Money Planet

2023-05-04 17:50:02 Coinbase users will no longer be able to borrow fiat against Bitcoin

Coinbase Borrow — which allows users to borrow fiat against their Bitcoin (BTC) holdings — will be scrapped from May 10, Coinbase announced in a notice sent to users and shared on Twitter. The emailed notice did not provide any reason for the shutdown of the feature.

The notice added that the current loans of users will not be impacted. The notice said users would continue to have access to their loan history and the Borrow dashboard.

Coinbase Borrow enabled users to borrow up to $1 million using their Bitcoin holdings as collateral. Users could post up to 40% of their assets as collateral, and no credit checks were involved. The interest on the loans was around 9% annually.

#MarketNews Open / Comment

2023-05-03 14:08:02 Open / Comment

2023-05-03 10:52:46 The Bitcoin price has been moving in a range for the past few weeks. A breakout of this range is possible this week after the Federal Open Market Committee (FOMC) meeting begins in less than 12 hours.

Be careful with high leverage because high volatility is possible.

#BTC Open / Comment

2023-05-03 10:46:00 Panic in the market. How not to behave

The main reason of panic when investing in cryptocurrency is its high volatility.

The rate of cryptocurrencies can change rapidly, both up and down. However, panic and nervousness can lead to unreasonable decisions, which can then lead to loss of capital. Therefore, when investing in cryptocurrency, you need to take a rational approach and be informed.

Remember:

1. The cryptocurrency market is a market with a high degree of uncertainty.

2. Investing in cryptocurrency is a long-term-medium-term plan and requires patience.

3. In order to minimize risks, you need to allocate capital correctly and maintain predetermined loss limits.

So, in general, panicking when investing in cryptocurrency can lead to unreasonable decisions and loss of capital, so it is important to be rational, informed and patient, as well as properly allocate capital and maintain predetermined loss limits.

#Education Open / Comment

2023-05-02 19:24:16 The number of transactions in the BTC network reached an all-time high today!

1. Bitcoin network activity reached new highs.

2. The recent increase in network activity is due to a jump in the total number of daily transactions to a record high.

3. Transactions are due to the growing use of Taproot addresses for inscription usage.

#MarketNews Open / Comment

2023-05-01 20:50:41 ​ A Simple Strategy to Beat the Market in the Long-Run

According to many analysts, it's impossible to beat the market in the long run. However, year after year, many investors can do it.

If not, there wouldn't be famous investors at all! It is true that past returns can't guarantee future ones. However, with this simple trend-following strategy, you would have beaten the market.

With only a moving average and the use of Bollinger bands, it is possible to derive positive returns higher than those of a simple buy & hold strategy.

Applying the Strategy

This strategy is simple, and it should not be applied in singular stocks but in broad market ETFs like SPY or QQQ. Why? Because these ETFs are based on tracking the S&P 500 and the Nasdaq Index.

As you can see in the image, we plot SPY and only one technical analysis tool. The Bollinger bands. This tool shows 3 lines that create a zone. What do they mean?

The line in the middle is the 26 week moving average of SPY. That way, we have a smoothed trend to follow and brings legitimacy to prices. Remember, if prices are too far away from their medium-term moving average, the risk of seeing an overbought asset increases.

Secondly, we see the plotted two standard deviations (positively and negatively) away from the simple moving average (SMA) of an asset’s price.

The standard deviation shows the dispersion of a dataset. That means that price movements outside the Bollinger bands can be considered abnormal.

For example, if an asset has low volatility and suddenly spikes, we will see it out of the Bollinger bands, marking an abnormal behavior.

Do you see what is happening? At this moment, the price movements are close to being in a zone of abnormal behavior. Does this mean we should buy now? Not necessarily.

So what do we do now?

We should start thinking about commencing to accumulate assets. Which assets? Well, for example, you may buy SPY or QQQ. However, we should not jump right into the market. First, ask our experts.

If you had traded this way for the last 60-70 years, you would have always made money and beaten the market if you had waited long enough.

Why? Because you wait for the moment to jump instead of buying in regular moments. Entering positions is preferable when prices are significantly lower than the Bollinger Bands.

At this moment, we are entering the zone below the bands, but we can't say yet this is a significant drop. That's why you should ask our experts first which is the desirable % of portfolio weight you should assign to this strategy.

It is preferable to load in batches rather than buying the whole position in one stroke. If you apply this simple strategy and are careful about consulting first, historically speaking, you should do better than most other investors.

#Education Open / Comment

2023-04-30 19:11:34 Now you can forage for SUI with your BNBs or stablecoins

#MarketNews Open / Comment

2023-04-30 18:38:04 Commodity Prices and Charts

Is it the same to analyze a commodity as it is analyzing a stock chart? The short answer is no. But why? Consider, for example, that stocks have future cashflows or pay dividends.

Conversely, commodities have no cashflows and represent a simple primary good on sale.

The demand for a stock is derived from its business and industry. The demand for a commodity comes from the necessity to consume it or use it in a productive process.

All these aspects require us to analyze them differently. It's not only about the charts.

How do they trade?

Stocks have a current price. Each day that passes their prices fluctuate, and they are transferred from one investor to another virtually.

Commodities don't trade the same way. They are traded through futures contracts with different settlement dates. Moreover, futures have different contracts with various characteristics.

Remember the days when the price of oil traded below 0? Yes. In 2020, the price of oil was negative. Investors paid to give you oil. Why?

Because the future contracts of oil said that oil should be settled physically. That means with the actual barrels of oil in Oklahoma, United States.

However, because supply chains were all broken due to covid, there was no more space to store them, and people paid to avoid going to Oklahoma.

The price of oil never reached negative prices. Only the prices of futures contracts. Get the difference?

Productivity, Scarcity, and Volatility

Commodities are produced through processes that make them more abundant. Consider how we can extract more oil than ever before thanks to technology.

That's a deflationary force for commodities in general. However, from time to time different events disrupt the offer of primary goods. And because the demand is always growing, when the disruption comes, the spikes are pretty violent.

In short, the price of commodities is less volatile in normal times, but much more volatile than stocks when crises come.

Identifying in which part of the cycle you are is key to deriving a profit from commodities. Here at Money Planet, we have been emphasizing the importance of investing in companies that produce commodity-related products or commodity-producing countries.

Commodities have 'many prices'

Futures contracts have different expiry dates. The price of a commodity in one month won't have the same price as if you were given the same commodity in a year.

That means that different contracts may have different prices. For example, if a contract of oil right now is $115 due to current geopolitical conflicts, it's possible that receiving a barrel in the future has a lower price.

This effect is called backwardation. It means that the price is expected to decrease over time. 

The opposite is called contango. Contango happens when future prices of futures contracts have a higher price.

#Education Open / Comment

2023-04-29 19:50:57 ​ The way of thinking

Before we talk markets, investment, and trading, let’s talk about one of the most important pieces of success: your mindset.

Your potential to make money doesn’t start on your first day of work. It begins with your way of thinking. When it comes to financial success, it’s all about having the right money mindset. Most of the things we talk about on Money Planet are simple ideas. They are actions anyone can take. So, why are some people on our channel successful investors while others are still stuck with one active income?

It all comes down to dedication. Are you building real habits? Do you spend your time productively?

Everything you do is a choice. If you are inconsistent with your habits, your results will be inconsistent at best. Watching sitcom reruns instead of digging into a worthwhile book affects you and your results.
Your life is a result of the choices you make. That’s the bad news and the good news.

Change Your Thinking

You can change your thoughts, and create new opportunities. Instead of getting depressed and anxious about money, use those feelings as motivation.

Ask yourself: how can I make money doing what I love? What lessons do I need to learn? What skills can I build?

Remember that wealthy people don’t just go with the flow. They don’t care about doing what everyone else is doing. They are ready for original solutions.

Be the Author of Your Life, Not a Victim

The best time to change something is right now. Take advantage of this moment. Learn to plan your time and pay attention to what affects your life positively.

Look at the people around you. You are the people you spend the most time with. Do you spend your time with smart and successful people?

Regardless of obligations, you do choose who you spend your time with. You decide who is in your life. You’re not a victim. Don’t spend your time with regrets and blaming people for your life.

Become the author of your life. Take control and accept responsibility for your choices. THIS is your moment. Decide right now that you are going to stop being a victim and start making choices every day about your life and how you want to live it.

#Education Open / Comment

2023-04-28 19:42:26 #CEO #SocialNetwork #LeonLaws

Hello, wealth builders!

Today let's hear from Dr Leon Rebelsky.

Our financial expert is talking about his social networks.

How does he use his communities to grow his network and wealth?

Let's hear his DOs and DON'Ts of connecting and learning online. Open / Comment