Sunday, November 27, 2022
Sunday, July 11, 2021
Saturday, July 3, 2021
Crypto trial by fire: 'what happened to my Doge?' and Why the market shakeup it's a great thing for savvy investors (by the author July 3, 2021)
There's a lot of confusion in the market these days as to exactly what to expect going forward this year.
Here are some vital trends we will be watching this summer:
OMG! The Bitcoin bubble has popped (the good news) yet the market continues to thrive.
Not so fortunate are platforms such as Polywhale which bit the bullet in the early market crash this month. Sympathy to any Polywhale holders, but in truth... it was always just a whale.
As for Binance, it will continue to defy gravity as the Chinese government attempts to get a grip on what they claim are regulatory violations - Chinese style. This debacle may end in a quazi- nationalization, or even the destruction of the crypto market in China.
As for Doge, after the recent market fall, many new investors are looking at their new balances and wondering 'where's my Doge?!!'
Well, to be fair, Doge is still here, but its price is far off from the dizzying heights of $ .75 cents. My advice, avoid this token, unless and until you are confident that you know EXACTLY WHAT YOU'RE DOING! Meme coins are great as forms of payment, or micro payments, but when it comes to sinking a bunch of cash into a long-term investment asset, I recommend looking for a chain that has wider adoption, and greater overall demand from users. These would be users who not only use it, but who must have it! For example, Ethereum has become such a strong asset class for this very reason: developers need it for development of various dapps.
Or on the other hand if you actually have a legitimate use for a token like Doge's utility, in this case it may work for your needs. For example, Doge's payment system seems to be arising as another alternate form of currency among many groups. It's major claim to fame is that it is popular... and supported by Elon Musk... it pretty much ends there - in terms of financial analysis.
In other crypto related news...
Pancake Bunny survives, but along with the rest of crypto land has found its new, and much slimmer token price which should gain momentum over the summer. None the less, we advise you to steer clear of this particular platform if you have concerns about short term token price growth. This is a very high-risk enterprise and will tend to have huge volatility swings.
Defi continues to grow even amidst the market crash, as these platforms and communities are getting a trial by fire with the ups and downs of the entire crypto market. This means once it's all said and done, we will see an entirely different market in months to come.
The good news for investors is that there are bargain sales, and among the leading tokens that have weathered the storm you now have will have an even stronger group of decentralized assets.
A veritable cornucopia of platforms and tokens that have value and merit, with huge earnings potential, if they can weather the volatility of the market. Much of which has nothing to with cryptocurrency.
While Ethereum still holds great value, if you have any knowledge of Ethereum then you know that the demand for its gas, what will necessarily limit the total cost of its token price tag. Not to say it won't continue to be hugely expensive to use, but that is my point - IT IS, VERY EXPENSIVE TO USE!
The importance of this point is that if the price increases substantially it will have the reverse effect, and customers will continue to bleed into the other developing chains. Either way I would say a substantial amount of Ethereum is essential to any portfolio.
Some other tokens to seriously think about acquiring include:
Polkadot
Kusama
Quickswap
Telcoin
Anyswap
Polygon Matic
Cake
Mana - Decentraland
Each of these has substantial LONG-TERM GROWTH potential due to their utility demand, and not just because they were able to organize great publicity campaigns to drive adoption with logos made for kids.
Crypto currency has its own market which is much more volatile than other markets for many reasons. In this volatility substantial wealth can be earned, however only to the astute and technically aware investors. Keep this in mind as you invest, have a plan, and stick to it, as it is that plan that will determine your profit, even in a down market, which in our case is still technically a Bull Market. Remember to always do your best to be diligent in studying your investment before jumping in.
Wednesday, June 23, 2021
Monday, June 7, 2021
Sunday, June 6, 2021
Saturday, June 5, 2021
Earn Passive Income: 219 Asset Staking Investment Platforms (june 5 2021)
https://www.stakingrewards.com/
Staking Rewards Web Site: earning passive income (ref link)
https://www.stakingrewards.com/providers
The End of the Bitcion Bull? Where did all my Doge go? What price trends and current events suggest for the month of June of 2021 (by the author)
Ok so if you have been on planet Earth this past year and your somehow interested or invested in cryptocurrency and blockchain industries, this article will definitely have some interest for you.
This month saw Bitcoin "correction" in the market. Which is trade talk for understating that an otherwise sound investment lost a reasonable amount of its value for logical and somewhat predictable reasons.
Tell that to the millions of small investors whose holdings went down by 50% overall.
So with that said what's happened this last month, and what's going to happen?
Bitcoin Bull or Bear?
Even this author, with my sources, research and networks has struggled to really make sense out of what is happening with Bitcoin. By understanding this, we can better predict what changes will take place in the wider market.
So lets take the last six weeks in brief:
The first point to understand is that Bitcoin has been trending down for the past two months. Starting in April 14 Bitcoin began to a downward trend, from its highest of 63.6K to around 49k (its currently about 40k).
Then it rebounded briefly and erratically back up to around 59k and continued to have substantial volatility at a high level, losing 10% or so and gaining it back until May 9.
What happened on May 9? Enter Mr. Elon Musk, aka the worlds other richest man... who seems to have taken to cryptocurrency as something of a pastime and hobby, as opposed to his more serious exploits such as GOING TO MARS.
In this time he began releasing a series of tweets that ultimately cost investors up to 50% of their Bitcoin holdings!
After his first tweet on May 7, he appeared on SNL as a cohost and made a couple more "questionable" comments (scripted no doubt) about Doge and crypto in general.
This had the immediate effect of Dropping Doge's overall price from its high of .75 cents to at one point .29 cents.
Two of tokens most widely held by young people and new investors, these tokens have yet to regain their momentum, although according to financial indicators the Bitcoin Bull is still "running".
While price projections indicated last week that Bitcoin was still in a Bull Market, this weeks data has since began to dispelled this notion, however as a financial term, the concept of a Bull Market is defined by having at least two consecutive quarters of growth.
Translation: BITCOIN IS STILL GROWING.
This in spite of several "perceived" problems investors have when forecasting markets and speculating about potential trends and high yield investments.
While Bitcoins growth, as well as Doge, my be slower, it will continue to yield substantial dividends to any investor whose in it for the long haul of 90 or more days.
Any strategy of short selling Bitcoin has substantial risks, as an investments growth is fueled by its practical adaptability and usage, which for Bitcoin and Doge, in spite of their popularity, is limited.
In addition to the negative PR by Elon Musk Bitcoin, a market leader and standard, has significant fundamental investment issues:
It has limited adaptability to other purposes in the blockchain economy;
Mining of it is generally costly and to small operations completely unprofitable;
Regulations in the U.S. and in Asia are still pending which put fear into larger institutional investors and venture capitalists;
People's perceptions of this product are varied, with even less knowledge of the technology on which it is built, creating a vacuum in terms of how people expect its price and value to behave, this its volatility easily spooks investors.
There are many other competing and even less volatile, in terms of price, that are available for investors to move into, diverting those funds which would normally be held as Bitcoin.
So with these thoughts in mind, and Bitcoins price remaining below 40K, as well as recent chart projections, we believe that the Bitcion Bull Market is actually over.
While Bitcion will continue to grow, it will be at a slower pace, with more measured increases. So if you into Bitcoin for the long haul, six months to a year or more, then know that it does make sense to get into the market and hold.
If however your looking for a quick turn around or rapid growth, in Bitcion, you may be greatly disappointed.
China and The U.S. Seek To Regulate Binance
Although Bitcoin and its clones are thought to be DECENTRALIZED, a vast majority of the worlds MINING is greatly centralized.
Where? The PRC of course. The production of these digital ledgers and the accounting blocks which drive them called "Tokens" have taken on a magical life of their own, literally making money, almost out of thin air... or so it seems to the confused public and policy makers, still years behind understanding what a digital block, or digital ledger is.
The immediate response, accusations of money laundering, outright bad business, and a host of other financial crimes.
These events have driven Asia's largest crypto conglomerate into hard times as investors (if they are smart) flee for more... predictable and regulated investments.
Research suggests that the while much of what Binance Exchange and Chain produces, will be under hard times for the next weeks going into summer.
The good news is that for speculators this makes a great opportunity for investment, particularly if your horizon is one to two years into the future.
For short term yields, there's definitely a bumpy road ahead;
The perpetual chaos continues with a growing list of lawsuits, both in China and the U.S., with moves by both nations to introduce tougher crypto regulations.
The market output has translated into a huge price drop across the board as investors start moving into markets with greater price and earnings stability. In the crypto world this can happen in a matter of days.
Thus new and undeveloped chains are receiving a new injection of energy and price increase.
Some of the benefactors include a host of altcoins which weren't as badly battered by the recent market volatility such as HNT, Kusama, Polywhale, Polygon and ADA.
The end result is a deflation in the market leaders token price, but not the market value overall.
In other words the money is still IN THE MARKET, just not where some investors think it should be.
Rarely do high yield earners leave crypto for traditional bank accounts IRA's, or other long term "stable" investments as the lack of liquidity in the market acts as a barrier to this. Also there are many options in virtual currency which allows investors to shelter their investments.
Bitcoin Bull v. Bear
After all his publicity Mr. Elon Musk went from Bull to Bear on Bitcoin. This translated in the markets as the beginning of bad times for Bitcoins market price dropping from a high of around 62K to less than 30k at its lowest finally stablizing at around 36.5K,
The bad news? This may not be the end of price woes for the crypto giant. There are several fundamental problems in the Bitcoin playbook which limit its growth over the short term. As this becomes more apparent in the market, particularly from institutional investors, it translates into a slow price drop.
While the summer increase awaits, Bitcoin may still experience some new highs this year, but for now a 35.6K price tag would be considered cheap, and a worthy investment.
Why? The price momentum of Bitcoin is still, in spite of its woes, on an upward projectory. So while it may not grow quite as fast, it will grow, and , most likely will regain its former 59K value by the end of the year.
Before that however, expect some bumps in the road.
The Ethereum Problem
Traffic, traffic, traffic. What good is all the computing and verification power in the world if you can't access it when you need to. In a market where hours are like days, in terms of price volatility, getting trades executed ASAP is imperative.
The Ethereum network however remains clogged, and at capacity, with trades in limbo for hours if not days. Combined with high fees and transaction costs crypto investors are seeking new and lesser known platforms which offer the same service at less the cost, and with quicker execution.
Another small but persistent concern for investors is that people still don't understand exactly what Ethereum is! A simple perusal of the white paper will leave a person mystified, however the simple version is that Ethereum is ideally a WORLD COMPUTER.
Its design was not intended to develop a token price of 50K one day , because Ethereum is the substance that powers its network. Therefore if the price were to increase substantially, so too would the cost of using Etherum platforms and its gas (the internal fees that power the cost of transactions within the application).
Translation: we don't want the price of Ethereum to go up exponentially, even if you own the token, strictly for investment purposes. Even that person may one day use other on or off chain applications which will then be much more expensive as a consequence of uncontrolled price growth.
That's a double edged sword for some of us.
Decentralized Finance
A growing trend which has pushed the development of these currencies are various platforms which allow you to lend or invest your tokens.
Platforms such as Pancake, Bunny, Venus, Alpaca, and around 1000 others give investors huge returns on the liquidity they provide to the application by means of lending pools. Allowing deposits as small as the token price, these yield farms are powered by smart contracts which allow investors to receive their tokens directly back into their accounts at the end of the lending terms.
Savvy investors are cashing out their Bitcion and Ethereum and steering their capital toward these "yield farms" as ways of creating passive income. There are however risks, which anyone looking to do this needs to understand before committing substantial sums.
We will go into yield farms further in this blog as they merit substantial time and detailed discussion.
Tuesday, June 1, 2021
Saturday, May 29, 2021
Some Basic Crypto Investing Principles for Altcoin Investors (by the author May 29, 2021)
People are making some huge mistakes that will cost them a lot this year. While some of the more well "heeled" investors may find this un important, most of us generally have a problem losing money.
Always keep in mind that as you develop your investment strategy (if you don't have one or know that you need one keep reading), so these are some suggestions you will need to consider as you go, in order to avoid costly mistakes.
Due diligence is just good investment sense, so consider these 'best practices' as part of that "due diligence":
Study your investment
Jumping into a token without knowing what it is, what it does, the idea behind its value, etc, is what's called "Las Vegas" style investing, in other words: pick a winner!
Small investors will tire of this quickly and bigger investors will bleed out gradually.
Create a game plan and stick to it.
Know how much you intend to invest, how long you plan to hold it, and what you plan to do with it after that. Then do your best to follow it. Realizing an investment can only be achieved when meeting investment time goals. If you don't give it time, and bolt each time the market shifts you will incur greater costs and loss of your initial investment. Hold firm.
If you are a person who hold their tokens, your plan will be different than one who lend their tokens. Know what you plan to do with your tokens while you have them, and ultimately how you plan to dispose of the profit.
Test the waters before committing
Before you send ten thousand dollars to some new exchange, send fifty. Test the exchange with smaller sums before entrusting your entire investment. There are still huge problems in the crypto world which remains largely unregulated and un censored.
In many respects the investor is at the mercy of these companies, exchanges , and communities. Take time to better understand the community and its reason for existing.
Make sure the project makes sense
Regardless of the hype, a token is only as good as its daily yield. Make sure you know why a particular project exists, find out about the community, check out its feeds subscribe to its alerts. When you see red flags, don't hesitate to run, and always remember that if you cant understand what they do... chances are other investors won't either.
Don't Fall In Love With Your Own Investment
The more upfront information you have, the better informed you are as an investor and the less you are inclined to "identify your investment" with your "ego". You will know this if and when you find yourself defending an apparently bad idea...
Know When To Walk Away
After identifying and obviously bad investment, do not hesitate to walk away. This includes finding out some vital flaw surrounding its tech, community, idea, marketing plan, the problems can vary but the consequence is the same, poor return or loss of principle. That isn't even the worst thing that can happen.
There are many illigitimate projects with unscrupulous sposors. Don't be afraid to dive into the company chat streams and really get a picture of how each project runs. Worse things that can happen is that these companies walk away with your money, or use your information to take even more of your money. It happens in ideal settings, let alone in a rapidly evolving world of blockchain finance.
Seek Higher Knowledge
Don't be afraid to add to your education. Its never too late to learn and life is a process of discovering new ideas. If you have the time and energy enroll in free or low cost blockchain certification courses. If you haven't been in school in a while, this is a great time to start as we are at the beginning of a new frontier in finance and global commerce.
Don't be educated out of the market. As schools churn of better educated youth every year, for many, the gap between education and success has only gotten smaller. That's not the case for millenials. For those left behind the upcoming decades will deal harshly, in terms of progress, growth of wealth and income development.
Keep in mind that developing a passive income means becoming and active investor. That starts with education as streams, youtube infomercials, and chat rooms can only take you so far before a certification or degree become ideal.
There are many ways to get a free education and many companies will even pay you to learn about their products. Step out of the box, or die in it.
Learn the art of making a zero sum investment
Ideally when it comes to making a game plan a person invests in a way that eventually they get back their principle and earn a profit off their interest which they reinvest to earn "compound interest".
This is ideal, but not always easy. More so if you know what the hell your doing. For beginners, the goal is to invest, earn, take out the earnings after a set time, then reinvest those earnings until your have taken out the equivalent of your initial principle.
This can be a detailed discussion and I will expand on it in future articles, however for the sake of this discussion our goal is to earn back the initial principle which you can then re-invest and continue to grow your passive income.
Build A Network
The blockchain world is filled with interesting and colorful communities. Get to know them, and try to team up with other like minded investors. Having direct industry knowledge will always beat reading the white paper. After all these are the people to whom you are giving your money.
Over time however you may come to know and respect the people you will come into contact with. Everyone has a value and are a potential source of unknown information, cooperation and inspiration. Don't be foolish, but also don't be shy.
The world is rapidly becoming a much smaller place, and the blockchain communities are no exception so connect with balanced, trustworthy and like minded people who are as invested in these ideas as yourself. The bigger the network, the better!
Monday, May 24, 2021
Reporting your investment earnings for tax purposes this year (2021) reference link
https://www.bankrate.com/finance/taxes/reporting-your-investment-earnings-1.aspx
Sunday, May 23, 2021
Still "thinking" about investing in cryptocurrency? Here's some compelling reasons why NOW IS THE BEST TIME! (by the author)
So I consulted my in-house crystal ball... ok not a crystal ball exactly, but rather our professional investor, with many years of building and managing traditional portfolios in one of the most cut throat of environs, Hong Kong.
Asia's largest center of finance and trade it was a proving ground like no other. A place where careers can easily be cut short by making the wrong recommendations, or inaccurate forecasts. Where the margin for error is thin, to non-existent.
Dorothy's analysis of this weeks market movements, and upcoming trends has been in high demand as more than 1 trillion dollars of value was whisked away from legers within days, adding to one of histories worst days in the cryptocurrency markets.
Gloom and doom is in the air, but for long time investors such as Dorothy, this is not a time to run away, but rather to move into better positions within a market that, in spite of glorious losses, has only just began on its way toward beating earnings this year.
While we discuss various tokens to acquire, rising stars and falling ones alike, today we simply want to give some very good reasons why investors should be rejoicing:
1. Low Barriers to enter the market; Bitcoin and other major market leaders are at record discount prices, giving less wealthy buyers an opportunity to acquire greater positions at less the cost;
2. This is still a BULL MARKET! Not opinions but statistics demonstrate that the growth momentum has not stopped and may increase slowly at first over the next few days. The wider market and particularly the tokens mentioned in this column will see huge gains;
3. Weak investors are jumping out of the market adding to the chaos but briefly increasing the supply of several hard to get tokens, some mentioned in other postings in this column; as a new and developing market its inherently volatile, but not inherently hazardous when following good investment sense.
4. The summer is almost here, and during the summer months the growth will spurred on by several factors, including chip and energy shortages fueling price growth; With inevitable but consistent inflationary bursts, expect chaos, but overall the crypto markets will outperform the Dow, S&M, and other traditional markets, as new ICO's, IDO's, and IEO's enter the market each day;
5. Buy low and sell high. If you lost money these past few days but still have your positions, don't get out now. The patient investor wins the day, and if your in after all this chaos, you are deffinately what I would call, a PATIENT INVESTOR.
As usual, do your homework, educate yourself about your investment, create a game plan, and stick to it after all, that's why we create game plans!
