Wednesday, June 29, 2022

How To Watch Cryptocurrency Market

Is Cryptocurrency A Good Investment

Buy Bitcoin in 2019? How to Play the Cryptocurrency Market

The cryptocurrency markets are far more volatile than the stock markets. With less liquidity, and more speculation than traditional financial markets, the value of any given cryptocurrency can rise and fall by 30% or more in a day. Not only that, crypto markets are open for trades 24/7, 365 days a year. There are no evenings or weekends off like the NASDAQ or LSE

If youve been hearing about cryptocurrencies a lot these days, you may feel like its a good opportunity to make a quick profit. But if youre just jumping on the bandwagon and take no steps to educate yourself about how the technology and the market work, you risk losing money.

Lets take a look at Bitcoin, for example the first and by far most dominant cryptoasset.

Early investors in Bitcoin have made millions of dollars in profits. In the span of just one year, Bitcoins price went from $7,000 USD in April 2020 to over $60,000 USD in April 2021! Now imagine what kinds of profits went into the pockets of people who bought Bitcoin back in 2013, when it was a mere $100 USD.

Though that sounds very exciting, it certainly is not the whole picture. Take a look at the entire graph, showing Bitcoins fluctuations in price between October 2013 and the end of May 2021. Its not a straight upward climb.

Thats why you should only ever risk as much money as you can afford. Like Wence Casares, CEO of Xapo, sums it up in an AMA on bitcoin.com:

Funds Typically Take Turns Shining

If you choose to invest in specific areas of the market through ETFs or mutual funds, you will notice that theyll take turns being in and out of favour often over years at a time. For example, the biotech ETF SPDR S& P Biotech ETF generated exceptional returns from 2012 to the summer of 2015. Then it came crashing down in early 2016. After that, it had a nice run through the summer of 2018 before correcting and then consolidating. Then during the pandemic in 2020 and 2021, the ETF doubled investors money from trough to peak.

If you go through a decades history of the performance of other funds, youll probably see a similar story. This is why Buffett recommends averaging into the S& P 500, which doesnt require any thinking on your part. You only need to be disciplined in your savings and follow the plan through thick and thin. That said, if you know certain areas of the market are trading at a discount today, it makes sense to gain exposure to those areas. Perhaps it would be a high-growth ETF like ARK Innovation ETF.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium service or advisor. Were Motley! Questioning an investing thesis even one of our own helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Best Low Market Cap Altcoins To Watch In January 2022

Opinion pieces are based on the author’s personal opinion, and they do not constitute investment advice, financial advice, or trading advice. Securities.io does not recommend that any cryptocurrency should be bought, sold, or held by you. Conduct your own due diligence and consult a financial advisor before making any investment decisions.

The cryptocurrency is known for its major cryptocurrencies, like Ethereum, Binance Coin, Solana, Cardano, and, of course, Bitcoin, which is pretty much a synonym for cryptocurrency nowadays. However, buying these massive coins is not going to bring you that much profit unless you have a lot to invest.

They are big, expensive, and at the top of their game, or recovering from major corrections that they took in recent months, but still rather high up. Investing in these coins can definitely bring you gains sooner or later, there is no question about it. However, you might have to wait a long time, and you might not earn as much as you hope to.

Your best alternative is to look towards young, low market cap projects that havent yet had their chance to blow up. These coins whose success lies in the future are the best way to go for any aspiring investor, provided that they do their research and decide that these are the coins worth investing in. With that said, we have created a shortlist of 5 low market cap altcoins that we believe could go big at some point in the future.

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How To Store Cryptocurrencies

Alright, so you bought your cryptocurrencies, where exactly should you store them?

Centralized exchanges are much more reliable, secure, and insured today than they were a few short years ago. Most retail investors are more than comfortable trusting a centralized crypto currency exchange like Binance or Coinbase with custody of their holdings. And since mass adoption of crypto is still just beginning, this is the easiest and most straight forward option

If you are more risk averse, and less trusting of centralized methods of custody, there are a variety of crypto wallet options available with an array of features and trade offs. If you want to learn even more about what is available see our in depth Cryptocurrency Wallet Guide: A Step-By-Step Tutorial.

Cryptocurrencies To Watch: Ltc

The Cryptocurrency Market is Exploding. Heres What You ...

Something worth watching is happening over at litecoin. In recent weeks, according to crypto data firm Santiment, whales have been on a buying spree. The longest in a half-decade.

Litecoin is showing some signs of life, up about +5% against BTC in the past two days,” Santiment said. “Whale addresses holding 10,000 to 1,000,000 LTC are in a 15-week accumulation pattern that is their longest since 2017. They have added 5% of LTCs supply in just 15 weeks.

LTCs $388.24 price on 9 May was its best close ever. It is flirting with $150 at the time of writing and is the 22nd biggest coin by value, at $9.8bn market cap. Like the rest, it is dwarfed by giant BTC. But it does have something going for it in the accessibility department for those wanting to invest: 69.4 million coins are circulating, compared with BTCs 18.9 million.

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Similarities Between The Crypto And Stock Market

  • Stock trading and investing tools are more or less the same. This is especially true for technical traders using tools such as charts to analyze the market. You can use the same tools to perform TA ” rel=”nofollow”> Technical Analysis) for trades on either market.
  • Assets denominated using fiat currencies. The crypto market may be innovative and revolutionary with the assets designed to append the current financial system. However, the denominations in the marketplace are still valued compared to fiat currencies similar to the stock market.
  • Trading and investing strategies are similar. In the stock market, traders can choose to day trade, swing, or position trade. They can also opt to buy and hold their assets for the long term. Similarly, traders and investors in the crypto market can do the same things.
  • Similar market products. The stock market has been around for generations, leading to innovative products such as derivatives and techniques such as using leverage to inflate gains Those same products and techniques have been ported over to the new age cryptocurrency market. You can now trade Bitcoin futures, options, and leveraged tokens. You can use leverage on most of your trades on most leading cryptocurrency exchanges, such as Binance, Bitfinex, or BitMEX. The full list of digital asset exchanges with a leverage trading here.

Please note: DO NOT trade cryptocurrencies with leverage unless you are fully aware of what you are doing and what risks you face.

Look Out For Obvious Signs Of Scam

Good coins have a transparent technical vision, an active development team, and a lively, enthusiastic community. Bad coins are not transparent, promote fuzzy technical advantages without explaining how to reach them, and have a community that is mostly focused on getting rich quickly. Perhaps the worst kind of cryptocurrencies are MLM coins like the now infamous scam Bitconnect.

We will talk more about Bitconnect in a bit. For now, here are some of the more obvious signs of scam.

  • The Team

  • It really goes without saying that the success of a project is directly related to the credibility of the team. Lets put it like this: if you are investing your money into a company, wouldnt you want to know that the company is in good hands and that your money is going to be appreciated considerably?

    One of the most successful new projects of the current 2020-2021 market cycle is Uniswap. Although created in 2018 by ex-Siemens engineer Hayden Adams, Uniswap saw incredible success later on in 2020-2021. In March of 2021, it was generating fees of approximately $2-3 million dollars daily for liquidity providers who create a market for buying and selling on the platform.

    Now, compare that to this team:

    Yesyour eyes are not deceiving you, thats Ryan Goslings photo on the team page.

    Of course, most of the time, bad investment advice wont be this easy to detect. But there are steps you can take to thoroughly research the projects team and ensure their credibility.

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    How It All Started

    Digital currencies have been around for more than a couple of decades in different experimental forms, but the first one to be successfully implemented was Bitcoin.

    Bitcoin was created by Satoshi Nakamoto , who released its whitepaper called Bitcoin: A Peer-to-Peer Electronic Cash System in October 2008 and launched the network in January 2009.

    Bitcoin has spurred a whole new digital coin class that can now be bought and traded on cryptocurrency exchanges worldwide.

    Other than Bitcoin, there are other well-known and recognized cryptocurrencies like Ethereum which is currently trailing Bitcoin in terms of network value and Tether which is the leading stablecoin also in terms of network value.

    A stablecoin is a digital asset whose value is pegged to the value of a fiat currency in order to avoid the wild price volatility that is common with other virtual currencies. The majority of successful and professional cryptocurrency traders use stablecoins while mitigating their trading plans.

    Currently, there are more than 13,000 cryptocurrencies listed on CoinMarketCap, a leading data aggregator for the cryptocurrency market.

    Speculation Fraud And Adoption

    Will China to dominate cryptocurrency market? | Latest English News | World News | WION

    Cryptocurrencies have been compared to Ponzi schemes, pyramid schemes and economic bubbles, such as housing market bubbles.Howard Marks of Oaktree Capital Management stated in 2017 that digital currencies were “nothing but an unfounded fad , based on a willingness to ascribe value to something that has little or none beyond what people will pay for it”, and compared them to the tulip mania , South Sea Bubble , and dot-com bubble .The New Yorker has explained the debate based on interviews with blockchain founders in an article about the “argument over whether Bitcoin, Ethereum, and the blockchain are transforming the world”.

    While cryptocurrencies are digital currencies that are managed through advanced encryption techniques, many governments have taken a cautious approach toward them, fearing their lack of central control and the effects they could have on financial security. Regulators in several countries have warned against cryptocurrency and some have taken measures to dissuade users. However, research in 2021 by the UK’s financial regulator suggested such warnings went unheard, or ignored. Fewer than one in 10 potential cryptocurrency buyers were aware of consumer warnings on the FCA website, and 12% of crypto users were not aware that their holdings were not protected by statutory compensation.

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    Etfs And Mutual Funds Can Be Volatile

    ETFs and mutual funds can provide much greater long-term returns than putting money in your savings account or GIC. However, they are also susceptible to volatility, just like their underlying assets, such as stocks, bonds, etc. Investors should know what kinds of funds theyre investing in and understand the risks and volatility they can bring.

    If you know youll need to spend your money within a year, place it in something safer, like a high-interest savings account or GIC instead of in equity ETFs or mutual funds. For a guide as well as model portfolios for index/ETF investing, check out the Canadian Couch Potato website.

    Think About The Value That The Project Is Bringing In

    Check to see whether the project is bringing in any practical utility into the ecosystem. The perfect example of this is Ethereum. There is a reason why it took off so fast for the first time, developers around the world had a platform that they could use to build their own dapps or decentralized applications on a blockchain.

    Along with that, keep in mind the issues that the crypto world is desperately looking to solve privacy, scalability, and interoperability. A good way to go about your investment is to find the projects that are specifically working on solving these problems.

    As of 2021, the players trying to solve these same problems and roll them all into their platform, or Layer 1 network include:

    • Matic

    Each token role has its own purpose, as outlined below:

    • Right: the token holder gets a certain amount of rights within the ecosystem, such as the right to vote.
    • Value exchange: the token helps buyers and sellers trade value within the ecosystem.
    • Toll: the token acts as a toll gateway in order for the holder to use certain functionalities of the system.
    • Function: the token enables the holder to enrich the user experience inside the confines of the environment.
    • Currency: the token stores value that can be used to conduct transactions both inside and outside the ecosystem.
    • Earnings: the token provides an equitable distribution of profits or other related financial benefits among investors.

    So, how does this all help with evaluating token utility?

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    Good Reasons To Invest In Cryptocurrency

  • You believe that cryptocurrencies are the way of the future and will likely replace the traditional fiat money if this happens, you want to be educated, prepared, and experienced.
  • You support the social vision behind cryptocurrencies that currency should be decentralized and under full control of the people who use it.
  • You understand and appreciate how blockchain technology works you value the peer-to-peer aspect of transactions, their security, and confidentiality.
  • Place Your Cryptocurrency Order

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    Once there is money in your account, youre ready to place your first cryptocurrency order. There are hundreds of cryptocurrencies to choose from, ranging from well-known names like Bitcoin and Ethereum to more obscure cryptos like Theta Fuel or Holo.

    When you decide on which cryptocurrency to purchase, you can enter its ticker symbolBitcoin, for instance is BTCand how many coins youd like to purchase. With most exchanges and brokers, you can purchase fractional shares of cryptocurrency, allowing you to buy a sliver of high-priced tokens like Bitcoin or Ethereum that otherwise take thousands to own.

    The symbols for the 10 biggest cryptocurrencies based on market capitalization* are as follows:

  • Bitcoin
  • *Based on market capitalization as of June 28, 2021

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    Crypto Pros Apple Watch App Features

    It is not uncommon to see Cryptocurrenciesmove %10 in less than a day. And with such volatile markets, investors andtraders need all the tools they can get their hands in to stayon top of the crypto market.

    Crypto Pros Apple Watch complications enable you to display Bitcoin and more than 5,000 cryptocurrency prices straight on your Apple Watch. Youll also get all the price alerts you set for your coins so youll never miss a move. Any alert you set on your phone will automatically sync and get triggered on your Apple Watch.

    You can access the app by tapping on it in the app menu, or by tapping on any Crypto Pro complication. The apps main page is a compact list. You can either choose to display a list sorted by market cap or display your list of favorite coins you set in the iOS app. Tapping on any coin will display a 24-hour chart and additional details.

    Create And Verify Your Account

    Once you decide on a cryptocurrency broker or exchange, you can sign up to open an account. Depending on the platform and the amount you plan to buy, you may have to verify your identity. This is an essential step to prevent fraud and meet federal regulatory requirements.

    You may not be able to buy or sell cryptocurrency until you complete the verification process. The platform may ask you to submit a copy of your drivers license or passport, and you may even be asked to upload a selfie to prove your appearance matches the documents you submit.

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    How Do Cryptocurrencies Work

    When a new cryptocurrency transaction occurs, it gets added to a digital ledger of all other transactions on a decentralized network of computers called the blockchain. Computers or nodes of blockchain can have varying degrees of centralization and decentralization, and can be spread all across the world. Before a new transaction can be added to the blockchain, these nodes check the new data to be added or block, against each others records to verify it.

    This makes the blockchain incredibly secure and virtually impossible to hack. If someone wanted to fake a transaction, theyd essentially need to hack 51% of the nodes in a network, which would be incredibly time consuming and expensive to ever be worth it.

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