How to buy and short Argo Blockchain shares

How to trade Argo Blockchain shares

You can trade Argo Blockchain stock via leveraged derivatives, namely CFDs. You won’t take ownership of any shares and you can speculate on whether the share price will go up or down. You’ll ‘buy’ (go long) if you think it’ll increase or ‘sell’ (go short) if you think it’ll drop.

CFD trading requires a deposit – known as margin – to open a position.

How to trade Argo Blockchain shares:

1. Create an account or log in
2. Search for ‘Argo Blockchain’ on our trading platform
3. Select ‘buy’ or ‘sell’ in the deal ticket
4. Set your position size and take steps to manage your risk
5. Open and monitor your position

Trading on leverage naturally magnifies your risk, because your profits and losses are both calculated on the full value of your position – not the deposit used to open it. Always take appropriate steps to manage your risk before committing your capital.

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How to short Argo Blockchain shares

You might think that the Argo Blockchain share price isn’t going to rise in the near future, in which case you can go short. You’ll make a profit if the share price moves in your favour – ie it goes down – and you’ll make a loss if the share price goes up. Follow these steps:

1. Create or log in to your trading account
2. Search for ‘Argo Blockchain on our platform
3. Select ‘sell’ in the deal ticket
4. Choose your position size
5. Open and monitor your position

How to close your Argo Blockchain trade

You might want to close your Argo Blockchain trade, to lock in profits or limit losses.

A brief history of Argo Blockchain

Argo Blockchain (ARB) is new to the crypto mining business, as it was only established in early 2018. Already, it’s the only company of its kind to be publicly traded on the London Stock Exchange (LSE). It listed on this exchange in August 2018, less than a year after launching.

Other notable dates and developments:

• 2019 first quarter (Q1): implements a new strategy, mining for its own accounts
• 2019 (Q2): invests in new mining technology – seven-nanometre mining rings
• 2020 (Q1): finishes the installation of 17,000 of its mining rings
• 2020 (Q2): upgrades operations to 18,000 of the cutting-edge rings

What’s the Argo Blockchain business model?

Argo Blockchain’s business model is based on the concept of cryptocurrency mining. It prides itself on being an energy-efficient crypto mining company, which translates into lower operating costs for the business. To understand what Argo Blockchain does, it’s important to grasp blockchain technology and crypto mining.

Blockchain is a record of data that is distributed across a network of computers, meaning there is no single point of failure. What makes it unique is that there’s no central authority in charge of the blockchain file or the data it contains. Instead, each computer keeps its own copy of the file, and any update requires the approval of a majority of machines in the network – making it nearly impossible to hack. What’s more, information in the blockchain is linked together by complex mathematics, meaning that even the smallest of changes will break the entire chain and be rejected by the network.

Cryptocurrency mining is the process of verifying crypto transactions adding new blocks to the chain. Mining computers select pending transactions from an exchange and check them to make sure the issuer has enough funds to complete the transaction. A second verification confirms that the sender authorises the transfer of funds using their private key.

The mining computers collect valid transactions in a new block and try to generate the cryptographic link with the previous block, finding a solution to a complex algorithm. When a computer manages to generate the link, it adds the block to its version of the blockchain file and transmits the update throughout the network.

Argo Blockchain share price: how to analyse Argo Blockchain shares

You can use a combination of technical and fundamental analysis to study the Argo Blockchain share price:

• Technical analysis uses chart patterns, technical indicators and historical price action to help you predict future price movements
• Fundamental analysis uses information like a company’s net revenue, profit and loss statements, as well as wider macroeconomic factors, to help you determine share price movements

Learn more about technical and fundamental analysis using IG Academy.