Daily Archives: June 8, 2022

Data shows the Bitcoin market has been stuck in a state of extreme fear since the 5th of May, meaning this run of bottom sentiment has gone on for more than a full month now.

Bitcoin Fear And Greed Index Continues To Point At An Extremely Fearful Market

According to the latest weekly report from Arcane Research, the crypto market is currently going through its longest run of extreme fear since the COVID crash back in 2020.

The “fear and greed index” is an indicator that tells us about the general investor sentiment in the Bitcoin and wider crypto market.

The metric uses a numeric scale that goes from one to hundred for displaying this sentiment. When the value of the index is less than fifty, it means investors are fearful at the moment.

Related Reading | Glassnode: Bitcoin Long-Term Holders Own 90% Of Supply In Profit

On the other hand, values of the indicator above the threshold imply that investors currently share a sentiment of greed.

Values towards the end of the range of below 25 and above 75 indicate sentiments of extreme fear and extreme greed, respectively.

Now, here is a chart that shows the trend in the Bitcoin fear and greed index over the past year:

The value of the metric seems to have been very low recently | Source: Arcane Research's The Weekly Update - Week 22, 2022

As you can see in the above graph, the Bitcoin fear and greed index is showing a value of 15 right now, suggesting that the general sentiment is that of extreme fear.

These low values of the metric have now been there for more than a month now. Such a long streak last occurred following the COVID crash two years ago. Then, the run lasted for 48 consecutive days before the sentiment saw any improvement.

Related Reading | Crypto Investors Find Safety In Stablecoins, Bitcoin, Ditch Altcoins En Masse

Historically, bottoms have tended to form during periods of extreme fear, while tops have occurred during extreme greed.

Because of this, some investors believe the former periods provide ideal buying opportunities for Bitcoin, while the latter could be fitting selling points.

The trading technique that follows this idea is called contrarian investing. Warren Buffet’s famous quote encapsulates it best:

Be fearful when others are greedy, and greedy when others are fearful.

If this philosophy is anything to go by, then the current sentiment may mean now could be the time to buy Bitcoin.

At the moment, it’s unclear how long this streak of extreme fear will last. It could be as long or longer than the last one, or the sentiment may soon see an uplift.

BTC Price

At the time of writing, Bitcoin’s price floats around $30.4k, down 3% in the past week.

Looks like the value of BTC has jumped back above $30k | Source: BTCUSD on TradingView

Featured image from Unsplash.com, charts from TradngView.com, Arcane Research

New York Governor Kathy Hochul has yet to publicly commit to signing a controversial bill that would ban proof-of-work (PoW) crypto mining, instead noting that her team will be looking “very closely” at the proposal over the next few months.

If she signs the bill into law, PoW crypto mining operations backed by fossil fuels would no longer be able to set up shop or renew existing licenses in the state of New York. Under the new regulations, only PoW operations backed 100% by renewable energy would be able to operate.

The New York State Senate passed the bill on June 3 to the dismay of members in the crypto community, meaning the bill’s fate is now in the hands of Governor Hochul, who has the power to approve or veto the legislation.

At this stage, it appears that the Democrat has no intentions of rushing the decision and may have bigger fish to fry with the upcoming primary election on June 28.

During a news conference on Tuesday, Hochul opted not to draw a line in the sand regarding the PoW ban, suggesting the deliberation process could take a few months:

“We’ll be looking at all the bills very, very closely. We have a lot of work to do over the next six months.”

On Tuesday, the Democratic candidates for New York governor — including Hochul, Congressman Tom Suozzi and Public Advocate Jumaane Williams — faced off in a debate ahead of the election.

Reporters such as Times Union’s Josh Solomon followed the event live and noted that Hochul suggested that her team hasn’t had time to fully review the bill but does support the idea of reducing the environmental impact of fossil fuel mining plants.

Hochul now suggests her team hasn’t had time to review the bill for crypto proof of work moratorium of new licenses and supports the concept of preventing fossil fuel plants from doing any harm to the environment. https://t.co/SDCHvNyzpb

— Josh Solomon (@therealjsolo) June 7, 2022

Speaking on the bill late last month, Hochul also stressed the need to balance both environmental protection and job creation.

“We have to balance the protection of the environment, but also protect the opportunity for jobs that go to areas that don’t see a lot of activity and make sure that the energy that’s consumed by these entities is managed properly.”

Related: Environmental groups urge US government to take action on crypto miners

PoW mining has been a highly divisive subject in New York over the past couple of years, with environmental groups such as the Seneca Lake Guardian speaking out, protesting and lobbying against Bitcoin (BTC) mining firm Greenidge Generation LLC in upstate New York on several occasions.

While a long list of organizations, businesses and labor groups also co-signed a letter in October 2021 calling on Governor Hochul to deny permits for PoW mining firms.

Paxos, a regulated blockchain infrastructure and crypto exchange platform, has today announced the launch of financial advisor crypto trading within Paxos Crypto Brokerage.

The new functionality allows broker-dealers to provide a comprehensive wealth management solution to financial advisors so that they can trade crypto on behalf of their clients.

Financial advisor crypto trading from Paxos also enables several unique capabilities including the ability for broker-dealers to enable registered advisors (RAs) and financial advisors (FAs) to trade or manage end-user assets at their discretion.

This comprises trade allocations, verifying the identity of RAs or FAs to satisfy compliance requirements via independent sanctions screening, and attaching an RA or FA to transactions to create a record of discretion for each trade.

Interactive Brokers, one of the world’s largest online trading brokerages with more than $320 billion in assets under custody, has already launched access to the financial advisory crypto trading to provide crypto access to its customers.

Kusama KSM is the “canary network” for the Polkadot blockchain, designed to facilitate an audit system for Polkadot. Kusama experiments with new features before they are deployed on Polkadot. The KSM token is the native cryptocurrency of the Kusama network.

Get updates on Kusama price in real-time on CoinStats, one of the best crypto platforms around.

Read on to learn everything you need to know about the Kusama KSM network and how to buy Kusama tokens in a few simple steps.

Let’s get started with the Kusama Pros and Cons list:

Pros

• Ability to scale: Kusama can scale an unlimited number of projects without slowing the network down.
• Eliminates the need for a hard fork: Kusama is fortified against disputes on network upgrades, and scalability, so hard forks are not likely to occur on the project.
• Decentralized governance: Kusama is truly decentralized as the KSM holders run the network rather than individuals.
• Highly secure: The Kusama network is highly secure, thanks to its decentralized nature, which leaves very little chance for the network to be compromised.
• Allows developers access to different blockchains: The KSM token offers developers more flexibility to access different blockchains.

Cons

• Competition: Kusama, like Polkadot, faces fierce competition against smart contracts and Proof-of-Stake projects.
• Not suited for all projects: Although Kusama is more than just a testnet for Polkadot, it’s still basically a testing ground for projects, some of which may not thrive on it and must be moved to Polkadot.
• Parachain limitations: Kusama and Polkadot’s Parachain seem superior to Ethereum in terms of scalability. However, for any application to be launched on Polkadot, it must already exist on another Parachain.

How to Buy Kusama KSM Tokens in 4 Quick Steps

As of publication, the Kusama KSM token is ranked #71 by market cap ($676 million in Q2 2022). The token is available on various crypto exchanges globally, including Huobi Global, Binance, Kraken, etc., and on decentralized exchanges, such as Uniswap and PancakeSwap. To purchase Kusama KSM, you first need to choose a platform that suits your investment needs.

Step #1: Choose a Trading Platform

Several cryptocurrency exchanges allow you to trade KSM. You’ll have to compare them to choose the one that supports Kusama and has the features you want, such as low transaction fees, an easy-to-use platform, and 24-hour customer support. Also, consider if the cryptocurrency exchange allows purchasing KSM with your preferred payment methods, such as a credit or debit card, another cryptocurrency, or a bank transfer.

Cryptocurrency exchanges can be centralized and decentralized, and each has several advantages and disadvantages:

Centralized Crypto Exchange

A centralized crypto exchange or CEX is like a traditional exchange for trading digital assets. CEXs are governed by a centralized system and charge specific fees for using their services. The bulk of crypto trading takes place on centralized exchanges, which allow users to easily convert their fiat currencies like the euro or dollars directly into crypto. Centralized exchanges require their users to follow KYC (know your customer) and AML (anti-money laundering) rules by providing some information and personal identification documents. However, a CEX holds your digital assets on its platform while trades go through – raising the risk of hackers stealing the assets.

Decentralized Crypto Exchange

On the other hand, a decentralized exchange (DEX) is not governed by any central authority; instead, it operates over blockchain and charges no fee except for the gas fee applicable on a particular blockchain, i.e., on the Ethereum blockchain. Decentralized exchanges use smart contracts to let people trade in crypto assets without the need for a regulatory authority. They deploy an automated market maker to remove any intermediaries and give complete control over the funds to users. Decentralized exchanges are less user-friendly from an interface standpoint and also in terms of currency conversion. For instance, they don’t always allow users to deposit fiat money in exchange for crypto; users have to either already own crypto or use a centralized exchange to get crypto. It also takes longer to find someone looking to trade with you as DEX engages in peer-to-peer trade, and if liquidity is low, you may have to accept concessions on price and quickly sell or buy low-volume crypto.

Step #2: Registration

To purchase KSM on a DEX, you simply need a crypto wallet with crypto funds that you can trade for KSM.

Below, we’ll focus on centralized platforms such as Binance, as it’s a popular choice globally.

To register on Binance, you need to provide your e-mail address or a valid phone number and create a strong password.

Binance allows customers to create accounts and perform limited transactions without submitting KYC information. However, to gain full access and increase higher deposits and withdrawal limits, you must complete the KYC verification process. You can deposit funds on the platform and start trading now that you’ve created an account!

Step #3: Deposit Funds

After verifying your account, you must deposit funds for purchasing KSM and other cryptocurrencies. Large platforms like Binance offer several options for fiat deposits. To buy Kusama, you can use a credit or debit card, bank account, or crypto from a cryptocurrency wallet. The payment method you use to buy KSM will be determined by the platform, location, and preferences.

You can also deposit your fiat funds onto your Binance account, trade them for popular crypto pairs, such as Bitcoin (BTC) or Tether stablecoin (USDT), and then exchange them for Kusama KSM.

NOTE: Always check and recheck the amount you want to deposit, as the transactions are often non-reversible.

A Few Tips for Beginners

Obtaining your first crypto as a novice can be a bit confusing, so here are a few tips to help you out:

Tip 1

Depositing BTC can take a little longer than depositing ETH and could come with higher fees. While low trading fees are never a guarantee, they depend greatly on your platform and the digital asset you purchase.

Tip 2

If you’re just starting, and this is your first deposit on a chosen platform, don’t go all in. Start with a smaller amount for your first deposit to gain exposure to various assets later. Once you get some experience, proceed to the amount you’d like to trade for Kusama tokens. Caution is never overrated, especially in the crypto world.

Tip 3

Before trading, check the token’s current price. The crypto market is volatile, and the KSM price fluctuates along with the rest of the crypto assets. Also, dive into trading strategies to make sure you know all risks and rewards.

Step #4: Buy Kusama KSM

Voilà! Now you are all set to buy KSM. Go to the navigation bar at the top of the page and open Funds> Balances to check your balance. To place an order for Kusama KSM tokens, go to exchange> Basic. We’ll assume you have BTC to trade, but there’s no difference in the process itself. Select BTC in the top right corner and search for KSM to order a trade. The KSM /BTC trading pair should be displayed.

Again, check the amount you wish to trade, as the process is not reversible. Place your order, and you’re the proud owner of your very own Kusama KSM tokens!

What to Do With Kusama KSM Tokens

Once you buy Kusama KSM on Huobi Global, Binance, or any other platform, you can store, stake, or sell them. Let’s revise your options below.

Option #1: Store Kusama

If you believe Kusama is a profitable store of value and could increase in price, you can store the tokens for the long term. While you can keep your newly purchased KSM tokens right on the trading platform, many traders prefer to store their digital assets in their private crypto wallets. We distinguish between a Software Wallet (Hot Wallet) and a Hardware Wallet (Cold Wallet).

If you’re looking to trade KSM regularly, software or hot wallets provided by your selected crypto exchange will suit you. Software wallets are user-friendly and free to use.  They store your keys online and are less secure than hardware wallets, but their ease of use makes them ideal for newbies with a few tokens.

Hardware or cold wallets, such as a Ledger hardware wallet, are usually considered the safest way to store your cryptocurrencies as they offer offline storage, thereby significantly reducing the risks of a hack. They are secured by a pin and will erase all information after many failed attempts, preventing physical theft. A hardware wallet also lets you sign and confirm transactions on the blockchain, giving you an extra layer of protection against cyber-attacks, phishing sites, and malware. These are more suitable for experienced users who own large amounts of tokens.

Option #2: Stake Kusama

There’s nothing wrong with storing your Kusama in a hardware wallet. Hardware wallets, however, aren’t a great option if you intend to put your tokens to good use. Kusama Network provides a staking option for holders, letting them earn interest on their tokens.

Any Kusama token holder can generate income through validating transactions using their tokens and temporarily locking them on the Kusama, earning rewards for participating in the Proof-of-Stake consensus mechanism.

However, the KSM price is volatile, and staking could be risky. So make sure to monitor its market cap, price fluctuations, and cryptocurrency market general trends through various crypto portfolio trackers, such as CoinStats, CoinMarketCap, CoinGecko, or Messari.

Option #3: Sell Or Exchange Kusama Coins

Any trader can choose to exchange their Kusama tokens at any point during their journey. If you buy Kusama, then realize you don’t want to keep it any longer; you can simply exchange it for other digital assets or exchange it for fiat to leave the game entirely.

You can sell your KSM tokens on the same trading platform you purchased them.

Now that you have plenty of choices, we’re confident that your newly purchased Kusama will serve you well.

Conclusion

Kusama is a great network for experimenting with the effectiveness of new features before proceeding with the official launch on the Polkadot network. Kusama offers a flexible governance system, low staking requirements, and an elaborate reward system. If you want to participate in all the fun but are unsure where to start, this guide will hopefully give you a bit of direction.

It’s not possible to buy Kusama directly on Binance, but you can buy Bitcoin with a credit card or debit card on Binance and then exchange that for Kusama.

You can also visit our CoinStats blog to learn more about wallets, cryptocurrency exchanges, portfolio trackers, tokens, etc., and explore our in-depth buying guides on buying various cryptocurrencies, such as How to Buy Metaverse Index, What Is DeFi, How to Buy Cryptocurrency, How to Buy VeChain, etc.

Investment Advice Disclaimer: The information contained on this website is provided to you solely for informational purposes and does not constitute a recommendation by CoinStats to buy, sell, or hold any securities, financial product, or instrument mentioned in the content, nor does it constitute investment advice, financial advice, trading advice, or any other type of advice.

Cryptocurrency is a highly volatile market, do your independent research and only invest what you can afford to lose. Performance is unpredictable, and the past performance of Kusama is no guarantee of its future performance.

There are significant risks involved in trading CFDs, stocks, and cryptocurrencies. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider your own circumstances and take the time to explore all your options before making any investment.

We’re thrilled to announce that Kraken now supports Ambire AdEx (ADX), BitDAO (BIT), Chromia (CHR), COTI (COTI), GensoKishi Metaverse (MV), Alien Worlds (TLM) and Terra Virtual Kolect (TVK)!

Funding and Trading

Funding is live, and trading will begin on June 9 at approximately 14:30 UTC. Keep an eye on the status page for updates.

You can add these tokens to your Kraken account by navigating to Funding, selecting the asset, and hitting Deposit. Deposits require 20 confirmations (~5 minutes).

All tokens are tradeable against USD and EUR on Kraken and the Kraken Pro interface with the following price precisions and minimum deposits:

Note:

• GensoKishi Metaverse (MV) trading is not available to residents of the United States, Canada and Japan.
• Trading via Kraken App and Instant Buy will be available once the liquidity conditions are met (when a sufficient number of buyers and sellers have entered the market for their orders to be efficiently matched).

Here’s what you need to know about the assets:

Ambire AdEx (ADX)

AdEx is a secure and transparent decentralized advertising platform. The protocol was created as an alternative to traditional advertising networks and reduces the ability for network users to report false data. The ADX token is used to create and bid for advertisements on the network.

BitDAO (BIT)

BitDAO is one of the world’s largest decentralized autonomous organizations (DAOs). With a vision of open finance and a decentralized, tokenized economy, BitDAO looks to provide grants for development of decentralized technologies. These include decentralized finance (DeFi) protocols, governance products, privacy services, non-fungible tokens (NFTs) and more. ‌BitDAO is governed by BIT token holders.

Chromia (CHR)

Chromia is a Layer 1 blockchain and relational database for decentralized applications that aims to overcome the limitations of other networks, such as high fees or poor scalability. Chromia’s unique architecture makes it particularly useful for complex datasets. Chroma (CHR) serves as the network’s native utility token, allowing holders to pay for services across the network and earn rewards for helping to secure the network via its staking mechanism. 

COTI (COTI)

COTI is a blockchain based decentralized payment platform created for enterprises, governments and decentralized application developers. COTI utilizes a directed acyclic graph architecture to increase scalability and decrease fees associated with sending digital payments. The COTI token can be directly transacted between users, staked for additional rewards or used to pay for service fees across the COTI ecosystem.

GensoKishi Metaverse (MV)

GensoKishi is the blockchain-based, play-to-earn-powered evolution of Elemental Knights, the popular MMORPG game. GensoKishi aims to build an online metaverse and economy where users can create, buy and sell in-game characters, assets and land. The MV token can be used for accessing exclusive games and events within the gaming metaverse and unlocking discounted prices for in-game items.

Alien Worlds (TLM)

Alien Worlds is a play-to-earn metaverse game where players use spacecraft to engage in missions and mine for valuable resources. A cross-chain bridge allows for the transfer of the game’s native token, Trilium (TLM), between Binance Smart Chain (BSC), WAX and Ethereum. TLM powers Alien World’s in-game economy and can be used to buy assets represented as non-fungible tokens (NFTs) and staked to participate in game governance.

Terra Virtua (TVK)

Terra Virtua is a blockchain-driven collectible platform focusing on virtual reality. Users can collect, display and interact with NFT collections through unique, social focused experiences. Terra Virtua is fueled by the Kolect token (TVK) and is used to create collectibles, farm exclusive NFTs and reward players for completing in-game quests on the platform.

Will Kraken list more assets?

Yes! But our policy is to never reveal any details until shortly before launch – not even which assets we are considering. All of Kraken’s listed tokens are available on our website, and all future tokens will be announced on Kraken’s blog and social media profiles. Our client engagement specialists cannot answer any questions about which assets we may be listing in the future. 

Trade with caution

There is no guarantee that a limit order will execute. There is also no guarantee of executing at a certain price for a market order. The availability and liquidity of the particular digital asset will impact these types of orders.

Listing an asset or token for trade is not a recommendation to buy, sell, or participate in the associated network. Do your own research and invest at your own risk.

LINK remained close to a one-month high earlier in today’s session, as crypto markets shook off some of Tuesday’s volatile moves. Although price volatility remained, bulls returned to show force, with ADA continuing to climb higher this week.

Chainlink (LINK)

LINK was trading around a one-month high during today’s session, following a recent four-day bull run.

The run commenced near a support level of $6.70, and took price above its recent resistance point of $8.80.

As a result of this move, LINK/USD rose to a four-week high of $8.95 late on Tuesday, with prices peaking at $8.86 so far in today’s session.

Looking at the chart, the move also comes as the 10- and 25-day moving averages crossed, which is the first time this has happened since March 20.

In addition, the 14-day Relative Strength Index (RSI) is hovering around 56.21, which is its highest reading in over two months.

So far, LINK bulls have relaxed following earlier highs, likely as bears re-entered at resistance. The question now is whether we will see a breakout this week.

Cardano (ADA)

Whilst LINK has risen for four straight sessions, ADA climbed for a fifth-consecutive day on Wednesday, as prices broke through resistance.

ADA/USD rallied to an intraday peak of $0.6537 earlier today, which is its highest point since May 31.

Today’s move saw prices push past the ceiling of $0.6460, hitting a nine-day high as a result of this surge.

While bullish momentum is still present in ADA, traders will likely be looking to go from a one-week high, to a one-month peak, by eclipsing the $0.6897 point.

One resistance has already been eclipsed, as the RSI moved beyond its ceiling at 54.50, and hit a two-month peak.

A drive to the $0.6897 point could come as early as this week, and if it does, bears will likely be waiting to hold the line of resistance.

Which token will break out from resistance first, LINK or ADA? Let us know your thoughts in the comments.

Eliman Dambell

Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.