Hey Jhon, I haven’t found a crypto yet that is really related to my hobbies – Crossfit and backpacking – but I would actually advise steering clear of investing in things linked too closely to what you’re passionate about; whilst insider knowledge of an industry is really valuable, it’s important to trade without emotion and if your trading a coin that is linked to a great love of yours, that becomes harder.
“The insurance will cover loss of bitcoin by, among other things, theft, destruction, bitcoin in transit, computer fraud and other loss of the private keys that are necessary to access the bitcoin held by the Trust… The insurance policy will carry initial limits of $25 million in primary coverage and $100 million in excess coverage, with the ability to increase coverage depending on the value of the bitcoin held by the Trust.”
There are other ways you can incorporate "bitcoin stock" into your portfolio as well. The Bitcoin Investment Trust (GBTC) is one notable option that operates similarly to an exchange-traded fund. It is a trust that owns bitcoins it is holding, and by buying shares of it, you can essentially bet on bitcoin value without actually owning any of your own (their bitcoins are secured using Xapo, Inc. as storage).
I rebalance my BTC and primary trading pairs based on particular spikes in an asset. Say for example Dash goes on a run and Monero has been trading sideways for a while, I may switch some of my Dash position into Monero. I may use TA for this and look at specific Fibonacci extensions but this is a skill I am learning, and more often than not I make the change based on a gut feel for something having moved quick.
I know for a fact that I’m certainly not remotely smart or knowledgeable enough to pull off this kind of short term investment that aims to profit from market sentiment alone, especially not in the turbulent, mercurial waters of cryptocurrency, and that’s all I can say about this here. On top of this, the existence of black swan events that can crater an entire market unpredictably short term introduces a variable that inherently is just about impossible to predict, and makes short term bets like this even more dangerous.
Nevertheless, NVIDIA and AMD aren't absolved from downside, either. In fact, you could say the two are stuck in a pervasive cryptocurrency conundrum. As a result of the high demand for GPUs, graphics card prices have shot through the roof. In doing so, it's angered their core gaming customers, who are being forced to pay significant premiums for graphics cards at the moment. These companies could risk alienating their core customer and do nothing or they could create a GPU specific for miners, hurting the growth they've received from miners by increasing supply.
A tumbler allows someone who say, wants to move bitcoins from address 10 to address 100, to instead move their bitcoins from address 10 to a totally random address, say 57. In some other transaction, the tumbler has accepted bitcoins from someone entirely unrelated at say, address 20, who wanted to send the coins ultimately to 200 and sent these instead to another completely random address 42. It then sends the coins stored at address 42 from sender 2 to the address sender 1 originally desired, 100, and sends the coins stored at address 57 from sender 1 to the address sender 2 desired, 200.
“There will be a ramp-up time,” said Ari Paul, chief investment officer of Blocktower Capital Advisors LP. “There just isn’t a rush. The professional traders will mostly be looking to do arbitrage, between the futures and bitcoin itself. I don’t expect massive money flows right away but then I expect gradual buying from people who want passive exposure” without buying bitcoin directly.
One further benefit to bitcoin is that it is truly yours to own, and you can keep it yourself, without the need for a bank or any other intermediary, and use it just as easily as you might a credit card. This ensures that you won’t fall victim to a banking system collapse brought on by fractional reserve banking or irresponsible government and financial institution fiscal policies in general. It also ensures, however, that no one can take your money from you even on an individual basis, global financial apocalypse aside.
With something as speculative as cryptocurrency in the first place, it makes no sense to invest in this space to begin with if your only goal is to make 20% profit. It almost certainly isn’t worth the risk at that level of gain. Hence, risking losing out on the long term upside of 10X+ that you’ve calculated and come to the conclusion does exist for a gain of less than 1X or .5X in most cases makes little to no sense at all. It only makes sense if it’s essentially a guaranteed gain with no risk, and that, again, is almost certainly not the case.
It’s human nature to panic when something unexpected enters the fray, and cryptocurrency trading is no different. Experts agree that this human reflex is one major weakness in crypto trading beginners. This usually happens when the market takes an unexpected turn and the strategy that is being employed suddenly does not seem optimal for market conditions. In this state of panic, beginner investors frequently abandon their strategy if they did not expect or plan for these changes, leaving a considerable amount of value left unclaimed.
Monero (10%) – Monero is similar to Bitcoin in that it allows value exchange. However, Monero differs from Bitcoin in that it is focused on providing greater privacy to those that utilize their blockchain, using their stealth address mechanism. Anonymity is likely to become more and more important in a world where Bitcoin addresses can be traced. As more regulation starts entering the cryptocurrency space, an increasing number of individuals will gravitate towards privacy coins such as Monero, Zcash and Dash, that can mask their transaction activities.
Again, while this all seems incredibly far-fetched today for most people (but not all, as the present day European migrant crisis has made abundantly clear), it happens much more often than one might expect. A little remembered fact is that the United States itself once outlawed the possession of gold, back in 1933 with Executive Order 6102, and forced all its citizens to relinquish all gold to the United States at a fixed price of $20.67 per troy ounce.
But not everyone is convinced it’s a good idea. On Dec. 6, the Futures Industry Association -- a group of major banks, brokers and traders -- said the contracts were rushed without enough consideration of the risks. Last month, Thomas Peterffy, the billionaire chairman of Interactive Brokers Group Inc., wrote an open letter to CFTC Chairman J. Christopher Giancarlo, arguing that bitcoin’s large price swings mean its futures contracts shouldn’t be allowed on platforms that clear other derivatives.
The Times reported Wednesday that while the exact launch date of the new trading operation is not yet set, the move came after the bank's board of directors signed off on the initiative. Goldman is also set to "create its own, more flexible version of a future, known as a non-deliverable forward, which it will offer to clients," according to the report.
Market Capitalization and Daily Trading Volume – A cryptocurrency’s market capitalization is the total worth of all coins currently in circulation, and at the time of writing, the total cryptocurrency market capitalization is nearly $139 billion. High market capitalization can indicate a high value per coin. It is important to note that the daily trading volume of currencies is more important than market capitalization.
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