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Will Bitcoin Remain a Dominant Cryptocurrency?

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Bitcoin Remain dominant

A Forecast for the Next Decade of Crypto

Cryptocurrency is young. Thursday — October 31, 2018 — will mark its first anniversary, 10 years since Satoshi Nakamoto’s fateful email. It wasn’t until January 2009 that the first Bitcoin block had been mined, and March 2010 that Bitcoin was first assigned a monetary value. Simple math shows that the anniversaries of those dates are still in the future.

Yet it’s time to think about what this future will be like. Bitcoin has dominated the whole industry since its birth, dictating the trends on the market. However, now Ripple, Bitcoin Cash, and Ethereum are challenging the king. It’s too early to say, but we might be heading towards a more competitive cryptocurrency market.

In this article we will:

  • Explain why Bitcoin was a dominant force on the market;
  • Review the significant alternative cryptocurrencies and their impact;
  • Predict the next 10 years of crypto, based on the current data.

Why Bitcoin Holds The Market Hostage

Satoshi Nakamoto was not the first to propose the idea of a privacy-focused value transaction system. He was standing on the shoulders of David Chaum, Douglas Jackson and Barry Dowey, Adam Back, as well as many other cypherpunk idealists.

And yet, the general public remembers only Nakamoto and Bitcoin. The absolute majority of the newcomers to crypto purchases Bitcoin and ignores the other currencies. This only increases the importance and influence of Bitcoin and leads more investors towards it.

According to CoinMarketCap, right now Bitcoin is claiming mind-boggling 52% of the total market capitalisation. Ethereum, which led to an ICO craze of late 2017, has less than 10%. Ripple has less than 9%. And it’s not a good thing. Compare these three charts:

Bitcoin Chart

A Bitcoin capitalisation-over-time chart. Note the shape of the graph starting from 2017.

Market Cap

A cryptocurrency market capitalisation-over-time chart. Note the similar shape of the graph.

Market Cap Chart

A capitalisation-over-time chart with Bitcoin removed. The shape of the graph is exactly the same.

The first two charts should be similar — after all, Bitcoin dominates the market. However, the last chart proves that Bitcoin has a significant influence on the value of the other currencies too. This situation is not healthy for the economy and makes the altcoins hostages to the Bitcoin.

Imagine if Apple had that much clout on the stock market. Imagine that everyone’s stock would rise and fall in value according to Apple’s decisions, news, and press releases. This situation would crush the businesses worldwide — but it will never happen. Apple’s leadership is constantly challenged by other companies like Amazon, Microsoft, and Alphabet. In fact, Amazon might take over the next quarter, if the reports are accurate.

And yet, nothing even remotely similar ever happened on the cryptocurrency market. Which begs a question — will the next 10 years of cryptocurrency be equally dominated by Bitcoin?

What Can Challenge Bitcoin?

Bitcoin has 2070 competitors. However, even combined, they do not represent a proper competition. Take a look at the combined capitalisation-over-time chart:

Market Cap

However, the situation is slowly getting better. While back in 2013 Bitcoin controlled almost 90% of the market, it is “only” 52% right now. Moreover, some of the currencies begin to ignore the trends set by Bitcoin, becoming more and more independent. Let’s review three of those currencies in more detail.

Ethereum (ETH)

Ethereum, released in 2015, was the first altcoin to register in the public mind. Just like Bitcoin, it wasn’t the first overall — LiteCoin has been around since 2011. However, Ethereum offered something unique — smart contracts for everyone with minimal effort.

What followed was an ICO craze that propelled Ethereum far beyond the initial expectations. You can see the exact moment this happened on the chart above. It’s marked as Jul ‘17 and represents the only moment when Bitcoin’s dominance was threatened.

Unfortunately for the ETH holders, the ICO bubble burst in late 2017. Right now Ethereum is barely trucking on, continually losing the market volume and capitalisation. However, Vitalik Buterin, the founder of the Ether project, thinks that a comeback is more than possible.

Ripple (XRP)

Ripple is not a cryptocurrency in the narrow sense of the word. It is centralized and not really that transparent. However, it is still a private and a secure digital payment network that is based on a blockchain, so most cryptocurrency enthusiasts let it slide. Mainly since it now controls almost 9% of the market capitalization.

The best feature of Ripple is its ease of use. Due to a highly efficient system, Ripple allows for fast transactions with a standard fee of 0.00001 XRP. As a reference, Bitcoin’s standard fee on October 29 was 1356 Satoshi or 0.19050295 XRP.

Such accessibility led to the creation of multiple gateways — official or semi-official exchange points between Ripple and other currencies, both fiat and crypto. Right now, Ripple is not only a transaction network, but also a favourite medium for transactions made in different currencies.

XRP took a couple of hits along the way due to controversial management decisions and the lack of trust from the cryptocurrency community. However, right now it is feeling better than ever and is, for the first time, ready to challenge Ethereum.

Bitcoin Cash (BCH)

Bitcoin Cash came to be due to a schism between Bitcoin Core developers. One group wanted to increase the size of a block in the chain. Others insisted that the issues with the transaction cost should be solved with less intrusive methods. In 2017, the “rogue” developers split and created a new currency — identical to Bitcoin, but with larger block size.

Despite controlling almost 5% of the cryptocurrency market capitalisation, Bitcoin Cash does not have great prospects. In 2018 the mainline Bitcoin introduced a Lightning Network, which is a different, yet a more conventional solution to the transaction cost issues. Since then, BCH is a just another altcoin, although a particularly popular one.

What Will The Next Decade of Crypto Look Like

The world of cryptocurrency changes daily, so making any kind of a forecast is impossible. However, some recent trends promise a better, more healthy tomorrow.

We reached out to Igor Afa, a financial analyst at Forex broker JustForex, and asked to share his vision of the next cryptocurrency decade. Here are his points:

  • Bitcoin will remain a dominant currency, yet it will lose some market value to its competitors.
  • Ripple and Ethereum will grow and start challenging Bitcoin’s dominance. Neither will come as close as Ethereum in June 2017.
  • Bitcoin Cash will not advance from its positions, but likely won’t fade away either. A large number of users acquired during the split will keep it afloat.
  • Should Tether, Petro and other stablecoins succeed, they will take over a niche market segment.

Of course, this doesn’t take into account things that are impossible to predict. For example, cryptocurrencies might be banned. Or Vitalik Buterin will take that job at Google and run Ethereum into the ground. Or maybe an entirely new cryptocurrency will appear, with a completely unique offering, and take over the market.

Overall, the market will become a little healthier. It still won’t be anywhere near normal, but at the very least we won’t have a whole market living and dying on a single entity. Which, all things considered, is already a huge win.

Disclaimer: Readers should do their own due diligence before taking any actions related to any company, product or service mentioned in this article. BitcoinAfrica.io is not responsible, directly or indirectly, for any loss or damage caused by or in connection with the use of or reliance on any content, product or service mentioned in this sponsored post.

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How to Trade Double Tops And Double Bottoms
 With Up to 79% Winning Percentage

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Double Tops

Many of my clients acknowledge that my FREE double top and bottom indicator is a very good indicator for intraday trading across various markets. This includes forex, stock indices, commodities and futures.

But there is a simple trick or a method that you can apply to greatly improve the performance of this Double Top/Bottom indicator. On average, my indicator currently gives a 57%-win rate. But using the methods I outline below, you can extend your wining rate of trades to as high as 79%.

This is no marketing hype but mere common sense and understanding of how the financial markets work. So, read on to know more.

As I explain this indicator, you will see why it can give you up to 79% winning trades using some simple methods.

But before we go into the details of how to use the double top/bottom indicator, I want you to understand the concept before you start using this great tool.

The reason is that, when you understand the concept that I teach, you can use this indicator to dramatically improve your trading performance. In fact, you do not need to stick to the four methods that I outline here.

You can very well experiment on your find and something that is unique to you and works for you to improve your trading.

Up to 79% winning trades with the Free Double Top/Bottom Indicator:

The double top and double bottom indicator is a simple yet robust trading indicator. It is available free of cost and you can download it to see how well it captures the double top and double bottom patterns in the market.

Forex chart

By just following my advice and reading below, you can improve your results by up to 22% with this indicator.

A simple way to understand what I’m about to teach you is by this example.

If you want to cross a street with heavy traffic and not get hit by a vehicle, then you need to be patient until you have a high probability to get to the other side safely. My trading concept is no different to this.

You already know how to cross the street. What I will teach you is when you should cross the street safely.

This is the same philosophy in my trading.

You should only trade those signals that give you a high probability of winning. In the rest of this article, you will learn how to do this.

The 1 + 1 = 3 Effect

chart

Yes, 1 + 1 is not three. But in trading, you can have the effect of 1 + 1 = 3.

This is because when you combine two edges rather than one, your trading performance will simply skyrocket. This simple tweak can improve your risk-reward ratio tremendously.

Of course, you have to put in some effort on your end as well.

The 1+1 =3 effect is the very concept behind increasing your winning percentage to up to 79%.

In my Free Telegram group, I select only those double top and bottom signals from the M30 and H1 time frame if they have an edge. How do we find this edge, you ask?

We look to the bigger time frame such as the H4 and D1 which will enable use to edge to our advantage. We combine the larger and smaller time frame charts to get this envious edge in the market.

M30/H1 Signal + H4/D1 Edge = 3 Times Better Trading!

Yes! As you can see above, we use the larger time frame charts to give us the edge to trade from the smaller time frame chart. There are of course different signals that you can trade. This combination is what I will teach you on how to improve your winning performance.

A Mechanical Winning Percentage of 57%

If you are thinking where I got the above number from, then below is an explanation. It is not made up, but rather an enthusiastic member of my group stumbled upon this when researching the winning probability of the Double Top/Bottom indicator.

Recently, a member of my Telegram group analyzed 182 signals that were sent to the community during a span of the past 10 months.

The signal was based on the double top and bottom indicator which also gave an exact entry, target and stop price level. The risk or the distance between the entry and the stop loss level had a ratio of one. In other words, the risk/reward ratio was 1:1.

A profitable trade was identified as followed for the purpose of this analysis:

  • If price moved from the entry price with at least one time the risk into profit, then this was a winning trade
  • Thus, a risk/reward ratio of 1:1 was used in this analysis.

In the next screenshot, you can see the mechanical signals from the Free double top and bottom indicator. This produced 57% of winning trades out of 182 signals over 10 months.

The 57% of winning trades is already outstanding for a mechanical trading system. Most would agree!

A mechanical trading system can be compared to a set of rules for a blind and a deaf person who wants to cross the street. They can’t hear or see the street. They only walk to the other side.

A mechanical trading system is a type of a tool that will ensure that the blind and deaf person crosses the street safely simply by following the rules.

The next chart below is a screenshot from the analysis that was done.

The conclusion of the study was that the free double top and bottom indicator had a 57%-win ratio which reached the initial profit level which was the same as the risk.

Chart

But you can greatly improve the win ratio by just using common sense 🙂

Increase your win rate to 79% with applied concepts

If you apply the concepts that I will teach you, then you can improve the win ratio from 57% to 79%. I will show you how you can use simple logic to achieve this. It is as simple as waiting for the traffic to allow you to cross the street.

The member of my Telegram group also conducted this analysis to see the improvement in the performance.

I will teach multiple strategies on how to select the best double top or bottom trading signals. By using this concept, the strategy quickly improved to 79%-win rate.

forex 1

forex 2

How is this performance increased possible? Read further! You can pick and choose from any of the concepts that I will explain below. It is best that you find one concept from the below which you are comfortable with and keep practicing it.

Strategies to select high probability trading signals!

Just like there are many ways to cross a street, I will also show you the different strategies you can use to trade only the high probability setups. I will explain these multiple strategies very briefly in this article, so you can get an understanding.

You do not have to use all the strategies mentioned. Just pick one that you line and you will automatically see an increase in your trading performance with a factor of 3!

Here are the strategies we use to get that winning edge:

Strategy #1: H4 Divergence for M30/H1 signals

Strategy #2: Trading signals directly at the trend line

Strategy #3: Trading signals when a trend line is broken

Strategy #4: M30/H1 Signals After Steeper Trend Lines

Strategy #1: H4 Divergence for M30/H1 signals

The first strategy is making use of divergence on the H4 chart to trade the double bottom and top pattern on the 30-minute or 1-hour chart.

The next screenshot gives an example of an effective trading set up. This is when a double top or a double bottom pattern is formed on the smaller time frame chart such as the M30 or H1 time frame.

We trade this pattern only when there is a MACD divergence on the H4 chart.

In the article, you will come across divergence analysis of over 34 instruments on the H4 time frame.

The screenshot shows how a double bottom can be traded within the bullish divergence of a MACD on the H4 chart. It is as simple as that!

forex 9

The next chart shows a double top pattern that is formed within a bearish MACD divergence on the H4 chart.

forex 8

Strategy #2: Trading signals directly at the trend line

A trend line is probably the most important tool you can use to gauge the trend of an instrument. Double top and double bottom patterns that form directly at the trend line and in the direction of the trend can greatly improve your probability of winning trades.

This is because the trend from the larger time frame carries the price away from the entry point as you use the smaller time frame to pinpoint the trade entry with precision.

We start with drawing trend lines on the H4 or the D1 chart time frames. This becomes your major reference point.

The chart below illustrates a double bottom pattern that appears directly near the trend line.

forex 7

The next screenshot below shows a bearish double top pattern formed near the falling trend line.

forex 6

Strategy #3: Trading signals when a trend line is broken

The next strategy is using the trading signals when a trend line is broken. Finding a double top or a double bottom pattern after a trend is broken is a great way to picking successful or high probability trades.

Finding the double top and bottom pattern after a trend line break can be compared to a football that is held under water. You know that the football wants to pop up above the water line. It is the same case with this strategy.

You can expect price to rapidly rise after the double top or bottom is formed when a trend line is broken. Price action is quite volatile here and this set up can give big results very quickly.

forex 5

The screenshot above shows a double bottom pattern that is formed after a falling trend line broken. In the next screenshot below, you will see a double top pattern that is formed after a rising trend line is broken.

You can expect a big move once this pattern appears right after a major trend line break.

forex 4

Strategy #4: M30/H1 Signals After Steeper Trend Lines

Trading with the steeper trend line set up is yet another way to capture the big move in price just before it happens.

In this strategy, we look at two trend lines. The first trend line is a major trend line and is often sloped at a 45-degree angle. This is the major trend line that is respected and can potentially signal a trend reversal if it is breached.

The second trend line or the steeper trend line is smaller in scope. At the same time, this second trend line is steeper compared to the first trend line. The second trend line can slope to an extent of 60 degrees if not more.

Between the two trend lines, there is a significant space. This space is your profit potential. The entry of the double top pattern (between the two rising trend lines) or the double bottom pattern (between the two falling trend lines) is the trigger for the trade.

The following screenshot shows such a steeper trend line setup:

forex 3

Also, my trading system V-Power (a day trading system for trading reversals) can highly benefit from such steeper trend line setups.

Conclusion:

As you can see from the above, the presented “1+1 = 3” effect is a great way to increase the performance of your trading. This effect is universal in the financial markets and is not just limited to forex or futures.

In fact, this effect is not bound to the signals of just the double top or the double bottom indicator. For example, you could also use my MagicEntry-system (a momentum trading system) which will give you the same desired effect when you use the bigger picture to your advantage.

Make use of the “1+1 = 3” effect and see the results with your own eyes.

This article was contributed by Mike Semlitsch, founder of PerfectTrendSystem. 

Disclaimer: This is a sponsored post. Readers should do their own due diligence before taking any actions related to the company, product or service. BitcoinAfrica.io is not responsible, directly or indirectly, for any loss or damage caused by or in connection with the use of or reliance on any content, product or service mentioned in this paid sponsored post.

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The Current State of Cryptocurrency Regulations in South Africa

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Cryptocurrency Regulations in South Africa

Changes in regulations can have a profound impact on digital asset investors. A supportive regulatory framework can provide a more secure trading environment that could attract more investors to this new digital asset class and spur on innovation. Conversely, regulations that are too strict can hamper positive developments in the cryptocurrency sector and the economic benefits that come from it.

In this article, we will discuss the current and potential future state of cryptocurrency regulations in South Africa.

Cryptocurrency Is Currently Not Regulated

Currently, cryptocurrencies are not regulated in South Africa, which means investors can legally buy and sell all types of cryptographic assets. However, there is no legal backstop for investors who lose funds by dealing on insecure exchanges or falling for cryptocurrency scams.

In the ‘Position Paper on Virtual Currencies,’ which the South African Reserve Bank (SARB) issued in 2014, the central bank cautioned South African citizens against the risks of investing in cryptocurrencies and highlighted that they are not legal tender in Africa’s second-largest economy. Nonetheless, the position paper was well-received in the local bitcoin community as it meant that the central bank was adopting a laissez-faire, wait-and-see approach to crypto. This allowed local cryptocurrency and blockchain startups to flourish and led to a substantial increase in bitcoin trading volumes on local exchanges in the years to follow.

The Potential Future of Cryptocurrency Regulations in South Africa

south africaOn January 16, 2019,  the South African Reserve Bank published a consultation paper on policy proposals for cryptoassets, which has been composed by South Africa’s Intergovernmental Fintech Working Group (IFWG).

The IFWG was established in 2016 with the aim “to develop a common understanding among regulators and policymakers of fintech developments, as well as policy and regulatory implications for the financial sector and economy.” The working group is composed of members from NT, the SARB, FSCA, SARS, and FIC. In 2018, the Crypto Assets Regulatory Working Group was formed as part of the IFWG to focus on formulating a cryptocurrency regulation framework.

In the consultation paper, the Crypto Assets Regulatory Working Group looks at cryptocurrencies from two angles: financial trading and as a payment method.

To develop a regulatory framework for cryptocurrencies, the working group has proposed the following definition of crypto assets.

“Crypto assets are digital representations or tokens that are accessed, verified, transacted, and traded electronically by a community of users. Crypto assets are issued electronically by decentralised entities and have no legal tender status, and consequently are not considered as electronic money either. […] Crypto assets have the ability to be used for payments (exchange of such value) and for investment purposes by crypto asset users. Crypto assets have the ability to function as a medium of exchange, and/or unit of account and/or store of value within a community of crypto asset users.”

The Crypto Assets Regulatory Working Group proposes that South Africa moves from its current unregulated position towards crypto assets to implementing what it refers to as “limited regulation.”

Limited regulation would mean that all local cryptocurrency platforms that enable users to buy bitcoin in South Africa would have to adhere to anti-money laundering/combating the financing of terrorism (AML/CFT) rules as they would be classified as “accountable institutions” under the FIC Act. Moreover, exchanges would have to conduct customer due diligence, which would include the monitoring, record-keeping, and reporting of suspicious transactions as set out by the FATF recommendations.

The working group also recommends that businesses and individuals should be able to continue to accept cryptocurrencies as a payment method but that they will have to do so at their own risk.

What’s Next?

The proposed regulations would mean that all investors looking to trade crypto assets would have to use exchanges that have adequate KYC/AML onboarding processes in place as set out by existing financial regulations. Anonymous trading of digital assets, for example on peer-to-peer exchanges, would not be permitted under the proposed rules.

Merchants who accept bitcoin and other digital currencies as payment methods would remain unaffected by the new “limited regulation” framework as they can continue to use cryptocurrencies as they please.

If you want to invest in digital assets such as bitcoin (BTC) and ether (ETH) using South African rand, visit Luno and start investing today.

Disclaimer: This paid sponsored post has been produced in partnership with Luno.

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How to Deposit Money Into Your Betway Account

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Images by Betway

Betway is one of the leading sports betting sites in the world. The world of sports gambling has been growing for the past years. Betway has designed various methods that ensure that the whole market is satisfied.  So, wondering how to get started and how to deposit money into your Betway account?

The Top Methods to Deposit Money to Your Betway Account

BetwayRegardless of what country you are in, Betway has provided numerous options which you can deposit money. Here is a look at some of them, be sure to let us know which one is your favourite.

1. Debit or credit card

The use of Debit cards is very popular and convenient method to deposit funds into your Betway account. You can  opt to use either:

  • MasterCard
  • Visa
  • Electron.

How to deposit money using your debit card:

  • Click on the Betway banking option.
  • Select the option deposit funds via debit card.
  • Enter your personal details.
  • Enter the amount you would like to deposit.
  • Click Confirm.

Benefits:

  • Gives you instant access to your funds.
  • The Betway deposit charges will be added to your account.

On the other hand, you may decide to use a credit card. You can fund your credit card either through

  • MasterCard
  • Visa

How to deposit funds using your credit card:

  • Click the deposit button.
  • Select the credit card button.
  • Enter your credit card details.
  • Enter the amount you would like to deposit.

Advantages

  • You can access your funds instantly.
  • No fees will be charged on the credit card.

2. Neteller

Everything is done on the internet these days. Thus it is not a surprise when one has an e-wallet with them. Neteller is one of the go-to e-wallet options.

How to deposit funds using Neteller:

  • Select Neteller from the list of deposit options.
  • Enter your 12 digit Neteller account number.
  • Enter your 6 digit Neteller security number.
  • Enter your Betway password.
  • Select the amount you would like to deposit.
  • Click Confirm.

Benefits:

  • Funds are available instantly.
  • There are no fee charges while depositing.

3. Skrill

Skrill is also a wallet option. You can deposit funds directly from your  Skrill account to either your credit card, debit card or bank account.

How to deposit funds using Skrill:

  • Select the Skrill option.
  • Enter the amount you would like to deposit.
  • Enter you Betway password.
  • Your browser will direct you to your Skrill’s account.
  • Enter you Skrill’s account details.
  • Confirm your Betway deposits.

Benefits:

  • You have instant access to funds.
  • There is no fee charged once you deposit the funds.

4. PayPal

PayPal is one of the most popular wallets in the world. When it comes to using it you have options to deposit funds either to your credit card, debit card or bank account.

How to deposit funds using Paypal:

  • Click the deposit option and select Betway Paypal.
  • Enter the amount you would like to deposit.
  • Enter your Betway password.
  • Your browser will direct you to PayPal.
  • Enter your PayPal account details.
  • Click to confirm the amount to be deposited to your Betway account.

Benefits:

  • Instant access to funds.
  • No fees are charged when you deposit.
Disclaimer: This is a sponsored post. Readers should do their own due diligence before taking any actions related to the company, product or service. BitcoinAfrica.io is not responsible, directly or indirectly, for any loss or damage caused by or in connection with the use of or reliance on any content, product or service mentioned in this sponsored post.

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