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Showing posts from January, 2021

How Bitcoin wallet works?

Bitcoin is the top cryptocurrency which came into existence in 2009. Through it, transactions are made with no mediator or banks. Bitcoins are useful to buy merchandise anonymously in an exchange organized market. It makes international payments easier and cheaper because Bitcoins are not confined to a particular country or subject to regulation. Since Bitcoin is a digital currency, they can’t be stored in any physical shape or form. Private keys enable an easy access to your public Bitcoin address and transaction signatures.  A Bitcoin wallet is also called as a digital wallet. It is important to maintain a crypto wallet in order to trade in Bitcoins. The Bitcoin wallet works in a similar manner as a physical wallet with a difference that instead of storing physical currency, the wallet stores useful information like a secure private key. Bitcoin wallets are beneficial to send and receive cryptocurrency as per the Bitcoin protocol. The wallets resemble software programs to interac...

Technical Analysis V/S Fundamental Analysis

Technical Analysis and Fundamental Analysis are two major school of thoughts used to predict the market movements but have their own way of operation. Traders use technical analysis and investors use fundamental analysis to find out and explore the stock market future prices. Each method has its own unique qualities that are used by specific players in the stock market. Hence, it is important to understand the distinction between the two and use it as per one ’ s advantage. Fundamental analysis understands the stock of a company through the measurement of its intrinsic value. Fundamental analysts study everything and look at every aspect of the economy from overall working to industry conditions to the financial power and management of each company in the economy. Though, a stock value is a matter of opinion, relatively undervalued companies can outperform over the long term. The major basis of technical analysis is studying stock prices or volume data. The aim here is to understand a...

CFA course V/S MBA Finance

A major doubt that prevails among aspiring financial enthusiasts is choosing a career opportunity between a CFA Charter holder and a MBA program. It is worth knowing that both are highly regarded finance accreditations that need a lot of hard work and provide amazing career acceleration. To make an appropriate choice between the two courses, it is essential to know about them. CFA program or a Chartered Financial Analyst course is a professional certification conducted by CFA Institute, based in California, USA. Students who clear all three levels of CFA exam earn the CFA Charter holder. The educational focus of a CFA program is on providing a deep knowledge of investment analysis, management and ethics. The duration of an MBA program is two years, with classes including a lot of topics such as human resources, accounting, marketing, sales, managing operations, supply chains and technology. Students pursuing MBA can only start working after completion of their graduation. However, a C...

Will cryptocurrency be the future?

The journey of altcoin and bitcoin, forms of cryptocurrency exchange , started in 2009. It was used for peer-to-peer transactions without the involvement of a third party such as a central bank. People who made transactions through digital currency in early times earned millions owing to value fluctuations. Thus, the price reached about $19.783 (around €16.17) per bitcoin in late 2017. This effect was called the “ price bubble ” by critics. This created a trend of buying, selling and trading bitcoin. New cryptocurriences were also introduced- Litherium in 2011, Ripple in 2012, Ethereum in 2015. Over the time span, digital transactions have created their way to success. A huge shift from traditional monetary system of exchange to digital currency has been seen. The significant rise in cryptocurrencies results from the failures in existing financial system. The new system of digital payments is not only easy to execute, but transparent too. The cost of financial transactions through c...

How technical analysis works?

Stock market technical analysis implies the study of historical market data, such as price and volume. Through the help of market psychology, economics and quantitative analysis, individuals use technical analysis to forecast future market behavior based on past performances. Chart patterns and technical analysis indicators are two common forms of it. Traders make their decisions based on technical analysis to know what is likely to happen in the stock market.  Traders may use simple trend lines, volume indicators, chart patterns, technical indicators to make their decisions.  Candlestick chart is the most commonly used chart pattern. Each candlestick chart denotes different price action in different time periods. For example, every candlestick on an hourly chart shows the price action for one hour, while every candlestick on a 4-hour chart showcases the price action during each 4-hour time period.  Support and resistant levels are used to find out the price points on ch...

Is CFA exam tough?

Clearing the CFA program needs discipline, focus and extensive studying hours. One must have a proper plan and the right kind of guidance to pass all three levels. The exam consist of different topics such as economics, finance, ethics and professional standards, corporate finance, equity, derivatives, portfolio management etc. The preparatory books provided by CFA institute are a bit complex for the students to understand. That is why students find it difficult to study for CFA exam and look for alternative preparatory materials. Getting the right assistance is essential to clear Chartered Financial Analyst Course easily.  The test material for CFA exam is extremely difficult. The questions in the examination are designed to trick the candidates. Therefore, it is important for the students to give mock tests so as to stay updated with the similar type of questions offered and feel confident to clear the exam in the first go. It won’t be wrong to say that CFA exams are very difficu...

What are Ethereum and Ripple in Cryptocurrency?

Cryptocurrency is a digital method of payment that can be used to buy and sell goods and services. Cryptocurrencies function through a technology known as “Blockchain”. It is a technology spread across many computers that analyze and record transactions. Ripple and Ethereum are cryptocurrencies that work through blockchain technology. It helps people make easy transactions without physically being present at a particular place. It removes all geographical boundaries and makes the transaction process accessible.  Ethereum was launched in 2015 and founded by Russian-Canadian developer, Vitalik Buterin. It is the first blockchain ever to enable the creation and entering of smart contract agreements by people. A smart contract is a kind of agreement which works on some pre-conceived conditions and proceeds with the transaction after those conditions are fulfilled. The Ripple cryptocurrency was first produced in 2012, three years prior to Ethereum. Ripple Labs, located in San Francisco,...

What are technical analysis indicators?

Indicators are an important element of technical analysis. Indicators are pattern-based signals created through the price, volume, and/or open interest of a security or contract used by traders under technical analysis. Traders who follow technical analysis use indicators to forecast the movements in price. Some examples of common technical indicators are- the Relative Strength Index, Money Flow Index, Stochastic RSI, MACD and Bollinger Bands. Technical indicators are used by analysts and chartists to study price data and understand when to enter or exit the trade in stock market. It is an instrument produced to study investments and know best trading opportunities, like the volume and price movement. It can be useful for any historical trading data such as futures, stocks, commodities, fixed income, currencies and different securities. Active traders commonly use indicators because they analyze short-term price movements through it.  Indicators in stock market are divided into 2 ...

How CFA course works?

Completing a CFA course and earning a Chartered Financial Analyst (CFA) is one of the respected designations in finance. CFA charter is considered gold standard in the field of finance. This globally-recognized professional program is conducted by CFA Institute (USA). To achieve CFA Certification, one needs to clear three exam levels which cover areas, like FRA, economics, ethics, equity fixed income etc. Enrolling for a CFA course provides a lot of benefits to the candidates such as education benefits. CFA helps you learn a lot and add a major credential to your CV. People in the business understand the time and dedication it takes to earn the charter, which makes it one of the most reputed designations in the world. A lot of financial benefits are also attached to it. You get a better hike in salary in comparison to other programs or reach a better designation after you become a CFA.   CFA course serves as a golden ticket in the field of investment. CFA program opens the door ...

What is Bitcoin?

Bitcoin is a popular form of cryptocurrency exchange which came into existence in 2009. Through it, transactions are made with no mediator or banks. Bitcoins are useful to buy merchandise anonymously in an exchange organized market. It makes international payments easier and cheaper because bitcoins are not confined to a particular country or subject to regulation. Bitcoins are also brought by people as an investment, in hopes of increased value in the future. Bitcoin provides less transaction fees than old online payment methods. There are no physical bitcoins, rather only balances which are accessible by everyone. Bitcoins are not provided by any bank or government. Bitcoins have gained immense popularity, and has laid the foundation of a lot of virtual currencies collectively known as Altcoins. A lot of marketplaces such as “bitcoin exchanges” ensure buying and selling of bitcoins using multiple currencies. The transfer of bitcoins is quite easy as people can send bitcoins to e...