crypto market

Top 5 Bitcoin Investors

The Bitcoin investors are a crucial part of this market, because they are experienced in this field, but also invest their own money in making the blockchain network more safe and stable. These people also invest in cryptocurrencies in a way that they deposit fiat money funds and get crypto coins in equal value. They are helping the network to develop and attract more potential investors, miners, and traders.

Bitcoin investing also includes:

– Buying and selling cryptocurrencies

– Making the whole network safe and stable

– Helping the beginners to learn more about Bitcoins

– Investing in crypto servers and cloud services

– Funding the development of the network and currency

– Helping the developers establish safe and trusted exchanging platforms like bitcointrader.site

– Making the digital wallets safer

These people also are holding meetings and crypto events, sharing their knowledge with those who are interested in mine, and earn with Bitcoins. They always follow what is new and try to bring that information to everyone who is included in the investing process.

What do you need to become a Bitcoin investor?

Source:pinterest.ca

Your knowledge, interest, and enthusiasm are enough at the beginning. No one wants to invest money in something that is not worth it. Before you invest even a cent in the blockchain network, you need to perform deep research on every aspect.

Investors can directly influence rates and values. You will also need to choose your mentor from the list of the most popular and influential Bitcoin investors, so you can learn from them and see what had they done for the currency. Inexperienced investors and miners are those who are trying to make a quick profit, but you must understand that you need to have deep knowledge in this field to reach that goal. It’s possible to earn cash from Bitcoins only if you follow the rules of the market.

How Bitcoin took the leading role in the crypto market?

No one can give an exact answer to this question, but maybe the secret of its success is hiding behind the massive promotion and the fact that Bitcoin is the first digital currency that conquered the world. People reacted emotionally and enthusiastically to it, wanting to grab more before they realized it’s not that simple. Many of the initial investors already gave up on this idea, but there are a lot of people who are still willing to invest in Bitcoin’s development and helping it to keep the role it has.

Here are some of the top Bitcoin investors of all the time:

  1. Barry Silbert

Source:bitcoinexchangeguide.com

He is the founder of Digital Currency Group. His goal is to help with the development of the global financial system, by supporting the Bitcoin and altcoins. He already invested in more than 70 cryptocurrency-related businesses. His company is also an owner of Genesis and Grayscale, which are focused on investing and crypto trading. Silbert also owns the Bitcoin Investment Trust fund, which is responsible for tracking the changes in Bitcoin’s price.

  1. Blythe Masters

Source:crainsnewyork.com

She is one of the most recognizable names in the crypto market. In the past, she was executive at JPMorgan Chase and CEO at Digital Asset Holdings. She is trying to find appropriate ways to implement the blockchain technology to Wall Street. After she opened her Digital Asset Holdings, JPMorgan Chase became their biggest client. Together they are testing how to make the crypto transactions quick and safe.

  1. Dan Morehead

Source:bitcoinexchangeguide.com

He is the founder and owner of the company named Pantera Capital. His company is the first to invest just in cryptocurrencies, including, of course, the Bitcoin. Pantera’s crypto fund is one of the biggest in the world. Morehead also invested in 43 cryptocurrency companies and funds, helping them develop and establish a strong trading base.

  1. Michael Novogratz

Source:bitcoinexchangeguide.com

He is a billionaire who invested almost 30% of his money in cryptocurrencies. Novogratz is a crypto enthusiast too. He started investing in cryptocurrencies back in 2015 and he already gave more than $150 million of his personal savings. He developed a crypto fund, expecting the other companies to help him invest in the Bitcoin. He is also known by his expectations back in 2018 when he was expecting that Bitcoin will be worth more than $40,000 per one coin.

  1. Satoshi Nakamoto

Source:youtube

We can’t complete this list without mentioning the creator of Bitcoin, who is known as Satoshi Nakamoto, but no one knows his real identity. It’s estimated that he owns around 1.1 million Bitcoins. People believe that he is not using his crypto savings for anything because if he does that, the price will drop immediately. Knowing that he is the creator of this widely accepted cryptocurrency, we can be sure that he invested a lot of his time and money to develop something that is this worth, but controversial at the same time.

Of course, there are a lot more names that deserve to be on lists like this, including Tyler and Cameron Winklevoss, Chris Larsen, Roger Ver, Charlie Shrem, Tim Draper, Dave Carlson, and Tony Gallippi. A lot more investors are also dedicated to the other cryptocurrencies.

Why invest in this cryptocurrency?

Source:hackernoon.com

There are a lot of reasons to choose Bitcoin as your starting point in the crypto market. Just like the gold for real money, Bitcoin is a safe-haven for all the cryptocurrencies. If it goes down, every other currency is going down too.

But, at the same time, it has a leading role in the market. Bitcoins have pretty high rates compared to the other currencies, and that is why people are choosing to invest and trade with it. If you own some pile of Bitcoins, but you don’t like the current rate, you can always store them in your crypto wallet, and wait for the better times and higher exchange rates.

Many people, companies, and whole countries are starting to clearly see the possible benefits of accepting the Bitcoins as a regular payment method. Even though a lot of people find it controversial, it’s a fact that a lot of them are at least curious about how does the Bitcoin works.

The 5 Biggest Trends in Cryptocurrency for 2020

Most important about the trades in the market of cryptocurrency are speculations. The position on the market and the value of some cryptocurrency is determined by interest and speculations about it. Today, the crypto market has a lot of ups and downs, especially because there are lots of pyramid schemes that are affecting the market and potential buyers to be more careful when they decide to buy some cryptocurrency. However, trustful cryptocurrencies have a strong back-up in blockchain technology, which prevents a possible scam.

The year 2020 will be important for this kind of market, mostly because a lot of companies are considering if they will use this kind of monetary system, but everyone has to be sure about the consistency of values of some popular cryptocurrencies like Bitcoin, Ethereum and more. In this article, we are going to present to you the best five trends about the cryptocurrencies that we expect to happen in 2020.

Libra

Source:france24.com

During 2019, the Facebook company has introduced us with their plan to get on the crypto market with its currency, with the name Libra. It is going to be available in the summer of 2020 when they finish everything about the regulations. This new coin will have a back-up from some big companies like Vodafone, Uber, and other companies that are interested, such as eBay, PayPal, MasterCard, and more.

Libra has a big potential because there are a lot of people interested in this new cryptocurrency, only in the United States there will be around 170 million users. The biggest potential lies in the fact that there are millions of Facebook users, that maybe never seen or heard about the cryptocurrencies, will now use Libra to pay for some services like a phone bill, or drive with Uber.

Consolidation of the Market

There was a fall in value for most of the cryptocurrencies in 2019, but it is estimated that there will be more than 2000 new types of crypto in 2020. However, only a small amount of them has a trade that is bigger than 100,000 dollars per day, and most of these coins have a very small amount, a lot smaller than the value of one cent.

The value of most crypto coins remained still in 2019, and in 2020, it is estimated that more companies will get into a trade of this currency. Also, with the bigger interest of big companies about investing in the crypto market, it is expected that there will be a bigger consistency of most popular coins on the market, with less turbulence in values.

The Bitcoin Halving

Source:zerocrypted.com

There will be an important event about the Bitcoin in May of 2020 when they will reduce the rewards that people get from mining this crypto. The value will be reduced from 12.5 BTC to 6.25 BTC. This already happened twice, because Bitcoin increased its value rapidly from 10 dollars to more than 10,000 dollars in 10 years.

However, the people who were mining this cryptocurrency continued because there is still a great chance for big earnings, mostly because of its big value, that in one moment was near 20,000 dollars. Also, a lot of people are investing in this coin because everyone is expecting it to be money in the future. Also, you can check bitcoineras.com for more info about the value and trends about the Bitcoin.

Also, the mining process is near its end, because there is a maximum of Bitcoins that can be on the market, and that number is 21 million of these coins. When the process is finished, this coin will no longer be available for mining, and it will only exist on the market as a strong cryptocurrency with is value-based by speculations, popularity, and a number of people who are using it for payments.

Regulations by the Government

There is a big awareness by the governments of many countries about the safety of using cryptocurrencies. Also, there must be some new regulations that will determine how will people who are using these coins to pay the taxes. Because now, there are no regulations about taxes from using any cryptocurrency in the world.

However, with better regulations of using the crypto coins, there will be fewer fluctuations in the value, and it will influence the market to be bigger and safer to invest in. While some countries are welcoming the introduction of crypto on their market, some others like China or the United States, who want to regulate these coins with taxes. Also, there are some speculations that says how many people are using crypto for black market, so there must also be some solutions for preventing this too.

Source:forbes.com

Fintech Companies

The market of all sorts of cryptocurrencies is on a big rise in recent years, where millions of people are investing in blockchain technologies and trading with the coins. The introduction of Libra has set up some new tendencies in the crypto market, and maybe there will be some similar currencies through social networks soon.

However, there are still a lot of important questions about how will everyone regulate the massive usage of these virtual currencies, and how are they going to implement them in the economies of countries, IMF, stocks, and much more. The biggest advantage is going to have the Tech Companies, who already are investing in this type of currency for a long time.

There is a lot of Fintech companies who are interested in investing in cryptocurrencies like Libra, and maybe developing some similar to that one. Some big Fintech companies like Chime got their investments from big finance companies like Goldman and Sacks, who see the value in investing in developing and trading in the crypto market.

The conclusion is that the crypto market will only get bigger next year and that there will be even more companies that will invest in the crypto. If the countries come up with some good regulations and determine the way of how will people pay taxes while they are trading of paying with cryptocurrencies, we can only expect even bigger interest from everyone to replace today’s money with this revolutionary way of payment.

Bitcoin and the Stock Market: A Simple Investing Strategy

“Should I buy bitcoin?”

This is the question everyone is asking. Is it a good price? Will the bitcoin price go up in the future? If so, by how much?

No one can predict the answers to these questions, because blockchain-based investments like bitcoin are a new asset class. We simply don’t know the rules.

Source:bitcoincryptocurrency.org

But we do know the rules for investing. They were laid out in 1949 by the Columbia economics professor Benjamin Graham in his classic book The Intelligent Investor. Graham’s strategy is called “value investing,” and it built the fortunes of great investors like Warren Buffett and Sir John Templeton.

Though there are many types of value investors, what they have in common is investing in great companies at a discounted price, companies whose stock price is a great “value.” While many investors look to “buy low and sell high,” value investors use disciplined analysis to find the “lows” and “highs.” This involves betting against the crowd.

The classic value investor also keeps a portfolio of both stocks and bonds to hedge against risk. Since bond prices generally go up when stocks go down, and vice versa, holding a mix of both — and periodically rebalancing that mix — provides safety against wild market swings in either direction.

But which stocks? Which bonds? In the modern update to The Intelligent Investor, the Wall Street Journal financial columnist Jason Zweig suggests holding the majority of stocks in a total stock market index fund, to diversify across the entire stock market. For bonds, he suggests a total bond index fund.

Source:investors.com

He does allow, though, that a portion of one’s stock holdings can be used for “mad money,” i.e., picking individual stocks, or precious metals, or even alternative investments. Thus, The Intelligent Investor portfolio today might fall somewhere between these two bounds:

It is in the slice of the pie called “alternative investments” where we can enjoy a taste of bitcoin. Bitcoin is the alternative investment that has seen magnificent returns over the past several years when most financial advisors did not even know what it was.

The approach here is to consider bitcoin (and cryptocurrency) as a slice of the investment pie. Of course, investors should not put more into bitcoin than they are willing to lose completely — and if they do, they see it as “tuition paid.” On the other hand, most can afford to lose a small slice of the pie. Visiting the-bitcoin-profit.com. you can learn how to earn money on bitcoin.

Including a bit of bitcoin within an investment portfolio allows the investor to learn about this new asset class, and potentially enjoy enormous gains that bitcoin has seen since starting at just a few pennies in 2010 and growing to over $5,000 today.

Source:smartasset.com

Another advantage to this investment strategy is that bitcoin is not correlated with other investible assets like stocks, bonds, precious metals, and the like. In other words, while bitcoin does experience wild price fluctuations, they are largely independent of other markets, making it a diversification tool.

The biggest drawback is that bitcoin cannot be purchased through traditional online brokerages; you can’t buy bitcoin at E*Trade yet. The investor needs to purchase bitcoin through online blockchain exchanges like Coinbase or bitcoin lending platforms like xCoins.io. The intelligent investor, then, might hold in his or her portfolio:

  • 45% total stock market index fund (like Vanguard Total Stock Market Index, VTSMX)
  • 45% total bond market index fund (like Vanguard Total Bond Market Index, VBMFX)
  • 10% bitcoin
  • One who puts his money in stocks only;
  • One who puts her money in stocks, bonds, and 2% bitcoin (the “conservative” portfolio above);
  • One who puts his money in stocks, bonds, and 10% bitcoin (the “aggressive portfolio above).

Here is a chart showing their three-year returns from September 1, 2015, through September 1, 2018.

The “aggressive” portfolio nearly tripled the value of the stock-only portfolio. Even the “conservative” portfolio outshines the stock market over the past three years. It also hedges risk by holding half stocks and half bonds.

Beyond Bitcoin: Diversifying Blockchain Holdings

Source:techcrunch.com

The easy way to invest in cryptocurrency, as we’ve shown above, is to simply buy and hold bitcoin. However, the intelligent investor may want to further diversify his or her alternative investments into other cryptocurrencies.

Let’s take the 10% “alternatives” of the Aggressive Portfolio and now further diversify it into the top three cryptocurrencies: Bitcoin (5%), Ethereum (2.5%), and Ripple (2.5%). The new allocation looks like this:

After just three years, the portfolio has multiplied an astonishing 9x. That $10,000 has grown to over $90,000—while still being protected against risk!

This assumes a one-time investment in 2015, then patiently allowing the gains to accumulate. This demands that investors wait out the huge roller coaster swings of the crypto market, avoiding the temptation to buy at every new high and sell at every new low. It requires patience and confidence.

To hedge against this psychological risk, there is another approach that is proven to deliver even bigger returns: investing the same amount every month, or dollar-cost averaging.

Dollar-Cost Averaging: The Easiest Way to Invest

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Let’s use a simple stock market example (no bitcoin). Instead of a one-time investment of $10,000, imagine the investor splits that $10,000 over 36 months, investing a fixed amount of $833 per month in the S&P 500. This is invested like clockwork, regardless of what the market is doing; it’s on autopilot.

After three years, that $10,000 one-time payment has grown to a little less than $15,000—but nearly $30,000 if split into monthly installments.

This technique is known as “dollar-cost averaging,” and it is the best approach for most investors for a few reasons:

  • You put the same amount in each month, sometimes buying more (if prices are low) and sometimes buying less (if prices are high). In this way, you end up buying the “average.”
  • This avoids you making a one-time investment when the market is high (and you never know if the market is high until later). You don’t have to worry about “timing the market.”
  • It also easier psychologically. When prices are low, you have the satisfaction of buying more—and when prices are high, you have the satisfaction of prices being high. It’s a win/win.

Combining the Dollar-Cost Averaging strategy with the Aggressive Portfolio above, then, you might take $500 per month and invest it like so:

  • 65% ($325) into a total stock market fund (like Vanguard VTSMX);
  • 25% ($125) into a total bond market fund (like Vanguard VBMFX);
  • 10% ($50) into bitcoin (or a basket of cryptocurrencies).

The intelligent investor would have these investments set on autopilot, transferring to an investment account and crypto wallet at the same time each month (say, on the 1st or 15th) via automatic withdrawal, if possible.

Today’s “intelligent investor” looks similar to the intelligent investor of the past. He or she is still focused on long-term reward while hedging against risk.

But isn’t it a bigger risk to sit out the crypto investing revolution entirely? This approach allows investors to balance risks with the rewards of bitcoin.