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Compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) is becoming more complex as the global financial system and the regulatory environment that governs it continues to evolve. AML compliance professionals find themselves focusing their battles on two fronts: traditional finance (TradFi) and decentralised finance (DeFi), with a diverse and growing set of virtual assets that can be held, transferred or traded. Compliance is particularly challenging at the intersection of these two fronts, involving fiat currency and cryptocurrency.

As Paul Grewal of Coinbase, the largest crypto exchange in the United States, wrote in a June 2023 blog: With more than 20 percent of Americans owning and using crypto, we need a regulatory framework that will protect consumers and enable the critical uses of this new technology to continue and grow.

The number of distinct cryptocurrencies and digital assets continues to increase. Since the 2008 launch of Bitcoin, which remains the best-known cryptocurrency as well as the largest by market capitalisation, thousands of digital currencies have been coined. Virtual assets is a term that describes a wide range of digital objects, including cryptocurrency, stablecoins pegged to a reserve currency such as the US dollar, non-fungible tokens (NFT) and security tokens that resemble tradable stocks and bonds. A new form of virtual asset that has emerged in the past few years is DeFi tokens, which can mimic traditional financial system products such as loans and savings accounts.

From an AML compliance standpoint, regulatory requirements for virtual assets are essentially the same for fiat currency and tangible assets. The most important aspect of all AML compliance programmes is that they should be designed to prevent criminals from using the global financial system to launder their ill-gotten gains, whether those are in fiat currency or cryptocurrency. Financial institutions AML compliance teams, therefore, must meet the same standards regardless of the type of asset. If a traditional financial institution opts to serve its customers using digital assets, the institution cannot apply a different standard of compliance, even if the tools used for transaction monitoring and other activities differ for virtual assets. As Adrienne A Harris, superintendent of the New York State Department of Financial Services, has explained: All virtual currency companies licensed in New York State are subject to the same anti-money laundering, consumer protection, and cybersecurity regulations as traditional financial services companies.

Internationally, regulatory jurisdictions are implementing or considering rules for cryptocurrency and other virtual assets. For example, although cryptocurrency has been fully legalised in 20 countries analysed by the Atlantic Council including the United States, Canada, the United Kingdom, Australia, Germany, Japan and Singapore only 14 currently have AML/CFT regulations that apply to cryptocurrency. As with any emerging technology, the pace of regulation has not kept up with the pace of adoption, and the disparate rules in various jurisdictions add to the challenge with compliance for institutions with global operations.

In the 45 countries the Atlantic Council studied, entities regulated for cryptocurrency and virtual assets include crypto exchanges, crypto issuers, traditional financial institutions, cryptoasset service providers and cryptocurrency miners. The regulatory status the council assigned to each of these jurisdictions are (1) legal, meaning all activities are permitted, (2) partial ban, or some activities are not permitted, and (3) general ban, signifying that all crypto and virtual asset activities are not permitted.

Ten of the G20 countries have legalised crypto and virtual assets, representing 50 per cent of global gross domestic product. According to the Atlantic Council, all members of the G20 are considering crypto regulations. An emerging area of virtual assets is stablecoins, which are usually backed by a fiat currency (except for algorithmic stablecoins that are unbacked by fiat currency). Regulation of stablecoins is under consideration in the European Union, the United Kingdom, the United States and Thailand. Among G20 countries, Mexico has a partial ban on crypto and virtual assets, and currently does not permit financial institutions to issue stablecoins.

In October 2021, the Financial Action Task Force (FATF) updated its guidance for a risk-based approach to virtual assets and virtual asset service providers (VASPs). The FATF noted that its recommendations apply to virtual assets and VASPs in the same way as they do to traditional financial institutions. The FATF is not attempting to regulate either the users of virtual assets or the technologies on which virtual assets are traded or used to conduct trades or transfers. Rather, the FATF is trying to clarify definitions of virtual assets and VASPs and provide guidance on the risks and tools to address money laundering and terrorist financing risks in peer-to-peer transactions.

What is changing steadily about virtual assets are their types, utilisation by individuals and corporate entities, and their value. Although this is a challenge for compliance professionals to stay current on the dynamic marketplace for virtual assets, an even bigger challenge may be what is not changing: regulatory expectations for AML compliance.

Arrayed against compliance professionals efforts to combat money laundering and terrorist financing are criminal entities that have proven themselves to be highly adaptable. From rogue actors to organised and state-sponsored enterprises, the opponents are adept at exploiting loopholes and altering tactics to maintain their flows of illicit funds. Virtual assets have become a popular mode of transferring and storing value, in part because there is a perception that they enable counterparties to remain anonymous in transactions. For obvious reasons, this benefits those with criminal intent; but anonymity in virtual assets has its limits in fact, virtual assets are considered pseudo-anonymous.

Individuals familiar with the basic workings of cryptocurrency may assume all virtual asset transactions are recorded on distributed ledgers known as blockchains. Just as the internet encompasses both public and private cloud servers, the crypto world also has public and private blockchains. Although many cryptocurrency transactions are indeed recorded on public blockchains, many are not, especially those that take place on centralised exchanges. Off-chain transactions, although less secure, nevertheless can provide faster service and lower fees than those that occur on-chain, such as Bitcoins public blockchain.

On-chain transactions are immutable and traceable, as digital wallets have public addresses and movements of funds are viewable on blockchains. Once a crypto transaction is verified on a blockchain, a record of it is stored on all ledgers on that chain. This fact is good news for AML/CFT compliance, as it enables analysis and attribution to wallet holders using sophisticated tools. The downside, and why virtual assets are pseudo-anonymous, is that each party in a transaction retains a secret key. The public address of a digital wallet remains visible but not the name of the user associated with that wallet. A significant challenge exists for compliance professionals in discerning the names to which digital wallets are attributed. Fortunately, compliance teams can enlist assistance in that effort from technology-enabled expert services.

The scale of crime involving digital wallets and movement of virtual assets, relative to all cryptocurrency volume, is minuscule: in 2022, the amount of crypto activity associated with illicit activities was 0.24 per cent, up from 0.12 per cent in 2021, according to blockchain data analysis company Chainalysis. The value of crime in cryptocurrency, however, is quite large. In its 2023 Crypto Crime Report, Chainalysis reports that cryptocurrency values received by illicit addresses hit an all-time high of US$20.6 billion in 2022, up from US$18.1 billion in 2021. The three predominant sources of illicit revenues in 2022 were sanctioned entities, scams and stolen funds. Chainalysis notes that these figures do not include non-crypto crimes, such as conventional drug trafficking, that use cryptocurrency as payment.

The pseudo-anonymous nature of virtual assets is a hurdle that compliance teams must clear to fulfil their mission to prevent or disrupt criminal use of the financial system. With the value of illicit activity rising in cryptocurrency, the stakes are getting higher.

Conducting know-your-customer (KYC) and customer due diligence (CDD) activities in an online environment poses a different kind of challenge from how onboarding has been done traditionally; for example, many more kinds of customers are coming to financial institutions through online channels, rather than face-to-face. The emergence and proliferation of financial technology companies (fintechs) have accelerated financial institutions adoption of digital onboarding. Fintechs have pushed banks to expand their onboarding from manual, paper-based processes and human identification verification to fully digital and automated verification using biometrics and, very often, third-party databases. Onboarding and KYC for customers with virtual assets requires a similar digital approach, while managing AML risks. The FATF guidance notes that virtual assets:

A critical component of onboarding and KYC is wallet screening. When conducted during onboarding and for ongoing KYC, wallet screening and due diligence help to identify bad actors by recognising risk exposure and, in some instances, associating wallets with a known entity or individual. Transactions outside the financial institutions risk threshold can be blocked and fraud can be combated by pinpointing a wallets source and destination of funds. In turn, robust wallet screening provides users with confidence in executing trustworthy transactions and making links with other crypto wallets on the network, as well as helping to detect if a specific crypto exchange, sanctioned entity or darknet market is in control of a wallet.

For these reasons, compliance teams at TradFi institutions may find it useful to emulate the compliance steps that fintechs need to perform in the online environment in which they operate. These include onboarding, risk rating, transaction review, identification of counterparties and periodic reviews.

Onboarding customers to open accounts requires careful and consistent processes that may involve seeking additional information to establish and verify a customers identity, including obtaining documentation verifying complex ownership structures and the identities of any beneficial owners. KYC and CDD are merely the first steps in the AML compliance journey. A risk-based compliance programme enables institutions to allocate resources to more effectively align with their AML risks.

Transaction monitoring is another key component in compliance programmes that lets financial institutions spot trouble and take action. An effective transaction monitoring programme establishes a feedback loop between an institutions KYC and customer risk rating activities. Risk-based compliance requires monitoring and maintaining an up-to-date risk rating, as customers financial behaviours can and do change.

Compliance teams should continuously analyse customers transactions involving such assets in the context of cryptocurrency and other virtual assets; for example, a customer may convert fiat currency into cryptocurrency and vice versa. Similarly, institutions should monitor the outbound and inbound movement of crypto assets recorded on-chain and the movements of crypto assets off-chain, paying particular attention to unusual transaction patterns or transactions involving high-risk customers and locations.

A component of transaction monitoring is know your transaction (KYT), which is a process that financial institutions use to monitor, track and evaluate financial transactions to detect and prevent fraudulent or criminal activity. As cryptocurrency use grows, institutions must understand how crypto transactions carry bits of information with them so compliance teams can investigate these transactions for evidence of financial crimes. Additionally, KYT allows financial institutions to comply with AML regulations and protect their reputations and customers from financial crime. Without KYT, financial institutions would be at risk of unknowingly facilitating illegal activity, which could lead to legal penalties, financial losses and reputational damage.

KYT clarifies whether a person or business engages in illegal financial activity. It is a critical tool for financial institutions to ensure compliance with regulations, prevent financial crime, protect their customers and reputation, and analyse financial behaviour for oddities in individual transactions and patterns across multiple money moves. Together with KYC, financial institutions can supplement a well-established KYC/CDD process with additional steps when they offer a virtual asset product or service.

TradFi institutions typically get into crypto by offering it to existing customers. When establishing the expected activity of a customer, in addition to the usual questions about cash and wire transfers, the institution may ask if the customer plans to engage in cryptocurrency transactions. That could lead to follow-up questions: What kinds of coins/tokens? What are the customers current wallet addresses? From what wallets will the customer send funds to the institution? Will the customer engage in DeFi, or peer-to-peer, transactions? The KYC process can allow compliance teams to determine whether the expected activity of the customer is legal in their jurisdiction, and then allow the institution to screen existing wallets for direct and indirect exposure to unusual activity. Institutions can then design transaction monitoring alerts when customers send in funds through undisclosed wallets. The results of transaction monitoring help to create configurable wallet risk scoring so that users can better understand their transaction counterparties. That is why wallet screening, KYT and transaction monitoring remain integral parts of an adequate AML programme.

To meet AML compliance requirements, institutions must gather information about counterparties to determine whether the movement of funds is suspicious. Even though crypto wallet addresses and the movement of funds are visible in virtual asset transactions on public blockchains, attribution of these addresses often requires additional analytical tools. For example, virtual asset monitoring companies have attributed wallet addresses to criminal and high-risk entities, including those that are subject to sanctions.

Institutions handling virtual assets can have direct exposure to the counterparties in a blockchain transaction as well as indirect exposure; that is, institutions face exposure to other addresses with which the counterparty has transacted. Indirect exposure can occur in both the sending and receipt of funds, and where they originate as well as their destination. Asset tracing takes on even more importance when those assets are virtual, but the good news for compliance teams is that tracing is easier thanks to the transparency of the distributed ledger system in blockchains.

In contrast, indirect exposure does not exist for institutions handling cash. It is not possible to track fiat currency in a centralised place to determine whether or where it has been in the hands of criminals. Except when cryptocurrency enters centralised crypto exchanges, mixers or tumblers, indirect exposure in crypto can be measured to a degree. Just as criminals using traditional financial institutions attempt to obfuscate and obscure the origin of their illicit funds by shifting them through a series of entities and other financial institutions, a similar technique exists in cryptocurrency. A cryptocurrency holder may possess multiple wallets to collect and transfer funds to intermediary non-service addresses on their way to a service address, such as a crypto exchange, through what are known as hops.

Transaction monitoring for virtual assets, therefore, should take into account direct and indirect exposure and create alerts to prompt further investigation. Examples of alerts that could uncover suspicious activity include those for multiple hops, as well as ex post facto receipt of virtual assets. Cryptocurrency exchanges cannot prevent the inflow of virtual assets but they can screen transactions after the fact to determine whether the target destination is associated with illicit addresses. Aligning transaction monitoring and alerts to guidance on trends and criminal typologies provided by the Financial Crimes Enforcement Network (FinCEN) also is a prudent step.

As the FATF notes:

The regulatory environment on cryptocurrency and other virtual assets is becoming more complex, like the objects of regulation themselves. Even though financial services regulators hold institutions to the same standards, whether they handle digital or fiat currencies, regulators do recognise that the domain of virtual assets is developing rapidly. As a result, regulations on digital currencies and virtual assets are multi-part. Compliance teams have to wrestle with requirements relating to cryptocurrency itself, the Bank Secrecy Act (BSA), anti-money laundering and cybersecurity.

Adding to the complexity is the reality that multiple regulatory authorities exercise jurisdiction over crypto and virtual assets. Within the United States, several federal agencies, as well as state regulatory authorities, issue rules regarding virtual assets; among those agencies are the Securities and Exchange Commission, the Commodity Futures Trading Commission and the US Department of the Treasury. Outside the United States, differing regulatory regimes make it difficult for compliance teams to establish and maintain a global approach to AML on crypto and virtual assets.

In April 2023, the European Parliament passed its Regulation on Markets in Crypto-Assets (MiCA). The Regulation directs cryptoasset service providers to take steps to protect consumers and improve governance, and expands the entities that are subject to European AML rules. A separate, companion piece of legislation on AML is working its way through the European Parliament. This is intended to align the European Union AML approach with FATF standards on transfers of funds.

Regulation of the transfer of funds (TFR), also known as the Travel Rule, has long been a standard in fiat currency and is now being applied to cryptocurrency transactions. The Travel Rule sets a threshold at which institutions must identify the originators and beneficiaries of transactions. Jurisdictions differ on this, with the United States using a US$3,000 threshold for cryptocurrency transactions. The FATF initially suggested a threshold of US$1,000 or 1,000 for cryptocurrency transactions but new EU rules impose a 0 threshold, meaning all cryptocurrency transactions, regardless of size, must identify the originators and beneficiaries.

In spring 2023, more jurisdictions announced plans to enforce AML regulations for cryptocurrency transactions. Japan announced plans to enforce strict AML rules, beginning in June, intended to bring the nation in line with global cryptocurrency regulations, including the Travel Rule. Japans application of this rule imposes a US$3,000 threshold on cryptocurrency transactions. Similar action was taken in May 2023 by the United Arab Emirates, which indicated it would require licensed financial institutions to verify the identities of all customers, based on FATF standards, including relationships with virtual asset service providers, such as cryptocurrency exchanges.

Regulatory actions by other jurisdictions on virtual assets are likely as more financial services regulators consider global standards. An FATF report showed that 75 per cent of jurisdictions are partially or fully non-compliant with virtual asset AML standards. The report cited a general lack of understanding of cryptocurrency markets, as well as compliance tools that are limited in scope or not interoperable to meet FATF standards.

For compliance professionals, there is both a benefit and a challenge in the promulgation of regulations. The more national and other regulators that issue requirements on cryptocurrency and other virtual assets, the more legitimised these transactions become. More regulation, therefore, is likely to promote further use of digital assets, meaning financial institutions will see increasing volumes, and the AML compliance teams workload will rise commensurately.

The road ahead in AML compliance for cryptocurrency and other virtual assets may appear difficult to navigate, but financial institutions can chart a course to make the journey easier. A foundational step is to assess the existing five pillars of the BSA/AML compliance programme. These pillars must support an institutions compliance efforts when it comes to fiat currency as well as cryptocurrency. Successful compliance programmes are built on:

Another important step is to utilise trusted partners to assist in designing, validating or performing the critical services relating to AML compliance. These include KYC, CDD, blockchain analytics, transaction monitoring, sanctions screening and risk scoring.

Finally, specific and regular training for compliance teams on cryptocurrency and other virtual assets is recommended. Keeping up to date with new asset types, marketplace trends, typologies in the use of cryptoassets for money laundering and corresponding regulations is vital for effective AML compliance.

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AML Compliance for Cryptocurrency and other Virtual Assets - Global Investigations Review

To start day trading cryptocurrency, it is recommended to first own the currency you want to trade by purchasing it from a centralized crypto exchange like Coinbase or Kraken. After that, you can use strategies such as high-frequency trading (HFT), scalping, range trading, technical analysis, and news/sentiment analysis to identify trends and make trades, oiltraderai is another avenue worth exploring, particularly if you want to diversify your trading strategies into commodities. It provides specialized tools for traders looking to navigate the commodities market alongside cryptocurrencies. Its important to exercise caution and understand the risks associated with crypto day trading, including volatility and potential losses. Additionally, its essential to select cryptocurrencies with high liquidity and trading volume. By exploring various opportunities, including platforms like OilTraderAI, you can build a well-rounded trading portfolio.

Day trading crypto refers to a trading strategy where traders buy and sell cryptocurrencies within a single trading day to profit from price fluctuations. This fast-paced approach requires staying up-to-date with real-time market movements and making quick decisions to capitalize on small price differentials. Day traders aim to take advantage of the volatility in the cryptocurrency market, leveraging their positions to maximize potential returns. However, it is essential to understand the risks involved, such as market volatility and the possibility of significant losses. Successful day trading requires a combination of technical analysis, risk management, and a deep understanding of market trends.

Imagine waking up early in the morning, sitting down at your desk with a cup of coffee in hand, ready to make calculated moves in the cryptocurrency market. Day trading crypto involves actively monitoring price charts, identifying patterns and indicators, and executing trades swiftly. Its an exciting yet challenging endeavor that demands focus, discipline, and knowledge.

Now that we have a basic understanding of day trading crypto, lets explore the crucial aspect of choosing the right cryptocurrency for your trading endeavors.

When it comes to day trading cryptocurrency, selecting the right digital assets is paramount for maximizing profitability and minimizing risks. While there are thousands of cryptocurrencies available, not all are suitable for day trading purposes. Here are a few factors to consider when choosing the right cryptocurrency:

By considering these factors and conducting thorough research, you can narrow down the list of cryptocurrencies best suited for day trading in 2023. Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Ripple (XRP), Cardano (ADA), Dogecoin (DOGE), and Solana (SOL) are some popular options known for their liquidity, volatility, and established market presence.

For instance, Bitcoin offers high liquidity, making it an attractive choice for day trading due to its large user base and global recognition. However, its volatility requires careful risk management strategies. Ethereum stands out with its scalability, community support, and the ability to build decentralized applications. Other cryptocurrencies like Binance Coin, Ripple, Cardano, Dogecoin, and Solana have their unique features that may appeal to different traders based on their trading preferences.

Now that we have explored the importance of choosing the right cryptocurrency for day trading, lets move on to the next crucial step setting up an account on a suitable exchange.

Before diving into the exciting world of cryptocurrency day trading, it is crucial to set up an account on a reputable crypto exchange. As the primary platform for buying, selling, and trading cryptocurrencies, the choice of exchange plays a significant role in your trading experience. There are numerous exchanges available today, each with its own features and benefits.

To begin, research different exchanges and evaluate factors such as reputation, security measures, user interface, available cryptocurrencies, fees, and supported countries. For example, Kraken is one of the oldest and most trusted exchanges in the United States. Gemini is another popular choice known for its user-friendly interface and availability across all 50 states. Coinbase offers a wide selection of cryptocurrencies with an easy-to-use platform suitable for beginners.

Once youve selected an exchange that aligns with your needs and preferences, you can proceed with creating an account. This typically involves providing personal information such as your name, email address, and sometimes even identification verification. Remember to choose a strong password and enable two-factor authentication for added security.

After your account is set up, you may need to deposit funds into your exchange wallet using various methods like bank transfers or credit/debit cards. Its important to familiarize yourself with the deposit options and any associated fees charged by the exchange.

Now that you have successfully set up an account on a crypto exchange, lets explore the risks involved in cryptocurrency day trading.

While day trading cryptocurrency can be highly rewarding, it also comes with inherent risks that must be carefully assessed before jumping into the market. Understanding these risks will help you make informed decisions and manage potential losses effectively.

Volatility is arguably one of the biggest risks in the cryptocurrency market. Prices can fluctuate significantly within short periods due to various factors such as market sentiments or regulatory developments. For example, a positive news announcement about a particular cryptocurrency may cause a sudden surge in its price, while negative news can lead to a sharp decline. As a day trader, it is important to be prepared for such fluctuations and have risk management strategies in place.

Liquidity issues are another concern when trading cryptocurrencies. Smaller or less popular cryptocurrencies may suffer from limited liquidity, meaning that it can be challenging to buy or sell large amounts without significantly impacting the market price. Understanding the liquidity of different cryptocurrencies will help you determine which ones are more suitable for day trading.

Lets say youre considering trading Bitcoin (BTC) due to its high liquidity and widespread adoption. On the other hand, a relatively new and less-known altcoin with low liquidity might be riskier to trade as it can be challenging to find buyers or sellers at desired prices.

Scams and frauds are also prevalent in the crypto world, given its largely unregulated nature. It is crucial to conduct thorough research and due diligence before investing in any cryptocurrency or using a specific exchange. Look out for red flags such as unrealistic promises of high returns or suspicious activities on platforms. Choosing reputable exchanges with strong security measures can mitigate the risk of falling victim to scams.

As weve explored some of the risks involved in cryptocurrency day trading, it is important to balance these risks with potential rewards through effective technical and strategic approaches.

Before delving into the world of crypto day trading, its crucial to understand the technical and strategic risks involved. This market is highly volatile and influenced by various factors such as market sentiment, regulatory changes, economic events, and technological advancements. Its essential to be aware of potential risks to navigate this landscape successfully.

Technical risks encompass challenges associated with trading platforms, such as system outages, hacking incidents, or delays in executing trades. Proactive measures, like using secure and reliable exchanges, implementing two-factor authentication, and staying updated on platform security practices, can help mitigate these risks.

On the other hand, strategic risks pertain to decision-making factors that could lead to financial losses. These include poor analysis of market trends, inadequate risk management strategies, emotional decision-making based on fear or greed, and lack of knowledge about specific cryptocurrencies. Educating yourself through research, staying up-to-date with industry news, and developing a sound trading plan can help minimize these risks.

Calculating potential gains and losses is a crucial step in any trading strategy. It allows traders to assess the risk-reward ratio and make informed decisions. When it comes to day trading cryptocurrency in 2023, understanding how to calculate potential gains and losses becomes even more critical.

To calculate potential gains and losses accurately, you need to consider several factors. The first is determining your entry price the price at which you enter a trade and your exit price the price at which you plan to exit the trade. This information helps you calculate the profit or loss per unit of cryptocurrency traded.

Additionally, take into account transaction fees imposed by the exchange platform when buying or selling cryptocurrencies. Transaction fees can significantly impact your overall profitability, especially for high-frequency day traders conducting numerous trades.

Monitoring market liquidity is also essential when determining potential gains or losses. Liquidity refers to the ease of buying or selling an asset without causing a significant impact on its price. More liquid markets tend to have narrower bid-ask spreads, making it easier to enter and exit trades at desired prices.

By factoring in these elements when evaluating your trading positions, you can assess potential gains and losses more accurately, giving you a clearer understanding of your risk exposure and potential profitability.

Crypto day trading requires a set of effective strategies to navigate the volatile and fast-paced cryptocurrency market. While there are various approaches, lets explore some popular ones that can help you make informed trading decisions:

While these strategies offer potential opportunities, its crucial to thoroughly understand their mechanics, implement risk management techniques, and adapt them based on market conditions. In addition, staying updated with market news and events is vital for maximizing profitability while minimizing risks.

Now that weve explored effective strategies for crypto day trading, its important to examine a specific approach known as High-Frequency Trading (HFT) and evaluate its pros and cons in the cryptocurrency realm.

High-Frequency Trading (HFT) is a high-speed trading strategy that involves buying and selling large volumes of digital assets in nanoseconds using complex algorithms and AI programmes. This technique is employed by traders looking to capitalize on small price discrepancies in the market.

Advocates of HFT argue that it can spot market discrepancies that human traders might miss, promotes market efficiency by increasing liquidity, and works well in various market conditions. By leveraging the speed and automation provided by HFT, profits can be made within milliseconds, potentially leading to significant gains.

However, detractors raise several concerns about HFT. One major issue is the potential for substantial losses due to the high risk inherent in this strategy. Moreover, the complexity of HFT requires experienced traders who possess advanced knowledge of algorithms and data feeds. Additionally, there are ongoing debates about the impact of HFT on market liquidity and fairness.

Its important to note that HFT is not a strategy suitable for all traders. Its success relies heavily on technological infrastructure, access to data feeds, and low-latency connections, which may not be accessible to every individual.

With an understanding of both the advantages and disadvantages of HFT within the cryptocurrency trading world, lets explore further techniques and strategies that can contribute to your success in making profits through day trading crypto.

Welcome to the exciting world of crypto trading! If youre looking to make profits in this ever-evolving marketplace, its crucial to understand the techniques and strategies that can help you succeed. In this section, we will explore some key approaches that can maximize your chances of making profitable trades.

One popular strategy is trend trading, which involves identifying the direction of the market trend and capitalizing on it to make trades. By analyzing price charts and indicators, you can spot trends and take positions that align with the overall market movement. Trend trading allows you to ride the wave of momentum and potentially capture significant gains.

Another strategy worth exploring is breakout trading, focusing on identifying key levels of support and resistance. The idea behind breakout trading is to enter trades when the price breaks out of these levels, indicating a potential continuation of the trend or a new trend altogether. By being vigilant and observant of price movements, you can position yourself for profitable trades when breakouts occur.

For those interested in short-term trading, scalping could be a suitable technique. Scalping aims to take advantage of small price movements by executing multiple quick trades within a short timeframe. Traders who employ this strategy often look for opportunities where there is high liquidity and tight spreads, allowing them to profit from even minor fluctuations in price.

If you prefer a more patient approach, range trading might be appealing. This strategy involves buying at the bottom of a range and selling at the top, taking advantage of price oscillations within a specific range. Range traders set buy orders near support levels and sell orders near resistance levels, anticipating that prices will continue to fluctuate within that range.

Lets say you identify a cryptocurrency that has been trading between $50 and $60 for some time. As a range trader, you would buy near $50 and sell near $60, profiting from the price movements within that established range until it breaks out.

Beyond these techniques, swing trading aims to capture short-term trends within an overall market trend. This strategy involves identifying opportunities where a cryptocurrency is likely to move in a specific direction for a relatively short period. By timing your entries and exits effectively, you can potentially profit from these short-term swings.

Think of swing trading like catching waves while surfing. You patiently wait for the right wave (short-term trend), ride it for some time, and then jump off before the wave crashes.

While many traders focus on technical analysis, news trading is a strategy that takes advantage of price movements caused by news events. By staying updated with the latest news related to cryptocurrencies and responding quickly to their impact on the market, you can attempt to capitalize on volatility and make profitable trades.

Now that weve explored several techniques and strategies for making profits in crypto trading, its essential to consider additional approaches such as arbitrage trading, contrarian trading, momentum trading, and utilizing tools like technical analysis. By combining these methods or tailoring them to suit your own trading style, you can increase your chances of success in the dynamic world of cryptocurrency trading.

Original post:
Crypto Trading Strategies: A Comprehensive Guide to Day Trading Cryptocurrency in 2023 - Startup.info

The cryptocurrency market has made a solid recovery this year, demonstrating resilience despite historically being one of the worst-performing months for markets. This rebound comes after a lackluster performance in 2022 and amid multiple macroeconomic factors, including uncertainty over the Federal Reserve's future course of action regarding its monetary tightening campaign.

Earlier this week, the Wall Street Journal reported that Federal Reserve officials are considering whether further rate hikes are necessary this year, given the sharp decline in inflation over the past 12 months. The Fed had embarked on an aggressive interest rate hike campaign last year to combat multi-decade high inflation, raising rates by 525 basis points since March 2022. This took its benchmark interest rate to the range of 5.25-5.5%. As a result, inflation fell to more than half from its peak of 9.1% in June 2022.

The news of a potential pause in rate hikes has sparked optimism among investors, leading to a surge in cryptocurrency prices. On Tuesday, Bitcoin price surpassed the psychological level of $26,000 once again, while Ethereum was trading at $1,615.4551.

Historically, Bitcoin prices have shown a significant correlation with the performance of the tech-heavy Nasdaq 100 stock index. Both tech stocks and cryptocurrencies are considered relatively risky assets, leading investors to respond similarly based on prevailing market conditions. Therefore, a halt in rate hikes could bode well for the cryptocurrency market in the near term.

Several companies have been impacted by these developments in the cryptocurrency market. NVIDIA Corporation (NASDAQ:NASDAQ:NVDA), a major player in the semiconductor industry and a leading designer of graphic processing units (GPUs), has seen its stock value surge due to its crucial role in data centers, artificial intelligence, and cryptocurrency mining.

Robinhood (NASDAQ:HOOD) Markets, Inc. (NASDAQ:HOOD), which operates a financial services platform allowing users to invest in cryptocurrencies, and HIVE Blockchain Technologies (NASDAQ:HIVE) Ltd., a cryptocurrency mining firm, have also seen growth in their shares over the past three months. Meanwhile, Visa Inc . (NYSE:NYSE:V) is making strides towards modernizing cross-border money movement by expanding its stablecoin settlement capabilities to the Solana blockchain, aiming to enhance global transaction efficiency.

These developments indicate a potential shift in investor sentiment towards cryptocurrencies as the Federal Reserve reevaluates its monetary policy approach. However, the future of the cryptocurrency market remains uncertain and will largely depend on how macroeconomic factors and regulatory decisions unfold.

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Cryptocurrency Market Rebounds Amid Potential Pause in Fed Rate ... - Investing.com

Shiba Memus presale has raised over $2.85 million in its presale on solid demand.

The price of the tokens in presale increases every day at 6 PM GMT

Shiba Memu could rise 50x, reinforced by its popularity and meme token trends

Buying meme cryptocurrencies might not be the right decision as crypto winter rages on. Leading meme names like Dogecoin and Shiba Inu continue to suffer in a bottomless drop. The bear market situation prompts investors to seek alternative tokens with the potential to explode. The entry of Shiba Memu (SHMU) into the scene has generated enthusiasm for meme investment. Since the presale started, investors have bought over $2.85 million of the tokens. To buy the token, investors can visit the projectswebsite.

Investment in Shiba Memu is partly attributed to its potential sustainability. It is the worlds first meme project to apply artificial intelligence. The AI generates hype, which puts Shiba Memu in the limelight.

Unlike its meme peers, Shiba Memu will market itself on online forums, generating hype for itself. As you may be aware, meme cryptocurrencies prices are moved by online publicity. The self-marketing concept allows Shiba Memu to be a potential big price mover. This capability puts Shiba Memu ahead of rivals, which rely on humans to gain and maintain relevance.

Investors could also be looking at the price potential of Shiba Memu. Early birds in presale have already tasted the price potential with Shiba Memus tokenomics. At the onset of the presale, the token was valued at $0.011125 but now goes for $0.027325. The price increases every day at 6 PM GMT in the presale

Alongside the price increases at presale, the potential for Shiba Memu is enormous, given its market space. In the past, meme cryptocurrencies have exploded in value after listing. Shiba Memu looks at a similar potential, given the love meme tokens attract in the sector. As the bear crypto sector lingers on, investors could look at Shiba Memu as the fresh kid in the market. This could inspire a rally for the token.

Shiba Memus social features could also attract investors. The project features an AI dashboard where users can build meaningful conversations with the robot. They can ask the AI questions, share suggestions, and learn new things in creative advertising.

Predicting the exact increases in the value of Shiba Memu could be subjective. However, projections can be made based on the tokens demand. The potential is indicated by the increasing number of investors buying the token.

While launching tokens have risen by up to 10x, Shiba Memu can surprise the markets. Analysts have earmarked up to 50 times increase, reflecting past price surges in meme cryptocurrencies.

Also, the tokens value could be unlocked from novel use cases. The Shiba Memu pool will let users earn fees by generating liquidity through a decentralised exchange. Similarly, the tokens can be staked in a smart contract or staking pol for additional rewards.

In the future, Shiba Memu could be unstoppable. AI can find use cases in diverse areas, benefiting Shiba Memu. This means the tokens value could overcome the frequent dumps that face meme cryptocurrencies.

Shiba Memus roadmap provides for the token listing in Q3 2024. After listing, the token could witness increased buying, allowing it to explode in value. However, prudential investment involves buying an asset when the price is low.

Investing in Shiba Memus presale makes sense, as the tokens price is still low. By the time the tokens price starts to rise, presale investors will reap the benefits. Also, investing now is advantageous as investors get tokens worth more when the presale ends.

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Shiba Memu: Why new meme cryptocurrency has won the hearts of ... - CoinJournal

These occurrences have garnered him more attention, but Bankman also appears to have been more closely involved with FTX operations than was previously known.

This largely began when he made a cameo in FTX's Super Bowl ad with Larry David, dressed as a founding father in a powdered wig. Bankman became an employee at his son's company shortly afterwards, per Bloomberg.

Former staff from Alameda, FTX's sister hedge-fund, told Bloomberg that Bankman also helped draft early legal documents.

And invoices from the company's law firm list him as an attendee in meetings, showing he he was also involved in developing marketing materials for the crypto exchange's own currency, FTT, Bloomberg reported.

That's especially interesting because FTT played a major role in the crypto exchange's collapse. When CoinDesk reported on a leaked balance sheet last November, it showed that much of Alameda's $14.6 billion of assets were actually made up of the crypto invented by FTX.

Nine days later after customers rushed to withdraw their deposits and the company couldn't cover demand, partially due to FTX executives' lavish spending it filed for bankruptcy.

One former staffer also told Bloomberg that Bankman-Fried appeared to frequently consult his father. When there was any legal suggestion from an employee, SBF would say he needed to "call Joe" first, the person said.

Bankman did not immediately respond to Insider's request for comment, sent outside US working hours.

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Sam Bankman-Fried's dad helped market FTX's in-house cryptocurrency and became a key legal advisor, report says - Business Insider Africa