Crypto

Getting rich from the crypto rally? Here's how to lock in gains and avoid a crash.

Published

1 month ago

November 28, 2024

Press Room

Getting rich from the crypto rally? Here's how to lock in gains and avoid a crash.

Bitcoin approached $100,000 as crypto markets surged after Trump’s election victory.
But crypto is a volatile and risky asset class.
Taking profits, setting stop-losses, and diversifying into other assets are ways to reduce risk.

Christmas came early for crypto investors.

Ever since Donald Trump’s victory in the presidential election, cryptocurrency markets have been ebullient. Bitcoin, the crypto poster child, has continuously hit new highs this month, sending its price within striking distance of $100,000.

If you’ve been lucky enough to see some of these returns, you might also be worried about an impending crash, as crypto prices tend to be volatile.

While it’s common in crypto circles to glorify “HODLing” or “holding on for dear life” and resist the urge to sell your positions, this can prove to be an imprudent strategy.

Take the story of Glauber Contessoto, for example. The 37-year-old crypto trader became a Dogecoin millionaire in 2021 after his initial $250,000 investment in Dogecoin ballooned in just three months. Then things turned south.

“At the very top, my Dogecoin was worth $3 million. And then after that, the bear market came, and crypto in general dipped down,” Contesso told Business Insider in an interview. “I saw my portfolio go from $3 million all the way back down to about $200,000.”

With crypto assets enjoying another rally, Contessoto says he plans to approach things differently this time, taking profits earlier and diversifying. These are common strategies for investors to lock in gains and reduce the risk of losing their money if prices crash.

Here are some ways experts recommend reducing risks after a big run-up.

Profit-taking strategies

First, have a plan for getting out of an asset.

It’s important to have an exit strategy to minimize potential losses, especially with a risky asset class such as cryptocurrency. According to Fidelity Investments, it’s never too early to start thinking about one. While an exit strategy will be tailored to individual investor risk tolerance and preference, there are a few general guidelines.

When it comes to realizing gains, have a rough idea of how much money you want to make from your cryptocurrency investment, according to the cryptocurrency platform Digital Surge. The best way to realize gains is to start taking profits incrementally once your asset has appreciated to a certain level. For example, you could follow a rule such as taking 5% of profits for every 25% increase in price.

Don’t underestimate how volatile the crypto market is. One common strategy among crypto investors who have seen significant price appreciation is to at least take profits in the amount of your initial investment.

Set up stop-losses

Nobody likes to think about losing money, but having a plan for when your investment isn’t performing well is important for good portfolio management.

Consider setting up a stop-loss to automatically cash out of your position if your cryptocurrency falls below a certain price, saving you from the hassle of constantly monitoring the price of your crypto assets. These can be a fixed price or can trail your investment’s price gains by a certain percentage amount.

Diversify

Your investing strategy will depend on your risk tolerance, but one way to lower downside risk is to spread your money across a number of assets. Contessoto has his entire portfolio in various cryptocurrencies, but even that is a very risky approach. Cannon doesn’t advise following in his footsteps: “Even if you’re a 100% believer, just having your entire net worth in one asset class is risky.”

“If they have their entire net worth tied up in cryptocurrency, I believe that they should diversify,” Cannon added. He suggests stock-market index funds as a starting point to derisk a cryptocurrency-heavy portfolio.

Especially with meme coins like Dogecoin, seemingly arbitrary events can trigger massive swings in cryptocurrency prices, making diversification all the more necessary. In 2021, the Dogecoin rally was fueled largely in part by Elon Musk’s tweets supporting the cryptocurrency. And recently, Dogecoin spiked 15% after news broke of Elon Musk’s appointment as co-head of the Department of Government Efficiency.

At the end of the day, Contessoto embraces the volatility that comes with investing in Dogecoin and other meme coins. After all, it’s pretty unlikely that you’ll be able to quadruple your initial investment and become a millionaire in just a few months if you buy a more traditional, stable asset.

Don’t take Contessoto’s strategy as financial advice, though. It’s easy to glamorize the success stories, but there’s no doubt that investing in cryptocurrency is risky — especially when it comes to meme coins.

“These things are super high risk,” Contessoto said. “They hit and you make life-changing money, but when they don’t, you lose everything.”

Check out Business Insider’s picks for the best cryptocurrency exchanges

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Crypto

Cryptocurrency wallet drainers stole $494 million in 2024

Published

14 minutes ago

January 5, 2025

Press Room

Cryptocurrency wallet drainers stole 4 million in 2024

Scammers stole $494 million worth of cryptocurrency in wallet drainer attacks last year that targeted more than 300,000 wallet addresses.

This marks a 67% increase over 2023 figures although the number of victims only rose by 3.7%, indicating that victims held more significant amounts on average.

The data comes from web3 anti-scam platform ‘Scam Sniffer,’ which has been tracking wallet drainer activity for a while now, previously reporting attack waves that impacted up to 100,000 people at once.

Wallet drainers are phishing tools specifically designed to steal cryptocurrency or other digital assets from users’ wallets, often deployed on fake or compromised websites.

In 2024, Scam Sniffer observed 30 large-scale (above $1 million) thefts conducted via wallet drainers, with the largest single heist cashing in $55.4 million worth of cryptocurrency.

This occurred early in the year when Bitcoin’s price hikes fueled phishing activity. In the first quarter of the year, a total of $187 million was stolen via wallet drainer attacks.

**Amount in losses and number of wallets impacted monthly**
*Source: Scam Sniffer*

In the second quarter of the year, a notable drainer service named ‘Pink Drainer,’ previously seen impersonating journalists in phishing attacks to compromise Discord and Twitter accounts for cryptocurrency-stealing attacks, announced its exit.

Although this caused a drop in phishing activity, the scammers started to gradually pick up the pace in the third quarter with the Inferno service taking the the lead by causing $110 million in losses in August and September combined.

Finally, the activity subsided in the final quarter of the year, which only accounted for about 10.3% of the total losses recorded in 2024. At that time, Acedrainer also emerged as a major player, taking 20% of the drainer market, ScamSniffer says.

Drainers'monthly activity — **Drainers’ monthly activity**
*Source: Scam Sniffer*

Most of the losses (85.3%) occurred on Ethereum, amounting to $152 million while staking (40.9%) and stablecoins (33.5%) were among the most targeted.

Regarding trends seen in 2024, Scam Sniffer highlights the use of fake CAPTCHA and Cloudflare pages, and IPFS to evade detection, as well as a shift in signature types facilitating money theft.

Specifically, most thefts relied on the ‘Permit’ signature (56.7%) or ‘setOwner’ (31.9%) to drain funds. The first gives approval for token spending as per the EIP-2612 standard, while the second updates smart contract ownership or administrative rights.

Another noteworthy trend is the increased use of Google Ads and Twitter ads as a source of traffic to the phishing websites, with the attackers using compromised accounts, bots, and fake token airdrops to achieve their goal.

**Number of fake accounts on X pushing crypto drainers**
*Source: Scam Sniffer*

To protect from Web3 attacks, the recommendation is to interact only with trusted and verified websites, cross-check URLs with official project websites, read transaction approval prompts and permission requests before signing, and simulate transactions before performing them.

Many wallets also offer built-in warnings for phishing or malicious transactions, so make sure to enable those. Finally, use token revoking tools to ensure no suspicious permissions are active.

Crypto

AMBER Mining launches new cloud mining program for cryptocurrency enthusiasts to earn free Bitcoin

Published

8 hours ago

January 5, 2025

Press Room

AMBER Mining launches new cloud mining program for cryptocurrency enthusiasts to earn free Bitcoin

London, UK , Jan. 04, 2025 (GLOBE NEWSWIRE) —

Amber Mining has emerged as a game-changer in the cloud mining industry with its announcement of FCA-regulated mining contracts. This significant development ensures that cryptocurrency investors can participate in mining with greater transparency and security, backed by the stringent oversight of the UK Financial Conduct Authority (FCA).

A Milestone in Cloud Mining

Amber Mining’s FCA compliance marks a pivotal shift in the cryptocurrency mining landscape. With this move, the platform addresses common industry concerns such as fraud and lack of accountability, creating a reliable space for investors to explore cryptocurrency mining.

Amber Mining CEO stated:
“The introduction of FCA-regulated contracts underscores our commitment to protecting investors while driving innovation in the cryptocurrency mining space. We aim to set a new standard for security and trust in the industry.”

Features of Amber Mining

Amber Mining combines cutting-edge technology and strict compliance measures to offer unparalleled services to its users. Key features include:

Global Operations: Over 100 mining centers worldwide ensure extensive service coverage.
Advanced Hardware: Partnerships with manufacturers like Bitmain, Canaan, and Nvidia ensure efficient mining operations.
High Hashrate Management: The platform operates with over 10 EH/s capacity, delivering significant mining efficiency.
User-Friendly Design: The platform eliminates the need for users to manage hardware or software, making it ideal for both novice and experienced miners.
Expert Support: A dedicated team of blockchain engineers ensures smooth technical operations.
Consistent Earnings: Earnings are automatically credited every 24 hours for a stable income stream.

Getting Started with Amber Mining

Using the Amber Mining platform is straightforward:

Register on the Platform: Sign up in minutes and receive $12 immediately as a welcome bonus.
Choose a Mining Contract: Select from various tailored contracts based on your budget and goals. Contracts range in duration and profitability, catering to diverse investment strategies.
Start Profiting: Activate your chosen contract and let the system manage the mining process. Track your earnings through the platform’s intuitive dashboard and withdraw your profits as needed.

Amber Mining Contract Options

Below is a summary of the available contracts:

Contract Price	Contract Duration	Daily Interest Rate	Total Income (Principal + Profit)
$12	1 Day	10%	$12 + $1.2
$150	2 Days	4%	$150 + $12
$500	5 Days	1.55%	$500 + $38.75
$1,000	4 Days	1.58%	$1,000 + $63.2
$2,000	10 Days	1.6%	$2,000 + $320

Conclusion

Amber Mining’s FCA-regulated contracts set a new benchmark in the cloud mining industry. By offering transparency, regulatory assurance, and cutting-edge technology, the platform empowers investors to navigate the complexities of cryptocurrency mining confidently. With global reach, user-friendly operations, and consistent earnings, Amber Mining is poised to become a leading force in the cryptocurrency mining sector.

For more details, please visit https://ambermining.com

Disclaimer: The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities.

Crypto

HIVE Digital’s move highlights Texas’ renewed rise as a crypto hub

Published

18 hours ago

January 4, 2025

Press Room

HIVE Digital’s move highlights Texas’ renewed rise as a crypto hub

HIVE Digital, a publicly traded cryptocurrency mining firm, announced this week that it will relocate its headquarters from Vancouver to San Antonio, citing support from President-elect Donald Trump’s administration for the crypto industry’s growth as a key factor in the decision.

The company described the move as a strategic response to Trump’s re-election, highlighting the administration’s pro-Bitcoin stance and its focus on innovation and regulatory frameworks for the cryptocurrency ecosystem.

“The United States offers a competitive and business-friendly regulatory environment, along with access to capital markets,” the company said. “Texas, in particular, stands out for its supportive business climate, energy infrastructure, and skilled workforce.”

The shift underscores the growing interest in cryptocurrency and related businesses.

Cryptocurrency is a digital form of currency, such as Bitcoin, that operates independently of a central authority or government. Bitcoin lets people send money directly to each other without a bank, using a secure technology called blockchain.

Following China’s 2021 ban on crypto mining, U.S. mining activity surged, with Texas emerging as the top destination for large-scale operations.

Cryptomining is the process of using computer power to solve complex mathematical problems in order to validate transactions and secure a cryptocurrency network, earning new coins as a reward.

However, the rise of cryptomining in Texas has also sparked concerns. Critics argue that industrial-scale Bitcoin mining is driving up energy prices and straining the state’s power grid. Local politicians have raised alarms about the environmental impact and potential risks to the state’s energy infrastructure.

In addition to its favorable regulatory environment, HIVE emphasized the U.S. is a hub for funding opportunities.

“The U.S. capital markets, with their $40 trillion capitalization and daily trading volumes of $500 billion, offer unparalleled liquidity, visibility and growth potential,” said Frank Holmes, executive chairman of HIVE.

Korok Ray, a cryptocurrency researcher and associate professor at Texas A&M University, welcomed the move.

“Bringing more Bitcoin mining to Texas is a positive development for the state,” he said. “It proves that a favorable regulatory regime for this new technology attracts business. Texas lawmakers should continue to support Bitcoin, following the lead of Senator Ted Cruz.”

The move to San Antonio is expected to contribute further to the region’s growing reputation as a crypto-friendly destination.

Andy Gonzalez, co-founder of the San Antonio Crypto Network — a grassroots group focused on cryptocurrency education and long-term local investment — believes the recent resurgence in interest was inevitable once Wall Street began backing Bitcoin.

Gonzalez agreed that HIVE’s move to San Antonio is a good sign for the industry, which he said is a boon for Texas.

He added that while he understands the energy concerns some state residents have voiced, recent technological developments have seen mining centers also help the state have a surplus of stored energy, which could prove to be useful to the grid during times of high demand.

“If the government is pro-Bitcoin we’re all better for it,” he said. “Otherwise the tech and the dollars it brings goes elsewhere — to whoever embraced it.”