Business

Do’s and don’ts of cryptocurrency trading: what every investor should know

Published

2 years ago

July 1, 2022

The evolution of cryptocurrency – A brief history

When it comes to the crypto industry, money attracts money. But it is, however, not as easy as it sounds.

With more than 220 million crypto-asset users in June 2021, as Statista shows, there is no doubt that the crypto market is having a real moment. But crypto can also be very tricky, and if you do not have the necessary preparation before embarking on this arduous journey, you are likely to lose large sums of money. To understand crypto, you need to understand first the technology behind it – blockchain technology. This allows individuals to hold sets of information safety due to decentralization and cryptographic hashing. Dealing with the risky but fascinating crypto market can be challenging, particularly if you do not know much about this domain.

But you do not have to worry: there is a start for everything. Moving into this space can be a pleasant experience if you get familiar with some good practices. But you also have to be well aware of the common mistakes made in trading. That is why we have rounded up a list of the main do’s and don’ts of crypto trading, so keep reading to find out what it is all about.

DO your research

Before starting the game, you need to have a fair idea of the cryptocurrency market. We know that it might seem overwhelming (and we will not lie to you; there is a lot to learn), but if you start with baby steps and get informed first about the basics and then dig into the subject, there is no way to fail. Take the necessary time to get in the picture of cryptocurrency: learning the fundamentals, researching the market, reading the recent news about the industry, and educating yourself on the various dynamics that lead to a profitable and safe trading environment. You cannot prevent a loss, but you can constantly work on relating to the market movements so that you can be prepared to deal with the unexpected.

Even after starting operating in the crypto market, make sure you always read a crypto’s whitepaper before investing in it. It would help if you determined the best crypto you can start with, the exchanges or brokers you want to use, and the wallets for depositing your digital coins. Wallets, for example, are either online or offline (“hot” and “cold” wallets), so think about what variant would best compliment your needs so that you can make the right decision.

DO plan your budget

There is one well-known principle when it comes to crypto: do not invest money that you cannot afford to lose. Thus, plan your budget carefully before taking the crypto route to avoid surprises coming afterward. If you are disposed to take the risk and know that you will not miss the potentially lost money, then good for you – there are lower chances of taking it personally and falling into the trap of emotional distress.

However, you should never place your economic stability at risk, whatever your financial possibilities. Even the most experienced traders care about their budget in advance, so consider how much you are willing to invest before entering the crypto market.

DO have a strategy

The #1 rule when talking about crypto is never trading without a well-thought plan in place. You surely heard about people who made millions from crypto, and you may want to follow their strategies, but the recipe for success is not always the same for everyone. Thus, you should work on your own strategy, and this is possible only if you study the market. Firstly, you have to determine the technical indicator(s) that best suit(s) you – RSI, MACD, EMA? Then, decide on your ideal profit target. You can start with a 2:1 ratio and, as you gain more confidence, move to 3:1. Ask yourself if you need a trading bot or if you want to trade long-term or short-term; you have to clarify all this before entering the game.

DON’T follow social media hype blindly

Social media may be helpful, but when it comes to research on trading, you should not make it a leading source of information. Even if it is hard to believe, there are a lot of trading “gurus” out there who claim to be experts in this field, but the truth is that most of them have their interests. Besides, you are the only one who can determine the best trading strategy based on your particular needs. That is why we recommend staying away from unofficial and unverified sources of information, mainly when talking about such a huge movement. You can find on social media personalities that share their opinions on the various cryptos available or make predictions regarding prices; ignore them. If you are wondering what is the price of Ethereum, for example, check it on official websites like Binance, Coinbase, or CoinDesk.

DON’T plunk down large sums of money

As a crypto trader, it is imperative to understand your risk-reward acceptance level, but even so, you should be careful not to spend too much, especially if you are a beginner. If you are thinking about trading Bitcoin, which is also the most famous cryptocurrency at the moment, do not jump into large sums. So, instead of buying $2,000 in bitcoin, begin with $500. All this time, do not forget to constantly check the crypto’s volatility. If it’s moving up, add another $500 and so on. But do not make sudden movements and invest in cryptos you know nothing about. The market abounds in digital coins, but most are still in the early stages or unknown. Or, instead of investing in such popular cryptos, take your time to research other growing assets with a pattern of a constant upsurge in market value.

Other important do’s and don’ts are:

DO watch out for the dips
DO learn to diversify
DON’T choose cryptos you haven’t researched
DON’T trade without a stop loss

Do you find these insights helpful? We hope so. Remember that trading will no longer seem daunting once you know these rules.

World

New Class-Action Lawsuit Accuses Rivian of Making Materially False and Misleading Statements

Published

9 hours ago

April 25, 2024

Manoj Nair

New Class-Action Lawsuit Accuses Rivian of Making Materially False and Misleading Statements

Electric vehicle manufacturer Rivian has been slapped with a lawsuit which alleged that the company misled the investors with false claims regarding its business, operations and prospects.

The class-action lawsuit made a number of allegations which included overstating the demand of its Electric vehicles and also not making it clear how it will handle the negative and near-term macroeconomic impacts.

The lawsuit also revealed that Rivian’s business was experiencing reduced demands as well as increased customer cancellations precipitated by inter alia, high interest rates.

The orders had significantly reduced and this has significantly reduced the profits and the manufacturing of vehicles in 2024.

Rivian Faces New Class-Action Lawsuit Alleging Deceptive Statements

The lawsuit also alleged that the Company’s public statements were materially false and misleading at all relevant times.

Rivian’s stock, like all other EV startups, has been tanking and this has angered the investors who saw a major portion of their investments eroded and a number of law firms like Bernstein Liebhard LLP announced this week that it has filed a securities class action lawsuit on investors’ behalf.

The lawsuit stated that the EV manufacturer had violated the Securities Exchange Act of 1934 and has asked investors who had bought shares of Rivian Automotive, Inc. between March 1, 2023, and February 21, 2024, to join its suit.

The company’s stocks have fallen and one of the primary reasons was the high interest rates. Rivian’s products are beyond the reach of an average income household.

Also Read: Prime Hydration Faces Lawsuits Claiming Its Sports Drink, Prime Energy, Contains PFAS and Excessive Caffeine

The Rivian’s Electric vehicles target customers were wealthier clients and the spurt in order cancellations means this class is walking away from Rivian’s product.

The stocks of the company were popular for the investors but the reduced demands caused by higher borrowing cost have hit its stock prices badly.

The price war has also affected the EV sector and the company also with its competitors like Tesla has been uniformly affected.

The EV sector marked value has tanked by more than 57% year-to-date.

The chance of a fall in interest rates is not expected since the Federal Reserve will not lower the benchmark interest rate since it could lead to a bout of hyperinflation.

Also another factor which will discourage the Federal Reserve to lower interest rates is the soaring energy prices caused by the war in Ukraine and the Middle East.

Also Read: Lawsuit Claims Kennywood Concealed Steel Curtain Closure to Boost Sales

World

Lawsuit Claims Kennywood Concealed Steel Curtain Closure to Boost Sales

Published

13 hours ago

April 25, 2024

Manoj Nair

Lawsuit Claims Kennywood Concealed Steel Curtain Closure to Boost Sales

Kennywood’s Steel Curtain roller coaster will not be available this 2024 season, and this has miffed a Kensington man to the extent that he has filed a lawsuit against Kennywood and its parent companies, alleging that the officials had known this fact long before but withheld it to boost season pass sales.

Lawsuit Against Kennywood

The lawsuit, filed in the Allegheny County Common Pleas Court by Joshua Miller and his attorney, John A. Biedrzycki III on Monday, alleges that it was a deliberate attempt to hide the fact to accrue financial benefits by boosting season pass sales.

The lawsuit alleges that Kennywood has created advertising campaigns targeting consumers like Mr. Miller and others to purchase the 2024 season pass under the belief that the benefits included myriad park attractions, including the Steel Curtain.

In the lawsuit, it was revealed that Mr. Miller bought his season pass under the assumption that all rides would be operational.

However, on April 17, three days before the park opened for the season, it was revealed that Steel Curtain would be closed for the season.

The announcement was made by Ricky Spicuzza, the park’s assistant general manager, and the reason for the closure was cited as the coaster undergoing an “extensive modification project.”

Ricky Spicuzza said,

“We understand the frustration many of you have felt not being able to experience the Steel Curtain. On behalf of our entire team, we absolutely share that frustration with you.”

However, the lawsuit contends that the fact was known long before last week that the 220-foot-tall coaster would be out of commission.

The lawsuit states,

“The company withheld this information from season pass purchasers so as not to lose season pass customers, or, alternatively, so as not to offer a discount on season passes due to the unavailability of the Steel Curtain.”

The lawsuit also details numerous violations of the state’s unfair trade practices and consumer protection law. This includes failure to disclose the Steel Curtain’s closure with the full knowledge that the consumer believed that it would be functional for the 2024 season.

The park offered varied passes, which ranged from season passes priced from $109.99 to $239.99.

The lowest endowed pass was the bronze pass, which provided unfettered admission except on certain blackout dates.

The premium range included the platinum pass, which offered year-round admission to Kennywood, Sandcastle, Idlewild, and Palace Entertainment’s Dutch Wonderland in Lancaster.

Additionally, it also offered free parking, discounts on food and retail, and three free guest tickets.

Also Read: Prime Hydration Faces Lawsuits Claiming Its Sports Drink, Prime Energy, Contains PFAS and Excessive Caffeine

World

Prime Hydration Faces Lawsuits Claiming Its Sports Drink, Prime Energy, Contains PFAS and Excessive Caffeine

Published

1 day ago

April 24, 2024

Manoj Nair

Prime Energy, the sports drink from Prime Hydration, has been hit by a number of lawsuits for containing excessive amounts of caffeine and PFAS. Another lawsuit was filed on April 8 in the Southern District of New York, accusing Prime Hydration, the parent company which manufactures the sports drink, of engaging in misleading and deceptive practices.

Prime Hydration was founded by two Logan Paul and KSI in 2022, and the products became very popular thanks to the huge followings of the YouTubers. However, the company is now facing a slew of lawsuits over the ingredients in their energy and sports drinks.

New Lawsuit Against Prime Hydration

The latest lawsuit, filed on April 8, accuses the company’s 12-ounce energy drinks of containing 215-225 milligrams of caffeine, exceeding the permissible limit of 200 milligrams. The lawsuit was filed by Lara Vera, a resident of Poughkeepsie, New York.

The lawsuit details that the plaintiff had purchased Prime’s Blue Raspberry products on numerous occasions in August 2022 for about $3 to $4 each, unaware that the products contained caffeine beyond the permissible limits. The plaintiff is seeking damages of $5 million from the company. Lara Vera’s lawsuit alleges that Prime advertised 200 milligrams of caffeine, which is equal to six Coke cans or two 12-ounce Red Bulls. One Red Bull can could contain 114 milligrams of caffeine.

Also Read: Johnson Controls subsidiary Tyco Fire Products to pay $750 mn to settle ‘forever chemicals’ lawsuit

The suit also alleges that there are no safe limits of caffeine for children and that caffeine has been indicted for causing tachycardia, headaches, convulsions, tremors, upset digestion, and adversely affecting mental health.

Earlier, Senator Charles Schumer, D-N.Y., had asked the Food and Drug Administration (FDA) to investigate Prime energy drinks in 2023 after reports that the products contained high levels of caffeine. The Senator also accused the company of using vague marketing tactics focused on young people, influencing parents to buy the caffeine-laced drinks for their kids. The lawsuit by Vera also quotes the Senator’s call to the FDA.

Prime is also facing another lawsuit filed on Aug. 2, 2023, in the Northern District of California by the Milberg law firm on behalf of Elizabeth Castillo and others. The lawsuit charges Prime’s products with using flavors containing PFAS, or “forever chemicals.” Forever chemicals are a class of chemicals that are not degraded in the human body or nature and have been indicted as a carcinogenic substance. Independent third-party testing has confirmed that Prime Hydration grape flavor contained PFAS.

Also Read: California mother files lawsuit against Tesla after her 2-year-old child starts Model X and runs over her