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Cryptocurrency trading has become increasingly popular in recent years. With its high volatility and potential for significant gains, many individuals have been drawn to this market. However, it's important to recognize that cryptocurrency trading also comes with significant risks, including the possibility of a crash.

A cryptocurrency crash can be devastating, leading to significant financial losses. Therefore, it's essential to take steps to avoid a crash when trading cryptocurrency. Here are some tips to help you do just that.

Do Your Research:

One of the most important steps you can take to avoid a crash when trading cryptocurrency is to do your research. Before investing in any cryptocurrency, you should take the time to understand the fundamentals of the technology behind it. This includes understanding the project's goals, the team behind it, and any potential risks or drawbacks.

Additionally, it's essential to stay up-to-date on news and trends in the cryptocurrency market. This will help you stay informed about any significant changes or developments that could impact the value of your investments.

Diversify Your Portfolio:

Another important strategy for avoiding a crash when trading cryptocurrency is to diversify your portfolio. Instead of investing all your money in one cryptocurrency, consider spreading your investments across several different cryptocurrencies. This will help reduce your risk of significant losses in the event of a crash in one particular cryptocurrency.

Use Stop-Loss :

Orders Stop-loss orders are a trading strategy that can help protect you from significant losses. A stop-loss order is an automatic order that is placed to sell a cryptocurrency at a certain price point. If the cryptocurrency drops below that price point, the stop-loss order will trigger, and your cryptocurrency will be sold automatically, limiting your losses.

Avoid Emotional:

Trading Emotional trading is a common mistake that can lead to significant losses in cryptocurrency trading. This occurs when investors make decisions based on their emotions, rather than rational analysis. For example, an investor may panic and sell their cryptocurrency holdings during a market downturn, leading to significant losses.

To avoid emotional trading, it's essential to develop a trading strategy and stick to it. This includes setting clear investment goals, establishing risk tolerance levels, and making rational decisions based on analysis rather than emotions.

Keep Your Investment Goals in Mind:

Finally, it's essential to keep your investment goals in mind when trading cryptocurrency. If you're investing for the long term, short-term fluctuations in the cryptocurrency market may not matter as much to you. However, if you're looking to make a quick profit, you may need to be more vigilant and willing to adjust your strategy as needed.

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Start Small :

When you're first starting out in cryptocurrency trading, it's best to start small. This means investing only a small portion of your portfolio in cryptocurrencies until you gain more experience and confidence in your trading abilities. This approach will help you minimize your risk of significant losses in the event of a crash.

Set Realistic Expectations:

It's essential to set realistic expectations when trading cryptocurrency. While it's true that some investors have made significant profits in this market, it's also true that many have suffered significant losses. Therefore, it's important to be realistic about the potential risks and rewards of investing in cryptocurrencies.

Avoid FOMO :

FOMO or fear of missing out, is a common emotion that can lead to poor investment decisions. When you see other investors making significant profits in the cryptocurrency market, you may feel like you're missing out on an opportunity. However, it's important to avoid making impulsive investment decisions based on FOMO.

Be Patient :

Cryptocurrency trading requires patience. It's important to avoid making hasty investment decisions based on short-term market fluctuations. Instead, take a long-term approach to investing in cryptocurrencies and focus on the fundamentals of the projects you're investing in.

Consider Professional Advice:

Finally if you're new to cryptocurrency trading, it may be beneficial to seek professional advice. This could include hiring a financial advisor or working with a cryptocurrency trading expert. These professionals can help you develop a sound investment strategy and avoid common pitfalls in the cryptocurrency market.

In conclusion, cryptocurrency trading can be exciting and potentially profitable, but it also comes with significant risks. To avoid a crash when trading cryptocurrency, it's essential to do your research, diversify your portfolio, use stop-loss orders, avoid emotional trading, and keep your investment goals in mind. By taking these steps, you can reduce your risk of significant losses and increase your chances of success in the cryptocurrency market.

In summary, avoiding a crash when trading cryptocurrency requires careful research, diversification, and rational decision-making. By following these tips and staying vigilant in your trading activities, you can minimize your risk of significant losses and increase your chances.

#trading #Binance #buildtogether #antiscam #BTC

The Securities and Exchange Commission will vote on new rules and changes to bolster requirements for cybersecurity, privacy and tech infrastructure that officials said could encompass cryptocurrencies.

The five-member commission will vote Wednesday morning on issues relating to cybersecurity, the privacy of consumer financial information and technology infrastructure, such as cloud services.

The SEC will vote on whether to propose changes to require brokers-dealers, investment companies, registered investment advisers and transfer agents to tell people when they have been affected by data breaches. A current rule requires “covered firms” to let customers know about how they use their financial information, but there is no requirement now to let them know about breaches, SEC Chair Gary Gensler said.

“Critically, firms would need to help customers understand how to protect themselves from harm that might result from the breach,” Gensler said.

The SEC also will vote on whether to propose a new rule requiring broker-dealers, clearinghouses and other entities to have written policies to address their cybersecurity risks. It would require market entities, excluding smaller broker-dealers to disclose to the public a description summarizing cybersecurity risks that could “materially affect the entity” and also “significant cybersecurity incidents in the current or previous calendar year,” Gensler said.

“I believe such disclosure would help investors make informed decisions when deciding to which firms they might entrust their finances, data, and personal information,” Gensler said.

Market entities and capital markets rely on “complex and ever-evolving information systems,” Gensler said, adding that they are systems owned or used by the entity.

Those two proposals wouldn’t include a special carve-in or carve-out for crypto, according to an SEC official. To the extent that information systems interact with crypto, that would be covered by the cybersecurity changes, the official said.

The last proposal would broaden Reg SCI to include the largest broker dealers, swap data repositories and certain exempt clearinghouses while bulking up policies.

Regulation SCI was adopted in 2014 to strengthen the tech infrastructure of U.S. securities markets. The rule currently applies to national securities exchanges, among others.

An SEC official said if a national securities exchange is trading crypto securities, then the rule would apply.

The meeting starts at 10 a.m. EDT on Wednesday.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

#Web3 #antiscam #cryp101

Bitcoin lost momentum on Monday, teeter-tottering above and below $28,000 as investors seemed ready to hunker down in advance of the U.S. central bank's next interest rate decision on Wednesday.

The largest cryptocurrency by market capitalization was recently trading at about $27,745, down a roughly a percentage point from 24 hours ago. Early Monday (UTC), bitcoin had climbed above $28,400 just hours after the U.S. Federal Reserve announced it had teamed up with five other major central banks to ensure a steady flow of the U.S. dollar, a dominant reserve currency, in the global financial system.

"Faith in the fiat banking system is waning rapidly and the only alternative, safe haven that is portable is bitcoin," Stefan Rust, CEO of data aggregator Truflation, wrote in an email to CoinDesk. "The rapid rise in the price of bitcoin is a sign of fear that, more problems lurk in the banking sector - particularly since the fall of Credit Suisse."

Rust added: "The bank runs we are seeing are also making it difficult to access gold, while fear of inflation and hyperinflation in some countries are all driving a flight to BTC."

In recent days, bitcoin's price has risen as the threat of a global banking meltdown diminished and investor hopes mounted for a more dovish Fed policy, possibly even suspending its year-long streak of interest rate hikes at its meeting starting Tuesday, although a 25 basis point increase seems most likely after last week's only mildly improved inflation report.

"That's probably most likely," Tom Shaughnessy, co-founder of crypto research platform Delphi Digital, told CoinDesk TV's "First Mover" program.

Sunday's announcement that the Fed would increase the frequency of the dollar swap lines with the European Central Bank, the Bank of Japan, the Bank of England, the Bank of Canada and the Swiss National Bank from weekly to daily, aims to calm exchange volatility and avoid strains in the supply of credit to households and businesses worldwide, as CoinDesk Managing Editor Markets Asia Omkar Godbole reported, adding that "the increased frequency of swap lines has cleared the way for an unabated rise in risk assets, including bitcoin. The leading cryptocurrency by market value is largely seen as a hedge against the banking system.

Ether, the second largest cryptocurrency in market capitalization, was recently changing hands at about $1,731, down 3% from Sunday, same time. Other cryptos among the top 25 by market value were largely in the red, with APT, the token of layer 1 network Aptos, and MATIC, the native crypto of layer 2 platform Polygon recently off more than 8% and 6%, respectively. SOL, the token of the Solana blockchain rose slightly.

Delphi Digital's Shaughnessy said that the driving force behind the current bitcoin surge and its potential sustainability were difficult to determine, although he noted that "this is the first time in history that we have a global banking crisis, and crypto validated to a degree and well known that people can now seek an alternative and go into crypto."

Laguna Labs' Rust wrote that the Federal Open Market Committee's (FOMC) announcement would likely determine bitcoin's path forward.

"The only thing holding bitcoin back this week will be the FOMC meeting, with investors nervously awaiting the Fed's next interest rate decision," he wrote, noting that if the Fed did scale back its current policy, "markets will be very nervous and it will be a testing time for bitcoin."

He added: "Will it keep going in the opposite direction to global markets, or fall back in line? Certainly, the bitcoin maxis believe the former."

#ETH #antiscam

LOS ANGELES — Yat Siu, co-founder and chairman of Web3 game developer and investment firm Animoca Brands, said Tuesday that Asian companies are more willing to adopt and invest in Web3 technologies than their North American counterparts.

During a fireside chat at the Outer Edge conference in Los Angeles Siu said that among major international game publishers and their 400 portfolio companies, those located in Japan, Korea, Hong Kong and across Southeast Asia are far more active in discussing, building and embracing technologies such as non-fungible tokens (NFT) and the metaverse than those located in the U.S.

Siu explained that due to the harsh crypto winter that hit many U.S.-based companies last year, its impact on NFTs has steered many U.S. firms away from investing in Web3. However, enthusiasm to invest in blockchain is still alive in Asia.

“The adoption, readiness and willingness actually sits in Asia. Like, you go and want to sell something to people in Japan or Korea or Southeast Asia, you'll find a much more ready market versus over here.”

He also claimed that intellectual property (IP) development is more advanced across Asia and the “pro-capitalist” sentiments among investors in the region have prompted their investments in Web3 technologies.

"A large swath of people in the U.S. kind of start to veer somewhat outside of capitalism. Capitalism doesn't work for them," he said. "Whereas in Asia, a lot of people are very pro-capitalist because of their own experiences with what capitalism has brought to them in their lifetime."

"We joke about this, but it's kind of true – the ‘American Dream’ is much more alive and well in Asia than it is in the U.S. for all the things [Web3] that we just discussed," he added.

Recently, countries in Asia have been making moves to embrace Web3 at a national level. In October, Japan’s Prime Minister Fumio Kishida said in a policy speech that the country would be investing in NFTs and the metaverse in its digital transformation efforts. In November, Japan’s Digital Ministry said it would create a decentralized autonomous organization to further explore its use of Web3 technologies.

In January, South Korean government said it would create a metaverse replica of its capital city, Seoul, to help the country improve its public services in a virtual setting.

Read more: South Korea’s Crypto Firms Will Have to Self-Regulate Under New Guidance

#antiscam #bicasso #cryp101

Fintech payments company Block (SQ) is down 17% after being the subject of the latest attack from notable short seller Hindenburg Research.

"Our 2-year investigation has concluded that Block has systematically taken advantage of the demographics it claims to be helping," said Hindenburg. "The 'magic' behind Block’s business has not been disruptive innovation, but rather the company’s willingness to facilitate fraud against consumers and the government, avoid regulation, dress up predatory loans and fees as revolutionary technology, and mislead investors with inflated metrics."

Block was founded and is led by former Twitter (TWTR) CEO Jack Dorsey. An outspoken proponent of Bitcoin (BTC), Dorsey has led Block into offering bitcoin purchases and the development of a bitcoin wallet and mining rigs.

Bitcoin revenues, however, remain a small part of Block's overall business, which is dominated by the company's Cash App, and which is the focus of the Hindenburg report.

Hindenburg continued: "Our research indicates, however, that Block has wildly overstated its genuine user counts and has understated its customer acquisition costs. Former employees estimated that 40%-75% of accounts they reviewed were fake, involved in fraud, or were additional accounts tied to a single individual."

#BNB #antiscam

The USDC stablecoin regained its peg to the U.S. dollar, according to CoinGecko, after falling below the $1 value it was supposed to hold as the federal banking and finance regulators said on Sunday that all depositors in Silicon Valley Bank will be made whole and have access to their funds on Monday.

The Circle-issued stablecoin fell in value late Friday as holders rushed to redeem their tokens upon learning that Circle kept some portion of the funds backing USDC in Silicon Valley Bank, which state and federal regulators took over on Friday morning.

Circle later acknowledged that about $3.3 billion – or about 8% of the overall funds backing USDC – were held in Silicon Valley Bank. The Federal Deposit Insurance Corporation announced on Friday that insured SVB depositors would regain access to their funds by Monday, but said uninsured depositors would only get an advance sometime this upcoming week. As the FDIC sells off SVB’s assets, these uninsured depositors would receive a dividend. More than 90% of the funds held in SVB were uninsured.

Read more: Scrutiny Falls on $43B USDC Stablecoin’s Cash Reserves at Failed Silicon Valley Bank

USDC fell to as low as $0.86 at some points, a staggering collapse for the world’s second-largest stablecoin, but began recovering somewhat by midday Saturday.

USDC's price action on March 11, 2023 at 11:00 p.m. ET (04:00 UTC) (CoinDesk)

Circle assured investors it would “cover any shortfall” in USDC reserves using corporate funds should it not recover the full $3.3 billion, which helped it rebound to $0.97.

The announcement came after a number of major crypto exchanges suspended or paused USDC-related transactions. Coinbase (COIN), the largest exchange in the U.S., paused conversions from USDC to U.S. dollars late Friday. On the other hand, the world’s largest exchange, Binance, announced Saturday it would resume trading certain USDC trading pairs it had previously suspended.

Circle said Friday it was waiting for further information from the FDIC on what it would actually do about SVB’s deposits. It’s a key question that lawmakers and regulators are grappling with.

U.S. Rep. Maxine Waters, the ranking member on the House Financial Services Committee, met with officials from the FDIC, Federal Reserve and U.S. Treasury Department on Friday to discuss the situation.

Read more: Circle Scrambles to Right USDC After Signature Bank Failure

#cryp101 #antiscam #dyor

Crypto market maker Auros raised $17 million from new investors as it seeks to repair a balance sheet hole caused by FTX's collapse.

High frequency trading firm Vivienne Court, Nasdaq-listed digital asset mining company Bit Digital, Trovio, Epoch Capital, Primal Capital and senior alumni from market making giant Optiver invested in the fund raise, Auros said in a statement.

Marcel Klooss, co-founder of Vivienne Court, and Hughes Ching, co-founder of Bit Digital, will join the Auros board of directors, the firm said.

The fresh capital injection will help Auros complete a provisional liquidation and restructuring process it entered late last year, co-founder Benjamin Roth said in an email response to questions from The Block. The firm ran into financial problems and missed several loan repayments after about $20 million of its assets were stuck on the FTX platform after the exchange filed for bankruptcy.

''We are also well-placed to further expand our strategic market making business and help create healthy, liquid markets for all of our partners,'' Roth wrote. ''It is also important to note that the business continued to operate as usual throughout this process, and we have continued to support all of our partners this entire time.''

The latest funding round will also be used to expand the firm's derivatives solutions and high frequency trading businesses, the Auros statement said.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

#dyor #antiscam