How Does a Cryptocurrency ETF Work?

The 5 main benefits of using the relative power of an investment boost are often overlooked wanting to just buy and make money through stocks, ETFs or mutual funds. This, as well as the fact that the name “relative momentum of power” sounds scary, and many people just don’t realize it.

As I wrote earlier, “Avoiding Relative Investment Power Mistakes,” an RSM-based analysis makes momentum analysis a step further by performing a comparative analysis of how strong a stock or fund’s momentum is and even better if properly tuned how strong a particular ETF is or fund compared to others. Thus, this compelling RSM analysis focuses on ticker characters that are strong and have the potential to not only stay strong but also continue to grow; and when they falter, the analysis signals that it is time to sell. ”

Advantage №1:

This is one of the most proven technical analysis methods for finding stable winning investments.

Many books have been written about RSM, including the final guide by Michael J. Punishment: smarter investment in any economy (currently sold out, but hopefully will be reissued soon).

Advantage №2:

RSM works for all types of investment:

• Short-term
• Long-term
• Moderate
• Aggressive
• Conservative
• Promotions
• ETFs
• Mutual funds

Advantage №3:

The formulas that provide the best results can be implemented even if you are not technically savvy or do not have math because they are an integral part of readily available investment software.

The various formulas, all related to each other, allow you to decide which method of RSM analysis gives you a method of investing relative momentum strength that fits your goals and individuals.

Kar tests seven different formulas of relative strength:

• Alpha
• Normalized rate of change (ROC)
• Rear weight ROC
• Frant-weighted ROC
• Price / moving average ratio
• Diets of several moving averages
• Different time periods are averaged

Advantage № 4:

Investment analysis using alpha or any other RSM method can be easily combined with other buying and selling rules in both personal investment software and investment advisor software.

These buying and selling rules include:

• Stops
• How long to hold a position
• Ranking to be sure the position is high among your character group

Advantage № 5:

You can do easy technical analysis with or without standard deviation (SD). By adding SD to the analysis, you can, in fact, automatically be more conservative.

In fact, with or without SD you can optimize any RSM calculations, such as alpha, to achieve your conservative, moderate, or even aggressive investment goals with the right investment software.

While the relative power of investing sounds daunting, the benefits can lead to long-term growth in your portfolio, especially if you find personal investment software that transforms RSM into a few clicks and allows you to compare potential returns and risks.

1. What is the best Forex platform?

Such a question cannot be answered. This, of course, will depend on the trader, according to his preferences, knowledge, experience, and what he intends to trade (what financial instrument). Many traders with average experience, especially when trading in the foreign exchange market, prefer to use platforms such as MT4 or C-Trader, which are designed mainly for Forex trading, as well as CFD trading, as well as for those who have some knowledge about the trading market.

Other, more novice traders would prefer to use platforms such as those found with Easy-Forex, iForex or eToro, where their use requires limited mathematical / computational knowledge and they are much easier to use.

More advanced / experienced traders, who also prefer access to multiple markets, prefer to use brokers such as Interactive Brokers or SAXO Bank’s SAXO Trader. Such platforms typically contain much more advanced charting / analytics tools (although, in fairness, most analytics tools are also available in MT4 / C-Trader), and provide access to thousands of tools including stocks, ETFs, swap trading, etc. .e .; and designed with the ability to effectively allow traders to participate in such markets.

2. Forex trader: what is the best way to conduct forex?

If you have looked into forex trading, then you are most doubt faced with all the different opportunities to make money and you are wondering what is the best way to learn forex trading. First of all, the most important thing I would advise is to get a Forex education. There are countless Forex materials on the Internet for beginners as well as for experienced traders – all you need to do is search. Spend some time reading how forex works, trading concepts and how prices are affected by economic and political conditions.

Second, you need to gain some experience if you want to learn forex trading, this is the only way. For starters it is wise to have this on a demo account. This will give you a good technical basis on the mechanics of forex trading and get used to using a trading platform.

After trading on a demo account for a while, it’s also important to use a real one, albeit with a small investment – find a broker who will accept smaller trades (0.01 lots for currency) so you can feel real for live market. This is a completely different game, trading on a demo and a real platform because of the psychological effect that real money trading has. A small trade will allow you to put your money on the line, but with little risk if you make mistakes or lose money.

From there, provided you gain more than you lose, you need to gradually increase your trading size and invested capital, always remembering that this is an amount you can afford to lose and with which you feel comfortable.

3. What is the best software for forex trading?

There are a number of programs for trading the Forex market that have their definite advantages and disadvantages. Many trading companies have created their own platforms, while others prefer to use and are essentially White Label, existing solutions that are widely known in the industry.

It would be wrong to say which one is the best, as it depends on the opinion of the individual user, but there is a clear trend in terms of popular platforms, which have been favored by both beginners and veteran traders. These platforms are Metatrader 4 and C-Trader. The first was built primarily for Forex products, and the second was designed to accompany other instruments such as stocks and ETFs. Both platforms are easy to use and master, and complete with full charting and technical analysis capabilities.

4. Forex trader: how can you be a good forex trader?

To sum it up, the key to a good forex trader is discipline. Yes, there are many things you need to know and know before making any deals or getting involved in the financial industry, but one thing that needs to stay consistent throughout is discipline. Discipline in learning, in making your first deals and in keeping your plan.

The basics that all new traders should follow:

– Learn about Forex – the network has a lot of material. Spend a good 1 month training. Research technical and fundamental analysis. Your training should continue in your trade.

– Come up with a strategy – Establish rules that will determine your trading model and how you will enter and exit the market.

– Practice on the demo – Open a demo account and trade as you really are. Of course, this will not be “true”, as if you were trading for real, due to the fact that the fear of losing will not affect your decisions. Don’t move on to the next step if you can’t make a profit on the demo first.

– Practice on a real account with a small amount – Do this to understand the difference between real money trading and demo trading. Do this with a substantially small amount but enough to make you worried about losing it.

– Trade on a real account with a significant amount – Do it with an amount that you “conveniently” completely lose. Even if your strategy worked on demo and real with a small amount, it may not continue to do so in the future. Stick to your strategy (have complete discipline). If you see that a strategy has failed, adjust your strategy accordingly, but stick to it (to the point) always as soon as it has been adopted.

5. Forex market: is it possible for a forex trader-amateur to make a steady income by trading forex?

Many traders make a living by trading Forex, and some have made very rich profits, allowing them to become self-employed and leave work 9-5. All these traders have one thing in common – they all started as amateurs in forex! No one is born with trade know-how; this is achieved through dedication and discipline.

So yes! an amateur forex trader can really make a steady profit from forex trading. As long as he is willing to make an effort and has the discipline to adhere to such a commitment, there is no reason why he cannot do what others have done to him in the same shoes.

6. Forex Trader: Who is the best forex trader?

There is no best trader in the Forex market – or at least there is no clear way to measure it (whether it’s the amount you win or the percentage earned from it). In addition, because many of the world’s leading forex traders trade not their own money but the company’s funds and capital, this means that different psychological conditions and risk appetites exist for different traders, and thus compare the success of such traders with them. not indifferent. those who trade with their capital.

The only thing you need to know is what many Forex traders have in common – their appetite for success, their diversified portfolio and willingness to take moderate risks.

7. Has anyone ever made money on Forex?

Yes! Not only did people make money by trading Forex, but many made a living!

While most retail traders will not have as much success as professionals, this is largely due to poor money management strategies and a lack of discipline in sticking to their strategy.

With 100% discipline and a good money management strategy, there is no reason why anyone should not have a good chance of making money from Forex trading.

8. Is FOREX the best way to invest money?

It’s hard to say whether this will be the best, as there are many ways to invest money and it largely depends on what the person is familiar with; however, this is one of the best, mainly due to the fact that unlike the stock / housing market – an investor can make money no matter how the instrument works by selling / buying the instrument (or doing both – known as hedging).

In the stock market, you can only invest in the success of the stock – but in Forex, you can buy / sell a currency against another, and always have the opportunity to make a profit.

In addition, the fact that Forex is usually traded with leverage, allows Forex trading to become one of the most volatile and thus allows you to make higher profits (as well as losses) – with proper trading.

9. Forex market: what are the best forex blogs?

There are a number of places online to find a great blog related to forex, in fact many brokers also have their own blogs; but to remain unbiased, I will recommend a non-brokerage blog. One of the most useful blogs for both beginners and veteran traders is babypips.com – there are regular updates on current market movements as well as lots of information and ideas being expressed.

10. Why do individual investors usually lose money on Forex?

Most retail investors are losing money on Forex. While they may receive the right training and instructional material (or at least the same as some other successful traders), many often fail due to poor money management rules and / or lack of discipline. The latter is the most common.

The most difficult thing in Forex is not to make calculations and not to predict where it goes, how much to trade and / or what your limits should be; it is to follow your strategy and follow 100% discipline.

Bitcoin peaked about a month ago, on December 17, at a high of nearly $ 20,000. As I write, the cryptocurrency is less than $ 11,000 … a loss of about 45%. It’s more than $ 150 billion in lost market capitalization.

The crypto-commentary has a lot of wringing of hands and gnashing of teeth. It is, but I think the “I-I-told-you” crowd has an advantage over the “excuses”.

Here’s what: if you just haven’t lost your shirt on bitcoins, it doesn’t matter. And most likely, the “experts” you may see in the press are not telling you why.

In fact, the collapse of bitcoin is great … because it means we can all stop thinking about cryptocurrencies altogether.

Death of bitcoin …

In a year or so, people won’t talk about bitcoin in the queue at the grocery store or on the bus like now. That’s why.

Bitcoin is a product of justified disappointment. Its designer explicitly said that the cryptocurrency was a reaction to the government’s abuse of fiat currencies such as the dollar or the euro. It was supposed to provide an independent peer-to-peer payment system based on virtual currency, which could not be reduced, as they were limited.

This dream has long been abandoned in favor of crude speculation. Oddly enough, most people care about bitcoin because it seems like an easy way to get more fiat currency! They don’t own it because they want to buy pizza or gas for it.

Aside from the fact that it’s a horrible way of electronic transactions – it’s painfully slow – the success of bitcoin as a speculative game has made it useless as a currency. Why would anyone spend it when it is valued so quickly? Who will accept it if it depreciates quickly?

Bitcoin is also a major source of environmental pollution. Only one transaction requires 351 kilowatt-hours of electricity, which also emits 172 kilograms of carbon dioxide. That’s enough to feed one family in the U.S. for a year. The energy consumed by all bitcoin mining to date can power nearly 4 million U.S. households during the year.

Paradoxically, bitcoin success is as old-fashioned speculative game – not its intended libertarian use – attracted government repression.

China, South Korea, Germany, Switzerland and France have introduced or are considering bans or restrictions on bitcoin trading. Several intergovernmental organizations have called for concerted action to contain the obvious bubble. The U.S. Securities and Exchange Commission, which once seemed to approve financial derivatives based on bitcoins, now seems to be hesitant.

And according to Investing.com: “The European Union is introducing stricter rules to prevent money laundering and terrorist financing on virtual currency platforms. It is also considering restrictions on cryptocurrency trading. ”

Someday we may see a functional, widely recognized cryptocurrency, but it won’t be bitcoin.

… But an incentive for cryptocurrencies

Good. Overcoming bitcoin allows us to see where the real value of crypto-assets lies. Here’s how.

To use the New York subway system, you need tokens. You can’t use them to buy anything else … though you do could sell them to someone who would like to use the subway more than you.

In fact, if subway tokens were in limited quantities, a lively market could emerge for them. They can even trade much more than they cost initially. It all depends on how many people I want to enjoy the subway.

This is, in a nutshell, a scenario for the most promising “cryptocurrencies” other than bitcoin. They are not money, they are tokens – “crypto-tokens”, if you will. They are not used as a common currency. They are good only within the platform for which they were designed.

If these platforms provide valuable services, people will want these crypto tokens and this will determine their value. In other words, crypto-tokens will have value to the extent that people appreciate what you can get for them from their associated platform.

It will make them real assets, з intrinsic value – because with their help you can get what people value. This means that you can reliably expect a stream of revenue or services from owning such crypto tokens. The important thing is that you can measure this future earnings flow against the crypto-token price, just as we do when calculating the value for money (P / E) of a stock.

Bitcoin, on the other hand, has no value of its own. It has only a price – a price that is set by supply and demand. It can’t bring in future revenue streams, and you can’t measure anything like a P / E ratio for it.

One day it will become insignificant because it will not give you anything real.

Ether and other cryptocurrencies are the future

Ether crypto-token for sure it seems as a currency. It is traded on cryptocurrency exchanges under the code ETH. Its symbol is the Greek symbol Si. It is extracted by the same (but less energy-intensive) process as bitcoin.

But the air is not a currency. Its developers describe it as “the fuel for Ethereum’s distributed application platform. This is a form of payment that customers of the platform make to machines that perform the requested operations.

Essential tokens give you access to one of the most sophisticated distributed computing networks in the world. It’s so promising that big companies are rushing at each other to develop practical, real-world uses for it.

Since most people who trade it don’t really understand and care about its true purpose, the price of ether in recent weeks has bubbled and frothed like bitcoin.

But eventually, ether will return to a stable price based on the demand for computing services that it can “buy” for people. This price will represent real cost which may be assessed in the future. This will be done by the futures market and exchange traded funds (ETFs) because everyone will be able to estimate its base price over time. Just like we do with stocks.

What will this value be? I have no idea. But I know it will be much more than bitcoin.

My advice: get rid of bitcoin and buy ether on the next drop.

Currencies are traded in pairs

Forex trading is the simultaneous buying of one currency and selling another. Currencies are traded through a broker or dealer and traded in pairs; for example, the euro and the US dollar (EUR / USD) or the British pound and the Japanese yen (GBP / JPY).

When you trade the forex market, you buy or sell in currency pairs.

Imagine that all the pairs are constantly in a “tug of war” with each currency on its side of the rope. Exchange rates change depending on which currency is stronger at the moment.

Major currency pairs

Subsequent currency pairs are known as “major”. All of these pairs hold the U.S. dollar (USD) on one side and are most often traded. The main ones are the most liquid and most traded currency pairs in the world: EUR / USD, USD / JPY, GBP / USD, USD / CHF, USD / CAD, AUD / USD and NZD / USD.

Major intercurrency pairs or secondary currency pairs

Currency pairs that do not include the U.S. dollar (USD) are known as intercurrency pairs or simply “crosses”. The main crosses are also known as “minor”. The most actively traded crosses contain three major currencies that are not included in the USD: EUR, JPY and GBP.

Some of the Euro-crosses are: EUR / CHF, EUR / GBP, EUR / CAD, EUR / AUD and EUR / NZD.

The following are considered yen crosses because they use the Japanese yen on one side: EUR / JPY, GBP / JPY, CHF / JPY, CAD / JPY, AUD / JPY and NZD / JPY.

As in Europe, the UK also has its crosses: GBP / CHF, GBP / AUD, GBP / CAD and GBP / NZD.

And here are some other currency pairs that are considered minor: AUD / CHF, AUD / CAD, AUD / NZD, CAD / CHF, NZD / CHF and NZD / CAD.

Exotic couples

Exotic pairs consist of a single major currency associated with the currency of a developing economy, such as Brazil, Mexico or Hungary. Here are some examples of exotic currency pairs: USD / HKD, USD / SGD, USD / ZAR, USD / THB, USD / MXN, USD / DKK, USD / SEK and USD / NOK.

Often the spreads are two to three times larger than in EUR / USD or USD / JPY. So if you want to trade exotic pairs, be sure to consider this in your decision.

Because the foreign exchange market is so unusual, traders have come up with several different methods of investing in foreign exchange. The most common of these are the spot forex market, futures, options and exchange traded funds (or ETFs).

Spot market

In the spot market, currencies are traded immediately or “on the spot” using the current market price. What’s so amazing about this market is its small spreads and round-the-clock operations. It is very easy to participate in this market, because accounts can be opened for only $ 25! And most brokers usually provide charts, news and other information for free.

Futures

Futures are contracts to buy or sell a specific asset for a specified fee at a future date. That’s why they are called futures! Forex futures were developed by the Chicago Mercantile Exchange (CME) long ago in 1972. Because futures contracts have certain standards and are traded through a centralized exchange, the market is extremely transparent and well regulated. This means that the price and details of the transaction are readily available.

Options

An “option” is a financial instrument that gives the buyer an opportunity or opportunity, but not an obligation, to buy or sell an investment at a specified price on the expiration date of the option. If a trader has “sold” an option, then he or she will be happy to order or sell the asset for a fee at the expiration date.

Just like futures, options are also traded on an exchange, such as the Chicago Board of Exchange, the International Stock Exchange, or the Philadelphia Stock Exchange. But the disadvantage of trading options on forex is that market hours are limited for certain options, and liquidity is not as great as in the futures or spot market.

Exchange-traded funds

Exchange-traded funds or ETFs are the newest participants in the foreign exchange market. An ETF may contain a set of stocks combined with certain currencies, allowing the trader to diversify with other assets. They are produced by financial institutions and can be traded as stocks through an exchange. Like forex options, the limitation in trading ETFs is that the market is not available all the time. In addition, because ETFs hold stocks, they are subject to trading fees and additional transaction fees.

Several years ago, when asked at a meeting of the AAII (American Association of Individual Investors) in northeastern New Jersey, a comparison was made between the professionally managed portfolio “Market Cycle Investment Management” (MCIM) portfolio and any of several High Dividend Select stocks. . ETFs.

• My answer was: which is better for retirement, 8% of income in your pocket or 3%? Today’s answer will be 7.85% or 1.85%… and, of course, there is no molecule of similarity between MCIM portfolios and ETFs or mutual funds.

I just took (closer than I-usually-worried-to) “Google” to the four “best” ETFs with high dividends and, similarly described, a group of mutual funds with high dividends. ETFs are “marked” by an index such as the “Dividend Allocation Index,” and consist mostly of high-cap U.S. companies with a history of regular dividend increases.

Mutual fund managers are tasked with maintaining an investment mechanism with high dividends and are expected to trade according to market conditions; An ETF holds every security in its underlying index, all the time, regardless of market conditions.

According to their own published issues:

• The four “best” ETFs with high dividends in 2018 have an average dividend yield (i.e. in your checkbook on spending money) in … pause to translate the spirit, 1.75%. Check: DGRW, DGRO, RDVY and VIG.
• Just as outrageous profits, the “best” mutual funds, even after slightly higher management fees, produce a whopping 2.0%. Look at them: LBSAX, FDGFX, VHDYX and FSDIX.

In fact, how can one hope to live at this level of income production with a portfolio of less than five million dollars. This is simply impossible to do without selling securities, and if ETFs and funds do not grow in market value each month, the dive into the principal amount should occur on a regular basis. What if the market is taking a long turn?

The funds described may be the best in terms of “total profits,” but not from the profits they produce, and I have not yet determined how you can use either total profit or market value to pay your bills. without the sale of securities.

As much as I love high-quality dividend-producing stocks (all investment grade stocks are dividend payers), they just aren’t the answer to “readiness” to retire. There is a better, profit-oriented, alternative to these “dogs” producing equity income; and with much less financial risk.

• Note that the “financial” risk (the probability that the issuing company will not make its payments) is significantly different from the “market” risk (the probability that the market value may fall below the purchase price).

To compare apples to apples, I chose four equity-focused closed-end funds (CEFs), from a much larger universe that I’ve been following quite closely since the 1980s. They (BME, US, RVT and CSQ) have an average return of 7.85% and a payment history of an average of 23 years. There are dozens of others that bring in more profits than any of the ETFs or mutual funds mentioned in Google’s “top class” results.

Although I firmly believe in investing only in dividend-paying stocks, high-dividend stocks are still “growth-oriented” investments, and we cannot expect them to generate such income. on which one can rely from one’s cousins ​​for “income purposes.” . But the stock-based CEF is very close.

• If you combine these monsters of earnings from stocks with the same managed earnings CEF, you have a portfolio that can lead you to “retirement readiness” … and that’s about two-thirds of the content of the MCIM-managed portfolio.

When it comes to generating income, bonds, preferred stock, bills, loans, mortgages, real estate, etc. are naturally safer and more profitable than stocks … as envisioned by the gods of investment, if not the “Wizards of the Wall”. The street. They’ve been telling you for almost a decade that a return of about two to three percent is the best they can offer.

They lie through their teeth.

Here is an example, as reported recently Forbes Magazine an article by Michael Foster entitled “14 funds that break Vanguard and bring in returns of up to 11.9%”

The article compares both profitability and total profitability, quite clearly shows that the total profitability is meaningless if the competition brings 5 ​​or 6 times more annual income. Foster compares seven Vanguard mutual funds to 14 closed-end funds … and outsiders win in every category: common stock market, small capitalization, medium capitalization, large capitalization, dividend growth, U.S. growth, and U.S. value. His conclusion:

• “When it comes to yields and one-year returns, none Vanguard funds will win. Despite their popularity, despite their fascination with passive indexing and despite their pleasant history, many want to believe in the truth – Vanguard – lagging behind. “

Hello! It’s time to step up your income program before retirement and stop worrying about total income and changes in market value. It’s time to put your portfolio in such a position that you can do it unambiguously, without hesitation and with full confidence:

“Neither stock market volatility nor rising interest rates are likely to have a negative impact on my retirement income; in fact, I’m in an ideal position to take advantage of all the markets and interest rate movements of any magnitude at any time … never breaking into a director except for contingencies. ”

Not yet? Try it.

* Note: No mention of securities in this article should be construed as a recommendation for any specific action: purchase, sale or retention.

In the first edition of CRYPTO TREND we introduced cryptocurrency (CC) and answered a few questions about this new market space. Every day in this market a lot of NEWS. Here are some highlights that give us an idea of ​​how new and exciting this market is:

The world’s largest futures exchange for creating futures contracts on Bitcoin

Terry Duffy, president of the Chicago Mercantile Exchange (CME), said: “I think sometime in the second week of December you will see our [bitcoin futures] contract for listing. Today you can’t short bitcoin, so there is only one way. You either buy it or sell it to someone else. So you create a two-way market, I think it’s always much more efficient. ”

CME intends to launch bitcoin futures by the end of the year pending regulatory review. If successful, it will give investors the opportunity to go “long” or “short” on Bitcoin. Some stock market vendors have also filed applications for bitcoin ETFs that track bitcoin futures.

These developments can allow people to invest in cryptocurrency space without having direct CC rights or using the services of the CC Exchange. Bitcoin futures can make a digital asset more useful by allowing users and resellers to hedge their currency risks. This could increase the spread of cryptocurrency by traders who want to accept payments in bitcoins but fear its volatile value. Institutional investors are also accustomed to trading in regulated futures that do not suffer from money laundering.

The CME move also suggests that bitcoin has become too big to ignore, as in the recent past the exchange seemed to have ruled out crypto futures. Bitcoin is all that everyone is talking about in brokerage and trading firms, which have suffered against the background of growth, but unusually calm markets. If futures on the exchange soared, it would be virtually impossible for any other exchange, such as CME, to catch up, as scale and liquidity are important in derivatives markets.

“You can’t ignore the fact that it’s becoming more and more a story that won’t go away,” Duffy said in an interview with CNBC. There are “major companies” that want to access bitcoin, and there is “huge deferred demand” from customers, he said. Duffy also believes that attracting institutional traders to the market could make bitcoin less volatile.

The Japanese village will use cryptocurrency to raise capital to revive the municipality

The Japanese village of Nishiawakura is exploring the idea of ​​holding an initial coin placement (ICO) to raise capital to revive the municipality. This is a very new approach and they may ask for support from the national government or seek private investment. Several ICOs have had serious problems, and many investors are skeptical that any new token will have value, especially if the ICO turns out to be another joke or scam. Bitcoin, of course, was no joke.

Initial coin supply – (ICO)

We didn’t mention ICO in the first edition of Crypto Trend, so let’s mention that now. Unlike an initial public offering (IPO), when a company has a real product or service for sale and wants you to buy their company’s shares, an ICO can be held by anyone who wants to initiate a new Blockchain project with the intention of creating a new token on their chain. ICOs are unregulated, and some have been completely rigged. However, a legitimate ICO can raise a lot of money to fund a new Blockchain project and network. It is typical for an ICO to generate a high token price near the beginning and then return to reality soon after. Because ICOs are relatively easy to hold if you know the technology and have a few bucks, there were a lot of them, and today we have about 800 tokens in play. All of these tokens have a name, they are all cryptocurrencies, and with the exception of very well-known tokens such as Bitcoin, Ethereum and Litecoin, they are called alt coins. At this time, Crypto Trend does not recommend participating in the ICO, as the risks are extremely high.

As we said in Issue 1, this market is now a “wild west,” and we recommend being cautious. Some investors and first users have made big profits in this market space; however there are many who have lost much or all. Governments are considering the rules because they want to know about every deal to tax them. They all have huge debts and no money.

So far, the cryptocurrency market has avoided many government and conventional banking financial problems and pitfalls, and Blockchain technology can solve many more problems.

A remarkable feature of bitcoin is that the authors have chosen the finite number of coins that can ever be generated – 21 million – thus ensuring that this cryptocurrency can never be inflated. Governments can print as much money (fiat currency) as they want and inflate their currency to death.

Future articles will discuss specific recommendations, however, make no mistake, early investment in this sector will only be on your most speculative capital, money you can afford to lose.

CRYPTO TREND will be your guide when and when you are ready to invest in this market space.

Stay tuned!

The saying goes something like “the best time to start investing now”. For some beginners, this can be painstaking given the amount of information about the best investments with guaranteed returns. Other beginners will think it’s an easy way to make money fast and plunge headlong into the markets.

This publication is intended for amateur investors who are willing to make a strategic decision to protect their investments from the effects of volatile risk, but with enough freedom to take advantage of conservative opportunities that bring capital gains and explore the ropes of trade in the meantime.

In addition to a theoretical understanding of how financial markets work, it is important for a beginner to gain a realistic sense of the different strategies that investors use in their search for market opportunities.

The following is a detailed explanation of the five best approaches to investing that are suitable for beginners:

1. ETFs

Exchange-traded funds (ETFs) offer less stringent opportunities to participate in an exchange. For a beginner, investing in an ETF is ideal because an ETF combines multiple assets, including specific stocks, commodities and bonds, as well as performance tracked by an index. ETFs allow you as an investor to trade multiple assets normally as if they were a single stock. Diversifying ETFs allows beginners to access a wide portfolio of stocks and bonds, providing convenience and reducing risk. Thus, the flexible nature of ETFs allows the investor to trade flexibly, with the choice of buying and selling at any time during normal trading hours.

2. Mutual funds

Mutual funds are pooled investment funds that are ideal for beginners because of two main characteristics. First, a novice can access the services of a professional trader on behalf of the fund manager, despite the restrained capital, some of which is only $ 25. Second, the investor is exposed to minimal risk because mutual funds, like ETFs, invest in a diverse portfolio of asset classes from stocks, commodities and bonds in different markets and industries.

3. Individual stock

After a detailed analysis of the past performance of individual stocks and the prevailing facts, individual stocks can offer a stable investment opportunity suitable for beginners. However, care should be taken that investing in specific stocks does not violate the risk tolerance of your portfolio in the event of a negative turn of events. Markets are not always predictable.

4. Certificate of Deposit

Depositing money in a bank for a fixed period with a fixed and guaranteed return on capital plus interest is a smart investment opportunity for a beginner. The certificate of deposit is insured, and thus the capital plus interest is guaranteed to the investor at maturity. However, it is important to understand that access to this money is limited over a period of investment and may result in a commission or loss of interest in the event of withdrawal.

5. Highly profitable savings account

These investments also entail savings with the sole purpose of obtaining capital gains from interest over a specified period. However, unlike a certificate of deposit, interest is not fixed and therefore interest is accrued according to current market rates. However, the funds in this account are more liquid, so easily available.

Cryptocurrency is getting better every day. This continues to increase your wealth as well as your viral messages on social media. A contagious financial tool for a good portfolio and a catalyst for growth. An interesting fact is that there are over 5,000 cryptocurrencies.

2021 was a fantastic year, but where do we go?

Let’s increase the situation here. Both Bitcoin and Ethereum have touched higher performance bar. This is the hope of long-term investors. By the time you read this article, there may be more great news about cryptocurrency. I will try to present here the future possibilities of cryptocurrency.

New rules are currently in place. They are under the carpets. Measures are being taken to minimize the risk of cybercriminals. The goal is to make these investments a safe tool for people. For example: in September, China announced that all cryptocurrency transactions were illegal. Clear rules eliminate all obstacles to make trade safer.
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How will the new rules affect investors?

The IRS will find it easier to track tax evasion. Investors can transparently keep track of transactions. For example: recording any gains or losses of capital on crypto-assets will be easier. On the other hand, the price of cryptocurrencies will also affect a fluctuating market.

ETF approval is an important factor to consider

The Bitcoin ETF debuted on the NYSE. This will help investors acquire cryptocurrency from existing investment firms. Due to the growing demand, both in the stock markets and in the bond market this is the case. Let’s look at it from an investor’s perspective. Easier access to cryptocurrency assets helps people acquire them without problems. If you plan to invest in a Bitcoin ETF, remember that the risks are the same as in any other cryptocurrency. You have to be willing to take risks. Otherwise, investing your money is useless.
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What does the future hold?

Bitcoin is the best crypto market. It has the highest level of market capitalization. In November 2021, its price rose to $ 68,000. In October, the exchange rate was $ 60,000, and in July – $ 30,000. The market is experiencing large fluctuations in rates. Experts suggest keeping market risk for cryptocurrencies below 5% in the portfolio. When it comes to short-term growth, people are hoping. Bitcoin price volatility is a factor to consider. If you want to play long, short-term results should not affect you.

Watching it from an angle to increase your wealth is a bad decision. Stick to traditional investment instruments other than cryptocurrencies. For example: if you want cryptocurrency to be a tool for saving for retirement, it’s time to reconsider your decision. Keep your investments small and diversify them. This will reduce the risk factor. At the same time you will have more time to think about cryptocurrency.

You need to spend your money wisely and then invest in cryptocurrency. It is necessary to assess the associated risk factor and make a decision. Hopefully this article will help you.