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What is the Best Rebalancing Period?
This piece is the final article of a three-piece series. We're investigating whether there is an optimal rebalancing period in this article. The first article looks at whether portfolio rebalancing improves returns by looking at secondary, academic studies. The second article is a primary study that outlines the ideal conditions under which rebalancing outperforms. At Hodlbot, we automatically rebalance people's cryptocurrency portfolios. So inevitably, one of the most common questions I get is, what is the best rebalancing period I attempted to answer this in my last article by simulating 100,000 portfolios using the Monte Carlo method and found more frequent rebalancing did not have any effect.

Diversify Your Portfolio Across Cryptocurrency Exchanges ? HodlBot Launches a New Integration with Kraken
TLDR: At HodlBot, we are launching new integrations which will enable our users to diversify their assets across multiple cryptocurrency exchanges. If you're looking for a simple guide on how to set-up HodlBot with Kraken, check out this tutorial here. We started HodlBot in March 2018 with the goal of democratizing cryptocurrency investing for everyday people. A year after we launched, we've helped 10,000+ users diversify over $50 million USD. Our MVP was a simple trading bot that plugged into Binance. It automatically diversified your cryptocurrency portfolio across the top 20 coins by market cap. We've come a long way since then. Users are now able to create their own custom portfolios and custom indices.

Create and Manage Your Cryptocurrency Portfolio
At HodlBot, we're building tools to make cryptocurrency investing easy for everyday investors. While we've focused on building indices in the past, we understand that some investors want to pick their own winners. That's why we've decided to launch our new and improved create your own portfolio feature. First, select what coins you would like to include in your portfolio. You can do this by simply looking up a coin by its symbol or name. This list contains all 465 coins that are available on the Binance exchange. You can sort these coins by symbol, name, market capitalization, or 24H price change.

An Intelligent Crypto Trading Bot for Everyday Investors
We launched HodlBot in early April 2018 with the goal of democratizing investing for everyday people?. Our MVP was a simple cryptocurrency index called the HODL20 that anyone could invest in. All you needed was a Binance account. The HODL20 tracked the performance of the top 20 coins by market cap and made up of 87% of the entire cryptocurrency market cap. *HODL20 allocation as of March 25, 2018. Each coin is capped at 10%. Excess is re-distributed to holdings less than 10%. The default rebalancing period was one month.* It's been 5 months since we've launched. We've shipped a ton of updates to our product and I'm excitedto share with all of you what we've been cooking up.

Correlations Between Top Coins and the Cryptocurrency Market Dropped in 2019
Last year, I published an article which discovered that 75% of the top 200 coins by market cap had a correlation of 0.67 or higher over the last two years. In 2018, correlations between cryptocurrencies and the total cryptocurrency market were especially high. 75% of the top 200 coins by market cap had a correlation of 0.87 or higher. High correlations between individual coins are typically a really bad thing bcause it makes harder to mitigate risk by diversifying and it implies that the market cannot differentiate between good & bad projects. 2018 was bear market and it makes sense that correlations were high since the prices of all cryptocurrencies tumbled altogether.

Analysis: April 2019 Bitcoin?s Price & Trading Volume Spike Across Top Cryptocurrency Exchanges
I don't usually follow day-to-day Bitcoin price movements, but we haven't seen a day like this in a long time. Bitcoin's price shot from ~$4,100 to ~$5,000 (+22%) in the span of 48 hours. Times like these are interesting. Enhanced trading volumes and demand create unique market phenomena. One specific phenomenon is price discrepancy across cryptocurrency exchanges. If we look at prices on an hourly time-scale, you'll see that there is a clear price discrepancy across the top cryptocurrency exchanges. This is typical during a big run or sell-off. In this particular case, Bitcoin prices on Binance are lagging behind other major exchanges.

The Ultimate Guide on Cryptocurrency Indices
Stock indices are an age-old construct in traditional equity markets. They are designed to track the performance of the stock market as closely as possible. Ideally, any change in the overall market represents an exactly proportional change in the index. Indices, naturally, have been ported over to cryptocurrency. And here in the land of blockchain, they serve two purposes. Indices gauge how the total cryptocurrency market is performing. Firms use indices to create index funds. Passive investing has become very popular. Over the last 15-year period, 95% of active funds failed to beat index funds. Cryptocurrency index funds make it possible to get exposure to the entire market, in a low-cost way.

51% Attacks for Rent - A Threat to the Cryptocurrency Market
In order to remain decentralized, cryptocurrencies using a proof of work system must not allow a single party to control the majority of total hashing power. But as the global pool of hashing power grows more liquid, cryptocurrencies need to pass another important test. They must be able to resist an attack from the total rentable global hashing power for their specific algorithm. Otherwise, arbitrageurs may find it financially attractive to rent hashing power in order to perform 51% attacks. There are a few things preventing this from happening: But times are changing. The mining market is becoming more liquid.

The Best Crypto Trading Bots in 2019 - The Ultimate Guide
Simply put, a trading bot is a set of instructions that execute trades automatically without the need for human intervention. A trading bot has a few major components regardless of language & framework used. Running an algorithmic trading strategy blind is the best way to lose all your money. To see if your strategy works, you must backtest it against historical market data. Collecting this high-quality, tick-by-tick data is usually done by tapping into exchange APIs. CCXT is a great library that enables you to interface with a bunch of exchanges in the same manner. In order to simulate a realistic backtest, you should take into consideration latency, slippage, and trading fees.

Should You Rebalance Your Cryptocurrency Portfolio or HODL?
Rebalancing your cryptocurrency portfolio is generally better. We came to this conclusion after backtesting 10,000 portfolios and comparing each rebalanced portfolio to their drifting counterpart. But that does not mean, portfolio rebalancing is always better. There are situations when a buy & hold will outperform. Consider a 50/50 portfolio comprised of two-assets where one consistently outperforms the second. Asset A has an r of 0.0055%. Asset B has an r of 0.0025% In this context, portfolio rebalancing is worse since we're always taking away from the better performing asset, and redistributing it into the under-performing one.

How Whales, Bots and Manipulators are Beating Crypto Traders
For an investor to outperform the market, someone else must underperform.That is a simple arithmetic fact. In a fair and regulated environment, investors have equal access to information. Winners and losers are determined by whoever can make a better prediction. But cryptocurrency is the wild, wild west. Market participants don't play fair and they can profit at the expense of others. Here are the three types of traders that are kicking your ass Under Rule 10b5'1, the SEC defines insider trading as any securities transaction made when the person behind the trade is aware of nonpublic material information. Insider trading is illegal in almost all traditional markets. In a research paper published in 2010, Qin Lei found empirical evidence that insiders were able to consistently beat the stock market.

Why the Bitcoin Bubble Still Hasn?t Popped
In the last two years, we have seen an explosion in the number of cryptocurrencies. But with so many coins in the market, only a handful have seen any real use. Most projects have not come close to delivering on their grandiose visions. A recent research report published in August 2018 showed that only 36 cryptos in the top 100 have a working product. With so many useless projects floating about, we have to wonder why they're still around. Why have the bad ones not gone to zero What's taking the market so long to punish bad projects While we could blame it on a young market, I have a different theory: cryptocurrencies are too robust. It's too hard for them to die and it's causing the entire market to suffer.

What Are Stablecoins and How Do They Work?
Stablecoins claim to achieve price stability by pegging their own prices to stable assets like the USD. The promise of stability has led many to call stablecoins the holy grail of cryptocurrencies. Despite the praise, history has taught us over and over that currency pegs can break, and cause wide-spread catastrophe when they do. Despite this, the cryptocurrency community is determined in engineering stablecoins. Optimists believe price-stability will usher in mass adoption for cryptocurrencies. It's hard to pay for stuff using crypto when prices can fluctuate 20% daily. There are 3 main categories of stablecoins:

When Does Portfolio Rebalancing Improve Returns? - Analysis
This piece is the second of a three-piece series. This article is a study that covers the ideal conditions for portfolio rebalancing. The first article looks at whether portfolio rebalancing improves returns by looking at secondary, academic studies. The final article analyzes whether there is an optimal rebalancing period. Imagine that your portfolio is comprised 50/50 of assets A and B. When the market shifts, the two assets not will always move in the same direction. Therefore, the portfolio will eventually drift away from its target allocation. To maintain 50/50 composition, some of the better-performing assets must be sold in order to purchase the poorly performing asset. This is known as rebalancing. Portfolio rebalancing is usually used by investors to maintain their original asset allocations and risk level.

Binance Bots - A Roadmap for the Future
Credit to John Wu for this illustration Those of you who follow me know that I'm the founder of HodlBot. We built an easy way to diversify your cryptocurrency portfolio across the top 20 coins by market cap. Right now, our platform works on top of Binances API. So I was very disappointed to read that Binance had warned users to not give any third-party service providers access to your personal API key in an official announcement regarding the SYS incident This kind of unilateral statement punishes both negligent trading bots as well as security conscious ones like ours. I can understand why Binance has been unsupportive of commercial trading bots. The more people who use 3rd party bots, the more likely one will be compromised (some may even be a scam). When API keys are compromised and an attack happens, it's not the bot that gets plastered all over the news. It's Binance's brand and reputation that gets put on the line.

Bid-Ask Spreads on the Binance Exchange - Analysis
This piece is the second of a three-piece series. We're covering bid-ask spreads in this one. The first and third pieces cover order-book depth and slippage, respectively. Recall that an order book is just an electronic list of bids and asks for an asset, organized by price level. A bid refers to the highest amount of price you are willing to pay for an asset. An ask refers to the lowest amount of money you are willing to sell your asset for. The gap between the highest price someone is willing to pay for an asset, and the lowest price someone is willing to sell it for, is known as the bid-ask spread.

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