Category: Young Platform

Smart Trades, the automatic trading strategies, are coming to Young Platform! They are available as a preview for Club members only. 

We are happy to announce the launch of a new feature: Smart Trades. This feature was created through a partnership with Aelium, a company specialising in developing cryptocurrency trading strategies. Smart Trades can only be activated in advance by Young Platform Club members. In this article, we will learn what they are, how they work, and what advantages they offer for your cryptocurrencies.

Managing money: a question of time 

Many of us feel we have no time. We would like to devote attention to many essential or enjoyable things, but time always seems in short supply. Managing money is one of them.

Understanding financial concepts helps to set and achieve concrete goals, contributing to present and future financial security. It gives peace of mind, opens new opportunities and avoids uncontrolled debt. Developing one’s savings and investment skills increases independence and quality of life. 

We firmly believe that the crypto market represents a new opportunity, and our job is to make it available to as many people as possible. 

We have always tried to develop tools that are simple and as automated as possible, capable of working even with minimal amounts of money and little time. This way, anyone can try, experiment, and adapt the tools to their situation. Flexibility is our prerogative. We break down any barriers and encourage individual autonomy, starting from the heart of the problem: time. 

Buy-and-Hold and Smart Trades compared

Today, we want to introduce you to a new tool that complements the Moneyboxes. These were created to automate the buy-and-hold approach over the long term. Buy and Hold is an approach that does not consider price fluctuations and volatility and tries to put cryptocurrencies aside over the years on an ongoing basis. The recurrence of purchases over the long term limits risk and the average purchase price.

The completed approach to Moneyboxes, which we want to tell you about today, is the one introduced by Smart Trades. If Moneyboxes are for ‘buying and saving,’ Smart Trades are for trading. They are, therefore, short-term indicators that execute buy-and-sell trades automatically. Smart Trades seek to exploit volatility, price trends, and breaks in support and resistance to their advantage to achieve results over weeks or months, even if they entail higher risk. 

But now, let’s get into the nitty-gritty of Smart Trades to learn what they are, how they work, and what benefits and risks they entail. Above all, we must know how to harness them to achieve our goals.

Remember, the definitions provided here are greatly simplified for a non-expert audience. If you wish to delve deeper into the indicators, we recommend reading the in-depth articles on Academy. It’s crucial to understand that financial markets are intricate and unpredictable, and an indicator’s performance can fluctuate based on numerous factors. Before you proceed, consider your risk profile, investment goals, and time horizon. Also, avoid basing your decisions on a single source of information and always seek advice from a professional who can guide your choices. This table provides some information that may aid your research. But always keep in mind: the final decision is always yours!

What are Smart Trades 

Smart Trades are automatic trading indicators that operate without human intervention thanks to an algorithm. 

This algorithmic trading type uses mathematical models to execute buy and sell orders based on market signals and predefined parameters. With Smart Trades, even beginners can approach trading.

Algorithmic trading: how it works

Algorithmic trading can execute various trading orders at a higher speed than manually. These systems are programmed to recognise trends, patterns and price discrepancies. Based on this data or signals, they execute fast trades to maximise returns. 

An algorithm in trading is a detailed recipe that tells the computer exactly what to do and when. For example, ‘Buy 100 shares of XYZ Corporation when their price falls below 50€ and sell them when their price rises above 60€’. The computer monitors the market 24 hours a day, 7 days a week, and automatically executes these orders when the specified conditions occur, without you constantly tracking the market.

Why activate a Smart Trade?

Activating a Smart Trade offers numerous advantages, especially for beginners. It is a gateway to the trading world that does not require years of experience or constant market monitoring. Smart Trades reduce the emotional factor, one of the biggest obstacles for traders, and allow a more disciplined, data-driven approach. In addition, they will enable you to take advantage of market opportunities 24 hours a day, 7 days a week.

How to Choose a Smart Trade 

Before activating a Smart Trade, it is important to carefully evaluate each strategy, understand the associated risks, and determine which best aligns with your objectives. The app describes each strategy’s characteristics, and you can read the complete guide to help you interpret and use them in your choice. 

How Smart Trades are activated

Activating a Smart Trade on the Young Platform is simple and intuitive. They are currently only available on the Young Platform app, not the web version. After selecting the strategy that best suits your needs, follow this step-by-step tutorial. Simply enter the amount to be allocated and check the summary data before confirming. Once configured, the Smart Trade will start trading automatically, allowing you to monitor progress and make necessary changes. For more details on the functionality, please read our Terms and Conditions and Aelium’s Terms and Conditions.

Smart Trades available on Young Platform

Each of the four proposed strategies works on different parameters. You can read the Academy’s in-depth article on a strategy by clicking on it in the following list: 

• Keltner Channels
• Supertrend 
• Momentum 
• Bollinger Bands

Cryptocurrencies available for Smart Trades

The cryptocurrencies available for use with Smart Trades include some of the most popular and liquid ones on the market:

• Bitcoin (BTC)
• Ethereum (ETH)
• Solana (SOL)
• Arbitrum (ARB)
• Chainlink (LINK)
• Avalanche (AVAX)
• Optimism (OP)
• Dogecoin (DOGE)
• Polkadot (DOT)
• Polygon (MATIC)

This selection of cryptocurrencies allows diversifying one’s strategies across different assets, taking advantage of each coin’s unique characteristics. 

Smart Trade Monitoring  

To monitor the gains and losses of your Smart Trades, access the ‘Smart Trades’ section of the app. In the ‘Active’ tab, find and select the strategy of interest to view the details. Here, in the Profit&Loss (P&L) section, you can analyse the performance of your plan, checking the percentage increase or decrease and the amounts gained or lost. If you wish to increase your budget, you can easily do so by using the ‘Add Funds’ button on the same detail screen. By following these simple steps, you can actively manage and monitor the effectiveness of your automatic trading strategies on the platform.

Smart Trades that can be activated

Smart Trades can only be activated in advance for Clubs. If you do not belong to a Club, you can only activate one Smart Trade at a time, but by joining a Club, you can unlock many more. 

The availability of these strategies varies according to Club membership.

What fees are applied to Smart Trades?

During the preview period for Club members, a fixed commission of 0.2% will be charged on the transaction amount. Please note that fees may change once the feature becomes available to the public. It’s important to mention that no commission discounts will be applied to Smart Trades, including those offered by the Club subscription or acquired bonuses.

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Young Platform does not provide tax, investment, or financial services and advice. The information on this website is provided for informational purposes only. It is presented without regard to any specific investor’s investment objectives, risk appetite, or financial circumstances and may only be suitable for some investors. Buying and selling cryptocurrencies involves risks, including total loss of capital. Users should always research, consult a qualified professional before deciding, and carefully assess their risk profile and loss tolerance.

Smart trades are algorithmic trading strategies. This article will examine the types available on Young Platform and how they work.

Algorithmic trading in brief 

Imagine algorithmic trading as the use of an autopilot for trading. Just like the autopilot of a plane or Tesla, it follows precise instructions to take us to our destination. In algorithmic trading, software acts according to well-defined rules (the algorithm) to buy or sell assets such as stocks, bonds or cryptocurrencies. Smart trades work this way, thanks to their algorithms. 

The advantages of algorithmic trading 

The main advantage lies in eliminating emotional and psychological influences that determine human decisions, using a cold, logical approach to data instead.  Unlike us, the algorithm never rests: it scans the data and the market 24/7, even while we sleep. 

Algorithmic Trading on Young Platform 

The algorithm, in itself, acts according to rules. Each algo-trading strategy available on Young Platform has its specific algorithm, built on an ‘indicator’. 

Indicators work like ‘sensors’ that try to understand what will happen once they have analysed the data. Based on the result, the algorithm executes a buy or sell order. It is essential to remember that indicators analyse statistical trends and are therefore not infallible. This is because the market is unpredictable, and no one, not even mathematics, can predict the future. 

Smart Trades available 

Let’s, therefore, take a look at the strategies available on Young Platform and their respective indicators: 

• Supertrend 
• Momentum
• Keltner Channels 
• Bollinger Bands

Each Smart Trade can be activated on one of the following cryptocurrencies:

• Bitcoin (BTC)
• Ethereum (ETH)
• Solana (SOL)
• Chainlink (LINK)
• Avalanche (AVAX)
• Optimism (OP)
• Polkadot (DOT)

NB. The following definitions have been greatly simplified to make them accessible to a non-expert audience. To explore the indicators, please read the in-depth analyses of the Academy below. Also, remember that the information below, including that in the summary tables, is not a magic formula. Financial markets are complex and unpredictable, and the performance of an indicator can vary depending on many factors.

Before proceeding, consider your risk profile, investment objectives and time horizon. Also, do not base your decisions on a single source of information; always consult a professional who can help you base your choices. In this table, you will find some information that may help you research. But don’t forget: the final decision is always yours! 

Supertrend

This strategy takes its name from the indicator on which it was built: the Super Trend Indicator. In a nutshell, it works on short-term volatility by trying to identify price trend reversals.  

A trend reversal, also called a price reversal, is a change in the direction of prices. The prices of a specific asset are hitherto oriented in a particular direction, and they change direction. There are downward reversals and upward reversals. The trend changes from positive to negative in the first case, while the opposite occurs in the second case.  

The dedicated guide includes other ranking parameters to help you assess whether this strategy is right for you.

Keltner Channels 

The Keltner Channel was first introduced by Chester Keltner in the 1960s. This indicator mainly studies price strength. 

The Keltner Channels help identify potential entry and exit points in an upward market. They tend to work best in high volatility, i.e., when an asset’s price moves steadily. Conversely, if the price remains stable, it may suggest a less volatile or consolidating market.

The dedicated guide includes other ranking parameters to help you assess whether this strategy is right for you.

Momentum 

This indicator is a tool that helps analyse markets to understand whether the price of an axis is getting stronger or weaker. It tells us whether the price is rising rapidly, falling, or changing slowly. This indicator mainly uses two indices: the Relative Strength Index (RSI), which helps to tell if a stock has been bought or sold too much compared to its ‘normal’ value, and the Moving Average Convergence Divergence (MACD), which shows if the price trend of an asset is changing.

The dedicated guide includes other ranking parameters to help you assess whether this strategy is right for you.

Bollinger Bands

The Bollinger Bands strategy, named after its indicator, operates based on ‘buy walls’ and ‘sell walls’. It comes into play when the price enters an ‘overbought’ or ‘oversold’ zone.

In the first case, a cryptocurrency is traded at a price the index evaluates as higher than the “fair” price. Therefore, it is expected that the market will correct shortly, and consequently, there will be a decrease in the value of the cryptocurrency. In the second case, the index believes that the cryptocurrency is traded at a price below its “fair” value. Thus, it is likely that the price will bounce back up.

Other classification parameters in the dedicated guide can help you evaluate whether this strategy is right for you.

How to activate a strategy on Young Platform

Now that we have identified one or more strategies suited to our needs, it is time to get into the swing of things and follow the step-by-step tutorial to activate them. We have devoted an article to the Smart Trades activation guide. In addition, you can read the article on Frequently Asked Questions about Smart Trades.

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Young Platform does not provide tax, investment or financial services and advice. The information on this website is provided for informational purposes only and is presented without regard to any specific investor’s investment objectives, risk appetite, or financial circumstances. It may not be suitable for all investor users. Buying and selling cryptocurrencies involves risks, including total loss of capital. Users should always research, consult a qualified professional before deciding, and carefully assess their risk profile and loss tolerance.

Buy and Hold is a widely used long-term approach. It is based on the belief that, despite market volatility, the value of cryptocurrencies will tend to increase in the long run. Think, for example, of someone who bought Bitcoin five years ago and has yet to sell it, hoping for further appreciation.

Buy and Hold: General Considerations 

Buy and Hold is a particularly suitable approach for beginners because it does not require excessive analysis skills or in-depth knowledge of market dynamics. 

On Young Platform, we have developed a feature to use this approach: Moneyboxes. To be able to activate them, these are the elements you need to bring with you: 

• a lot of patience
• a budget to be allocated on a weekly or monthly basis
• a basic grounding in the options available

For this last point, please refer to the end of the article.

Why choose the buy-and-hold approach

Each approach has peculiarities that, aligned to the specific needs of each, can turn into significant advantages. Let us take a closer look at the conditions under which Buy and Hold can be particularly suitable:

• when one has little time or knowledge in the field
• when you can set aside a budget regularly (the minimum is 20€ in the case of Young Platform operations) 
• one has an anxious, emotional or high-stress personality 
• one is not too familiar with the use of applications or web platforms
• you do not want to achieve goals in the immediate term, but you are thinking of achieving results in the long term
• one does not know the charts well and finds it hard to understand what is the best price to buy and when is the best time to buy

Advantages of the Buy and Hold Approach

Less emotional impact 

One of the most challenging aspects of buying cryptocurrencies is managing emotions. Market volatility can often lead to hasty decisions based on panic or euphoria. Buy and Hold reduces this emotional stress, as the user does not have to worry about daily market fluctuations.

Long-term benefit

Historically, many cryptocurrencies have shown a long-term appreciation trend. People who bought Bitcoin or Ethereum in their early years and held the position have often seen strong results. Of course, we know that ‘what has been‘ is no guarantee of ‘what will be’. However, looking at a chart that photographs the performance of a cryptocurrency from its inception to the present can help us understand whether a long-term approach has the best chance. This means the answer is ‘yes’ for one cryptocurrency and ‘no’ for another.

Simplicity of management

Unlike active trading, which requires constant attention and analysis of the market, the buy-and-hold approach is relatively simple to manage. Once the repetitiveness of buying is set, the user only has to monitor the market occasionally.

Reducing transaction costs 

Each transaction may involve costs, such as buying and selling commissions. The buy-and-hold approach minimises the number of transactions, thus reducing the associated costs.

Flexibility of market entry

Systematic hoarding, also known as Dollar Cost Averaging, allows users to enter the market at an average cost, reducing the risk of buying large amounts of cryptocurrency at an unfavourable time.

More excellent protection against short-term volatility 

By holding cryptocurrencies for an extended period, users are less exposed to the inevitable short-term market fluctuations, which can often be drastic.

How to apply this approach 

Young Platform has developed an ad hoc section for this type of user: Moneyboxes. 

Each Moneybox comes with a powerful tool: recurring purchases. 

The recurring purchase is an automatic order executed according to our chosen settings. 

There are three parameters to be entered:

1. The budget
2. Frequency
3. The cryptocurrencies we are interested in

Choice of budget

The easiest way to decide on a budget is, for example, to analyse our expenses monthly. How much can we put aside? And how much of this budget do we want to convert into cryptocurrencies? 

All that remains now is to decide how to load the budget into our account: by credit card, debit card, prepaid card or bank transfer. Follow the deposit guide for a complete tutorial on the procedure. 

NB. When setting the recurrence of the deposit, make it a few days earlier than the one you set for the Moneybox. 

Frequency

Once the budget has been established, all that remains is to ‘unpack’ it into several purchases. The choice can fall on:

• 1 purchase per month
• 1 purchase every fortnight
• 1 purchase per week

The choice will also depend on the size of the budget. For example, if it is 1,000€ per month, I may consider splitting it into several purchases so that the average purchase price is well spread over the 30 days. 

Essential preparation on available options

Three types of Moneyboxes are available on the Young Platform. Each includes one or more cryptocurrencies, and knowing what we buy is essential. For an informed choice, it is crucial to learn more about the characteristics of each cryptocurrency, such as its history, market positioning and potential applications.

The Curated Bundle

These are Moneyboxes already diversified by market area:

• Popular: these are the most popular cryptocurrencies among members of the Young Platform community. Inside, you will find:
  • Bitcoin
  • Ethereum
  • Ripple 
  • Young (Young Plafform’s cryptocurrency)
• Metaverse is an online virtual environment where users interact in shared experiences. Inside, you will find cryptocurrencies that belong to projects in the Metaverse:
  • The Sandbox
  • Axie Infinity
  • Decentraland 
• Web3 is the third evolutionary phase of the internet, characterised by blockchain-based economic and technological systems. Here, you will find the cryptocurrencies that collaborate in the construction of Web3:
  • Basic Attention Token
  • Chainlink 
  • Decentraland 
  • Uniswap 
• Proof of Work: includes the most popular cryptos that are based on this consensus protocol:
  • Bitcoin
  • Dogecoin 
  • Litecoin 
• Smart Contract: includes the most popular cryptos that use smart contracts
  • Cardano
  • Avalanche
  • Ethereum
  • Polygon 
• DeFi comprises blockchain-based financial solutions that operate in a decentralised manner. Here you will find:
  • Aave
  • Chainlink
  • Uniswap 
• Layer 2: these are state-of-the-art blockchains that seek to improve certain technology features. Here you will find: 
  • Arbitrum 
  • Polygon  
  • Optimism 

Single Coin Moneybox

To purchase an individual cryptocurrency, simply select one from the menu. To explore the various projects, scroll down the Markets page of our site and, by clicking on a cryptocurrency’s name, read more about it. Before making any transactions, conducting thorough research and analysis is essential, assessing each cryptocurrency’s characteristics.

The Bespoke Bundle (2 to 5 crypto)

You can create a customised and diversified Moneybox using the’ Markets’ page to discover the various cryptocurrencies. This section lets you learn more about the available projects and their characteristics. However, conduct in-depth research on each cryptocurrency before including it in your Moneybox.

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Young Platform does not provide tax, investment or financial services and advice. The information on this website is provided for informational purposes only. It is presented without regard to any specific individual’s objectives, risk appetite or financial circumstances and may only be suitable for some Users. Buying and selling cryptocurrencies involves risks, including total loss of capital. Users should always research, consult a qualified professional before deciding, and carefully assess their risk profile and loss tolerance.