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The Key Roles Asset Diversification plays in the World of Cryptocurrencies

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It is more common today to find crypto-asset holders who have little or no idea on how to diversify their portfolios. Diversification is very important if you are to develop a winning cryptocurrency portfolio. Over the years many people have failed as crypto traders because they do not have a real strategy. For something as highly volatile as cryptocurrencies, investors shouldn’t be without a good diversification plan.

How to best to diversify your cryptocurrency portfolio

For the sake of precision, in this article, we’ll be talking about a few distinct approaches to diversifying your cryptocurrency portfolio and grow your assets. Basically, we’ll be covering the following methods;

  1. Proper allocation of your assets
  2. Taking advantage of Proof of Stake protocol and Master nodes
  3. Investing in cryptocurrency banks to earn interest
  4. Trading cryptocurrencies on Exchanges

Proper asset allocation

In order to enhance diversification, it is important to invest in a vast variety of cryptocurrency assets. There is an old saying that is quite popular “any man who plans to succeed does not put all his eggs in one basket”. One of the biggest issues in asset allocation is knowing to choose which cryptocurrencies to invest in and how to spread your investment across each one of them. Some of the questions that pop up when we are faced with these issues are, “Which crypto-assets should I invest in?”, “where should I put more of my money in A or B”?. In as much as this can turn out to be a huge setback, it is more advisable to invest a larger ratio of your assets into large-capital cryptocurrencies like Bitcoin and Ethereum because they are more stable. These assets tend to retain value better when the market dips. Small-town coins are less stable, but they are also great for growth. Your portfolio can receive a huge boost if you pick the right coin, but it could also receive a big blow if you make a bad choice. You can diversify your portfolio by spreading your risk across multiple small-town and limiting your exposure to them.

Taking advantage of proof of stake and masternodes

In the early days of blockchain advancement, most cryptocurrencies like Bitcoin and Ethereum made use of the Proof of Work protocol (PoW), but recently, newer cryptocurrencies are beginning to adopt the Proof of Stake (PoS) protocol. This is because PoS doesn’t require specialized hardware as PoW does and it uses a relatively lower amount of electricity. It is much easier to get started with PoS because all you need is a significant number of coins to begin staking. You only need to acquire the minimum amount of coins and run a wallet capable of staking. After a specified period of time, you’ll start generating rewards that will be deposited into your wallet.

Masternodes, on the other hand, can provide better rewards than staking, but they require more resources and time. You’ll likely need to purchase a VPS to host the node and setting them up is not always straightforward because it might require some technical know-how.

It is pretty easy to get started with staking and it’s much easier to make sure you’ll generate a profit than with hardware mining.

Investing in cryptocurrency banks to earn interest

It is no longer new knowledge that there are cryptocurrency banks out there. Although they may not have physical locations like traditional banks, they still offer pretty much the same services a traditional bank would offer.

Cryptocurrency banks are relatively new establishments that will pay you a regular amount of interest for holding your assets with them. It is basically a virtual bank for virtual money. One of the advantages of having crypto banks as part of your diversification strategy is that it’s totally hands-off. The bank does almost everything for you, and then you simply receive your interest in your account.

For those who want to grow their crypto assets without having to deal with the stress of day to day trading on Exchanges, crypto banks are the best option. Crypto banking is one of the few ways to earn cryptocurrencies passively. It works pretty much the same way as HODLing, but you’ll get interested in it.

Trading cryptocurrencies on exchanges

The first thing that comes to mind when people talk about cryptocurrency investing is usually trading on Exchanges (although it is the last on my list). Many people do not have what it takes to trade cryptocurrencies on Exchanges. It is very easy to let sentiments get in the way and this is where you need an iron will to keep you from making costly errors like panic selling or even panic buying into an unwise investment.

Every crypto trader also needs to be aware of the troubles lurking in the trading market, like the many unscrupulous pump and dump groups looking to take your money through misrepresentation and deceit.

If you develop good trading skills and apply smart money growing strategies, you may find exchange trading can be interesting. The constant ups and downs of the cryptocurrency market provide many opportunity windows to make profit. One way to take advantage of the volatility of cryptocurrency is to trade on more than one exchange.

Your Asset is your responsibility

Above all, it is important to know that you are the sole custodian of your own funds when it comes to crypto investments this means you are responsible for the safety of your funds. You shouldn’t keep all your assets in one wallet to prevent theft and cyber hacks, and extra care should be made to carefully choose which exchanges and cryptocurrency platforms to trust with your money.

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Blockchain News

MoneyGram’s New Time Remittance Technology backed by Visa not Ripple

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A new service introduced by remittance giant (MoneyGram) which allows users to send and receive money in real-time has been credited to visa and not the work of its blockchain-based partner (Ripple) in an announcement by representatives of the company.

The recently launched Fastsend, a new service which allows clients to send money in real-time to a phone number through a mobile application or dedicated website. While responding to enquiries from news sources about the latest concept, it was revealed to much surprise that MoneyGram did not make use of the technology of Ripple to achieve the latest product.

Do we need blockchain for real-time settlements?

MoneyGram Chief Operating Officer, Kamila Chytil informed news sources that FastSend makes use of Visa’s Direct Original Credit Transaction to send funds to bank accounts making use of Debit card deposit which is clearly not blockchain-backed or related.

Without the need for DLT, the dedicated website and app make use of an open-source cloud-based microservices. Chytil further stated that although Ripple is not involved in the new product, the firm still makes use of Ripple’s blockchain in other fields of the company.

Also, Chytil made mention of MoneyGram’s continuous effort on how to utilize blockchain in areas where it could assist to solve data privacy and regulatory obligations via distributed ledger technology. In her remarks, she spoke highly of DLT technology and cryptocurrencies, stating that the firm believes blockchain to be the future of global cross border payments and transfer of money.

As MoneyGram continues to research on the multiple use cases in order to tap into Ripple’s tools while integrating with the recent version of Ripple’s service suit to introduce cash-out service to all network members.

It is worth noting that Ripple is gaining increased support and approval among financial institutions to provide them with its DLT services in Africa with the National Bank of Egypt joining its network, this has been seen as a welcome development as it would do well for the inward remittance within the region the Ripple Network.

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Finance

Nigeria Calls For an Extension of the Time Set for the Eco Currency Launch for West Africa

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Nigeria, the country with the largest economy in Africa calls for a delay in the progression of Eco Currency.

Nigeria on Monday has expressed her view on the issues of the progress made so far in the creation and official use of the Eco currency for the West  African region.

According to the Presidential Tweet on twitter;

“Nigeria’s position on the Eco is that the convergence criteria (between states) have not been met by the majority of countries” which will adopt this common currency”

“There, therefore, has to be an extension of time on the take-off of the single currency,”

Nigeria has its own currency, the Naira.

See Also; CryptoTVPlus partners with Kubitx to Spread Crypto Awareness using Local Languages.

The Eco single currency has been a controversial issue since the idea was initiated. It was after more than 25 meetings on the subject, that the 15 member countries of the Community of West African States (ECOWAS), finalized that it would be launched in 2020.

There is currently eight out of the 15 ECOWAS countries using the CFA franc, but were looking to cut financial ties from France, their former colonial power.

The height of the controversy followed after President Ouattara of Ivory Coast all of a sudden denounced CFA for the francophone countries for the Eco currency following Emmanuel Macron’s visit to the country.

Nigeria, a member of ECOWAS, and some other Anglophone West African countries denounced the agreement. This is because the monetary policies governing the issue of Eco currency doesn’t align with the requirements adopted in the region to set up the single currency.

Written By Ogbuowelu Anthony Uchechukwu

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Finance

Yahoo Finance Adds Cryptocurrency Market Data on its Website

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US based financial news firm, Yahoo Finance has partnered with Coinmarketcap to add cryptocurrency market data on its website amongst other financial reporting data.

The data which is supplied by the popular cryptocurrency market data aggregator Coinmarketcap now allow visitors on the website to track the prices of cryptocurrencies daily.

Currently available on the website are 118 cryptocurrencies ranked in the order of their market capitalization. The price data on the website are denomination in USD.

The website has a feature which it calls Heatmap View. It allows visitors to see the price actions on each crypto assets. A red signal shows the asset has dipped while a green signal reveals a gain in the asset.

Registered users can add any cryptocurrency to their portfolios.

Just like coinmarketcap reports, the Yahoo Finance website also reports detailed information on each cryptocurrency it has listed in its website.

The website reports on each website various market data such as current price, changes in percentage and amount, market capitalization, volume and circulating supply.

Yahoo finance also have individual pages for each cryptocurrency listed on the website. Yahoo Finance was quoted saying “We are thrilled about this partnership which comes timely as we continue to level up our game with the new liquidity-based metrics for ranking market-pairs and an improved pricing algorithm coming soon.”

Other than data from Coinmarketcap, Yahoo Finance also have two indices Crypto 200 (including Bitcoin) and Crypto 200 EX (i.e. excluding Bitcoin)

The data on the website incorporates pricing from over 200 exchanges, according to the Finance reporting organization, the indices provide exposure to the broader cryptocurrency market by including the cryptocurrencies that represent more than 90% of global market capitalization as of the index launch date.

Its daily newsletter and blog content will also be integrated into the news stream on finance site’s cryptocurrency screener landing page as well as the individual cryptocurrency pages.

The firm said in the future, it will plan to produce more educational video features, which it hopes will further add to the educational content on the website.

Image: Yahoo Finance

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Facebook to launch Facebook Pay to Provide Users With Secure and Convenient Payment Experience

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Is Facebook Pay an alternative to Libra?

Facebook has announced it will be launching the Facebook Pay service to provide people with a convenient, secure and consistent payment experience across its platform.

According to Facebook, people already use payments across its platform to shop, donate to causes and send money to each other. The Facebook pay will make these economic events easier while continuing to ensure user transaction information is secure and protected.

In order to use the service, users are to add their preferred payment method once and then use the service where it is available to make payments and purchases on the facebook’s platform apps. This will ensure users are not inconvenience as they wouldn’t be required to enter their payment information again.

The Facebook Pay will be available on Facebook and Messenger this week for US customers for fundraising, in-game payments, and event tickets, person-to-person payments on Messenger and purchases from select pages and businesses on Facebook marketplace.

According to Facebook, over time, the service will become available to more people and places including on its Instagram and WhatsApp platforms.

Security

Facebook iterates its desire to continue investment in security of its platform.

Facebook said “We designed Facebook Pay to securely store and encrypt your card and bank account numbers, perform anti-fraud monitoring on our systems to detect unauthorized activity and provide notifications for account activity”.

Facebook Pay allows users to add Pin or use their device biometrics for extra security when sending money or making payments. Facebook argues it will not receive or store users device biometric information based on its privacy policy.

To the Future

The Facebook Pay is part of our ongoing work to make commerce more convenient, Facebook said and this also will make it accessible and secure for people on its app.

And it will continue to develop Facebook Pay and look for ways to make it even more valuable for people on our apps.

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