Entrepreneur

May 21 2021

Investing Tips For Cryptocurrency Newcomers

Anytime you are a new entrant in a particular investing space or asset class, there are some things you should be doing to ensure you don’t, as they say, take a bath. Crypto is a complex asset for many reasons, both because of the market forces it is subject to as well as the nature of the underlying blockchain technology. This shouldn’t discourage you from making it part of your portfolio, but it should spur caution and careful initial investing. With that said, below are some important investing tips for cryptocurrency newcomers.

Start Small

Whenever you start investing in a new assets class, especially if you are just testing the waters and learning the fundamentals, is to start conservatively. This means allocating only a small percentage of your portfolio to it. While cryptocurrencies have gone up considerably over the last year, and are widely considered much more stable and predictable assets than they were a few years ago, they are still relatively unpredictable.

Many portfolio allocation models suggest starting as small as 0.5% of your total holdings in cryptocurrencies. You are obviously free to deviate from this as much or as little as you would like, but riskier assets like derivative products, fiat currencies and cryptocurrencies should always be treated with caution and carefully monitored, and even more so when you are just starting out. Additionally, any time you are getting acquainted with a new asset class or market, it is always good to subscribe to an investment research service to see what the experts are saying about a particular investment opportunity before making any allocation decisions.

Use a Simulator

If you are not quite ready to start putting real money into cryptocurrencies and would like a little more hand-holding before taking the final leap, you might consider spending some time experimenting with a trading simulator. There are many free simulators online that allow you to trade and observe the markets in real-time without having to risk actual capital. Many exchanges have their own, but there are good stand-alone programs as well.

A good way to get a lot out of these simulators is by using them to watch how the currencies you are interested in move in real-time. As the prices of your preferred currencies fluctuate, you can map those movements onto announcements and conversations you see taking place in the major cryptocurrency publications as well as on investor forums and comment sections of popular podcasts. This is how you get a feel for the markets, the forces driving crypto price movements, how to anticipate buy and sell opportunities and ultimately how to make the most out of your initial investment.

Look Beyond Bitcoin

Many new crypto investors make the mistake of assuming that Bitcoin is the only worthwhile crypto investment and some are even discouraged by the now stratospheric price of BTC, writing it off under the impression that it is no use investing in something that costs over $50,000 per coin. These sentiments are mistaken on two levels. You can, in fact, buy fractions of Bitcoins, so it is still possible to invest in BTC even if you don’t have tens or hundreds of thousands of dollars to spend on entire coins. Secondly, there is now a litany of high-performing, well-respected coins on the market that can be purchased. These include Ether, Ripple, Cardano and others.

Bitcoin is still the most widely-accepted cryptocurrency at businesses and institutions around the world, has the largest market cap and is the most commonly held coin by big investors, but there is money to be made in many of the other up-and-coming and competitor currencies as well. Part of being a good crypto investor is knowing how to spot the deals, including the potential diamonds in the rough, and learning to recognize value outside of the mainstream coins.

Consider a Cold Wallet

Your crypto wallet is where you store your various coins and it is the gateway to your holdings. Many exchanges come with their own proprietary wallets and there are plenty of third-party wallet providers out there as well. One of the biggest downsides with cryptocurrencies is that they are not insured, which means should someone hack into an exchange and drain investors’ wallets of their holdings–which has happened and continues to do so–there is not much recourse for them.

For this reason, many investors choose to store their assets in what is known as a “cold” wallet, or a hardware wallet. These are physical devices akin to USBs that keep your crypto data offline, which means it is no longer vulnerable to digital theft. It is, however, still vulnerable to physical threats, since a cold wallet can be lost, stolen or destroyed. If you lose a hardware wallet, it and its contents technically now belong to whoever finds it, and if it falls out of your pocket in the middle of nowhere, any assets it holds are lost for good.

Spread Your Investments Out Across Exchanges and Wallets

There are two main reasons why it is not a good idea to keep your cryptocurrencies in a single wallet. The first is that because the transactions of any single wallet are always visible to other investors, any time a wallet starts to accumulate significant holdings, it draws attention, and often from the kind of people you would rather not know how much money you have. Additionally, and as previously mentioned, if someone has access to your wallet, they essentially own your funds. Secondly, if you forget your key for whatever reason, and end up locked out of your wallet, those funds are essentially irretrievable.

Conclusion

There is every reason to believe that we are witnessing a pivotal moment in the history of blockchain and cryptocurrencies. What was once possible to dismiss as a fad is no longer the case and both retail and institutional investors the world over have been forced to take digital currencies seriously. There is still time and plenty of opportunities to enjoy capital gains with many of these assets, but making your foray requires careful planning, caution and understanding. Keep the above cryptocurrency investing tips in mind and ensure that you make the best financial decisions possible.

Investing Tips For Cryptocurrency Newcomers

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Apr 23 2021

WeWork to Begin Accepting Payments in Cryptocurrencies

According to the latest announcement, WeWork, the office-sharing giant, will start accepting payments in cryptocurrencies. In collaboration with Coinbase Global Inc and payment app Bitpay, the leading space provider WeWork, will expand its flexibility by employing cryptocurrencies for inbound and outbound transactions.

As per the announcement, WeWork will hold the cryptocurrency on its balance sheet and pay landlords and third-party partners in the form of cryptocurrencies using Coinbase, the largest U.S. cryptocurrency trading platform. Also, WeWork announced that Coinbase would be its first member company to use digital payment as payment for its membership.

WeWork mentioned that it will accept cryptocurrencies such as Bitcoin, Ethereum, USD Coin, Paxos and others as payment for its offerings and memberships.

WeWork is Offering an Innovative Payment Option to its Customers

As a part of the announcement, WeWork chief executive Sandeep Mathrani mentioned that the company needs to adapt to the needs of its expanding membership in the fintech industry and to service this “new economy.”

BitPay CEO Stephen Pair also mentioned that WeWork is providing a cheaper, more accessible, and innovative payment option compared to those of credit cards and taps a community valued at over $2 trillion.

WeWork Chairman and Softbank Group International CEO Marcelo Claure believes that WeWork’s announcement to start accepting cryptocurrencies indicates the company’s commitment to innovation and being a globally-focused business. He seems glad regarding the steps that WeWork is taking to recognize the value this technology can provide to its current and future members.

It was recently announced that the shared-office provider WeWork is expected to merge with a SPAC called BowX Acquisition Corp.

WeWork’s move is similar to Elon Musk’s Tesla, where the entrepreneur announced that people can now buy a Tesla with bitcoin, whereas people outside the country can buy a Tesla with bitcoin later in 2021. As cryptocurrencies are becoming increasingly popular as a form of payment, Venmo also announced that customers can now buy, hold and sell cryptocurrency directly within the Venmo app with as little as $1.

To get instant updates about blockchain certifications and become a blockchain expert, check out Blockchain Council. Get the clarity in blockchain technology that you are looking for.

WeWork to Begin Accepting Payments in Cryptocurrencies

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Apr 20 2021

Dogecoin Replaced XRP As The Fourth-Largest Coin

Dogecoin, which was created as a joke back in 2013 has reached a new record of around $0.43 early Monday. According to the reports, the digital currency had replaced XRP as the fourth-largest cryptocurrency by market capitalization when prices reached a new high.

At the time of writing, Dogecoin is trading at the rate of $0.3954 with a market capitalization of $51,062,091,441.

Dogecoin is a dog-themed digital currency invented by software engineers Billy Markus and Jackson Palmer on December 6, 2013. The idea behind inventing this digital currency was to design a payment system that is instant, fun, and free from traditional banking payments. Its official website describes itself as a fun and friendly internet currency. This cryptocurrency features the face of the Shiba Inu dog from the “Doge” meme as its logo and namesake.

DOGE’s Rally Raised Price Expectations For The Rest of the Year

According to Coinbase, on 17 2021, Dogecoin’s value jumped 203% in just the past 24 hours to an all-time high of $0.404, giving the cryptocurrency a market capitalization of $52.2 billion. As Dogecoin continues to reach an all-time high, its market capitalization stood at over $54 billion, replacing XRP as the fourth-largest coin on Monday 19, 2021.

According to us-bookies.com, oddsmakers see a 17 percent chance of Dogecoin reaching $1 by the end of 2021, versus 2.9% at the start of the month.

Apart from this, some posters are referring to Tuesday, April 20, as “Dogeday” on Twitter. Last week, the billionaire entrepreneur Elon Musk tweeted an image, “Doge Barking at the Moon.”
Such tweets and announcements indicate that this cryptocurrency is not going to slow down. Where many dogecoin supporters are predicting the coin to hit 69 cents on 4/20, some observers consider the ongoing price rally to be a bubble.

To get instant updates about Blockchain Technology and to learn more about online Blockchain Certifications, check out Blockchain Council.

Dogecoin Replaced XRP As The Fourth-Largest Coin

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Mar 31 2021

Beeple’s $69 Million NFT Buyer Says NFTs Could Democratize Digital Arts

The mysterious buyer of Beeple’s ‘Everyday: The First 5000 Days’ has been revealed to be an entrepreneur and angel investor, Vignesh Sundaresan.

No Regrets For Spending $69 Million On NFTs

In his first television interview on CNBC SquawkBox, Sundaresan, who goes by the pseudonym MetaKovan said that he was ready to make a much larger bid for digital art, given that it will be pivotal in the subsequent growth of the non-fungible token (NFT) space.

According to the coder, he has no second thoughts about paying so much for what many say is easily accessible on the internet. To him, NFTs presented a pathway through which digital artists and art collectors could trade art easily and efficiently.

Sundaresan also noted that the $69 million NFT was a significant piece of art history. It may take some time for people to recognize what potential there is in the NFT artwork, but he considers it a privilege to bring the art into global focus.

Beeple, whose real name is Mike Winklemann, has become somewhat of a pop culture digital artist since the explosion of tokenized digital arts. His Crossroads digital depiction of past US president Donald Trump was reportedly resold for $6.6 million. He has gone on to sell his NFTs at outrageous sums, and he says this has been a blessing following the pandemic drying up revenue sources.

But Beeple is not the only one making something out of a growing fantasy. NFT has changed so many sectors like real estate (Decentraland), quotes, video highlights, collectibles, and a whole business line is quickly emerging.

The NBA partnered with Dapper Labs’ Top Shot in 2019 to move into the NFT space. The partnership has been hugely successful as the NBA Top Shot sells video highlights of NBA players. A LeBron James slamdunk video highlight went for $200,000. So far, the NBA Top Shot is thriving, making as much as $500 million in NFT sales.

NFTs And Crypto Here To Stay

Sundaresan said he started in the crypto industry with no money. To invest in this burgeoning industry, he worked for cryptocurrency companies and invested in fast-growth companies focusing on digital assets in 2013.

Although he declined to state how much he owns in crypto, Sundaresan said he has holdings in Bitcoin, Ethereum, Polkadot, and Flow. He also noted that NFTs and crypto’s all-encompassing feature would see it override any ban by regulators.

“If regulators were tighter in previous years, that would have stifled innovation. I think we’re at a point where they see the positive impacts of crypto around the world,” he said.

This is following growing concerns in India that the government is set to outlaw private crypto ownership. The Asian nation has been a checkered history with crypto going as far back as the 2018 blanket ban overturned in 2020. Now, the government is revisiting, and it seems everything will go according to plan.

The government has repeatedly pointed to all the disadvantages surrounding crypto, saying its continued use could harm the global economy.

Beeple’s $69 Million NFT Buyer Says NFTs Could Democratize Digital Arts

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Mar 29 2021

Growth hacker uses crypto to help the unhoused

Before the 2017 bull run, growth hacker Giacomo Arcaro often slept in his car. Now an entrepreneur who speaks at crypto conferences and forums, he is looking for ways to promote adoption and help those financially struggling as a result of the ongoing pandemic.

Last weekend, Arcaro prepared to issue up to $50,000 in Ether (ETH) crypto loans to homeless and unhoused people in New York City. After speaking with some of the roughly 80,000 individuals in the city’s homeless population on a different occasion — and giving away some Bitcoin (BTC) in the process — he said many were, unsurprisingly, asking for money for necessities like blankets or food. However, some reportedly wanted funds to buy equipment to work remotely — e.g. microphones.

On Mar. 20, the growth hacker set up posters on Wall Street with crypto expert Eloisa Marchesoni and listened to business pitches from unhoused individuals, many of whom don’t have the ability to apply for a loan through traditional banks. Arcaro approved 12.5 ETH — roughly $22,000 at the time of publication — in loans, with an average of 0.5 ETH going to each person.

“Some interesting ideas that Eloisa and I vetted and funded were related to recycling, investing in the purchase of equipment to collect cans and bottles,” said Arcaro. “One woman was going to use the ETH to then buy a professional trash picker and stroller cart to carry the cans and bottles to the nearest store where she will drop them off each time to get some money in return.”

In approving the crypto loans, the growth hacker sent the ETH directly to Coinbase wallets on the recipients’ smartphones with the stipulation that should they pay him back in the future, he would double the loan and continue the relationship. If they immediately cash out, he would not assist them again.

“They did not easily accept the idea of having to download Coinbase Wallet on their phones and having to handle intangible money. It was harder than I thought to speak to them about Ether.”

Though Arcaro acknowledged this is not the typical way many try to help the homeless in the United States — often by donating to non-profit organizations, giving cash directly to them on the street or through an online fundraiser — his approach is reportedly based on the work of Nobel Peace Prize winner Muhammad Yunus. The Bangladeshi social entrepreneur pioneered much of the work around microcredits in the 70s and 80s, giving small loans to many unbanked people in poor communities.

“If these guys are smart, they can do all sorts of microinvestments,” said Arcaro. “If they keep this money in their wallets and stake it, they may earn $2 or $3 per day — which is a lot for a homeless person.”

Though it is difficult to get a true count, some estimate that there are more than 150 million individuals without homes or proper shelter around the world. In early 2020, there were more than 580,000 people homeless in the United States, with many in New York City and Los Angeles. However, with the economic impact of the pandemic, that number has likely increased significantly.

“I can guess there’s a lot of really smart people that have some issues with COVID and they are in the streets,” said Arcaro. “They cannot access [credit], they cannot open any bank account, they cannot ask for mortgages.”

Arcaro’s methods require that any unhoused or homeless person requesting a crypto loan have a smartphone capable of supporting Coinbase Wallet. Though he said “all the homeless” he encountered had access to the internet, that may not always be the case outside of a major hub like New York City. A 2018 study showed that the majority of homeless people in the U.S. do have access to mobile phones, while a separate report from the City Bar Justice Center cited smartphones and internet access as a major factor in shortening periods of homelessness.

“If you’re not comfortable with crypto, it’s not for you, but [this is for] a ‘new kind’ of homeless. The ‘startup’ homeless, or the people who want to step out of poverty […] It’s for people who want to do something with their life but they have bad luck.”

Following the rollout on Wall Street, Arcaro said he would circle back in about a month to check in on the loan recipients to address any technical or logistical issues. He said he may eventually try the experiment in Los Angeles and San Francisco as well as internationally in Germany, Dubai, and Thailand.

Growth hacker uses crypto to help the unhoused

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