CRYPTOCURRENCY
Currency Peg, Scalping, Hedera (HBAR)
“Volatility of the Crypto Currency Market and its impact on trading strategies: a study of Crypto currency, currency wedges, scalpation and HEDER HASHGRAPH (HBAR)” **
The world of cryptocurrency has experienced unprecedented volatility in recent years, and prices have been fluctuating wildly between days and even hours. One of the main factors that contributes to this volatility is the lack of a stable currency, which can lead to significant prices changes. In this article, we will break into the concept of a currency wedge, a strategy of scanning and their relationship to the trading of the cryptocurrency.
What is a currency?
PEG currency is a mechanism that maintains the value of one currency relative to the other. When the land or financial institution attracts its currency as a foreign currency, it undertakes to exchanged a certain amount of currency bound to a target currency with a fixed rate. This ensures that the value of the related currency remains stable and predictable.
CRIPTO Currency PEG
The cryptocurrency market was largely accepted by the PEG currency model, where Bitcoin (BTC) is often used as a reference point. The most famous example is the Bitcoin-USD (US Dollar) PEG, which in some internet stock exchanges repair the price of BTC at $ 6,000 per money. This ensures that traders can easily understand and predict the value of their crafts.
Scaling strategies
Scalp strategies include a large number of small crafts in a short period to use the market fluctuations. Scalpers aims to profit from rapid movement prices in cryptocurrencies markets, using small differences between prices and exploiting these inefficiency.
Some popular scalp strategies include:
* Trend following
: Identifying trends and predicting future prices movements.
* Scheduing : Buying or selling when the price is in a particular range, which allows it to buy low and sell high.
* Middle Reversion : betting that prices will return to their mean value over time.
HEDER HASHGRAPH (HBAR)
HEDER HASHGRAPH is an open, decentralized and scalable blockchain platform developed by the German Hashgraph GmbH Crypto Crypto Customer Company. Started in 2019, Hbar wants to provide a quick, safe and energy -efficient alternative to traditional blockchains.
Key features Hbar
* Scalable
: HBar architecture is designed to support up to 64,000 transactions per second, which makes it an ideal trading platform and high speed apps.
* Energy efficiency : Hbar uses a new consensus algorithm that consumes significantly less energy compared to algorithms of traditional evidence (POW).
* Smart Contracts : Hbar supports the creation of smart contracts using the original crypto currency, Hbar Tokens.
Relationship between currency currencies, currency wedges, scalp and hedra hashagraph
Although Hbar is a separate entity with its own architecture and features, it can be integrated into various crime trading strategies. The key relationship that observes here is the influence of currency connections on the strategy of scalagation:
* Price stability : When the currency is established, it provides stability of prices to traders who rely on it as a reference point.
* risk management : Currency starts can help manage risk limiting potential losses from major prices changes.
However, if the currency peg separates from its fundamental value or become more unstable due to external factors (eg central bank action), the strategy of scaling strategies may need to adapt to these changes. This is where he plays HEDER HASHGRAPH:
* Decentralized Finance (Dead) : Hbar -O’s architecture allows you to create a defined application that acts on top of their blockchain, allowing decentralized lending, borrowing and trading.
