Investors invested in great companies are losing money not because of business fundamentals, but because of the lack of regulation in the financial system.
Crypto developers say crypto crash was coordinated
LUNA and UST developers said this week’s crash was caused by a coordinated attack from hedge funds and big banks.
It comes as no surprise since hedge funds and big banks have been colluding to short specific stocks in the market.
The fed has opened investigations looking into these serious issues.
Word is spreading on Twitter and Reddit and BlackRock and Citadel are responsible for the massive selloffs in the crypto market too.
Deeper due diligence is being done on this matter.
Citadel or not, coordinated attacks on securities is something the government should be taking seriously.
Will stocks and crypto bounce back?
It’s difficult to look ahead when the markets are bleeding, after all you are seeing your net worth drop quicker than it took for it to reach new heights.
If you’re worried about today’s markets, you might have been introduced to a short-term way of investing.
While certain plays could be short-term trades, majority of the market tends to be a long-term speculative game.
We bet that the companies we’re investing in will do great over the span of 10 years or so and let the markets go through the ups and downs, at least in the case of the stock market.
Crypto has and will always have greater potential than it has previously seen.
And crypto heads know this.
Is this the end of the stock and crypto markets?
Absolutely not.
What we’re seeing today has happened several times over the course of both markets.
After a climb, there’s always some setback that scares investors momentarily.
But if there’s something we can always learn from historic patterns, it’s that stocks and crypto have always gone right back up and set even bigger all-time highs.
Is now the perfect time to buy?
Is now the perfect time to buy stocks and crypto?
It seems both stocks and crypto are having a difficult time finding a bottom.
And trying to time it has always proven that no one can time the markets perfectly.
Searching for a good entry point could just as likely end up hurting you if the markets were to suddenly go through a reversal.
Skilled long-term investors know that when the markets are red, you buy and hold.
Because the price of securities always goes up after a dreadful period of nonstop downtrend.
The upcoming reversal will have you wishing you’d have stocked up on stocks and crypto today.
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The SPY continues to pull the market down
The SPY (S&P 500), which tracks the top 500 companies in the United States continues to pull the market.
Today the SPY is down more than 16% (year-to-date).
On average, the S&P 500 is up 8%-10%.
This is an incredible time to also take advantage of the S&P 500 as it has always set higher levels in the long-term.
However, the SPY is a great indicator of where the markets are going, and we can see AMC is no exception to this market downtrend.
And as the markets tumble, it’s important to concentrate on the opportunities in these conditions.
If you’re part of my private community on the Patreon you’ve seen I’ve been earning 10%-20% gains trading options every week.
This is one way investors may hedge against these market conditions.
The market doesn’t go down forever, eventually it has to come back up so taking advantage of lower stock prices today could bear profits as soon as the market goes into a reversal.
Some of the largest CEOs in the U.S don’t believe this bear market will linger which means at some point short sellers will begin to either take profits, cut losses, or close their positions breaking even.
This is when the markets could see a big reversal.
Analysts are crediting AMC for being able to massively improve their fundamentals BUT, there is always a but.
AMC’s current share price is still believed to be ‘irrational’ by these ‘experts’.
What’s irrational is lowering prices when the demand for something skyrockets.
You do not lower the price of lemonade on a hot summer day when there’s a huge line wanting to buy it.
But these ‘experts’ say that’s how it works.
AMC’s massive demand for the stock has not reflected in the share price for months now.
And even when the high volume began to show, regulators halted it back in March.
The people running the markets don’t like how the game is playing out and they’re essentially cheating.
So, although they might be orchestrating a ‘correction’, is it possible this ends out playing in retail’s favor?
Shills give AMC a $5.76 price target
Wall Street analysts are giving AMC a price target of $5.76.
But why does their ‘expertise’ even matter?
What makes their price target significant or valuable?
They acknowledge AMC is innovating like no other company with the use of NFTs and cryptocurrency, so why go backwards instead of forward?
Like Adam Aron said, these analysts only look through the rear-view mirror oppose to the front windshield – ahead.
And it makes absolutely no sense.
These old ways of thinking are what’s keeping the economy from striving.
Are institutions preparing to close massive short positions?
Are market conditions about to trigger AMC to squeeze?
Given the current market circumstances, we can see the market is struggling to find a bottom, or at least trying to get comfortable in one.
This could give way for short sellers to plan an exit strategy at low share prices to profit from.
The current market conditions provide short sellers who have been holding long short positions on AMC an opportunity to close before the markets begin to move up again.
AMC currently has a high short interest of 19.77%.
This short interest shows there are many short positions still open today that have yet to be closed.
The market meltdown we are seeing at the moment is setting up the perfect conditions for short sellers to close their positions, initiating a short squeeze in heavily shorted stock such as AMC.
Now, is this guaranteed?
Very few things in the market are guaranteed.
When stocks go up, they must come down too – and when stocks go down, they’re bound to go up.
At some point, short sellers will want to cash in their profits before they’re erased by an inevitable market reversal.
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Feds crack down on Goldman Sachs dark pools
The fed is looking into various matters relating to Goldman Sachs’ businesses and operations.
One of which stands out to retail investors as being its dark pools.
The fed is investigating the supervision and controls relating to Goldman’s high frequency trading (HFTs) and its alternative trading systems (ATSs), also known as dark pools.
Dark Pools (also benignly called Alternative Trading Systems or ATS) are effectively unregulated stock exchanges being run by the same megabanks on Wall Street that blew up the U.S. financial system in 2008 and received the largest taxpayer bailout in U.S. history. – Wall Street On Parade.
The name of Goldman Sachs’ Dark Pool that trades in the U.S. is called Sigma X2.
It used to be called simply Sigma X.
According to a publicly-available document, Sigma X is now used by Goldman Sachs to designate the Dark Pools it operates in foreign jurisdictions, which include Europe, Japan, Hong Kong and Australia.
Dark pools are the gateway that allow financial institutions to manipulate the stock market without any regulation.
Now the fed is cracking down on Goldman Sachs and it comes as no surprise since the bank has been criminally charged on many occasions before.
In October of 2020, Goldman Sachs admitted to the charges of a bribery scandal where they were fined $2.9 billion.
Other operations being looked into
The fed is looking into the institution’s advisory services and conflicts of interest.
They are also tackling the following:
Research practices, including research independence and interactions between research analysts and other firm personnel, including investment banking personnel, as well as third parties.
Transactions involving government-related financings and other matters.
The offering, auction, sales, trading and clearance of corporate and government securities, currencies, commodities and other financial products and related sales and other communications and activities.
As well as the firm’s supervision and controls relating to such activities, including compliance with applicable short sale rules, algorithmic, high-frequency and quantitative trading, the firm’s U.S. alternative trading system (dark pool), futures trading, options trading.
And finally, insider trading.
The SEC said in past years they were tackling dark pools but failed to competently execute the plan.
The issue was brought to the light by the ‘meme stock’ crowd who also exposed naked short selling and received attention by mainstream media.
Dark pools have been able to suppress stock prices across the market from reaching full demand potential.
Gary Gensler said 90%-95% of retails orders do not get processed through the lit exchange (NYSE) but rather through these dark pools.
Goldman Sachs and others have essentially stolen from retail investors as only 5%-10% of retails money actually creates demand for a stock.
For every dollar retail puts in the market, only this small percentage is reflected on a security.
That’s what happens when financial institutions like Goldman Sachs redirects orders through its dark pools.
This is a developing story.
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Corruption: Hedge fund avoids jail time – pleads guilty of fraud
(Bloomberg) The co-founder of Premium Point Investments and a former trader pleaded guilty to charges they overstated asset values at the now-defunct hedge fund, but they won’t serve any time behind bars.
Anilesh Ahuja, the fund’s co-founder, and trader Jeremy Shor were found guilty of conspiring to overvalue the hedge fund’s assets by more than $100 million and sentenced to prison in 2019.
However, U.S. District Judge Katherine Polk Failla in Manhattan overturned their convictions in December due to errors and misleading statements by prosecutors.
The pair had faced a new trial but reached a deal with the government allowing them to plead guilty to a single securities fraud count.
Under the deal, which was approved by Failla in a hearing on Friday, the two men won’t serve any prison time, pay a fine or serve probation.
Let’s talk about it.
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Hedge Fund gets away with prison time and fees
hedge fund pledges guilty and gets away with prison time
Before their convictions were overturned, Ahuja was sentenced to more than four years in prison and Shor, almost 3.5.
But their surrender dates were delayed, initially due to the Covid pandemic and later because the judge was considering throwing out the verdict.
As a result, neither man served any part of his sentence.
“We are pleased that Mr. Ahuja can finally put this ordeal behind him without having to spend a day in jail,” his lawyers, Richard Tarlowe and Roberto Finzi, said in a statement.
“After years of litigation, we are pleased to put this matter behind us with no additional punishment beyond the punishment already inflicted by the process,” Shor’s lawyer, Justin Weddle, said in an email.
Federal prosecutor Daniel Gitner defended the deal before the judge on Friday, saying Ahuja and Shor had already made “substantial restitution” to investors.
“Today’s guilty pleas to securities fraud bring to a close the defendants’ scheme to mismark their funds’ books,” U.S. Attorney Damian Williams said in a statement.
“This office stands by this prosecution, and is pleased that this matter has resolved with the defendants’ acceptance of responsibility.”
“Unacceptable errors”
Hedge fund avoids jail time after being sentences to prison – hedge fund pledges guilty
“I tried my hardest to conduct a fair trial,” Failla said in overturning the verdict.
“I no longer have confidence in the fairness of the trial.”
She declined to dismiss the charges against Ahuja and Shor though, saying that the errors made by the government — while “unacceptable” — were not severe enough to warrant throwing out the case.
Ahuja was a senior mortgage bond trader at Lehman Brothers, RBS Greenwich Capital and Deutsche Bank AG for four years before co-founding Premium Point in 2008.
The firm initially focused on the U.S. residential loan market and began amassing bonds backed by distressed assets in the wake of the global financial crisis.
It later expanded into the jumbo loan and home rental businesses and managed about $2 billion of assets at its peak.
Premium Point began winding down in late 2016 after posting large losses.
The fund revealed the following year that federal securities regulators were examining the way it valued its assets.
Its mortgage credit funds filed for bankruptcy protection in March 2018, and Ahuja, Majidi and Shor were charged two months later.
Former Chief Risk Officer Ashish Dole also pleaded guilty and testified for the prosecution at the trial.
The case is U.S. v. Ahuja, 18-cr-00328, U.S. District Court, Southern District of New York (Manhattan), via Bloomberg.
Should hedge funds be allowed to get away with fraud?
It’s curious how these hedge fund co-founders were sentenced to prison but managed to get away with jail time.
What does this tell us about our system?
Why do you think this happened?
Was the government paid out?
I’m interested to know what you think; leave a comment below.
Dark pools are somewhat of a mystery to new retail investors. We hear about them a lot within the AMC community, especially through Trey’s Trades. We know that they allow hedge funds to make undocumented trades behind doors.
So what exactly are dark pools? And, is something being done about them? I want to expose this subject today.
Welcome to Franknez.com – the blog that protects retail investors from FUD media. Today we’re discussing dark pools.
Lets get started!
What is a dark pool?
A dark pool is basically a financial forum or platform for trading stocks or other securities. Dark pools are privately organized and are known to be an alternative trading system.
These ATS’s are seldomly regulated.
The concerns regarding dark pools and AMC Entertainment has been that we simply don’t know what these communities are hiding from the SEC. This slimy strategy is what’s known as backdoor buying and selling.
Why are dark pools used?
Dark pools give hedge funds an advantage in the sense that they are able to conceal their moves. We can only speculate what type of information is being hid from the public here. Details within these dark pools are not accessible by the trading public.
This lack of transparency may allow dark pools to conceal information such as:
Any discussion regarding malpractice in the market
Inaccurate filings and reports
Dark pools can very well be the place where short sellers get together to discuss strategies and the ruining of companies.
It could be the reason why we don’t know how many short sellers are shorting ‘meme stocks’ and other information that would otherwise prove a fair market for both institutions and retail investors.
Is the SEC looking into dark pools?
In a recent article regarding the high possibilities of automated margin calls, I point out some research I found on Gary Gensler, Chairman of the SEC.
He publicly announces that the SEC has been observing hedge fund activities since January and are taking action to regulate these entities shorting AMC and other ‘meme stocks’.
One of Gary’s proposals states that hedge funds could face 13-F filings. These filings would provide the SEC with insight on equity as well as dark pool disclosure.
I trust we will begin to see this new chairman make the right calls. It’s time for change and our generation will be the ones to make it happen.
Dark pools could explain the low short borrow fee
Could dark pools be the explanation as to why the short borrow fee is so low for hedge funds shorting AMC and GameStop? Now, because so much information is in the shadows, this of course is only speculation.
According to Investopedia, dark pools can charge lower fees than exchanges because they are often housed within a large firm and not necessarily a bank.
via. Investopedia
Why do these large firms (hedge funds) have this much power in the first place? This advantage is completely deceitful and unruly. It really does make you look at the SEC and think why in the world has no one taken action sooner.
Are dark pools illegal?
Dark pools are not illegal but they are certainly unethical. Per the SEC, we can expect real regulation to surround these exchanges relatively soon.
Bloomberg Tradebook
The Bloomberg Tradebook is a dark pool that is owned by Bloomberg LP. Bloomberg is a financial media company that has been trashing AMC Entertainment for quite some time now.
Bloomberg has published FUD (fear, uncertainty, and doubt) articles in efforts to scare people out of their money. This raises questions regarding the ethics of these manipulators who gather behind close doors in order to stray the public from squeezing shorts out of their positions.
Other dark pool exchanges
Institutions such as Morgan Stanley and Goldman Sachs also offer private trading to their clients through the use of dark pools.
The main concern here is that the information that is made public to the SEC can easily be manipulated. Mainly to conceal foul play and inaccurate information.
The information that is available on Stonk-O-Tracker regarding AMC and dark pools is the percentage of trading within these forums/exchanges; which is usually relatively high.
How does this affect AMC stock?
These private exchanges may be illegally trading naked shares behind close doors refraining AMC’s stock price from further climbing. Although AMC is up nearly 3000% year-to-date, hedge funds continue to attack it through sell walls and short ladder attacks.
And since these private forums could potentially have been getting away with inaccurate reports, the possibility of foul play in the market is certainly there.
AMC Dark Pool Trading
Andrew Hiesinger, CEO of Quant Data took to Twitter to expose AMC’s current dark pool trading volume.
Quant Data provides retail investors with real-time options order flow, alerts, dark pool prints & levels, and news. There has been approximately 34 million shares exchanged in dark pools just in today’s trading day (8/18).
This equates to $1,268,475,800.46 in notional value, says Andrew.
64.21% of trading in dark pools won’t allow AMC’s stock price to reflect the actual price action. This primarily because this amount of trading is done behind closed doors where buy orders aren’t being reported.
This form of manipulation is clouding AMC’s real share price. #DarkPoolAbuse has been trending on Twitter.
Bookmark this article for updated news on dark pool abuse in AMC.
How can retail investors fight these predatory trading practices?
Retail investors have several advantages over hedge funds shorting AMC and other ‘meme stocks’. The community must stay the course if they are to squeeze these short sellers out of their positions.
Not only are hedge funds losing billions, but the SEC has finally begun to implement new regulations that could automate margin calls in overleveraged accounts. I’m personally not worried. These house of cards are falling at the times they should.
Retail investors are beginning to question whether the SEC is complicit to market injustices.
An out of touch Gary Gensler has made it rather clear that keeping his job is more important than actually enforcing the law.
In an alarming interview with Jon Stewart, the SEC Chairman merely smiles with no response when confronted about why he’s not doing anything about hedge funds abusing the market.
Many retail investors gave Gary Gensler the benefit of the doubt but after the Jon Stewart interview and cancellation of NSCC-2021-010, it’s hard to believe the SEC is on retail’s side.
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The SEC is very well aware of the issues at hand
Retail investors were told naked shares didn’t exist, and that dark pool trading was a myth.
That is until sophisticated tools have allowed retail investors to see a hint of what’s happening behind the scenes.
The use of naked shorting has been publicized on national television and dark pool trading has also publicly discussed about.
In a Bloomberg exclusive, Gary Gensler said 90%-95% of retail orders are not processed through the lit exchange but rather traded in dark exchanges.
So, while corporate media tried to gaslight investors, the cat has been out of the bag and the SEC knew this all along.
Retail investors have stressed their concerns to regulators on Twitter such as the @SECGov, @GaryGensler, @DOJCrimDiv, and even the @FBI.
The community needs more leverage.
Personalities unite
While personalities such as Jon Stewart and Charles Payne have spoken out against the injustices in the market, the community needs more influencers to speak out against these issues.
Elon Musk has in the past spoken out against the incompetence of the SEC.
Rule 304a4 suspends a NYSE stock from trading in ATS’s, or alternative trading systems such as foreign exchanges and dark pools.
304a4 would allow AMC and GME to trade in the lit exchange for 12 months as long as the commission deems that such action is necessary in the public interest and is consistent with investor protection, per the reform founded here.
I’m pro voting if it means taking a chance on change.
While tweeting to raise awareness on social media is effective in many ways, it’s simply not enough.
Retail investors must organize petitions to amplify the message.
The important thing here is to refrain from protesting, at least at this stage of negligence.
What’s at risk?
While there are risks in the market, there is also preventable damage in the market that the SEC is neglecting.
This preventable damage is caused by market manipulation in a pay-to-play system where financial institutions lobby congress to bend rules and policies in their favor.
Businesses, shareholders, and the economy take a toll as a consequence.
This is something Jon Stewart brought up to Gary Gensler to which he had no real honest regard to it.
The risks are felt by shareholders worldwide.
Is the SEC complicit to market injustices?
Or has a system been created solely as a facade where even their own employees don’t realize it?
Retail investors are facing a real issue and they must prevent it from being swept underneath the rug.
I’d love to hear your thoughts on the matter.
Leave a comment below.
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CEO of Citadel Securities, Ken Griffin owns News Corp, the company that has ownership over Wall Street Journal, Barrons, MarketWatch, DOW Jones, and other media outlets spewing ill words of AMC Entertainment and its community.
There’s a major conflict of interest when the owner of all these companies is using them to pump propaganda to fit a nefarious agenda.
Citadel Securities attempted to bankrupt AMC Entertainment earlier this year but failed after retail investors saved the company.
Because AMC stock has a short squeeze set up, retail investors are not leaving until overleveraged hedge funds have closed their short positions in AMC.
Though the multi-billionaire has the power to influence these companies, the community has the power to expose these untrustworthy media platforms.
And that’s enough to raise awareness.
The Fall of Hedge Funds and FUD Media
Both hedge funds and FUD media platforms face intense scrutiny from investors.
Robinhood is an online investing platform that offers commission-free stocks with high-yield cash management offerings.
This popular stock market trading app does not charge commission for stocks and cryptocurrency trading.
Robinhood, the financial technology company offers trading in stocks, ETFs, other options, and cryptocurrency.
Moreover, this online brokerage provides web and mobile-based services which will allow you to invest and trade easily.
Additionally, the mobile-based services of this platform have made it stand out from its other competitors.
You may be wondering about many questions arising in your head about Robinhood & Robinhood stock.
No worries!
Here in this article, you’ll find the answers to your queries and get to know all the details about this popular online brokerage like- How does it make money, the pros & cons of Robinhood, Robinhood stock price, the behavior of Robinhood in cryptocurrency & its future, and benefits of long-term investing in stocks & cryptos.
Keep scrolling to read more.
Let’s begin!
Overall Rating: 3 / 5 OPEN AN ACCOUNTAccount Minimum: $0 Fees: $0
Robinhood Review – Robinhood Trading app
Understanding Robinhood
With more than 13 million users, Robinhood is the best platform for active investors or younger investors who want commission-free trading and investing on mobile.
If you want to invest in cryptocurrencies like Bitcoin, Ethereum, Dogecoin, you can use this mobile and web trading platform to invest long term.
Apart from it, Robinhood (a popular stock trading app) went public in July 2021 and its share price was set at $38 for IPO (Initial Public Offering).
Also, Robinhood was listed on the Nasdaq stock exchange under the symbol “HOOD.”
Recently, Robinhood’s CEO Vlad Tenev said that the company is planning to release the feature that allows customers to trade stocks outside of market hours.
The company named this feature, “Hyper-extended hours.”
According to Bloomberg, Robinhood stock is the favorite stock of Cathie Wood’s ARK funds and they’re purchasing the stocks every week since October 2021.
Last week, ARK Funds have bought about 2.45 million shares of Robinhood markets.
Robinhood Business Model- How the company generates income
With no minimum and no fees for trading in stocks, cryptos, and ETFs, the company has to generate income as a business to be sustainable.
This online brokerage makes money from market makers and some other ways.
Here are the ways through which the company generates revenue.
Payment for Order Flow
In 2021, the company generated 75% revenue through the process payment for order flow (PFOF), in which the company directs their customer’s orders equity and options to a particular market maker and the company receives payment for this compensation.
Hence, PFOF is the major income stream for the company.
Payment for order flow unfortunately plays against retail investors.
The SEC has talked about banning the practice since it allows market makers to manipulate the stock prices.
Stock Loan Income
Robinhood generates revenue by lending margin securities to counterparties.
Furthermore, the company keeps all money it generates from lending your stock and does not share it with you.
This is a big problem because large financial institutions make more money from the user while orders are processed through dark pools.
Borrowing Uninvested Cash
Robinhood generates income by borrowing uninvested cash and depositing this cash in interest-bearing accounts.
Membership Fees for Robinhood Gold
Robinhood Gold program is a paid subscription service that allows users to benefit from premium features like margin trading, Level II Market Data, professional research, and enhanced quick access to deposits.
It is also one of the income sources of the company.
Robinhood Gold costs $5 per month.
Also, it gives a free trial of 30 days.
What can you invest in on Robinhood?
Robinhood Review 2022 – Robinhood trading app
Robinhood is a popular trading platform that allows the user to invest in stocks, cryptocurrencies, Exchange Traded Funds (ETFs), and options.
If you want to do commission-free trading in stocks, ETFs, and cryptocurrencies, then Robinhood is great for you.
Moreover, the company allows the investors to buy portions of stocks without paying the full share price.
It gives a free stock upon making referrals and opening the account.
When it comes to investing in cryptocurrencies, Robinhood allows to trade in several digital currencies including Bitcoin, BitcoinCash, Ethereum, Ethereum Classic, Litecoin, Bitcoin SV, and Dogecoin.
Most importantly, Robinhood has introduced IPO access for traders.
Besides, Robinhood does not offer the ability to invest in mutual funds, forex, bonds, and futures options.
The pros and cons
Pros
Simple, Easy to Use, and Easy to navigate
Free stock, ETFs, Cryptocurrency Trading
No account minimum
IPO access
Cash management accounts
Margin investing and Fractional shares
Cons
Limited customer support
No mutual funds and retirement accounts
Limited investment offerings
Limited investing research and trading tools
The Pros explained
Robinhood, the popular brokerage in the US, is extremely easy to use and accessible for people of any age and any income.
Robinhood is a mobile-first company that differentiates it from other companies.
Its trading app and web-based platform are well-designed and more than enough to trade.
The new investors or inexperienced users can easily trade on it due to its simple and user-friendly features.
When it comes to costs, Robinhood provides commission-less trading with no minimum fees.
You can invest in stocks, cryptos, options, and ETFs for free.
Furthermore, the company offers fractional share trading, and you can invest in expensive stocks without much capital.
Additionally, it gives quick access to deposited cash.
The account opening process in Robinhood is fully digital and free.
Rather you get free stock upon opening the account and by referring the new members.
Last but not least, the company offered IPO access in July 2021 to benefit its users.
If you trade often, the savings can be huge on this platform due to the lower cost.
The Cons explained
Along with plenty of advantages, there are a few cons of it.
Robinhood does not offer to trade in mutual funds, bonds, and futures trading.
The research, educational resources of this financial company is limited.
It provides basic tools for the services and users can access professional research by purchasing paid membership of Robinhood Gold.
The customer support available in this stock trading app is limited.
Although, the company had made necessary improvements to its customer service in the last year.
The Robinhood scandal has blown up after the freezing of buying ‘meme stocks’ in 2021.
The company lacks full trust from retail investors after restricting the rights to buy specific stocks from its users.
Robinhood, one of the best online stockbrokers generated huge transaction-based revenue within cryptocurrencies in Q4 2021.
It has a fast-growing cryptocurrency business as the company launched crypto gifts.
Most importantly, the company has introduced cryptocurrency wallets to 1,000 users as a part of the beta test.
Crypto wallets will help the users to transfer digital currencies in and out of the Robinhood app.
The rollout of crypto wallets may be expanded to 10,000 users in March.
Adding a wallet will help the traders to transfer their digital assets out of the online platform to invest.
Moreover, the company is planning to test new crypto-related functionality on its stock trading app which will allow the user to get statistics, transactions on blockchain at a glance.
The introduction of crypto wallets closed the gap among Robinhood app and cryptocurrency exchanges which will increase the trading in crypto markets.
Most of the US brokers don’t offer crypto wallets, therefore the rollout of crypto wallets on Robinhood will have positive impacts on Robinhood accounts opening in the future.
When it comes to Coinbase vs Robinhood, our personal choice when it comes to investing in cryptocurrency is Coinbase.
Investing in stocks and cryptos is great in so many ways.
If you’re thinking, why should you invest in stocks and cryptos?
Here we’ve discussed the importance and benefits of long-term investing.
Read on to find ways to become financially independent.
Importance of Long-term Investing in Stocks & Cryptos
A long-term investment strategy is like holding assets such as stocks and cryptos for more than a full year.
Anything under a year is a short-term investment.
Long-term investment requires patience and discipline, but it gives incredible outcomes.
Market volatility is a prime matter in investment as the prices fluctuate regularly.
The higher the volatility, the higher the investment’s price fluctuation and the higher the risk.
Here is why you should go for long-term investment.
Long-term holdings in stocks and cryptos exhibit lower volatility, greater profits as compared to short-term.
Assets such as stocks & crypto give higher returns over a long time. It maximizes the growth potential of your savings.
Now, investment in US stocks and digital currencies is far better than bonds and gold investment.
When you watch your investment portfolio grow, your satisfaction increases more.
Stocks are long-term investments and generate better long-term returns.
The longer you invest in stocks, the longer your money will grow.
Among asset classes, the stocks have surpassed all other asset classes.
If you want to keep your money multiplying and become a better investor, it’s wise to go for long-term investment so that the market bump can’t knock you.
Because, when the prices go up and down, you can handle it by remaining patient.
Apart from making you financially strong, the investment makes you disciplined with your money.
It’s a necessary rule to succeed in your life financially.
Long-term holding means fewer trading fees because you will need to pay the fees every time you trade.
Also, it’s easy to do, you can start trading in Robinhood stock-trading app, just by implementing the strategy and patience to make the most of your returns.
Or through a more traditional broker like Vanguard.
Through investment in the stock market, you can benefit from various trading strategies.
Apart from stocks, cryptocurrency is an attractive investment and future of technology that gives high returns.
Long-term investment in cryptocurrency is good for investors to recover and get profits.
You can invest in crypto on Robinhood or cryptocurrency exchanges.
Long-term holding in popular cryptocurrencies such as Bitcoin, Ethereum can harvest good returns in 2022.
If you’re a new investor and can’t tolerate big risks, short-term investment cannot work for you, rather you must go with long-term holding.
Digital currencies are rising globally, and the number of investors is investing in them.
They provide a safe and long-term store of value.
Like other assets, cryptocurrency also exhibits volatility.
If you’ll invest in stocks & cryptos for the long term, there would be less fear, less risk, less trading cost, lower tax rates, and more returns.
Also, you’ll be able to buy the future house, vacation, and can save your education or retirement.
Along with your regular income, trading is the way by which your money keeps multiplying, and you can earn more and do more.
The Bottom Line
Robinhood Review – Robinhood trading app review
Robinhood, the US-regulated broker is best for active traders who want to invest in assets with no commission.
Whether you’re looking to invest in cryptocurrencies or stocks, Robinhood could be an option for you due to its minimalistic trading platform that has made it easy to buy and sell assets.
The biggest perk of trading on Robinhood is a lack of fees with no costs.
However, payment for order flow is affecting the entire stock market as a whole.
Retail investors are ditching the trading app.
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Who is the “King of Block Trades”?
The King of Block Trades is the name dubbed to the hedge fund CaaS by Bloomberg.
So, then who is CaaS?
CaaS (Capital as a Service) is a New York-based hedge fund with over $650 million in assets under management.
Block trading is when financial institutions sell one another a ton of stock through negotiations rather than through an electronic venue.
While block trading is not illegal, market activity proves the misuse of this strategy could be at large.
Morgan Stanley and Goldman Sachs are two of the biggest banks currently being investigated for connections to block trading and colluding with hedge funds.
CaaS managed to establish close ties with Morgan Stanley only two years of opening.
Prospective investors say CaaS has boasted to them of quickly becoming one of the biggest U.S. funds dedicated to block trading, getting a first look at deals and gaining entry to virtually every IPO in the country, Bloomberg.
The firm saw a 76% return its first year in business.
Now the hedge fund is one of many being scrutinized in a sweeping U.S. probe into how Wall Street firms handle large orders.
Banks make extra fees from block trading
Morgan Stanley can earn extra fees helping hedge funds cash out, offering shares to investment firms with desks handling blocks, as well as specialized shops such as CaaS, deemed the King of Block Trade.
Market participants say that some traders have been known to bet against shares after getting calls from these bankers.
This prompts the question of whether the trade acted on non-public information, also known as insider trading.
The financial system has a variety of rings where everyone involved has to benefit, even if it causes system risk to the market.
This is what regulators are looking into.
A little more background on CaaS
CaaS was founded in May of 2019 by Frank Fu.
Born in Shanghai, he came to the U.S. where he earned a bachelor’s degree in research and engineering, and a master’s in financial engineering.
He later landed at Susquehanna International Group, where he spent two years trading options.
Looking for additional ways to make money, he started wading into block trades around 2012.
Within a few years, he established himself as one of the top rainmakers at the firm and a key player in providing liquidity to banks.
The King of Block Trades has told prospective investors they had ties to about 30 banks.
When Goldman Sachs, Morgan Stanley, and Credit Suisse were forced to sell billions of dollars of shares from the Archegos incident, Fu was there to buy.
A regulatory filing showed CaaS scooped up more than $440 million of the stocks that Archegos had been betting on.
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