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How to Decide How Much to Allocate Towards BTC

Published

3 years ago

July 31, 2021

How much should I put in bitcoin? This is a question that many people ask these days. They want to obtain exposure to bitcoin but want to do so in the way that makes the most sense for them and their financial lives.

It’s no wonder why people want to invest in bitcoin. It’s on the rise.

In recent years, crypto-monetary activities have acquired considerable traction and provoked quite a bit of enthusiasm and excitement, particularly among investors. In the first week of 2021, bitcoin’s price reached a new high record of $42,000. Right after that, though, bitcoin’s value plunged by more than 20% while others still declined. But many believe that this industry is here for the long term and are still investing in several cryptocurrencies, diversifying their portfolios, and sticking around for a while.

Now, it is in these times when individuals must learn the fundamentals of investing.

Making decisions based on excitement and commotion is highly hazardous. It is vital to maintain a more holistic perspective when making your bitcoin investments. Remember that discipline and the appropriate knowledge are necessary to create valuable gains.

Here is what you must know about allocating capital toward bitcoin.

Buying and Investing in Bitcoin

Bitcoin’s value was increased from $3,237 in December 2018, the world’s first and most popular cryptocurrency. Bitcoin, unlike other cryptocurrencies, is emerging as a clear store of value despite its far greater volatility than many tried-and-true assets such as equities, bonds, and mutual funds.

Purchasing bitcoin or other cryptocurrencies may be a fascinating way to discover more powerful returns with a new type of investment. But, like cigarettes, it should be labeled with caution: “This item may be detrimental to the health of your money and invest wisely.”

But the idea here is not to frighten you. Instead, it is to assist you in determining how to allocate to BTC. Here are clever strategies to invest in bitcoin that will lead you in the right direction.

Is Bitcoin Worth Investing In?

buy bitcoin mobile

Essentially no investment is “good” or “bad.” It all depends on your risk tolerance, investing plan, and financial goals. Bitcoin is a volatile investment since it is still a fairly new asset.

It can provide significant gains but one must understand how to approach it in the right fashion. Indeed, there is a profit possibility.

You should evaluate your personal goals and establish what you want to do in your investing activities thoroughly before considering bitcoin as an investment. Would you like passive revenue to grow? Will you be an investor full-time? Do you seek to save for a type of pension? Responding to these questions will help you determine how much you should allocate to bitcoin.

Pros of Allocating to Bitcoin

The significant advantage of a bitcoin investment is that you may make enormous profits, potentially up to 200 percent or more. The core point here is that bitcoin is supposed to reach the status of gold. That means that bitcoin has quite a bit of potential ahead of it. It is known as a store of value and that means that bitcoin is likely to have staying power, durability, and longevity.

The positives of investing in bitcoin are that you obtain exposure to the future, to digital currency, and capturing energy in a new monetary asset.

Cons of Allocating Towards Bitcoin

Bitcoin’s extreme unpredictability makes it a risky commodity, and if you don’t take caution, you may lose money.

The danger of pumping and dumping strategies in bitcoin and other forms of cryptocurrency is considerable. The key point over here is to make sure that you are looking at allocating capital toward bitcoin in a more holistic way. This means that you will ensure to have more strategic ways of looking at it. As such, you can protect your downside and maximize your upside.

Innovative Ways to Allocate Capital to Bitcoin

bitcoin and rand

One can see that there are many methods to, directly and indirectly, invest in bitcoin. You may invest in businesses that use bitcoin or take part in bitcoin mining. Moreover, some ETFs contain shares of firms that work with bitcoin and blockchain technology. Of course, you can invest in bitcoin directly by purchasing through different facilitators.

The following are intelligent strategies to study before BTC becomes a part of your portfolio.

1. Invest what you have the courage to risk

Financial risk-taking might make some individuals uncomfortable, while others take full advantage and take a chance. It is worth thinking carefully before investing in cryptography if pushing boundaries gets you uneasy as it is pretty unstable. However, if you’re a risk-taker, you can ensure to purchase satoshis, fractions of a bitcoin, or even a few whole bitcoin. It all depends on your net worth and what you can afford to lose.

You need to invest the money you can lose. The main objective of funding, whether traditional or digital, is to add value to and not lose your present money.

2. Lead a strong portfolio of cryptocurrencies

Investing in more than bitcoin is part of a suitable crypto portfolio. This technique reduces losses and maximizes profit. Yes, it’s complicated but better than just investing in one currency. Cryptocurrencies are very volatile in price, and the right ones have different value points and elements to offer to your portfolio.

By investing in several cryptocurrencies and diversifying your portfolio, you will enable you to cover any risks.

You will not be exposed to a concentrated single investment by doing so. It is better to win and lose some than to lose it all. Diversification is one of the best and most clever ways to diversify and stabilize your profits.

3. Do not buy into the hype

As with any other traditional investment, it will be essential to ignore the hype and filter the noise from the bitcoin chamber. When it comes to investment in bitcoin, your choices should not depend on what others say. A wise Bitcoin investor never makes hype- and noise-based judgments since they are very hazardous. Just depending on what the mob says about Bitcoin isn’t sensible. Remember to think about your investment from your own perspective.

The initial price may start dropping, resulting in an appalling waste. Patience and the appropriate knowledge are necessary to create valuable gains.

Instead, intelligent ways of investing in bitcoin would be to research the market extensively, use information obtained to take measured risks, and contact professionals for advice if need be. It is vital that people who have enough understanding of trade and investment strategies only seek guidance. That way, you may develop your techniques and filter undesirable hypothesized information successfully.

4. Instead of a significant start, begin modestly

Given its brief but extremely unpredictable history, it is typically advisable to maintain a relatively restricted initial investment of bitcoin when starting out. Bitcoin purchases are somehow much like the purchase of other types of investment. You must constantly be aware that its prices are rising and falling relative to other assets.

Remember that the most advanced investors started by dipping their toes into the market before allocating more capital to bitcoin over time. Despite the exaggeration and the projections, keep your discipline by not adding much more capital than you can afford to lose.

5. Work with entities that Trustworthy

Many digital exchanges arise and move on. It is of the utmost importance to pick a platform with periodic security assessments and effective security procedures and protocols.

Based on the physical absence of bitcoins, experienced bitcoin investors keep them in different types of digital wallets. One can either store it on digital or hardware wallets. A hardware wallet can be an offline portable device that secures the private key required for your bitcoin holdings to be transferred from one place to another. If you are looking for a bitcoin wallet, you can find many that are free and available.

6. Trade Bitcoin on Short-Term Volatility

Asset volatility is one of the most popular reasons why many people invest in bitcoin.

If they do not feel like sticking around for the long-term, they can trade the volatility regularly and make gains that way.

Indeed, bitcoin is synonymous with dramatic value fluctuations. Just looking at a one-year chart, you can see how unpredictable Bitcoin is, which is suitable for short-term traders. Not surprisingly, investors will ride it up and down, sell at the heights, and purchase at the bottoms. This is undoubtedly the most difficult of the techniques presented and puts the most significant risk on investors; yet, it might make the returns. It might bring in more returns if one is more active. If one is active in the markets, know how to read charts and loves to speculate, then this can be a valuable way to grow one’s assets.

The Simple Takeaway and Crypto Portfolio Allocation 2021

Bitcoin is a growing asset class that brings about a more trust-less world. Thanks to the blockchain and other innovations, one can see that it can have staying power. Further, it continues to show that it is a store of value as it has increased in value over the course of ten or more years.

But remember that bitcoin is a highly volatile asset prone to significant and rapid changes in value, offering a chance to achieve substantial profits while representing a considerable danger.

It is up to you to figure out how much capital you should allocate to bitcoin. Many experts note investing from one to ten percent of your total net worth into this emerging asset class. If you are able to take it slow and steady and approach bitcoin in a more reasonable way, you can find that you can increase your portfolio value while keeping your risk at a more bearable level.

You should look at your goals, your investment horizon, and your risk tolerance to invest the right amount into bitcoin.

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Problems Nigerians Face With Bitcoin and Cryptocurrencies

Published

2 years ago

May 31, 2022

Guest Contributor

Nigeria is ranked as Africa’s largest country with the most crypto traders and ranks third globally. The country accounts for the largest volume of cryptocurrency transactions outside the United States. In the last six months, it has been recorded that about 35% of the Nigerian population has traded cryptocurrency.

As encouraging as these numbers may be, Nigeria, as an environment, has been very unfriendly to cryptocurrency and its related aspects. Last year, the Central Bank of Nigeria ordered all commercial banks and lenders to stop transactions or operations in cryptocurrencies, citing a significant threat to the country’s financial system.

The ban on cryptocurrency in Nigeria was big negativity to the Nigerian youth, especially knowing that over 50 million of the population are involved in cryptocurrency. During this time, a lot of crypto trading platforms were shut down in the country. Also, many bank accounts suspected of dealing with cryptocurrency were locked, including their funds.

Even today (as of May 27, 2022), any bank transaction with a description or notes of “crypto,” “bitcoin,” “P2P,” or any crypto-related words will be locked away alongside the account(s).

The unfriendly treatment of cryptocurrency in the country is alarming. In the plight of making a positive solution, the community led to adopting systems where crypto traders could trade cryptocurrency without involving the bank.

How Breet Solves Some of the Issues Nigerians Face in Cryptocurrency

Breet is an OTC crypto exchange platform that allows users and businesses who simply want to receive crypto and get a flat equivalent of their coin to convert their crypto to cash money immediately.

Breet App

With Breet’s over-the-counter system, you are saved from the hassle of boring explanations of what and how crypto works and tedious illustrations of cryptocurrency market charts. Breet enables users to securely convert and withdraw their crypto coin to cash money in less than five(5) minutes without the use of peer-to-peer trading or any third-party agent.

Breet is a revolutionary new way to convert and withdraw your crypto coin without the need for peer-to-peer trading or any third-party agent. With just one click, you can have cash money in hand within five minutes.

With Breet, you can sell your cryptocurrency in less than 5 minutes. This is an incredible feature on its own, meaning businesses can now accept cryptocurrencies as payment options without having their customers wait for hours to confirm payment.

Breet is also completely free. There are no hidden charges, no withdrawal fees, no processing fees and no receiving fees. There are zero charges with Breet. Breet’s free usage solves the issue of high and inconsistent charges for many Nigerian crypto traders.

Breet

There is no limitation to how much you can receive or withdraw on Breet. You don’t have to have about 10,000 Naira worth of cryptocurrency before you can withdraw. You can even withdraw as low as 100 Naira with Breet Exchange.

Breet is simple, free and certified. There is not much sugar coating to tell before believing that Breet is, arguably, the best crypto trading platform in Nigeria currently. The incredible reviews on the Breet app give perfect evidence.

What more do you need? If not, a crypto exchange that makes crypto transactions easy and makes people happy. You should become a Breet user by downloading Breet mobile app available on all Android and iPhone devices.

Remember being a crypto trader in Nigeria can be challenging. This is why it is important for you to learn more about cryptocurrency and the latest news by doing your own research.

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Ethereum Timeline: Shift to Proof of Stake

Published

3 years ago

April 27, 2022

Guest Contributor

The much-anticipated transition of the Ethereum network from proof-of-work (PoW) to proof-of-stake (PoS) consensus is finally taking place. The adaptation of PoS has always been the plan and a vital part of scaling Ethereum by future upgrades. However, abruptly shifting to PoS can pose significant technical and community challenges that are not as simple as using PoW to achieve network consensus. Having said that, what exactly are PoS and PoW?

Proof of Work

Proof-of-work (PoW) is a consensus algorithm that allows for the secure, decentralised verification of transactions on a blockchain. In a PoW system, miners are responsible for verifying and committing transactions to the blockchain. During the verification process, miners compete against each other to solve complex cryptographic puzzles. The first miner to solve the puzzle is rewarded with cryptocurrency, and the transaction is added to the blockchain.

Reasons To Shift From Proof of Work

The Ethereum ecosystem has evolved at an astounding rate in the last year. This growth was primarily due to a significant emergence and explosion of NFTs and Decentralised Finance (DeFi) initiatives. While the change-over was imminent, some factors to be considered for the same are:

The PoW consensus protocol requires users to utilise significant computational power to validate transactions and add new blocks to the network.
Users who devote their computational resources to the shared ledger are miners.
These miners are rewarded with Ether tokens in exchange for the computing power they have supplied to the network.
With PoW consensus, Ethereum takes up to 113 terawatt-hours of electricity in a year. According to Digiconomist, it is more than the total electricity consumption of the Netherlands per year.
The current Ethereum transaction with PoW consensus takes up energy equivalent to the consumption of one week of energy of an average US household.

With so many downsides to its cap, PoW has many advantages, which is one of the main reasons it has been a reliable consensus for so long. The PoW consensus has been robust and secure all these years. But the consensus can be utilised by a cryptocurrency with a massive valuation and relatively simple use case, such as the bitcoin. With the amount of energy and power involved, it becomes difficult for individuals to meddle with a high valuation asset.

Proof of Stake

The consensus protocol Proof-of-stake (PoS) has been introduced to address the issue of over-mining. Proof of stake (PoS) is critical to understand because it could eventually replace the proof of work (PoW) consensus mechanism that is currently used by most cryptocurrencies.

“PoS is a way to achieve decentralised consensus without using energy-intensive mining. It is an alternative to the more common proof of work algorithm. With PoS, a cryptocurrency’s blockchain is secured by its token holders who are required to lock up their tokens as stake and not by miners equipped with powerful hardware. It’s an energy-efficient, cost-effective and therefore, a popular choice for crypto giants like Ethereum,” states Dev Sharma, CEO of Blockwiz, a crypto marketing agency.

In contrast to PoW, in which the individual who completes the mathematical proof first is rewarded with new coins, with PoS, no new coins are created.

Benefits of Proof of Stake Consensus

Proof-of-stake introduces several enhancements over the PoS mechanism:

Improved resource proficiency – you don’t need as many energy mining blocks.
Minimal entry barriers, lower hardware requirements – Even if you don’t possess top-tier hardware, you still get ample opportunities to participate in the creation of blocks.
More excellent resistance to centralization – PoS would imminently facilitate the generation of more nodes.
Staking facilitates the operation of a node. It does not necessitate significant expenditure on equipment purchases or resources, and if you lack the ETH token to stake, you cannot participate in staking pools.
Staking consensus enables reliable sharding. Shards enable Ethereum to generate new blocks simultaneously, leading to enhanced throughput of transactions.
In a PoW mechanism, sharding the chain would reduce the amount of energy required to modify a particular network section.

In a Nutshell

Proof of stake (PoS) is a type of algorithm used by cryptocurrencies to determine who gets to create new blocks on the blockchain. PoS works by requiring users to lock up some of their currency in a smart contract called a stake. In return, they are given the right to validate blocks on the network and earn rewards.

The advantage of PoS is that it doesn’t require the massive energy consumption that PoW does. This non-dependency on massive energy utilisation makes it more environmentally friendly. It reduces the risk of centralisation since few users would be able to control the majority of the currency. Therefore, it’s no wonder that Ethereum is making the much-anticipated switch.

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Amber Group March Recap 2022: Here’s What Happened

Published

3 years ago

April 14, 2022

Guest Contributor

Amber Group News Named one of CB Insights’ 2022 Blockchain 50, an annual ranking of the most promising blockchain and crypto companies in the world.

Announced the appointment of Ehsan Haque as the General Counsel for Europe, Middle East, and Africa (EMEA) region.

CEO Michael Wu was selected as a recipient of the “Top 100 CEOs in Innovation Award 2022” by Word Biz Magazine.

Product Development and Partnerships

Amber Group Partnerships

Participated in Mina Foundation’s token sale, EthSign’s seed round, and Zecrey protocol’s angel round.

In the News

Michael Wu CEO Awards

World Biz Magazine: Michael Wu, CEO of Amber Group – interview WBM Top 100 Innovation CEO.

CNBC: For crypto to be adopted globally, we will have to comply with regulators: Crypto-trading platform.

Bloomberg: Bankers Who Stay in Hong Kong Are Rewarded With a Pay Bonanza.

Economist: EthSign raises $12 million in stable coin led by Sequoia Capital India, Mirana Ventures.

Forkast News: From crisis currency to consumer adoption: What next for crypto?

CoinDesk: Mina foundation raises $92M to accelerate adoption of Zero-Knowledge Proofs.

Cointelegraph: If the glass slipper doesn’t fit, smash it: Unraveling the myth of gender equality in crypto.

AMBCrypto: Amber Group strengthens management team with Ehsan Haque as EMEA General Counsel.

CoinCu: Zecrey protocol has raised $4M in an angel fundraising round.

Chain Debrief: Is the user experience in DeFi bad? Opportunities, challenges and how to see growth in DeFi.

Medium: Reproducing the $APE airdrop flash loan arbitrage/exploit.

Medium: Non-fungible trends.

Events and Media Appearances

Michael Wu

CEO Michael Wu joined Forkast News to discuss crypto’s consumer adoption and what’s next for crypto.

CEO Michael Wu joined CNBC Street Signs Asia to share how Amber Group seeks a balance between regulation and crypto development.

CEO Michael Wu gave an interview with Economist Impact at Technology for Change Week on how to stay ahead of the curve in the fintech space.

Managing Partner Annabelle Huang joined Economist Impact’s Asia Trade Week to discuss the future of crypto as payment in Asia.

Managing Partner Annabelle Huang joined Avalanche Summit to discuss the opportunities and challenges in DeFi.

Managing Partner Annabelle Huang joined Goldman Sach’s panel discussion on “Digital assets – Investing in the future” to celebrate International Women’s Day.

Annabelle Huang

Managing Partner Annabelle Huang gave a guest lecture on DeFi and Web3 for the International Finance class at Singapore Management University.

Managing Partner Annabelle Huang joined the DIG FIN VOX podcast to talk about Amber Group’s move to Singapore and into retail.

CSO Dimitrios Kavvathas joined Blockchain Africa Conference 2022 to discuss institutional investment in crypto.

CSO Dimitrios Kavvathas joined FinTech Festival India at a panel discussion on “De-Fi – A better solution for peer-to-peer lending”.

CSO Dimitrios Kavvathas joined the World Blockchain Summit in Dubai at a panel discussion on “Fostering the global crypto ecosystem”.

Dimitrios Kavvathas

Europe Managing Director Sophia Shluger delivered a keynote speech on digital wealth at Blockchain Africa Conference 2022.

Europe Managing Director Sophia Shluger joined the CryptoCompare Summit in London to discuss the building blocks of the new digital economy.

Europe Managing Director Sophia Shluger joined the FundFocus Europe 2022 conference to discuss the foundation for the widespread institutional adoption of cryptocurrency.

Sophia Shluger Rear

Latin America Managing Director Nicole Pabello joined the Ethereum Rio conference to discuss the LATAM Ecosystem in the world.

Nicole Pabello

Institutional Sales Director Justin d’Anethan joined EmergentX’s Annual Digital Asset Summit to discuss the institutionalizing of the digital asset industry.

Justin d'Anethan