These are just a few of countless twists and turns and vicissitudes our much vaunted (and much derided) bitcoin will have to endure before its long journey comes to an end, either six feet under or as an indelible fixture in our global economy. There’s no telling which way it will go, and one must come to one’s own conclusion on how much faith and conviction one chooses to place in bitcoin.
It has nothing to do with a well-thought-out investment strategy that will take into account elements such as company results or factors that may affect the stock performance. It is also impossible to pick an appropriate investment strategy without analyzing the investors’ risk tolerance, i.e. the level or amount of capital they are prepared to lose. These are just some of the many things to consider before entering the crypto market.
I would venture to say that most people have far more confidence in their ability to predict short term market movements than is actually the case. I’ve seen plenty of instances of people who have thought that they could capitalize on short term volatility on the way up, and essentially ‘buy the dips and sell the tips’, and in every single instance I can recall, this strategy eventually fails, and often in a big way. At face value, this seems to make sense. If you think you can time when the dips will occur and when they will end, and similarly when the peaks will occur and when those will end, you can definitely make more profit along the way by selling high and buying low.
Second, there are no fundamental metrics for investors to examine, making a comparison between virtual currencies both difficult and arbitrary. At best, investors can look to project partnerships and processing speed as a few noteworthy comparisons, but that should be hardly enough to decipher whether one cryptocurrency will outperform another over the long run.
There are a number of issues with this, however, and a lot of things would have to go right before this occurred. There are several cryptocurrencies, for instance, with ethereum being the most notable, that are already far larger than litecoin, and it would have to be demonstrated that there’s some reason something like ethereum couldn’t simply take the place of bitcoin, and that litecoin would have a better shot at doing so than the larger players that already exist in this space.
Bitcoin exchanges are pretty easy to deal with if you have traded stocks, but futures exchanges are alien territory for many ordinary investors and require a much deeper understanding of the issues that determine risks and returns, things like time to expiration, volatility and the day's news. Futures traders need to stay on top of the situation all the time and be ready to buy or sell on short notice.
With the advent of smart contracts made possible by the blockchain, however, this is (soon-to-be) a thing of the past. One can create a simple smart contract at effectively almost no cost that specifies in code that each party will send it $100 in bitcoin, and that upon the completion of the election process, it will either send all $200 to the party that bet on Donald Trump winning the election, or send the $200 to the party that bet on him losing the election. No ifs, ands, or buts. The code is clear, objective, and deterministic. Either the contract is fulfilled in one direction, or it is fulfilled in the other. No need to trust the other party in the bet at all, much less a third party to mediate.
Welcome to the new year. You may have noticed Bitcoin’s extraordinary take-off last year, during which a majority of cryptocurrencies experienced huge gains. What does 2018 have in store for Bitcoin and all of the other cryptocurrencies? You’re soon to learn why things might not happen as you would expect. Let’s dive into the year of the AltCoins and see how a lot of coins other than Bitcoin will take the spotlight.
For investors interested in diversifying into this space I recommend a simple strategy. First, invest only what you are willing to lose. For most this is <1% of their portfolio. Second, spend a massive amount of time understanding the space and the particular asset you are buying before making the purchase. We don’t recommend trading in and out of these assets, so it’s best if you have a strong thesis that can govern your investment decisions. This will not only help accelerate the learning process but will help create a healthier market with a better informed investor base.
While the number of companies and industries that allow cryptocurrencies to be used to pay for goods and services is constantly increasing (you can use Bitcoin to pay for some things on Expedia and Microsoft, for example), the vast majority of people who buy Bitcoin or other popular cryptocurrencies still primarily use them as long-term investments. Cryptocurrencies are a new market (Bitcoin was first introduced less than a decade ago) and therefore an extremely volatile investment. In this pricing graph from Coindesk, you can see how the price of Bitcoin has fluctuated since it first debuted almost a decade ago, down to daily changes in value.
Cardano (ADA) is a fully open-source, decentralized, public blockchain and cryptocurrency. Cardano is very similar to Ethereum, and the team wants to build on that. Cardano aims to operate a global smart-contract platform which will deliver much more advanced features compared to its competitors. Loads of existing investors are excited because Cardano is the first blockchain founded on scientific philosophy, and also the very first provably secure proof of stake algorithm.
This is just my 0.02$, as always, I can be completely wrong, and I maintain the right to contradict myself in the future. Also, for the record, this article references only my opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice if you want to. And, remember, always do your own research (DYOR).
I ended up wiring several thousand dollars to an incredibly sketchy Russian exchange, BTC-E.com, to purchase my first few bitcoins at around $1000 apiece. Before I knew it, I was addicted to constantly checking the price, and spent a full 48 hours doing nothing at the height of the November 2013 bubble doing nothing but refreshing BTC-E.com and seeing how my investments were doing.
It took us only several years to achieve the things that no one has ever managed to achieve: we’ve created a highly productive universal wealth management company able to provide principal clients with the services of the highest quality possible and possessing an exclusive set of investment products. We are currently collaborating with about 20,000 clients and opening 30-50 new investment accounts daily.
Okay — so that’s about it for investing in the dominant cryptocurrencies available today. If you want to invest in other more speculative altcoins, you’ll have to create your own wallets for them, and investigate the best and most secure solution for doing so yourself. This should generally be a good exercise in any case to determine if you meet the bare minimum requirements for responsible investment in a given altcoin.
Unfortunately, the FDIC is just as dramatically underfunded as banks are. As the FDIC itself acknowledges, it holds enough money to cover just over 1% of all the deposits it insures. In other words, if banks reneged on any more than 1% of all their deposits, the FDIC itself would also fail, and everyone would yet again be left in the dust without recourse.
You won’t always have time to buy once the price starts recovering (or to sell when the price starts dipping). With the last point in mind, sometimes cryptos can rally or correct by 10% or more in a matter of moments after a harsh dip. It can be next to impossible to buy into some rallies once the price starts recovering or to sell once it starts dropping (without a market order and some slippage at least). It is from this perspective that it can be a solid strategy to mistime the bottom rather than waiting for the price to go back up. Sure, it is more conservative to wait for a trend to be confirmed, but this method can work much better after a very harsh dip down to a key support level you think the price will rebound off of quickly.
People are getting excited about Hempcoin (THC) because it’s slowly but surely starting to re-surface again and receive some of the media’s attention that it deserves. Even though a couple of competitors recently showed up (PotCoin and CannabisCoin) – Hempcoin is actually the oldest technologies and coins – not just in the industry – but in the crypto world altogether. Hempcoin was founded back in 2014 and its sole purpose is to act as a digital currency for the Agriculture/Farming industry and naturally – the Hemp/Marijuana field.
When those mortgages were defaulted on, the artificially inflated values of the homes began to collapse, and banks were left holding assets worth far less than the amount they had lent out. As a consequence, they now had nowhere near the amount of money that customers had given them, and began experiencing liquidity crises that led to their ultimate bankruptcy and demise.
Hi, unfortunately I bought bitcoin at the peak, then it fell all the way down before I switched over to some of the Altcoins you mentioned, however I didn’t realise the time I switched over to them, that the Altcoins were at a peak and when I switched they then fell down too leading to more of a loss. I also, feel a lot of those coins have maybe had their days of 100x, 10x their gains and had more potential at the time you bought into them.
This has proved a mistake countless times throughout history. Zimbabwe is a classic example, where the Zimbabwean dollar, thanks to an incompetent government among other factors, experienced enormous levels of hyperinflation. At one point, inflation was estimated at almost 80 billionpercent in just a single month.The following image gives an idea of just how rapidly and absurdly a fiat currency can spiral out of control, once it reaches the point of no return.
To the other point, gold’s coveted status in jewelry is merely a derivative property of its perceived value, which leads to its designation as a status symbol. Without that underlying perceived value, it would command far less value in jewelry. Consequently, the question still remains about the gap between the industrial and medical value of gold and the actual value of gold as determined by the market. Where does the value in that gap come from?
Even with the greater convenience that a trust whose shares are tradable has over actual bitcoin token ownership, paying a more than 30% premium to own Bitcoin Investment Trust shares is excessive. With it increasingly apparent that bitcoin ETFs are on the horizon, you'll likely have a better opportunity in the near future from them than you'd get from Bitcoin Investment Trust.
I’m an elderly gentleman, closing in on 68 years of age. My son introduced me to Crypto in late 2012. After doing a lot of researching Btc I felt strongly that It had a lot of growth and potential ahead of it. So my son and I built my 1st rig and I started mining in January 2013, pulled $5,000 from my IRA and bought Btc at $13.44 and have never looked back since. The sweetest sound that I’ve ever heard was the clink of my 1st mined Bitcoin way back when. That was as satisfying a note as there ever was on any musical scale. Nothing but happy days ahead since. Don’t get me wrong, there have been bumps in this Crypto highway, the demise of the Silk Road, Mt Gox, DAO hack to name a few but as a HOLDer (holding on for the long duration) not a HODLer (hanging on for dear life) and not day trading, has rewarded me with quite a decent profit. It just takes a lot of patience (Sisu) and doing your research with due diligence. I have since invested in Ethereum (Dec 2015), Monero (Jan 2016) and lately Omisego (July 2017) all purchased from some of my profits from Btc to go along with my newly acquired free Bch and recently free Omg. I’m currently operating 3 rigs equipped with 6 gpus each. 2 mining Eth and 1 Monero for now, all of which will be re-evaluated after Metropolis kicks in to see which direction I go from here. So I ‘m back to doing more research in order to help with my next moves but I’ll always be a strong believer in Ethereum which is where I’ve made my money so far. HOLDing on to the rest for now. Btc $5,000-10,000, Eth $2,500- 5,000, Monero $200-400, Omg $100-1,000 no one ever really knows but MY research says yes and so far MY research has not proven me wrong. Bought Btc at $13.44, Eth at .80, Monero at .48, Omg at .43 Bch for free. No where to go but up for me. Just biding my time. It’s taken me over 4 and a half years to get here but I’ve made over $4,000,000 so far with just my original investment plus the cost of my rigs and I’m still sitting on a lot more. Taking a position and HOLDing is where the real profit is and it isn’t going to happen overnight. So if you want aggravation and ulcers go ahead and day trade, try and beat the Market I wish you luck but the real money comes with Research, HOLDing and Patience. Hope this advice helps because in the long run what it all comes down to, its just Eths, You and Me hopefully making the right decisions.
The moment you look at the amount of support Tron has been receiving lately, you immediately realize it’s not just yet another blockchain-based platform. Tron’s technology aims to deploy world’s largest FREE content entertainment system. The platform allows anyone to store and own data, and to freely publish their content. Its app “Peiwo” already gathers 10 million enthusiasts and is on the road to become the world’s first TRON-compatible entertainment app. This technology revolves around the following ideology: All contributions on the network should be of equal quantitative value, the Internet should be decentralized, and data creators should have the absolute ownership of the data. It’s important to realise though that Tron has been pushed like hell by an ambitious marketing department… I have not yet decided if this is a cryptocurrency which will survive but, for a one year hold, it seems a safe bet.
No. 1: U.S. regulators recently have been constructive about crypto: Regulators across the world have realized that cryptocurrencies are here to stay. Still, there are numerous issues to negotiate: 1) Identifying players who have been defrauding investors with phony initial coin offerings (ICOs). 2) Defining the differences between utility tokens and security tokens; 3) Working with crypto businesses to create appropriate regulations to protect investors without hurting innovation. Overall, the industry and regulators are heading in the right direction, though it could take a few more years before they develop common standards.