How to diversify your crypto portfolio & why it is important

Bitcoin and altcoins like Ethereum, Solana, and Polkadot are among the top-rated portfolio items in investors’ portfolios. It is also worth noting that virtual digital assets were among the top-performing assets in 2021. As more traders and investors enter the cryptocurrency market to take advantage of the growth of these crypto tokens, this crypto space has the potential for mass development and more spacious long-term adoption.

Six best fundamentals of cryptocurrency investing strategy

Now that we have taken a walk down the basics of cryptocurrency investing and how it works, it is very consequential to decide on a fundamental strategy before diving into the new digital asset! 

Choose the right mix of storage wallets:- to keep your tokens 100 percent secure, split your tokens between hot wallets and cold wallets.

Liquidate your assets:- As volatile as the cryptocurrency markets are, cryptocurrency experts often mention keeping tabs on the cryptocurrency market to analyze the market trends and liquidate your assets accordingly.

Track Volatility:- As plenty, because the risky marketplace makes methods for liquidating your profits, it additionally acts as a pathway for extra researched buying! The up and down withinside the crypto marketplace is a healthful signal and the ‘dips’ are frequently called the right time to collect high-stop tokens.

Make sure to check if you can afford to lose your investment:- Exploiting the volatility of the cryptocurrency market is smart, but affordability is also crucial for any trader. Not wanting to bear the potential total loss of your investment means you cannot afford the risk of investing the amount you are considering.

Diversification:- While your interest is in investing in the new asset class, it’s important to ensure you buy small chunks of a few tokens to avoid throwing your entire budget into one asset.

Dollar-cost averaging:- With this method, you put small portions of your total budget into tokens of your choice, rather than spending your entire budget at once.

How cryptocurrency investing works

If you are new to crypto, the above section will be even easier to understand once you take note of how cryptocurrency investing works. We have set together a list of tips for you!

  • Select a cryptocurrency investing platform of your choice
  • Create an account
  • Transfer fiat funds to your cryptocurrency exchange wallet
  • Select the crypto assets that you want to add to your portfolio
  • Complete your transaction
  • Store your crypto in the digital wallet

Why should you diversify your crypto portfolio?

The main goal of diversifying one’s crypto portfolio remains the same as why one should diversify the portfolio as a whole. While it’s all but impossible to draw a preliminary conclusion about the cryptocurrency market, making a wise decision to invest in multiple cryptocurrencies and build a diversified cryptocurrency portfolio has you poised for impact.

The importance of cryptocurrency diversification is evident as it reduces the risk of permanent losses in a scenario where one of the assets within the cryptocurrency portfolio may collapse but the other assets may hold their value or reach an all-time high or gain. . In general, the different assets together make up the portfolio better.

DIVERSIFYING CRYPTO PORTFOLIO WITHIN DIFFERENT BLOCKCHAIN PROTOCOLS

Diversifying a portfolio is basically a big meal with all its protein. While diversification is mentioned, it is important to remember that the total amount you are going to bet should be the amount at which you are comfortable losing. Cryptocurrency portfolio diversification is an act of investing your money in multiple cryptocurrency projects, rather than putting all budgeted amounts into a single asset.

Best six Crypto Passive Income Generators for 2022

Earning interest on your idle crypto investments is a great way to make your money work for you. These are six of the best ways to earn passive income from cryptocurrencies in 2022.

Passive income is money generated by businesses in which an individual is not actively involved. In most cases, all you have to do is invest your money or digital investment in a specific crypto investment strategy or platform and watch it generate profits. In some cases,  earnings are fixed and predictable. For others, multiple factors may come into play that is beyond your control.

Ways to earn passive crypto income

Proof-of-stake (PoS) staking

Proof of stake is a type of Blockchain consensus tool designed to allow distributed network participants to agree on joining new data into the Blockchain. Note that Blockchains enable open, decentralized networks in which participants contribute to the governance and processes involved in validating transactions. This is crucial as such a community-centric approach eliminates the need for central authorities such as banks. In most cases, Blockchains randomly select participants, elevate them to validator status and reward them for their efforts.

Interest-bearing digital assets accounts

Holders can use interest-bearing crypto accounts to earn fixed interest on their idle digital assets. Think of it as putting money into a bank account that earns interest. The only difference is that this benefit only supports cryptocurrency deposits. Instead of holding digital assets in your wallets, you can deposit them into these accounts and receive income based on predefined interest rates on a daily, weekly, monthly, or yearly basis.

Lending

The lending service has become one of the most popular crypto services in both the centralized and decentralized segments of the crypto industry. If you are an investor, you can lend your digital assets to borrowers and earn interest. These are the four main strategies you can use:

Peer-to-peer lending: The platforms that offer such services enable systems that allow users to set their terms and determine the amount they want to lend and the interest they want to earn on the loans. The platform connects lenders with borrowers, much like P2P (peer-to-peer) trading platforms connect buyers and sellers.

Centralized lending: In this method, you rely solely on the lending infrastructure of third groups. Here, the interest cost is fixed, and so are the lock-up periods. Like P2P lending, you have to transfer your cryptocurrency to the lending platform to begin earning interest.

Decentralized or Defi lending: This strategy allows utilizing to execute lending services directly on the Blockchain. Unlike the P2P and centralized lending techniques, there are no intermediaries involved in Defi lending. 

Margin lending: Finally, you could lend your crypto assets to traders interested in using the borrowed funds to trade. These traders build their trading positions with borrowed money and repay the loans with interest.

Cloud mining

In contrast to the proof-of-stake mechanism discussed above, some Blockchains, including Bitcoin(BTC), opt for a more computationally intensive approach, where users must prove the legitimacy of their claim to become validators (more commonly called miners) by competing against each other, to solve highly complex math puzzles. This method is called crypto mining. 

Dividend-earning tokens

Certain tokens suggest holders a fraction of the revenue of the company that issued them. All you require to do is hold the token, and you are automatically eligible to receive a certain percentage of the company’s earnings. The number of tokens you own determines the share of the earnings you would receive.

Yield farming

Yield farming is another decentralized or Defi method to generate passive cryptocurrency income. This is made possible by the dynamic operation of decentralized exchanges, which are basically trading platforms where users rely on a mixture of smart contracts (self-executing, programmable computer contracts) and investors to deliver the necessary liquidity to execute trades to obtain. Instead, they trade against funds deposited by investors known as liquidity providers in unique smart contracts called liquidity pools. The liquidity providers, in turn,  receive a prorated amount of trading fees from the pool.

Crypto Investing Strategy How to Set Smart Crypto Investment Goals

Crypto Investing Strategy How to Set Smart Crypto Investment Goals

Investing is a consequential life decision and truly a long venture. It essentially means laying out your investment in the market to work and develop returns. Sounds interesting? Well, regular investing is a great path to follow through with your financial plans. While you may already have different investments available, crypto-assets currently have been garnering all the rage. They are unique and exciting, with experts indicating profitable returns. As they increase skyward, now is absolutely the best time to build your crypto portfolio!

HOW TO SET ‘SMART’ Crypto Investment GOALS

Specific – As with any other asset, it is important to do research when investing in cryptocurrency. Please indicate whether you intend to make a short-term or long-term crypto investment. If you want to build a diversified and enriched crypto portfolio, experts recommend the long-term approach with regular investment. For immediate financial goals, the short-term route is probably more rewarding. Accurately assess your risk-reward potential to increase Crypto investment returns. Research and regular review of holdings are a great way to generate exceptional value.

Measurable – Although you have decided to investing in cryptocurrency, you may be at a loss as to how much to invest. Don’t stress! Let us help you find the best course of action in the crypto market that is prone to wild swings. The crypto space is speculative and you need to understand the potential risk. As with any volatile market, you should only invest what you can afford to lose. Set aside a percentage based on the total amount you have available to invest to convert Into crypto investment.

Actionable – As we continue to emphasize, do your research when investing in cryptocurrency. The class of crypto assets is constantly evolving, which is why studying the available resources is very important. Thankfully, the crypto space continues to be awash with informative details from time to time. Take action by constantly doing your checks and research. Get involved in exclusive crypto communities as they will provide you with the right information. Evaluate various elements such as the purpose of the coin,  the makers of the and the white paper. The white paper is your sacramental document in exploring crypto as it informs you of all the details of the assets. The key is to stay on top of your research game when setting your Crypto Investing Strategy and goals.

Realistic – Professional crypto investors rely heavily on realistic indicators when deciding on an asset. This involves performing technical analysis using mathematical indicators. The process helps a lot in predicting future trends. Use powerful tools like the candlestick chart. The chart displays details relevant to the data pointers at that point in time. Similarly, other analysis tools offer excellent insights with high-level details on weather and price patterns. Realistic cryptoanalysis is a very important aspect that investors consider before setting  Crypto Investing Strategy and goals.
Time-based –Time plays a crucial role in determining investment returns. Experts recommend maintaining a constant output for investment.

TRON (TRX) Soars 10%, BTC Still Stuck in the Same Range

Tron is the most notable winner among large-cap alternatives, posting a double-digit price gain. Bitcoin is near 37054 Euro

After another price drop to levels below €35133, Bitcoin went on the offensive and jumped to almost €37032. Most of the altcoin space is looking unusually quiet, with Tron among a few impressive gainers after a 10% price surge.

Bitcoin Eyes €37K

After last week’s failed adventure above €37982, in which BTC twice shot above that level but was violently rejected, the cryptocurrency has remained well below this coveted line.

Furthermore, the bears had almost complete control of the market and did not allow BTC to initiate a surge. Quite the opposite, they pushed the asset south and it fell below € 36082 on a few occasions.

The last came 24 hours ago when Bitcoin fell to an intraday low of €35608. However, BTC responded well to this price drop and started to appreciate in value fairly quickly.

In a matter of hours, it surged over €949and approached €37032. At the time of writing, it’s near that level, meaning its market cap has grown to €702 billion.

.

 

Goldman Sachs Offers Its First Bitcoin(BTC)-Backed Loan

Wall Street banking giant Goldman Sachs has announced its first-ever lending facility that has been backed by Bitcoin(BTC).

The move is a significant step for the asset bank as Wall Street continues to embrace digital investments. According to a spokesperson for the bank, the confirmed lending facility loaned cash collateralized by Bitcoin(BTC) held by the borrower.

Big Bank Warming To Crypto

The move is another sign that major banks are embracing cryptocurrencies and expanding their services to clients investing in digital assets. Goldman already has a crypto assets team and traded its first over-the-counter (OTC) Bitcoin options in March, becoming the first major U.S. bank to do so, the report added. Earlier this month, Goldman announced that it plans to add Ethereum OTC options to this offering. Analysts at the bank have called Ethereum’s upcoming “combination” and proof-of-stake upgrade optimistic for demand for the asset.

Goldman Sachs Foray Into Crypto

The Wall Street giant was far from optimistic about the cryptocurrency industry until a year ago. He went from a digital investment trading platform to stopping them years later and attacking BTC in the meantime. In a specific case from May 2020, the bank said Bitcoin is not an asset class. A few months later, however, Goldman began to change its tune, hiring a crypto research team, issuing multiple bullish reports, forecasting a $100,000 price  for BTC,  participating in

funding rounds, and, perhaps most notably, showcasing a Bitcoin ETF.

Bitcoin (BTC) Eyes € 37K, BAYC’s ApeCoin Soars 8% to New ATH

ApeCoin continues to roll on with another notable daily gain and a fresh all-time high above €19.

After charting a new six-week low beneath €36097, Bitcoin (BTC) reacted well and added almost €1899 in 24 hours. A few altcoins have also regained some ground following the latest correction, and ApeCoin stands out once more. BAYC’s native asset marked a new all-time high above €19.

Bitcoin Eyes €37K

The past several days were quite volatile for the primary crypto. It all started on April 25 when it found itself trading at just over € 36097, but the bulls stepped up and moved it north.

As a result, Bitcoin (BTC) skyrocketed by almost  € 2849 in hours, reclaimed € 37997, and even came close to € 38947. As the bulls were preparing for another run-up, the landscape changed.

Instead of heading further north, Bitcoin(BTC) started to lose value somewhat rapidly and lost all of its recent improvements.  Furthermore, this time, it fell below  € 36097 for the first time since mid-March.

After marking this multi-week low, Bitcoin (BTC) bounced off and jumped above €37047. As of now, it sits close even to  €37997  but has not questioned that level yet.

ApeCoin Sees New ATH

The altcoins went through a similar rollercoaster in the past few days, but most are slightly in the green today.

Ethereum(ETH), for instance, experienced a drop from € 2944 to  € 2659 in a matter of days. As of now, the second-largest cryptocurrency trades above € 2754 after a minor daily gain.

European Cryptocurrencies Users Prefer Decentralized Services, Bank of Spain Says

A recent analysis by the Central Bank of Spain shows that DEXs and unbacked crypto are very popular in the European cryptocurrencies scene.

The report explains that Europeans prefer decentralized services and unsecured crypto assets like Bitcoin (BTC) and Ethereum (ETH). In addition, the Central Bank of Spain noted that the volume of cryptocurrency transactions in the European region has been growing rapidly in recent years, reaching almost 79 million euros, surpassing that of the United States.

Unbacked Cryptocurrencies and Decentralized Services Are Hot Among Europeans

According to the report, Europeans have a more hobby in the usage of unbacked 

cryptocurrencies, with transactions in BTC and ETH accounting for about 60% of all transactions made over the past year. Backed cryptocurrencies accounted for 25%, with a basic Interest in altcoins aside from ETH accomplishing approximately 15%.

On the other hand, the ECB reported that 64% of Spaniards prefer to utilize decentralized services (which do not require an intermediary) to carry out their transactions. In comparison, in the rest of Europe, the average use of these services is 53%.

Which Are The Most Crypto-friendly Countries in Europe?

According to the report, France ranks first in Europe in terms of transaction volume, followed by Germany, the Netherlands, and Spain in second, third, and fourth place. These results are to be expected. Another report from online investment news and education platform Invezz, France is the “best nation for Bitcoin(BTC) trading.”

Additionally, re-elected French President  Emmanuel Macron is one of the few Probitcoin Presidents in Europe. During an interview for a local media outlet,

talked about creating a European metaverse where cryptocurrencies would be regulated without affecting or slowing down their development.

Bitcoin up, Dogecoin biggest gainer

Bitcoin’s price is currently 37837.92 Euro, with a dominance of 41.35 percent. This was a 0.12 percent gain over the day

Most cryptocurrencies traded in the green early on April 26 as the global crypto market cap rose 3.12 percent over the last day to €17, trillion. The total crypto market volume over the last 24 hours advanced 41.63 percent to € 91, billion.

The total volume in Defi stood at €10, billion 11.06 percent of the total crypto market 24-hour volume. The volume of all stable coins hovered around € 76, billion, which is 83.60 percent of the total crypto market’s 24-hour volume.

Bitcoin’s price stood at 37847.54 Euro, with a dominance of 41.35 percent. This was a 0.12 percent increase over the last day, as per data.

In international news, the Bank of Canada Chief has said that the Canadian dollar will remain at the center of the country’s financial system, Reuters reported. This was in response to questions about a Conservative leadership candidate’s pledge to make the country the Blockchain capital of the world.

Dogecoin 

The altcoins suffered just as badly as BTC yesterday, but the landscape today is predominantly more bullish.

Ethereum found itself trading at €2 Billion, after several days of consecutive price dumps. Now, though, a 7% increase has pushed the second-largest cryptocurrency to just above € 2808.45.

Dogecoin is the best performer here, with a massive 33% surge. This came amid the confirmation that Elon Musk had indeed purchased Twitter, and given his favorable approach towards the first-ever meme coin, the price surge is not that big of a surprise.

Overall, the crypto market cap is up by over € 87 billion in a day and sits close to €17 trillion.

Crypto Markets Lost €74B as Bitcoin Dumped to 40-Day Lows

The cryptocurrencies market cap has slumped below 16, trillion as Bitcoin(BTC), and almost all altcoins registered new price drops.

After failing to reclaim 35733.09 Euro, Bitcoin(BTC) took another hit and dumped once more to its most down price point in over a month. The alternative coins are also in bad condition, with Ethereum(ETH) sliding to 2618.15 Euro, Solana breaking below 93.04 Euro, and many other examples.

Bitcoin Dumps to 35K

It’s secure to say that the past several days didn’t go all that well for the primary cryptocurrency. It all started on April 21 when the asset tried its hand at taking down €40008 but failed in its tracks.

The subsequent rejection, propelled by the bears, pushed it south hard, and Bitcoin (BTC) found itself dipping to 35733 Euro hours later. However, that was not all as the adverse price growth continued.

As informed over the weekend, Bitcoin(BTC) slipped below 35733 Euro for the second time in a week. It tried to retrieve above that level but was rejected once more.

ALTCOINS IN DEEP RED

The Altcoins went through a similar modification late last week before calming during the weekend. Today, though, the condition is quite dire, with red dominating almost all charts.

Ethereum(ETH) lost the coveted 2791 Euro line several days ago and has been unable to reclaim it ever since. A 5% decrease on a daily scale has pushed the largest altcoin to around 2605 Euro as of now.

Will Bitcoin community switch to POS instead of it’s current POW mechanism?

Previously unseen records detailing the EU’s conversations around banning Bitcoin(BTC) have come to light following a freedom of details request.

European Union (EU) officials were concerned about banning Bitcoin trading during a debate on a suggestion to ban Proof of Work mining according to records obtained through a freedom of information request. 

According to a report, published by German digital culture organization Netzpolitik, officials from the EU went as far as proposing that an all-out ban on trading Bitcoin should be enforced in order to restrain its overall energy consumption.

The most worrying statements from the cryptocurrencies community’s perspective came from a record that documented the minutes from an EU meeting with Sweden’s financial manager and an environmental protection agency in which officials advised that regulators pressure the Bitcoin (BTC)community to switch to a Proof of Stake (PoS) instrument, instead of its current energy-intensive Proof of Work (PoW) mechanism.

This report comes as Bitcoin’s energy use continues to draw attention from environmental associations and regulators. Bitcoin mining currently uses around 139 terawatt-hours (TWh) of electricity annually, the entire United Kingdom consumed only an estimated 265 TWh in 2021. In late March, Ripple co-founder Chris Larsen teamed up with Greenpeace to pressure Bitcoin to switch its consensus mechanism to PoS, much like Ethereum intends to do later this year. The EU Economic and Monetary Affairs Committee recently voted against legislation calling for a ban on proof-of-work mining. However, these documents offer a unique insight into the efforts some EU officials are willing to make to crack down on mining-related energy use.

BTC Touched €39k, ETH Recorded 10-Day High

Bitcoin(BTC) erased all losses from this Monday’s crash and even spiked to a 10-day increase above 39054 Euro. Ethereum (ETH) followed suit with a similar local peak, but on a daily scale, most of the cryptocurrencies market has been composed. Monero is among the few outstanding gainers.

Bitcoin Tapped €39k

Following the relatively quiet weekend, in which Bitcoin(BTC) stood primarily around 37766

Euro without any strong moves in Either direction, the landscape for the investment changed on Monday.

As reported, Bitcoin (BTC) began to lose value rapidly, broke below the 37766 Euro barrier, and abandoned to a monthly high of around 38019  Euro. However, this is where the bulls stepped up and didn’t authorize any further declines.

Just the opposite, Bitcoin(BTC) began to regain value and found itself above the coveted 36719 Euro line hours later. Moreover, it continued clambering 

.and spiked above 38637 Euro yesterday.

In the last 24 hours, the cryptocurrency marked another minor milestone by breaking the January 2021 ATH of 38555 Euro for the first time since April 11. It is currently just below that level and its market cap has approached the 800 Euro billion mark.

ETH Saw 10-Day High Too

The alternative coins also went through the same volatile beginning of the week, with notable cost dumps on Monday and recovery sessions in the next few days.

Ethereum, for instance, went below 2762 Euro for the first time in weeks on Monday. However, it fast bounced off, reclaimed 2853 Euro, and even jumped to nearly 3037 Euro yesterday, charting its most increased price point since April 11. On a daily scale, most of the alt space seems relatively quiet. 

Whales Bought the Dip as Bitcoin (BTC) Reclaims 37.06 Euro: Analyst

As Bitcoin(BTC) slipped to a monthly low at 36129.60 Euro after a few days of consolidating above the 37056.00 Euro mark, there was a growing bearish sentiment about its quick price action. When the bears came out to push Bitcoin(BTC) south, dipping into the 37K – 40K area, some believed it an excellent chance to accumulate.

High Volume of BTC Spot Exchange Outflow

An analyst claim that as the Bitcoin(BTC) sell-off moved on, noticeable importance was seen out of spot exchanges recently. Whales may have purchased out a large sum of Bitcoin, He implied, because this size of outflow can only be created possible via “checking Top 10 Bitcoin(BTC) outflow for spot exchanges.

He saw the cost range of Bitcoin(BTC) between 37K ~ 40K as a critical accumulation phase that has been ongoing since Mar 2022 and urged investors to hold or purchase the dips if they could. Previously, in the wake of scenarios where the outflow volume spiked, as a considerable quantity of Bitcoin(BTC) was being dismissed from exchanges, upward cost action shortly reversed the market’s short-term bearish sentiment.

Something similar happened now as  Bitcoin(BTC) recouped all losses and even challenged 37982.40 Euro.

Additionally, He stated that as long as Bitcoin trades below the 200MA support line since Q4  2020, a sufficient amount of “smart money” would accumulate in the largest cryptocurrency by market cap. As The chart shows, BTC has dipped into the “low zone” and buying interest has also increased accordingly.

Uncertainties Ahead of BTC

Bitcoin’s bearish sentiment was reflected in the broader crypto market, with Ethereum also falling below  2779.20 Euro and major altcoins entering the Red Sea.