Friday, November 27, 2020
Home CryptoPotato News Waves vs Currents: How the Hashpower Market Can Complement Altcoins 

Waves vs Currents: How the Hashpower Market Can Complement Altcoins 

[Featured Content]

Last month, Bitcoin’s difficulty and hashrate hit an all-time high. And while some experts argue increasing hashrate is a bullish price signal, others contend a strong correlation between the two has never existed.

Regardless, companies are capitalizing on the value placed on hash power, recognizing not only the varied usage hash power possesses beyond mining, but also the natural evolution of trading options for investors.

The Importance of Hash Power

Though analysts can’t agree on the relationship between hashrate and pricing, they can agree on the importance of hash power itself.

At the beginning of 2020, exchanges were expanding their product offerings and entering the world of derivatives. Recently, a number of start-ups entered the derivatives market as well – such as Global Hashpower Exchange, an exchange dedicated purely to hash power futures contracts.

“We see hash power as more than the ‘generator’ that powers data mining. It’s an essential key for a rapidly expanding array of ‘big data’ services, such as artificial intelligence, data analysis, and security protocols,” says Eno Chen, CEO of Global Hashpower Exchange.

But as the use of hash power grows, getting traders to practice trading it as a commodity will take time to adopt.

“I think all traders want options. Just as the stock market expanded into commodities and bonds, crypto traders are growing tired of simply buying, holding, and selling coins. Investors can decide if they want to invest in waves or currents,” says Chen. “Investing in hashpower futures is like catching a current that will likely carry you to your financial goals, while day trading coins is closer to surfing waves in pursuit of short-term financial wins. The strategies complement each other and both have a place in a balanced investment portfolio.”

Global Hashpower Exchange is currently giving new users a free 200 USDT deposit and 10 free trades with the promo code “Hashpower” on their site.

Trading Hash Power

GHPEX allows users to trade futures contracts where the underlying asset is a network’s hashrate. This could be used as a means of diversifying a cryptocurrency portfolio as the correlation between price and hashrate is not necessarily relevant.

Furthermore, the exchange would also allow users to trade with a leverage of up to 10x. Naturally, leveraged trading can increase your profits but it can also cause massive and quick loss of capital. It’s not recommended for people without sufficient market experience and you should never invest more than you can afford to lose.

The official website claims that the company is fully regulated by the FCA and CySec and that users’ funds are protected by industry-leading security protocols.

In terms of deposits, users can use BTC, ETH, and USDT. The same is true for withdrawals. The base currency and user balance are displayed in USDT. There’s a flat $1 trading fee per contract traded.

According to the FAQ section, GHPEX uses a combination of cold and hot wallet storage to safeguard the funds of investors.

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