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;
- Proper allocation of your assets
- Taking advantage of Proof of Stake protocol and Master nodes
- Investing in cryptocurrency banks to earn interest
- 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.
Facebook to launch Facebook Pay to Provide Users With Secure and Convenient Payment Experience
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.
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”.
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.
Bankera Announces the Release Its Crypto Lending Solution, the Bankera Loan
Bankera has announced the release Bankera Loan, its crypto lending solution. The Bankera Loan according to Bankera is geared to providing flexible and secure crypto-backed loans to cryptocurrency holders globally.
The Loans are to start with a minimum of at least 100 EUR and to as high as 1 million EUR.
Bankera Loans act as an option for cryptocurrency owners who desire access to financing, but do not want to liquidate their assets. The solution offers cryptocurrency holders the ability to access funds by using their cryptocurrencies holdings as collateral while retaining ownership of their crypto assets.
According to Bankera, the solution aims to democratize access to core banking services for all cryptocurrency market participants by giving them facility better suited for either individual or enterprise needs.
Co-founder of Bankera Vytautas Karalevicius expatiating on the solution said “We see a big interest from the community in smaller crypto-backed loans. This market has been heavily underserved, and typical loan minimums in the current market are often too high”.
Continuing, Vytautas said “Bankera Loans solution offers our clients the possibility to take a loan as low as 100 EUR so that all clients can obtain the financing they need”.
Enterprise clients can also use their crypto asses to get quick facilities for leveraging positions, for expansions or other needs.
Taking a loan is simple, Bankera revealed. It can be achieved by a sign up which is followed after by a deposit of crypto assets to Bankera Loan wallet. This deposit are required and used for as collateral.
Once this is done, Bankera said a customer can then personalize the facility by selecting amount, duration, withdrawal and collateral currencies. Once approval is achieved, the customer/clients receive the facility to his/her Bankera Loans account.
Though the more assets or currencies will be added to the platform in the future, the Banker Loans platform currently supports just over half a dozen currencies such as the EURO, Banker (BNK), Tether (USDT), Bitcoin (BTC), Ether (ETH), NEM (XEM) and privacy coin Dash (DASH).
Bankera aims to revolutionize banking by taking advantage of what blockchain technology has to offer while still focusing on scale by becoming a one-stop store for all financial services, in the same way traditional brick and mortar banks are now, while using technology to reduce the number of counterparties, thus lowering the cost of banking for the end consumer.
25-Year-old pleads Guilty to Running Unlicensed Crypto Exchange.
Kunal Kalra, a 25-year-old from West wood Los Angeles has been said to have pleaded guilty to federal charges of having exchanged over $25million in cash and cryptocurrencies.
Kunal, also known as “Kumar,” “shecklemayne” and “coinman,” was indicted on Friday, August 23 for allegedly trading cash and cryptocurrencies including drug dealers partially via his Bitcoin ATM kiosk.
The exchange was a front for other illegal activities
Kalra was said to have agreed to engagements in other illicit activities such asd distributionof methamphetamine, operating an unlicensed money transmitting virtual platform, laundering money and failing to maintain an effective anti-money laundering instrument.
According to an announcement made by the U.S Department of Justice last Friday, Kalra had said that he has agreed to plead guilty to the offence of converting Bitcoin for cash for criminals, drug dealers who acquired cryptocurrencies from trading narcotics on the dark web, as well as a number of other persons involved in various illicit activities. He had also confessed that he used platforms such as Localbitcoin and a company known as Paxful.
It was alleged that Kalra had been running this cryptocurrency exchange from May 2015 through October 2017. The justice department also went ahead bro say that without the implementation of an anti-money laundering program, Kalra facilities these kinds of transactions with a commission knowing fully well that the proceeds came from drug trafficking.
As at the time of this report the law enforcement agency had already seized about $889,000 in liquid cash from Kalra, about 54.3 Bitcoin and other cryptocurrencies, worth more than half-million dollars.
The announcement also said that the maximum sentence that Kalra stood a chance of facing was life imprisonment.
Legendary Bitcoin Investor Refers to Bitcoin as a Psycho Currency
Mark Mobious had referred to the worlds largest cryptocurrency as a “psycho currency”.
Although, it’s proponents could be seen to be in full support of it, there are those who still express a lot of scepticism towards its, saying that it wired, evil and a complete waste of time. For cryptocurrency enthusiasts, it is usually not a good day when legendary businessmen and investors lash out at the prospects of Bitcoin and act like it possesses no potential. In recent times, we see persons such as Mark Mobious, being a trader who founded Mobius Capital Partners, joining the ranks of Warren Buffet.
How Mobious feels about Bitcoin
According to a report from a recent interview, Mobius said that bitcoin and its crypto cousins as “psycho currencies,” claiming that spikes occur only when people believe in them. He expressed his confidence in the fact that the Bitcoin will ultimately cause other hardcore assets such as gold in a few months from now.
” I call them psycho currencies because it’s a matter of faith whether you believe in bitcoin or any of the other cybercurrencies… I think with the rise of [bitcoin], there’s going to be a demand for real, hard assets, and that includes gold.” He said.
It is noteworthy to state that it is quite difficult to take Mobious seriously as he switches sides at the drop of a hat, he had to express his scepticism about Bitcoin and other cryptocurrencies claiming that they were just pure speculations not worthy of any attention. Earlier this year he also said that digital currencies were a hallmark of the future, and could be an around for a very long time.
Gold Is Where the Money Is
“Gold’s long-term prospect is up, up and up, and the reason why I say that is money supply is up, up and up.”
He said in his comments that investors should get involved in gold regardless of the price, and pointed to the moves of mainstream banks as well, i.e. the European Central Bank, which he said serve as proof that institutions are thinking the same way.
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