When buying altcoins, I always keep an eye on Bitcoin’s value, and over time I’ve made some important observations with regard to this. There are almost never three green days in row, and when the market is in the red, Bitcoin tends to decline less then altcoins. Once this happens, your order will be filled and you’ll get your 3% discount, since the altcoin tends to drop harder than Bitcoin.
Crypto tokens are essentially startup companies, therefore when reviewing blockchain infrastructure projects, look for the ones that control their own intellectual property, not the ones which are clones of some other blockchain. When looking at blockchain based projects, look for the ones that are solving a real market problem, have a real business plan, and an experienced team behind them. Avoid tokens which pay people to use them or tokens which look like a marketing operation without substance or tokens which just happen to be listed by some exchange for no reason. And for god sake don’t refresh coinmarketcap.com every few minutes.
A cryptocurrency that aspires to become part of the mainstream financial system may have to satisfy widely divergent criteria. It would need to be mathematically complex (to avoid fraud and hacker attacks) but easy for consumers to understand; decentralized but with adequate consumer safeguards and protection; and preserve user anonymity without being a conduit for tax evasion, money laundering and other nefarious activities. Since these are formidable criteria to satisfy, is it possible that the most popular cryptocurrency in a few years’ time could have attributes that fall in between heavily-regulated fiat currencies and today’s cryptocurrencies? While that possibility looks remote, there is little doubt that as the leading cryptocurrency at present, Bitcoin’s success (or lack thereof) in dealing with the challenges it faces may determine the fortunes of other cryptocurrencies in the years ahead.
I feel compelled to spread the word; cryptocurrency is an amazing chance to make a fuck ton of money with a relatively small investment. The problem is, the window is closing. Many coins have already doubled in value many many times, the more a coin doubles in value, the harder it gets for it to double again and you to make a tidy 100% on your portfolio…
You can trade immediately as much as you want by sending a wire (only applicable for US customers) to your account following their deposit instructions. There’s a $10 fee for this that GDAX charges, on top of whatever your bank charges to send wire transactions. This is the fastest method to deposit any amount of money you want and trade immediately with no limits, but not the cheapest.
Taking profit in Bitcoin means that you sell your altcoins for Bitcoin, and in contrast to using the sum to buy other altcoins for rebalancing purposes, you keep the value in Bitcoin. This is a necessary precaution to protect yourself from a possible correction or crash. As the past 2 years have clearly indicated, Bitcoin tends to decline in value less than altcoins, and as such taking profits in Bitcoin shields your portfolio from market crashes better than any altcoin can.
The best thing you can do to minimize risk and invest responsibly is to do your research. Look into different wallets and exchanges. Find trusted sources to answer your questions. If you need some guidance on how to break into the market, find a firm like IBI or International Blockchain Consulting to help you navigate the constantly fluctuating market.
All in all, I think the same factors I wrote about in my last article are still true now, and my overall outlook on the crypto market is still positive. Assuming you agree, and that you have some available funds to throw at the market and forget about for the next several years, here are my investment strategy principles laid out from top to bottom according to their importance.
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.
Forex Investment Service is a new, steadily developing capital management and online money investment service provider. We make investments in manufacturing and production, technologies, communications and energy. Due to the professionalism of our employees and the introduction of cutting-edge stock market techniques, we manage to provide top-quality service at minimal costs. Our program is created for those who want to improve their financial condition, but do not have economic education and are not financial experts. Our professional expertise allows us to offer you secure returns on investments. Our key to success is much simpler than one may think it to be - we believe that the key factors in our money investment business are the creation of a team comprising only the best specialists and the stimulation of partnership spirit both within the team and between us and our clientele. We have succeeded in creating an exclusive team of experienced professionals - funds investing perfectionists whose only aim is the best possible result and absolute leadership in the market.
Exchanges have inbuilt online wallets to keep the cryptocurrency you purchased. However, for those who heard of the Mt. Gox hack, you might feel uneasy to put on an exchange. If you do not wish to keep your crypto holdings on the exchange, you have the option to either use a paper wallet service like myetherwallet.com or spend 99 USD on a hardware wallet like KeepKey. Both serve the purpose of removing platform risk, at the cost of taking up the responsibility of keeping your cryptocurrency safe.
When too many people pump and dump these coins over and over, they lose their power. For example, if a coin goes up and down so much, then fewer investors are likely to hop on board once it starts to go up again. They might think, “This coin goes up, but it always comes down. I’m not going to risk it by investing.” This is actually harmful to a coin when it skyrockets and crashes, and this is why you should be wary in 2018 where you put your money.
Created by Charlie Lee, a former Google engineer, Litecoin is an open-source payment network that operates on a global scale. It is not controlled by any centralized power, and it uses the “scrypt” as proof-of-work. It is similar to Bitcoin but has the advantage of offering a faster rate of generation and therefore faster transactions. This is one of the main reasons why its enthusiasts continue to invest or hold onto the coin even after finding out that its founder sold his stack.
NEW YORK, April 2, 2018 /PRNewswire/ -- Grayscale Investments, LLC, in its role as agent (the "Agent") of the shareholders of record as of December 4, 2017 (the "Record Date Shareholders") of Bitcoin Investment Trust (OTCQX: GBTC) (the "Trust"), announced today that, on behalf of the Record Date Shareholders, it has completed the liquidation of approximately 172,244 Bitcoin Gold tokens, the rights to which were distributed to the Record Date Shareholders on December 4, 2017.
Bitcoin is a decentralized currency that uses peer-to-peer technology, which enables all functions such as currency issuance, transaction processing and verification to be carried out collectively by the network. While this decentralization renders Bitcoin free from government manipulation or interference, the flipside is that there is no central authority to ensure that things run smoothly or to back the value of a Bitcoin. Bitcoins are created digitally through a “mining” process that requires powerful computers to solve complex algorithms and crunch numbers. They are currently created at the rate of 25 Bitcoins every 10 minutes and will be capped at 21 million, a level that is expected to be reached in 2140.
Bitcoin fundamentally changes this equation. Unlike even gold, bitcoin is nigh impossible, when stored correctly, for anyone to confiscate without consent. The addresses at which bitcoin values are stored are protected by ‘private keys’, which can be thought of as a password or a key to a lockbox. Without this private key, it is generally impossible to steal the bitcoins held at the public address to which the private key corresponds. So long as you keep this private key secure, your bitcoins are secure.
If someone steals your Trezor, they won’t be able to find your coins either, as they’re protected by a PIN that only you know (plus a password if you want to use that feature I mentioned above). You can also recover the coins yourself with the recovery seed the Trezor will give you the first time you use it, which you should store in a super safe location like a safe deposit box somewhere. If you don’t use utilize the password feature, however, keep in mind that anyone who discovers this recovery seed instantly has access to all your coins, and all your other forms of security are for naught. If you enable the password feature, however, they will need your password as well as the recovery seed in able to access your cryptocurrency, which makes it significantly more secure.
Bitcoin is also dramatically cheaper to use than almost any other form of international money transfer today. Already, for this use case alone, it proves its worth over current dominant international money transfer solutions, such as Western Union. I can transfer money to anyone in the world, in any amount, and have them receive it without moving a finger in just a few minutes. For this privilege, I have to pay just a few cents, no matter how much I’m sending, instead of a huge proportional percentage, with hefty minimum fees and surcharges.
Always create a profit/sell ratio for Bitcoin, because most of your profits from altcoins will first be turned into Bitcoin. Use the initial price you paid for Bitcoin for this, because if you use the price of Bitcoin when you took profits, you’re misleading yourself and increasing your risk exposure. This is because the price of Bitcoin has likely increased as well during the time it took for your altcoin value to increase.
The simplest example is flipping a coin. This will yield heads 50% of the time, and tails 50% of the time. Expected value of betting on the coin yielding heads, hence, is 0. This is because in any one given flip, the coin has exactly a 50% chance of coming up heads. Hence, if you bet $100 on the coin coming up heads an infinite number of times, your expected gain, or value, from such an action, is to be $0.
The biggest risk when investing and trading is you: your emotions, biases, and beliefs. This strategy tries to remove the “you” as much as possible from the equation. This article accurately depicts the biases and shortcomings we all have. The markets are not rational; almost everyone lets their emotions (such as FOMO and panic-selling) get the best of them. In the end, big money will always beat you if you don’t come to terms with these cold hard truths.
While the number of merchants who accept cryptocurrencies has steadily increased, they are still very much in the minority. For cryptocurrencies to become more widely used, they have to first gain widespread acceptance among consumers. However, their relative complexity compared to conventional currencies will likely deter most people, except for the technologically adept.
As the Chicago Board Options Exchange launched cash-settled Bitcoin futures trading on December 11, and their rivals Chicago Mercantile Exchange followed suit six day later, prices of both BTC derivatives and the coin itself surged amid an unprecedented wave of publicity. Each Cboe contract was for one Bitcoin, while each CME futures represented five. Both enabled traders to take either long (agreement to buy) or short (agreement to sell) positions, meaning that investors could bet on both increase and decline of Bitcoin price.
To buy/sell on Coinbase or GDAX, you need no wallet, as Coinbase/GDAX will keep your coins for you. You’ll want to enable Google Authenticator for two factor authentication and keep your passwords and your phone incredibly secure, however, as if someone hacks your account, all your money is gone for good with no recourse. This happens a lot. Use a super strong password that you have not used elsewhere and that no one knows and that you won’t forget.
Update 1st October 2018: The cryptocurrency market has been volatile as ever over the last 6 months. Unless you are a skilled trader, it is harder to make money in a bear market than in a bull market – and we have been in a bear market for some time now. Personally, I have stopped trading and I am now focussing on growing my portfolio passively using a cryptocurrency trading bot – you can find out more about this here. If you are new to crypto, read on!
The appeal for many is the fact that Bitcoin is decentralized, meaning no specific group or governing body has control over it. Instead, it is secured by advanced cryptography, a set of military-grade encryptions, and regulated by a network called the Blockchain. The Blockchain acts as a digital ledger, confirming buyer/seller funds and establishing the order in which transactions take place.
Virtual currencies, including bitcoin, experience significant price volatility. Fluctuations in the underlying virtual currency's value between the time you place a trade for a virtual currency futures contract and the time you attempt to liquidate it will affect the value of your futures contract and the potential profit and losses related to it. Investors must be very cautious and monitor any investment that they make.