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Paper, PC, or Online? How you can choose a wallet

When people hear the word cryptocurrency, the thought “complicated and unexpected” comes into mind. Despite being such a good investment, cryptocurrency is not as famous as it should be. If you want to take its worth into perspective, Bitcoin used to be around $12,000 in mid-2019 when the coronavirus pandemic started, and it climbed to […]

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When people hear the word cryptocurrency, the thought “complicated and unexpected” comes into mind. Despite being such a good investment, cryptocurrency is not as famous as it should be. If you want to take its worth into perspective, Bitcoin used to be around $12,000 in mid-2019 when the coronavirus pandemic started, and it climbed to a record high of around $40,000 at the start of 2021. 

Seeing its steep jump, when you explain these figures to a trader, he would claim that crypto is the best trading platform right now. However, many people claim that crypto is not such a good investment due to its volatility compared to fiat currencies. In this article, I am going to highlight some important tips and tricks that are going to help you stay on top of such volatility and make sure that any investment you make in crypto earns you the best profits. So, without further ado, let’s take a deep look into what crypto is and how to make a calculated investment. 

Source: Jamshed

Understand Everything About Cryptocurrency

The very first thing that you must do when entering cryptocurrency is to make sure that you know and understand everything about cryptocurrency. Cryptocurrency is a very large domain with a lot of little things that make a huge difference. If you want to make huge profits out of crypto trading, you need to familiarize yourself with the details so that you don’t make obvious mistakes. Notice little things like how the currency flows and what the safe time to make an investment is so that you get on a path to success.  

Ignore the Noise

If you have been trading for a long time, you will be pretty familiar with this phenomenon. It doesn’t matter if you are trading crypto or shares; there will be a lot of people telling you what’s wrong and what’s right. The best amongst us are the ones who research the market and then trust their instincts so that they don’t have anyone but themselves to rely on. Moreover, you will also see a lot of media outlets and people term crypto as an over-hyped pyramid scheme. If you want to make the most profits, you have to ignore such things and keep doing what you do best. 

Expect the Unexpected 

When it comes to trading crypto, if there is one thing that you should expect, it is to expect nothing. You have to keep in mind that when you trade in crypto, you must keep the volatility of the market in mind. A major difference between beginner crypto traders and experienced ones is that those who have just begun trading in crypto don’t know how to keep up with the market. Over time you will understand how the market works and make rational trades instead of acting on your emotions. 

Perform Due Diligence before Making a Trade 

As crypto trading is not for the weak-hearted, you must perform your due diligence before finalizing anything. Cryptocurrency is a high-risk, high-reward kind of trading, which is why you have to make sure that you will not back down in the middle. In this modern age of technology, performing due diligence has become fairly easy as you can easily invest in software programs and tools through which you can find out market trends. Just like having a map in your hand, you will be able to guide yourself through thick and thin and be prepared for the journey. 

Don’t Place All Your Eggs in One Basket 

A huge mistake that even the most experienced traders make is placing too much faith in their abilities and then lose a lot of money. When it comes to cryptocurrency investment, diversification is the key. If you go to any financial advisor, he will recommend you to diversify your investment profile as much as you can. So, an essential part of any cryptocurrency portfolio is that you are ready to seize the opportunity and invest in multiple channels so that you can get the best of both worlds

Find a Reputable News Source

Last but not least, if you want to be successful in trading cryptocurrency, you have to make use of all the help you can get. On top of making sure that you know every in and out about cryptocurrency, you have to get opinions from different people. A good way to do that is to find a reputable news source that publishes authentic and consistent information about cryptocurrency. Where there will always be opposing opinions for cryptocurrency, there are also a lot of crypto enthusiasts who make it their life’s work to study crypto and find the patterns that motivate its volatility. If you want to be successful, you should stick to such news sources and gain insight through them.

Disclaimer: This article is a paid post and must not be considered as news/advice. 

Source: https://ambcrypto.com/paper-pc-or-online-how-you-can-choose-a-wallet/

Blockchain

JP Morgan: Put 1% In Bitcoin as a Hedge as Demand is ‘Massively Outstripping’ Supply

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The narrative that investors should allocate 1% of their portfolio in bitcoin as a hedge has received support from strategists representing the giant US multinational investment bank – JPMorgan Chase & Co.

The analysts also highlighted the evaporating liquid supply, as giant institutions and corporations are purchasing substantial quantities rather rapidly.

JPM Suggest: Put 1% in BTC

Among the most popular topics of discussion within the community is how big should be the percentage investors allocate to bitcoin. The narrative ranges from BTC maximalists saying that all eggs should be in one bitcoin basket to others advocating for a broader diversification.

However, very few outsiders of the crypto community had ever suggested any BTC exposure until last year. Perhaps the first one to go public with it was the legendary legacy investor Paul Tudor Jones III following the COVID-19-induced market crash.

Since then, more representatives of the traditional financial field have joined, and the latest ones are strategists from JPMorgan.

Cited by Bloomberg, they seemed somewhat cautious but still indicated that investors should look into BTC for a possible hedge.

“In a multi-asset portfolio, investors can likely add up to 1% of their allocation to cryptocurrencies in order to achieve any efficiency gain in the overall risk-adjusted returns of the portfolio.”

However, the analysts advised investors to explore other fiat currencies, such as the yen or the dollar, if they want to hedge a macro event and not cryptocurrencies as they are “investment vehicles and not funding currencies.”

BTC’s Declining Liquid Supply

JPM also touched upon another compelling topic, which has surged in popularity in the past several months – BTC’s decreasing liquid supply.

After all, numerous giant names joined the BTC craze since the summer of 2020. As of now, MicroStrategy owns over 90,000 bitcoins, Grayscale is purchasing new coins at record levels, Tesla allocated $1.5 billion in the asset, and numerous institutions bought in as well.

Simultaneously, the production rate of newly-created bitcoins was slashed in half in May 2020 following the third-ever halving. Consequently, the skyrocketing demand and the decreasing liquid supply affected the asset price, which is up by 50% since the start of the year – even after the latest massive correction.

“Through the insatiable buy-side pressure from exchange-traded fund issuers, close-ended funds, and large public corporations adding Bitcoin to their positions, demand is massively outstripping supply.” – concluded JPM’s strategists.

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Source: https://cryptopotato.com/jp-morgan-put-1-in-bitcoin-as-a-hedge-as-demand-is-massively-outstripping-supply/

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Blockchain

Monero, Ontology, Synthetix Price Analysis: 26 February

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Monero was treading water around the $200-level, with the crypto likely to give way to a wave of selling pressure. Ontology fell under multiple levels of former support over the last few days and could break past one or two more. Finally, Synthetix saw a region of demand flipped to one of supply.

Monero [XMR]

Monero, Ontology, Synthetix Price Analysis: 26 February

Source: XMR/USDT on TradingView

The RSI fell below 50 and tested it as resistance on the hourly chart after XMR’s bulls attempted to keep the price above $200. This could be an uphill battle, especially if Bitcoin continues to drop.

Over the next few days, $220 and $180 are the levels to watch out for. Climbing above $220 would imply that a recovery has begun for XMR, while dropping below its previous local low of $180 would see XMR shed value further.

The Stochastic RSI was recovering from oversold territory over the past few hours. The trading volume rose as the price fell, pointing to the fact that strong bearish market sentiment was still in play.

Ontology [ONT]

Monero, Ontology, Synthetix Price Analysis: 26 February

Source: ONT/USDT on TradingView

The Directional Movement Index showed a strong bearish trend was in progress as the ADX (yellow) rose above 20 alongside the -DI (pink). The Awesome Oscillator also underlined southbound market momentum.

The next levels of interest for ONT were the $0.75 and the $0.68-support levels. A sign of some strength from the bears, such as a double top, would be required before any coin can be considered to be on the road to recovery.

Synthetix [SNX]

Monero, Ontology, Synthetix Price Analysis: 26 February

Source: SNX/USDT on TradingView

On the hourly chart, the fractals were used to give some further importance to the points that formed the descending channel’s boundaries. As can be seen, SNX closed a trading session under the channel and rose to retest the $18-region as one of supply, formerly demand.

Having confirmed this dip, the market’s bears forced the price lower. The next levels of support for SNX lay at $16 and $14, both representing drops of 10% and 21% from where the price was trading, at the time of writing.

The MACD noted strong bearish momentum, as did the 8-period and 20-period exponential moving averages (blue and white respectively).


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Source: https://ambcrypto.com/monero-ontology-synthetix-price-analysis-26-february

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This Bitcoin metric may be key to Gold’s flippening in the future

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At the time of writing, Bitcoin’s price was falling again, with the cryptocurrency’s performance breaking from its rangebound behavior between $49,000 and $51,000 yesterday. And yet, despite the scale of the drop, many still expected recovery to come soon enough. In fact, a few signs were visible just before BTC’s latest fall below $47,000.

Consider this – At the time, the volatility was up to 16%, rising by 2% post the dip from its ATH of $58,330. While it’s almost given that Bitcoin will soon bounce back, it’s worth examining what will drive such recovery. On CMC’s latest podcast, Jeff Ross of Vailshire Cap spoke about the prevailing narrative during this market cycle. According to him, the narrative of Gold 2.0 is the one that is playing out.

Gold has been repeatedly mentioned in popular narratives since the flippening of gold is seen by most as a major event. Since a majority of Gold bugs are key investors and hedge fund managers, there is potential market capitalization to tap into. After crossing the $1 trillion-mark, Bitcoin is even closer to $10 trillion, with the price following the S2F model like clockwork.

Gold’s S2F ratio was 62 while Bitcoin’s S2F was 52, at press time, and this may be one of the reasons for following S2F, despite the fact that many gold bugs will still find a reason to criticize BTC’s price action.

Will the narrative of Gold 2.0 play out this market cycle?

Source: Digitalk

The fact that Bitcoin’s annualized average daily volatility was observed to be above 120% and for Gold, it was a little over 20%, highlighted how the two are uncorrelated. Despite the two assets not being correlated post the decoupling in November 2020, the Gold 2.0 narrative is driving institutional investment inflows into Bitcoin. When Bitcoin’s S2F crosses 100, the flippening may occur and the comparisons between Gold and Bitcoin may cease to exist.

The cyclical movement of price, at the press time volatility of 16%, may continue in Bitcoin. In the last 24 hours alone, based on on-chain metrics, the trade volume has dropped by over 44% across exchanges. This drop in trade volume may be in response to the Bitcoin Options expiry on Deribit.

Previously, Options expiry events have had a significant impact on the price of the asset in the short-term. However, post the expiry, the price may sustain itself below its press time level, before recovering in a cyclical manner over the following month.

Will the narrative of Gold 2.0 play out this market cycle?

Source: Skew

Since this has emerged as a pattern in previous market cycles, it may repeat at least until the crypto’s price recovers and trades above the $55,000-level. A few days ago, the aggregate daily volume in BTC Futures on top exchanges was close to $180 billion. With a hike in volatility expected in the near-term, the figures for the same are likely to grow even more, especially if recovery is surely underway.


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Source: https://ambcrypto.com/this-bitcoin-metric-may-be-key-to-golds-flippening-in-the-future

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