Monthly Archives: February 2024

The Pros and Cons of Crypto Trading

22 Thursday Feb 2024

Posted by in Cryptocurrencies Trading

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Investors can earn a significant return in a short time, but this means they can also lose a lot of money in a short amount of time. Whether you are a financial advisor, family office, institutional investor, or a recent high school graduate, there are different objectives as well as risk tolerances for investing in cryptocurrencies which must be understood. As with any investment, one should clearly ascertain the risk versus reward and the opportunity cost. If you are considering investing in crypto, understanding the potential pitfalls of cryptocurrency trading risks is essential to success.

What is Cryptocurrency Trading?

Cryptocurrency trading is the process of buying and selling digital currencies to make a profit. It involves speculating on the price movements of different cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, etc., with the goal of generating returns from short-term market fluctuations.

Definition: “Cryptocurrency Trading” is an online activity that allows investors to buy and sell digital assets using various exchanges. Traders can speculate on the future value of a particular cryptocurrency by purchasing coins at one price and then selling them at another when they believe it has reached its peak or bottomed out.

Benefits of Cryptocurrency Trading: One major benefit associated with cryptocurrency trading is that it offers investors access to a global marketplace without any geographical restrictions or limitations imposed by traditional financial institutions. Additionally, traders can take advantage of high liquidity levels within these markets which allow for quick execution times and low transaction fees compared to other asset classes such as stocks or commodities. Finally, crypto traders also have access to sophisticated tools like charting software which can help them identify potential entry points into trades more accurately than ever before.

Despite all its advantages, there are still risks associated with cryptocurrency trading that should be taken into consideration before investing in this asset class. Firstly, due to their volatile nature prices can fluctuate significantly over short periods making it difficult for even experienced traders to predict where prices will go next, meaning profits could easily turn into losses if not managed properly. Secondly, because most exchanges operate outside government regulation there is always a risk that funds may be lost through hacking attacks or fraudsters taking advantage of unsuspecting users who do not know how best to protect themselves online. Finally, some countries may impose taxes on profits made from crypto investments, so it is important for individuals living in those jurisdictions to understand what their obligations are beforehand, so they do not get caught out later down the line.

Cryptocurrency trading is an exciting way to invest in digital assets, but it comes with certain risks that should be considered. In the next section, we’ll discuss some of the key risks associated with crypto trading so you can make informed decisions about your investments.

Understanding the Risks of Crypto Trading

Cryptocurrency trading can be a lucrative venture, but it is important to understand the risks associated with this type of investment. Volatility risk is one of the most significant risks when trading cryptocurrencies. Cryptocurrencies are known for their high volatility and prices can change drastically in a short period of time. This means that traders need to be prepared for sudden price changes and have strategies in place to manage them effectively.

Liquidity Risk: Liquidity risk is another major concern when trading cryptocurrencies. Liquidity refers to how easily an asset can be bought or sold without affecting its price significantly. Low liquidity means that it may take longer to buy or sell large amounts of cryptocurrency, which could lead to losses if the market moves against you before your order has been filled.

Regulatory Risk: Regulatory risk is also something that traders should consider when investing in cryptocurrencies as regulations vary from country to country and even within countries themselves. It is important for investors to stay up to date on any new laws or regulations related to cryptocurrency trading so they do not get caught off guard by unexpected changes in policy that could affect their investments negatively.

Security Risk: Finally, security risk must also be considered when dealing with cryptocurrencies as there have been numerous cases of hacking attacks resulting in stolen funds over the years due to weak security protocols employed by exchanges and other platforms offering crypto services. To minimize this risk, investors should only use reputable exchanges with strong security measures such as two-factor authentication (2FA) and cold storage solutions like hardware wallets whenever possible.

Crypto trading can be a risky venture, but understanding the risks involved is key to minimizing them. By following these tips and doing your research, you can make informed decisions that will help protect your investments. Now let’s look at how to minimize those risks.

Tips for Minimizing Crypto Trading Risks

Diversifying Your Portfolio: Diversifying your portfolio is one of the most important steps you can take to minimize risk when trading crypto. By spreading out your investments across different coins, exchanges, and wallets, you reduce the chances of any single investment going sour. This way, if one coin or exchange experiences a dip in value or security breach, it won’t affect all your holdings.

Setting Stop Losses and Take Profits: Setting stop losses and take profits is another key strategy for minimizing risk while trading crypto. Stop losses are predetermined points at which traders will sell their assets to avoid further losses should the market move against them. Take profits are predetermined points at which traders will sell their assets to realize gains should the market move in their favor. Setting these limits helps ensure that investors do not get too greedy or too fearful when trading crypto and keeps them from making rash decisions based on emotion rather than logic.

Researching: Researching before investing is essential for reducing risks associated with cryptocurrency trading as well. It is important to understand how each coin works before investing so that you know what kind of returns to expect and whether it fits into your overall investment strategy. Additionally, researching an exchange prior to using it can help identify potential issues such as slow customer service response times or inadequate security measures that could put your funds at risk down the line.

By following these tips, traders can minimize their risks when trading crypto and make informed decisions. However, it is also important to be aware of common mistakes that can lead to costly losses to maximize returns on investments.

Common Mistakes to Avoid When Trading Crypto

To minimize the potential for losses, traders should avoid common mistakes such as not setting stop losses or take profits, not doing enough research, and not understanding the technology behind the currency.

Not Setting Stop Losses or Take Profits: One of the most important steps in crypto trading is to set up stop losses and take profits. A stop loss order is an automated instruction that closes out your position if it reaches a certain price level. This helps protect you from large losses if the market moves against you unexpectedly. Similarly, a take profit order will close out your position when it reaches a certain price level so that you can lock in gains before they disappear due to market volatility. Not having these orders in place could lead to major losses if prices move suddenly against your positions.

Not Doing Enough Research: Before investing in any cryptocurrency, traders should do their own research on its fundamentals and technicals to determine whether it is worth investing in at all. Without researching what factors are driving the coin’s price movements, investors may find themselves stuck with coins whose value has dropped significantly without warning due to external events outside of their control or knowledge about them beforehand.

Not Understanding The Technology Behind The Currency: Crypto assets are built on blockchain technology which is still relatively new, and complex compared to traditional financial markets like stocks and bonds where there are decades of data available for analysis by investors who understand how these markets work inside-out. As such, many crypto traders lack an understanding of how blockchains operate which makes them vulnerable when making decisions about which coins they should invest in since they do not have full insight into what’s going on under-the-hood with each asset’s underlying technology stack.

Overall, avoiding common mistakes while trading cryptocurrencies can help reduce risk exposure and increase chances for success over time through smart decision making based on thorough research and understanding of both fundamental and technical aspects related to each coin being traded.

It is important to be aware of the risks associated with crypto trading and to take steps to minimize them. By avoiding common mistakes, such as not setting stop losses or taking profits, doing adequate research, and understanding the technology behind the currency, traders can increase their chances of success when investing in cryptocurrency. Now let’s look at whether crypto is worth the risk.

Conclusion – Is Crypto Worth the Risk?

Before deciding whether to invest in crypto assets or not, it is important to understand the potential rewards and drawbacks of doing so.

Pros and Cons of Crypto Investing: Cryptocurrencies offer investors the potential for high returns due to their volatility. They are decentralized, meaning they are not subject to government regulation or manipulation by central banks. Additionally, cryptocurrencies provide users with anonymity as transactions are conducted on a peer-to-peer basis without any third-party involvement. On the other hand, cryptocurrencies are highly volatile and there is no guarantee that investments will yield positive returns over time. Furthermore, there is an inherent risk associated with investing in unregulated digital currencies since they lack legal protection from fraud or theft.

Ultimately, whether investing in cryptocurrency or not is worth the risk depends on individual circumstances and preferences. Investors should conduct thorough research before making any decisions about investing in crypto assets and consider all possible risks associated with such investments including market volatility, liquidity issues, security threats and regulatory uncertainty among others. Additionally, investors should diversify their portfolios across different asset classes to minimize losses if one particular asset fails to perform as expected. Finally, investors should set stop losses and take profits when trading cryptos so that they do not end up losing more than they initially invested due to sudden price movements caused by market speculation or news events related to specific coins/tokens.

Michel Ouellette JMD, ll.l., ll.m.

JMD Live Online Subscription link.

J. Michael Dennis, ll.l., ll.m.

Business &Corporate Strategist

Systemic Strategic Planning

Quality Assurance, Occupational Health & Safety, Environmental Protection, Regulatory Compliance, Crisis & Reputation Management

Skype: jmdlive

Email: jmdlive@jmichaeldennis.live

Web: https://www.jmichaeldennis.live

Phone: 24/7 Emergency Access

Available to our clients/business partners

Disclaimer: All write-ups and articles do not constitute financial and legal advice in any way whatsoever but for information purposes only.

When making financial and legal decisions and commitments, we strongly recommend you consult your professional financial and legal services provider. Our website uses referral links to various crypto exchanges as a means of monetization. We appreciate it if you choose to use the in-article links, but the decision is ultimately yours.

The Pros and Cons of Crypto Trading

22 Thursday Feb 2024

Posted by in Cryptocurrencies Trading

≈ Leave a comment

Tags

, , , ,

Investors can earn a significant return in a short time, but this means they can also lose a lot of money in a short amount of time. Whether you are a financial advisor, family office, institutional investor, or a recent high school graduate, there are different objectives as well as risk tolerances for investing in cryptocurrencies which must be understood. As with any investment, one should clearly ascertain the risk versus reward and the opportunity cost. If you are considering investing in crypto, understanding the potential pitfalls of cryptocurrency trading risks is essential to success.

What is Cryptocurrency Trading?

Cryptocurrency trading is the process of buying and selling digital currencies to make a profit. It involves speculating on the price movements of different cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, etc., with the goal of generating returns from short-term market fluctuations.

Definition: “Cryptocurrency Trading” is an online activity that allows investors to buy and sell digital assets using various exchanges. Traders can speculate on the future value of a particular cryptocurrency by purchasing coins at one price and then selling them at another when they believe it has reached its peak or bottomed out.

Benefits of Cryptocurrency Trading: One major benefit associated with cryptocurrency trading is that it offers investors access to a global marketplace without any geographical restrictions or limitations imposed by traditional financial institutions. Additionally, traders can take advantage of high liquidity levels within these markets which allow for quick execution times and low transaction fees compared to other asset classes such as stocks or commodities. Finally, crypto traders also have access to sophisticated tools like charting software which can help them identify potential entry points into trades more accurately than ever before.

Despite all its advantages, there are still risks associated with cryptocurrency trading that should be taken into consideration before investing in this asset class. Firstly, due to their volatile nature prices can fluctuate significantly over short periods making it difficult for even experienced traders to predict where prices will go next, meaning profits could easily turn into losses if not managed properly. Secondly, because most exchanges operate outside government regulation there is always a risk that funds may be lost through hacking attacks or fraudsters taking advantage of unsuspecting users who do not know how best to protect themselves online. Finally, some countries may impose taxes on profits made from crypto investments, so it is important for individuals living in those jurisdictions to understand what their obligations are beforehand, so they do not get caught out later down the line.

Cryptocurrency trading is an exciting way to invest in digital assets, but it comes with certain risks that should be considered. In the next section, we’ll discuss some of the key risks associated with crypto trading so you can make informed decisions about your investments.

Understanding the Risks of Crypto Trading

Cryptocurrency trading can be a lucrative venture, but it is important to understand the risks associated with this type of investment. Volatility risk is one of the most significant risks when trading cryptocurrencies. Cryptocurrencies are known for their high volatility and prices can change drastically in a short period of time. This means that traders need to be prepared for sudden price changes and have strategies in place to manage them effectively.

Liquidity Risk: Liquidity risk is another major concern when trading cryptocurrencies. Liquidity refers to how easily an asset can be bought or sold without affecting its price significantly. Low liquidity means that it may take longer to buy or sell large amounts of cryptocurrency, which could lead to losses if the market moves against you before your order has been filled.

Regulatory Risk: Regulatory risk is also something that traders should consider when investing in cryptocurrencies as regulations vary from country to country and even within countries themselves. It is important for investors to stay up to date on any new laws or regulations related to cryptocurrency trading so they do not get caught off guard by unexpected changes in policy that could affect their investments negatively.

Security Risk: Finally, security risk must also be considered when dealing with cryptocurrencies as there have been numerous cases of hacking attacks resulting in stolen funds over the years due to weak security protocols employed by exchanges and other platforms offering crypto services. To minimize this risk, investors should only use reputable exchanges with strong security measures such as two-factor authentication (2FA) and cold storage solutions like hardware wallets whenever possible.

Crypto trading can be a risky venture, but understanding the risks involved is key to minimizing them. By following these tips and doing your research, you can make informed decisions that will help protect your investments. Now let’s look at how to minimize those risks.

Tips for Minimizing Crypto Trading Risks

Diversifying Your Portfolio: Diversifying your portfolio is one of the most important steps you can take to minimize risk when trading crypto. By spreading out your investments across different coins, exchanges, and wallets, you reduce the chances of any single investment going sour. This way, if one coin or exchange experiences a dip in value or security breach, it won’t affect all your holdings.

Setting Stop Losses and Take Profits: Setting stop losses and take profits is another key strategy for minimizing risk while trading crypto. Stop losses are predetermined points at which traders will sell their assets to avoid further losses should the market move against them. Take profits are predetermined points at which traders will sell their assets to realize gains should the market move in their favor. Setting these limits helps ensure that investors do not get too greedy or too fearful when trading crypto and keeps them from making rash decisions based on emotion rather than logic.

Researching: Researching before investing is essential for reducing risks associated with cryptocurrency trading as well. It is important to understand how each coin works before investing so that you know what kind of returns to expect and whether it fits into your overall investment strategy. Additionally, researching an exchange prior to using it can help identify potential issues such as slow customer service response times or inadequate security measures that could put your funds at risk down the line.

By following these tips, traders can minimize their risks when trading crypto and make informed decisions. However, it is also important to be aware of common mistakes that can lead to costly losses to maximize returns on investments.

Common Mistakes to Avoid When Trading Crypto

To minimize the potential for losses, traders should avoid common mistakes such as not setting stop losses or take profits, not doing enough research, and not understanding the technology behind the currency.

Not Setting Stop Losses or Take Profits: One of the most important steps in crypto trading is to set up stop losses and take profits. A stop loss order is an automated instruction that closes out your position if it reaches a certain price level. This helps protect you from large losses if the market moves against you unexpectedly. Similarly, a take profit order will close out your position when it reaches a certain price level so that you can lock in gains before they disappear due to market volatility. Not having these orders in place could lead to major losses if prices move suddenly against your positions.

Not Doing Enough Research: Before investing in any cryptocurrency, traders should do their own research on its fundamentals and technicals to determine whether it is worth investing in at all. Without researching what factors are driving the coin’s price movements, investors may find themselves stuck with coins whose value has dropped significantly without warning due to external events outside of their control or knowledge about them beforehand.

Not Understanding The Technology Behind The Currency: Crypto assets are built on blockchain technology which is still relatively new, and complex compared to traditional financial markets like stocks and bonds where there are decades of data available for analysis by investors who understand how these markets work inside-out. As such, many crypto traders lack an understanding of how blockchains operate which makes them vulnerable when making decisions about which coins they should invest in since they do not have full insight into what’s going on under-the-hood with each asset’s underlying technology stack.

Overall, avoiding common mistakes while trading cryptocurrencies can help reduce risk exposure and increase chances for success over time through smart decision making based on thorough research and understanding of both fundamental and technical aspects related to each coin being traded.

It is important to be aware of the risks associated with crypto trading and to take steps to minimize them. By avoiding common mistakes, such as not setting stop losses or taking profits, doing adequate research, and understanding the technology behind the currency, traders can increase their chances of success when investing in cryptocurrency. Now let’s look at whether crypto is worth the risk.

Conclusion – Is Crypto Worth the Risk?

Before deciding whether to invest in crypto assets or not, it is important to understand the potential rewards and drawbacks of doing so.

Pros and Cons of Crypto Investing: Cryptocurrencies offer investors the potential for high returns due to their volatility. They are decentralized, meaning they are not subject to government regulation or manipulation by central banks. Additionally, cryptocurrencies provide users with anonymity as transactions are conducted on a peer-to-peer basis without any third-party involvement. On the other hand, cryptocurrencies are highly volatile and there is no guarantee that investments will yield positive returns over time. Furthermore, there is an inherent risk associated with investing in unregulated digital currencies since they lack legal protection from fraud or theft.

Ultimately, whether investing in cryptocurrency or not is worth the risk depends on individual circumstances and preferences. Investors should conduct thorough research before making any decisions about investing in crypto assets and consider all possible risks associated with such investments including market volatility, liquidity issues, security threats and regulatory uncertainty among others. Additionally, investors should diversify their portfolios across different asset classes to minimize losses if one particular asset fails to perform as expected. Finally, investors should set stop losses and take profits when trading cryptos so that they do not end up losing more than they initially invested due to sudden price movements caused by market speculation or news events related to specific coins/tokens.

Michel Ouellette JMD, ll.l., ll.m.

JMD Live Online Subscription link.

J. Michael Dennis, ll.l., ll.m.

Business &Corporate Strategist

Systemic Strategic Planning

Quality Assurance, Occupational Health & Safety, Environmental Protection, Regulatory Compliance, Crisis & Reputation Management

Skype: jmdlive

Email: jmdlive@jmichaeldennis.live

Web: https://www.jmichaeldennis.live

Phone: 24/7 Emergency Access

Available to our clients/business partners

Disclaimer: All write-ups and articles do not constitute financial and legal advice in any way whatsoever but for information purposes only.

When making financial and legal decisions and commitments, we strongly recommend you consult your professional financial and legal services provider. Our website uses referral links to various crypto exchanges as a means of monetization. We appreciate it if you choose to use the in-article links, but the decision is ultimately yours.

How To make Money With Cryptocurrencies

21 Wednesday Feb 2024

Posted by in Cryptocurrencies Trading

≈ Leave a comment

Tags

, , , ,

Over the last few years, cryptocurrencies have proven to be great investments and a trading market. And as the crypto market continues to develop and evolve, there are also new ways and strategies for retail investors to make money.

“Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.”

Cryptocurrencies have become one of the most actively traded assets in recent years. The reasons are diverse: first, they are affordable, and you can buy millions of tokens by investing as little as $100. Another reason is that building a diversified portfolio with cryptocurrencies is easy.

While, in most cases, people simply buy and sell cryptos to speculate on price changes and generate money, there are multiple other options to make money with a cryptocurrency.

8 Best Ways to Make Money With Cryptocurrency in February 2024

1.- Investing Early in Brand New Projects at the Presale Stage

For those who can’t afford to invest in well-established crypto projects, there is an excellent alternative: the New crypto projects. As the market proliferates, more projects are introduced regularly. Not all of them are promising or legit, but if you can find the best and invest in their development’s early stages, you can make massive money from brand-new projects. Before their official launch, it is common among the new crypto projects to conduct private and public presales. During these events, their native tokens are not yet official, but the developing team offers to buy them in the presale stage at low prices once the crypto is officially launched and sent to the presale buyers’ wallets.

2.- Buying Established Crypto Coin Like Bitcoin and Holding Long-Term

Perhaps, the best and the most popular method to make money with cryptocurrency is simply investing in a well-established or promising crypto project in the long term. Established crypto projects are backed with sophisticated plans, introduce new features into the industry, and try to solve real-world problems. These cryptocurrencies are not like speculative assets, which will lose their value once the trend ends. They are quite well-established and will gradually draw attention, growing their demand. If more and more people are interested in a crypto project and invest in it, its value will increase. Consequently, you will benefit from the increased price and generate good rewards in the long term. It is incredibly profitable to invest in assets with low supply. It works perfectly with cryptocurrencies as long as they are decentralized, and no single party can decrease or increase their supply.

3.- Creating a Mixed Crypto Portfolio and Holding Mid-Term

Another great way to make money with crypto is to build a cryptocurrency portfolio that is especially useful in risk management. Building a crypto portfolio means investing in some different crypto assets, including Bitcoin, the best altcoins, and even NFTs which are an emerging asset class of their own. One of the most crucial things to consider when creating a crypto portfolio is to make it diversified. If you invest all your money in one coin, there is a higher risk of losing your capital when the asset crashes. But if you invest in multiple cryptocurrencies, you can reduce the risks of losing money even if some of your assets lose their value. If no massive crash in the market affects all the cryptos, your diversified crypto portfolio will go through minor crashes associated with two or three coins.

There are two ways of building a diversified portfolio: investing in coins with different market caps and investing in versatile crypto projects or competing projects. Classified by market capitalizations, cryptocurrencies fall into three large groups: small, mid, and large-cap. Large-cap cryptocurrencies are the most well-established cryptos: they are less risky, but the rewards are lower. In contrast, cryptos with small market caps include higher risks, and the rewards are higher too.

When selecting a crypto exchange or a platform that will fit best to build a diversified portfolio, you need to select the one that supports many crypto coins, provides diversifying tools, and is secure to hold your cryptos.

4.- Staking Crypto in an Exchange

If you have invested in cryptocurrencies that operate on the Proof of Stake blockchains, you may want to use them for extra rewards instead of keeping them idle. This process is known as staking and is one way to earn crypto using your assets for the time you will be holding them. You lock away a certain amount of your tokens for a specific time to participate in the network securing and transaction validation process. When you stake cryptocurrencies, you earn interest rates for the period you have staked them. Hence, when looking for a staking platform, you must pay attention to how much interest rates the platform pays.

Security is another top priority to consider in a staking platform if you lock your assets and need to keep them secure. Among the most popular staking platforms is OKX, and the decentralized platform Defi Swap which will support staking with high-interest rates. 

Besides staking, there is another way to generate extra money through your idle assets. It is called landing. Some decentralized cryptocurrency exchanges have a pool where users can lend tokens for a specific time, and others can borrow cryptos if needed. Those who lend tokens are granted some rewards, and the borrowers pay interest rates to them for borrowing their money. So, lending is another way to make money with crypto, where you again lock up some tokens to gain interest rates.

5.- Day Trading Cryptocurrencies

Due to their volatility, cryptocurrencies can be highly profitable even for one day. Hence, day trading is one of the most popular ways of making money with crypto. It is called day trading because you take advantage of the frequent price changes of crypto assets to open and close multiple positions during the same trading day. In this way, you make a little profit from frequent trades and can generate massive money throughout the day. However, day trading is not a straightforward process. To be able to day trade cryptocurrencies, you must have at least a basic understanding of the market and learn how to analyze crypto charts and graphs. In this way, you can understand if the value of the asset you want to benefit from will increase or decrease over time.

6.- Free Crypto Drops and Crypto Faucets

Crypto faucets and airdrops are two alternative ways to earn free crypto if you don’t want to risk your money. These methods enable you to earn cryptos without investing anything in them, but the rewards are small too. At least, you don’t put anything at risk and don’t need to develop any special skills, but you can spend some of your free time on it and earn little rewards. Airdrops are events carried out by new cryptocurrency projects during which they send a certain number of tokens to different wallets. In most cases, you will have to do interaction with their project. For example, if it is a decentralized exchange, they may airdrop cryptos to those wallets that have conducted transactions on their platforms. Even though the cryptocurrencies airdropped to your wallet may not be that valuable initially, they may increase over time. Once the cryptocurrency is officially launched, it will gain more value and even reach high prices if the project draws massive attention from investors.

Faucets are another easy way to generate small crypto rewards. These mobile apps or platforms allow you to play games or accomplish tasks and get small rewards in cryptos. Hundreds of platforms are designed for this purpose, and the tasks significantly vary from platform to platform. Sometimes, it can be extremely simple, such as solving the captchas. On our list of all the ways to make money with cryptocurrency, this is one of the easiest; however, the rewards are also small. Other platforms may require playing games and reaching a particular milestone, after which you will be rewarded. It is important to note here that money earned from faucets is relatively low, but it is the safest way of making money with crypto. Play-to-earn games are like faucets: you play and get rewarded for winning competitions or completing specific tasks. But the difference is that those rewards may be higher than with the faucets, and you will need some initial investment to access the platforms.

7.- Going All-In with Altcoins

Altcoin stands for alternative coin, and the word is coined to describe all the other cryptocurrencies created as alternatives to Bitcoin. If you think it’s already too late to invest in Bitcoin, it’s never too late to invest in altcoins. Hundreds of new altcoins are created monthly, and you have a vast selection of assets with thousands of options to purchase. New exciting altcoin projects occasionally spring up in the market, along with some well-established altcoins. These projects refer to different aspects of the DeFi ecosystem, including blockchain gaming, decentralized exchanges, programmable platforms, payment systems, etc. Investing in such promising altcoins during the early stages of their development can be a huge success for you once these projects have finished their presale stage and start to catch investors’ attention.

8.- Crypto Lotteries and Casinos

Like traditional casino and lottery platforms, cryptocurrency casinos incorporate blockchain technology with gaming and lottery elements, giving online gambling a great experience. As with traditional lottery platforms, blockchain lotteries enable you to purchase tickets and participate in competitions. When the drawn lotto numbers match with the numbers of your lottery tickets, you get rewarded from the jackpot pool. The most significant difference between traditional and blockchain-based lottery platforms is that the latter use cryptocurrencies for the ecosystem. You need to buy tickets through cryptos, and the rewards you get are in cryptos. 

Risk Disclaimer

Cryptocurrencies stand out with high volatility, meaning their prices change quite often and fluctuate extensively. On the one hand, it is advantageous if you can quickly generate high rewards. The higher the rewards, the higher the risks. This is because, in most cases, cryptocurrencies are not governed by a single authority or company. They are decentralized, and their value is influenced by the supply and demand ratio. It means that the risk of losing your money is relatively high. Even though you can make money with crypto, you can never be sure your investment will succeed. The least you can do to manage the risks is to explore the project carefully, read its white paper, and get familiar with the team behind the project and its roadmap.

Michel Ouellette JMD, ll.l., ll.m.

JMD Live Online Subscription link.

J. Michael Dennis, ll.l., ll.m.

Business &Corporate Strategist

Systemic Strategic Planning

Quality Assurance, Occupational Health & Safety, Environmental Protection, Regulatory Compliance, Crisis & Reputation Management

Skype: jmdlive

Email: jmdlive@jmichaeldennis.live

Web: https://www.jmichaeldennis.live

Phone: 24/7 Emergency Access

Available to our clients/business partners

Disclaimer: All write-ups and articles do not constitute financial and legal advice in any way whatsoever but for information purposes only.

When making financial and legal decisions and commitments, we strongly recommend you consult your professional financial and legal services provider. Our website uses referral links to various crypto exchanges as a means of monetization. We appreciate it if you choose to use the in-article links, but the decision is ultimately yours.

How To make Money With Cryptocurrencies

21 Wednesday Feb 2024

Posted by in Cryptocurrencies Trading

≈ Leave a comment

Tags

, , , ,

Over the last few years, cryptocurrencies have proven to be great investments and a trading market. And as the crypto market continues to develop and evolve, there are also new ways and strategies for retail investors to make money.

“Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.”

Cryptocurrencies have become one of the most actively traded assets in recent years. The reasons are diverse: first, they are affordable, and you can buy millions of tokens by investing as little as $100. Another reason is that building a diversified portfolio with cryptocurrencies is easy.

While, in most cases, people simply buy and sell cryptos to speculate on price changes and generate money, there are multiple other options to make money with a cryptocurrency.

8 Best Ways to Make Money With Cryptocurrency in February 2024

1.- Investing Early in Brand New Projects at the Presale Stage

For those who can’t afford to invest in well-established crypto projects, there is an excellent alternative: the New crypto projects. As the market proliferates, more projects are introduced regularly. Not all of them are promising or legit, but if you can find the best and invest in their development’s early stages, you can make massive money from brand-new projects. Before their official launch, it is common among the new crypto projects to conduct private and public presales. During these events, their native tokens are not yet official, but the developing team offers to buy them in the presale stage at low prices once the crypto is officially launched and sent to the presale buyers’ wallets.

2.- Buying Established Crypto Coin Like Bitcoin and Holding Long-Term

Perhaps, the best and the most popular method to make money with cryptocurrency is simply investing in a well-established or promising crypto project in the long term. Established crypto projects are backed with sophisticated plans, introduce new features into the industry, and try to solve real-world problems. These cryptocurrencies are not like speculative assets, which will lose their value once the trend ends. They are quite well-established and will gradually draw attention, growing their demand. If more and more people are interested in a crypto project and invest in it, its value will increase. Consequently, you will benefit from the increased price and generate good rewards in the long term. It is incredibly profitable to invest in assets with low supply. It works perfectly with cryptocurrencies as long as they are decentralized, and no single party can decrease or increase their supply.

3.- Creating a Mixed Crypto Portfolio and Holding Mid-Term

Another great way to make money with crypto is to build a cryptocurrency portfolio that is especially useful in risk management. Building a crypto portfolio means investing in some different crypto assets, including Bitcoin, the best altcoins, and even NFTs which are an emerging asset class of their own. One of the most crucial things to consider when creating a crypto portfolio is to make it diversified. If you invest all your money in one coin, there is a higher risk of losing your capital when the asset crashes. But if you invest in multiple cryptocurrencies, you can reduce the risks of losing money even if some of your assets lose their value. If no massive crash in the market affects all the cryptos, your diversified crypto portfolio will go through minor crashes associated with two or three coins.

There are two ways of building a diversified portfolio: investing in coins with different market caps and investing in versatile crypto projects or competing projects. Classified by market capitalizations, cryptocurrencies fall into three large groups: small, mid, and large-cap. Large-cap cryptocurrencies are the most well-established cryptos: they are less risky, but the rewards are lower. In contrast, cryptos with small market caps include higher risks, and the rewards are higher too.

When selecting a crypto exchange or a platform that will fit best to build a diversified portfolio, you need to select the one that supports many crypto coins, provides diversifying tools, and is secure to hold your cryptos.

4.- Staking Crypto in an Exchange

If you have invested in cryptocurrencies that operate on the Proof of Stake blockchains, you may want to use them for extra rewards instead of keeping them idle. This process is known as staking and is one way to earn crypto using your assets for the time you will be holding them. You lock away a certain amount of your tokens for a specific time to participate in the network securing and transaction validation process. When you stake cryptocurrencies, you earn interest rates for the period you have staked them. Hence, when looking for a staking platform, you must pay attention to how much interest rates the platform pays.

Security is another top priority to consider in a staking platform if you lock your assets and need to keep them secure. Among the most popular staking platforms is OKX, and the decentralized platform Defi Swap which will support staking with high-interest rates. 

Besides staking, there is another way to generate extra money through your idle assets. It is called landing. Some decentralized cryptocurrency exchanges have a pool where users can lend tokens for a specific time, and others can borrow cryptos if needed. Those who lend tokens are granted some rewards, and the borrowers pay interest rates to them for borrowing their money. So, lending is another way to make money with crypto, where you again lock up some tokens to gain interest rates.

5.- Day Trading Cryptocurrencies

Due to their volatility, cryptocurrencies can be highly profitable even for one day. Hence, day trading is one of the most popular ways of making money with crypto. It is called day trading because you take advantage of the frequent price changes of crypto assets to open and close multiple positions during the same trading day. In this way, you make a little profit from frequent trades and can generate massive money throughout the day. However, day trading is not a straightforward process. To be able to day trade cryptocurrencies, you must have at least a basic understanding of the market and learn how to analyze crypto charts and graphs. In this way, you can understand if the value of the asset you want to benefit from will increase or decrease over time.

6.- Free Crypto Drops and Crypto Faucets

Crypto faucets and airdrops are two alternative ways to earn free crypto if you don’t want to risk your money. These methods enable you to earn cryptos without investing anything in them, but the rewards are small too. At least, you don’t put anything at risk and don’t need to develop any special skills, but you can spend some of your free time on it and earn little rewards. Airdrops are events carried out by new cryptocurrency projects during which they send a certain number of tokens to different wallets. In most cases, you will have to do interaction with their project. For example, if it is a decentralized exchange, they may airdrop cryptos to those wallets that have conducted transactions on their platforms. Even though the cryptocurrencies airdropped to your wallet may not be that valuable initially, they may increase over time. Once the cryptocurrency is officially launched, it will gain more value and even reach high prices if the project draws massive attention from investors.

Faucets are another easy way to generate small crypto rewards. These mobile apps or platforms allow you to play games or accomplish tasks and get small rewards in cryptos. Hundreds of platforms are designed for this purpose, and the tasks significantly vary from platform to platform. Sometimes, it can be extremely simple, such as solving the captchas. On our list of all the ways to make money with cryptocurrency, this is one of the easiest; however, the rewards are also small. Other platforms may require playing games and reaching a particular milestone, after which you will be rewarded. It is important to note here that money earned from faucets is relatively low, but it is the safest way of making money with crypto. Play-to-earn games are like faucets: you play and get rewarded for winning competitions or completing specific tasks. But the difference is that those rewards may be higher than with the faucets, and you will need some initial investment to access the platforms.

7.- Going All-In with Altcoins

Altcoin stands for alternative coin, and the word is coined to describe all the other cryptocurrencies created as alternatives to Bitcoin. If you think it’s already too late to invest in Bitcoin, it’s never too late to invest in altcoins. Hundreds of new altcoins are created monthly, and you have a vast selection of assets with thousands of options to purchase. New exciting altcoin projects occasionally spring up in the market, along with some well-established altcoins. These projects refer to different aspects of the DeFi ecosystem, including blockchain gaming, decentralized exchanges, programmable platforms, payment systems, etc. Investing in such promising altcoins during the early stages of their development can be a huge success for you once these projects have finished their presale stage and start to catch investors’ attention.

8.- Crypto Lotteries and Casinos

Like traditional casino and lottery platforms, cryptocurrency casinos incorporate blockchain technology with gaming and lottery elements, giving online gambling a great experience. As with traditional lottery platforms, blockchain lotteries enable you to purchase tickets and participate in competitions. When the drawn lotto numbers match with the numbers of your lottery tickets, you get rewarded from the jackpot pool. The most significant difference between traditional and blockchain-based lottery platforms is that the latter use cryptocurrencies for the ecosystem. You need to buy tickets through cryptos, and the rewards you get are in cryptos. 

Risk Disclaimer

Cryptocurrencies stand out with high volatility, meaning their prices change quite often and fluctuate extensively. On the one hand, it is advantageous if you can quickly generate high rewards. The higher the rewards, the higher the risks. This is because, in most cases, cryptocurrencies are not governed by a single authority or company. They are decentralized, and their value is influenced by the supply and demand ratio. It means that the risk of losing your money is relatively high. Even though you can make money with crypto, you can never be sure your investment will succeed. The least you can do to manage the risks is to explore the project carefully, read its white paper, and get familiar with the team behind the project and its roadmap.

Michel Ouellette JMD, ll.l., ll.m.

JMD Live Online Subscription link.

J. Michael Dennis, ll.l., ll.m.

Business &Corporate Strategist

Systemic Strategic Planning

Quality Assurance, Occupational Health & Safety, Environmental Protection, Regulatory Compliance, Crisis & Reputation Management

Skype: jmdlive

Email: jmdlive@jmichaeldennis.live

Web: https://www.jmichaeldennis.live

Phone: 24/7 Emergency Access

Available to our clients/business partners

Disclaimer: All write-ups and articles do not constitute financial and legal advice in any way whatsoever but for information purposes only.

When making financial and legal decisions and commitments, we strongly recommend you consult your professional financial and legal services provider. Our website uses referral links to various crypto exchanges as a means of monetization. We appreciate it if you choose to use the in-article links, but the decision is ultimately yours.

Cryptocurrencies Trading Is a Risky Venture

19 Monday Feb 2024

Posted by in Cryptocurrencies Trading

≈ Leave a comment

Tags

, , , ,

Cryptocurrency: Risk Or Opportunity? The Good, The Bad, & The Ugly

Cryptocurrency trading is becoming more and more popular, but with it comes risks. If you’re considering investing in crypto, understanding the potential pitfalls of cryptocurrency trading risks is essential to success.

For Financial Advisors, family offices, and investors alike, 2023 and the first months of 2024 will go down in the history books as one of the most significant with respect to cryptocurrency. Many cryptocurrencies reached all-time highs and the first ever Bitcoin ETF was approved by The SEC in the United States.

Pros & Cons of investing in Cryptocurrencies

Cryptocurrencies allow for a few positive externalities such as: offer an opportunity to gain significant return in a short time. The cryptocurrency market is constantly evolving and changing 24/7.

Due to their volatile nature prices can fluctuate significantly over short periods making it difficult for even experienced traders to predict where prices will go next, meaning profits could easily turn into losses if not managed properly. Secondly, because most exchanges operate outside government regulation there is always a risk that funds may be lost through hacking attacks or fraudsters taking advantage of unsuspecting users who do not know how best to protect themselves online. Finally, some countries may impose taxes on profits made from crypto investments, so it is important for individuals living in those jurisdictions to understand what their obligations are beforehand, so they do not get caught out later down the line.

Cryptocurrency trading is an exciting way to invest in digital assets, but it comes with certain risks that should be considered.

Cryptocurrency trading can be a lucrative venture, but it is important to understand the risks associated with this type of investment. Volatility risk is one of the most significant risks when trading cryptocurrencies. Cryptocurrencies are known for their high volatility and prices can change drastically in a short period of time. This means that traders need to be prepared for sudden price changes and have strategies in place to manage them effectively.

Liquidity risk is another major concern when trading cryptocurrencies. Liquidity refers to how easily an asset can be bought or sold without affecting its price significantly. Low liquidity means that it may take longer to buy or sell large amounts of cryptocurrency, which could lead to losses if the market moves against you before your order has been filled.

Regulatory risk is also something that traders should consider when investing in cryptocurrencies as regulations vary from country to country and even within countries themselves. It’s important for investors to stay up to date on any new laws or regulations related to cryptocurrency trading so they don’t get caught off guard by unexpected changes in policy that could affect their investments negatively.

Finally, security risk must also be considered when dealing with cryptocurrencies as there have been numerous cases of hacking attacks resulting in stolen funds over the years due to weak security protocols employed by exchanges and other platforms offering crypto services. To minimize this risk, investors should only use reputable exchanges with strong security measures such as two-factor authentication (2FA) and cold storage solutions like hardware wallets whenever possible.

Crypto trading can be a risky venture, but understanding the risks involved is key to minimizing them. By following these tips and doing your research, you can make informed decisions that will help protect your investments. Now let’s look at how to minimize those risks.

Michel Ouellette JMD, ll.l., ll.m.

JMD Live Online Subscription link.

J. Michael Dennis, ll.l., ll.m.

Business &Corporate Strategist

Systemic Strategic Planning

Quality Assurance, Occupational Health & Safety, Environmental Protection, Regulatory Compliance, Crisis & Reputation Management

Skype: jmdlive

Email: jmdlive@jmichaeldennis.live

Web: https://www.jmichaeldennis.live

Phone: 24/7 Emergency Access

Available to our clients/business partners

Disclaimer: All write-ups and articles do not constitute financial and legal advice in any way whatsoever but for information purposes only.

When making financial and legal decisions and commitments, we strongly recommend you consult your professional financial and legal services provider. Our website uses referral links to various crypto exchanges as a means of monetization. We appreciate it if you choose to use the in-article links, but the decision is ultimately yours.

Cryptocurrencies Trading Is a Risky Venture

19 Monday Feb 2024

Posted by in Cryptocurrencies Trading

≈ Leave a comment

Tags

, , , ,

Cryptocurrency: Risk Or Opportunity? The Good, The Bad, & The Ugly

Cryptocurrency trading is becoming more and more popular, but with it comes risks. If you’re considering investing in crypto, understanding the potential pitfalls of cryptocurrency trading risks is essential to success.

For Financial Advisors, family offices, and investors alike, 2023 and the first months of 2024 will go down in the history books as one of the most significant with respect to cryptocurrency. Many cryptocurrencies reached all-time highs and the first ever Bitcoin ETF was approved by The SEC in the United States.

Pros & Cons of investing in Cryptocurrencies

Cryptocurrencies allow for a few positive externalities such as: offer an opportunity to gain significant return in a short time. The cryptocurrency market is constantly evolving and changing 24/7.

Due to their volatile nature prices can fluctuate significantly over short periods making it difficult for even experienced traders to predict where prices will go next, meaning profits could easily turn into losses if not managed properly. Secondly, because most exchanges operate outside government regulation there is always a risk that funds may be lost through hacking attacks or fraudsters taking advantage of unsuspecting users who do not know how best to protect themselves online. Finally, some countries may impose taxes on profits made from crypto investments, so it is important for individuals living in those jurisdictions to understand what their obligations are beforehand, so they do not get caught out later down the line.

Cryptocurrency trading is an exciting way to invest in digital assets, but it comes with certain risks that should be considered.

Cryptocurrency trading can be a lucrative venture, but it is important to understand the risks associated with this type of investment. Volatility risk is one of the most significant risks when trading cryptocurrencies. Cryptocurrencies are known for their high volatility and prices can change drastically in a short period of time. This means that traders need to be prepared for sudden price changes and have strategies in place to manage them effectively.

Liquidity risk is another major concern when trading cryptocurrencies. Liquidity refers to how easily an asset can be bought or sold without affecting its price significantly. Low liquidity means that it may take longer to buy or sell large amounts of cryptocurrency, which could lead to losses if the market moves against you before your order has been filled.

Regulatory risk is also something that traders should consider when investing in cryptocurrencies as regulations vary from country to country and even within countries themselves. It’s important for investors to stay up to date on any new laws or regulations related to cryptocurrency trading so they don’t get caught off guard by unexpected changes in policy that could affect their investments negatively.

Finally, security risk must also be considered when dealing with cryptocurrencies as there have been numerous cases of hacking attacks resulting in stolen funds over the years due to weak security protocols employed by exchanges and other platforms offering crypto services. To minimize this risk, investors should only use reputable exchanges with strong security measures such as two-factor authentication (2FA) and cold storage solutions like hardware wallets whenever possible.

Crypto trading can be a risky venture, but understanding the risks involved is key to minimizing them. By following these tips and doing your research, you can make informed decisions that will help protect your investments. Now let’s look at how to minimize those risks.

Michel Ouellette JMD, ll.l., ll.m.

JMD Live Online Subscription link.

J. Michael Dennis, ll.l., ll.m.

Business &Corporate Strategist

Systemic Strategic Planning

Quality Assurance, Occupational Health & Safety, Environmental Protection, Regulatory Compliance, Crisis & Reputation Management

Skype: jmdlive

Email: jmdlive@jmichaeldennis.live

Web: https://www.jmichaeldennis.live

Phone: 24/7 Emergency Access

Available to our clients/business partners

Disclaimer: All write-ups and articles do not constitute financial and legal advice in any way whatsoever but for information purposes only.

When making financial and legal decisions and commitments, we strongly recommend you consult your professional financial and legal services provider. Our website uses referral links to various crypto exchanges as a means of monetization. We appreciate it if you choose to use the in-article links, but the decision is ultimately yours.