Crypto

Don’t Make These Mistakes When Investing in Cryptocurrency

Published

1 year ago

June 23, 2023

Don’t Make These Mistakes When Investing in Cryptocurrency

People are becoming increasingly interested in cryptocurrencies as they find them a great way to build their wealth. However, as seen over the years, digital currencies are marked by high volatility, causing investors to make mistakes they regret. The good news is that there is a lot of information available on how to safely trade Bitcoin and other cryptocurrencies, as well as what mistakes to avoid. The world of digital assets is complex, so it’s essential to take the time to understand how it works. The key to success is to improve your investment strategies daily and avoid risking your portfolio because you didn’t research in advance. Here are the most common investing mistakes that you should be aware of.

Misunderstanding the technology

If you don’t understand digital currencies, your trading experience will be less than ideal. Doing your research is among the most important things when starting with cryptocurrencies, as you need to learn about concepts like blockchain, smart contracts, etc. Moreover, in the crypto landscape, many projects have no actual use case, so you must first evaluate a digital asset before investing in it and also understand its community.

If you don’t grasp the concept of crypto and jump straight into investing, you will inevitably make mistakes that will result in financial losses. You indeed need patience to find crypto gems, but ultimately, it’s all worth it, considering that it will help you mitigate risks and increase profit. So, start with the basics, and when choosing a project, such as Bitcoin, look for its whitepaper. Research what problems the digital asset aims to solve and its real-world uses.

Emotional investing

In a volatile industry like crypto, it’s imperative to use your judgment before deciding your investments. Unfortunately, many investors trade on emotion, meaning that fear and greed cause them to buy and sell coins. FOMO (fear of missing out) and FUD (fear, uncertainty, or doubt) lead to irrational decisions, resulting in substantial losses.

This can be avoided by approaching crypto as a long-term strategy and making decisions only after comprehensive research instead of trading on emotion. One way to keep emotions out of investing is to use AI Crypto Trading Bots, which rely entirely upon strategies and mathematical rules.

Falling for the hype

Social media and the news play a massive role in investors’ decisions, and more often than not, they negatively impact investments. Falling for the hype is a costly mistake that leads to missed opportunities and losses. On the contrary, fundamental analysis, independent research, and market trends can help you make the most of your trading journey.

You should develop a trading plan and always stick to it even if it doesn’t align with the current market sentiment. Avoiding herd mentality will ultimately help you make informed decisions and increase your profit in the crypto market.

Not diversifying your portfolio

Investing all your cash into a single token is never a good idea, yet many crypto beginners make this mistake. Yes, this strategy can yield substantial returns (if you do it right); however, it is incredibly risky and should therefore be avoided. A safer and better approach is to diversify your portfolio, and instead of only focusing on “Blue Chip Cryptos” like Ethereum and Bitcoin, own different stocks, such as energy stocks, tech stocks, healthcare stocks, and so on.

Putting all your eggs in one basket won’t take you far, even if you choose reliable cryptocurrencies like Bitcoin. Diversification is a crucial component when it comes to reaching long-term financial goals and reducing risk.

Not securing your investments

Unfortunately, many investors forget an essential aspect when trading crypto, and that is to safeguard their investments. But not prioritizing cybersecurity means leaving the door open to bad actors who will get their hands on your funds by accessing your wallet.

A crypto exchange is a significant target for hackers, and unless it has solid security measures, it doesn’t really guarantee your crypto is protected. If you invest a considerable amount in cryptocurrency, keeping your crypto safe is essential, and that can be done via a hardware wallet. This type of wallet isn’t connected to the Internet, meaning that cybercriminals can only access your funds if they steal the physical device and know the paraphrase – which is quite hard to achieve.

Approaching cryptocurrency the right way

The crypto universe offers excellent opportunities to investors, but it also comes with significant risks that can impact your finances. That being said, you can reduce losses and maximize profit by being a smart investor. This involves the following:

Start with small amounts. Even if you have a high-risk appetite, that doesn’t mean you should put all your money into cryptocurrency. Instead, you want to start with a small amount. You can allocate more later when you get more familiar with the space and understand different coins’ value. But in the beginning, it is best only to invest what you’re willing to lose.
Buy established tokens. Some crypto coins are more stable than others, so to avoid risks, it’s essential to choose those that have proven to be reliable. For instance, Bitcoin is an already established cryptocurrency that drives the entire market, so focusing on it will help you start on the right foot.
Commit to crypto for the long run. Cryptocurrencies won’t likely go anywhere, so it’s best to be in the game for the long run, as this will ultimately bring you great rewards. If you stay longer in the market, it will be less likely for you to start panicking when prices are low.

Cryptocurrencies are appealing – after all, who doesn’t want to make money in a seemingly simple way? However, in reality, things are quite different. Crypto trading can be complex, and getting started with it can feel overwhelming and cause confusion. Therefore, it is crucial to research your favorite project before investing in it and follow other basic crypto trading rules, such as portfolio diversification and implementing the best cybersecurity practices to keep your investments safe.

Crypto

Is The Bitcoin Price Correction Over? Here’s The Support Level To Watch

Published

2 hours ago

June 29, 2024

Press Room

Is The Bitcoin Price Correction Over? Here’s The Support Level To Watch

The Bitcoin price suffered significant bearish pressure over the past week, dragging down alongside it a large portion of the general crypto market. The premier cryptocurrency tumbled as low as $59,500 at some point in the week — its lowest in nearly two months.

While investors will be hoping that the worst is over, it is difficult to determine whether BTC is ready to resume its bullish run. In any case, a prominent crypto intelligence firm has identified a price level critical to the future trajectory of the Bitcoin price.

$56,000 The Ultimate Support Level For Bitcoin: CryptoQuant

In a recent report, the blockchain analytics platform CryptoQuant put forward an interesting prognosis for the price of Bitcoin over the coming days. According to the firm, the $56,000 price level is an important level to the future performance of the premier cryptocurrency.

The relevant indicator here is Metcalfe price valuation bands, which pinpointed resistance levels and tops in the previous cycle. However, as shown in the chart below, these bands (the red line) acted as a critical support area in May.

NewsBTC

For context, the Metcalfe Law states that the value of a network is proportional to the square of the number of its users. Basically, this law suggests that the value of the cryptocurrency (Bitcoin) is intrinsically linked to the size and activity of its network.

The Metcalfe price valuation bands are derived from this principle, providing a valuation framework associated with the network effect. These bands create a range of price levels that evaluate where Bitcoin should theoretically trade based on the network fundamentals.

Historically, these bands have acted as both reliable resistance and support levels in different market cycles. In recent months, the $56,000 level has been a pivot point for the indicator, providing a strong support for the Bitcoin price in May.

According to CryptoQuant’s report, the price level might prove to be vital should the premier cryptocurrency face additional downward pressure. However, if the Bitcoin price dips below this level, the market leader could experience a major correction.

Bitcoin Price At A Glance

As of this writing, the Bitcoin price has returned to around the $60,700 mark, reflecting a 2% decline in the last 24 hours. The coin’s performance on the weekly timeframe is deeper in the red.

According to data from CoinGecko, BTC is down by more than 6% in the past week. Nevertheless, the cryptocurrency ranks as the largest asset in the sector, with a market capitalization of over $1.18 trillion.

Crypto

Earning Cryptocurrency with Minimal Investment: A Comprehensive Guide

Published

9 hours ago

June 29, 2024

Press Room

Earning Cryptocurrency with Minimal Investment: A Comprehensive Guide

1. Harnessing the Power of Referral Programs

Let’s kick things off with a strategy that leverages your network: referral programs. Cryptocurrency exchanges and platforms often offer lucrative rewards for bringing new users on board.

KuCoin Affiliate Program: Earn up to 60% of trading fees from referrals.
Trezor Affiliate Program: Earn up to 15% in commission for each referral.
Koinly Affiliate Program: Earn up to 40% in commission for each referral.

2. Searching for Crypto: The Presearch Revolution

Enter Presearch, a decentralized search engine that rewards users with its native token, PST.

Earn 0.25 PST per search
Daily cap of 8 PST
At the time of writing, 1 PST is valued at $0.02

3. Putting Pen to Paper (or Fingers to Keyboard)

If you’ve got a way with words, platforms like Publish0x offer an intriguing opportunity.

Write blog posts on various topics
Earn crypto tips from readers
Even readers can earn a slice of the advertising revenue

4. Shop ‘Til You Drop (and Earn Crypto)

Turn your retail therapy into a crypto-earning opportunity with platforms like:

Lolli: Earn up to 30% back in cash or Bitcoin at over 1,000 stores
StormX: Provides Crypto Cashback ranging from 0.5% to 87.5% at various online retailers

5. Learn and Earn: Education Pays Off

Platforms offering “Learn and Earn” programs:

Coinbase: Earn up to $200 worth of free crypto
Binance
Phemex
CoinMarketCap

6. Engage with Crypto Communities

Forecaster: Create content and interact with others, earning crypto tips and rewards
BountyCaster: Post and redeem bounties for completing specific tasks or achievements

7. Sign-Up Bonuses: Free Crypto for Joining

CoinSmart: Get 15 CAD worth of Bitcoin for signing up and verifying your account
Crypto.com: $25 bonus when you stake at least $400 worth of CRO

8. Crypto Betting Bonuses

In the realm of cryptocurrency, even online betting platforms are getting in on the action. “Crypto betting bonuses explained” is a term you might come across when exploring this niche. These bonuses are incentives offered by crypto-friendly betting sites to attract new users or retain existing ones.

Types of Crypto Betting Bonuses

Welcome Bonuses: Often a match of your first deposit in cryptocurrency.
No Deposit Bonuses: Free crypto to bet with, no deposit required.
Reload Bonuses: Rewards for subsequent deposits.
Cashback: A percentage of losses returned as crypto.

When diving into crypto betting bonuses explained, it’s important to note that these offers often come with terms and conditions, such as wagering requirements or time limits. Always read the fine print and gamble responsibly.

Important Considerations

Bonuses should not be the sole reason for engaging in online betting.
Prioritize responsible gambling practices.
Be aware of the risks involved in both cryptocurrency and online betting.
Terms and conditions may vary significantly between platforms.

Remember, while crypto betting bonuses can seem attractive, they are ultimately marketing tools designed to encourage betting. Always approach such offers with caution and a clear understanding of the associated risks and requirements.

Crypto

21Shares files for permission to offer ETF linked to cryptocurrency Solana

Published

16 hours ago

June 28, 2024

Press Room

21Shares files for permission to offer ETF linked to cryptocurrency Solana

By Suzanne McGee
(Reuters) – Digital assets investment management firm 21Shares filed Friday for permission from U.S. regulators to launch an exchange-traded fund tied to the spot price of crypto token Solana.

It was the second such filing in as many days, following a similar move Thursday by VanEck. The Securities & Exchange Commission approved spot bitcoin ETFs offered by both firms, among others, in January after a long battle. Both VanEck and 21Shares are among the asset managers awaiting SEC approval to launch spot ETFs tied to the price of ethereum, the second-largest cryptocurrency.

The CBOE, the exchange on which both asset managers plan to list Solana ETFs if approved, must still request regulatory approval to change its rules and allow these new products to trade. People involved in the Solana discussions, who declined to be identified because of the confidentiality of the process, said that filing could come within days or weeks. A spokeswoman for CBOE declined to comment.

A third asset manager, Canada’s 3iQ, filed earlier in June for permission from Ontario regulators to list a similar Solana-based product on the Toronto Stock Exchange. Solana is the fifth-largest cryptocurrency measured by market capitalization, according to CoinGecko.

The three filings have combined to drive the price of Solana 9.4% higher in the last seven days, even as the prices of bitcoin and ether dropped 4.6% and 2.8% respectively, according to CoinGecko.

So far, however, no futures contracts on Solana trade on the CME, in contrast to the pattern with both bitcoin and ether. The SEC approved futures-based ETFs tied to both tokens before considering the spot products.

The existence of futures contracts, however, “should not be the sole criterion for ETF eligibility,” said Andrew Jacobson, head of legal at 21Shares.

(Reporting by Suzanne McGee; Editing by Cynthia Osterman)

Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.