Learning the friendly way

Volatility has become a defining characteristic of the cryptocurrency market, however, it doesn’t need to be a negative thing. As these digital assets experience significant price swings, driven by factors like speculation, regulation changes, and technological developments, this presents a perfect opportunity to potentially generate substantial returns. 

This article explores strategies to capitalise on crypto volatility, including dollar-cost averaging, swing trading, leverage, and arbitrage. By understanding and embracing volatility, investors can navigate the market's ups and downs and potentially unlock rewarding gains in this dynamic landscape. Let’s dive in.

Understanding what volatility is

Volatility in finance refers to how much an asset price moves up and down over time. There’s no denying that cryptocurrency prices are known for being highly volatile and changing a lot in a short time, or that in many cases this has led traders to a rather healthy return on investment. While also synonymous with the stock market, volatility is typically caused by things like investors speculating and trading based on emotions, news stories that impact cryptocurrencies or shares, and uncertainty around government regulations or geopolitical events. 

Since cryptocurrencies are still fairly new and can be traded globally 24/7, their prices tend to swing wildly. These unpredictable price swings are common in crypto markets, so it's important to understand what causes the big ups and downs, how they contribute to greater economic growth, and to understand the importance of having a solid risk management strategy in place. 

Strategies for capitalising on crypto volatility

No matter which currency you are trading, one common strategy in taking advantage of volatility is dollar-cost averaging (DCA), this means investing a fixed amount at regular intervals regardless of price. DCA allows you to buy more when prices are low and less when prices are high, smoothing out the impact of volatility over time. For example, investing $100 weekly into Bitcoin.

Another approach is buying the dips, purchasing after a price drop, aiming to get in at lower levels. However, trying to "catch a falling knife" by buying too early carries risks. Technical analysis can help identify potential dip-buying opportunities for finding the best value.

Taking profits during rallies is also a key strategy used by investors. This involves setting target prices to sell portions of your holdings allowing you to secure gains amid volatility. A trailing stop-loss strategy can automate this, selling if prices retrace a set percentage from recent highs. It's important to remember that this strategy needs to be monitored and adjusted according to market movements.

Don't put all your eggs in one crypto basket. Diversification is crucial for managing risk in volatile markets. Spread investments across various cryptocurrencies, stablecoins, and asset classes like stocks to buffer volatility's impacts.

While lucrative opportunities exist in crypto volatility, appropriate risk management is crucial. Start small, learn strategies gradually, and as the trading law goes: never risk more than you can afford to lose.

The importance of proper risk management

Managing risk carefully and having an effective risk management plan in place is very important when trading cryptocurrencies like Bitcoin, Ethereum and other altcoins. Using stop-loss orders to automatically exit losing trades and sizing your position properly for your account size can help limit losses. However, be cautious about overtrading or putting too much money into extremely volatile crypto assets. Having too much exposure increases your risks dramatically and may cost you in the long run.

Instead, make sure that you diversify your portfolio and follow a disciplined trading plan as responsible risk management protects your capital and helps ensure long-term success in this unpredictable market.

Conclusion

While volatility defines the cryptocurrency market, it also presents opportunities for savvy investors. By embracing strategies like dollar-cost averaging, buying dips, taking profits during rallies, and diversifying across assets, you can navigate volatility's ups and downs. However, proper risk management through stop losses, position sizing, and avoiding overexposure is paramount. 

Start small, learn gradually, and never risk more than you can afford to lose. With discipline and a solid strategy, you can unlock crypto volatility's potential rewards while mitigating risks in this dynamic landscape. The key is understanding volatility's drivers and harnessing its power through proven tactics. Approach with caution, but don't let volatility's roller coaster scare you away from crypto's wealth-building possibilities.

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Une adresse de portefeuille crypto est l'équivalent blockchain d'un compte bancaire, à partir duquel les utilisateurs peuvent envoyer et recevoir des cryptomonnaies ou d'autres actifs numériques. Conformes à des réseaux blockchain spécifiques (par exemple, les portefeuilles Bitcoin contiennent des Bitcoins, tandis que les portefeuilles Ethereum contiennent de l’Ethereum), ces portefeuilles ne se contentent pas de "stocker" vos actifs, ils facilitent également toutes les transactions.

Qu'est-ce qu'une adresse de portefeuille ?

Une adresse de portefeuille est généralement une longue chaîne de caractères alphanumériques, composée en moyenne de 26 à 35 caractères. Par exemple, une adresse Bitcoin pourrait ressembler à ceci : 1BvBMSEYstWetqTFn5Au4m4GFg7xJaNVN2. Chaque réseau blockchain (Bitcoin, Ethereum, etc.) possède son propre format d’adresses.

Toutes les transactions crypto sont enregistrées sur la blockchain, ce qui signifie que tout le monde peut les consulter. Si vous connaissez l'adresse de quelqu'un, vous pouvez consulter toutes les transactions qu'il a effectuées. Cependant, même si vous pouvez voir ce qui se passe, vous ne pouvez pas savoir qui se cache derrière ces transactions. Les adresses de portefeuille ne sont pas liées à des noms, ce qui permet d’utiliser des cryptomonnaies sans que tout le monde sache qui vous êtes.

Le rôle des adresses de portefeuille dans l’écosystème blockchain

Les adresses de portefeuille sont essentielles pour les transactions sur la blockchain. Elles fonctionnent comme des identifiants numériques, vous permettant d'envoyer et de recevoir des cryptomonnaies sans partager d'informations personnelles.

Le réseau blockchain utilise ces adresses pour suivre combien de cryptomonnaies chacun possède. Ainsi, lorsque vous effectuez une transaction, votre adresse indique qui envoie et qui reçoit la crypto, en utilisant des adresses de portefeuille plutôt que des informations personnelles.

Sur certains réseaux, les adresses peuvent même représenter des programmes automatisés appelés smart contracts (contrats intelligents). L’avantage des adresses de portefeuille est qu’elles permettent à tout le monde de consulter et vérifier les transactions tout en préservant votre véritable identité.

Conseils de sécurité pour protéger vos cryptos

1. Vérifiez les adresses
   Toujours vérifier l'adresse du destinataire avant d’envoyer des cryptomonnaies. Une petite erreur peut entraîner une perte définitive de fonds.
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2. Ne partagez jamais vos clés privées
   Alors que les adresses (également appelées clés publiques) sont destinées à un usage public, partager vos clés privées revient à divulguer votre code PIN.
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3. Attention au phishing
   Ne faites pas confiance aux adresses reçues par des emails ou messages non sollicités. Vérifiez toujours les informations d’adresse via des canaux officiels avant d'effectuer un paiement.
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4. Utilisez des portefeuilles matériels
   Pour des montants importants, envisagez d'utiliser des portefeuilles matériels qui génèrent et stockent les adresses hors ligne.
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5. Comprenez les formats d'adresse
   Sachez que différentes cryptomonnaies utilisent différents formats d’adresse. Envoyer des fonds à un mauvais type d’adresse peut entraîner une perte de fonds.
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6. Utilisez des codes QR
   Si possible, scannez un code QR pour réduire le risque d’erreurs de saisie.
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7. Surveillez vos adresses
   Vérifiez régulièrement l'activité associée à vos portefeuilles pour détecter toute transaction non autorisée.

Que vous soyez un trader actif ou que vous ayez acheté du Bitcoin une seule fois, il est important de comprendre les adresses de portefeuille - elles sont essentielles pour envoyer et recevoir des cryptomonnaies. Bien qu’elles vous permettent de rester en partie anonyme, vous devez rester vigilant pour garder vos cryptos en sécurité.

Les utilisateurs disposant d’un compte Tap bénéficient automatiquement d’un portefeuille crypto unique pour toutes les devises supportées. Ces portefeuilles peuvent être gérés depuis un emplacement sécurisé, ce qui les rend à la fois pratiques et toujours accessibles, vous laissant maître de vos actifs.

The crypto market has entered a phase that veterans often call the "boring zone." It's a time when:

• Bitcoin's price seems stuck, fluctuating between $50,000 and $70,000 for months.
• Altcoins are in an even deeper slumber, with many down 50-80% from their peaks.
• Trading volumes on major exchanges have plummeted, dropping 30% from the last bull market's heights.

Sound familiar? It should. This lull is a recurring theme in the crypto market cycle, and historically, it's often the calm before the storm. It’s also a common attribute after a recent Bitcoin halving. 

Let's look at what happened after previous Bitcoin halvings:

• 2012 Halving: 92 days until new all-time high
• 2016 Halving: 291 days until new all-time high
• 2020 Halving: 216 days until new all-time high

For perspective, 28 July 2024 marks 100 days from the most recent halving, with 25 February 2025 marking the 300-day mark. 

The power of patient investing

Investing in cryptocurrencies over longer time horizons can be likened to early-stage venture investing, where patience could potentially lead to significant returns. While past performance doesn't guarantee future results, historical examples like Ethereum and Solana demonstrate this potential. 

Ethereum, launching at less than $1 in 2014, and Solana, starting below $1 in 2020, have since seen their values grow to over $3,000 and $140 respectively as of early 2024.

In the crypto space, what’s known as the HODL approach, emphasises the power of time and compound growth, similar to that of traditional asset classes. The idea is straightforward: if you've taken a position in a project you believe has strong fundamentals, maintaining that position through periods of high volatility could potentially lead to significant gains.

To illustrate this point further, in 2010, Bitcoin was worth less than $0.01. By April 2024, it had reached around $70,000. An investor who bought $100 worth of Bitcoin in 2010 and held it until 2024 would have seen their investment grow to millions of dollars.

Strategies for surviving (and thriving) in the "boring zone"

During quiet periods in crypto dive deeper into blockchain fundamentals, research promising projects, instead of anxiously checking prices or reacting to every piece of news, use this time productively.

Alternatively, for those with capital to invest, dollar-cost averaging (DCA) could be something to consider. A Vanguard study found that DCA outperformed lump-sum investing in 68% of cases during market downturns, highlighting its potential effectiveness in notoriously volatile markets.

Know with certainty that this "boring zone" is often temporary. Based on previous cycles, we might see a new Bitcoin all-time high in 30 to 150 days, and once Bitcoin breaks its previous record, top altcoin projects have historically seen gains of 200% to 1,000%.

By staying patient and disciplined during quiet periods, you can be prepared for potential opportunities that may arise as the crypto market evolves. Remember, while historical patterns offer insights, they don't guarantee future results, but these historical patterns are worth considering as you plan your strategy.

We get it, the waiting game is hard

Holding onto your crypto during boring market times can be tougher than you'd think. When prices aren't moving much, it's easy to get antsy or start doubting your choices. But keeping a cool head and being rational is key to long-term success.

First off, remember why you got into crypto in the first place. Was it the tech? The potential? Keep that big picture in mind. It helps to set realistic expectations too - crypto's known for its ups and downs, so flat periods are normal.

Try to limit how often you check prices. Constantly peeking at your portfolio can drive you nuts during slow times. Instead, focus on other parts of your life or dive deeper into learning about blockchain.

Connecting with other crypto fans can help too. Chat about ideas, not just prices. And don't forget to celebrate small wins - even if the market's quiet, projects are still developing and growing.

Stay patient, stay curious, and remember: in crypto, today's boredom could be tomorrow's excitement.

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You might have come across the term p.a. in traditional investment cycles, but how does it relate to crypto? In this article, we’re breaking down what p.a. means, how to get in on it and how it relates to the crypto industry. 

What does P.A. mean?

P.a. is an investment term that stands for per annum. This refers to the interest an investor can gain over a year's period and provides insight into the yields that the investment will generate. This is calculated on a simple basis and not compound. 

You might see digital wallet platforms offering reward rates of 8% p.a. Or 14% p.a., this tells the potential investor that the platform will provide 8% of the initial investment, over a 12 month period. 

PA can also stand for price action, a popular term used on crypto Twitter. In this piece we're focusing on the annual interest rates version.

How can users make money with crypto assets?

There are several ways in with industry participants can earn cryptocurrency. Below we outline the most widely used, and safest options. Be sure to check each option with the relevant blockchain network as these will differ from network to network.

Crypto Mining

Crypto mining can be a lucrative means of generating a passive income, however, the costs might run high depending on where you live and what cryptocurrency you are mining. Each network has its own way of minting new coins, which require different hardware and electricity means. 

Bitcoin, for instance, is a Proof of Work network that requires miners to use large amounts of energy as they race to finish a complex cryptographic puzzle. The first to complete this is rewarded with mining the next block and receiving the associated payoffs. 

Bitcoin requires a large amount of electricity, not practical in areas with high electricity costs, and either a graphics processing unit (GPU) or an application-specific integrated circuit (ASIC), which can also be costly. 

If you wish to get involved with mining cryptocrrencies be sure to do adequate research on what will be required and what income this could generate before investing any money. 

Crypto Staking

Crypto staking is an alternative minting solution for Proof of Stake networks, such as Cardano and soon-to-be Ethereum. Crypto staking requires users putting their funds in a smart contract usually for a predetermined lock up period to confirm transactions on the network. This will typically require a minimum amount, so as to ensure that individuals hold a “stake” in the network and will act on good intentions. 

When crypto traders stake the minimum balance, a node will deposit these funds into a staking pool on the network, similar to a deposit. The bigger the stake, the higher the chances of that user, now referred to as a node, being chosen to verify transactions. When the node is chosen to confirm transactions, they will create a new block and receive a reward for adding it to the blockchain.

Reward rates are specific to each blockchain network so be sure to check the details relevant to platform on which you wish to stake. As a security mechanism, the staked coin in the network is typically taken away if the node acts with ill intent.

Passive Income

There are a number of crypto initiatives that allow users to earn passive income through their crypto assets. These work in a similar way to holding funds in a wallet, however, these wallets will likely be on a cryptocurrency exchange or DeFi wallet and the user will typically not be able to access the funds for a certain period of time. 

Over the duration the user will earn interest as stipulated in the initial agreement. Note that p.a. Values are subject to change with market fluctuations, rising when prices rise and falling when an asset’s price takes a dip. This typically works in the same way as a savings account.

Its worth noting that the onus lies on the traders to pay taxes on any income generated. It is important to check the crypto specific tax laws in your region.

Disclaimer: This article is intended for communication purposes only, you should not consider any such information, opinions, or other material as financial advice.

Investing is not as easy as the internet makes it seem, with every profit comes plenty of research behind it. Not to mention all the strategies. Similar to trading, investing can at times be time-consuming and demanding. While investing, whether in the stock market or cryptocurrencies or any other asset classes, is beneficial in so many aspects, it can also come with some trial and error. In this article, we take a look at the time-tested dollar-cost averaging and explain why this is considered to be a low-risk strategy.

What is DCA?

DCA is an abbreviation for dollar-cost averaging. You may be wondering what DCA is? To put it simply, DCA is an investment strategy that sees people investing gradually over time rather than dropping a lump sum of money into assets.

Let's say an investor has a total of $10,000 to invest monthly, lump-sum investing would see them entering all that money into an asset market while DCA would have them investing $500 each week or month. Not only does DCA provide your leeway to pay your bills while still investing, but it also protects you from excess loss. While lump-sum investing does have its perks, it also has the potential for big losses.

By investing only what you are willing to lose, you are at no risk of financially crippling yourself. DCA ensures you do not lose all your money on an investment, whereas one wrong trade in lump sum trading can greatly set you back. DCA is a great way for newbies to test the markets and trust in an investment before moving forward, seasoned traders are also a fan of DCA as it allows them to diversify their funds in a more structured way. 

The point of DCA is to avoid market watching and big losses, DCA is the practice of routinely investing smaller amounts, timed over regular intervals, regardless of price. This typically allows the investor to buy an asset at an average cost of a long period of time.

Why and how to use DCA

The how is easily answered, as already stated prior, it is as simple as allocating a set amount aside each month with the plan to invest. You invest your set amount a month routinely, regardless of the price, growing your total shares. But the real question is why? Why is this strategy so popular and why is it so highly recommended? Let's get into it. 

The benefits right from the get-go are clear, you hold less risk of losing everything at once. As the traders' tale goes, only put in what you are willing to lose. Lump-sum investments do not take this approach with caution, putting it all on the line, or a large portion at least.

DCA means that you are continuously putting in small amounts that do not greatly limit your day-to-day life while still growing the value of your portfolio. DCA is a longer-term investment strategy. It also eliminates some of the risks involved with investing.

With DCA, the markets don't matter, you are buying your assets at whatever price they are at and reaping the profits when the price climbs. But also, by purchasing every week rather than all at once, you have the option and ability to buy in on the volatile markets getting better prices per share than someone who puts it all in at once.

This strategy also helps you manage emotional investing, forcing you to hold onto your investment despite FUD being spread, ensuring you don't sell low or buy high.

The DCA conclusion

While there are many investment strategies out there, this is a favoured strategy by many investors, that is not to say it is the only or best strategy, just one to consider. There are many perks that come with DCA, and that's what we wanted to highlight in this piece for you today. DCA provides a sense of commitment that is hard to find, ensuring you secure your space in the market without any added risks. There will always be risks involved with investing, but the DCA strategy finds some ways to minimise those risks in comparison.

Vous avez probablement déjà rencontré le terme "token" dans vos aventures crypto, ou entendu parler de Bitcoin et Ethereum décrits comme des tokens, mais que signifie tout cela ? Dans cet article, nous allons détailler ce qu'est un token, comment distinguer un coin d'un token et comment il peut être utilisé comme outil pour stocker de la valeur.

Définition d'un token

Un token, dans le sens cryptographique du terme, représente un actif ou une utilité particulière. Il est important de noter que les termes "tokens" et "cryptomonnaies" sont souvent utilisés de manière interchangeable, bien qu'ils diffèrent techniquement. Les tokens se classent généralement dans l'une des trois catégories suivantes :

1. Tokens de paiement :
   Ces tokens permettent aux utilisateurs d'acheter des biens et des services en dehors de la blockchain, offrant une alternative aux monnaies traditionnelles.
2. Tokens de sécurité: 
   Similaires aux introductions en bourse (IPO) sur le marché boursier, les tokens de sécurité offrent aux utilisateurs une participation ou donnent droit à des dividendes dans un projet blockchain.
3. Tokens utilitaires:
   Les tokens utilitaires offrent aux utilisateurs l'accès à un service au sein d'un écosystème particulier, similaire aux points de fidélité sur une carte Starbucks. Ces points ont de la valeur dans leur propre écosystème mais ne peuvent pas être utilisés en dehors.

Coins vs Tokens

Pour être plus technique, lorsqu'on explore les pièces par rapport aux tokens, les tokens sont catégorisés comme des actifs crypto qui ont été construits sur une autre blockchain, tandis que les pièces sont construites sur leur propre blockchain. L'Ether, par exemple, est le token natif de la blockchain Ethereum, cependant, la plateforme permet aux développeurs de créer une gamme de standards de tokens par-dessus.

Sur la base de ces informations, tous les tokens ERC-20 sont donc catégorisés comme des tokens et non comme des pièces. USD Coin (USDC) et Tether (USDT) sont donc des tokens car ils sont construits sur la blockchain Ethereum. Bien que chaque réseau soit géré par sa propre direction, les deux utilisent la blockchain Ethereum pour faciliter toutes les transactions.

Comment les tokens sont-ils échangés ?

Tout comme les pièces, les tokens peuvent être achetés, vendus et échangés sur des plateformes d'échange, ou envoyés directement d'un portefeuille à un autre. Cela est facilité par la technologie blockchain, de la même manière que les pièces sont transférées d'un endroit à un autre. Contrairement aux pièces, qui sont toutes de nature fongible, les tokens peuvent parfois être non fongibles, ce qui signifie qu'ils ne sont pas identiques en valeur et en fonction.

Les tokens sont envoyés en utilisant l'adresse du portefeuille compatible blockchain du destinataire. L'adresse est souvent représentée par un code-barres sous forme de QR code, ou par un long code alphanumérique. Toutes les transactions ont lieu à partir du portefeuille contenant les tokens et sont envoyées directement au portefeuille du destinataire sans nécessiter d'autorité centralisée comme une banque. Les tokens peuvent généralement être achetés sur des plateformes d'échange, souvent avec Visa ou Mastercard, ou échangés entre utilisateurs.

En quoi un NFT est-il différent d'une cryptomonnaie ?

Les tokens non fongibles (NFT) sont tous différents les uns des autres car ils représentent chacun un objet du monde réel, qu'il s'agisse d'une œuvre d'art numérique ou d'une bouteille de vin fin. Le Bitcoin peut être échangé contre n'importe quoi dans le monde, alors que les NFT sont de nature unique et, bien qu'ils aient de la valeur, ils ne peuvent pas être utilisés de manière interchangeable.

À quoi servent les NFT ?

Les NFT sont utilisés pour représenter un actif particulier, qu'il soit physique ou numérique. Une fois créés, ces tokens représenteront de façon permanente cet actif et ne pourront pas être modifiés. Par exemple, un NFT pourrait représenter un appartement à Londres tandis qu'un autre pourrait représenter une chanson de Kings of Leon. Les possibilités sont infinies, et les marchés sont énormes.

Les utilisateurs peuvent facilement échanger des NFT sur des places de marché (via un site web ou une application mobile) telles que OpenSea ou Rarible. Une fois que vous possédez un NFT, vous êtes crédité des droits de propriété de l'actif que le NFT représente. En raison de la nature de la technologie blockchain, cela est affiché de manière permanente sur le registre public du réseau pour que quiconque puisse le vérifier. Ce processus garantit que la propriété d'un NFT ne peut pas être modifiée et que l'information est disponible pour que quiconque puisse la créditer.

Notez que plusieurs réseaux blockchain supportent actuellement la création de NFT, et le détenteur aura besoin d'un portefeuille spécifique à cette blockchain pour détenir le NFT.

Les tokens sont-ils réglementés ?

En ce qui concerne la réglementation, les pays du monde entier élaborent actuellement des cadres juridiques pour mieux intégrer les cryptomonnaies dans notre système financier actuel. Cela inclut les tokens.

Une fois que les cryptomonnaies seront réglementées par les autorités gouvernementales, elles pourraient offrir au monde des cas d'utilisation inédits comme la gestion d'une ordonnance dans une pharmacie ou des services cliniques, ou pour fournir un retour d'information au support informatique. Bien qu'il y ait de nombreux tokens disponibles sur le marché aujourd'hui, il est probable que ce ne soit que la partie émergée de l'iceberg en termes de leur potentiel pour améliorer les problèmes rencontrés dans le monde entier.