to compare himself with others. And as a result of the comparison, there is an illusion that others are doing better — they are more successful, they have better results, greater income, etc. And instead of concentrating directly on trading, a person begins to engage in self-analysis. He begins to doubt the correctness of his actions (because others are doing better!), which reduces his self-esteem, and internal uncertainty appears. Poor Physical Health Feeling distracted: the problem of concentration can be the result of lack of sleep, or illness. A person begins to make mistakes due to inattention, which leads to a loss of money and time. The consequence is negative emotions. And there are several other reasons for tilt in trading crypto as well: Market injustice. Crypto whales sometimes manipulate the market as they need it. But the trader is the one who takes losses from this. When the obvious trend suddenly unfolds and turns on its head, there is an insurmountable desire to launch something into the monitor. Unwillingness or inability to lose. Defeat is common not only in trading. But the question is how to perceive it. Someone will work on mistakes, and someone will be overwhelmed by emotions. Error. And the more stupid it is, the more offensive it is to realize. The most offensive mistake is a mistake by inattention. In second place is the refusal to open a deal at a signal that could be accurate. The easiest way to move on is to accept a mistake and try not to think about it. But this is easy only in words. Despair. "Yes, let it all burn" — a censored version of this emotional state of tilt. It is preceded by unfulfilled goals, unrealized opportunities, and loss. At some point, the trader gives up, ceases to think (because, in his opinion, it is still irrelevant), begins to make spontaneous decisions, completely loses all the money, and decides not to return to trading. All these reasons ultimately lead to the fact that a person makes decisions under the influence of emotions. Most often negative. But in trading, the cold sober calculation is important. Tilt is Dangerous! What Should the Trader Be Afraid Of? The more logic and sequential actions in trade, the more effective it is. But a person cannot live completely without emotions: interest in trading, and joy from achieving the goal are also emotions. The question is what is the degree of emotionality and where is the critical level after which tilt begins — decision-making under the influence of emotions? Statistics show that traders aged 20 to 30 years and over 50 are the most emotional. This is due to the fact that the middle generation, thanks to experience, is cooler and knows how to manage their emotions. Young people still have "growing pains," and the older generation loses its grip. The effects of tilt, like the causes, can be divided into two groups. Market Effects Making easily avoidable errors: early or late opening of transactions, incorrectly calculated resistance/support levels, errors in calculating foot lengths, ignoring fundamental analysis, etc. The reason may be both aggression and euphoria from the result. Violation of risk management rules. Over-sitting, early closing, increased risk per deal. A habit of emotional reaction to any unusual situation. Most often, emotions get out of control after unprofitable transactions. Instead of analyzing errors, the trader begins to doubt the correctness of his actions and begins to randomly open transactions in opposite directions. Chaotic actions run counter to the algorithm of the trading system. And after a while, the trader loses control of the situation. Possible consequences: loss or lost profit. Psychological Effects Stress, oppressed state. Stress is also transferred to the real world — a person ceases to see positive moments and rejoice in life. Underestimated self-esteem. A person loses confidence in himself and his abilities, productivity, and desire to achieve goals are reduced. Pessimism. Uncertainty in your powers. Opening a new deal, the trader is sure in advance of his mistake. If in the first case, the worst thing that can happen is the loss of money within the amount of the deposit, then in the second case tilt can lead to problems in personal life and health problems. Sometimes tilt manifests itself in positive emotions. In moderate numbers, they are useful — a good mood adds optimism and pushes to set new goals. But euphoria from success can cause harm. It is believed that euphoria is the point of maximum risk. Conversely, a state of despondency and depression is the best point for a new start. The idea is that sooner or later everyone falls, but only spirit-strong people have the strength to rise again. In Conclusion: Restoration The best advice that can be given to those who have ever experienced tilt (and this is most traders) is that being vigilant about their feelings and actions can be key to preventing its consequences. Once captured by a tilt, it is quite difficult to get out of it, so identifying its signs and possessing a mechanism to block its consequences can give you incredible help. It can be a break from working at a computer, breathing exercises, short intense physical charging, or setting a hard daily loss limit. However, frankly speaking, it is easier to try to avoid tilt in principle. This involves identifying your susceptibility to tilt at a particular point in time, identifying an option for a trade scenario that can serve as its trigger, as well as being vigilant if triggers are triggered, and tracking the emotional signs of the tilt state approach. Preventing tilt is much easier if you are ready for it than then trying to get out of it.Read more ❯
SwapSpace is Happy to Announce the Launch of the Invaders Club!
SwapSpace is Happy to Announce the Launch of the Invaders Club!June Katz 1 min read
Hi guys! We believe that the bear market is not a bad thing but instead is a perfect opportunity to prepare for the inevitable bull market. After all, when you’re just getting into an asset at its peak, you’re already late. With that thought, we’ve decided that now is the best time to launch our very own SwapSpace Invaders Club! We’re minting 9999 genesis tokens that will serve as a foundation for the Invaders Club. And right now, you can get your tokens for free after completing any exchange on SwapSpace — as simple as that! Or, for something even more special, watch our social media and sign up for airdrops. You can find out all about getting those tokens on the Invaders Club page . In the next stages, we’ll expand the functionality of your Invaders, giving you: Reveal & Customization Loyalty Features We aim to make your Invaders more than NFTs : they’ll have all the NFT features that we know and love — but the holders will also be able to get cashbacks and other pleasant surprises at SwapSpace, depending on their token configuration. So, what are you waiting for? Join our community and stay tuned — in other words, get in early while it’s still easy!Read more ❯