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How to Invest in Bitcoin

Deciding to invest in bitcoin requires meticulous planning and reading comments from the bitcoin community in reliable crypto news sites and bitcoin forums about particular precautions when choosing a cryptocurrency exchange.

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When it comes to the crypto market, Bitcoin still remains the backbone of the entire crypto world in relationship to price and currency value. From a financial point of view, it serves as a hedge against government and central banking confidence just like the role gold plays in its inverse correlation with the US dollar currency.

Relatively, Bitcoin as a digital currency is still in its early stage, so it is difficult to say for certain what is, and what is not when it comes to crypto investments. It’s not just about how to invest anymore but also where to invest. This guide is going to attempt to do justice to the concept of Bitcoin investments. 

How to Invest in Bitcoin 1

Compared to other investment opportunities with fiat money currency, it is safe to say Bitcoin is still young. Young opportunities like this are usually considered risky, the nature of Bitcoin is also quite volatile, with margin and leverage trading as high as x100 leverage (this is 10 times higher than traditional investment opportunities).

Overall, investing in Bitcoin is risky, but also profitable. It somehow presents itself as an alternate option of making money apart from mining Bitcoin. If you can capitalize on the opportunities afforded when you are investing in Bitcoin, you could be smiling in the bank in no time.

Step-by-step guide

Few years after Bitcoin was first traded in exchange, numerous exchanges have sprung up since then. Today people can either choose to buy Bitcoin on crypto coin currency exchanges or directly from other people through P2P platforms. There are also payment methods that will make Bitcoin transactions easier for you, from cash to credit cards, wire transfers, and other digital currencies.

If you want to buy a Bitcoin token, factors you need to put into consideration are who is the seller? How urgently do you need Bitcoin? What region are you buying from? After answering these questions, you then can determine how you want to purchase the token. Below is a step by step guide:

  1. Create a Bitcoin wallet. Opening a wallet is pretty easy, it is just like opening a bank account.
  2. Decide whether you want a person-to-person marketplace or exchange.
  3. Decide on the amount of Bitcoin to be purchased, then enter your email and signup on the platform of your choice.
  4. Select your payment method for cash deposits. Then you will see a list of payment options on the left-hand side of the page in which you will see Walmart2Walmart listed.
  5. Choose a payment method for your cash deposit, you’ll be given a list of numerous payment methods, pick the option that best suits you.
  6. Once you have an account, you can go ahead and acquire your cryptocurrency.

Step One: Get a bitcoin wallet

The two essential trade strategies are you purchase bitcoin then and hold, or trading. If your plan is to hold, then you have to be mindful of the type of wallet you are getting. One mistake traders make is holding your Bitcoin on an exchange; this is a risky way to go about investing in cryptocurrency.

Your choice of cryptocurrency wallet is important because blockchain technology means everybody’s balance and address are public. A high value of Bitcoin in your wallet makes you a target for hackers, scammers, and thieves. Fund your wallet using your credit card, then buy when Bitcoin’s price is favorable or you can choose to trade on an exchange.

Step Two: Choose an exchange

Different countries have a cryptocurrency exchange that favors that region, for instance, US, UK, and Canadian customers, Coinbase is the most popular cryptocurrency exchange which serves both as a hot wallet and a software wallet.

Before you start investing, do a little research on the platform that best suits your region. On these crypto exchange platforms, you can easily see Bitcoin price as well as that of other crypto coins.

How to Invest in Bitcoin 2

Once you have chosen the crypto wallet of your choice, the next step is to fund the wallet, there are different ways to go about this, you can choose between cash, credit or debit cards, Bitcoin cards, wire transfers, or other cryptocurrencies.

It is important to know that even if two exchanges are offering similar cryptocurrencies, their services are never the same, these little details shouldn’t be overlooked. 

Bitcoin rally, Bitcoin’s value, asset class, Bitcoin’s volatility, and cryptocurrency trading are useful concepts Bitcoin investors should be familiar with. The key point here is that you should take the cryptocurrency market as a combination of an online bank, and stocks that are volatile in order to make an informed financial decision as a Bitcoin investor. So when investing in Bitcoin, you should be ready to either gain or lose your personal finance (quantitative easing).

Step Three: Place your order

There are numerous ways for you to actually buy Bitcoin, one of the easiest ways is to place your order directly on an exchange. You don’t necessarily have to stick to the digital currency exchange, just like I mentioned earlier, you can buy and sell Bitcoin from people who are willing to trade. But if you want to use an exchange, you’ll need your bank account or a credit card. At any time, you can decide to sell Bitcoin back for USD or other cryptocurrencies. 

In most countries where Bitcoin is banned that usually means that financial institutions are not allowed to perform any transaction involving Bitcoin, which doesn’t include private citizens. Buying bitcoins is more than a hobby. There are also Bitcoin ATMs, which are more like a standalone electronic Bitcoin exchange, and can be found mostly in big cities and malls; you’ll certainly find one if you are in New York. Before using this ATM, you’ll need a wallet. 

Bitcoin ATMs are usually issued too, so if you are in a big city like New York, you might want to give the Bitcoin ATM a try. Besides, it is no different from your regular money.

Hardware Bitcoin Wallets

The hardware wallet offers better security from theft and hacking. With it, you will easily be able to transact Bitcoin and other cryptocurrencies. Especially if you are holding thousands of dollars worth. 

How to Invest in Bitcoin 3

Rather than save your millions worth of Bitcoin on just any online wallet, you can make it more secure by investing in an offline wallet. 

A hardware wallet will give you total control over your private key. Crypto investment comes with some challenges. It’s just like the stock market but more volatile. If you want to buy or sell crypto, an exchange is not a good place to store your investment.

Digital Bitcoin Wallets

If you have ever owned crypto, or if you are into Bitcoin mining, then there’s a big chance that you are already familiar with digital Bitcoin wallets. It is just like your regular bank account, a place where you can store your token after a Bitcoin transaction. You can either buy Bitcoins using fiat currency, then transfer it directly into your wallet or from a crypto exchange. 

Bitcoin trading requires a digital wallet because we cannot trust the exchange platform. Digital currency is prone to hacking and theft. In addition, cryptocurrency investing and the Bitcoin marketplace is risky.

So, if you are trading with a Bitcoin ETF, a Bitcoin miner, or you are buying, investing, or trading Bitcoin, you need a digital wallet.

Bitcoin Investments FAQs

How much does it cost to buy 1 Bitcoin?

The market price of Bitcoin icould be paired to the price of the dollar, however, the specific price of Bitcoin is not stable, it fluctuates a lot, that’s probably one reason why Bitcoin is yet to become a legal tender. This lack of stability makes Bitcoin an uncertain store of value. Bitcoin can be worth $10k in January and $5k in March. It’s important that you follow the latest crypto news and trends to stay up-to-date with Bitcoin prices. 

What is the minimum amount to invest in Bitcoin?

There’s no minimum amount as long as you can find someone willing to sell. It all comes down to the exchange or the broker. If they allow you to trade the lowest price, there’s nothing stopping you. However, before you invest, apply the rule of don’t invest more than you can lose. It is cliche but still remains relevant. 

We are silently wishing and hoping that Bitcoin can miraculously hit another mega surge like it did in 2017. But if we are realistic, that’s only wishful thinking as a lot of regulatory measures have been put in place to prevent such surges again. However, every once in a while, there’s a tendency for Bitcoin to do 20 to 30% jumps in valuation. 

What’s the best way to invest in Bitcoin?

The first thing to do here is to ask yourself, what are my exact needs and purpose? Buying Bitcoin is not just done randomly and you should be investing in Bitcoin only after doing thorough planning and research. 

There are different ways of investing in Bitcoin, from holding to trading, you can also try out Bitcoin Investment Trust (OTC: GBTC). OTC was designed to make the entire Bitcoin trading process easier. It becomes as easy as buying and selling stocks and ETF shares. 

As a cryptocurrency investor or an institutional investor, you are one step away from becoming a Bitcoin millionaire if you make the right investment decision. Virtual currency just like the stock market strives for quality financial decisions.

How to avoid scam Bitcoin investments?

It’s simple, once promises are made which seem too good to be true, there’s a big chance it’s going to turn out to be a scam. Imagine a project promising something for nothing, that’s quite impossible. Even with automated and algorithmic trading systems, they are not reliable too, so there is a need to watch out. 

Since the introduction of cryptocurrency investment, there have been lots of scam projects trying to rob people of their digital assets, examples are Onecoin. This was the biggest cryptocurrency investment scam to date. 

Key takeaways on how to invest in Bitcoin

  1. If you invest in Bitcoin out of ignorance you are bound to fail, this makes it essential for you to understand the entire process before putting a penny. 
  2. Research is important, it will help you avoid scams and help you understand everything about blockchain technology, crypto, and Bitcoin. Your Bitcoin fund is not safe until you know how an investment is done.
  3. Knowing the right time to buy Bitcoin is equally as important as other investment strategies. 
  4. Making Bitcoin Investment a passive source of income is good, but if it starts yielding more than your active income, there’s no harm in investing full time into Bitcoin. 
  5. Financial experts advise investors to invest over 50% of their capital for various investments, on the other hand, buy Bitcoin at a price that you can afford to lose, and think of it as a credit card, a source where you can always fall back on. 

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.cryptopolitan.com/how-to-invest-in-bitcoin/

Blockchain

Terra (LUNA) Price Prediction 2021-2025: Will LUNA Hit $25 by 2021?

Terra (LUNA) Price Prediction 2021-2025: Will LUNA Hit $25 by 2021?

Rate this post When Terra (LUNA) was introduced, algorithmic stablecoins became big news in the DeFi sector. It contributes to the development of a decentralized financial infrastructure by allowing you to easily spend crypto with businesses, generate stablecoin income, and replace the majority of your banking needs with a single DeFi protocol. Terra’s blockchain system introduces the sector to a variety of new ideas and concepts. Moreover, the network employs a stablecoin protocol, native token, oracle system, and smart contracts to provide individuals with programmable money for the internet. Terra (LUNA) Price Prediction 2021-2015 is the focus of this article. Further, if you plan to make a large investment or hold the LUNA for a long time, this article will give you an idea about your investment’s expected growth. Let’s head to the next sections to explore the dynamics of LUNA. What Is Terra (LUNA)? Terra (LUNA) was born in the cryptocurrency market in January 2018. The network’s founders, Daniel Shin and Do Kwon, aspired to establish a new sort of ‘intelligent currency’ that could represent the adaptability of the modern economy. Terraform Labs now has Kwon as its CEO. Terra’s ultimate goal is to use DeFi technology and stablecoin cryptocurrencies to challenge traditional banking. Moreover, Terra-powered CHAI (a payments app) has already made significant progress in this area. Terra (LUNA) is a decentralized finance platform that employs blockchain technology to provide users with predicted internet assets, a stablecoin protocol, a native token, an oracle system, and smart contracts. Also, in the project, there are particular long-term coin solutions that can be resolved immediately. Terra uses a price stability algorithm to achieve this goal, which adjusts an asset’s monetary supply on a regular basis to maintain its value. Customers can benefit from lower prices, superior stability, solid financial features, and transparent cross-border transactions, thanks to Terra. The Terra Ecosystem’s native coin is LUNA. This coin is used for several network functions and is primarily utilized in collateral frameworks to assure the price stability of the network’s stable coins. Staking in the Terra ecosystem is also essential for locking in value. Are you feeling a little lost? Don’t worry; the next section will walk you through how Terra works. How Terra (LUNA) works? Terra’s objective is to popularise cryptocurrency payments and build a vast payment ecosystem that provides a single platform for banking, credit, and other financial needs. Stablecoins can help Terra achieve this goal because they: Allows simple, low-cost transactions. Keep your purchasing power. The gap between the cost of issuing an asset and the asset’s face value is known as seigniorage. The $0.95 difference is profit if the US government spends $0.05 to generate a $1 banknote. Terra gains every time a stablecoin is algorithmically issued owing to demand. It invests the revenues in the Terra seigniorage pool to fund Terra ecological projects and Terra users receive rewards. What Are the Advantages of Terra Trades for LUNA Investors? Transaction volume on the Terra Blockchain is created through arbitrage trading activity that reduces price volatility for Terra stablecoins like UST. LUNA stakeholder value is captured in three ways with each transaction:- Although small, gas fees are added to transactions and paid to LUNA stakeholders. Every transaction is subject to a tax fee ranging from 0.1 percent to one percent, which is paid to LUNA stakeholders. Seigniorage rewards validators while also benefiting the communal pool. In sum, the economic activity of contracting and growing Terra stablecoin supply benefits LUNA stakers as well as the Terra ecosystem as a whole. What Problems Does Terra (LUNA) Solve? Terra aims to solve many of the problems that the world’s leading stablecoins are now facing. For one thing, the network intends to reduce market monopolization. Terra’s protocol, unlike the competition, works across many Blockchains, and through its open financial infrastructure, the network also aims to remove technical constraints on these assets. Terra (LUNA) offers several advantages to the market. It’s an excellent platform for the digital economy because it’s decentralized and permissionless. The network provides an infrastructure that makes Dapp, low-cost logistics, and programmable payments. Terra is all about collaboration. The Cosmos IBC connects numerous chains, allowing the network to run on many chains such as Ethereum and Solana. Programmers can use the network to create smart contracts in Go, Rust, or AssemblyScript. Terra, in particular, uses a single blockchain to decrease or eliminate the need for credit banks, card networks, and payment gateways. Price Analysis of the LUNA Holding LUNA and participating in the Terra ecosystem rewards community members, just as the Terra whitepaper promised. As a result, Terra is rapidly expanding in terms of both community and acceptance. Terra also has MemePay and PayWithTerra popular Mongolian payment software, in addition to CHAI, making it a significant DeFi project of the Cryptocurrency era. However, … Continued

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Table of Contents

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When Terra (LUNA) was introduced, algorithmic stablecoins became big news in the DeFi sector. It contributes to the development of a decentralized financial infrastructure by allowing you to easily spend crypto with businesses, generate stablecoin income, and replace the majority of your banking needs with a single DeFi protocol.

Terra’s blockchain system introduces the sector to a variety of new ideas and concepts. Moreover, the network employs a stablecoin protocol, native token, oracle system, and smart contracts to provide individuals with programmable money for the internet.

Terra (LUNA) Price Prediction 2021-2015 is the focus of this article. Further, if you plan to make a large investment or hold the LUNA for a long time, this article will give you an idea about your investment’s expected growth.

Let’s head to the next sections to explore the dynamics of LUNA.

What Is Terra (LUNA)?

Terra (LUNA) was born in the cryptocurrency market in January 2018. The network’s founders, Daniel Shin and Do Kwon, aspired to establish a new sort of ‘intelligent currency’ that could represent the adaptability of the modern economy. Terraform Labs now has Kwon as its CEO.

Terra’s ultimate goal is to use DeFi technology and stablecoin cryptocurrencies to challenge traditional banking. Moreover, Terra-powered CHAI (a payments app) has already made significant progress in this area.

Terra (LUNA) is a decentralized finance platform that employs blockchain technology to provide users with predicted internet assets, a stablecoin protocol, a native token, an oracle system, and smart contracts. Also, in the project, there are particular long-term coin solutions that can be resolved immediately.

Terra uses a price stability algorithm to achieve this goal, which adjusts an asset’s monetary supply on a regular basis to maintain its value. Customers can benefit from lower prices, superior stability, solid financial features, and transparent cross-border transactions, thanks to Terra.

The Terra Ecosystem’s native coin is LUNA. This coin is used for several network functions and is primarily utilized in collateral frameworks to assure the price stability of the network’s stable coins. Staking in the Terra ecosystem is also essential for locking in value.

Are you feeling a little lost? Don’t worry; the next section will walk you through how Terra works.

How Terra (LUNA) works?

Terra’s objective is to popularise cryptocurrency payments and build a vast payment ecosystem that provides a single platform for banking, credit, and other financial needs.

Stablecoins can help Terra achieve this goal because they:

  • Allows simple, low-cost transactions.
  • Keep your purchasing power.

The gap between the cost of issuing an asset and the asset’s face value is known as seigniorage. The $0.95 difference is profit if the US government spends $0.05 to generate a $1 banknote.

READ  Bitcoin Toppling at The Top, Still Appealing to Investors: eToro

Terra gains every time a stablecoin is algorithmically issued owing to demand. It invests the revenues in the Terra seigniorage pool to fund Terra ecological projects and Terra users receive rewards.

What Are the Advantages of Terra Trades for LUNA Investors?

Transaction volume on the Terra Blockchain is created through arbitrage trading activity that reduces price volatility for Terra stablecoins like UST. LUNA stakeholder value is captured in three ways with each transaction:-

  • Although small, gas fees are added to transactions and paid to LUNA stakeholders.
  • Every transaction is subject to a tax fee ranging from 0.1 percent to one percent, which is paid to LUNA stakeholders.
  • Seigniorage rewards validators while also benefiting the communal pool.

In sum, the economic activity of contracting and growing Terra stablecoin supply benefits LUNA stakers as well as the Terra ecosystem as a whole.

What Problems Does Terra (LUNA) Solve?

Terra aims to solve many of the problems that the world’s leading stablecoins are now facing. For one thing, the network intends to reduce market monopolization. Terra’s protocol, unlike the competition, works across many Blockchains, and through its open financial infrastructure, the network also aims to remove technical constraints on these assets.

Terra (LUNA) offers several advantages to the market. It’s an excellent platform for the digital economy because it’s decentralized and permissionless. The network provides an infrastructure that makes Dapp, low-cost logistics, and programmable payments.

Terra is all about collaboration. The Cosmos IBC connects numerous chains, allowing the network to run on many chains such as Ethereum and Solana.

Programmers can use the network to create smart contracts in Go, Rust, or AssemblyScript. Terra, in particular, uses a single blockchain to decrease or eliminate the need for credit banks, card networks, and payment gateways.

Price Analysis of the LUNA

Holding LUNA and participating in the Terra ecosystem rewards community members, just as the Terra whitepaper promised. As a result, Terra is rapidly expanding in terms of both community and acceptance.

Terra also has MemePay and PayWithTerra popular Mongolian payment software, in addition to CHAI, making it a significant DeFi project of the Cryptocurrency era.

However, a rise in the price of Terra (LUNA) remains short-lived as the LUNA currency has once again turned downward and appears to be on the verge of falling even worse.

Let’s take a look at LUNA’s historical price to see if it deserves a spot in your portfolio.

Flashback: Terra (LUNA) Historical Analysis

The value of the cryptocurrency Terra (LUNA) has skyrocketed since its debut. Terra cultivates optimism, making hodlers’ life easier by providing programmable money. Buyers seemed to be hyping the potential Anchor Protocol, a cost-effective network that offers low-volatility payouts in addition to digital money.

The LUNA coin traded between $1 and $1.5 for five months after its launch in 2019. By January 2020, the Coin has plummeted to $0.22, a new all-time low. Not until the end of January, when the trading price was $0.18.

READ  LUNA Soared Nearly 38% During Last Week, Downswing Ahead – Technical Analysis

For the next few months, the Coin tried but failed to break through the $0.20 barrier. By July 24, the commute had seen a massive increase in Terra Luna’s pricing.

When the price of 1 Terra Luna hit over $0.53 in August 2020, regaining hodlers’ interest back. However, it was a temporary joy as the price of LUNA decreased to $0.38 in October 2020. The entire year of 2020 was not kind to LUNA.

Terra (LUNA) Price Prediction 2021

Throughout the year, LUNA will continue to extend, grow, and innovate. As per the algorithms, the price of Terra (LUNA) might be around $25.45 by 2021, with a minimum price of $22. There will be a large number of lows and highs. However, 2021 seems to be a good year for LUNA.

Terra (LUNA) Price Prediction 2022

Terra Luna plans to continue on its current path, with a new and redesigned UI and widespread Blockchain use. The price of the 1 Terra (LUNA) might possibly be around $30 in 2022, according to computational research.

Terra (LUNA) Price Prediction 2023

Many things influence the success of a coin, from the team to the present market situation. However, there is no way of guessing which Coin will be a profitable investment. Terra (LUNA) has, fortunately, a substantial price history. Terra coin may show some resistance in 2023 as its price is expected to fluctuate between $30 and $40. Nonetheless, the price prognosis for Terra coin cannot be guaranteed.

Terra (LUNA) Price Prediction 2024

The performance of LUNA as a market maker will drive a rate of roughly $50 in 2024. The price of LUNA is also affected by regional variations. As a result of this, one thing that can be assured about the LUNA is that the stars are bright for Terra’s native coin as it strives to achieve its futuristic ambitions.

Terra (LUNA) Price Prediction 2025

The year 2025 will be a remarkable year for LUNA as its price is expected to skyrocket and reach $58. Of course, this effect will be a result of the high demand for the coin by the end of 2025.

Terra (LUNA) Price Prediction: Market Sentiment

Terra (LUNA) has unquestionably emerged as the market leader, with a market capitalization of $5.68 billion in the last 24-hours. Varied media sites have different perspectives on the LUNA coin’s future. Let’s see how easy things go for LUNA.

Tokeneo

By the end of 2021, according to Tokeneo, the price of the LUNA will fluctuate between $35 and $50.

Long Forecast

According to Long Forecast, LUNA’s price will rise to $24 by the end of 2021 with a minimum price of $21.45.

Wallet Investor

A long-term gain is projected, according to Wallet Investors’ estimates. They anticipate that the price of LUNA for 2026 will be $198.271. The revenue is estimated to reach around +1033.17 percent after a 5-year investment.

DigitalCoinPrice

Digital Coin price predicted that 2021 will end with a trade price of $24.2. The average price in 2022-2024 is predicted to be between $25 and $40. However, if Bitcoin’s price rises in any way, the costs may rise as well. According to DigitalCoinPrice, LUNA will easily break through the $50 barrier by 2025.

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Reddit Community

The coin provides both long-term and short-term benefits because it is built on a logical algorithm. Reddit Community predicted that by the end of 2022, the LUNA price might be approximately $35.40.

GOV Capital

According to Gov Capital’s Terra (LUNA) price forecast, the coin will trade at $46.07 by the end of 2021 and $273 in five years. Yeah, that’s a lot of optimism to digest!

30 Rates

By the end of 2021, the LUNA price is forecasted to be $22 as per 30 Rates.

Our Terra (LUNA) Price prediction

Given that LUNA is a new project with limited experience in the Crypto and DeFi community, it is up to the leadership team to guide it on the right path, in order to achieve the targeted pricing and growth.

The LUNA coin has had its ups and downs in the past such as a downtrend in 2020. However, the team is always improving its products, which makes Terra a valuable platform for decentralized space.

So, Is LUNA a good investment for 2021 and beyond?

Yes, it is a good investment for 2021. Since the beginning of the year, the price of Terra (LUNA) has risen dramatically. Long-term investment in this cryptocurrency appears rewarding, based on our predictions. If dedicated hodlers continue to believe in cryptocurrency, the token will undoubtedly gain in value and have a bright future ahead of it. We projected the price to be around $23 by the end of 2021.

If you are looking to keep a programmable asset in your portfolio basket, Terra is definitely a keeper. Don’t forget that it will provide benefits in the long run!

Therefore, it is also a good idea to do your homework with all rights reserved.

Conclusion

People will buy and sell things in the future on Terra using digital currencies stored in Blockchain-based wallets (mobile phones). Multi-fiat stablecoins that are automatically swapped behind the scenes and on-chain will be accepted by merchants. And, similar to how you might rent out spare condo space on Airbnb, you’ll earn interest on unused cash by keeping it in Terra DeFi applications.

Yeah, that sounds interesting! But, do not forget that where there is a green light, a red flag is also the critical native.

It is because the Crypto industry is highly competitive and difficult to anticipate in the long run, it’s critical to learn more about Terra’s fundamental concepts and gauge its success before deciding to invest in it. Mere, understanding of Terra (LUNA) price prediction is not enough to put Terra in your investment basket.

This article solely aims to guide readers about Terra (LUNA) DeFi coin and represents the author’s own views. It does not aim to influence or guide anyone to make an investment in LUNA or other Crypto assets. Cryptoknowmics always suggest readers and investors do their homework before deciding to invest in securities

#LUNA Price Prediction #Terra

Source: https://www.cryptoknowmics.com/news/terra-luna-price-prediction-2021-2025-will-luna-hit-25-by-2021/

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Is Bitcoin losing market traction or gaining momentum?

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Bitcoin is one of the biggest store of value assets existing at the moment. Naturally, it also becomes the point of focus for the majority. While in most cases such attention would be for the better of the coin, in the case of BTC, the last few months have been rather unpleasant. In the span of 2 months, BTC rallied to its ATH above $60k and also crashed back down to $33k. At the time of writing the Bitcoin was trading at $38,759. 

What about investors?

That is exactly what needs to be addressed as short-term metrics and community sentiment at present seem bullish for Bitcoin. It is necessary to observe long-term metrics and understand price movements. 

Bitcoin stands undervalued due to negative deflection | Source: Glassnode

The rise and fall of profitable supply | Source: Glassnode

According to the Stock-to-Flow Deflection model, presently Bitcoin is quite undervalued as the negative deflection on the model has been the highest ever. Similarly, BTC’s total supply in profit has jumped twice in the last 10 days. First owing to El Salvador’s adoption on June 8 and the second time during the Sunday, June 13 rally. Furthermore, Microstrategy just announced the sale of $1 billion of its shares in order to acquire more Bitcoin. This comes just a few days after the company finished its $500 million funding round which was already targeted towards purchasing Bitcoin. 

Is it about to rain money?

No. While all of this sounds pretty convincing that BTC will provide huge ROIs, one should remember that all that glitters is not gold, or digital gold in this case. In the long-term analysis, BTC has been performing rather weakly. The coin has set record lows in:- ( As of June 16 )

  1. Exchange Outflow Volume  – 17-month low of 1,255.315 BTC.
  2. Miners Outflow Volume – 5-month low of $1.72 million.
  3. Miners’ Outflow Volume – 1-month low of 47.163 BTC.

Even BTC’s profitable supply fell down as soon as the Sunday rally came to an end (ref. Total Supply in Profit chart). At the time of writing, Bitcoin’s price movement displayed very clear signs of a downtrend (White dotted line of Parabolic SAR forming above the candlesticks). More so, a bearish crossover has been dominating MACD indicator on the 4-hour chart.

Bitcoin’s price movement at press time | Source: BTC/USD – TradingView

All these indicators show that for the while Bitcoin will remain consolidated under the $41,500 resistance level. Besides, the coin has way too many resistance levels to break in order to get close to its ATH. Thus, investors should be wary about any immediate investment as they may not gain back as much ROI as they expect.


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Source: https://ambcrypto.com/is-bitcoin-losing-market-traction-or-gaining-momentum

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Ric Edelman: Bitcoin the Most Impactful Innovation Since the Internet, But There’s A Problem

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Bitcoin the Most Impactful Innovation Since the Internet, But Not Understood Well Enough Among Finance Professionals, Says Ric Edelman

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Founder of Edelman Financial Engines Ric Edelman says that many financial professionals do not understand Bitcoin and other cryptocurrencies. This is despite them being educated, in business for a long time, and having more experience in finance, he said. This is one of the things he has learned after being engaged in the digital assets communities since 2012. 

Using Bitcoin as an example of the “thousands” of other cryptocurrencies, Edelman says cryptocurrencies are a different asset class that has nothing in common with stock, bonds, oil, and other traditional assets “we are familiar with.” Speaking to Yahoo Finance, Edelman praises crypto saying it provides a “tremendous investment opportunity.”

“Blockchain technology and its derivatives of digital assets and NFTs and CBDCs and tokens… are the most impactful commercial innovations since the development of the internet itself,” he said. “This is huge. It’s going to have a tremendous impact on global commerce.”

Unfortunately, according to Edelman, most financial experts do not realize this. Yet one of the focuses of a financial adviser is looking forward to the future, he says.

Not surprising that a recent survey by Opinium found that 90% of surveyed 200 independent financial advisers in the U.K. have negative sentiments about cryptocurrencies. Yet, one-third of them reported having received inquiries related to cryptocurrencies from their clients this year.

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That means almost an equal percentage of financial advisers would not advise their clients to invest in crypto. It is understood that most financial advisers stick to less risky and regulated asset classes.  

Opinium research chief Alexa Nightingale told IFA Magazine that, given their current approach towards cryptocurrencies, it would be interesting to see how the financial advisers will deal with the fact that cryptocurrency “investments are becoming more mainstream.”

According to him, Bitcoin and other cryptocurrencies are “ideal” inclusion in a diversified investment portfolio to reduce investment risk. This is due to the fact that they are completely different in nature from other asset classes commonly included in investment portfolios. He invented the 1% allocation idea for Bitcoin investment for those wanting to include cryptos in their diversified investment portfolios.

“A 1% or 2% allocation can materially improve the returns but if something goes bad, it’s only one percent, it won’t hurt you,” he said.”

He said this is confirmed by a study done by Stanford. Allocating a 1% exposes them to price-related benefits due to volatility while still reducing exposure to losses due to the same volatility. Hence investors can start looking at it with open eyes and curiosity and learn the game as they go although that does not apply to all cryptocurrencies. He advises them to start with Bitcoin and Ethereum.

Edelman said that he is helping his colleagues understand this completely new asset class and the need for them to consider its potential as a portfolio diversifier. He said since portfolio diversification and rebalancing are popular strategies among independent financial advisers, BTC should be an obvious choice for the portfolio.

“If you love rebalancing a portfolio over time, you love volatile investments because volatility creates opportunity for rebalancing. You buy low and sell high and that a wonderful combination for wealth creation. So advisers need to get rid of their bias they need to be willing to look at this with open eyes and genuine curiosity. And the more you learn about that this tact, the more you understand the commercial use cases.”

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://zycrypto.com/bitcoin-the-most-impactful-innovation-since-the-internet-but-not-understood-well-enough-among-finance-professionals-says-ric-edelman/

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