5 best practices retail investors should follow while investing in cryptocurrencies

5 best practices retail investors should follow while investing in cryptocurrencies

With the growing awareness around the digital asset, the retail interest in the new asset class of cryptocurrencies is at an all-time high.Get latest Personal Finance online at cnbctv18.com The U.S. government operates at a slower pace than the private sector when it comes to innovation, but this isn’t necessarily a bad thing, said Securities and Exchange Commission (SEC) member Hester Peirce. Speaking Monday at CoinDesk’s Bitcoin for Advisors event with financial adviser Steve Sanduski, the second-term commissioner shed light on how the securities regulator is approaching financial technology innovation, including cryptocurrencies.  “Regulators are slow and there’s a reason we’re slow. We need to have process in place so that we make sure when we’re changing rules people have notice that we’re thinking about changing a rule and SPX 500 leaves Bitcoin in the dust following COVID-19 vaccine advancements Pfizer and Biontech announced a potential vaccine candidate against COVID-19

Authored by Ashish Singhal

With the growing awareness around the digital asset, the retail interest in the new asset class of cryptocurrencies is at an all-time high. For the uninitiated, demand for cryptocurrencies is high across the globe, predominantly amongst retail investors, and now the Indian retail investors are joining the bandwagon too.

Additionally, due to Covid has caused turmoil in the traditional markets, which can be another reason for Indians’ growing appetite for cryptocurrency investments. But investing in a completely new asset class can be tricky business, so one must do thorough research before diving right in.

Here are some tips that a first time retail investor should keep in mind while investing in cryptocurrencies:

Choose From the Winners

So, thoroughly understanding the top market performers is in one’s best interest.

Diversify but Don’t Over Commit

Diversification is the holy grail of any investment, and it stands true for cryptocurrency investment too. Thus, creating a diversified portfolio with different types of cryptocurrencies is something one that investors should keep in mind.

Moreover, one should never invest more than what one can afford to lose in any asset. Over-committing oneself to one cryptocurrency or in the asset class, in general, is something to be avoided to cut through the downside risks associated.

Research is the Key

There are thousands of cryptocurrencies available in the crypto market, and not all are equal. Therefore, doing thorough research about the cryptocurrency one intends to purchase just as one does for companies before buying stocks/bonds is a good practice to follow in the process.

And while researching one must take a good look at the background of founders and developers, what problem they are trying to solve, how much coins or tokens are pre-mined, and what is the circulating supply with coin inflation schedule.

Keep Your Cryptocurrencies Safe

Cryptocurrencies are intangible digital assets that must be stored in secure wallets. Plus, since these are digital assets, all the best practices of the online world are to be followed. That’s why wisely choosing the cryptocurrency trading app is another thing one needs to give serious thought to, and security along with ease of use should be high priority criteria of selection.

Have An Entry and Exit Plan

The same rule applies to crypto investing too because many investors who invest have no entry or exit plan, which can be detrimental to their financial planning.

Decide about the plan first, as to when you will enter and exit a particular cryptocurrency? What your expected returns are? Are you over-committed? Etc. And then get going about your business of investing in it.

Source: www.cnbctv18.com

Author: CNBCTV18.com Contributor @CNBCTV18Live


SEC's Peirce: Regulations Are Slow Because They Need to Be

SEC’s Peirce: Regulations Are Slow Because They Need to Be

The U.S. government operates at a slower pace than the private sector when it comes to innovation, but this isn’t necessarily a bad thing, said Securities and Exchange Commission (SEC) member Hester Peirce.

“Regulators are slow and there’s a reason we’re slow. We need to have [a] process in place so that we make sure when we’re changing rules people have notice that we’re thinking about changing a rule and they can comment,” she said. 

Ideally, regulations and guidance would not limit which technologies can be used, allowing innovators to build a wide range of compliant tools and platforms. 

That being said, Peirce noted that certain regulations are very dated, and said she would like to see the agency move faster in certain areas, pointing to cryptocurrencies as one example.

“There are circumstances where we have a framework at the SEC that was built in the 1930s and 1940s and added on over time,” she said. “Certainly now that we’re seeing what’s happening in the crypto space, for example, there are areas we are going to have to make adjustments and I do think we should move faster … I’m impatient there.”

Allowing token offerings to operate in a regulatory safe harbor like the one Peirce has proposed and creating retail access to bitcoin through regulated products like an exchange-traded fund (ETF) are two areas where the SEC could move more quickly, she said. 

Asked how much influence the SEC’s five commissioners have on such decisions, she noted that usually the agency’s staff approves or disapproves products like ETFs. The commissioners themselves do not normally get involved, but “in the case of the bitcoin [ETFs] we’ve been able to weigh in,” she said.

Other areas, like approving broker-dealers to provide digital asset services in the U.S., are more complicated due to the fact that there are multiple regulatory authorities overseeing these companies, she said.

Asked about the future direction of the SEC, given the projection that former Vice President Joe Biden will be the next president of the United States, Peirce said regulators are likely to continue working on crypto.

“I think those things are tied together in the sense that certainly the president is the one who’s going to nominate the chairman; but even within, you’ve seen some really great steps taken by a regulator like the Office of the Comptroller of the Currency where the OCC sat down and said, ‘Hey we’re not really great at handling innovation’ so [it] set up an office of innovation,” she said.

She also pointed to the fact that there are congresspeople on both sides of the political aisle who are bullish on crypto and said support for the sector is bipartisan.

Source: onecryptonews.com

Author: By OneCryptoNews


Cryptocurrencies Price Prediction: Bitcoin, Uniswap & District0x – American Wrap 9 November

Cryptocurrencies Price Prediction: Bitcoin, Uniswap & District0x – American Wrap 9 November

Pfizer and Biontech announced a potential vaccine candidate against COVID-19 that seems to have a 90% effectiveness. The submission for Emergency Use Authorization (EUA) to the US Food and Drug Administration (FDA) will happen right after the required safety milestone is achieved. Dr. Albert Bourla, Pfizer Chairman and CEO, stated:

“Today is a great day for science and humanity. The first set of results from our Phase 3 COVID-19 vaccine trial provides the initial evidence of our vaccine’s ability to prevent COVID-19.”

Uniswap is down 11% in the past 24 hours, currently trading at $2.61, right above the lower trendline of the symmetrical triangle formed on the hourly chart. A breakout or breakdown will likely represent a 20% move in either direction.

On November 5, Coinbase announced the listing of District0x, and its price jumped 150% within 24 hours. Instead of slowing down, DNT’s price continued surging from a low of $0.0086 to a current peak at $0.0837, but now it seems to be preparing for a potential pullback.

Source: www.forexcrunch.com

Author: FX Street

Website


5 best practices retail investors should follow while investing in cryptocurrencies


Leave a Comment