DCA Strategy: Optimal investment in crypto

Today's topic is the dollar-cost averaging (DCA) strategy. You will learn about its pros and cons, as well as where and how to use it.

DCA is a strategy in which an investor regularly invests in an asset, regardless of its price.

This helps reduce the impact of volatility on the overall outcome.

Advantages of DCA:

– Minimal impact of market fluctuations on your portfolio.
– Consistent investment without the need to time the market.

Risks of DCA:

– No guarantee of 100% profit.
– Losses are possible.

How to DCA on a CEX

Centralized exchanges (Binance, Bybit, and OKX) have convenient tools for automating the DCA strategy.

– Find the "Auto-Invest" feature on the exchange.
– Choose the asset and set the amount for regular purchases.
– Define the investment interval.

The advantages include easy setup and support for a large number of cryptocurrencies. However, KYC requirements and exchange fees may deter some users.

How to DCA on a DEX

Some decentralized exchanges, such as DeFi Saver on the Ethereum network, support this strategy.

– Connect your wallet to the DEX.
– Choose investment parameters (asset, amount, frequency).

In this case, you will have full control over your assets. It's anonymous, and KYC is not required. However, liquidity issues may arise with large purchases.

In conclusion

DCA is a good strategy if you want to invest regularly with minimal risks and volatility.

What is a DEX? Differences between DEXs and CEXs

Today, we will delve into one of the key topics in Web3 and determine which trading platforms are better to use.

DEX (decentralized exchange) – platforms for cryptocurrency exchange that operate on blockchains and do not require the involvement of a third party to conduct transactions.

CEXs (centralized exchanges) were discussed in this post

Examples of DEXs:

– STON.fi, DeDust (on the TON blockchain)
– Uniswap, SushiSwap (on Ethereum, BSC, and others)

Differences between DEXs and CEXs:

1. Centralization vs. decentralization
– CEX: Controlled by a single organization that oversees all operations and holds users’ funds.
– DEX: Operates based on smart contracts that automatically execute operations without intermediaries.

2. Privacy and anonymity
– CEX: Require Know Your Customer (KYC) procedures (identity verification).
– DEX: Typically, does not require KYC, allowing for anonymity.

3. Asset control
– CEX: Users entrust their funds to the exchange, which is risky. There have been cases of hacks and bankruptcies—e.g., the former major exchange FTX.
– DEX: Users hold funds in their own wallets, trade directly, and maintain full control.

4. Fees and speed
– CEX: Lower fees and high transaction speeds due to centralized infrastructure.
– DEX: Fees are usually higher (depending on the blockchain); transaction speed depends on network capacity.

5. Tokens
– CEX: Strict listing procedures limit the tokens available for trading.
– DEX: Ability to trade any tokens available on the blockchain.

Conclusions

DEXs provide more freedom and asset control, reducing the risks associated with centralized structures; however, they have their drawbacks: high fees and sometimes slower transaction speeds.

It all depends on your needs and preferences. We recommend combining DEX and CEX platforms.

Crypto Fear & Greed Index

When should you sell and buy crypto? Today, we’ll examine this question through the lens of the Crypto Fear & Greed Index.

The Fear & Greed Index analyzes the sentiment in the cryptocurrency market. The value ranges from 0 to 100 and is based on coin volatility, trends, trading volume, and search queries.

The indicator was created for the stock market but is actively used for cryptocurrencies as well.

How does it work?

– 0-24: Extreme Fear
– 25-49: Fear
– 50-74: Greed
– 75-100: Extreme Greed

Why is this important?

– Understanding sentiments helps predict market behavior.
– When the index shows "fear", it's a good time to buy, but if it shows "greed", it's a good time to sell.
– The indicator helps identify periods when the market is oversold or overbought.

Examples of use:

– Buying in a period of "fear". By early September 2023, the index started moving into the zone of "extreme fear". Further, more buyers entered the market, and BTC gradually rose from $25,000 to $73,000 at its peak.

– Buying in a period of "greed". Over the last month, the index remained in the "greed" zone, indicating a possible correction. As a result, BTC dropped to $59,000.

In any case, one should not rely solely on Crypto Fear & Greed. To make informed decisions, it's important to combine the index with other tools.

What is an IDO?

Raising capital in the crypto industry is an important mechanism for the development of any project. What is the essence of an initial decentralized exchange offering (IDO)? Let’s break it down.

IDO – the process of initially offering tokens before they are listed on exchanges. In simple terms, it’s an opportunity for projects to raise funding directly from users.

The methodology is similar to initial public offerings (IPOs) in the stock market.

· IDOs allow projects to quickly launch into the market and raise funds for further development.

· Users can buy tokens at a low price and become early investors.

How it works:

1. A project announces its IDO and offers a certain number of tokens at a fixed price.

2. Depending on the platform, users fulfill specific conditions and participate. This could involve token staking or completing social tasks.

3. Distribution occurs after the token is listed on exchanges, according to the vesting schedule (token distribution plan among participants).

To participate in IDOs, you need to have a wallet and a certain amount of assets. Other conditions depend on the platform.

🧐 Earning in Web3: Investing

One of the simplest earning strategies is long-term investments. Who is this method suitable for? Find out in the article.

Hodling – Buying and holding cryptocurrency until it grows, ignoring short-term price fluctuations. This method is suitable for beginners and those who are investing for the long-term.

Required knowledge level: A basic understanding of cryptocurrencies and market structure is sufficient.

Risk level: With proper portfolio formation and asset selection, the risk is considered low.

Benefits: No need for constant market monitoring.

Disadvantages: Waiting for investment growth can take a long time.

Time and involvement: Minimal participation.

Expected profitability: Depends on choosing the right project and entry point.

The simplest example is Bitcoin (BTC). Buying at the beginning of 2023 would have yielded a 316% return today.

It is important to understand that not all cryptocurrencies are profitable.

You can start investing in major coins such as BTC, ETH, and TON. Experience and immersion in the market will help you find and identify promising coins at an early stage.

What is risk management?

Risk management is the process of identifying, assessing, and controlling risks that may negatively affect an organization, project, or activity.

Main steps:

🔵 Risk identification: Identifying potential risks that may arise during the activity. This can include both external and internal risks.

🔵 Risk assessment: Determining the likelihood of each risk occurring and its potential impact on the activity. This can be a quantitative assessment (e.g., financial losses) or qualitative (e.g., reputational risks).

🔵 Developing risk management strategies: Determining ways to minimize the likelihood and impact of risks. This includes:

🔵 Monitoring and controlling risks: Continuously observing risks and the effectiveness of measures taken to manage them. Making adjustments to risk management strategies as necessary.

🔵 Documentation and reporting: Keeping records of identified risks, measures taken, and their results. This helps in subsequent analysis and improvement of the risk management process.

HAMSTER COMBAT FACES COMMUNITY BACKLASH: HOT TAKE
Hamster Kombat disqualified over half its users, sparking frustration. Will this controversy drive adoption higher or spell trouble for the project?

Here’s our take: Cleaning up cheaters and ensuring fair rewards is tough but necessary. With 300M users in such a short time, enforcing fairness is a challenge. Holding rule-breakers accountable ensures the platform’s integrity.

After disqualifying 57%, 131M still qualified—a huge sign of adoption. Even if most received just a few hundred tokens, this could total tens of millions in USD. Have any Web2 games rewarded players like this? We don’t think so.

As we saw with Catizens’ 1,400% surge, Telegram apps are booming. If non-cheaters were disqualified, we’re optimistic Hamster Kombat will set things right and bounce back stronger.

In the meantime, come over to swarm to predict on some Hamster Kombat price action.

"What is the highest price Hamster Kombat will reach within 24 hours of its listing?"

🚨Binance denies rumors of leak and sale of data of 12.8 million users

An unknown person put up for sale the alleged data of 12.8 million Binance users.

The data includes last name, first name, email address, phone number, date of birth, home address, postal code.

💡The information leak allegedly occurred in August 2024.

What is On-Chain?

On-chain is a term used in the context of blockchain technology that refers to data and transactions recorded directly on the blockchain.

Main characteristics:

🔵All transactions and data recorded on the blockchain are available for verification by any network user. This increases trust and transparency.

🔵Data recorded on the blockchain cannot be changed or deleted. This ensures a high level of security and protection against fraud.

🔵On-chain data is stored on multiple network nodes, making it accessible and resistant to centralized control.

🔵Transactions on the blockchain are confirmed by multiple nodes, guaranteeing their authenticity and preventing double-spending.

Advantages:

🔵High level of data protection due to cryptographic methods and decentralized storage.

🔵All transactions and data are available for verification, reducing the risk of fraud and corruption.

🔵Any user can verify the data recorded on the blockchain, making the system open and accessible.

On-chain technologies provide a high level of security, transparency, and data accessibility. They play a key role in building decentralized systems and applications, such as cryptocurrencies and smart contracts.

What is Wash Trading

Wash trading is an illegal market manipulation practice where an investor simultaneously buys and sells the same financial instrument to create false trading volume and mislead other market participants.

Main characteristics:

🔵The investor conducts trades with themselves or with a prearranged partner to create the appearance of market activity.

🔵The goal of wash trading is to create a false impression of high demand or supply, which can influence other traders' decisions to buy or sell assets.

🔵Wash trading is an illegal practice and is prohibited by many regulatory bodies worldwide as it undermines market integrity and transparency.

Mechanism of wash trading:

🔵Creating buy and sell orders: The investor places buy and sell orders for the same asset at similar prices.
🔵Executing trades: Trades are executed between accounts of the same investor or between colluding parties.
🔵Creating an illusion of volume: These trades artificially increase trading volume and can affect market prices, creating a false impression of liquidity and demand for the asset.

Wash trading undermines trust in financial markets and distorts the true picture of market activity. Therefore, strict regulatory and monitoring measures are essential to protect the integrity and transparency of trading.

How to Choose a Cryptocurrency for Your Portfolio

🔵 The first and most important step is a deep exploration of the cryptocurrency market. It is necessary to familiarize yourself with various types of cryptocurrencies, their features, and the technologies they are based on.

🔵 Portfolio diversification is key to reducing risks. Including different types of assets, such as high-capitalization cryptocurrencies, as well as lesser-known but promising altcoins, can help distribute potential risks.

🔵 It is important to assess the foundation of the cryptocurrency project, including the development team, project goals, roadmap, milestones already achieved, and community support.

🔵 High liquidity of a cryptocurrency facilitates buying and selling without significantly impacting the price. Checking trading volumes on different exchanges can provide insights into the asset's liquidity.

🔵 Studying historical price data can help understand potential trends and the volatility of the cryptocurrency.

🔵 Using technical analysis to forecast future price movements based on past trends includes analyzing charts, using indicators, and patterns.

🔵 Understanding the regulatory framework in different countries can affect the future of cryptocurrencies and their market acceptability.

🔵 Projects offering unique and innovative solutions may have greater potential for growth.

What is a Bear Market?

A bear market is a market condition in which the prices of financial instruments such as stocks, bonds, or cryptocurrencies continue to decline over an extended period.

This decline is typically accompanied by investor pessimism and expectations of further price drops.

Characteristics of a Bear Market:

🔵 Price Decline: Significant and prolonged decrease in asset values.
🔵 Pessimism: Investors expect further market deterioration.
🔵 Reduced Trading Volume: Decrease in market activity.

Causes of a Bear Market:

🔵 Economic Downturns: Recessions or slow economic growth.
🔵 High Inflation: Sharp increase in the cost of goods and services.
🔵 Political Instability: Domestic or international conflicts.

Advantages and Risks:
While a bear market can lead to significant losses for investors, it also provides opportunities to buy assets at reduced prices for long-term investments.

Spot or Futures: What to Choose

Spot trading and futures trading each have their own characteristics, advantages, and risks.

Spot Market

🔵 Simplicity: Buying and selling cryptocurrencies occur instantly at the current market price.
🔵 Long-term investments: Suitable for those who want to hold assets for a long time.
🔵 Low risk: Less risky compared to futures as there are no margin positions.

Futures

🔵 Hedging: Allows hedging risks by locking in the purchase or sale price of an asset in the future.
🔵 Speculation: The possibility of profit on both rising and falling prices.
🔵 High risk: Using leverage can lead to significant losses.

Choosing between spot and futures depends on your goals, risk level, and experience. Beginners are recommended to start with spot trading, while experienced traders can use futures for hedging and speculation.

Let's understand what Farming is

Farming is one of the ways to earn in the world of cryptocurrencies and decentralized finance (DeFi). Imagine a farm where instead of growing vegetables or fruits, you earn income by providing your cryptocurrency for various financial operations.

How does farming work?

🔵 Depositing cryptocurrency. First, you need to place your cryptocurrency on a special platform. This is similar to a bank deposit.

🔵 Providing liquidity. When you place your cryptocurrency in a pool, it becomes available to other users. These users can borrow your cryptocurrency or use it for trading.

🔵 Earning rewards. In exchange for providing liquidity, you receive rewards. Rewards can come in the form of interest from transactions, bonus tokens, or other types of compensation. Essentially, this is your earnings for helping the platform function.

Farming in DeFi allows you to earn passive income higher than bank deposits and participate in the new blockchain-based financial world.

The main risks include fluctuations in cryptocurrency prices and potential errors in smart contracts that can lead to loss of funds.

Will HAMSTER KOMBAT Airdrop Print Millionaires ??

There’s been a lot of excitement around the $HMSTR airdrop, with rumors suggesting the allocation ratio might be 75% PPH/100.

Here’s a simple guide to help you understand how much $HMSTR you could potentially receive:

Step 1: Calculate 75% of Your PPH
First, calculate 75% of your PPH.

Here are some examples:

1M PPH = 750,000 $HMSTR
2M PPH = 1,500,000 $HMSTR
3M PPH = 2,250,000 $HMSTR
4M PPH = 3,000,000 $HMSTR
5M PPH = 3,750,000 $HMSTR
6M PPH = 4,500,000 $HMSTR
7M PPH = 5,250,000 $HMSTR
8M PPH = 6,000,000 $HMSTR
9M PPH = 7,250,000 $HMSTR
10M PPH = 7,500,000 $HMSTR

Step 2: Divide by 100

Once you’ve calculated 75% of your PPH, divide that number by 100 to get your final $HMSTR allocation.

For example:
3,750,000 / 100 = 37,500 $HMSTR
Potential Listing Price
There’s also a rumor that Binance could list $HMSTR at $0.012 per token.

If true, let’s see what that could mean for your airdrop allocation:

37,500 $HMSTR × $0.012 = $450
While this number sounds tempting, remember that this is purely speculative and might not reflect the actual outcome.

Be cautious and always do your own research.

Alternative Airdrop Calculation
Another allocation model suggests using the formula PPH × 0.002341. This method provides a slightly different estimate, so it’s worth comparing both.

Final Thoughts
Given the speculation surrounding the $HMSTR airdrop, it’s best to cross-check any information you come across.

Stay informed, but take rumors with a grain of salt until official sources confirm the details. Always do your own research!

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Binance Will List Neiro (NEIRO), Turbo (TURBO) and

Baby Doge Coin (100000BABYDOGE) with Seed Tag Applied

🔥Hi Yescoiner, the next event is coming up soon. 🔥

https://t.me/theYescoin_bot/Yescoin?startapp=ME53d3

We’re thrilled to support and speak at the TON x HashKey Token2049 Meetup on September 18 in Singapore! 🎉

Come hear our exclusive Yescoin talk, where we’ll share exciting insights and the future of web3 gaming! 💥 Don't miss the chance to connect with industry leaders and official Yescoin!

📍 Where:2 Fusionopolis Way #15-01/02 Innovis Tower, Singapore 138634
🗓️ When: September 18, 12:00 - 17:00
✨ Register now and join the fun! t.co/73d9xaqBCo

Let’s make history together!
@HashKeyGroup @ton_society @ton_blockchain
Let’s say YES! 💎🚀
#Yescoin #Token2049 #Web3Gaming #TONCommunity #LetsSayYES

IT'S TIME, $LUMOS KNIGHTS!

King got the green light!

The next major CEX listing is confirmed!

Remember that feeling after our first listing? Get ready to relive it!

LUMOS community's dedication with strategic partnerships will bring LIGHT!

Stay vigilant, Knights!

The moon awaits!

CATI is finally launching on #Binance Launchpool!

Get ready, Catizen (CATI) is about to go live! Here’s what you need to know:

◻️ Total Supply: 1B CATI
◻️ Launchpool Rewards: 90M (9%)
◻️ Circulating Supply: 305M
◻️ Launchpool Dates: Sept 16 - Sept 20
◻️ Trading Starts: Sept 20

⚡️ Airdrop claims are coming soon, so stay tuned for updates!

THE king LUMOS have another listing coming! 🍳👑

Your King has been busy while you slept! The next grand listing has been secured, signed, and is ready to set the crypto world ablaze!

Prepare for greatness, Knights! ⚔️

Check @LUMOS on X for more info