Cryptocurrencies Are More Volatile Than Traditional Investments
The value of Bitcoin and other cryptocurrencies can fluctuate wildly. Its common for them to rise or fall by 10% or more in a single day. But when you step back from the day-to-day view and consider crypto as a long-term investment, youll have a better sense of its potential.
Look back at the historical value of Bitcoin, Etherum, or any other coin thats grabbed your interest. Then compare it to the historical value of any other investment youre considering.
Granted, crypto is unique in a number of ways and its too new to know where it will be in the future. But the most popular cryptocurrencies have appreciated much faster and more reliably than virtually any other assets.
What Are The Fees When Buying Bitcoin
If you want to buy and sell bitcoin, there are usually fees to pay, such as:
- Transaction fees
Investment companies that are showing an interest include:
- The worlds largest asset manager, BlackRock, opened two of its funds to the possibility of investing in bitcoin futures
- UK based Ruffer Investment Management added bitcoin to its multi-asset portfolios before pulling out five months later with a $1.1B profit
- In December 2020, one of the worlds biggest index providers, S& P Dow Jones Indices announced it would launch indexing services in 2021 for over 550 of the top traded cryptocurrencies.
The Bank of England and other central banks are exploring the possibility of their own central bank-backed digital currencies.
As more institutional investors get on board with crypto assets for capital gains, this could help to calm dramatic price moves.
Ethereum 20 Is On The Horizon
Ethereum has faced many criticisms: slow network, power hungry mining, scalability. All these negatives are true. But Ethereum 2.0 is in the works.
Vitalik Buterin, the founder and CEO of Ethereum, announced they will release Ethereum 2.0 — saying the future launch of Ethereum 2.0 will be 1,000x more scalable and cut energy costs by 99%.
Its set to be released in phases, starting from December 2019. Of course, if Vitalik manages to release these updates on time, the value and price of Ethereum will increase significantly.
The promise of a 99% reduction in electricity, faster transactions, and vastly increased scalability is an ambitious goal.
But is it achievable?
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How Do I Protect Myself
If youre looking to buy a cryptocurrency in an ICO, read the fine print in the companys prospectus for this information:
Who owns the company? An identifiable and well-known owner is a positive sign.
Are there other major investors who are investing in it? Its a good sign if other well-known investors want a piece of the currency.
Will you own a stake in the company or just currency or tokens? This distinction is important. Owning a stake means you get to participate in its earnings , while buying tokens simply means you’re entitled to use them, like chips in a casino.
Is the currency already developed, or is the company looking to raise money to develop it? The further along the product, the less risky it is.
It can take a lot of work to comb through a prospectus the more detail it has, the better your chances its legitimate. But even legitimacy doesnt mean the currency will succeed. Thats an entirely separate question, and that requires a lot of market savvy.
But beyond those concerns, just having cryptocurrency exposes you to the risk of theft, as hackers try to penetrate the computer networks that maintain your assets. One high-profile exchange declared bankruptcy in 2014 after hackers stole hundreds of millions of dollars in bitcoins. Those arent typical risks for investing in stocks and funds on major U.S. exchanges.
» Learn more: What is bitcoin?
Should You Invest $1000 In Hive Blockchain Right Now
Before you consider Hive Blockchain, you may want to hear this.
Motley Fool Canadian Chief Investment Advisor, Iain Butler, and his Stock Advisor Canada team just revealed what they believe are the 10 best stocks for investors to buy right now… and Hive Blockchain wasn’t one of them.
The online investing service they’ve run since 2013, Motley Fool Stock Advisor Canada, has beaten the stock market by over 3X. And right now, they think there are 10 stocks that are better buys.
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Pros: Why Investing In Ethereum Could Be A Good Idea
Many see Ethereum as the second-most important development in cryptocurrency after Bitcoin and to go into all the reasons why Ethereum is so great will take far too long.
Amid the pros of investing in Ethereum, one of the most anticipated events among crypto investors is the launch of Ethereum 2.0 that will shift from proof-of-work to proof-of-take .
Thats not everything! Behemoths like JPMorgan, Amazon, and Microsoft Azure have also embraced Ethereums blockchain technology to stay ahead of other financial giants, piquing investors attention worldwide.
Bitwise 10 Private Index Fund
An investment in the Bitwise 10 Private Index Fund is an investment in the Bitwise 10 Large Cap Crypto Index. For those unfamiliar with the Bitwise 10 Large Cap Crypto Index, it tracks the return of the 10 largest cryptocurrency assets on the market. Therefore, investors who buy shares in this particular fund will be investing in the 10 largest crypto-assets, as measured and weighted by free-float market capitalization. When the assets perform well, investors will realize gains proportionate to the shares they own.
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Cryptocoms Cro Has Had Enormous Growth Over The Past Year
In January of 2019, CRO was ranked 111 on Coin Market Cap. CRO is currently ranked 19. Between January 2019 and the current date in March 2020, the market capitalization of CRO grew 17 times from $30 million to $572 million. During the same time, Bitcoins market cap only grew 2 times, from $67 billion to $117 billion.
However, Bitcoins daily exchange traded volume grew twice as fast as CRO over the same period . Bitcoin does about $50 billion a day in exchange volume while CRO does approximately $11 million.
Solana Could Surging Past $500 To $2000 In 2022 Be Possible
Solana continues to break out to new highs and steal the spotlight from everyone else. Its new highs in August, September and October far outstrip the highs it reached during the first bull run in 2021 and these highs will probably continue into 2022.
According to DeFiLlama, there is now a total value locked of $13.53 billion on the Solana blockchain also surpassing earlier levels reached during the first bull run in 2021.
Total value locked Solana. Source: defillama.com
CryptoPotato suggests that liquidity staking protocol Marinade Finance, which operates on Solana, is likely behind much of the growth on Solanas ecosystem, recording a 69% increase in TVL in October.
Aside from a bludgeoning ecosystem of DeFi and dApps, the primary reason Solana has been soaring in 2021 is NFTs, a sector of the crypto economy where SOL leads the way. In 2021 it strengthened its position in NFTs when crypto exchange FTX launched a marketplace specifically for Solana NFTs.
Elsewhere, U.Today noted in October 2021 that in one week Ethereum saw outflows of $14 million while Solana recorded inflows of approximately $12.5 million. This could suggest that investors are moving away from Ethereum and onto other platforms, such as Solanas.
It is quite probable that in 2022 we may see Solana become Ethereums biggest adversary yet.
Solana price predictions for 2022:
What do you think? Would you invest in Solana ?
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To Invest In Cro Or Not To Invest
Last week, the self-proclaimed cryptocurrency investment guru, Teeka Tiwari, announced this year’s 5 Coins to $5 Million during his Jetinar on a private jet. In this list, which he charges over $400 to read, he included the coin MCO, but he did not include the coin CRO. This newsletter explains why we think that Teeka is wrong. Our analysis provides strong evidence that CRO will outperform MCO during 2020. The 2020 Return for CRO is already double MCOs. The Year to Date Return for CRO has been 33% whereas MCO has only been 16%. This is in contrast to Bitcoins -10% Return since January, 1, 2020.
No One Controls Your Money
So if regular money is controlled by governments and banks who does control crypto? Well, the beauty of crypto is that its controlled by nobody and everybody at the same time.
Lets take Bitcoin. The code is stored in thousands of nodes that means the computers of tens of thousands people who voluntarily run Bitcoin software on their computers. Theres no central authority or mastermind behind it. All users effectively retain control. And its in everyones interests to keep the network active and healthy.
And running it this way has all kinds of advantages over banks. Like, banks are only open business hours of the country theyre based in. Blockchain functions non-stop. And banks payments can take up to 48 hours to clear Bitcoin transactions take between 15 minutes and an hour.
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Consider Your Investing Strategy
Whether you choose to invest in cryptocurrency right now will depend on how long you plan to hold your investments.
One of the best ways to build wealth is to buy solid investments and hold them for the long term. While it’s possible to make money with short-term investing strategies, such as day trading, those techniques can be incredibly risky.
Of course, nobody knows for sure what the future looks like for cryptocurrency or whether it will still be around in the long term. But if you believe in its potential, it doesn’t necessarily matter whether you buy right now or when prices are higher — if cryptocurrency succeeds and prices increase over time, you’ll make a profit regardless.
There May Be Money To Make But Not Without Risk
It is possible that Bitcoin will double in price, but it is also possible it will fall to zero. Because they are not backed by a government or asset, Bitcoin and its cousins do not really represent anything. They are only worth what someone is willing to pay for them. Knowing the risks, people may feel better with $1,000 in the bank than in Bitcoin. Whatever you do, do not invest more than you can afford to lose. Cryptocurrencies are a risky place to invest, and you never know what tomorrow will bring.
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Could They Become Obsolete
While the technology that cryptos are built on might have a promising future, its possible that the ones we know today might not be usable in the next few years. Many countries like Russia and China have decided to make crypto illegal.
The U.S. is taking a different approach and considering making its own central bank digital currency. If that happens, its unclear what this would mean for existing cryptos and their place in the market.
Do You Have To Pay Taxes On Cryptocurrency
If you buy and sell coins, its important to pay attention to cryptocurrency tax rules. Cryptocurrency is treated as a capital asset, like stocks, rather than cash. That means if you sell cryptocurrency at a profit, youll have to pay capital gains taxes. This is the case even if you use your crypto to pay for a purchase. If you receive a greater value for it than you paid, youll owe taxes on the difference.
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Is Investing In Uniswap A Good Idea
DEXs are expected to overtake traditional crypto exchanges in the future. Investing in UNI now could be like being an early investor in Binance several years ago.
Uniswap Price Prediction Forecasters 2022:
Read our article on Uniswap here.
Have you consider investing in Uniswap in December?
Its Way Easier To Get Into Crypto Than You Thought
Just in case you thought you need a PhD in programming, or maybe in finance to get into crypto well tell you now. You dont. A smartphone with internet access will do nicely. In fact, crypto is way easier to get into than more traditional investments.
First, because its got high liquidity that you can buy and sell it easily and quickly. Second, there isnt a high threshold to getting into it. For stocks and bonds, usually you need to put a large sum of money, and you cant just put down 100 bucks. With crypto, you can.
Better still, there are no institutions, no paperwork just get an account, get a wallet, track your assets. And its pseudonymous you dont have to give any documents, or even your name.
But we realize, theres still a lot of confusion, and not many people understand how this space works, and how to take advantage of it. Thats why we decided to create the best course out there, to guide you step by step through everything weve learned about Bitcoin and Blockchain from scratch.
Its called Bitcoin Essentials. Youll learn how the technology works, how to use it, how to buy bitcoin safely, and how to store it. Just to go alux.com/bitcoin. If you want to be part of this new revolution in technology and wealth, this is something you really dont want to miss out on.
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Why Should I Buy Cryptocurrencies
There are several reasons why you might buy cryptocurrencies. Some people are enthusiasts or have confidence in aspecific crypto. Others find the technology behind various crypto’s extremely interesting and therefore support themthrough thick and thin. However, many will buy cryptocurrencies because of the financial aspect.
With good research , you can invest in a crypto at the right time, which can bring you a hugereturn on your investment. This return differs strongly per coin and it is not guaranteed that a coin will flip overseveral times.
Join A Bitcoin Exchange
First, youll need to determine where you want to make a Bitcoin purchase. Most Bitcoin investors use cryptocurrency exchanges. Theres no official Bitcoin company because its an open-source technology, but there are several different exchanges that facilitate Bitcoin transactions. These exchanges are the middlemen of cryptocurrency investing, like a stock brokerage.
If you decide to purchase from an exchange, youll have to decide which exchange you want to buy from. Here are a few of the most popular options:
Coinbase: A very popular crypto exchange that insures losses in the event of a security breach or fraudulent transfers
Binance: Founded in 2017, Binance is a crypto exchange with a strong focus on altcoins
Kraken: This San Francisco-based exchange allows you to invest in Bitcoin using various currencies from around the world
Gemini: Launched in 2015 by Cameron and Tyler Winklevoss, Gemini offers services for casual and veteran Bitcoin investors with different user interfaces and fee structures for both
Bitfinex : The longest-running cryptocurrency exchange thats optimized for advanced traders and lenders
As you might have guessed, choosing a Bitcoin exchange is becoming more difficult for investors as more options begin to popularize. Find everything you need to know about Binance vs. Coinbase and start investing, today.
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Heres How Much You Should Invest In Cryptos Right Now
Docs note: Cryptocurreny is one of the biggest investment stories right now. But knowing how to invest in such a speculative asset is confusing.
Thats why Im sharing this essay from Eric Wade, bitcoin expert and editor of Crypto Capital, where he explains how much you should invest in cryptocurrencies.
While U.S. regulators are quietly raging a war on cryptocurrencies U.S. President Donald Trump is about to help them go mainstream.
Eric, how much should I invest in cryptos?
Its one of the most common questions Im asked about cryptocurrencies.
And I get it. Cryptos are some of the most volatile assets youll ever see. And with so many different types of cryptos out there, it can be hard to know how much of your portfolio you should allocate to any one of them.
So today, Im clearing up the confusion
The first thing to keep in mind when youre investing in cryptos is to start small. And when I say small, I mean with a few hundred bucks.
Using a small sum, get used to the process of transferring, trading and safely storing cryptos. Once youre comfortable, then you can start to level up to bigger sizes.
Never invest more than you can afford to lose.
The table below is a very general portfolio allocation guide
Now, before I get a slew of angry emails, let me point out that the left-hand column denotes the MAXIMUM PERCENTAGE of a portfolio that should be invested in cryptos depending on your experience AND your market bullishness.
Cons: Why Investing In Ripple Xrp Could Be Risky
The primary concern with Ripple right now is the SEC in the US.
Before all this drama, it was believed that Ripple had a good relationship with the SEC.
It started to look like Ripple was failing at one of the most important things it was supposed to be good at working with US government agencies.
Aside from all this drama, some hardcore crypto enthusiasts would argue that as a centralised crypto, its too risky to invest in.
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Ethereum Has More Developers Than Any Other Ethereum Killer
Ethereums competitors, like EOS, claim their blockchain can perform leagues better than Ethereum.
But proving it is another thing. So far, none of the so-called Ethereum killers have been capable of demonstrating their prowess.
Blockchain development is a skill in demand. It has grown 6000% in 2018 and is the fastest growing skill on freelancing websites.
The growth of the Ethereum development community is impressive. It makes sense that, according to cryptocurrency researcher Kevin Rooke, 94 out of the top 100 blockchain projects were launched on the Ethereum network.
History shows that those with the most and best developers win. As a result, we can assume that Ethereum will compete with EOS and other competitors without much trouble.