Libertex was recognized as the best trading application and cryptocurrency broke

[Libertex]

Libertex signs a strategic partnership with FPM Global family

Libertex is pleased to announce that it is now partnered with Financial Partners Marketing Global (fpm.global) to offer top level services for all its affiliate partners. The agreement, already in effect as of the time of press, will see Libertex affiliates benefit from FPM Global’s expertise in providing bespoke marketing solutions for the finance industry.
The top-tier trading platform for everyone
Libertex is a fast, user-friendly trading platform that enables users to trade on the financial market 24/7 on the web or via smartphone app. The broker offers over 230 financial instruments including stocks, shares currencies, indices, oil and gas, precious metals and more. With over 20 years of financial market and online-trading experience, Libertex has won over 30 international awards, including two accolades for Best Trading Platform from Forex Report and European CEO magazine in 2020.
FPM Global: marketing solutions for finance, forex, crypto
FPM Global is a new affiliate company formed by industry leaders, with a mission to bring the best  in affiliate marketing to every kind of financial enterprise. FPM Global’s other partners include StormGain, a trading platform specialized in cryptocurrencies. Libertex, which also supports several cryptocurrencies among other financial assets, is pleased to offer the benefit of FPM Global’s expertise in all sectors of the financial market.
FPM Global and Libertex have confirmed that there will be a ‘seamless takeover’ for existing Libertex affiliates, who have been informed that their existing data, contracts and credentials will remain the same.
Both companies are proud to welcome current and potential affiliates to the FPM Global community. For interested parties, the details about Libertex’s affiliate partnerships can be found here, and information on Financial Marketing Partners Global’s affiliate payment plans here.

[Libertex]

Bitcoin & co., what are they ultimately for? Invest in Bitcoin halving expectation

Eduardo Strecht Ricou, Libertex Senior Analyst
I am often asked if I have a favourable or unfavourable opinion regarding the world of cryptocurrencies. I answer them with a question: “Do you know what Bitcoin is for?”
They sometimes answer that they’re “not sure” what Bitcoin is for, but that they heard the neighbour screaming out the window that he had made money buying and selling Bitcoin.
What is Bitcoin? A new revolution in the technological world
I am not referring to artificial intelligence or robots, but yes, to the world of cryptocurrencies. Everyone has heard a lot about this type of active crypto, the most famous being Bitcoin, as well as others like Ripple.
Bitcoin was created to make payments over the internet in a faster, safer and cheaper way, in addition to being a decentralized means of payment.
Blockchain is the basis of all cryptocurrencies. Without blockchain, Bitcoin would not exist
The subject is a bit technical. Blockchain is basically a global data book that contains all the reliable records, since all transactions are validated before a new block is composed. It is said to be so safe that it was even nicknamed “trust protocol”, that is to say, the reason for decentralization, in other words, that no one regulates or controls it. It is expandable, simply validating the data and records that are protected by advanced cryptography, not allowing the source data to be removed, revised or modified.
As it is a new technology, there is still much to explore and develop. The time of transactions must decrease. The validation of data, the lack of supervision and regulation can be seen as very libertarian, as well as a great danger, because users aren’t endorsed or protected by any corporation, public entity or state in the event that something bad happens, such as a hack.
Bitcoin mining involves the use of different equipment and media
The crypto miner has a complex job ahead. For Bitcoin mining, machines and computers with a high capacity are needed. Consequently, the energy cost to keep the machines running all the time in order to obtain tokens is very high.
To mine Bitcoin, we need computers like the ASIC, more commonly known as Antminers, which offer a fairly high TH/s rate compared to graphics cards (GPUs). The first problem is its very high acquisition price, with an average cost of around $2,000. It is clear that technological advances and new solutions will reduce the cost of acquisition in the future, forcing the manufacturers of these pieces of equipment to improve their machines every day. All this for important events such as the one we are facing with Bitcoin, the halving.
In a nutshell, the halving process is nothing more than halving the value of Bitcoin.
What is the meaning of the halving of the Bitcoin block?
Halving decreases the number of new Bitcoins generated per block. This means that the supply of new bitcoins is less.
In trade, lower supply with stable demand generally leads to higher prices. Since halving reduces the supply of new bitcoins, and demand generally remains stable, halving has generally preceded some of Bitcoin's biggest hikes. In 2012 and 2016, we had two halvings. The idea was developed to have programmed currency issuance and decrease over time, and that is why the cut in the miners’ reward is applied.
Halving has an impact on bitcoin mining, and by cutting the reward for mined blocks in half, the profitability to maintain the equipment is affected due to the drop in miners’ income.
The processing power of the Bitcoin network will undoubtedly increase with the halving event and the arrival of new miners on the market, equipped with chips that can provide greater power and efficiency. This is something that we will see more frequently after 12 May, next halving date.
There is a hypothesis that miners and mining groups will disconnect their equipment due to the losses that the halving event would cause. However, as we already mentioned, this cut in the issuance of coins could cause a price increase, such that it manages to balance economic calculations. However, there is a fair bit of doubt about how long it will take for the Bitcoin price to rise.
Therefore, since I don’t consider Bitcoin to be an asset, I also don’t need to consider the traditional and common currency that allows me to buy a coffee in the morning, without having to worry about the sudden change in value in relation to the US dollar.
Bitcoin is more than everything in its romantic essence: a decentralized, fast and secure digital payment method accessible to everyone
As I explained above, the cost of the miner can be very high. Therefore, the commissions as a percentage of the value of Bitcoin is what will create the solution to trade in the unregulated system of Bitcoin, so that miners are rewarded for their crypto services. With the cost of energy entering the equation, it is necessary to have the equipment in continuous operation.
According to a study carried out by the Dutch bank ING, 211 kWh are consumed to validate a BTC transaction. Said consumption has the capacity to supply a home for one month; hence, the electric bills of those who mine BTC are very high.
So, if the miner keeps half of his Bitcoin in the halving, with the high energy costs and the maintenance of his machines for the processing of Tokens, only the miner will survive if the price of Bitcoin rises and rebalances the mining cost; although today you can mine Bitcoin in Cloud Mining. This allows you to execute the extraction process without requiring the use of so many resources. Cloud mining is simpler: with a home computer and internet, we can connect to the cloud and process the algorithms remotely without the need for a machine (hardware), since it is a third party that supplies the machine to us. But alas, it is not profitable, even if it the energy costs are reduced for the machines.
Traders and investors therefore have the opportunity to buy and sell Bitcoin, but be aware that the idea of listing Bitcoin greatly undermines its initial concept, the introduction of many speculators and the absence of more consistent news in the crypto world, brings a lot of noise and volatility to the cryptocurrency markets, removing the stability factor that is so necessary to a global currency for the exchange of goods and services on the planet.

After the crypto fever in 2018, we witnessed a correlation between Bitcoin and gold, from April to November 2019. The theory was that Bitcoin is just like gold. It does not have any yield or interest rates, and is used by large investors as an instrument for diversifying portfolios by risky assets. Some analysts have come to place Bitcoin as a protection instrument against turbulence in the financial markets.
What really happened in these last four months leads me to the conclusion that there is no correlation with gold, or with anything, for the simple reason that it is a digital currency, and what drives the price is more than just the news: if the Libra project goes ahead on Facebook and Bitcoin is dethroned. After the quarantine period, globalization will slow its pulse; will we return to regional and local trade? This would not be very positive for Bitcoin. The new needs created by the virus are increasingly launching us into the digital world. Will this be positive for Bitcoin?
There are some issues we may have to tackle in the uncertain months coming up ahead of us, as well as new solutions and inventions or opportunities.
But beware, Bitcoin is not the dollar, nor will it be in the coming years, and there are three reasons for this
The first: to relaunch the economy, the states and central banks must continue on a path of expansion and growth, and that implies the issuance of money, a lot of money.
The second reason is that in these last few months, the dollar was highly effective in solving merchandise payments with the planet practically all locked up at home.
The third reason is the very high volatility, although after the collapse in early March, Bitcoin managed to recover up to $7,500. That being said, I don’t see it taking off like gold. Seeing the dollar, by measurement of the dollar index (basket of six currencies against the dollar), with a very stable trend and reduced volatility, is more than essential in times of great turbulence in the financial markets, and when facing total uncertainty of the near future.
In short, I believe in the concept as an investor, it is very attractive for the future, but there are risks of price volatility, of being new, of being dethroned by the Facebook Libra, or of not being accepted and used on a large scale for the payment of goods and services. For the traders, it is very important to follow up on the news that has a great impact on the price of Bitcoin, just as the analysis of graphics helped us understand how the public reacted to Bitcoin at certain moments in the market.
Don’t miss the chance to buy Bitcoin now before the halving with Libertex.

[stormgain.com]

 

[Libertex]

Tottenham Hotspur Announce Multi-Year Partnership With Libertex
Libertex has become the Official Trading Partner of Tottenham Hotspur.

Driven by their determination to be the best, this partnership will showcase the progressive outlooks and commitment to continued improvement that enables Libertex and Tottenham Hotspur to perform at the highest level in their respective fields. Since 1997, Libertex has been at the forefront of cutting-edge developments in the trading markets, with the company’s innovation rewarded with over 30 prestigious industry awards. In keeping with their club motto, ‘To Dare Is To Do’, Tottenham Hotspur adopts a similarly pioneering approach in the modern game, investing in the latest technological developments to help deliver on-pitch success, epitomised by their world renowned, state-of-the-art stadium.

Spurred on by their ‘Trade For More’ ethos, the partnership will allow Libertex to share their love of the game with over 2.2 million of its international clients, offering a host of unique and exciting rewards, including exclusive events and premium matchday experiences at the Tottenham Hotspur Stadium, when fans can safely return to stadia. Libertex will also have a presence across the club’s digital channels and LED perimeter advertising system on matchdays.

Marios Chailis, Chief Marketing Officer at Libertex said: “Libertex could not be happier to partner with a team whose values echo our own so perfectly. Through this multi-year partnership, we’re thrilled to join the worlds of football and trading in the form of many exciting benefits for our clients and look forward to cheering on Spurs when they return to the pitch.”

Tottenham Hotspur Head of Partnerships Fran Jones commented: “At Tottenham Hotspur, technology and innovation is key to everything we do and we are excited to partner with Libertex, an organisation that shares this commitment through its own products and services.
With a mission to make trading financial assets easy and accessible for everyone,
Libertex has long been a pioneer in the development of the forex market and is an influential organisation in the finance industry. The brand has grown to provide over 2.9 million clients across 120+ countries a variety of fast, user-friendly and reliable technology platforms.



For more information on how Libertex can help you Trade For More, visit their website https://libertex.com/sponsorship.

[Libertex]

A whole generation was missing out on online trading. Then came the coronavirus

“2020 is my favourite year,” said no one ever. But for millennials, this year has been yet another blow in what’s been a generational rough patch of economic disruption that made itself felt most keenly in the 2008 financial crash. After entering the job market during the Great Recession and saddled with college debt, suffering low wages and a rising cost of living, the younger generation now has to reckon with a COVID-19-induced economic downturn without the safety net that previous, wealthier generations had built for themselves.

It’s no wonder that millennials and Gen Y were shy about stocks. To the average person, investing is only something to consider after padding one’s savings, paying off college debt, and saving up for real estate, something that is still in the distant future for many younger people. Brokers, for their part, continue to use their arcane jargon and dwell in the image of the greedy 1980s. They’re about as uncool as you can get to the socially conscious, digital-native, avocado-toast generation.

But these turbulent times could actually hold a silver lining for younger people. COVID-19 feels like a significant historical event that has made governments, banks, and individuals all reflect on people’s relationships to the economy. As tech-savvy youth increasingly become aware that their potential to save cash just isn’t going to cut it, they’re more willing to step out of their comfort zone and start trading. It’s clear that the current economic system isn’t going to get better anytime soon. The oldest millennials are nearly 40, with retirement becoming an increasingly pressing concern.

A recent survey from Money Under 30 revealed that 61% of millennials think now is a good time to invest, with a higher 70% interested in learning more about the stock market. Where did they get the capital to invest?

Well, if you’re among the lucky one in three (33.5%) millennials who just started working from home, the coronavirus may have actually increased your savings. Of the millennials working from home, 78% reported that their total expenses decreased, with money saved on transportation and eating out more than making up for increased home utility costs.

Curiously enough, one in five (20%) of under-30s surveyed confirmed that they are planning to start investing precisely because of the pandemic, with 72% of women interested in learning more about investing (or doubling down on existing investments), compared to 82% of men. And it’s about time they do because one of the most respected financial players has rolled out a trading platform that’s tailor-made to younger investors that are eager to learn the ropes.

“Trade for More”: playing the stock market for a better future

‘‘Younger people are increasingly aware that to build wealth, they need to take the initiative into their own hands. That’s the whole philosophy behind ‘Trade for More’,” said Libertex CMO Marios Chialis. “We asked ourselves, ‘are users really signing up to trade? Or are they looking to invest so that they can achieve what they want in life?’ Whether it’s saving for retirement, raising a family, getting on the property ladder or planning future travels, we empower new users with the tools and skills they need to get what they want out of life”.

The ongoing COVID-19 pandemic may be driving young people to stake their claim in the financial market, but it’s also led to a downturn in the world of sport and entertainment. All sports around the world, from hockey to football to ice-skating have been affected by the economic shock of cancelled games, postponed fixtures and empty stadiums without ticket sales.

The global sports juggernaut that is association football has suffered along with the rest. By 19 March, almost all 55 UEFA member associations had suspended activity, save for the Belarusian Premier League.

Even as the Bundesliga, La Liga, the Premier League, Serie A and the UEFA Champions League all returned over the summer, football continues to struggle, with a reduced number of matches, under-staffed teams taking the field, sanctions against teams that violate COVID-19 safety rules, and of course, empty seats and plummeting revenues. These days, clubs are looking for new ways to monetise — and by partnering with trading platforms, they’re seizing a unique opportunity to join their fans in chasing financial returns.

To channel the spirit of perseverance through adversity, Libertex — in addition to being Valencia CF sponsors — has teamed up with Tottenham Hostpur FC, the English Premier League superstar that boasts the motto Audere et facere, meaning ‘To dare is to do’. Through this partnership, Libertex clients can win various perks and goodies associated with the club.

Libertex’s mission to win over the young isn’t just about football perks, however. It takes training to play the game, and the finance company aims to woo millennials by offering what they need to get over their fears of indices and candle charts — education.

Ignorance fuels Gen Y’s fear of the stock market, making education more critical than ever

A lack of education has been a significant barrier between younger people and investing. It seems that millennials react to the stock market just as they would to an unexpected call to a landline phone (if they have one): with terror. Around 66% of American millennials surveyed by Ally Invest in 2018 claimed the stock market was intimidating and expressed concern about their ability to understand how to invest.

Gen Z (defined in the survey as ages 18-23) were even more fearful, with 69% reporting that they’re intimidated by financial markets. The reigning fear was that they would make a bad call and lose their investment. Almost three-quarters of the millennials who are afraid of losing money when they invest are women compared to about two-thirds of men.

The true terror affecting millennials was a lack of education. Although a generation with high levels of college education, ignorance of the stock market is holding them back. One-third (34%) of respondents had no trusted source of advice. Over one-quarter (27%) cited their biggest fear came from simply not knowing how to get started, and 19% are scared about the time it takes to learn how to invest properly.

But the coronavirus pandemic, and the stock market’s relative resilience compared to the regular economy, may have convinced millennials that the financial markets aren’t the scariest thing out there. From the survey results, as attitudes change, the online trading platforms that stand to win out will be the ones that emphasise education. In other words, the trading platforms that can inform young investors about the stock market in a straightforward, trustworthy, and time-effective way.

The best investment starts with knowledge

Even as the market rebounds at the prospect of a coronavirus vaccine, millennials with money on their mind should take 2020 as a wake-up call to seize the opportunities that trading affords. But before going all in, young traders would do well to consider starting with the platforms that offer a full suite of educational materials, demo accounts, and training media such as webinars and tutorials. After all, the first and most important thing to invest in is yourself.

[Libertex]

Libertex adds yet another payment method

After much anticipation, Libertex is delighted to announce that it is adding PayPal to its already extensive list of payment options. Famed for its accessibility, convenience and security, PayPal will offer Libertex clients yet another quick, easy and secure method for funding their accounts and withdrawing profits.

Nowadays, there aren’t many people who don’t have a PayPal account or haven’t at least considered opening one. And you don’t have to look far to see why. Its ease of use and integrability is unrivalled. All you need is an e-mail address, and you can make and receive payments in a variety of currencies in just one click. Then, your balance can just as easily be converted into the currency of your choice and transferred directly to your personal bank account. The service’s appeal to consumers everywhere is one of the reasons Libertex has been so keen to support this deposit method…and now it does!

This momentous agreement with PayPal puts Libertex firmly among the leaders of the online trading market, and everybody involved really couldn’t be prouder of this fact. Now Libertex clients can add funds to their accounts and withdraw their profits via virtually every method imaginable. In addition to SEPA bank transfers and debit/credit card payments, Libertex has long supported Sofort, Trustly, Skrill and many other deposit methods. Despite this wealth of choice, it always felt as if there was one big hole that needed filling — but not anymore.

Speaking on this special occasion for the company, Libertex CEO Michael Geiger commented: “We truly couldn’t be happier to be able to offer our clients this new payment option. PayPal is a real household name whose user-friendly reputation precedes it. With the addition of this exciting method, we will be making depositing and withdrawing funds even easier and more convenient for our valued customers around the world.”

Just when you thought the news couldn’t get any better, there’s more. PayPal deposits will be completely free for Libertex users. That’s right! The broker won’t take any commission on funds added to your trading account using this latest supported payment option. The service is set to go live on 1 December, and the hope is that this will become a date to remember in Libertex’s history!

[Libertex]

Thank you all for making this a year to remember

Despite all the negativity surrounding 2020, it has actually been a year of many landmark achievements for Libertex. But none of that would have been possible without all the tireless efforts of our hardworking staff and support from you, our loyal clients. And for this, we are truly grateful. Thank you all so much for keeping the faith and sticking with us during this challenging period.

In the dark days of this winter, none of us would have believed that the months ahead could be so bright for our brand. One could be forgiven for thinking that our title of the Best Trading Platform from European CEO Awards would be the highlight of the year. However, just a couple of weeks after that, we received a double whammy of accolades from Forex Report (Best Trading Platform and Best Broker Europe). Then, a month later, we were once again named Best Trading Platform, this time, at the World Finance Magazine’s 2020 Forex Awards.

While it’s always nice to have your hard work recognised, this year has been about more than just awards. We have also forged many powerful, forward-looking partnerships that we hope will prove enduring. These include strategic deals with FPM.global and FXCubic, charitable joint initiatives with Ukraine’s Change One Life and GlobalGiving, and even client-serving partnerships with major payment system providers like PayPal and PaySafe. But our crowning glory this year has to be our multi-season partnership with the titans of the English Premier League, Tottenham Hotspur. In line with our “Trade for More” philosophy, we are looking forward to providing our members with some unique experiences.

So, as this singular year draws to a close, we would like to wish you all the best for 2021. Here’s to hoping life returns to something more reminiscent of ‘normal’. But even if it doesn’t, we now know that we’re up to the challenge.

Seasons’ greetings and heartfelt thanks from everyone here at Libertex!

[Libertex]

The Great Bitcoin Rush 2.0

Although Bitcoin has been around for over a decade now, it really only gained mass recognition about three years ago. After much sideward trading and slight incremental gains, the then-obscure digital asset made headlines after shooting up almost 2000% in less than 12 months. Along with the huge price rises, its daily trading volumes similarly took off, rising from $30-40M in early 2017 to nearly $5B at the end of that same year. As we know, the Bitcoin rocket eventually ran out of fuel and crashed back to Earth in spectacular fashion. Nevertheless, the aftereffects of this first great crypto boom were groundbreaking: a new breed of asset class was born, and an entire industry sprouted up around it.

After two years of relative quiet on the crypto markets, the pandemic saw BTC blast off once again. This run has dwarfed the last, and you could be forgiven for thinking an even bigger bust is just around the corner. However, this time things are very different. Retail investors and millennial enthusiasts aren’t driving this current growth; it’s big institutions finally adding a serious yet previously neglected asset class to their holdings. Indeed, regardless of the significantly higher price achieved in this boom, average daily trading volumes are actually quite a bit lower. That would suggest that this isn’t speculative bubble inflation, but rather sound and considered investment.

Should I sell it all and buy Bitcoin, then?

While it’s highly likely that we will see BTC up many multiples yet, it’s never wise to put all your eggs in one basket. The overwhelming consensus on Wall Street is that, yes, Bitcoin has been performing phenomenally of late and will likely continue to do so for years to come. However, it’s not some sort of magic instrument that is immune from the market’s ups and downs. When John Pierpont Morgan was asked how the market would perform over the years ahead, his immortal reply was as follows: “It will fluctuate”. When it comes to Bitcoin, this adage is especially true. And while it’s never wise to put all your money in a notoriously volatile asset, having exposure for the potential massive upside is a must.

Luckily for us, just this past month, Bitcoin has undergone a 10% correction and thus represents excellent value for new entrants to the market. Recent technical analysis predicted this kind of correction as a prelude to even more vigorous growth in the long term. As the chart below shows, BTC has broken its rising medium-to-long term uptrend and, with this recent retracement, the stage is set for even higher highs. What’s more, many experts believe that Bitcoin could soon replace gold as an anti-inflationary safe-haven asset. With the rampant money printing going on right now, we might well see a sharp increase in BTC demand and, consequently, the coin’s value.



Trading Bitcoin with Libertex

You no longer need to rely on unregulated cryptocurrency brokers or shady p2p exchanges to trade Bitcoin. Now that Libertex is offering BTC, you can buy the flagship digital currency with confidence and enjoy all of the security and convenience of trading with an established financial broker with over 20 years of experience.

With Libertex, you can create a balanced, diversified portfolio on an award-winning platform, with all of your various instruments conveniently accessible in one place. Register an account today and enjoy up to 50% off trading commission on transactions for Bitcoin and a whole host of other supported cryptocurrencies!

[Libertex]

Cryptocurrencies in the spotlight again as institutions join the party

The current crypto hype has been nothing short of spectacular. We all watched in shock and awe back in early 2018 when prices shot up by orders of magnitude. Of course, this was followed by a massive bust that left many believing that the days of $20,000+ BTC would never be seen again. But lo and behold, they’re back! In fact, the original digital currency actually managed to double this figure during its latest run. The recent pullback aside, it doesn’t look likely to run out of steam anytime soon.

Of course, many are concerned that this could just be an even bigger bubble ready to pop at any moment, wiping away millions of dollars of paper wealth in an instant. But this time, things really are different. It isn’t overly optimistic speculators fueling the present boom but level-headed institutional investors finally accepting that digital currencies deserve a place in any well-balanced portfolio. With more and more crypto funds and ETFs popping up everywhere, this trend appears set to continue for some time yet. Not to mention the ever-rising popularity of cryptocurrencies among users of legacy trading platforms, such as Libertex, whose digital offering is expanding almost by the day.

Sold on crypto, but don’t know where to buy it?

Alright, we all know digital currencies are a must-have component of any future-proof portfolio, but there are still so many fraudsters and hidden pitfalls in this fledgeling marketplace. We get it: Nobody wants to risk getting scammed. That’s why choosing a reliable crypto broker is so important. Luckily for you, crypto’s ascent to fame means that many well-established and reliable brokerages are now providing digital assets alongside their bread-and-butter instruments like Forex and commodities.

One such platform is Libertex, whose crypto selection has grown exponentially over the past few years and now includes more than 50 different digital currency pairs/coins. Apart from giving you the confidence and peace of mind of working with a trustworthy company with over 20 years of experience under its belt, buying crypto from Libertex means you can store both your digital and conventional assets together in one, easy-to-access place.

How to purchase cryptocurrencies in Libertex

Buying your chosen coin really couldn’t be easier. Start by opening the app and clicking the ‘Cryptocurrencies’ tab on the instruments bar at the top of the page:



After that, a list of all available coins will appear on the left-hand side of the embedded chart, as seen here:



Once you see this screen, select a currency from the list by left-clicking its name to open its chart. Next, hit the blue ‘Open trade’ button in the top right-hand corner of the chart section, as shown below:



The trade window (shown below) should automatically open:



From here, it’s pretty self-explanatory. Simply enter the amount you wish to buy or sell in the ‘Trade amount’ field and then select your multiplier (leverage ratio) from the box below. The total commission rate will be visible before you pull the trigger, so you won’t have any surprises down the line. When you’re happy with all the parameters, just hit ‘Buy’ or ‘Sell’, and that’s it!

No more excuses

As you can see, the path to owning crypto isn’t quite as daunting as it might first seem. With Libertex, you can purchase (or sell) a wide variety of digital assets in seconds and, unlike with other cryptocurrency platforms, you can pay in normal fiat currency using your debit or credit card. Simples! Even better, you can also leverage your positions to maximise your potential gains even further.

So, what are you waiting for?! They say, there’s no time like the present… and that’s especially true when it comes to getting into digital currencies. Not least since the recent market-wide correction means that many blue-chip coins are currently on sale at knock-down prices. Don’t put it off any longer, create a Libertex account now and take the crypto plunge today!

[Libertex]

Oil bulls on parad

After several false starts over the past few weeks and months, it appears as though the coronavirus crisis is finally coming to an end. Barring the odd rogue strain here and there, the response to widespread vaccination has been overwhelmingly positive; even the most beaten-down sectors are beginning to come back to life. Energy was one commodity hit extremely hard by the pandemic as demand for oil dropped off a cliff with the ensuing global shutdown. At its lowest ebb back in April, Brent actually fell to an 18-year low of less than $20 a barrel!

Naturally, this black swan event's impact was always going to be temporary and, once lockdowns were relaxed and OPEC production cut agreements finalised, we saw a rather quick recovery to $40. But, from then on, oil traded sideways for the best part of the rest of the year. Only after vaccines were approved did the tide really start to turn. With an overwhelming majority of the world's population still unvaccinated, the potential upside is still significant. In fact, Brent is only trading at around $60 a barrel, which is a good 40% from its local high of $86.04.

Demand forecasts looking up

Following an early hiccup due to underestimating the challenge of global vaccination, demand for oil is now growing steadily. The IEA has estimated a rise in demand to 96.64 million bpd this year, representing a 5.5 million bpd recovery YOY. Meanwhile, OPEC was even more optimistic in its own projections, revising its initial 95.89 million bpd estimate to 95.91 million, a 5.9 million bpd improvement from 2020 levels. As long as the cartel can stick to its production cut agreement, there's every reason that this should translate into higher prices for the energy resource — not least following Saudi Arabia's surprise decision to reduce its Feb-March crude production by a further 1 million bpd. Last month, Goldman Sachs predicted Brent at $65 by mid-2021, but it may amend its estimate upwards amid recent developments.

The API's take

The American Petroleum Institute (API) reported a 4.261-million-barrel draw in crude oil inventories in its report of 2 February 2021. While this was actually lower than the previous week's figure of -5.272M, it signifies the return to a positive pattern of consistent draws on reserves. This comes after a shock +2.562M surplus raised concerns in the third week of January. As long as this trend continues, the oil bulls will remain relatively upbeat about future prices. As such, US inventory figures will remain a closely watched metric over the coming weeks as many look with cautious optimism for confirmation of a recovery in oil demand.

Trade crude CFDs on Libertex

Even with all the fancy models, projections and analyses in the world, nobody truly knows where the market is headed. It would certainly seem that oil has finally put the worst behind it, but even the most spectacular of rallies can see short-term corrections to the downside. But if you think you have a good idea where prices are going, why not put your theory to the test?

Since Libertex offers both long and short CFDs in Brent, WTI and Light Sweet, you're guaranteed to find a crude oil instrument and trade direction to suit your personal preferences. Try our award-winning and intuitive platform today, and you'll never look back. Libertex is one of the most well-trusted names in the CFD trading industry and has been connecting ordinary people with the financial markets for over two decades. Create a Libertex account now if you haven't already and start trading oil CFDs with one of the best brokers around!

[Libertex]

Stocks in choppy waters as mixed news abounds​

After a raging bull market lasting the best part of 10 months, we finally saw the beginnings of a correction early this week as swathes of growth stocks slipped from their recent lofty heights. Many have been expecting this for some time, given the unreasonably astronomical valuations of some companies, particularly in the tech and EV sectors. And while these kinds of equities were worst-hit by the pullbacks, Monday’s declines were more or less felt across the board… with one notable exception.

Come fly with me

Contrary to the overarching trend, long-suffering cyclicals, such as aviation and leisure, have been going from strength to strength, with many airlines up between 15-20% in the past 7 days. This is largely understandable in light of the relative success of the worldwide vaccine rollout, which would seem to suggest that the summer holiday season will go ahead as usual this year. Moreover, considering how unduly suppressed these stocks have been over the last 12 months, it’s hard to imagine how they could go any lower. Indeed, many analysts expect these industries to receive a significant windfall once consumers are free to exercise all of their pent-up demand for travel services.

What goes up must come down

As touched upon above, the biggest losers early in the week were precisely those companies whose share prices had exploded of late. Tesla, for instance, is still down almost 10% from last Friday and over 20% from its late-January highs, but this only tells half the story. Despite these recent losses, the audacious automaker is actually up over 700% from its coronavirus-crash lows. Baidu — oft called the Chinese Google — is another stock that is down almost 20% from its all-time high recorded last month. Yet, once again, it is still sitting on a more-than-respectable 350% gain from its March 2020 minimum. This would seem to suggest what many already feel: this is nothing more than a minor correction on the path to even stronger growth ahead.

Don’t fear the yield

Indeed, at the index level, Monday’s losses were all but wiped out as early as the close of trade on Tuesday as the Nasdaq ended the day back above 13,500.00. But how did equities manage to turn the tide so quickly? That’s right: it was Powell to the rescue once again. The Fed chairman succeeded in soothing investors’ inflation concerns and reiterated the US regulator’s stimulus position, confirming that they would not be withdrawing economic support for some time to come. Many had been worried that current high short-term bond yields meant an increase in price pressure was around the corner, but Powell reassured markets that this was instead an indicator of growing confidence in the global economic recovery, prompting investors to ‘buy the dip’.

Grab a bargain with Libertex

Whether you’re a short-term trader or committed HODLR, the present low valuations of some of the biggest companies of the future represent a golden opportunity for profit. With Libertex’s CFDs, you can trade from changes in the share price of Tesla and Baidu without having to suffer the hassle associated with buying and owning actual stocks.

With nearly 25 years of experience connecting traders to the markets, Libertex is a name you can trust. What’s more, our award-winning app makes the whole process even easier and allows you to keep your entire portfolio in one convenient and easily accessible place. So, what are you waiting for? Create an account today and take advantage of the knock-down prices of some of the world’s best-quality growth companies now!

[Libertex]

All that glitters ain’t gold

Amid all the commotion in the equities and cryptocurrency markets, the yellow metal has looked somewhat neglected of late. At the height of the coronavirus crisis, gold was the asset everyone wanted for its reputation as a store of value and inflation protector. But between the vaccine roll-out, higher US Treasury yields and central bank intervention, the quintessential safe haven has since fallen out of favour. Gold is now down almost 15% from its August 2020 highs, and many are worried that this could be just the beginning. But what if they’re wrong?

Digital gold vs the real McCoy

The eyes of much of the world have been fixed on the cryptocurrency space this past year… and with good reason. Bitcoin is up almost 1000% over the last 12 months, and Ethereum even more so. As such, the long-espoused opinion that these big-name digital currencies could be shaping up to replace gold as the go-to hedge is gaining some serious traction. While nobody knows what the future holds, it’s hard to see how this can happen while crypto remains so inherently volatile. An asset class with such a high alpha is certainly an attractive investment prospect for the risk-on investor but perhaps not the safest bet for storing value long-term. Once the hype surrounding digital assets subsides a little, one can’t help but think that both retail and institutional investors will look at the gold price and decide to increase their allocation in the commodity with thousands of years of experience under its belt.

Yield of dreams

One of the biggest shocks in recent weeks has been the sharp rise in government bond yields. For instance, 10-year Treasury notes are up almost 50% YTD, while their 30-year counterparts have risen by nearly 40% over the same period. Analysts have largely attributed this to increased optimism surrounding global vaccination efforts and the gradual opening of economies, which has, in turn, sent gold into a tailspin. But with central bank interest rates so low (and likely to remain so for the foreseeable future), such movement in an otherwise mostly stable instrument can’t be explained away by mere positive sentiment.

There’s a convincing view, albeit among a minority, that the T-bill yield spike is, in fact, a precursor of significant inflation on the horizon. While gold does, indeed, tend to exhibit an inverse correlation with government bond yields, its positive correlation with inflation is far more robust and historically better documented. In this light, it could be just the right time to take those handsome crypto profits and park them in gold — especially since the yellow metal is so attractively priced.

Cycle of life

As you’re probably aware, commodities aren’t at all like stocks. They don’t rise 400% in a month and then drop 50% over the next. This is because they have a real intrinsic value, and the businesses that use them in their products rely on a certain level of price stability. Nevertheless, they do go through cycles of elevated and depressed values. The general consensus among experts is that we are at the dawn of a commodities ‘super-cycle’ that will be driven by the global economic recovery, massive government spending and green energy policies. Indeed, JP Morgan wrote in their latest report that “a long-term boom across the commodities complex appears underway, and there could be big gains ahead for the entire sector”.

We are already seeing this prophecy come to fruition in other precious metals. Platinum, for instance, has rocketed nearly 100% in the past 12 months, while Palladium is up around 70% over the same period. With all other factors as they are, it looks like it’s only a matter of time before gold catches up to the pack.

Trade gold with Libertex

It’s normal to be concerned by the big swings in commodities, but don’t forget that, as a trader, volatility is your best friend. At the end of the day, it doesn’t really matter which way the market is moving as long as it is moving. With Libertex, you’ll always find a lucrative opportunity wherever you think Gold prices are headed. Since we offer both long and short positions on the yellow metal, you’re bound to find something to tickle your fancy. And if you want to maximise your potential gains, you can always take advantage of our generous leverage facility. Get online and register your very own Libertex account now. There are no lengthy verification procedures, and sign up only takes two ticks. Before you know it, you’ll be trading Gold with one of the most trusted brokers in the business!

[Libertex]

Beyond the bubbles: Potential bargains amid a bullish bonanza

With all the recent commotion over green energy and electric vehicles, several other key future industries have looked somewhat neglected. Now, EVs and renewables are undoubtedly going to be huge areas of growth in the next 5-10 years, but what about robots, automation and the Internet of Things? It seems like a lot of us have been blinded by the bright lights of Tesla (TSLA) and Enphase Energy (ENPH), causing us to ignore perhaps the most lucrative sector of the coming decade: artificial intelligence or AI. Apart from the three massive future growth industries named above, artificial intelligence is also the driving force behind self-driving technology and smart power management, breakthroughs that are expected to revolutionise none other than EVs and green energy!

Despite being at the heart of nearly every cutting-edge tech sector you can think of, there are a surprisingly small number of pure AI equities to choose from. So, where can you put your money if you want to cash in on all this growth to come? Well, the best bet is to look for companies that are using artificial intelligence to create an exciting new product or service — or even improve an existing one. Lucky for us, there are plenty of those! Because of AI’s pervasive nature, these companies span a wide range of industries and markets, so it should be relatively easy to put together a nice, well-diversified portfolio. Without further ado, then, let’s take a look at some of the best places to hunt your winners.

Chips off the old block

What better way to expose yourself to the wider AI trend than investing in the hardware that makes it all possible? As this revolutionary technology gradually becomes an ever-present feature of our daily lives, the race to develop the fastest and most powerful chips will only intensify. While there will, of course, be winners and losers as in any race, it’s safe to say that industry leaders like Nvidia and Intel will not only survive but almost certainly thrive. Naturally, the upside is probably not going to be as earthshattering as if you were to pick a penny stock on its way to being the next big thing, but the risk level is definitely more palatable. A good compromise could be to consider some of the Chinese foundries that are predicted to begin producing viable chips for data centres, self-driving vehicles and cloud computing in the next couple of years. One company that looks like an attractive proposition is SMIC, the Asian giant’s biggest chipmaker, particularly after its glittering Star Market debut this month.

Head in the cloud

The concept of cloud computing has been around for a while now, but until recently, its main application was simple file storage. However, as increasingly complex systems migrate to the cloud, its potential as the beating heart of Web 3.0 is becoming increasingly apparent. Sooner than you might think, our whole lives will be in the cloud, instantly accessible from any device or location. The major players in this industry are undoubtedly Amazon (AMZN) and Alphabet (GOOGL). Not only do they have great proprietary solutions, but they are also actively buying stakes in — and even acquiring outright — many innovative private companies in this space. Like most US tech stocks, though, these two behemoths have pretty high valuations at the moment. It might be a good idea to look to their Chinese counterparts Alibaba and Baidu, which are pursuing cloud tech just as aggressively, but whose P/E ratios look much more attractive in light of Communist Party monopoly crackdowns.

Nobody knows you like AI do

Sometimes artificial intelligence can feel a little distant, but, actually, it’s already an integral part of all of our lives. Why do you think YouTube seems to know exactly what you’d like to watch next? How did that mutual friend of a friend you just met last weekend up in your “People you might know” list on Facebook? Or how is Netflix able to suggest shows and movies like they’ve known you your whole life? It’s the algorithm, stupid… and it knows you better than anyone! And this is just a drop in the ocean: nearly every consumer-focused app or digital service in existence will use AI to some extent in the future. Obviously, Facebook (FB), Netflix (NFLX) and YouTube’s parent company Alphabet are solid plays for any investor looking to ride the consumer AI wave, even if they’re a little expensive at present. But if you’re looking for a great deal, you might have better luck outside the US. Russian internet giant Yandex (YNDX) is currently trading at a more than fair valuation. Moreover, its extensive portfolio of AI-powered solutions — coupled with its access to rapidly growing Central Asian markets — make it a screaming buy. Another bargain stock is Tencent Holdings (TCEHY), which is down more than 10% amid CCP scrutiny.

Follow the smart money with Libertex

Whatever your thoughts on the future of AI equities, the fact that the technology itself is going to be a huge presence in everybody’s day-to-day life is more or less indisputable. It’s no surprise, then, that forward-looking funds are buying up big names in these sectors during this current pullback. But since Libertex offers both short and long positions on a range of AI stocks, we can help you get a piece of the action whether you think the market is overvalued or good value.

[Libertex]

Human resilience: the lessons we took from the pandemic

Human resilience in the face of a public health risk and economic disaster does not mean that people haven't experienced difficulty or anguish.

The pain, sadness, and uncertainty of what awaits us were common denominators. These adversities in their lives led people to adopt a resilient attitude that allowed to carry out realistic plans and make complex decisions.

The explosion of innovative dynamics and technological knowledge in the face of such a challenge has been extraordinary. Science brought new vaccines in record time, with innovative technology opening new paths for health. The recombinant DNA technology in the immunisers developed by Pfizer in collaboration with BioNTech and Moderna is clearly the most innovative.

Human resilience is undoubtedly the takeaway of the year

In the context of financial markets, we are convinced that the emotions, feelings and cultural factors intrinsic to each society and generation have influenced the prices of financial assets in the markets throughout the pandemic, leading to a distortion between prices in the markets versus the real economy.

Emotions dominated the markets, which saw three phases. The first was the panic that caused the oil market to crash last year when the price for a barrel of oil reached negative values due to skyrocketing storage costs. This resulted in a price distortion in April 2020. As soon as people acquired information and compiled strategies to deal with the pandemic, oil prices stabilised at around $30 a barrel in the first phase. As more certainty emerged about how to deal with the pandemic and keep the economy running with social distancing restrictions, oil prices returned to pre-pandemic levels of around $60. More than anything, the initial movement in oil prices was the emotional action of panic.

The markets soon regained confidence thanks to the arrival of vaccines, on the one hand, and central banks and political powers, on the other, who signalled to markets that they were ready to withstand the economic and social crashes.

After fear and panic, greed seems to be taking over the financial markets, a sign of history repeating itself.

The price correction demonstrated between March and May 2020 attracted many new investors to the markets. Furthermore, reducing the cost of money (interest rates went to zero) worked like a catapult in the stock and bond markets. In markets less liquid than cryptocurrencies, this dynamic was more aggressive and accentuated. For instance, in the case of Tesla, the question emerges of whether new shareholders are or are not paying a very high premium in relation to the electric car sales expectations for the company.

High volatility means high uncertainty in the markets

Volatility remains very high. The Nasdaq 100 Volatility Index, which stood at 15 points in March 2019, rose to 45 points at the beginning of the pandemic. Today, it's trading at 30 points. If we analyse the first days of March 2020, we see a 9.48% drop on Tuesday, an increase of 12.25% the day before, and a 10.44% fall the Friday before that. In March 2021, the Nasdaq 100 is seeing a yoyo effect, although its changes this month are only -0.89%.

This tells that investors are taking short-term positions with high turnover, despite high volatility. The market is mostly in a sideways trend, waiting for a new event or confirmation.

Interest rates and the issuance of new Treasury bonds

The interest rates on US Treasury bonds generally give us clues of what's to come. The Treasury started selling bonds this week, a sign of the first significant struggle the Treasury faces to finance the $1.9 trillion stimulus package recently passed by Congress.

The CSI 300 index corrects for four days

In China, signs that the government may reduce the pace of monetary and fiscal stimulus have led the market to correct in the past four days, primarily due to the rapid increase in corporate debt in that country. This indicates that the deleveraging of the economy should be one of the year's priorities.

OECD reviews global growth forecast

With optimism about vaccination programmes, approval of the stimulus package in the United States and the possible resumption of economic activity globally, the OECD has revised its growth forecast from 4.2% in November 2020 to 5.6% in 2021.

What's next?

Some uncertainties in the financial markets are still to come. For one, we just rounded the corner on reopening the economy globally. However, financial markets are continuing to see very high volatility, which increases investment risks.

Issuing Treasury bills and the inflationary pressure on economies, combined with stock and bond markets being close to highs, are certainly determining factors as to whether the upward trend continues or a correction begins.

Here's a way to position. For short-term positions, reduce exposure to reduce risk. Because fundamentals are distorted, essentially adopt a technical strategy with a preference for positions in liquid assets, such as indices and large caps stocks. Also, be emotionally prepared for any sudden movement in the markets, be it a correction or a rally.

Investors should pay attention to inflation data and how interest rates on US Treasury bonds play out because these will dictate the near-term trend.

Libertex's technical analysis tools are there to complement this short-term strategy.

[Libertex]

Central banks fashionably late to the party​

The last 12 months have been a rollercoaster ride for digital currencies and their holders. Countless millionaires have been made, and these once-niche instruments have finally been welcomed into the fold by institutional investors. Understandably, the spotlight has been firmly focused on legacy assets like Bitcoin, Ethereum and Litecoin. But beyond the explosive growth of these well-known coins, there are even more momentous developments taking place in the crypto space. As demand for digital assets skyrockets from Wall Street to Main Street, global central banks are now looking to get in on the action, too.

There has been serious talk of Central Bank Digital Currencies (CBDCs) for nearly 3 years now, and virtually all of the world’s major regulators had been working towards launching their own versions with varying levels of zeal. Then came COVID-19, prompting a rapid acceleration of implementation efforts. Unsurprisingly, China is by far the most advanced CBDC project at present, having already run real-life tests of a range of digital currency electronic payment (DCEP) solutions in 2020. But China is not alone; early 2020 also saw the establishment of a cross-border working group representing five global reserve currencies (CAD, EUR, JPY, CHF and GBP) plus SEK.

US vs them​

Not to be outdone by his counterparts around the world, Federal Reserve Chairman Jerome Powell made some uncharacteristically revealing comments about the United States’ CBDC project at a recent Congressional hearing. Powell went as far as to confirm that the Fed would aim to engage with the public on the digital dollar this year (2021), adding that it was up to Congress to give the US regulator the “legislative authorisation” for the project. The Fed chair made clear that the new CBDC would not be used to manipulate markets, underscoring the need to take great care with the design of the digital dollar to ensure that it doesn’t undermine the healthy functioning of the US financial system.

Everyone’s a winner​

We have to face the facts that the call for digital alternatives to traditional fiat currencies is only likely to grow louder in the future as millennials and Gen Z begin to edge out older generations. The writing is on the wall: younger financial actors — with their ingrained culture of instant gratification — are simply not willing to wait several days for a payment to clear. What’s more, it gives disadvantaged, unbanked persons easier and safer access to money and can help fight the illegal activity that often goes hand in hand with digital currencies. But it isn’t just consumers who stand to benefit. As the IMF reports, the cost of managing and transferring cash is high, and CBDC technology can slash expenses while also accelerating the implementation of central bank monetary policy.

Getting ahead of the competition​

Whatever we might think, central banks and sovereign issuers are not a total monopoly. Indeed, payment systems’ inefficiencies have prompted the rise of numerous fintech/BaaS providers such as Square and Adyen to fill the void left by existing infrastructure. Moreover, CBDCs themselves already have competition in privately issued stablecoins like Tether and potentially Libra. As Fed Governor Lael Brainard put it: “the introduction of Bitcoin and the subsequent emergence of stablecoins with potentially global reach have raised fundamental questions about legal and regulatory safeguards, financial stability, and the role of currency in society”. As such, these latest CBDC policy initiatives are absolutely necessary if central banks are to retain control over their own currencies in the crypto age.

Rebadged fiat or something new?​

The only question that remains is whether these new currencies will be backed by anything. It’s plain to see that people’s confidence in fiat is waning as more and more wonder how long ever-lower interest rates and MMT can hold out. Many analysts have touted Bitcoin as a potential new “digital gold standard” for the global financial system of tomorrow. If this is true, we would need to see another massive increase in BTC’s value that would dwarf the booms of 2018 and 2020. Nobody knows what will ultimately come to pass, but one thing’s for sure: if Bitcoin is to become the global reserve, we could be in for a 10, 20 or even 30x moonshot in the years ahead!