Bytecoin (BCN) listed on Binance (BNB) yesterday - arguably the leading exchange in the world, and the price & volume effect was staggering. In a day where Bitcoin (BTC) traded in a 2.7% range, the action in BCN was certainly a stark contrast. Prior to the listing, BCN was hovering around $0.007 (0.7 cents), which implied a market cap of $1.28 billion based on the coin supply of 183.88 billion. And when the listing started, the price went bananas, as you can see in the Binance market chart below.
One of the beautiful things about Ethereum is that every single transaction happening on its blockchain is open to the world. From a data perspective, this means that there is an abundance of interesting analyses we can perform, and insightful metrics we can calculate from these transactions. In particular, one area that has not yet received much attention yet is token retention - that is, what % of wallets hold onto their tokens over some time. Given the popularity of “HODL”, it’s quite surprising that we haven’t seen many hard metrics on token retention yet (although Dhruve Bansal did perform an excellent piece of analysis on Bitcoin’s “HODL Waves”). After all, the transactional data of ERC20 tokens are readily available for us to study. Dealing with Ethereum data is not exactly plug-and-play, but at CoinFi we ingest these transactions as a part of our data warehouse, allowing for easy access and analysis. But before digging into the data, let’s look at how we define retention.
You can read the steps below to learn more about how to use the Kucoin platform to acquire COFI tokens: Users can start depositing COFI to KuCoin January 29th, 2018 at 18:00 (UTC +8), and trading COFI on KuCoin January 29th, 2018 at 22:00 (UTC +8).
We're going to have a look at CoinFi's Portfolio Management System Tool and I'll walk you through my own portfolio to show you how I analyze risk.
It's a similar system to what professional traders use in hedge funds and the equity world.
Why Is It Important?
We put together a quick video to show you how you can arbitrage between exchanges and make risk-free money. These arbitrage loopholes will eventually close as more and more traders try to take advantage of them, but because the crypto markets are new and relatively inefficient, at the moment these arbitrages exist all day and you can make 2-3% return on each trade, risk free.
Here at CoinFi, we've been working on alpha testing for multiple different trading signals, as you can see in the other posts here on the blog. One signal we've had some fun testing, is identifying arbitrage opportunities between exchanges, allowing you to make risk-free gains just by clicking a few buttons. For example, in one experiment, Co-Founder Tim exploited a 3% price difference between Ripio/BTC on Binance and Bittrex, to slightly increase his BTC stack. 2-3% doesn't sound like a lot, but just by doing ONE trade per week, over the course of a year you can double your stack, risk-free.
This video shows you how a rapid acceleration in volume can be a strong indicator of a coin's price movement up or down. We can show via backtesting that this indicator can be predictive of price increase/decrease. Obviously, being able to anticipate price changes in real-time opens up many profitable trading opportunities. In the video below, we take a look at NEO's actual charts to show how this trading signal could have helped you lock in a 50% profit in a 12 hour window.
In this video, you'll learn about how abnormally high trading volume can act as a leading indicator for alerting you to breaking news that could affect a cryptocurrency's price, and how we're building abnormal volume detection signals to help you keep track of the altcoins you're interested in.
The video below shows you how to detect automated bots that place orders automatically and trade ahead of you at your expense.