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Top Six Tips When You Start Investing in Cryptocurrency

Team Bitcoin Daily

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The cryptocurrency market has been on fire this year and growing numbers of people are curious about how to start investing. It can be confusing if you don’t understand how it works. However, you can learn what you need to know and start out slowly. Whether you want to buy bitcoin or spread your investments between different cryptocurrencies, it is important to understand how it works. Continue reading to learn six tips when you start investing in cryptos.

1. Use a Crypto Wallet

When you buy crypto on an exchange, you can keep it there. However, crypto is mostly decentralized and uninsured; if someone hacks the exchange and takes your crypto, you won’t be able to recover it. You can use a digital crypto wallet or a hardware device to store your crypto investments. Once you buy Bitcoin or another crypto, send it to the wallet using its unique code.

Remember that if you lose your crypto wallet or you lose your passwords to access it, your crypto will be lost forever. Make sure that you keep it secure just as you would a wallet with paper money

2. Be Aware of Transaction Fees

When you buy, sell, or convert cryptocurrency, you will have transaction fees. The fee is usually a fraction of the amount of crypto you are using in the transaction, and it varies depending on the amount of congestion and the amount you are using. When bitcoin is moved, the transaction is added to the blockchain, where there is a ledger that keeps a record. These charges are a part of investing in crypto so you need to be prepared for them and factor them in.

3. You Will Pay Taxes on Your Gains

If you make money investing in cryptocurrency, you will have to pay taxes on your gains. You have to sell it for a profit to pay taxes and it is your responsibility to make sure that you report it. You need to know how much money you make or lose on your investments.

Trading cryptocurrency is still mostly unregulated, so most exchanges do not keep track of this information the way that banks or traditional brokerage firms do your traditional investments. Make sure that you report your gains to the CRA and keep good records so that you can calculate whether or not you owe income taxes at the end of the year.

4. Be Serious About Cyber Security

It is very important to treat your cryptocurrency accounts just as you would any sensitive financial information. Do not use passwords that are easy to figure out. You should make them unique and complex. If you have the option for two-factor authentication, you definitely want to enable it. If you use more than one exchange, make sure that you have different login information for each one. Throughout the year, change your password two or three times to make sure that they are impossible to figure out.

5. Be Aware That Cryptocurrency Is Not Insured

When you deposit money into a CDIC-insured Canadian bank, your money is safe if the bank fails. You never have to worry about what happens to the bank because you will get your money back. Crypto doesn’t work the same way. If the exchange or platform that you are using has a problem, such as being hacked or going under, you will lose anything that you have on the platform. This is why you should always move your crypto assets to your own personal digital or hardware wallet.

6. Start Out Slowly

When you watch different cryptos increase dramatically in one day, it can be tempting to invest a lot of your money in hopes of riding it up. However, you need to know that it can go back down as quickly as it went up. Crypto is still largely unregulated and quite volatile, and you should start off slowly.

You will want to diversify your holdings by choosing two or three different ones to start. Over time, you can add in other cryptos and increase how much you have invested. Take it slow while you are learning and never invest more than you can afford to lose. You can learn as you go and invest more when you have a better handle on the market.

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Sastanaqqam at WOW Summit & Art Basel Hong Kong: A Leap Towards the Future of Digital Art

Team Bitcoin Daily

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As the digital frontier continues to expand, Sastanaqqam stands at the forefront of innovation within the blockchain ecosystem. Its upcoming participation in the WOW Summit in Hong Kong on March 26-27 marks not only a return to the vibrant city but also a significant milestone in its journey. This event, renowned for gathering the brightest minds in technology, blockchain, and art, will serve as a pivotal platform for Sastanaqqam to showcase its remarkable progress and forge new partnerships that promise to redefine the digital art space.

Returning to Hong Kong for the second time, Sastanaqqam’s presence at the WOW Summit is a testament to its enduring commitment to growth and innovation. The past year has been a whirlwind of development and success for Sastanaqqam, with the ecosystem experiencing exponential growth, notably within its digital art marketplace, Artiziri, and its various other innovative projects. The WOW Summit presents an ideal opportunity to highlight these achievements and the significant strides made in enhancing its platform’s value and reach.

One of the most exciting developments for Sastanaqqam is its new strategic partnership with Muse, a leading provider of digital frame technology. This collaboration is a game-changer, offering an evolving all-in-one art platform that seamlessly integrates Sastanaqqam’s digital marketplace with high-quality display solutions. Muse’s cutting-edge technology ensures that digital artworks are presented in the best possible light, enhancing the viewing experience for collectors and art enthusiasts alike. This partnership not only enriches the ecosystem’s offerings but also underscores Sastanaqqam’s vision of bridging the gap between digital and physical art spaces.

The WOW Summit also provides Sastanaqqam with a unique opportunity to connect with the global art community. In conjunction with the summit, the team will visit Art Basel Hong Kong, a prestigious event that attracts artists, galleries, and collectors from around the world. This visit is strategic, aimed at driving new artists to onboard onto the Artiziri platform. As the platform has grown considerably over the last year, attracting fresh talent and diverse artworks is paramount to sustaining this momentum and enriching the ecosystem’s vibrancy.

Sastanaqqam’s journey to Hong Kong is more than just participation in a summit; it’s a mission to forge meaningful connections, inspire innovation, and showcase the immense potential of its blockchain ecosystem. The team’s efforts to engage with new artists at Art Basel Hong Kong, coupled with the exciting partnership with Muse, are poised to catapult Sastanaqqam into new realms of creativity and collaboration.

As we look towards the future, it’s clear that Sastanaqqam is not just participating in the digital art revolution—it’s leading it. With each strategic partnership and community engagement, the ecosystem is setting new benchmarks for what is possible in the blockchain space. The WOW Summit in Hong Kong is not just another event; it’s a glimpse into the future of digital art, and Sastanaqqam is at the helm, steering towards uncharted territories with innovation, passion, and an unwavering commitment to excellence.

About Sastanaqqam:

Founded in 2021, Sastanaqqam has emerged as a key player in blockchain and Web 3.0 technologies, integrating art, gaming, and decentralized finance (DeFi) to create a dynamic and innovative digital ecosystem. Sastanaqqam embarked on a mission to democratize access to Decentralized Finance (Defi) and create a bridge between traditional and digital art. Inspired by the transformative potential of blockchain technology, we set out to develop platforms that marry the power of DeFi with the creativity of the art world. Our vision includes a secure Wallet, an Exchange, and a unique Utility Token (BLC), all designed to facilitate seamless transactions and efficient management of digital assets.

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Why is Bitcoin Price Falling Down?

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Bitcoin price as recently experienced a significant downturn, briefly slumping below $63,000 after reaching a record high of $73,000 just last week.

This sharp decline marks a pivotal moment in the cryptocurrency’s performance, shedding more than $10,000 from its all-time high and signaling a potential shift in market dynamics.

Several factors contributed to the quick rise to $73,679, including the successful introduction of spot bitcoin exchange-traded funds (ETFs) in the U.S. and a surge in investor interest. However, the subsequent correction has raised questions about the sustainability of its rally and the underlying factors contributing to its volatility.

Several causes contributed to the downturn, including traders taking profits following Bitcoin’s significant 70% increase from the beginning of the year to its high.

This profit-taking has led to a spike in long liquidations of leveraged Bitcoin positions, with significant liquidations occurring across centralized exchanges.

The introduction of spot bitcoin ETFs, while initially contributing to the rally, has also played a role in the increased leverage and high-frequency volatility observed in the market.

As investors and analysts warn of more volatile price action in March, the recent pullback from Bitcoin’s long-term uptrend has become a focal point for market participants.

Moreover, the broader cryptocurrency market has felt the ripple effects of Bitcoin’s decline, with other major cryptocurrencies such as Ether and Solana experiencing notable losses.

The interconnectedness of the cryptocurrency market means that movements in Bitcoin often have a significant impact on altcoins and related stocks.

Understanding the elements driving Bitcoin’s price, such as supply and demand dynamics, regulatory changes, and investor attitude, becomes increasingly important when the market experiences volatility.

The recent downturn serves as a reminder of the inherent volatility and risks associated with investing in cryptocurrencies, prompting investors to exercise caution and closely monitor market trends.

Analyzing Bitcoin Recent Price Drop: Economic Pressures and Market Dynamics

Bitcoin’s value has experienced a notable decline, dropping to $63,500, marking its lowest point in the past two weeks. This 6% decrease on Tuesday is attributed to a combination of factors, including recent U.S. inflation data and significant outflows from the Grayscale ETF, which have contributed to a broader market correction.

Market Liquidations and ETF Outflows

The futures market has seen substantial liquidations, totaling $655.44 million, with Bitcoin and Ethereum positions being the most affected. According to Coinglass, “In the last 24 hours, 240,997 traders have been liquidated, with total liquidations amounting to $655.44 million. The largest single settlement order occurred on OKX – BTC-USDT-SWAP for $12.25 million.”

Bitcoin price

Grayscale ETF has faced one of its largest daily outflows in history, with 9,539 BTC withdrawn. Despite BlackRock’s acquisition of 6,703 bitcoins, the overall balance for the day was negative by 2,293 bitcoins. This outflow has not only increased selling pressure but also potentially alarmed other market participants. BitMex reported, “Bitcoin ETF outflow – March 18, 2024. GBTC outflow at $643 million,” highlighting the significant impact of these movements on the market.

image 63 Why is Bitcoin Price Falling Down?

Economic Factors Influencing Bitcoin Price

The U.S. economy’s struggle to achieve its 2% annual inflation target has raised concerns among investors. With expectations of an interest rate cut by the Federal Reserve not materializing, fears are growing that rates will remain between 5.25 and 5.5% for an extended period. This economic pressure has not only affected Bitcoin but also other assets like gold, which has seen a 2% decline over the week.

Investors are anxiously awaiting the next Fed meeting, scheduled for Wednesday, anticipating potential negative remarks from Jerome Powell and his team. Bitcoin’s significant drop, attributed to its well-known volatility, underscores the market’s sensitivity to economic indicators and central bank policies.

Scott Melker, expressing his concerns, stated, “Fundamentally, with ETF interest and the cycle increasing, I want to believe that we will go much, much higher. However, most of the key signs I would normally look for when not in FOMO are present,” highlighting the market’s current state of uncertainty.

Broader Cryptocurrency Market Impact

Following Bitcoin’s downturn, other cryptocurrencies have also suffered losses. Ethereum, despite its recent Dencun update, has lost around $800 over the week, trading at $3,200. Meme coins such as Dogwifhat (WIF) and Bonk (BONK) have experienced significant declines, alongside more established projects like Jupiter (JUP), Worldcoin (WLD), and Solana (SOL).

image 64 Why is Bitcoin Price Falling Down?

As the market navigates through these turbulent times, investors are closely monitoring Bitcoin’s support levels, the outcomes of the upcoming Fed meeting, and ETF flows. Despite the short-term challenges, the long-term uptrend remains a protective factor for those invested in the cryptocurrency space.

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Bitcoin Record-Breaking Surge almost hitting a new “all-time high”

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Bitcoin record-breaking surge and market dynamics highlight volatility and factors influencing price movements.
• Increased mainstream acceptance of Bitcoin signifies broader adoption and regulatory progress.
• Global market dynamics and prospects, including Ethereum upgrades and Bitcoin halving events, underscore complex factors driving the cryptocurrency market.
• Investors’ cautious optimism reflects balanced perspective on potential risks and rewards of Bitcoin and other cryptocurrencies.

Bitcoin record-breaking surge and market dynamics are influenced by various factors such as demand, investor sentiment, global economic conditions, regulatory developments, and technological advancements.

These factors contribute to the volatility and price fluctuations observed in the Bitcoin market. It is important to closely monitor these dynamics and consider them when making investment decisions.

Bitcoin Record-Breaking Surge & Monumental Rise

In a remarkable display of strength, Bitcoin, the pioneer cryptocurrency, has once again captured the financial world’s attention by breaking past the $70,000 threshold, setting a new all-time high. This milestone underscores the digital currency’s increasing acceptance and growing confidence among investors.

Amidst a volatile trading session, Bitcoin’s price peaked at $70,170, showcasing not only its potential for high returns but also the inherent market risks.

Bitcoin record-breaking surge and market dynamics are influenced by various factors such as demand, investor sentiment, global economic conditions, regulatory developments, and technological advancements.
Bitcoin Record-Breaking Surge almost hitting a new “all-time high” 4

Bitcoin’s journey to new heights is reflective of its burgeoning popularity and the broader acceptance of cryptocurrencies.

The digital asset’s 10% weekly gain coincides with the opening of the U.S. stock market, hinting at a possible correlation between Bitcoin’s performance and traditional financial markets.

This relationship underscores the evolving dynamics between digital and traditional assets, suggesting a growing integration of cryptocurrency within the wider financial ecosystem.

Despite its impressive ascent, Bitcoin’s path was not without turbulence. Following its peak, the cryptocurrency experienced a swift 10% drop, a movement that rippled across the crypto market, affecting other digital currencies and related stocks.

However, the market’s resilience was on full display as Bitcoin swiftly recouped most of its losses, highlighting the volatile yet tenacious nature of the cryptocurrency market. This volatility, as reflected by the Bitcoin historical volatility index reaching a yearly high, serves as a reminder of the risks and opportunities inherent in the crypto space.

Institutional Investors and Mainstream Acceptance

image 24 Bitcoin Record-Breaking Surge almost hitting a new "all-time high"

A pivotal factor in Bitcoin’s recent surge is the growing involvement of institutional investors, who, after initial skepticism, have begun to embrace Bitcoin as a viable long-term investment.

This shift is further evidenced by the approval of 11 spot Bitcoin ETFs by the U.S. Securities and Exchange Commission, a significant step towards mainstream acceptance.

These developments, coupled with the influx of billions into Bitcoin ETFs, mark a new era of institutional confidence and regulatory progress in the cryptocurrency domain.

Global Influences and Future Prospects

image 25 Bitcoin Record-Breaking Surge almost hitting a new "all-time high"
Bitcoin Record-Breaking Surge almost hitting a new “all-time high” 5

Bitcoin’s rally is not merely a domestic phenomenon but is influenced by global market dynamics, including the influx of investment into U.S. spot exchange-traded crypto products and the anticipation of global interest rate adjustments. Additionally, the crypto market is buoyed by the prospect of an Ethereum upgrade and the anticipated Bitcoin “halving” event, both of which could further bolster market sentiment.

Looking ahead, while the cryptocurrency market’s speculative nature warrants caution, the prevailing sentiment among investors is one of cautious optimism. Comparisons to the retail excitement of 2021 and the recognition of Bitcoin’s potential as a hedge against inflation suggest a bright, albeit uncertain, future for Bitcoin and the broader cryptocurrency market.

Bitcoin’s recent record-breaking performance is a testament to its growing influence and acceptance within the financial landscape. As the cryptocurrency continues to navigate through volatility and regulatory developments, investors are reminded of the importance of thorough research and risk management.

With its latest all-time high, Bitcoin not only celebrates a significant milestone but also paves the way for the next chapter in the evolution of digital finance.

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