Why is Bitcoin dominance important? The Bitcoin dominance index (BTC.D) is a ratio of Bitcoin (BTCUSD) capitalization to the overall capitalization of the cryptocurrency market. In other words, an upswing in Bitcoin dominance signifies an increased investment in Bitcoin compared to altcoins. This results in two potential outcomes: either BTC is growing faster than altcoins, or its decline is more gradual.
Since the beginning, Bitcoin has dominated the digital asset market. Currently, the dominance index has dropped to 50% and fluctuates within this range. However, on a global scale, Bitcoin dominance has recently burgeoned. This is due to the struggle of the American regulator against altcoins, which the SEC regards as attempts to circumvent coin issuance legislation.
But it is critical to remember that the Bitcoin dominance index does not directly reflect its value. That is, a lofty index does not necessarily mean that BTC is expensive. Instead, it acts more as an indicator of the market activity, helping to understand whether traders’ focus rests on the leading cryptocurrency or shifts towards altcoins.
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However, the decline in metrics most often hinges on altcoins, not Bitcoin itself. This is quite logical, taking into account that new altcoins appear every day, enabling even modest investments to acquire millions of specific coins for potential gains.
Granted, Bitcoin remains the premier investment and trading instrument, sustaining its popularity. Nevertheless, over the recent years, BTC has surrendered a substantial share of its market dominance.
The weight of BTC is huge, and a bitcoin rate forecast is often perceived as a prediction of the market’s overall sentiment. Investors can wield BTC dominance as a gauge when deciding to diversify their crypto portfolio.
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The current growth of the BTC.D is attributed to several factors. First, Bitcoin is the most popular and well-known cryptocurrency, enticing continued investment. Secondly, Bitcoin is being used as a store of value and medium of exchange, which bolstered its market capitalization. Thirdly, numerous large companies are actively accepting Bitcoins as payment for their goods and services, augmenting its demand.
Also, the potential for continued growth looks quite promising since a call-to-put options ratio is exceeding zero, indicating the predominance of growth proponents. The recent introduction of derivatives at the end of June led to the Bitcoin’s growth by $7000, a commendable feat. At the moment, we can observe a minor correction and a pullback of the price.
Bitcoin dominance is also associated with its mining. With recent years having witnessed a surge in mining’s appeal due to its high profitability and low competition, there are more and more wallets containing freshly mined coins. The impact of such wallets is still difficult to track due to scant data. Nevertheless, it is safe to say that the volume of mining-generated coins continues to increase.
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Although mining has become more complex, rendering the endeavor more intricate and costly, new mining facilities are cropping up worldwide. While the USA maintains its leading role, Russia and Asian countries are gaining prominence.
Despite the propagation of altcoins, the dominance indicator is poised for further growth. Bitcoin price remains relatively stable compared to multiple altcoins. Often, while the rest of the market loses 10% or more per session, Bitcoin’s decline is contained within 3% at best. As a result, the relative share of Bitcoins within the total crypto market cap enlarges.
Also, the relatively stable BTC rate offers investors a certain degree of protection, akin to gold in stock and currency markets. This leads to the outflow of substantial funds from the altcoin markets towards Bitcoin.
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The clouds are gathering over altcoins, with the SEC increasingly engaged in crypto affairs. Unfortunately, the majority of these tokens serve (or have served) as conduits for money laundering, income obfuscation, and tax manipulation. And although they are in the shadow of Ripple (XPRUSD), facing likely perpetual litigation, officials continue to hunt for small altcoin-engaged companies.
The leaders of the total capitalization constantly fight for market share. The success of one project often entails a dent in other coins’ dominance due to the interception of their market share.
However, the Bitcoin dominance index also has its drawbacks. Firstly, a high concentration of Bitcoin’s assets renders it more vulnerable to market changes. Secondly, the growth of the dominance index may lead to diminished interest in other cryptocurrencies, potentially impeding their growth.
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In general, the Bitcoin dominance index assumes paramount importance for investors and analysts aspiring to see Bitcoin’s effect on the crypto market. Nonetheless, this indicator should constitute merely one among numerous investment decision benchmarks.
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Margin trading is becoming increasingly popular among investors seeking to amplify their trade power. However, choosing the right margin trading facility service provider is key to succeeding in this venture. With diverse options available, investors must carefully evaluate various factors to choose the provider that best aligns with their trading objectives and risk tolerance levels. In this blog, we will discuss some essential things you should consider when selecting an MTF service provider.
Key Factors to Consider While Selecting an MTF Provider
Regulatory Compliance and Reputation
Before anything else, it’s important to check whether the chosen MTF provider complies with regulations or not. Opt for providers licensed and regulated by reputable financial authorities, as they inspire greater trustworthiness. Also look into past performance records, customer reviews and any history of regulatory fines to assess provider’s reliability. Working with an established name gives you peace of mind as they have built a good track record over time making them a safer choice in comparison to the new ones that could be fraudulent in nature.
Margin Requirements and Leverage
Evaluate the leverage offered as well as the margin requirements, as these significantly influence outcomes. While higher leverage can amplify gains, it also entails greater risks. Strike a balance between potential profits and risk management strategies that align with your tolerance levels and trading objectives.
Range of Tradable Assets
Diversification is key to a well-rounded trading portfolio. Ensure that the MTF provider offers a diverse range of tradable assets, including stocks, commodities, and forex markets. This diversification not only enables you to capitalise on price fluctuations but also mitigates risks associated with specific sectors or industries.
Trading Platform and Technology
Your chosen MTF platform will form the backbone of your trading activities. Prioritise platforms with advanced features such as real-time market offers, comprehensive charting utilities, and a variety of order types. Opt for stability, security, and compatibility with popular devices and operating systems to minimise disruptions to your trading workflow.
Costs and Fees
In margin trading, various charges are incurred such as commissions, spreads, financing rates, etc. Conduct a comparative analysis across various MTF providers and pinpoint the cost-effective settlement for you without sacrificing quality. Pay close attention to hidden fees that can accumulate over time.
Risk Management Tools
Effective risk management is a must for capital preservation and reducing loss in margin trading. A forex brokerage is not a place where traders can make a fortune easily. If you have decided to become a successful MTF trader, select a broker with effective risk management tools like stop-loss orders, limit orders, margin call alerts and risk analysis functions. Such tools empower traders to optimally deal with market fluctuations with confidence.
Customer Support
During turbulent market conditions or technical issues, efficient customer support is indispensable. Evaluate the accessibility and responsiveness of the provider’s technical support team across various communication channels, including mobile, email, live chat, and social media platforms.
Educational Resources and Analysis
If you wish to progress your trading skills and develop the quality of your decisions, it’s a must to never stop the learning process. A reputable MTF should have generous educational resources, financial market research, and the best analytical tools on its platform to enhance your trading knowledge and decision-making capabilities.
Execution Speed and Liquidity
Instantaneous order execution and exposure to vast liquidity areas are two very important factors which need to be taken into account if one wishes to succeed in trading. Assess the provider’s ability to swiftly execute trades and provide ample liquidity, particularly for high-frequency trading strategies.
Security and Account Protection
When deciding on an MTF service provider, security should be a top priority at any time. Make sure the service provider uses well-structured security measures to protect your funds, personal data and trading information available to the market. Look for features such as encryption, two-factor authentication, and segregated client accounts to minimise the risk of unauthorised access or data breaches.
Additional Services and Features
Consider additional services and features offered by the MTF provider, such as demo accounts, social trading platforms, and customisable interfaces. These extras can enhance your trading experience and provide added value beyond basic margin trading facilities.
Conclusion
To put it briefly, selecting the best MTF service provider requires thorough consideration of various criteria, including regulatory compliance, margin requirements, trading and more. Lastly, perform in-depth research and analysis to identify the provider that best aligns with your trading goals and preferences, thereby minimising risks and maximising returns in margin trading. Stay informed, exercise due diligence, and adapt to the ever-changing market dynamics to thrive in margin trading.
Mona Patel, a renowned entrepreneur and philanthropist, has captured headlines with her remarkable achievements. Hailing from Vadodara, Gujarat, India, Patel embarked on her journey to the United States at a young age to pursue her entrepreneurial aspirations. She is a trailblazer in various fields, including business, education, and philanthropy. Her dedication to empowering women and supporting meaningful causes has earned her widespread recognition.
Remarkable achievements and relentless dedication mark Patel’s career trajectory. She holds an impressive array of qualifications, including a Bachelor of Science degree in Computer Science from Gujarat University, a Master of Science degree in Real Estate and Finance from the University of Florida, and a Master’s degree in Business Administration from MIT Sloan School of Management, among others.
Her professional journey includes pivotal roles in esteemed organizations such as Creative Choice Group, Select Radiology, Monalisa Properties, Teliradx, HauteX Ventures, M1 Imaging, CareFirst Imaging, Culture For Cause, and RadXai. As the Co-Founder, CEO, and CFO of various ventures, Patel has demonstrated exemplary leadership and innovation, contributing significantly to the business landscape.
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Mona Patel’s Net Worth
As of 2024, Mona Patel’s net worth is estimated to be approximately $1.2 billion. This substantial wealth is a testament to her entrepreneurial acumen and strategic investments across diverse sectors. Patel’s multifaceted business ventures have not only propelled her financial success but also enabled her to make a meaningful impact on society through philanthropy and social initiatives.
Mona Patel Age
Born on April 28th, Mona Patel’s age aligns with her dynamic personality and visionary leadership. As a Taurus by zodiac sign, she embodies qualities of determination, resilience, and creativity, which have been instrumental in her journey to success.
Mona Patel Family: Husband
In her personal life, Mona Patel shares a fulfilling relationship with her husband, Chintan Desai, a successful businessman. The couple exchanged vows on November 29th, 2007, and their enduring bond is evident through their cherished moments shared on social media.
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Mona Patel Height and Weight
While specific details regarding Mona Patel’s height and weight are not readily available, her towering achievements in business and philanthropy speak volumes about her stature as a dynamic leader and role model.
David Yong is the CEO of Evergreen Group Holdings, a prominent Singaporean businessman, lawyer, and K-pop artist. He owns over fifteen firms spanning various industries, including wood, real estate, food and beverage, lifestyle, and finance.
Yong began his career as a trainee lawyer before joining his family’s firm in 2014. He oversees over fifteen companies, diversifying his father’s company with a strong focus on the Indochina region under the corporate umbrella of Evergreen Assets Management.
David Yong’s Net Worth:
David Yong’s estimated net worth in 2024 is $16.7 million. His wealth stems from reported shares across multiple companies, including Processa Pharmaceuticals, Inc., and QUESTCOR PHARMACEUTICALS INC. He also owns fifteen homes in Asia and holds $90 million in cash.
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David Yong Age:
David Yong is 36 years old.
David Yong Family: Parents:
Yong’s father is Yong Ing Fatt, who laid the foundation for the family’s timber logging business in Indochina. David followed his father on business trips and learned the ropes of the industry from a young age.
David Yong Height and Weight:
There is no specific information provided regarding David Yong’s height and weight in the referenced content.
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