Bitcoin v alt balancing: my BTC v altcoin positions are balanced relative to how Bitcoin market dominance is trending, you can see this chart on CoinMarketCap. If Bitcoin market dominance is at 50% but falling, then my Bitcoin position will be at less than 40%. If Bitcoin market dominance is 50% but rising then my Bitcoin position will be over 60%. The reason I keep it ahead of the trend but never 100% of one is that BTC v altcoin market cycles change, there are times when they trade inversely and other times where they rise and fall together and as such this gives a more even growth trajectory.
A long-term investor using futures would have to buy a series of contracts to keep the position, but the futures exchange's customer fees tend to be small — as little as 50 cents for one futures contract — and the investor could stay in the market a long time before the costs exceeded those on a spot exchange, Mollet said. Brokerages like TD Ameritrade advertise commission-free futures trading, but would charge interest for margin loans, with the rate based on the size of the loan.
For instance, if two parties decide to make a bet on Donald Trump winning the election, historically, this could only be done by either word of honor or by some ad hoc legal contract. For a say, small $100 bet, it would be absolutely a non-starter to pursue legal action in the case that one of the parties decided to renege on the deal in the aftermath of the election. Normally, the reneged-upon party would simply be left in the dust without recourse.
If you feel comfortable with Coinbase and Coinbase Pro, you’re are probably ready to move on to trading in a wider variety of cryptocurrencies. If you’re looking to trade in anything beyond Bitcoin, Bitcoin Cash, Litecoin, or Ether, like Stellar, Ripple, Cardano, NEO, Dash or TRON (for example), you’ll need to add another crypto trading platform to your rounds. A site like Bittrex, Binance, Bitfinex, or Poloniex.
Psychologically, if it’s helpful, I think it may be fine to sell off some small portion of your upside if you do realize upside over time, in order to recoup your initially invested principal. I don’t think that this is necessarily the most optimal actual move to make, but do think it likely makes a huge difference psychologically, such that it makes it far easier for you to hold your remaining investment with sangfroid in the case that it ends up cratering sometime in the future.
Were I to send them a wire (as I used to), their banks demand a mountain of documentation detailing every last dollar and hold their money for upwards of half a month before ultimately releasing it to them. Naturally, this is a pain in the ass and highly inefficient, time consuming, and resource intensive for all of us. Bitcoin easily sidesteps all of these issues.
The aspect we particularly like about decentralised exchanges is that they solve the single point of failure problem and the need for third party trust. As cryptocurrencies grow in value, centralised exchanges become a bigger and bigger target for hackers. Any investor with cryptocurrency on a centralised exchange is forced to trust that it will behave properly and have the necessary security measures in place. With decentralised exchanges, these issues are removed and this is why we think they will eventually replace older centralised exchanges.
It is when the next financial crisis happens and people are locked out of their bank accounts that they will see the power of crypto and bitcoin (think Greece and Cyprus). Outside of precious metals there is no other escape from the corrupt debt based fractional reserve monetary system the world is trapped in -- Also, there are like 3 billion people in the world that are unbanked -- that alone should get someone to take 1 percent of their net worth into crypto -- the risk reward is insane. As far as the criminal activity in bitcoin LOL!!! OMG banks have committed more fraud and crimes and nothing happens to them. Under federal and state laws known as civil forfeiture, police can seize cash or property if they suspect it's tied to an illegal activity even if the property owner isn't charged with a crime -- Supreme Court has upheld this. I am sorry I do not trust governments (who in their right mind would) and am glad there is a place I can hold some of my wealth outside of their reach.
As the tech literacy of the population increases, acceptance of crypto as a legitimate store of value follows, and it boomed. Titles along the lines of ‘Bitcoin price hits new all-time high’ and ‘Ethereum price surges’ are starting to perforate the general public’s news feed. What we know for sure is that people who were once skeptical of Bitcoin and the technology behind it are slowly understanding and getting increasingly involved with crypto. As at the time of writing, the market cap of the entire crypto space is at 30.9 billion USD. It was 20 billion just four months ago. What would it be four months from now?
As a general rule, what goes up can come down, and what goes up particularly quickly is privy to come down just as quickly. This is not to say that things will come down if they go up, but merely that they can, and certainly have before. This is particularly noteworthy today, with ethereum having seen some truly wild gains this year, all the way up from $7 back in December of last year to over $350 presently — a gain of 50X in just about half a year. Again, this isn’t to say ethereum will fall, but merely that it very well might, for any host of reasons, and it’s very important to keep this fact in mind and not overextend yourself with investments you perceive to be less volatile than they truly are. I’ll get back to this more later.
There's a long list of factors people may point to in an attempt to explain this. Regulators have taken a hands-off approach to bitcoin in certain markets. Dozens of new hedge funds have launched this year to trade cryptocurrencies like bitcoin. The Nasdaq and Chicago Mercantile Exchange plan to let investors trade bitcoin futures, which may attract more professional investors.
What’s also striking is that traditionally, these sorts of ‘angel or seed’ investments in new technologies have been closed off to all but an incredibly well connected inner circle of elite high net-worth individuals and institutions. Peter Thiel, for instance, was only approached to become Facebook’s first outside investor because he was already incredibly well known within Silicon Valley for having founded and sold PayPal for over a billion dollars. In contrast, with bitcoin, a random student in Norway was able to invest just $27 and make millions.
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