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Cryptocurrency Investment Strategies

MNabilAli

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Cryptocurrency investment can be a high-risk, high-reward endeavor. While it’s possible to make significant profits from cryptocurrency investing, it’s also possible to lose a lot of money if you’re not careful. That’s why it’s important to have a solid investment strategy in place before you start buying and selling cryptocurrencies.

Dollar-Cost Averaging Trading Strategy for Bitcoin

Dollar-cost averaging is a popular investment strategy that involves buying a fixed dollar amount of a particular asset at regular intervals, regardless of the price. This approach can be used to invest in a variety of assets, including bitcoin and other cryptocurrencies.

One of the main benefits of dollar-cost averaging is that it helps to reduce the impact of volatility on an investment. When the price of an asset is constantly fluctuating, it can be difficult to determine the best time to buy. By making a series of smaller purchases over time, rather than one larger purchase, an investor can potentially average out the price they pay for an asset.

For example, an investor wants to buy $1,000 worth of bitcoin. Rather than buying all $1,000 worth of bitcoin at once, they could choose to buy $100 worth of bitcoin every week for 10 weeks. If the price of bitcoin increases during this time, the investor will end up paying more for their later purchases. However, if the price of bitcoin decreases, the investor will pay less for their later purchases. This can help to balance out the overall cost of the investment.

Other Strategies To Consider When investing in Crypto Space

Your Risk Tolerance: How much risk are you willing to take on? If you’re a more conservative investor, you may want to focus on stable, established cryptocurrencies like Bitcoin or Ethereum, rather than more speculative altcoins and tokens.

Your Investment Horizon: How long do you plan on holding onto your cryptocurrency investments? If you’re planning on holding onto your investments for the long term, you may want to focus on cryptocurrencies with strong fundamentals, such as a large and active user base or a strong development team.

Diversify Your Portfolio: Don’t put all your eggs in one basket – make sure to spread your investments across a variety of different cryptocurrencies to reduce your risk. This could mean investing in a mix of large-cap and small-cap cryptocurrencies, as well as different types of cryptocurrencies, such as utility tokens, security tokens, and stablecoins.

Security Considerations: Also make sure to keep your valuable Bitcoin and Cryptocurrency safe from hackers and online intruders. It is always recommended to follow the best security practices and store the majority of your cryptocurrency in offline cold wallets to prevent hackers from gaining access.

Follow the News: Finally, make sure to keep an eye on the cryptocurrency market and stay up to date on the latest news and developments. This will help you make informed investment decisions and avoid potential pitfalls.

Overall, developing a solid cryptocurrency investment strategy is key to maximizing your chances of success in this volatile market. By considering your risk tolerance, investment horizon, and portfolio diversification, you can increase your chances of making profitable investments and minimizing your risk.


Disclaimer: The information provided in this article is solely the author’s opinion and not investment advice – it is provided for educational purposes only. By using this, you agree that the information does not constitute any investment or financial instructions. Do conduct your own research and reach out to financial advisors before making any investment decisions.

Daily cryptocurrency trader, miner, technology enthusiast and a full time IT and security consultant. If you have any questions or comments please feel free to email him at [email protected]

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The Founder of My Big Coin Gets 8 Years in Prison For Fraud

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Randall Crater, the creator of a failed cryptocurrency project was given a sentence of over 8 years in jail on for scamming investors and customers out of millions of dollars through the promotion of a virtual currency called My Big Coin using false information and misleading statements.

According to Reuters, Boston’s U.S. District Judge Denise Casper decided that the perpetrator, Crater, must serve a prison sentence exceeding 8 years for operating a cryptocurrency fraud called “My Big Coin” between 2014 and 2017.

During this time, Crater swindled $7.5 million from investors by convincing them to put money into a questionable digital asset supposedly supported by gold.

Cater falsely claimed that the “My Big Coin” project was affiliated with financial services giant Mastercard.

photo: twitter @MBCEXCHANGE

Federal prosecutors called for a 13-year sentence for Casper, in order to send a warning to other cryptocurrency fraudsters. They also disclosed that Cater used the money he took from investors to buy luxury items for himself, including vehicles, art, jewelry, and rare coins.

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N.J. Man Allegedly Paid 40 BTC to Have a 14-year-old Killed

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John Michael Musbach, a 31-year-old man from Haddonfield, NJ, has been charged with hiring a hitman to kill a 14-year-old and paying 40 Bitcoin (equivalent to $20,000 at the time) for the crime. Musbach has plead guilty to using the internet for the murder in a federal court in Camden. He faces a maximum of 10 years in prison.

Musbach exchanged explicit photos and videos with the 13-year-old victim from New York in 2015, which was discovered by the victim’s parents and reported to the police. He was later arrested in 2016 on child pornography charges and had a search warrant conducted on his residence in Galloway, NJ.

According to the department of justice, Musbach wanted the victim killed to prevent them from testifying against him in the ongoing criminal case.

The charge of use of interstate commerce facilities in the commission of murder-for-hire is punishable by a maximum potential penalty of 10 years in prison and a fine of the greater of $250,000

the release said

Between May 7-20, 2016, John Michael Musbach communicated with the administrator of a murder-for-hire website on the dark web net that claimed to offer contract killings for payment in cryptocurrency. Musbach asked if a 14-year-old was a suitable target and, after being told it was possible, paid 40 Bitcoin (equivalent to $20,000 at the time) for the hit. He repeatedly checked on the status of the hit and even asked for an additional $5,000 to secure it. When asked for more money, Musbach tried to cancel the hit and request a refund, only to find out that the website was a scam and the administrator threatened to reveal his information to law enforcement.

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Man Charged in $110 Million Cryptocurrency Scheme

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Avraham Eisenberg, 27, from Puerto is accused of committing a $110 million cryptocurrency fraud according to court documents. He allegedly manipulated prices of perpetual futures contracts on Mango Markets, which allowed him to steal cryptocurrency from the exchange and its customers. He was arrested in San Juan, Puerto Rico on December 26, 2022 and is currently in detention, per a criminal complaint.

According to court documents. He allegedly manipulated prices of perpetual futures contracts on Mango Markets, which allowed him to steal cryptocurrency from the exchange and its customers.

Exploiting decentralized finance platforms is the new frontier of old school financial crimes in which criminals abuse emerging technologies for their own personal gain. With this prosecution, the Criminal Division is sending the message that no matter the mechanism used to commit market manipulation and fraud, we will work to hold those responsible to account.

said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division

Mango Markets is a decentralized cryptocurrency exchange that offers various services to investors, including purchasing, borrowing and trading cryptocurrencies and cryptocurrency-based financial products. It is run by the Mango Decentralized Autonomous Organization (Mango DAO), which operates with its own cryptocurrency token, MNGO. Holding MNGO tokens grants investors the right to vote on modifications to the Mango Markets platform and decisions regarding the governance of the Mango DAO.

As alleged, Avraham Eisenberg manipulated the Mango Markets cryptocurrency exchange in order to obtain over $100 million in illicit profits for himself, Through his scheme, Eisenberg left others holding the bag. Market manipulation is illegal in all of its forms, and this office is committed to prosecuting such schemes wherever they occur – including the cryptocurrency markets

said U.S. Attorney Damian Williams for the Southern District of New York

The FBI is leading an investigation into the matter, with support from Homeland Security Investigations and IRS Criminal Investigation. Meanwhile, the Commodity Futures Trading Commission and Securities and Exchange Commission have launched separate civil proceedings.

The case is being prosecuted by the National Cryptocurrency Enforcement Team’s Trial Attorney Jessica Peck, along with Assistant U.S. Attorneys Thomas Burnett and Noah Solowiejczyk of the Southern District of New York.

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