Bitcoin transaction graphs have a variety of observable patterns, with wallet clustering being the most important. Some of these patterns have been studied and used in both theory and practice to link coins from the same wallet.

All transactions consist of a list of inputs (where SAT is used) and an output (where the input SAT is distributed). input See the output of previous transactions, such as transaction connections. output Locks some bitcoin with certain expenditure terms (i.e. “address”, public key, or output script). Linking coins means identifying entities that control keys to a collection of transactional output, used, or spending collections.

The links are briefly explained in Section 10 of the Bitcoin White Paper, “Privacy.”

“You must use a new key pair for each transaction to prevent linking to a common owner.”

If the same public key controls multiple coins, these coins are trivial links, as they are only supposed to be entities that should know the private key.

However, reusing addresses is not the only concern. The paper continues:

“In multi-input transactions, some links are still inevitable. This inevitably reveals that their input is owned by the same owner.”

This is often referred to as a “general input ownership heuristic.” callor “multi-input heuristic”. Unlike the meaning of the quote above, it is heuristic because there is a rebuttal. It’s not always true, but often so.

Over the years, more sophisticated methods for clustering have been developed. For example, using a larger structure of change output from payments and transaction graphs than individual transactions. Some of these have been explained in academic research, while others remain unique. An improved method can link to more coins or avoid so-called “cluster collapse.” There, coins belonging to different users are incorrectly connected. Commercial goods often benefit from additional sources such as KYC data. They don’t necessarily rely solely on privacy leaks that occur with the Bitcoin protocol, but clustering remains a central theme.

This motivates the hostile framing of privacy. In privacy, a secondary attack attempts to allocate coins to a cluster. From this perspective, defending privacy means it makes it more difficult for the enemy to succeed in correctly assigning coins to the cluster. The most notable examples are included in building collaborative transactions, whether it is difficult to guess, like Coinjuin, secretly, or perhaps most noticeable, like pay magazines, or perhaps most prominently, in the construction of collaborative transactions. In all cases, simple assumptions of common ownership collapse and require more nuanced analysis.

Hostile framing makes it clear that different enemies have different abilities. It has an appropriate adversity model depending on the user’s threat model. Are you more concerned about oppressive government surveillance and transaction counterparty snooping?

It was originally published on Spiral Sacak.

April 16th Chart Interpretation Series: Simple Moving Average SMA vs Exponential Moving Average EMA – Basics of Trend Trading

Read the Chart Interpretation Series:A guide designed for traders who imagine experts to understand and apply the most important chart indicators.

Understand whether you are a beginner just starting out with technical analysis or an experienced trader who wants to improve your knowledgeMoving AverageEverything can improve your trading decision level.

Let’s start with the basics:SMA vs EMA

What is the moving average?

Information about price lists can be confusing and complicated. Data fluctuations caused by price changes per second can even escape experienced traders.

Average movement helps to remove confusion and discover actual market trends.

Moving averages allow for easier identification of whether market trends are bullish, bearish, or consolidated, by averaging prices over a specific time frame.

The central role of moving averages:

• Check market trends
• Highlights potential entries and exit areas
• Check the signals of other indicators
• Avoid emotional transactions based on short-term volatility

On any trading platform, you will see two main types of moving averages.Simple Moving Average (SMA) andExponential Moving Average (EMA).

Let’s discuss together!

Simple Moving Average (SMA): Provides an observational perspective on long-term trends

On Bitfinex charts, it is a moving average (MA, moving average)

SMA is the closing price for a set period (for example, 10, 50, or 200 days) divided by the number of days in that period. SMA gives each price the same weight. It does not respond to short-term fluctuations in prices, but shows the average trend direction over a period of time.

example:A 50-day SMA adds up the closing prices for the past 50 days and splits them into 50.

Common Usage Scenarios:

• A quick traderEvaluate long-term market trends using 50 and 200-day SMAs frequently
• Trend FollowersObserve prices above or below SMA to predict trend reversal

advantage:

• Smooth
• Filter short-term disruptions in the market
• Strong long-term trend checks

Disadvantages:

• Unable to immediately reflect sudden price changes
• Early signals of rapid market change may be overlooked

Exponential Moving Average (EMA): More sensitive trend tracking indicators

The exponential moving average also calculates the average price.Prices give higher weight in the near futureand will become more sensitive to current price changes.

for example:The 20-day EMA still includes prices for the last 20 days, but today’s data has had a greater impact than it was two weeks ago.

EMA is popular among ultra-short-term traders and buyers because it can quickly reflect price changes.

Common Usage Scenarios:

• Short term tradersFrequently use EMA for 9, 12 or 20 days to grasp market trends quickly
• EMA is commonly usedCross Strategyshort-term EMA crosses long-term EMA, an entry or exit signal will be displayed

advantage:

• It more accurately reflects recent price trends
• Helps to detect early reversals of market trends
• More popular in the rapidly changing market

Disadvantages:

• More error signals may occur when the market fluctuates
• Overreactions can occur in a horizontal integrated market

Which technical analysis should I use for SMA vs. EMA?

It depends on youTrade Mode,Time range and investment goalsThere is no absolute standard answer depending on it.

Most experienced traders doUse at the same timeSMA and EMA. for example:

• Use SMA for 200 daysCheck the trend
• Use EMA for 20 daysFind the entry signal

Apply it to your Bitfinex chart and test it now!

1. Log in to Bitfinex
2. Select a chart (BTC/USD, etc.)
3. Click on the Technical Indicator to add it.

4. Observe the signal displayed by indicators when market trends or moving average crossing occurs

You will notice the following patterns:

• 20-day EMA is less than 50 days: Short-term prices are weaker than long-term trends
• MAs under 50 days: The market is still below the average long-term trend, so caution is needed
• Prices are slightly below the 20th EMA: the market is about to resume that trend, but it has not yet recovered completely

This simple exercise will improve your chart reading comprehension over any theory.

Moving averages and index averages are the basis for countless trading strategies. Whether you are using it as an independent trend filter, or using other technical indicators such as an exponentially smooth similarity moving average MACD or relative strength index RSI, mastering these indicators will help you make your trading decisions in a clearer and more gentle way.Chart Interpretation Series for the next issue:Use an exponential smooth moving average (MACD) to grab the turning points of trends and take the lead in figuring out the market pulse.

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Forex trading, also known as foreign exchange or FX trading, is one of the most popular financial markets in the world. With over $6 trillion traded daily, it’s an incredibly dynamic market that attracts both novice and experienced traders.

Understanding key Forex jargon is essential for effective trading; it allows traders to make informed decisions, communicate clearly, and avoid costly misunderstandings. This guide covers essential Forex trading term and concepts, creating a comprehensive Forex starter guide to help both beginners and seasoned traders.

Key characteristics of the Forex market

Forex, short for “foreign exchange,” involves the buying and selling of international currencies. It’s the largest and most liquid financial market in the world, with a staggering daily turnover of around $5.3 trillion—yes, that’s trillion with a “T.”

The Forex market operates 24 hours a day from Monday morning to Friday evening, meaning you can trade at virtually any hour during the work week. Unlike other financial markets, Forex lets you profit from both rising and falling prices, as you can “buy” if you expect a currency’s value to increase or “sell” if you anticipate a drop. This flexibility opens up unique opportunities for traders to earn regardless of market direction.

A wide range of participants fuels the Forex market: central banks, governments, international corporations, insurance companies, hedge funds, professional traders, and millions of amateur retail traders—including people like you.

Forex trading’s appeal lies in its accessibility—you can start with a relatively small account, and the market’s often high volatility can yield significant profit potential. However, this same volatility also makes it a risky venture, underscoring the importance of skill and strategy.

Essential Forex Terms for Beginners

Here’s a quick list of essential Forex terms that serve as a foundation for anyone entering the world of Forex trading:

• Pip

• Lot

• Leverage

• Margin

• Spread

• Bid Price

• Ask Price

• Currency Pair

• Base Currency

• Quote Currency

• Forex Trading Sessions
• Forex News

These basic Forex terms will help you communicate effectively in the market and understand the movements, calculations, and opportunities involved in trading.

Breaking Down Forex Terminology

Pip and Pipettes

A pip (percentage in point) is a measurement of movement in the Forex market, representing the smallest change in a currency pair’s price. For most currency pairs, a pip is the fourth decimal place (e.g., 0.0001). However, for pairs involving the Japanese yen, it’s the second decimal place (e.g., 0.01).

For example, if the EUR/USD pair moves from 1.1000 to 1.1001, that’s a movement of one pip. Some brokers also measure fractional pips, called pipettes, which are the fifth decimal place (e.g., 0.00001).

Lot

A lot in Forex refers to the standardized trading size. There are three common types of lot sizes:

• Standard Lot: 100,000 units of currency
• Mini Lot: 10,000 units
• Micro Lot: 1,000 units

The lot size directly impacts the volume of a trade and, therefore, the potential profit or loss. A standard lot size magnifies both risk and potential return, while micro or mini lots allow beginners to start with lower risk.

Knowing about lots is important when it comes to position sizing and risk management.

Leverage

Leverage allows traders to control a larger position in the market with a relatively small amount of their capital. For instance, a leverage of 1:100 means that for every $1 of a trader’s capital, they can control $100 in the market.

While leverage can amplify profits, it also increases risk. Effective risk management is crucial when using leverage, as it can lead to substantial losses if the market moves unfavorably.

Margin

Margin is the amount of money required to open and maintain a leveraged position. It acts as a security deposit held by the broker. The margin requirement depends on the chosen leverage. For example, if you want to control a $100,000 position with 1:100 leverage, you’ll need a margin of $1,000.

Understanding margin is essential because if your account balance falls below the required margin level, your broker may close your position to prevent further losses (known as a margin call).

Spread

The spread is the difference between the bid price (price to sell) and the ask price (price to buy) of a currency pair. It’s essentially the cost of trading, as brokers profit from spreads rather than charging a direct commission.

For example, if the EUR/USD bid price is 1.1000 and the ask price is 1.1002, the spread is 2 pips. Tighter spreads are preferable for traders as they reduce the trading cost, particularly for high-frequency or short-term traders.

Bid Price

The bid price is the price at which a trader can sell a currency. It’s the maximum price that a buyer is willing to pay for a currency pair. In Forex, prices are always quoted in pairs, so if you’re selling, the bid price is what you’ll receive for your currency.

The screenshot below shows a regular MetaTrader view. On the left at (1) you see a list of tradable Forex pairs with their bid and ask price. In the middle you see the order-execution window. You can enter a sell trade for the bid price and a buy trade on the ask.

Ask Price

The ask price is the price at which a trader can buy a currency. It’s the minimum price a seller is willing to accept. The difference between the ask price and the bid price is the spread. Understanding the ask price is important because it determines the entry price when you initiate a buy order.

Currency Pair

A currency pair consists of two currencies, where one currency’s value is quoted against another. Forex trading involves buying one currency while simultaneously selling another, creating paired trading. Common currency pairs include EUR/USD (Euro/US Dollar) and GBP/JPY (British Pound/Japanese Yen).

Base Currency

The base currency is the first currency in a currency pair and serves as the reference currency for the trade. For instance, in EUR/USD, the euro is the base currency. If the EUR/USD rate is 1.1000, one euro equals 1.1000 US dollars.

Quote Currency

The quote currency is the second currency in a currency pair and indicates how much of this currency is needed to buy one unit of the base currency. In EUR/USD, the US dollar is the quote currency. If EUR/USD = 1.1000, then each euro costs 1.1000 USD.

Types of Currency Pairs

What is a currency pair?

The fact that currencies are quoted and traded in pairs introduces unique characteristics to Forex trading, which we’ll explore in detail.

Whenever you look at a Forex quote, you’ll notice that each currency is represented by a pair of currency codes—this is known as a currency pair. For example, in the pair EUR/USD, you are trading the euro against the U.S. dollar.

In every currency pair, the first currency (euro, in this case) is called the base currency, and the second currency (the U.S. dollar here) is known as the quote currency. The quote EUR/USD shows how many U.S. dollars are required to purchase one euro. So, if EUR/USD is quoted as 1.1000, it means that 1 euro is equivalent to 1.1000 U.S. dollars.

Major Pairs

Major currency pairs include the US dollar (USD) and are highly liquid with lower spreads. Examples are EUR/USD, GBP/USD, and USD/JPY. Trading major pairs is popular because of their high liquidity and lower transaction costs.

The table below shows the 6 Forex majors ranked by daily activity.

Minor Pairs

Minor currency pairs don’t include the USD but consist of other major global currencies like the euro, British pound, or Japanese yen. Examples include EUR/GBP and AUD/JPY. Minor pairs generally have wider spreads than major pairs, making them slightly more expensive to trade.

Exotic Pairs

Exotic currency pairs involve a major currency paired with an emerging market or smaller currency, such as USD/TRY (US Dollar/Turkish Lira) or EUR/SEK (Euro/Swedish Krona). Exotics have higher spreads and greater volatility, presenting unique opportunities and risks for experienced traders.

Forex Trading Journal

A Forex trading journal is a personal log where traders record each trade they make, including details like entry and exit points, chart patterns, strategy types, trade size, reasons for taking a trade, and emotional state during the trade.

Such a trading journal serves as a powerful tool for analyzing trading performance, identifying patterns, and refining strategies. Keeping a detailed trading journal helps traders learn from both their successful and unsuccessful trades, enhancing discipline and accountability over time.

A good journal enables traders to objectively review and improve their decision-making processes, helping to build a sustainable edge in the market. Among the top solutions for maintaining a Forex trading journal, Edgewonk stands out as one of the best options. It provides an easy-to-use interface with advanced analytical features that allow traders to track performance metrics, identify strengths and weaknesses, and make data-driven adjustments to their trading strategy.

Edgewonk works for all major Forex brokers and platforms, making the process of journaling effortless.

Forex Broker

In order to access the Forex market, you need a broker. A broker provides you with the different prices for your currency pairs and the broker is the one who facilitates your trades.

I also made a video with a few tips and tricks on how to use MetaTrader4, one of the most popular trading platforms out there.

Forex trading sessions

The Forex market does not have the same open and closing times as the stock market or other financial markets. You can trade currencies 5 days a week, 24 hours a day from Monday morning when the Australian financial markets open, until Friday night when the American market closes.

When it comes to Forex trading, there are 4 main sessions throughout the day:

Sidney: Australian trading session (AUD, NZD)

Tokyo: Asian trading session (JPY)

London: European trading session (GBP, EUR, CHF)

New York: American trading session (USD, CAD)

When you select the Forex pairs that you trade, it’s important to understand that the individual currencies move most during their ‘own’ trading time. This means that the USD/JPY usually moves most during the New York (USD) and the Asian (JPY) session. The AUD/USD is most active during the Australian (AUD) and the New York (USD) session. Generally, the overlap between the European and the American session is the most active trading session overall.

News  and Forex trading

News and macroeconomic events are heavily influencing currency and Forex prices. As a Forex trader, it’s essential to keep track of important news events. Even if you are a purely technical trader, knowing when news events are scheduled is important to make the right trading decisions and avoid risk factors.

Before, during and after a news release a trader has a few choices and here are our top tips for dealing with news as a Forex trader:

1) Don’t take new trades ahead of important news events.

2) If price is close to your take profit, close your position ahead of high impact news and don’t gamble with your profits.

3) Tighten your stop loss when you are in a trade. In times of high volatility, stops might not get executed at their actual price level. It might, therefore, be safer to close your existing positions before a news event.

4) Wait 30 – 60 minutes after a news release before entering a new trade. Post-news price volatility can be very erratic and unpredictable. Let the dust settle before you make a decision.

The next question is which news events you should follow. ForexFactory has a great news calendar that always gives you the most important news for the day. They also mark the news item based on impact-level and show which currency is most impacted. Here is a list of the biggest market movers for Forex traders:

• GDP (Gross Domestic Product)
• Unemployment data and especially the US NFP
• CPI (Consumer Price Index) which is a proxy for inflation
• Interest rate decisions – interest rates are the main long-term drivers of currencies
• Central Bank meetings (FED, ECB, BOE, SNB, BOJ, RBA)