Want to launch your own branded card program? We break down the what and how—unlock new revenue, boost loyalty, and stay ahead in the digital payment game.
Keep reading%201.webp)
Ever wondered how companies launch those shiny credit cards with their logos on them? Let's dive into the world of card programs and break down everything you need to know to launch one successfully.
What's a card program, anyway?
Think of a card program as your business's very own payment ecosystem. It's like having your own mini-bank, but without the vault, technical infrastructure and security guards. Companies use card programs to offer payment solutions to their customers or employees, whether a store credit card, a corporate expense card, or even a digital wallet.
As you’ve probably figured, the financial world is quickly moving away from cash, and card payments are becoming the norm. In fact, they're now as essential to business as having a product, website or social media presence.
Why should your business launch a card program?
Launching a card program isn't just about joining the cool kids' club – it's about creating real business value and heightened exposure. Here's what you can achieve:
Keep your customers coming back
Remember those loyalty cards from your favourite coffee shop? Card programs take that concept to the next level. When customers have your card in their wallet, they're more likely to choose your business over competitors. Plus, every time they pull out that card, they (and everyone else around) see your brand.
Show me the money!
Card programs open up exciting new revenue streams. You can earn from:
- Interest charges (if applicable)
- Transaction fees from merchants
- Annual membership fees
- Premium features and services
- Insights and information on spending habits
Know your customers better
Want to know what your customers really want? Their spending patterns tell the story. Card programs give you valuable insights into customer behaviour, helping you make smarter business decisions.
Understanding the card program ecosystem
Let's break down the key players in this game:
The dream team
Picture a football team where everyone has a crucial role:
- Card networks (like Visa and Mastercard) are the referees, setting the rules
- Card issuers (like Tap) are the coaches, making sure everything runs smoothly
- Processors (overseen by Tap) are the players, handling all the transactions on the field
Open vs. closed loop: what's the difference?
Open-loop and closed-loop cards differ in where they can be used and who processes the transactions. Let’s break this down:
Open-loop cards:
These cards are branded with major payment networks like Visa, Mastercard, or American Express, and are accepted almost anywhere the network is supported, both domestically and internationally.
Examples: Traditional debit or credit cards, prepaid cards branded by major networks.
Pros: Wide acceptance and flexibility.
Cons: May come with fees for international use or transactions.
Closed-loop cards:
Cards issued by a specific retailer or service provider for exclusive use within their ecosystem. These cards are limited to the issuing brand or select partners.
Examples: Store gift cards (like Starbucks or Amazon), fuel cards for specific gas stations.
Pros: Often come with brand-specific rewards or discounts.
Cons: Limited to specific merchants; less flexibility.
Challenges that may arise
Let's be honest – launching a card program isn't all smooth sailing. Here are the hurdles you'll need to jump:
The regulatory maze
Remember trying to read those terms and conditions? Well, card program regulations are even more complex. You'll need to navigate through compliance requirements that would make your head spin.
Security
Fraud is like that uninvited guest at a party – it shows up when you least expect it. You'll need robust security measures to protect your program and your customers.
We’ve designed our card program to handle these niggles, so that you can bypass the challenges and reap the rewards. With a carefully curated experience, we take care of the setup, programming and hardware so that you can focus on the benefits and users.
Closing thoughts
Launching a card program is like building a house – it takes careful planning, the right tools, and expert help. But when done right, it can become a powerful engine for business growth.
Contact us to get started on building a card program tailored to your company. After all, the future of payments is digital, and there's never been a better time to get started.
NEWS AND UPDATES
LATEST ARTICLE
When it comes to investing in crypto, many people think about either mining cryptocurrencies or buying them outright on a crypto exchange. But what about those who want more control over their digital wallet? For the everyday crypto-investors, there's a viable cost-free alternative to earning more crypto: staking also known as "coins staking." Crypto staking allows you to generate more cryptocurrencies using your crypto holdings.
There are many new terms entering the financial world, but staking may be one of them that you should know. What exactly is it? Crypto staking is a relatively new concept that has the potential to revolutionize how we invest in cryptocurrency.
While it may appear complex at first, learning about the benefits of crypto-staking can help you make more educated decisions when investing in cryptocurrency.
In this article, you'll learn the ins and outs of staking. We've broken it down so that even if your experience level with cryptocurrencies is at beginner or below, you'll be able to start staking yourself. Let's get started!
What Is Staking?
Staking crypto is the process of locking crypto assets in a wallet to earn rewards. Doing so allows users to contribute to verifying transactions and building consensus on blockchain networks.
The procedures for validating cryptocurrency are known as "proof-of-stake" or "proof-of-work" depending on the sort of the cryptocurrency you're dealing with and the technologies that support it. Each of these methods aids blockchain networks in achieving consensus, or confirmation that all transaction data agrees.
It also requires participants to make that consensus possible. Staking is the act of investors who keep their cryptocurrency in their crypto wallet and actively participate in network consensus-making processes. Stakers, in essence, are approving, verifying and confirming transactions on the blockchain.
In crypto staking, coin holders can lock up their coins (staking) for some time period from hours to years in exchange for stakes back from the platform or network.
Staking crypto can be passive income generating - crypto holders who stake their coins will receive rewards for helping validate transactions on blockchain networks, often through an interest system similar to that of traditional fiat currency.
How does crypto staking work?
For the investor, crypto staking is a passive process. When a Staker stakes its assets (that is, leaves them in their crypto wallet), the network may utilize those assets to create new blocks on the blockchain.
The block's information is "written" into it, and the investor's assets are used to validate it. Because coins already contain "baked-in" data from the blockchain, they may be utilized as validators. The Staker is then rewarded financially for allowing his or her tokens to be used as validators by the network.
The pros and cons of Staking.
Because staking crypto is a passive investment, there are virtually close to no disadvantages. However, it's important to consider the block rewards earned by staking coins you own, as well as cryptocurrency's volatility in general—if the value of the coin drops, so does the value of your staking interest earned.
Is crypto staking profitable?
The advantage of staking is that anyone can make returns from it, with various yearly returns rates, staking is an easy way to generate passive income.
Staking is a type of passive income similar to stock dividends. It only requires you to keep the proper assets in the right location for a specific length of time. Compound interest will enhance the earnings potential over time as long as a user stakes their coins.
The value of the coin being staked must also be considered. Assuming this value stays constant or rises, staking may be profitable. However, if the price of the coin falls, profits could rapidly diminish. If you don't want to risk a downward trend in volatility.
Closing thoughts
Staking is a method for earning rewards using your cryptocurrency assets or coins. It's comparable to generating interest on cash savings or receiving dividends on stock possessions.
Stakers allow their cryptocurrency/cash to be used in the blockchain validation process and are compensated by the network for its use. Staking may provide a new way for crypto investors or currency holders to generate returns.
Tap is a regulated DLT company in Gibraltar, we are also agents of Transact Payments Limited who and as a regulated Electronic Money Institution (EMI) Transact Payments are required by law to “safeguard” customer monies received under its E-Money or Payment Services permissions.
What is safeguarding?
Under the requirements of the Gibraltar E-Money Regulations 2020 and Payment Services Regulations 2020 Transact Payments must;
· Segregate all client monies from our own funds.
· Deposit customer funds with a Credit Institution (Bank) with permission to hold client funds.
That Credit Institution must designate (name) the account to show that it is an account which is held for the purpose of segregating and safeguarding the funds or assets in accordance with regulations.
No person other than the payment institution may have any interest in or right over any funds or assets placed in safeguarding accounts.
What does this mean?
All Customer funds are entirely separate from operational funds and held within an authorised credit institution separate from Tap and Transact Payments.
During the course of normal business, Tap and or Transact Payments have rights to use those funds to settle transactions as authorised / instructed by the customer, including redemption to the customer.
Should Tap or Transact Payments experience an insolvency event those segregated safeguarded funds cannot be used for any other purposes.
Is safeguarding limited?
No. 100% of customer balances are safeguarded. There is no limit to the amount that you would receive should an event occur that required the return of your funds.
Reporting.
Transact Payments regulatory reporting requires regular reporting on Transact Payments regulatory capital, own funds calculations and outstanding e-money balances.
Both Tap and Transact Team are committed to open and transparent engagement with our customers. If you have any further question or queries, please do not hesitate to contact us.
Crypto ATMs have been around since 2013 and while their initial integration was slow, just 7 years later there are over 30,500 Bitcoin ATMs around the world. Providing a convenient means of buying and selling the world’s biggest digital currency, here we explore how crypto ATMs can propel crypto adoption.
Cryptocurrencies have come a long way since the advent of Bitcoin in 2009, and with each passing year more firmly establish themselves in the traditional financial landscape. Bitcoin ATMs are here to support this drive and further establish the digital currency in everyday lives, around the world. And not just Bitcoin ATMs, there are also a number of other cryptocurrencies supported which we’ll cover in more detail below.
History of Bitcoin ATMs
The first Bitcoin ATM launched in October 2013 in a coffee shop in Vancouver, Canada. The coffee shop was one of roughly 20 in the area that accepted the digital currency at the time. Created by an American company Robocoin (which later closed in 2015) and a Vancouver-based company called Bitcoiniacs, the ATM used palm scans to authenticate users and allow for a maximum trade of $3,000 worth of Bitcoin a day.
A month and a half later, another Bitcoin was installed in Bratislava, Slovakia, becoming Europe’s first Bitcoin ATM. A few months after that, Bitcoin ATMs started popping up in the United States, and adoption steadily increased. By 2015, there were a total of 329 crypto ATMs around the world, 500 in 2016, which doubled to 1,000 by 2017.
The number of crypto ATMs continued to double each year, reaching a total of 6,400 in early 2020. At the start of 2021, there were just under 14,000 of these machines around the world, increasing quickly to over 30,000 by the end of the year. It’s safe to conclude that the power of crypto ATMs has been recognised, and continues to grow as adoption heads in the same direction.
Crypto ATMs vs traditional ATMs
The most significant differences between the two are that the traditional ATMs are operated by a bank while crypto ATMs are connected to the relevant blockchain via the operator, these two can both accept and dispense cash.
From a regulatory standpoint, crypto ATMs need to follow the AML/KYC (anti-money laundering and know your customer) regulations outlined by the jurisdiction they are operating in. This will also affect the limits of both deposits and withdrawals allowed by the machine, and in some regions, the ATM will also require a money transmitter licence.
The downside to crypto ATMs is the fees. Fees can range from 7% - 25% depending on the operator, the location and the trade. While they allow for quick and easy purchase or sale of various cryptocurrencies with fewer KYC verifications necessary than on a traditional exchange, this does come at a price. However, the crypto ATMs also allow users to tap into the relevant network who might not otherwise have access to an online exchange or bank account.
Of the over 30,500 crypto ATMs around the world, the following cryptocurrencies are currently supported:
- Bitcoin (BTC)
- Lightning BTC (LBTC)
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Dash (DASH)
- Litecoin (LTC)
- Zcash (ZEC)
- Monero (XMR)
- Dogecoin (DOGE)
- Tether (USDT)
- Ripple (XRP)
How crypto ATMs are fueling adoption
These decentralized crypto ATMs have seen a huge growth in popularity over the last 5 years, allowing users to easily exchange one fiat currency for a digital one. Providing an easy means of transaction in over 75 countries, crypto ATMs are facilitating a seamless means in which to travel - instead of exchanging one fiat for another, simply withdrawal the fiat at a crypto ATM on arrival.
While crypto ATMs and adoption go hand in hand, it might lend closer to a chicken/egg conversation (which came first) as both operations are fueled by the other. With more crypto ATMs, more people can gain access to the peer-to-peer based payment system thus increasing adoption, while growing adoption creates more of a demand for crypto ATMs.
In the coming years, we will more than likely see the continued growth of crypto ATMs around the world, alongside a similar growth in crypto adoption as the digital currencies become more integrated into the financial sector and our daily lives.
Since Bitcoin entered the financial landscape in 2009 it has made immense leaps and bounds in becoming the internationally recognised digital currency it is today. Despite the giant progress, crypto still has the potential to further infiltrate many aspects of society, particularly how we travel.
This unprecedented technology can ultimately revolutionise the way we live our lives. Let’s take a look at how crypto is easing international travel, and how you can use it to your advantage.
Blockchain in travel
Many are familiar with cryptocurrencies, but few are aware that blockchain is the technology behind them. Blockchain technology, in simple terms, is a giant public ledger that stores data in a chronological, immutable manner. Particularly flourishing in supply chain management and the broader tech space, blockchain is also proving to be a useful asset to companies operating in the travel sector.
With a wide range of options within the sector, from flights to car rental to hotels, blockchain is slowly starting to prove to be a powerful force in each case. Already several companies have adopted the technology and used it to add more streamlined and efficient services to the travel industry.
For example, a French company, Sandblock is harnessing the technology and allowing travel companies to create their own loyalty tokens to attract and retain customers. These tokens can then be traded for a variety of services (beyond the company that issued them) or exchanged for alternative coins or fiat currencies.
Another example is a Swiss-based, blockchain based company called Winding Tree which was designed to minimize fees for travelers while reducing costs for service providers. The non-profit company aims to cut out the middleman adding high fees to travelers' bookings and connect travelers directly to the service providers using smart contracts.
These are just two in a wide range of companies already implementing blockchain technology into their businesses, illustrating the unlimited potential the nascent technology holds.
Crypto bridges the gap
Like blockchain, cryptocurrencies are too playing an impressive role in easing cross-border travel, with plenty more room for development and better adoption.
Cryptocurrencies facilitate seamless transactions without having to exchange one currency for another when going abroad. Say you lived in America and were visiting Australia, you wouldn’t need to exchange your US dollars for Australian dollars incurring high exchange fees and company-chosen exchange rates if you could just scan a QR code that automatically accesses funds in your universal crypto wallet.
Top tourist destinations around the world have started embracing cryptocurrencies, with a large amount likely to follow. For example, several destinations in Queensland, Australia, that provide access to the Great Barrier Reef have started implementing crypto payments into their tourist-focused businesses, and the reception has been impressive (see more below).
El Salvador on the other hand approved Bitcoin as a legal tender in 2021, effectively making it very simple for any crypto-savvy tourist to travel around. One doesn’t even need to take a fiat card with them as all transactions can be completed using their mobile device. If that’s not the future of travel, what is?
Advantages of using crypto to travel
For the sceptics out there we’ve outlined several advantages of using cryptocurrencies when traveling, below.
- It reduces the chance of theft or money loss
- It eases the booking process
- It allows users to avoid excessive exchange rates and ATM fees
- It minimizes the risk of credit card fraud
- Your smartphone functions as a wallet
- No left-over currency when you leave the country
Globalisation meets blockchain
With increased awareness around countries and societies around the world, thanks to both mainstream and social media, companies expanding on a global level are becoming more and more common.
However, this level of globalisation is often plagued with inconsistent means of distributing funds, causing delays, disruptions and unnecessary expenses. Cryptocurrencies and blockchain technology provide the infrastructure to change these difficulties, stablecoins even more so.
The mobile revolution
According to a recent study, there are 6.37 billion smartphone users around the world, with 80% of the population in possession of one device. This is a significant rise from 2016’s statistics where only 49% of the world owned a smartphone.
Ownership levels are unsurprisingly highest in developed countries like the United States, Germany and the United Kingdom, where on average 80% of the population own a smartphone. Bangladesh, Pakistan and India are among the lowest percentages, with an average of 27% of the country owning one.
Despite this, 80% of the developing world are still crypto-capable. All that is required is a smartphone and an internet connection. In the future, more local businesses, hotels, and shops in these countries will set up crypto wallets, enabling them to accept global payments in a matter of seconds (depending on the coin of choice).
This is likely to happen faster in the developing world than elsewhere, as demand for convenient and reliable payment solutions is on the rise. Less developed countries like the Bahamas are already catching on.
An industry on the up
Crypto is easing international travel and contributing to a growing industry. Since the pandemic emerged, travel was put on a back foot but has since experienced a surge as people seek an alternative change of scenery. Now, cryptocurrency is making travel to remote areas, a growing demand, all the more possible.
Of course, government collaboration is paramount. Brisbane Airport in Australia is the first in the world to accept cryptocurrency at 30 merchants. As mentioned above, Queensland itself is a trailblazer in the crypto world. Agnes Water, a town located at the south of the Great Barrier Reef, has more than 40 businesses that accept Bitcoin. This kind of initiative is precisely what is required from governments and businesses for crypto to help grow the travel industry.
Ironing out foreign currency wrinkles
It is clear that crypto has the potential to revolutionise the way we operate around the world. Cryptocurrencies can make travelling easier and more accessible, and bolster tourism industries in developing countries. Solutions offered by several payment-focused cryptocurrencies could very well take over, as more and more tourists demand easier payment options.
Tap a streamlined cryptocurrency platform, is also contributing to the movement by providing a mobile app that facilitates rapid purchasing, trading, and secure storage of cryptocurrencies. For travellers faced with less tech-savvy merchants, Tap provides a Mastercard enabling users to spend supported fiat and cryptocurrencies at 40+ million merchants around the world.
Since the advent of cryptocurrencies in 2009, the world has seen a substantial shift in the way that people transact and manage their money online. The first cryptocurrency, Bitcoin, sparked a wave that has impacted almost every corner of the globe, significantly shifting the financial landscape as we know it. Let’s explore how crypto is expanding economic freedom on a global scale.
What is economic freedom?
Before we evaluate how this $2 trillion industry is contributing to financial liberation, let’s first establish what economic freedom is. Explained simply, the term refers to measures that grant users the freedom to manage their money, property, and labour in each country, which is then compared globally.
More accurately, the measure of economic freedom is determined by using the Index of Economic Freedom, which weighs up 12 factors contributing to a country’s overall measure. This is broken down into 4 categories, each carrying varying subcategories, such as market openness measuring a country’s trade, financial and investment freedom. The others are regulatory efficiency, rules of law, and government size, each with its own subcategories.
This index was first published in 1995 by The Heritage Foundation and The Wall Street Journal and is used around the world today. This year, Singapore, New Zealand, Australia, Switzerland, and Ireland have ranked as the most financially free countries in the world.
Crypto and economic freedom
Cryptocurrencies were first established to provide an alternative monetary solution to the global financial crisis that sent the world into disarray in 2007. Satoshi Nakamoto created the new age payment system to empower individuals to hold control over their own finances, allowing them to manage and transact their money without the control of an authoritarian entity. For the first time in history, people were able to send money overseas without incurring the usual costly and time-consuming setbacks incurred with regular, global fiat transactions.
Due to the decentralized nature in which they are run, people are responsible for managing their own crypto wallets and specialised users on the network positioned across the globe are responsible for verifying and executing transactions. After Bitcoin entered the scene a significant number of new cryptocurrencies have been launched, over 12,000 at the time of writing. While some maintain the same “medium of exchange” model, many new cryptocurrencies have emerged providing alternative solutions to the industry.
Ethereum, the world’s second-biggest cryptocurrency, for example, provides a platform on which developers can create their own decentralized apps and cryptocurrencies, while other cryptocurrencies revolve around faster transaction times, cloud storage and private transactions. Each of these projects utilizes a blockchain network that was designed to improve and innovate the crypto and blockchain space.
Spanning beyond government control and lengthy paperwork, cryptocurrencies are able to provide a global currency that operates entirely online and is not confirmed to the borders of a country. Cryptocurrencies are global, accessible 24/7 and cannot be frozen in accounts.
How crypto is driving economic freedom
Requiring only an internet connection and start-up funds, Bitcoin (and cryptocurrencies in general) allows anyone around the world to create a wallet and start trading. One doesn’t need access to a large bank branch or lengthy paperwork, one simply needs an internet connection and a smartphone.
Curling back to the factors that contribute to economic freedom, cryptocurrencies are able to seamlessly check six of twelve of the categories of the Index of Economic Freedom through their innate properties.
- Trade Freedom [Market Openness]
- Financial Freedom [Market Openness]
- Business Freedom [Regulatory Efficiency]
- Labour Freedom [Regulatory Efficiency]
- Monetary Freedom [Regulatory Efficiency]
- Property Rights [Rule Of Law]
The remaining categories however revolve around the governments running the nations in question, particularly the rule of law and government size categories. Nevertheless, cryptocurrencies can still assist in creating better-functioning economies and provide the technology that allows for a more open and free financial system.
A free and open financial system
As cryptocurrencies remove the barriers of borders, they allow people to transact their money in the same way that they communicate with each other (through the internet). As the digital age continues to evolve, we are likely to continue seeing a significant increase in the level of economic freedom that crypto provides to users around the world, empowering both the individual and the nation.
Technical analysis is a method of evaluating the strength and weakness of an asset by collecting historical price data to identify trends. It involves using tools like charts, graphs, indicators or signals in order to compare them from past data in order to make predictions about what's going to happen next with the market for a specific financial instrument such as equities, crypto, commodities etc.
Technical analysis is a method of evaluating stocks, crypto and commodities using past market data. The goal here is to determine the future price movements. In contrast fundamental analysis which involves analyzing financial statements in order to assess what fair value would be for that company.
Technical Analysis can be applied to any security with historical trading data, such as cryptocurrencies, forex (foreign exchange), commodities and stocks.
Let’s now dive into the subject and learn more about the different tools and techniques that you can use for technical analysis.
The Market trend
The most important step in learning how to spot a trend is to figure out what one is. For any beginner in technical analysis, knowing how to identify the trend should be the first order of business. Let’s watch this Chart below:
We can here observe the three different trends:
The Uptrend: In an uptrend, the asset is going up and making higher highs with each wave. Each high is also greater than the last one, resulting in a series of higher lows as well that push prices even further upward.
The Downtrend: A downtrend is a pattern of decreasing price that continues until it breaks. It’s called "downtrend" because the asset keeps going down, making lower highs and lows each time they form.
The sideways trend: The asset trades between a dynamic range of prices in an horizontal channel.
You may as well encounter different terms such as “Bearish” and "Bullish" to refer to a trend. The term, Bullish comes from the bull who strikes upwards with its horns thus pushing prices higher; in contrast, Bearish comes from bear who drives down markets by striking downwards with their paws.
Resistance & Support
Understanding the support and resistance levels of a cryptocurrency can help you time your buying or selling to maximize profit. A technical trader identifies these points on their chart so they know where it's best to buy in, when there is likely an upcoming breakout, as well as knowing where not be eager with new investments because prices are more likely than ever before to reverse quickly at this price point. When the resistance level is broken, it usually becomes a support level and vice versa.
Support: Support is a level where buyers tend to concentrate, and this will help the downtrend that has been occurring stop or rebound.
Resistance: A level where an uptrend can be expected to pause or rebound. This is a concentration of sellers and indicates that the market may have reached its peak for now.
Candlestick
Candlestick charting is a popular way to track the market trend. Candlestick chart, is also known as a Japanese candlestick chart (Developed in Japan in the 1700s, historical records indicate that this tool was first used to track rice prices). This type of financial chart is used to track stock prices or other asset prices. The candlestick's shape can vary depending on the high, low, opening and closing prices of a given day.
A candlestick shows both bullish and bearish price movement over its duration, and gives more detailed information than the simple bar charts. A candlestick looks at the prices during a specific time interval, such as a day. The main feature which distinguishes this from other charts is the ability to plot each day's open, high, low and close values on a single chart.
This method of charting involves plotting price data over time on an open, high low and close basis with wicks projecting out from each end of the body for daily bars or just one day in higher timeframe charts.
Bullish candle: The close is above the opening (green)
Bearish candle: The close is below the opening (red)
Moving average and (MACD)
The moving average is a technical trading indicator that calculates the constantly changing stock price over time. It smoothes out this data by creating an average of different subsets to help investors make decisions on what direction prices are heading and how long they will continue to change in such directions. A moving average is a customizable indicator meaning that an investor can freely choose whatever time frame they want when calculating an average.
The Moving average convergence divergence (MACD) is a trend-following momentum indicator that looks at the relationship between two moving averages of an asset's price and gives traders an indication to changes in momentum, strength, directionality and duration of a trend for a given asset.
It combine these 2 moving average:
-A short-term moving average
-A long-term moving average
Chart interpretation:
The lines on the chart below can be interpreted as follows:
-If the green line (MACD) is above or crosses over the orange line (signal), it means that momentum for a certain market is bullish.
-On conversely, if the green line is below the orange one, then this shows bearishness in terms of momentum
-When the lines diverge, it denotes a strengthening of the current trend. However, when they converge, this shows that there is likely to be an upcoming reversal in trends.
-When they cross, this signals confirmation that we have evidence for a change in momentum.
Bollinger bands
Bollinger bands attempt to measure market volatility by creating a band around a moving average. This strategy was created by John Bollinger in the 1980s. They serve as a relative indicator of whether prices are high or low on a moving average.
Bollinger bands are typically used by traders who like to use a long-term approach. This technique can be applied to any major currency pair, as well as commodities and stocks. As opposed to short term strategies that try and capture very small price movements, this strategy works best when combined with a directional view where the trader believes that the market will either go up or down in the long run.
The main disadvantage to this technical analysis is that it is not as effective when markets are flat or choppy (trading range). This strategy can also be difficult to use for novice traders who do not have a good understanding of market conditions, and an entry/exit approach.
News are a big influencer of crypto prices
Cryptocurrencies are heavily influenced by speculation, and even a small piece of news can trigger multiple price reactions by investors.
For example, when Bitcoin Cash was launched on August 1st 2017, it resulted in a sharp decline in the price of Bitcoin as well as other cryptocurrencies as investors feared that a new competitor could undermine the value of existing cryptocurrencies.
The use of advance statistical techniques helps you to take into consideration past data to generate price forecasts. The best way to do this would be to look at historical prices and volumes for cryptos, and compare them to current data. This allows analysts and traders to gain some degree of insight on how the market price will react to future events.
Our aims is to help you grow your knowledge about trading and cryptocurrencies. That's why we're here to help you better understand Cryptocurrencies and trading technics. We want everyone who uses Tap not only to feel informed about market trends but also be inspired by crypto culture, which drives people like you and me into a passionate future for this technology.
If you wish to learn more find more resources in our dedicated education centre available here: Crypto Basics