Upbeat Japan’s Q1 data helps yen

The reading of Japan’s Q1 GDP recovered from 1.3% forecast to 1.0% QoQ, as well as -3.9% compared to -5.1% as per annual report. It has to be noted that the sign of economy recovery despite the coronavirus (COVID-19)-led emergencies in major prefectures, favor the Japanese yen (JPY).

Separate figures portrayed that the wages rose in April at the fastest pace since 2018. “The larger-than-expected upward revision to Japan’s first-quarter GDP looks good on the outside but – based on the composition – is weak on the inside. One major factor behind the smaller contraction relative to the preliminary reading was an increase in private inventory. That could unwind in 2Q – making a recession more likely,” said an Economist.

Elsewhere. It has to be noted that the Japan’s government will extend a state of emergency in the Tokyo region for another two weeks because its medical systems are still strained by COVID-19 patients, the minister in charge of virus response said Friday.

“For two more weeks, we will keep the measure in place so that we can firmly ease strains on hospitals” to meet conditions for lifting the emergency measures, economic revitalization minister Yasutoshi Nishimura told reporters.

A recovery is expected to take off again once virus restrictions are lifted. Meanwhile, virus cases are falling and the vaccine drive is finally kicking into gear. More than 17 million doses have been administered now compared with just a million at the end of March. Most of those shots have come in the last three weeks.

Elsewhere, The Japanese government is considering issuing certificates from this summer to coronavirus vaccine recipients that would be necessary for them to travel overseas, government sources have said. With a growing number of countries checking visitors’ inoculation records as a border control measure, the “vaccine passport” is expected to facilitate business travel, the sources said Monday.

USD/JPY 4 Hour Chart:

Support: 109.08 (S1), 108.90 (S2), 108.63 (S3).

Resistance: 109.52 (R1), 109.80 (R2), 109.97 (R3).

Amidst all the necessary steps taken by the Japanese government to deal with the virus even though economist feels that yen is weak on inside, we expect an uptrend for yen. We expect a bullish trend for USD/JPY.

Investing Vs Trading in Crypto

Crypto currency price has rose sharply in past 2 years. The total market value of all cryptocurrencies stands at $2.48 trillion, up from less than $1 trillion at the beginning of the year.

The two popular ways to take advantage of the crypto-currency market is to

  • Buy coins through an exchange
  • Trade cryptos via a CFD broker. Each way has its own advantages and disadvantages.

 

In this article we will discuss on advantages and disadvantages of both of these methods which will help you make decision on which method is the best for you. Before you make any decision, you should first think about that and develop your investment strategy. Owning cryptos (long term horizons) or trading them (short-term horizons)has different level of protection, fee scheme, payment methods, withdrawal methods, etc.

What is Investing in or Owning Crypto currency and why it is needed?

Owning cryptocurrencies is a great idea if you prefer to shop or to transfer money with them anywhere at any time quickly (faster than with normal bank transfers), at a lower cost and by taking advantage of a higher degree of anonymity than with traditional wire transfers.

To invest and own crypto-currencies, you first need to find an exchange first that you can trust. Then you can buy the crypto currency from the exchange with the fiat currency.

After purchasing your virtual currencies, you need to put them into a “wallet”, a program that is used to contain them. Most of the exchanges have its own “wallet” that clients can make use of it, but it is widely recommended that you use a wallet that only you have access to and fully control.

There are different types of wallets, they can be categorized into two main groups: “cold” and “hot” wallets. The main difference is whether or not they are connected to the Internet. While “hot” wallets are connected to the net, “cold” wallets are not.

What is crypto currency trading and why it is needed?

Cryptocurrency trading is the act of speculating on cryptocurrency price movements via a CFD trading account i.e buying and selling the underlying coins.

Trading crypro currency enables you to speculate on cryptocurrency price movements without taking ownership of the underlying coins. You can go long (‘buy’) if you think a cryptocurrency will rise in value, or short (‘sell’) if you think it will fall. Hence you can both buy and sell crypto currencies depending on the market trend.

Both are leveraged products, meaning you only need to put up a small deposit – known as margin – to gain full exposure to the underlying market. 

Main differences between Investing Vs trading in Cryptocurrency

1. Buy Vs Speculate

Investing in Crypto currency means to just buy and get the ownership to the crypto right away whereas Trading Crypto currency means to speculate the price movement of the crypto currency.

2. Long Vs Long and Short

By Investing in crypto , you can only buy i.e only long positions can be taken meanwhile in Trading crypto, you can both buy and sell crypto i.e you can take both long and short positions.

3. Hold Vs Price Swing

The strategy to earn in crypto investment is to hold the crypto till the price grows higher reaches your expectation and close the long position whereas In trading crypto, you can earn by the volatility of the crypto in either direction.

4. Full payment Vs leverage advantage

Full value of bitcoin purchase is required upfront for the buying of cryptocurrency while trying to own crypto whereas While trading crypto, you can utilize margin and leverage to make maximum use of account equity.

5. Hacking risk Vs Trusted broker

Holding the digital currency, cryptocurrencies are vulnerable to cyber-thieves. Hackers usually target crypto exchanges to drain their crypto wallets this is the reason why you shouldn’t keep your cryptos online in an exchange. In addition, as the crypto-sphere is quite new, it isn’t a regulated industry.

For this reason, using derivative financial products like CFDs (Contract For Difference) through a trusted broker can be an interesting option for you to make a profit from the crypto-market.

Is It Better to Invest or Trade Bitcoin?

There is no one word answer to this question. The choice should depend on the knowledge of Bitcoin and the available assets.

Are you confused about whether you should own or trade cryptocurrencies? Think first about your financial needs, goals, and horizons.

Along with being able to transfer money and use cryptocurrencies to shop whenever you want, owning virtual currencies can also be compared to longer-term investments. Making Investment in Bitcoin can start from a minuscule amount which can keep on increasing with time and experience.  Having coins in your wallet means that you can hold your virtual currencies until you want to sell them at a higher price later on in the future. In the meantime, you won’t pay fees for holding them. It’s also a long-term undertaking, which eventually might lead to accumulating a large amount of money. It can also ease the nerve-wracking volatility of Bitcoin as one would enter the market prepared for a wait.

Trading crypto-currencies via leveraged products like CFDs means that you do not own any coins, you are only taking advantage of the crypto market volatility instead. Trading crypto currencies is meant for those who know the Bitcoin nature in depth and aren’t afraid of losing. Trading crypto-currencies is a short-term investment strategy, where you are using price changes to make a quick profit without holding the underlying asset. The constant fluctuation of Crypto currency can be an exhilarating experience for any trader, but at the same time, it can scare away those who do not know how to deal with it.

The difference between investing and trading Crypto currency depend not only in the technicalities of it but also in one’s character and nature. Ask yourself: would you consider yourself as an investor or a speculator?

While both seek maximum profit, an investor doesn’t have the same trading strategy, level of risk aversion and objectives as a speculator. In any case, the key to successful investing of any kind is to use the right platform for your needs.

Also to be noted is that Exchanges tend to be riskier than CFD brokers, who are offer protections to retail traders. Brokers can be useful for you to be able to apply your short-term trading strategy and appropriate money management rules in a responsive trading environment, while strengthening your financial knowledge.

Some see trading Crypto currency as a Riskier yet wonderful opportunity, without any regulations and legitimate backup, while others are just waiting for the governance to kick in. It’s a game of which nobody can predict the end result.

Final words :

We hope that this article might have added some insights on comparison between Investing and trading crytocurrencies. To brief on choosing the investment and trading crypto currencies , You can choose crypto currency investment if you wish to shop with that or want to follow the long term hodl strategy and can opt for crypto trading if you prefer short term speculative strategy along with avoiding the risks associated with crypto owing. If you choose the later, Winstone Prime is the best platform to trade crypto currencies. Open account now and start trading crypto currencies.

Happy trading !!!

Improvement in Australian economy helps AUD

As per the Australian National report, Gross Domestic Product (GDP) of Australia has rose 1.8% this quarter which reflected the continued easing of COVID-19 restrictions and the recovery in the labor market. The level of economic activity is 0.8% above December quarter 2019 pre-pandemic levels and has grown 1.1% in through the year terms.

Also a growth in private investment is noted which has rose 5.3% in March quarter to be 3.6% higher through the year, the first through the year rise since June quarter 2018. Both business and housing investment increased, supported by government initiatives and improved confidence. Business investment was driven by a 11.6% rise in machinery and equipment, the strongest increase since December quarter 2009.

Growth was spurred by a soaring demand for commodities around the world and spending by consumers and businesses.

Rising household spending, investment by businesses, and higher prices of iron ore and gas exports helped drive the expansion, according to the Australian Bureau of Statistics. The speedy recovery of the country has been helped by its ability to contain coronavirus outbreaks, which boosted consumer and business confidence.

The Reserve Bank of Australia kept its official cash rate at the all-time low of 0.1% for the sixth meeting in a row, as policy-makers said they would continue to monitor inflation and rises in wages and house prices.

On the other hand, Treasury Secretary Janet Yellen said that the President Joe Biden should push forward with his $4 trillion spending plans even if they trigger inflation that persists into next year and higher interest rates. The comments came after Friday’s slightly softer-than-expected US May employment numbers.

AUD/USD 4 Hour Chart:

Support: 0.7680 (S1), 0.7618 (S2), 0.7586 (S3).

Resistance: 0.7774 (R1), 0.7806 (R2), 0.7869 (R3).

Amidst the Australian economy showing recovery signs, Aussie seems to be stronger against greenback. We expect a bullish trend for AUD/USD.

BTC/USD Weekly Forecast (07th Jun 2021 – 11th Jun 2021)

Fundamental view:

Bitcoin price is currently witnessing massive selling pressure. Tesla CEO Elon Musk’s involvement in Bitcoin has been an interesting development to track. His tweets on May 12 and May 19 worked as an important catalyst in accelerating the BTC price crash.

Regardless of this week being the state-owned Xinhua News Agency and China Central Television mentioned that the “general public has the freedom to participate in the trade at their own risks.” China’s stance on the cryptocurrency markets seems to remain indecisive while Google has overturned its March 2018 ban, which prevented people from running crypto-related ads.

The major economic events deciding the movement of the pair in the next week are JOLTS Job Openings at Jun 08, EIA Crude Oil Stocks Change at Jun 09, Core CPI monthly report, Initial Jobless Claims at Jun 10 and Michigan Consumer Sentiment at Jun11 for US.

BTC/USD Weekly outlook:

Technical View:

Last week’s high was 3.59% lower than the previous week. Maintaining high at 39376.0 and low at 34077.8 showed a movement of 5299 pips.

In the upcoming week we expect BTC/USD to show a bearish trend. The Instrument is trading below the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout below 34680.4 may open a clean path towards 31730.0 and may take a way down to 29382.2. Should 39978.7 prove to be unreliable resistance, the BTCUSD may raise upwards 42326.5 and 45276.9 respectively. In H4 chart symmetrical triangle breakout favors prospects of a bearish trend. Bearish harami pattern constructs a bearish outlook for the pair in the upcoming week.

Preference
Sell: 37450.6 target at 33038.8 and stop loss at 40003.7

 

Alternate Scenario
Buy: 40003.7 target at 45275.4 and stop loss at 37450.6