Crypto Investing

Everything You Need to Know About Metaverse

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Ever since Mark Zuckerberg announced the name change of Facebook to Meta, everyone in the world has a new buzzword. 

Mark announced earlier in 2021 that the future of Facebook will be in the metaverse, and now all the companies are in the metaverse business and we have so many experts on metaverse too. 

But what is this Metaverse and why does it even matter? Should you worry about it if this metaverse is the next chapter of the internet? 

But one thing’s for sure, you should not be standing flat-footed when the wave of metaverse catches you on. Metaverse is going to fuse cryptocurrency and embed it with your online world.  

So scroll down to read further about this metaverse and what does it has to offer that can assist you in managing your cryptoportfolio,

What is Metaverse? 

At its core, the metaverse is an engulfed internet, a social sphere where people can meet with one another to assist in avatar personalization and allow them to be more present than just a simple video call. 

This metaverse is synchronous and it feels like real life compared to the present-day social media which is feed-based. You will not catch up on what others are doing, you can meet them in real life. 

This experience can be persistent just like the world around us. And when you get back to your metaverse space, you will not have to start from scratch. 

Just like your real life, it will have all kinds of things that you love to do with your company. Of course, you can also go to your favorite concerts and other events. Plus, you can play games, work, shop, date, and hang out. It is going to integrate cryptocurrency and you can even manage your cryptoportfolio using it.  

Where is This Metaverse? 

This metaverse does not exist at the moment. But we do have some predecessors to this metaverse that are currently in place and people love using them. These predecessors are, 

Virtual reality

People often confuse virtual reality or VR with the metaverse. They both provide you with a feeling of an embodiment so it is understandable that people often confuse them. If you wear the headset, this embodied feeling becomes much more real. You are not controlling any avatar with your keyboard or gamepad.

Augmented reality, virtual reality, and other capital computing forms will be part of this metaverse, it will work across multiple devices. It will not be something that you can dive in and out of anytime you want. Instead, it will be something that will remain with you throughout the day on your phone, with your AR glasses, or your VR headsets.

Roblox and Fortnite

Both games are considered to be the early incarnations of this metaverse. Both these games do check a couple of boxes in comparison with the metaverse. Moreover, both games are social spheres, and they have avatars with in-world economies. 

There are massive live events, and they both are way more than just gaming. You cannot take your Fortnite avatar to your Microsoft Teams meetings, and you are not going to find any business outside Roblox that accepts Robux payments.  

Some of these games already allow you to trade in cryptocurrency. Therefore, they will become an obvious source for cryptoportfolio management in the future. 

Metaverse Stocks

In the latest stock market news, you might have heard about those metaverse stocks. These metaverse stocks are the companies with a business that brings metaverse more increasingly to real life. 

Metaverse is a virtual space where people can interact with one another seamlessly for numerous reasons. And companies that are making these technologies more real and accessible for people are metaverse stocks. 

The best metaverse stocks in the market today are,

  • Facebook Inc.
  • Unity Software Inc. 
  • Autodesk Inc. 
  • Amazon Inc.
  • Microsoft Corp.
  • Roblox Corp.
  • Nvidia Corp. 

Metaverse Gaming

Metaverse gaming will not be something like Spielberg’s dystopian sci-fi Ready Player One based on Ernest Cline’s book. But it is an online area where decentralized finance or DeFi fuses cryptocurrencies. 

These games are virtual worlds that are driven by artificial intelligence. There are various products already available on the market where people can interact with one another, But metaverse takes it to the next level. In these worlds, players will exist in their avatars and participate in different events across the globe. 

NFTs

Non-fungible tokens are digital content linked to the blockchain, and they underpin cryptocurrencies like ethereum and bitcoin. But these crypto are fungible. It means that you can replace them or exchange them with another identical one with the same value, just like a dollar bill. 

But non-fungible tokens are non-interchangeable and can be associated with easily reproducible items like audio, videos, photos, or other media to provide proof of ownership. These are useful for video games, digital collectibles, music, and artwork. 

Final Words – Why Does It All Matter? 

More and more people are rushing to the metaverse by adopting social gaming platforms with avatars. Plus, the pandemic has allowed them to explore new forms of real-time interaction. 

All major tech giants are looking to explore the next big thing after smartphones. And while they explore the new trends, some other questions need to be answered. 

  • Who will be the new gatekeepers? 
  • What about the safety, privacy, the mental health of the users? 
  • And who will pay for it all? 

This metaverse will allow people to interact with one another using their avatars. They will participate in different events and even interact with distant friends and family and log in with coworkers. The metaverse might be decades away, but the foundations for the next chapter of the internet have been laid. Many of these online games are already accepting cryptocurrency transactions and you can manage your cryptoportfolio using these games pretty effectively even if it is pretty limited.

Follow these personal finance experts if you’re curious about crypto

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There’s a lot of bad crypto advice out there.

For every even-keeled crypto investor, there are five meme accounts imploring you to put all of your money into Bitcoin, and others trying to convince their followers that some new altcoin is the crypto of the future.

The reality is a bit more nuanced, experts say. “Optimal investing is very simple and boring,” says Jeremy Schneider, the creator behind Personal Finance Club on Instagram. “Today this crypto craze and meme stocks are making headline news, and for young investors, who [are new] to investing, they’re trying to figure out how to navigate that.”

Financial advisors and experts we’ve talked with about crypto investing warn people against allocating too much of their portfolio to crypto, or not understanding the risks. Make sure investing in cryptocurrency doesn’t hold you back from saving and maintaining an emergency fund, paying off credit card and other high-interest debt, and saving for retirement with a more conventional investment strategy.

1. Jeremy Schneider, Personal Finance Club

Schneider has been familiar with Bitcoin since its inception.

“I remember the day in 2010 when I learned about Bitcoin. For about 30 minutes I pondered buying some Bitcoin and decided there was no way it could ever reach $1,” says Schneider. Bitcoin, of course, blew past $1 on its way to a high of more than $60,000 in April 2021; it currently sits just under $40,000 after a tumultuous May.

Still, Schneider warns against letting investing FOMO pressure you into making your decisions. Instead, Schneider constantly reminds his followers of two simple rules for building wealth: live below your means and invest early and often (preferably in index funds).

Schneider says his net worth is about $4.1 million. Of that, he has about $2,000 in cryptocurrencies — far less than even 1%. For those interested in playing around in the space, Schneider recommends making a similarly small investment compared to your net worth.

“At its core, I don’t see it as a productive asset. If you buy an index fund or real estate, you get dividends or rental income, whereas if you get crypto you’re basically just hoping someone pays you more money for it in the future,” says Schneider. “I can imagine a world 30 years from now where crypto could go to zero, or a different coin emerges, whatever. But I can’t imagine a world in 30 years where index funds and real estate don’t make you very wealthy.”

2. Jully-Alma Taveras, Investing Latina

Jully-Alma Taveras, who goes by “Investing Latina” online, thinks there’s a great opportunity to diversify your holdings with a cryptocurrency asset.

“It’s something people should start learning more about, at the very least,” says Taveras. “It’s not something anyone should be putting all of their money or fortunes into, but I think it’s something that we should include in a diversified portfolio.”

As a new and uncertain new investment asset, Taveras recommends keeping your allocation to 1% of your total assets. She’s also sticking to the two largest cryptos for now.

“I have Bitcoin and Ethereum, and that’s as far as I’ve gone in my personal portfolio,” says Taveras.

Comparing crypto to the conventional stock market misses the mark, Taveras says. “It’s not the stock market. It’s a completely different world,” says Taveras. And the new world definitely comes with uncertainties. “The stock market has been around for over 100 years, and blockchain technology has only been around for a little over a decade.”

3. Kiana Danial, Invest Diva

Kiana Danial started tracking crypto markets in 2016 but didn’t actually start investing until the end of 2018. Danial, who runs an account called @InvestDiva on Instagram, recommends giving plenty of thought to your investing goals before buying cryptocurrency.

“Are you buying it because you want a lottery ticket to make a million dollars in a year?” Danial asks. If that’s the case, “then you might want to reconsider your investment strategy because some people have got lucky, but a majority of people have got burned,” Danial told us recently.

But if you’ve done your research and are OK with the risk, Danial says it might make sense for investors who still have a lot of time before retirement to allocate as much as 20% of their portfolio to crypto. But “please don’t invest in cryptocurrencies based on trends on Twitter.”

4. Marc Russell, Betterwallet

As the creator of @BetterWallet on Instagram, Marc Russell’s investing philosophy is to “stick to the basics,” he says. “Long-term, boring strategies that work every single time is really where I focus my attention.” However, Russell acknowledges crypto may have a place in your longer-term strategy.

“I think a lot about asset allocation, and just making sure that you have the appropriate mix of stocks, bonds, and alternatives, which is where cryptocurrencies kind of fall under for the simple, long-term investor,” says Russell. For educated investors, Russell recommends allocating about 5% to cryptocurrency but would caution going beyond 10%.

Like others, Russell warns of getting swept up in the headlines and the emotional rush of getting in on crypto without doing proper diligence. “People don’t understand the other side of the spectrum, where you can make 50% on your investment, but you can also lose 50%. They think you’re either making 50% or you’re making 30%, and it doesn’t work that way,” says Russell. But for those who are educated on the market, and know what’s at risk, “it’s an excellent diversifier because it’s not correlated to the [stock] market for the most part. And when you’re looking for something to diversify you, that’s essentially what you’re looking for,” says Russel.

5. Humphrey Yang, Humphrey Talks

Humphrey Yang’s personal finance advice has gone viral on TikTok and YouTube. He’s a strong believer in index funds, “but most people don’t want to do that because it’s too passive and not fun, it’s a little bit boring,” says Yang. “But that is honestly the best advice I can give any average investor, is just put your money in an index fund and check it once per year.”

As an experienced investor, Yang considers cryptocurrency a speculative investment. He likes to put between 5% and 15% of his total portfolio there, an amount he says limits his exposure on days when it’s falling. He also sticks with two of the better-known cryptocurrencies out there.

“I don’t really believe in too many altcoins,” says Yang. “I do Bitcoin and Ethereum because they’re the two most stable ones and have the most history.”

6. Tori Dunlap, Her First 100K

Tori Dunlap has had her doubts about crypto.

“It still feels very speculative,” says Her First $100K creator Dunlap, who saved her first $100,000 by age 25 and shares personal finance advice on TikTok and Instagram. But she also recognizes the big interest in crypto investing, “even if it’s just a small amount of money.”

But when people ask her about it, she recommends following the 5% rule. “You don’t want to contribute more than 5% of your portfolio toward these things that haven’t been proven over time,” says Dunlap. “If you are investing a certain amount of money, you should maybe be OK losing that amount of money.”

7. A’Shira Nelson, Savvy Girl Money

A’Shira Nelson of Savvy Girl Money on Instagram is the ultimate retirement-minded investor.

“My strategy is to max out my retirement accounts. For the most part, I only invest in low-cost index funds,” says Nelson. “I know that I can see history on that. I can read books on that.”

That’s one of the biggest deterrents for her from investing in cryptocurrency — a lack of history and study on the space. But she’s quick to remind her followers that there are many other types of investments you can make outside of the stock market and cryptocurrency if you want diversification.

“I do a lot of real estates investing,” says Nelson. “My husband helped me spice up my portfolio with real estate, and it’s an easy way to have fun with it, too.”

4 Personal finance tips every entrepreneur should know

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Being a business visionary is significantly really intense — both actually and intellectually — than the vast majority think. Most of the business people work definitely over 40 hours every week, and most don’t get close to as much cash flow as they would in case they were working a corporate occupation in a similar field.

Business people are additionally liable for the entirety of their monetary commitments outside of the business, including protection, investment funds, and retirement. While it tends to be not difficult to remain laser-zeroed in on your business, plan ahead and plan appropriately.

In the long run, retirement will deal with you directly, and in case you’re not ready, it very well may be a severe shock. There are additionally shocks that you could confront while maintaining your business that you should be ready for. Being ready for the direst outcome imaginable is consistently the best methodology.

The enterprising way can be fulfilling, and it can likewise be amazingly upsetting and brimming with difficulties. Here are some individual accounting tips that will assist you with exploring through the pioneering travel and set you up for the future, just as ensure you en route.

1. Make an individual month to month financial plan

Be focused with regard to your funds, particularly when you are beginning a business. The less fatty you can run both your business and your own life, the more cash you can keep on moving once again into the business and fuel its development.

Numerous business people center around looking effective instead of becoming fruitful. Keep away from huge homes, extravagant vehicles, costly feasting, and other superfluous costs.

Make a financial plan containing the minimum essentials alongside some extra for diversion (you need to get out and have a ball once in a while!) When you have a set arrangement and stick to it, you put yourself and your business in a good position.

2. Put resources into quality protection items

At the point when you work for yourself, that leaves all external obligations on your shoulders, and one of the most significant is protection. Try not to attempt to pursue faster routes with regards to ensuring yourself and your business.

Get a solid medical coverage strategy that covers you and your family, and make certain to have life and inability protection set up. It is in every case better to plan for the absolute worst circumstances instead of attempt to save a couple of dollars.

One thing numerous business people disregard is business protection. It doesn’t make any difference in the event that you have a worldwide business with a large number of workers and you are selling a great many actual items a month, or you are a solopreneur. Ensure yourself with a business protection strategy that covers obligation for whatever it is you sell.

3. Assign cash towards a just-in-case account month to month

Most entrepreneurs don’t have a hold set aside that would permit them to work for a while without income coming in. The Covid-19 circumstance constrained a ton of organizations to close for great since they couldn’t keep the lights on.

Put cash into a business bank account every month. Ideally, you won’t ever need to contact these assets, and they will keep on working over the long haul. In any case, in the disastrous occasion that you need to keep afloat for a couple of months during a plunge, it will assist you with keeping afloat.

It’s a smart thought to have somewhere around 90 days of functional costs set aside to cover everything, accepting there will be no approaching income. On the off chance that you can, a half year of stores is great.

4. Stay away from individual obligation no matter what

To fabricate and maintain a fruitful business, you need to dispose of whatever number distressing circumstances as would be prudent. This permits you to zero in additional on the main jobs. One of the greatest genuine reasons for pressure includes obligation.

Piles of individual obligation — from charge cards to mind and home credits — can pull your concentrate away from your business. Keep away from obligation no matter what, and on the off chance that you totally should put a few costs on a charge card, do all that could be within reach to take care of it rapidly.

Numerous business visionaries attempt to maintain an unrealistic lifestyle, and in the event that they just cut back in the beginning phases and zeroed in on building an effective business, the cash and independence from the rat race would come quicker.

Smart Exit Strategy for cryptocurrency trading

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The courses are going crazy, maybe now is the time to sell the jackpot. But getting out of the bitcoin game, ether, ripple, and the like, you have to prepare in advance.

Having a wallet filled with cryptocurrency can be rewarding for the ego, but to make purchases, these funds must also be repatriated in hard and hard currency, in internationally accepted currencies (euros, dollars, or others).

Having hundreds of thousands of euros in cryptocurrency is therefore one thing. It is quite another to own those funds. There are, however, services to make a conversion. But here again, if for small sums the procedure is relatively simple, for large investors, the problem can turn out to be more complex.

cryptocurrency

Why leave the game?

Bitcoin is having a hard time. The cryptocurrency is experiencing one of the largest drops in its history with a drop in value of around 70% since its record level in December 2017. At the time, a bitcoin could be worth 20,000 dollars against only 6,000. currently. This tumble may motivate currency owners to retire.

Especially since the turmoil is inherent in the very existence of bitcoin. In November 2013, the currency was already experiencing one of its worst days. As Reddit points out, the face value was lower back then, but the coin’s price drop was still around 87%.

Still, this roller coaster may have got the better of your recklessness. In this case, there is an adage that a portfolio owner should always keep in mind: Buy low and sell high. It is, therefore, in principle, not useful to resell your assets in a low wave. Better to wait for a comeback. Unless you decide to play off the beat. In this case, it is recommended to have strong kidneys.

Services that exchange bitcoins/euros

Once the decision is made, it is advisable to go through a third-party service to transfer your assets to a traditional currency. But like a foreign currency, it is particularly important to spot the exchange rates and thus determine which will be the preferential rate to use. The “exchange rate” may indeed vary depending on platforms such as Bitfinex, Poloniex, Bitstamp, Coinbase, Binance, CEXio, Kraken, Cryptopia, Bittrex, or GateCoin.

Subsequently, services such as Paymium, BitStamp, Bitfinex, Coinbase, or Kraken allow you to transfer your cryptocurrencies to a bank account (for which you will have to provide the identifiers). There is no shortage of this type of “office” on the Web.

Note that the platforms may impose a delay of several days between the exchange request and the actual transfer to verify the identity of the wallet holder and account details.

What about taxes, Mo Money Mo Problems?

In principle, if your payments from the bitcoin wallet are important about your regular resources, this will arouse the curiosity of your bank. In this case, she will seek to know the origin of these funds. It is therefore mandatory to be able to justify each profit recorded. Still, you need to make your operations transparent.

As for taxes, the question is a bit more complex. As a matter of principle, the tax authorities should be notified when a person realizes a capital gain from one year to the next. Each taxpayer is therefore

cryptocurrency

required to declare the money earned from the time a purchase was made with or transferred in conventional currencies (no declaration is necessary if you are keeping your wallet).

Bitcoin as a coin

If you are not a cryptocurrency professional and the income generated is unusual, these gains will be considered non-trading profits (BNC). In this case, it is a question of a tax of around 34% for a threshold below 33,200 euros of annual turnover.

On the other hand, if you regularly reinvest in bitcoin, you change the regime. The gains are then subject to the industrial and commercial profits (BIC) regime. It may then be interesting to go through the micro-enterprise regime to take advantage of a ceiling of 82,800 euros per year for an average tax rate of around 15%.

Practice “Money Management”

Money Management is the art of managing your capital while controlling risks. It concerns both professionals and individuals. The primary objective of the trader is thus to maximize and protect his gains while limiting his losses. Protecting gains and limiting losses involves changing your strategy over time to optimize the risk-return ratio, that is, the ratio between the expected return and the risk represented should not be too out of balance. It’s a bit overwhelming, but having to keep an excellent logbook, paper, or chart, where you record all your trades is a good way to keep an overview of the evolution of your portfolio and your positions. Thanks to this data, you will be able to understand several things: Which trading profile suits you best? What are your strengths and weaknesses? How to build and improve your trading strategy.

Opt for a trading strategy

Training in bitcoin trading strategies is an essential prerequisite. Your strategy will guide you in three areas: entering a trade correctly, monitoring it, and exiting cleanly. Here are three different possibilities for investing in bitcoin. It’s up to you to choose the one that best suits your profile and your character.

Day trading

Day trading is an investment strategy that involves taking positions and closing them on the same day. This method takes time to quickly seize opportunities. Be careful, however, to control the leverage effect. Leverage refers to the use of debt to increase investment capacity.

Swing trading

Swing trading is also a trading technique that is perfectly adaptable to bitcoin trading. Unlike day trading, which takes a very short-term approach, this method has a rather medium-term horizon. It allows traders to spend less time in a day trading and focus on variables. Traders who prefer swing trading often use technical analysis to anticipate future price movements.

Bitcoin scalping

This technique is even shorter than day trading. We also often speak of “micro-trading”. It is about doing a lot of back and forth between buying and selling on the same day. The large variations in the price of cryptocurrencies and bitcoin make it possible to resort to scalping quite easily. But, be careful, it is important to master the technique.

Analyze the markets

Once your method is set up and your account is opened, verified, and credited, the analysis begins. To make your investment choices, you can then favor the method of technical analysis or that of fundamental analysis. Or combine the two.

The basis of technical analysis is the study of charts to determine the ideal time to buy or sell. Users of technical analysis seek to establish trends by drawing support or resistance lines. The analysis of the past behavior of the curve also allows conclusions to be drawn in the technical analysis.

Fundamental analysis takes the external environment much more into account and will consider the asset concerned in its global environment. When you decide to invest in the dollar after intervention by the European Central Bank, you are doing fundamental analysis. The moment external variables enter into your investment choice, you are in fundamental analysis. This also applies very much to bitcoin.

A tip: keep track

Despite these details, it is important to keep in mind that you may need to be able to justify your winnings. So be sure to keep the traces, evidence as you move forward to demonstrate the origin of the gains. By being transparent, the tax services will be better able to advise and support you.

Crypto Risk management / when and how to take profit?

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The market for digital assets is still young, so volatility is a natural part of this market. Before wanting to enter the game for the first time, it is necessary to take into account that this market is prone to irrational phenomena.

The market for digital assets is still young, so volatility is a natural part of this market. Before wanting to enter the game for the first time, it is necessary to take into account that this market is prone to irrational phenomena.

Diversification is a key part of risk management, but is it really important to be exposed to a variety of assets and Cryptocurrencies?

The answer is yes, it is worth diversifying investments to mitigate risk.

Crypto Risk


Trading cryptocurrencies using a spread betting or CFD trading account can be much safer than investing directly in crypto through a digital wallet for several reasons.

When you own cryptocurrencies, you are at the mercy of price swings, which can be sudden and significantly change the value of your investment. You will also have to open a digital wallet, which can be difficult to set up and manage and weigh the risks of possible cyberattacks on the cryptocurrency exchange.

However, when you trade cryptocurrencies through CFDs or spread betting you will have access to the same risk management tools as when you trade any of our other major assets. This can help you enjoy the same market opportunities, with less exposure to risk.

The rules of the risks associated with trading cryptocurrencies are not impossible to follow. In this article, we will talk about risk trading and how to manage your cryptocurrencies safely.

Risk refers to the probability that a negative event will occur in your activities, an event that is contrary to the results you had anticipated. Risk is an integral part of cryptocurrency trading It is the possibility of an unwanted result during trading, which translates into losses. For example, a 50% risk on a short position simply means that there is a 50% chance that the price of bitcoin will go up, causing you to lose.

In this article, we will teach you the simple rules that you must follow when managing risk in cryptocurrency trading.

Risk Types

The world of cryptocurrency trading is vulnerable to four main types of financial risks:

Credit risk

This risk affects cryptocurrency projects. It is the probability that the parties behind the cryptocurrency project will not meet their due obligations. Credit risk is mainly attributed to theft and fraud in the cryptocurrency market. 

Legal risk

Legal risk refers to the probability that a negative event-related to regulatory standards will occur. For example, the prohibition of cryptocurrency trading in a certain country. A practical example of legal risk is when the states of Texas and North Carolina issued a cease and desist order for the Bitconnect cryptocurrency exchange due to suspected fraud.

Liquidity risk

In cryptocurrency trading, liquidity risk refers to the possibility that a trader cannot convert his entire position to a fiat currency (USD, YEN, GBP) that can be used for daily expenses.

Market risk

Market risk refers to the possibility of currency prices going up or down against a position you have opened.

Operational risk

Operational risk is the possibility that a trader cannot trade, deposit or even withdraw money from their cryptocurrency portfolio.

Main Risk Management Strategies

The general rule of thumb in cryptocurrency trading is: “don’t risk more than you can afford to lose.” Given the severity of risk in cryptocurrency trading, we normally recommend traders not use more than 10% of their monthly budget or income. Also, it is not advisable to use borrowed money for trading, as this puts traders in a position of credit risk.

Risk management strategies can be classified into three categories: risk/reward ratio, position size, and stop loss and take profits.

1. Position size

The size of the position dictates the number of coins or cryptocurrency tokens that a trader is willing to buy. The possibility of making big profits from cryptocurrency trading tempts traders to invest 30%, 50%, or even 100% of their trading capital. However, this is a disruptive move that results in serious financial risks. The rule of thumb is: never put all your eggs in the same basket. Here are three ways to determine position size.

Entry price vs. the amount to risk

This approach considers two different quantities. The first is the money you are willing to invest in each operation. Traders should consider this amount as the size of each new position they open, regardless of its type. The second represents the risk money, that is, the money that you can lose if the operation fails.

The entry price is calculated in this way:

A = ((Stack size x Risk per trade) / (Entry price – Stop Loss)) x Entry price

Crypto Risk

Let’s say we want to buy BTC with USD with a target of $ 13,000. Our parameters would be:

Stack size: $ 5,000

Risk per operation: 2%

Entry price: $ 11,500

Stop Loss: $ 10,500

Our entry price would be:

A = ((5,000 x 0.02) / (11,500 – 10,500)) * 11,500 = 1,150

The ideal amount to invest in this operation would be $ 1,150 or 23%. However, due to our Stop Loss, we only risk 2% as the trade will stop once it reaches the set level.

Risk trading in cryptocurrency

Elder’s “sharks” and “piranhas”

This concept of position size is related to the diversification of your investments. This concept is attributed to Dr. Alexander Elder, who suggests two rules:

  • Limit each position to 2% risk. Elder compares the risk to a shark bite. Sometimes you want to risk a very large amount, but the risk would be great and catastrophic, like a shark bite.
  • Limit trading sessions to 6% per session. If you are going through a losing streak, you may gradually end up spending everything you have. Elder compares this risk to attacks by piranhas, which take small bites from their victim until they are all consumed.

Following Elder’s Sharks and Piranhas approach, the result is no more than three open positions at 2% each or six at 1%. By limiting the results with a reverse compounding, the losses get smaller and smaller with each subsequent loss you suffer.

Kelly’s criterion

Developed in 1956, the Kelly Criterion is an accurate formula given by John Larry Kelly. It is a position sizing approach that defines the percentage of capital to bet. It is suitable for long-term trading.

A = (% Success / Loss Rate in Stop Loss) – ((1 -% Success) / Profit Rate in Take Profit)

Using the previous example, the characteristics would be:

Stack size: $ 5,000

Amount invested: $ 1,150

% success: 60%

Entry price: $ 11,500

Stop Loss: $ 10,500

Loss rate: 1.10

Take profits: $ 13,000

Our result would be:

A = (0.6 / 1.10) – ((1 – 0.06) / 1.13) = 0.19

This means that you should not risk more than 19% of the total capital of $ 5,000 to obtain the best possible result in a series of operations.

2. Reward/risk ratio

The risk/reward ratio compares the actual level of risk with the potential returns. In trading, the riskier a position is, the more profitable it can be. Understanding the risk/reward ratio allows you to know when to open a position and when it is not profitable. The reward/risk ratio is calculated as follows:

R = (Target Price – Entry Price) / (Entry Price – Stop Loss)

Taking into account the above:

Entry price: $ 11,500

Stop Loss: $ 10,500

Target price: $ 13,000

Our relationship would be:

R = (13,000 – 11,500) / (11,500 – 10,500) = 1.5 or 1: 1.5

A 1: 1.5 ratio is good. We advise traders not to trade less than 1: 1.

3. Stop Loss + Take Profit

Stop Loss refers to an executable order that closes an open position when the price falls below a certain limit. On the other hand, Take Profit is an executable order that liquidates open positions when prices rise to a certain level. Both tools are very good at managing risk. Stop Losses prevent you from making unprofitable trades, while Take Profits allow you to exit a position before the market turns against you.

You can use Trailing Stop Loss and Take Profits that follow rate changes automatically. However, this feature is not available on most cryptocurrency exchanges. Luckily, using terminals like Superorder, you can configure your Trailing Stop Losses and Take Profits directly from the terminal.

Winning Strategies:

Accept failures

Risk is part of trading. Also, we cannot delete it, we can only manage it. Therefore, you must accept your losses and make decisions based on a plan to profit from future operations.

Take into account the commissions

New traders are often unaware of the commissions involved in trading. These include withdrawal fees, leverage fees, etc. You must take all of this into account when managing risk.

Focus on profits

The risk will always be present to discourage you when it comes to trading. However, focusing on the number of times you win will help you develop a positive attitude in trading.

Measure losses

This refers to the total decrease in your initial funds after a series of losses. For example, if you have lost $ 1,000 out of $ 5,000, the loss will be 10%. The higher the amount, the more you will need to inject in an operation for it to recover. As Dr. Elder advises, the risk limit should be kept at 6%.

What does blockchain technology bring to cryptocurrencies and how should we invest in it?

How starting from scratch right now to build a crypto portfolio in 2021

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crypto

Bitcoin is considered one of the highest-yielding assets of the decade, outperforming even traditional financial instruments like gold, stocks, and bonds. Bitcoin has produced huge returns to investors in just over a decade. Many institutional investors have started to include a percentage of their investment portfolios; consisting of bonds, indices, stocks; to the main digital assets Bitcoin and Ethereum.

It is an accepted reality that prominent cryptocurrencies like Bitcoin and Ethereum have yielded massive returns to investors in the past. However, the cryptocurrency markets have expanded far beyond the top ten digital assets list. Cryptocurrency markets now incorporate a multitude of utility tokens, security tokens, Defi tokens, privacy tokens, gambling tokens, and more.

Also, building a cryptocurrency portfolio with only Bitcoin and Ethereum is not enough. To take full advantage of the gains from this rising industry while reducing the risk factor, it is necessary to diversify a portfolio containing multiple cryptos from scratch. In this guide, we explore the need to diversify a portfolio beyond Bitcoin and also one of the diversification strategies for a brighter outlook.

What is cryptocurrency portfolio diversification?

Crypto portfolio diversification is the process of disbursing investment funds into different crypto projects to reduce the risk factor if one or more projects fail. The objective is to create diversification with investments in different areas/niches to reduce the overall risks of investments. For example, investors investing in Bitcoin in 2017 had the first-hand experience when the price of Bitcoin fell sharply in 2018.

The basic idea is to reduce the factor of the negative event. This can be done by investing in multiple tokens and coins so as not to lose the overall value of your investments. To this end, a smart investor recognizes that it is safe not to put all your eggs in one basket, that is, in Bitcoin.

It is important to manage your business operations on a reliable and trusted cryptocurrency exchange platform. This makes it easier for an investor to increase their overall portfolio diversification experience.

How to get started with portfolio diversification

There are different strategies to diversify a cryptocurrency portfolio. This can include creating a portfolio taking into account different factors depending on the investor. We have discussed one of the strategies that a trader can employ to build a portfolio that caters to the different properties of tokens, including market capitalization, liquidity, stability, and functionality.

Bitcoin

While a portfolio shouldn’t be made up entirely of Bitcoin, the leading cryptocurrency should contain a considerable percentage of your investments. One of the factors is the growing trend of investment in Bitcoin by hedge funds, corporations, institutions, and investors. Major financial companies have also started offering different services related to Bitcoin.

The Bitcoin asset is also gaining the attention of retail investors, thus driving its mainstream adoption. It continues to exceed conventional investment alternate like gold in 2020. Allocating a percentage of your crypto portfolio to Bitcoin mitigates risks by acting as a safe asset.

Ethereum and ERC-20 Tokens

Ethereum continues to rank second in the cryptocurrency markets. Furthermore, the real value of Ethereum lies in its ability to facilitate the creation of smart contracts and decentralized applications.

crypto

Its inherent usefulness subsequently provides a solid foundation for the valuation of your native ETH token. Although there are many other blockchain networks, Ethereum continues to dominate the industry.

The ERC-20 protocols are the utility symbols released on the Ethereum Blockchain network. These tokens act as a utility function for a landscape spanning a real industrial use case. Many of these altcoins have found success in their crypto projects. For example, OmiseGo (OMG) is an ERC-20 token that yielded five times more in 2020. In other words, a $ 1 investment in January 2020 is worth nearly $ 5 in November 2020.

Investing in altcoins makes it easy for the trader to leverage exponential growth in a relatively short period. At the same time, it poses threats of scams, project failures, and fraud. But this kind of risk is offset by safe assets like Bitcoin. For more information on the price of Bitcoin and how to buy Bitcoin, click here.

Passive income tokens

Like dividends, some cryptocurrencies give interest to token holders. Staking is a phenomenon that facilitates the rewards of cryptocurrencies in exchange for keeping crypto in a portfolio. In addition to diversification, staking also serves to allow a passive income from having cryptocurrencies.

Cosmos (ATOM) is a token that yields an interest of 8-10% in exchange for staking operations. Dash (DASH) is another token that produces an annual reward of between 5-6%.

Stable cryptocurrencies

Cryptocurrencies are well known for their volatile nature. While volatility can add advantages if trades are executed correctly, it also poses a risk factor. The established ones are cryptocurrencies that are used to mitigate the risks that arise from other tokens. These currencies are tied to the value of an asset such as fiat currency such as USD.

The Tether (USDT) is one of the most popular stable coins that is pegged to the value of the USD. It is advisable to secure a percentage of the portfolio to stable coins or stable cryptocurrencies. This eliminates the risk factor to some extent.

Final comments

Diversification is a strategy used by smart investors to mitigate their risks in traditional markets. The advantages of diversification are equally relevant to the cryptocurrency industry as well. Also, diversification can play a strategic role in cryptocurrency investments when the industry is in a nascent stage. Although it will not eliminate threats or double the value of your portfolio, it is an important tool when markets suddenly turn down.

What are cryptocurrencies? Why are they considered a trend in payments?

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What are cryptocurrencies? Our finances and our money have always changed. At first, people simply exchanged, then paid with gold and silver, later paid borrower’s notes and today we use cash or credit cards. What’s in the future? Will we then only pay virtually? The word cryptocurrency has haunted the media and the Internet for some time and leaves many a little perplexed.

Cryptocurrencies, crypto assets, virtual currencies … Call it what you want, because these words are different ways of referring to “a digital medium of exchange based on cryptography to secure digital financial transactions, verify the transfer of assets and control the creation of additional units”. Of course, blockchain technology, the one in charge of sustaining the system, could not go unnoticed here.

They are exchanged like any other traditional currency, but with a bonus: they are issued by private bodies and serve to transfer value just like those issued by governments and financial institutions.

Currently, there are more than 1,300 cryptocurrencies, they rise like foam, which makes this world a growing and powerful market.

There are already more than a thousand different cryptocurrencies. The best known and most important is Bitcoin. Using your example, we want to introduce you to the topic, show you how digital currencies work and what differentiates them from traditional payment transactions. Also, we will then introduce you to the blockchain as the basic technology of Bitcoin and discuss other cryptocurrencies.

Bitcoin – currency and payment system in one

cryptocurrencies

With classic currencies such as euros or US dollars, everything is neatly separated. On the one hand, there is the actual currency, whose coins and notes we use every day. Gold used to be behind these currencies to secure their value, today central banks and states guarantee their intrinsic value. On the other hand, there is the payment system through which transactions are made in these currencies. These are the banks and credit card companies that act as intermediaries between the parties involved and with whom the accounts are kept.

Both of these coincide with Bitcoin. On the one hand, it is a currency that is only secured by the trust that users have in the control function of a shared network. And at the same time, it is the network as a framework for action. Bitcoin is a purely digital monetary unit in an independent, self-sufficient, global, digital payment system that works “peer to peer”, i.e. from person to person, without the intermediary of financial intermediaries.

For this reason, bitcoins are not managed in a bank account like traditional currencies in traditional payment transactions but are stored in so-called wallets. These are digital wallets on the Bitcoin user’s smartphone or desktop computer, which means that no bank can block these digital wallets. Also, Bitcoin has other advantages: there are no transfer limits or maximum amounts for transactions and there are also no geographical restrictions. While it is difficult and expensive to transfer money to a country on another continent the traditional way, with Bitcoin this is not a problem. All you need is an internet connection and access to your wallet. For this reason, Bitcoin can also be an alternative for people who live in countries or under conditions that exclude them from traditional payment transactions via banks.

The separation of ASIC technology in mining allows for a much more secure blockchain. In this way, we opted for mining through graphics cards, which makes it possible to democratize mining within the reach of anyone.

Cryptocurrencies allow helping society in its access to financial resources, due to its economic independence with respect to banks, due to its speed, its high and secure computer technology, and because it creates the possibility for anyone to be a bank itself.

These virtual assets are born from the dream of a fairer world, creating a computer network that will put an end to speculation and the over-creation of values.

More and more stores accept payments with cryptocurrencies, especially large capitalization, which ensures prosperity to the crypto world.

cryptocurrencies

The value of these currencies is not exclusively related to the behavior of a certain economy but also depends on the commitment that users have to maintain their price, and on the usability that it has to transfer value, being able to serve the growth of the currency any type of international user.

Are you clear about what it means to mine cryptocurrencies? It is, nothing more and nothing less, than the process in which cryptocurrency transactions are verified and in which compensation is received for the effort.

Among the advantages of cryptocurrencies is their global vision (there is no place in the world where they cannot be accessed to carry out operations), they offer great opportunities to study the financial market to make a profit, they are decentralized and they achieve greater transparency in their operations thanks to the blockchain.

Although some people focus on pointing out the illicit nature of cryptocurrencies, from the point of view of money laundering, it is not a social threat, quite the opposite. The elimination of cash and registration in inviolable blocks makes cryptocurrencies the vehicle to end capital that moves outside the law.

It is an opportunity to reduce financial poverty, in a world in which the possibility of acquiring a bank account in many countries is remote or impossible, digital money would favor the accumulation of capital in a safe place and the transaction with the most disadvantaged.

Conclusion on the details of current cryptocurrencies

These are the most significant details of cryptocurrencies. We tell you about them, but only you decide what is the point of view from which you want to see them. Volatility, for example, is both a positive and a negative factor, like everything else, but only you decide where to put the focus.

Cryptocurrencies have brought a thread of fresh air to the traditional financial world, stagnant in traditional dynamics without innovation, going from physical currencies to assets of a digital and practical nature, from the mere link to a country, or groups of countries, to the global, from the issuance of governments to the offer through mining, from the injection into the economic system through securities and bonds to their direct introduction into the market.

In these times, technology can help control everything.

What does blockchain technology bring to cryptocurrencies and how should we invest in it?

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Blockchain technology also called the “chain of blocks” brings multiple benefits and not only to cryptocurrencies and the financial sector but also to other sectors. It is the foundation that supports the structure of virtual currencies. It has great potential, which has provided its great evolution. The future that experts predict for blockchain technology is far from a failure, as the expectations placed on it are enormous. It only needs to successfully survive the obstacles that lie ahead and those who use it to instill fear in society by speaking ill of this technology.

It is one of the most revolutionary technologies of the century, but do we know what blockchain is?

The technology sector is advancing by leaps and bounds. Until recently, it was difficult to think of autonomous cars, smart homes, virtual reality simulators, or social media. All of them have meant, to a greater or lesser extent, a revolution in each of their areas. However, none of them have had the repercussion and impact that the blockchain, also known as the blockchain, currently has. It is, without a doubt, the most disruptive technology of this century. A concept that has revolutionized many industries and areas of our day to day and in which you can also invest. But do you know what it is and how to invest in this technology?

BLOCKCHAIN

WHAT IS BLOCKCHAIN TECHNOLOGY

Let’s start at the beginning: What is this blockchain? The blockchain is nothing more than a decentralized information system that grows continuously, a kind of distributed and secure database that guarantees the privacy of transactions. In the blockchain, the blocks are all linked to each other and encrypted to protect the security of the users. Your most important requirement is that multiple users are validating these transactions so that they can be inserted into this huge ledger.

THE APPLICATIONS OF THE BLOCKCHAIN

Although the largest field of application of the blockchain is economic transactions, the truth is that this technology encompasses many more potential ideas. For example, the Japanese government has started a project to unify all urban and rustic property registration through blockchain. Some companies want to decentralize cloud storage so that it does not depend on a specific centralized provider. Another example is healthcare, in which the medical records of all patients could be stored through the blockchain. In reality, the potential of blockchain is practically limitless.

HOW TO INVEST IN BLOCKCHAIN

When we think about investing in blockchain, we are not talking about doing it directly in this technology, but about buying assets or securities that make use of it. These are some of the most interesting alternatives today.

Cryptocurrencies

Cryptocurrencies are undoubtedly the best-known use of blockchain technology. Their popularity has been growing over the last few years thanks to the guarantee of security and anonymity that they incorporate in transactions over the Internet. 

The best known is Bitcoin, but there are others such as Ethereum, Ripple, Litecoin, or Cardan. Currently, more than 1,300 different ones can be found. At the investment level, cryptocurrencies are characterized by their high volatility, in some cases higher than 80%. 

This makes them considered a high-risk asset and not very suitable for retail investors, as stated by the Security Exchange Commission (SEC). There are two options for investing in cryptocurrencies: buy them or mine them. 

The first option is the most common and consists of getting the cryptocurrencies in the market. The second option is to create new coins and register them on the blockchain. However, it is an increasingly residual alternative, because the processing capacity to mine new cryptocurrencies is increasingly expensive. 

In any case, it is the user who can do it directly without resorting to an intermediate figure. In the case of the purchase of cryptocurrencies, you only need a virtual wallet to acquire them that provides access to the blockchain of those cryptocurrencies. In the case of mining, you just need to install software on the computer and let it work autonomously. 

ETFs 

ETFs (Exchange Traded Funds) are investment funds that contain a set of securities that replicate an index. There are already indexes that allow exposure to the blockchain. Some of the most interesting ETFs to invest in blockchain and their returns are as follows.

Stocks of large companies 

Large companies are betting heavily on blockchain technology. Companies such as Microsoft, Visa, and, above all, IBM, are developing solutions based on block technology. In general, almost any company that is listed on the Nasdaq, America’s tech stock index par excellence, has some kind of blockchain-based solution. So, if you want to invest in blockchain without having to assume the volatility that characterizes this sector and in a much more accessible way, it is advisable to bet on consolidated companies in the technology sector that are developing this technology. 

Cryptocurrency ICOs 

The Initial Coin Offering (ICO) or Initial Coin Offerings are a financing mechanism through which a company seeks to raise capital through cryptocurrencies such as Bitcoin or Ethereum. A kind of public offer for sale or business crowdfunding project that has a peculiarity: It uses the blockchain in the entire process of attracting economic resources. Its operation is simple. 

A project issues a certain amount of crypto assets or virtual tokens on a blockchain platform and investors pay through cryptocurrencies. If the project goes ahead and succeeds, the cryptocurrencies on which its financing was based gain value and that ends up offering an interesting return on investment for all these investors. The growth of ICOs has been spectacular. 

According to data from the ICO Bench, projects worth $ 1.2 billion were financed in May 2019 alone, and applications such as Telegram managed to raise $ 1.7 billion in several rounds. The returns are, in some cases, spectacular and far from those that can be obtained by any other traditional investment. The five most successful ICOs in history in terms of return on initial investment have been, according to Cointelegraph:

  • NXT, with profitability of 11,547,519%.
  • Spectercoin, with profitability of 676.227%.
  • IOTA, with profitability of 522,900%.
  • Ethereum, with profitability of 442,869%.
  • Neo, with the profitability of 378,453%.

HOW BLOCKCHAIN’S EARNINGS WILL BE DECLARED

Although there is no specific regulation on the blockchain, as of today, assets such as cryptocurrencies are considered intangible assets for the Treasury. This category is the same as that used for web domains, farm exploitation rights, or the transfer of a bar. But what do you do when you convert your investment in cryptocurrencies or other blockchain-related assets to money? 

Well, the same thing we do with any other investment: Declare them in our income statement, incorporating capital gains into the tax base of savings. The amount that you will have to pay to the Treasury is obtained by subtracting the transmission value from the acquisition value, excluding expenses and commissions. The corresponding savings rates are applied to this value, which in 2019 are as follows:

If the investor is a legal person (for example, a limited company), the profits obtained are included in the tax base of the corporation tax, which has a tax rate of 25% on the profits of the company. In short, the blockchain is here to stay. More and more solutions based on this blockchain technology and its applications will continue to grow in the future. Given this reality, investing in blockchain is an interesting option, although, yes, as long as we assess the risks associated with such an incipient concept.

The top 10 cryptocurrencies to trade in 2021

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There are now several thousand cryptocurrencies. The jungle of digital currencies has become opaque and attracts many “black sheep”. Which cryptocurrencies are particularly suitable for trading and offer the best opportunities?

In this article, we examine the best cryptocurrencies to watch in 2021.

1. Bitcoin: the world’s most famous cryptocurrency

Bitcoin (short: BTC) is a digital currency based on a blockchain, which is secured and defined by cryptography. The Bitcoin network is the infrastructure for a completely new economic and financial system, which is completely decentralized and works completely without middlemen. In the system, there are no national borders and no central institutions, but this economic system works completely peer-to-peer, i.e. from person to person. Bitcoin is also the world’s first and, at the same time, largest cryptocurrency with the largest trading volume, which is particularly interesting for traders. The all-time high is already at over $ 42,000.

2. Ethereum: the number two cryptocurrency

Ethereum (currency: Ether (ETH) is mainly understood as an environment for intelligent contracts, so-called “smart contracts”) and is considered a second-generation blockchain. Invented in 2013 by Vitalik Buterin, Ethereum is more than just a means of payment Coins are only stored on the blockchain, it is possible to run programs using a so-called Ethereum Virtual Machine (EVM). Ether is the second-largest cryptocurrency after Bitcoin, measured by market capitalization, and also has a strangely high trading volume compared to Competing currencies. Above all, the range of practical applications is almost infinite. Ether is also likely to find increasing use in everyday life. However, it is unlikely that the Ethereum rate will overtake Bitcoin one day, as the crypto reserve currency has the first-mover effect.

3. Ripple: The number three of the most important cryptocurrencies

Ripple (XRP) is an ‘open source’ protocol for a payment network, i.e. it is based on a shared public database. In the final version, Ripple is to function both as a decentralized ‘peer-to-peer payment method, i.e. also as a foreign exchange market. Trading and the exchange of goods are possible without a central clearinghouse. The agreement between the network participants concerned takes place via a so-called consensus procedure. Against this background, the cyber motto XRP serves as a store of value as well as a trading instrument.

Ripple is said to have a high potential for use cases and has therefore been able to work its way up quickly even in the early days of the crypto hype. However, due to the latest lawsuit by the US SEC, investors should act cautiously.

Ripple hit its all-time high in January 2018 at over $ 3.30.

4. Bitcoin Cash: waste product or secret winner?

Bitcoin Cash (BCH) is the result of a Bitcoin fork on August 1, 2017. The update called “SegWit” was the main trigger for the fork that the Bitcoin-Core team took over. As a world currency, Bitcoin Cash is intended to serve as a means of payment around the globe and not just be viewed as a digital replacement gold. The all-time high Bitcoin Cashs is trading at around $ 4,300 and dates back to December 2017.

cryptocurrencies

What is a fork?

A fork is a disagreement in the consensus that only decides what is done or not done. The result is often a change in the source code so that soft or hard forks can occur so that changes can take effect.

The currency Bitcoin Cash is interesting because it is repeatedly traded as a competing currency to Bitcoin and in this context should have a high trading volume, which makes this interesting for investors. At the same time, Bitcoin Cash is recognized and accepted on exchanges in many places.

5. Litecoin: the secret tip for cryptocurrencies?

Litecoin (LTC) is a so-called digital ‘peer to peer currency that is integrated into ‘open-source software. From a technical perspective, the Litecoin project is very similar to the Bitcoin system. The production and transfer of Litecoins are based on an ‘open source’ encryption protocol. There is no central control. With this in mind, all transactions, balance sheets, and expenses are managed by a ‘peer-to-peer network. Litecoin is created based on a cryptological hash function, which in turn generates blocks: so-called mining. Litecoins can be exchanged for bitcoins as well as fiat money. The relevant processing usually takes place via online exchanges (so-called digital currency exchangers).

Litecoin has met with increasing interest in the past few months. Last but not least, the fact that the payment service provider PayPal wants to include the currency in its portfolio has made investors prick up their ears.

Litecoin reached its high point in the wake of the hype in December 2017, which is quoted at 420 dollars.

6. Stellar Lumens: The seemingly unknown number

Stellar is an ‘open source’ protocol and global network for money exchange and the exchange of values. The cryptosystem sees itself as an alternative and further development of Bitcoin. The interaction of the network participants takes place according to a consensus procedure via the software implementation of the protocol on different servers. The ultimate goal is to simplify international payment transactions and economic exchange and to reduce transaction costs. The coins or payment units developed against this background are also called lumens and can also be traded on online exchanges (so-called digital currency exchangers). The record is around $ 1.05 and dates back to January 2018.

7. Iota: the “internet of things”

Iota (currency: Miota) sees itself as one of the third generation crypto assets and is also referred to as the “internet of things”. Iota is not based on a blockchain, but a tangled network and works without a miner. The digital payment system aims to ensure that transactions are processed quickly without incurring high computing effort or any costs for the user. Also, better scalability should be achieved than with conventional blockchain-based cryptocurrencies. Iota has a professional ecosystem and could play one of the key roles given the possible coming IoT. Also, some industrial partners are already linked with IOTA. The all-time high at Miota was just under six dollars, which was reached at the end of 2017.

8. EOS: “The Ethereum of Asians”

EOS is a blockchain-based cryptocurrency that also functions as a platform for other blockchain-based applications, systems, and currency tokens. The platform pursues the goal of offering intelligent contracts (smart contracts) and decentralized storage solutions (dApps) for companies. In this context, the scalability problems of previous blockchains are to be overcome and a complete fee exemption for the users concerned is achieved. Mining is not required: consensus through delegated proof of stake. Eos sees itself as a further development of Ethereum. At its peak, EOS is quoted at over $ 23.

9. Cardano: The silent winner?

Cardano is a blockchain-based project for the transmission of complex contracts and values. It is a scalable, decentralized platform (Smart Contract & dApps) that, among other things, serves as the basis for trading with the crypto-currency ADA. The latter then also represents the internal means of payment for corresponding transactions. Like Ethereum, Eos or the platform/blockchain wants to enable the implementation of smart contracts and dApps in addition to its currency function and set new standards in security against this background. In January 2018, ADA hit a high of $ 1.40.

10. Dash: The new means of payment?

Dash (digital cash) aims to be the most user-friendly and at the same time most scalable crypto asset. While Dash is based on Bitcoin, the payment method offers not only an increased transaction speed but also all-important anonymity. Also, the cryptocurrency should optimize/reduce energy consumption during mining and guarantee higher network security against possible hacker attacks. Against this background, Dash sees itself as a further development of the classic Bitcoin blockchain.

The core of the Dash ecosystem is the peer-to-peer network, in which miners are paid for securing the blockchain, with master nodes trying to validate this and make it accessible to users. The all-time high for Dash is around $ 1,600.

Conclusion: The top 10 cryptocurrencies to trade

The future could lie in the cryptocurrency market and you have the opportunity to enter cryptocurrency trading directly. With the help of a CFD, you have the option to participate in the price development of numerous cryptocurrencies – without a wallet, in both rising and falling markets.

Make sure you have sufficient liquidity to trade and protect your capital with guaranteed stops. You can also hedge your physical positions and secure your capital efficiently.

What are NFTs? All you need to know about the potential future of NFTs.

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NFTs, or non-fungible tokens, are a type of cryptocurrency created on a smart bargain platform like Ethereum. They are unique digital objects that can be interesting to own or even profitable to trade. Think of them as digital trading cards. Generically, they start small that only enthusiasts care about, but if you get a rare one, it could rule a lot one day.

What are fungible and non-fungible?

Cryptocurrencies can be fungible, which means that all units of the currency (that is, tokens) are the same and the same, such as grains of rice or dollars.

NFTs

Non-fungible tokens are the complete opposite: Each cryptocurrency platoon, or token, is unique and cannot be replicated.

This “non-fungible” property can be used for many things, including certain types of coins. But NFT’s blatant mania is primarily driven by digital art and collectibles. Kin has discovered that a unique digital object can be interesting, formidable, and even have a significant monetary value. That’s why space has recently flourished, encompassing thousands of projects involving artwork, games, and sports.

How do NFTs work?

It depends on the platform. But given that the vast majority of NFTs are created and traded on Ethereum, we will focus on that.

NFTs are created in Ethereum’s block captivity, which is immutable, meaning it cannot be modified. No one can undo their ownership of an NFT or re-create the same one. They are also “without permission”, so anyone can create, buy or betray an NFT without asking for permission. Ultimately, each NFT is unique and can be viewed by anyone.

So yeah, it’s like a one-of-a-kind collectible malleable in an ever-folksy wardrobe that anyone can honor, but only one person (or cryptocurrency wallet, to be exact) can own at any one time.

In a practical sense, an NFT is usually represented by a digital artwork, such as an image. But it’s important to understand that you are not pandering to just that image (which can be easily replicated). Its existence as a digital object in block captivity is what makes it unique.

How do I buy or change NFT?

NFTs are bought and traded like any other Ethereum-based cryptocurrency, only that to buy a certain number of tokens, you buy a single token.

To do that, you need to start by installing Metamask, a browser extension that allows you to interact with various facets of Ethereum, such as exchanges and dApps (decentralized applications). MetaMask is even a digital wallet for Ethereum and all tokens created on Ethereum (both fungible and non-fungible).

After installing the extension, you need to buy a little Ethereum (you can do it directly in MetaMask with a debit mailer or Apple Pay by clicking “Associate funds”). But be very careful with your funds: store your MetaMask password and private wallet essence for a safety reason. Then when you visit a website that sells NFTs (like NBA Top Shot) or an exchange where you can trade them (like Uniswap), connect your MetaMask wallet to the site (only do it on sites that you know are safe) and buy your first NFT.

Why are NFTs valuable?

Of course, before you buy a little, you will probably want to understand why it is a good purchase. In fact, why would anyone buy an NFT, and why should a buyer own a willing to buy even more tickets in the future?

Ideally, the worth of NFTs doesn’t just come from a digital hot potato hinge, where you buy little in hopes of selling for more down the road. And so on, until everything breaks. Ideally, the NFT should be of value to you because… you like it. If you are an NBA fan, you may wish to have an official NFT representing your protected gambler. Or maybe there is a digital merciful that you like.

Sure, in a way, many NFTs are just digital images that you can right-click and unlearn on your computer. But NFTs even reside in block captivity, which makes it extremely difficult to copy them in their entirety. The blockchain entry even transparently tells you who created the NFT. If a famous musician says, “Yes, that’s my Ethereum address that created this digital image of a possum.” So that can be corroborated in the block captivity.

  • Larva Labs CryptoPunks are among the most coveted (and expensive) NFTs out there.
  • Caterpillar Labs CryptoPunks are among the most coveted (and expensive) NFTs out there.

Some NFTs can be valuable in other ways. Say, for example, you buy an NFT related to a swath hinge. Perhaps that NFT will one day grant you a singular prestige in the hinge, or it could even be the mat for you to obtain some other difficult-to-get object; little that only you can have because each NFT is unique. If you’ve ever played World of Warcraft or a similar hinge, you know how valuable an alcove of armor or weaponry can be. Now with NFTs, no one can take it off, not even hinge owners.

Let’s go back for a second to the digital hot potato hinge. NFTs are a fledgling space, and there is a lot of hysteria and scams. You may see a certain NFT sold for millions and think that you can even buy a little for a few dollars and get rich selling it to someone else upfront. It can happen, but it is rare. And these things can be manipulated. For example, a crypto whale (someone who owns large amounts of the crypto ticket) can buy many NFTs and then “sell” them to himself (his other crypto address) for millions, artificially inflating the price. So be careful: just because some NFTs were traded for a lot of tickets, don’t think this automatically means that all other similar NFTs are even valuable.

What are the most expensive NFTs?

In the early days of space, we saw a blockchain hinge-like CryptoKitties selling virtual cats for tens or even hundreds of thousands of dollars. Music producer 3LAU recently sold a limited-run collection of 33 NFTs for more than $ 11 million. Musician Grimes (even known as little X Æ A-Xii’s mom) even sold his digital art collection for $ 7,500 each, for a total of $ 6 million in sales. Yes, these things can be very expensive.

Are NFTs a good investment?

Buying an NFT because you like it, or even to make (or lose) a few quick bucks is one thing. But upsetting at NFT is another. Again, it is an incipient space. Even a Van Gogh painting or a rare Babe Ruth baseball malleable required little time in the old days to become very valuable.

Given the digital nature of NFTs, it is difficult to compare them to prized physical works of art such as statues and paintings. On the other side, we live in a world where a Bitcoin is worth more than $ 50,000, so things in the digital realm can certainly be very valuable and even continue that value for longer periods.

In any case, if you plan to turn NFT upside down, you will need to dive deep into this cumbersome world because each NFT market is slightly different. It’s costly too – trading Ethereum can be expensive enough as new network congestion is driving fees up. Finally, you will need to think strategically and follow the rapidly changing cryptocurrency trends.

In short, it is possible to win a ticket by investing in NFT, but you will have to do your homework.