Coinbase IPO Listing: Investor Confidence in Crypto Assets

IPO Listings: Old Money Finds New Value

With the listing of crypto exchange Coinbase becoming an important moment in the cryptocurrency community. Crypto companies are looking toward IPO’s as additional funding given the environment of SEC regulations.

The initial public offering of shares in crypto companies provide liquidity to future projects enabling investors to participate in the rewards of digital assets and currencies.

Discussion within the crypto community has mentioned the future listing of the Binance crypto exchange. 
With the popularity and need for deeper funding in the fast-moving crypto space, companies such as Gold Standard Bank will begin discussions around IPOs.

Crypto Exchanges: Vehicles that Transfer Wealth

 Essentially, wealth is the accumulation of scarce resources – the ability to maintain control of and store those resources.

  • Stock markets are overly congested with old money
  • Regulations and tax rules favour the wealthy 
  • Public debt keeps growing, and Central Reserve Banks keep buying
  • Decelerating economic growth
  • Record low inflation, though massively inflated stocks
  • Interest rates are at all-time lows

Who benefits, you?

No, inflation and interest rates are tools that central authorities use to stimulate economic growth. In essence, they benefit the sectors of the economy on which they are focused. A decrease in interest rates sees the growth in the public sector which is owned by Central Reserve Banks. Inflation would be a useful tool to decrease the overall buying power of the oversupplied fiat currency. 

Why are we seeing the opposite? 

The narrative remains, the wealthy in the financial system seeks more controls of the economy through the use of the “debt-trap” strategy (popularized by China). Technology has provided a brief moment through the creation and establishment of ledger technology and cryptocurrencies. These “assets” adopted from the ground up have shown the effects of inflation and limited supply. 

Bitcoin is a prime example of balancing the scales because it acts outside of regulation. It is able to provide opportunities for wealth accumulation through empowering key decentralized technologies. With the formation of crypto exchanges, free markets have been made available for consumers to access. 

The inflated price of the massive network has seen wealth transfer between early adopters to late-coming institutional investment. Decentralized and centralized exchanges make it possible to interact within the digital economy; however, massive regulation being forced onto exchanges.  

Central authorities succeed in transferring the wealth back… 

Technology Behind Exchanges: Decentralized Finance

Crypto exchanges Increasing Market Share

The future of API communication

The application programming interface (API), a delivery system for information and database interaction adopted in crypto exchanges.

From viewing wallet contents, tracking market prices, or even sending and receiving transactions their functions are unlimited.

Algorithmic trading functions introduced by APIs have revolutionized trading. Using languages such as pine script and python, coders are able to integrate various systems together. API’s as a functional tool to deal with the market volume, tracking, and price averaging have become important tools in the crypto trading space.

Robotics and Trading Strategies

The scale of adoption and the need for better investment returns.

Using technical and fundamental analysis trading strategies such as scalping and swing trading have emerged.

Traders adopting strategies such as candlestick strategy and profit parabolic (moving average) has made trading more technical.

With the creation of APIs, the popularity of automated trading has grown. A code running commands based on volumes and prices in the market to buy and sell cryptocurrencies.

Connecting APIs with Python code enables the evolution of training using algorithms. These bots are able to pick up volume adjustments in real-time making them more impressive than trading tools.

Spot and margin positions

Have you ever bought bitcoin and wondered what is spot and what is perpetual?

Spot trading refers to the immediate price that the crypto asset is purchased at. It provides users the function of buying crypto at market price in real-time.

This form of trading requires an exchange of Fiat currency which is first credited to your profile to cryptocurrencies through the sale of the Fiat currency.

With the volatile nature of crypto assets spot trading provides users the ability to buy and sell crypto assets and make small profits depending on the market.

Compared to margin trading which the user purchases a trading instrument instead of the underlining asset technology.

Traders use margin trading to increase their profit during buying and selling of crypto assets. The instruments used are representations of the market and traders buy and sell contracts representing their positions.

This allows for positions with better profits, some margin positions allow traders the ability to use borrowed funds up to 100 times more than invested.

The speculative market provides liquidity to the crypto asset space and creates an environment that encourages trading and investing.

However, an important point to note is that marginal trading doesn’t refer to buying the crypto asset. With spot trading, you buy the virtual currency and transfer it off the exchange to store for later use.

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