Connect with us
nairametrics
UBA ads

Cryptocurrency

How blockchain revolutionises finance & investing

Published

on

Quidax, Blockchain,

Blockchain is one of the most important innovations over the past decades. One would say it promises the same level of disruption that Uber brought to private transportation and AirBnB brought to the hospitality industry. A lot has been said about the promises that blockchain brings, particularly in the area of finance and investing.

Blockchain provides a way for untrusted parties to agree on the state of a database, without any middleman, by providing a trusted ledger that doesn’t require administration by a third party, blockchain could be used to provide certain financial services like payments or identity verification without a trusted third party, like a bank. Also, blockchain allows for the use of tools like “smart contracts,” which potentially automates manual processes, — from clearing and claims processing to tokenising commodities.

UBA ADS

Some of the applications of blockchain in finance and investing that can cause this revolution, include:

Payments

Currently, facilitating payments is very profitable for banks, and it provides very little incentive for them to lower fees. From local bank transfers to cross-border remittances and even letters of credit generate a sizeable part of revenues of banks.

Cryptocurrencies like Bitcoin, Ethereum or Ripple are built on public blockchains where anyone can use them to send and receive value, without a trusted 3rd party. The speed of these transfers could be as fast as seconds, or in dire cases of network congestion, take up to 16 hours — as experienced during the December 2017 price hike. This still presents a better solution to the current ACH system used in most developed countries in the world today. While developers are still working to further optimise the number of transactions per second many blockchains can process, blockchain companies like Bitpay & Fliqpay enable merchants accept cryptocurrencies as a mode of payments at cheaper and faster rates.

GTBank 728 x 90

Asset Management

Most traded assets are difficult to transfer or subdivide. Buyers and sellers trade paper that represents all of, or a portion of, the asset. They also have to trust third parties to verify the authenticity of these assets, which could be complex, inefficient and can be hard to track. One solution would be ‘Tokenisation’ — the ‘slicing up’ and ‘digitisation’ of assets. This would give investors far easier access to a larger range of asset classes. Commodities, Stocks and other financial assets could be tokenised and traded easily on exchanges.

Faster clearing & settlement

Legacy structures existing for clearing & settlement houses in finance often don’t receive the innovation that they deserve. Thus, the structure hasn’t changed much in decades and, as a result, it hasn’t kept pace with technology. The clearing process is slow. Trades still take up to 48 hours to settle and clear. This introduces an element of risk into the system. The process is also manual and relatively inefficient, with different layers of communication still happening (often by phone) between the clearinghouse and other counter-parties involved.

The use of blockchain has been estimated by Accenture to have the potential to save as much as $10 billion.

onebank728 x 90

With the application of smart contracts, the transparency of transaction data on the blockchain will enable near-instantaneous settlement of trades. This would also make transactions easier to audit and ensure that all parties involved in transactions have fair and equal access to information.

Fundraising

Traditionally, new businesses have to target Venture Capitals, Angel Investors, or even banks. Initial Public Offerings (IPOs) via a stock exchange also came about. However, IPOs are a more advantageous route for self-established businesses. Nearly all these forms of fundraising are infested with many intermediaries including exchange operators, investment bankers, lawyers, auditors and crowd-funding platforms. These often take some time to be complete.

app
GTBank 728 x 90

Blockchain technology is transforming this by allowing businesses in spite of size, to raise funds on a peer-to-peer platform through Initial Coin Offerings (ICOs). The startup industry is already under transformation by this new funding mechanism.

The article in this link touches more on this subject.

Identity

Know Your Customer procedures are a major pain point for all financial institutions according to Thomson Reuters 2017 KYC report, with the costs ranging in tens of millions of dollars. While there is an emergence of id-techs, such as Shufti Pro, Onfido and others, blockchain could allow for a wider and readily accessible database that all organisations worldwide can use to verify identities, without duplication. This would serve to further reduce the costs.

devland

In conclusion

Blockchain has the potential to reduce costs, accelerate administrative processes and increase trust in financial transactions. To ensure worldwide adoption it needs to surmount the hurdles of legacy systems and regulations.


This article is in partnership with Quidax. Quidax is a European based digital assets exchange with a focus on Africa. We provide a seamless platform for users to send, receive, buy and sell cryptocurrencies using their local currencies.

app

Patricia
1 Comment

1 Comment

  1. misalalfred

    February 6, 2019 at 8:33 am

    With the most profound out growing growth of the economy the world is drastically changing to a more consceptualized state of going and that is why almost all of our activities are going digital.

    Increasing awareness of this fact and voucher that been digital can increase more job opportunities and boost the world is what it takes to reccommend better awareness and more service to the world and that’s why the blockchain
    Is fast growing increasing its effect is to our growth.

    short note by Misal Alfred Edison.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Cryptocurrency

How to become a successful Bitcoin trader

Major steps that are needed if you want to become a successful BTC trader.

Published

on

BTC Whales, Bitcoin is scarce, entities, individuals hold for long term

A BTC trader is simply an individual who seeks gains from differential changes in the market price of BTCs. The main objective the BTC trader has in mind is buying prices alow and selling when the flagship currency gains higher. BTC trading can thus be very lucrative and has become one of the fastest-growing careers in the financial spectrum. 

Data obtained from a leading BTC analytic firm, Coinmarketcap showed that the market capitalization of BTC currently stands at over $170 billion. This further illustrates that in 2013 BTC moved from $13.30 to its present-day value of over $9000, meaning that early bird BTC traders had gained over 67,600% since it began. 

UBA ADS

Consequently, this article will show major steps that are needed if you want to become a successful BTC trader. 

Explore Research Data From Nairametrics by Visiting Nairalytics

Self-Control & Discipline  

Adebayo Juwon, an FTX consultant for Africa, spoke to Nairametrics in an exclusive interview, explaining in detail the need for a BTC trader to be very disciplined and have a security-conscious mindset. He said; 

GTBank 728 x 90

“Firstly I must note that trading is not for everyone, to be a successful crypto trader, self-discipline is a prerequisite to achieving one’s goal. The crypto market is very much volatile than what the traditional traders are used to, hence more risk and reward. 

“A crypto trader must be security conscious; you’re responsible for your account security in the crypto ecosystem, as hackers are preying on whose account is less secured.” 

READ ALSO: CBN provides guidelines to address credit, liquidity risks, others  

onebank728 x 90

Risk Management 

A successful BTC trader must be able to understand the relationship between reward and risk management. This entails high understanding levels about the degree of randomness in BTC market and the risk involved in taking such risk. As a successful BTC trader, you are required to understand when its best to trade BTC as market conditions change from time to time. 

Adebayo Juwon, FTX consultant for Africa also added vital points on why a BTC trader should never ignore risk management. He said; 

“Also, to be a successful crypto trader, one must have good risk management in place, in a highly volatile market your profits can be zapped away in minutes. Risk comes in different ways in the crypto market, there are lots of scam projects with the good marketing team, they tend to attract investors also, it’s very important to do your own research in the crypto space, and rely less on market sentiment.” 

app
GTBank 728 x 90

READ MORE: Tether mints 80,000,000 USDT to unknown wallets within 24 hours

Timing 

Recall that some days ago Nairametrics, revealed the best time many BTC traders prefer to take their trading positions in the BTC market, thus preferring to trade around the American trading session because of the high price swings that occur at the start of New York stock market trading time -about 2.30 pm GMT. This means there were higher chances of making more money at the start of  American trading sessions than other trading sessions (London and Asian trading session).  

 

devland

Basic fundamental and Technical analysis skills 

Every successful BTC trader must keep track of macro fundamentals going around the BTC community because such information more often determines the market price of Bitcoin.  Either rumours or news have exponential effects on the BTC market and often create lucrative trading opportunities. 

Chris Ani, a professional BTC trader in a phone chat interview explained to Nairametrics in detail, the major attribute every successful BTC trader must possess, including the need to have basic trading skills. He said; 

app

 “To prevent yourself from becoming a slave to the market, you must be trading small enough size on your trades that you are not emotionally attached to them. Trading opportunities wait for no one. 

“You have no idea when and where they will appear. Whenever they appear, you have to be ready with your trading plan.  You must also master technical and fundamental analysis and most importantly the one that works for me, understand the seasons and market structure so as to know when to trade, allow big wins run, or rather exit the market in order not to lose your money.” 

Finally, it’s very important to understand that no matter how good you get at BTC trading, you will often make mistakes and lose money. Always remember, trades that go bad are part of what will make you successful in the long term. Success in BTC trading simply means you are winning more relatively than losing. 

 

Patricia
Continue Reading

Cryptocurrency

Crypto: Elrond gives investors 1,735.54% since its inception 

The exponential increase facilitated this fast-growing digital coin move up to 58th position.

Published

on

The race for the fastest growing crypto asset of all time keeps changing constantly in the present crypto landscape as Elrond is by far the best performing digital coin among the top 100 crypto assets in recent times. Elrond has skyrocketed by over 1,735.54% since its inception of trading at the crypto market. 

 Shortly after the official statement released by its developers, on its integration, Elrond price blew up the charts lately presently it trades at $ 0.011931, up 1,735.54% since it’s in inception in Aug 2019 when it began trading at $0.002. The exponential increase facilitated this fast-growing digital coin move up to 58th position in terms of market capitalization size. Data obtained from Coinmarketcapshowed its market capitalization was over $157.2 million at the time this report was drafted.

UBA ADS

Explore Research Data From Nairametrics by Visiting Nairalytics

Quick fact; Elrond is a type of blockchain architecture, created to facilitate a 1000-fold cumulative improvement in the execution of speed. Its architecture combines a Secure Proof of Stake (PoS) algorithm facilitating unlimited scalability. Elrond is originally designed to facilitate the process of over 10,000 transactions per second at cheap cost and with 5-second latency attempting to become the backbone of borderless, permissionless, and globally accessible internet economy. 

In addition, Beniamin Mincu, Elrond CEO explained in detail how the Elrond blockchain is perfectly positioned to deliver the needed responsiveness and scale. He said; 

GTBank 728 x 90

READ MORE: Safest, regulated Cryptocurrency, Arcoin backed by U.S. Treasury securities

“Getting access to all the available liquidity from day 1 is an important prerequisite for anyone building DeFi tools. This integration enables Elrond to be part of many existing cross-chain DeFi applications. We’re excited to work with Swingby and increase access to Elrond’s highly scalable and cost-effective solution,” Mincu said. 

 

onebank728 x 90

Patricia
Continue Reading

Cryptocurrency

ChainLink’s digital coin skyrockets 388% in 130 days, still soaring

LINK continues to see sky-high daily active addresses.

Published

on

ChainLink’s digital coin skyrockets 388% in 130 days, still soaring

LINK, an altcoin powered on Chainlink’s decentralized network, is smashing BTC and many other fast-growing digital coins, in terms of the rate at which it has been appreciating in dollar terms lately.

Data from a crypto analytic ranking firm, Coinmarketcap, shows the 12th most valued crypto asset is presently valued at over $2.2 billion dollars (1.2 times more valuable than Nigeria’s most valued bank) with a daily trading volume of over $595 million. It traded as low as $1.60 dollars to its present-day value of over $6.20, showing a percentage gain of more than 387.5% as the price keeps drifting up.

UBA ADS

Crypto behavior analytics platform, Santiment, in it feeds detailed that its on-chain volume, along with social volume and daily active addresses, is a “great triple thread to track.” These macros help track whether a given crypto asset is poised to continue its bullish momentum, and in LINK’s case, it shows that the momentum is still on.

READ ALSO: 3 Crypto exchanges control about 14.3% circulating BTC supply

GTBank 728 x 90

About Chainlink

Chainlink is a blockchain that is designed to bridge the space between blockchain technology-based smart contracts (created by ETH), and other user programs. Since blockchains by principle can’t have access to data outside their paths or networks, a defi instrument is needed to facilitate data feeds in smart contracts, and Chainlink helps to solve such needs.

READ MORE: Tether market capitalization surges close to $10 Billion

onebank728 x 90

Among the leading 20 cryptocurrencies by market capitalization, it is viewed as the only top-20 token with a broad, adaptable business application that is easily explained to an average person. Chainlink is the first successful Blockchain application to interact with the outside world.

Patricia
Continue Reading