What is the Linkage Between Cryptocurrency and Stocks (What does Cryptocurrency Linkage Mean)?

What is the linkage between cryptocurrency and stocks? What does it mean? The l

What is the Linkage Between Cryptocurrency and Stocks (What does Cryptocurrency Linkage Mean)?

What is the linkage between cryptocurrency and stocks? What does it mean? The linkage between cryptocurrency and stocks, also known as “combinatorial separation”, allows investors to integrate their own stocks, enterprises, or companies with other financial markets. For example, traditional industries such as banks and securities firms can obtain corresponding returns through trading between exchanges. Based on blockchain technology and using smart contracts, securities tokens can be directly circulated between exchanges and the buying and selling parties. When the price of a certain asset exceeds a certain proportion (such as Bitcoin), its value will be transferred. If the price is lower than a certain index or the stock price of certain concept stocks, the issuer of the stock will also profit from it.

For those who are not in the investment-related industry, this is actually similar to a typical project. However, because many platforms have already launched this product in the market, and the models of these platforms are based on existing financial technology systems, this combination is also a more reasonable method.

What does Cryptocurrency Linkage mean?

After the rise in Bitcoin prices, the cryptocurrency market began to show a linkage state. Generally speaking, the meaning of cryptocurrency linkage is the process of information transmission between investors and traders through mutual connections. And this linkage means that value exchange, fund circulation, and asset allocation among participants can be transferred through the blockchain network.

For ordinary users, linkage is the basic meaning of understanding a specific digital asset or its related concepts. It includes: on-chain data and technical analysis; fundamental news driving; mainstream media coverage. (Note: linkage refers to a form in which investors sell or exchange to fiat currency to other project parties to a certain extent)

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