The original post: /r/cryptocurrency by /u/Shiratori-3 on 2024-11-22 14:33:59.

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Quick Take

• The UK Labour government will unveil a comprehensive cryptocurrency regulatory framework in early 2025, aiming to simplify oversight and address key areas like stablecoins and staking.
• The UK’s plan to release its crypto framework next year reflects a global race to regulate the industry, with other jurisdictions, such as the EU, already advancing strategies to attract innovation and economic opportunities.

The original post: /r/cryptocurrency by /u/craly on 2024-11-22 14:20:51.

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I have been a fan of crypto for a long time and i have liked the idea of it, but finding places were it make sense to spend crypto instead of fiat has been hard. For crypto adoption take off we need usecases were using crypto has an advantage over fiat. Personally i think NanoGPT might be the best actual usecase in crypto. It combines crypto payments and access to the best and most up to date AI technology for generating text and images all gathered in one place. Its kinda like Spotify, except its for access to AI and you don't need to pay a subscription, you can just insert a small amount of crypto and you can pay-per-prompt. 

It's pretty much the only thing I actually use crypto atm. You can access ChatGPT, Claude, Grok, Perplexity, uncensored models, literally all the models, and all the image models too, and pay with crypto.

They accept BTC, SOL, USDC, Nano, BCH, LTC, BASE, Arbitrum, DOGE, most coins you can think of, and minimum is just $0.10. Plus the payment integration is really good for every chain. I have mostly used it with LTC, Nano and Monero.

It's utility that you can't get with traditional money because the fees are too high, you can pay with crypto and be totally anonymous and private, and it's the one thing that I want to use not because it takes crypto, but because i don't need to pay for a monthly subscription to Open AI, Google and Meta etc, to get access to their best AI/LLM.

How is this not a bigger thing?

Here is the link if you are interested in checking it out. If you have only been holding crypto and never spent it i feel this is a good opportunity to finally take the step and try using the technology we all hope one day is gonna be accepted worldwide.

https://nano-gpt.com/

 

The original post: /r/cryptocurrency by /u/lewkir on 2024-11-22 14:09:27.

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My friend has a fairly large sum of crypto in Binance that they'd like to withdraw into their UK bank account, however, Binance is not regulated in the UK so we are not allowed to withdraw from it.

Their only other wallet is Coinbase which for some reason has been blocked from withdrawing. (they will not explain why, their wallets were empty there for a while so possibly it was because of a sudden transfer of a fair amount of crypto in their last attempt to withdraw)

Is there a way to get at this money? It seems mad to be so blocked from accessing your own funds.

They're worried that if they open a new account with a different vendor it'll look suspicious when suddenly 100s of pounds of crypto come in and are instantly withdrawn, even though it was all acquired legitimately, possibly triggering the same issue as with Coinbase.

The original post: /r/cryptocurrency by /u/Extreme_Nectarine_29 on 2024-11-22 13:58:58.

The original post: /r/cryptocurrency by /u/Hookahista on 2024-11-22 13:30:31.

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Some of you are new, a lot of us are not.

And those who aren't experienced it, the euphoria, the denial, the despair, all if it. Many even multiple times.

On past cycles people missed out on their gains simply because they refused to take any profits, or even worse others became victims of the inevitable shakeouts that are bound to happen sooner or later or had to sell during the bear due to unexpected IRL situations.

In the best case you HODL'd through the bear, potentially growing your bag by DCA'ing in and staking but even then there are alot of people whose alts might never reach their previous ATH's or their cost basis.

And yes you might think to yourself "This won't happen to me" and you can try to time the market but 99% of us will miss the boat because when it inevitably goes to shit, it happens so unexpectedly that you will be hesitant, you will be questioning yourself and the question of "is this just a shakeout attempt or is it real?" will bite itself so deep into your head that by the time it's over your gains are gone.

Remember wyckoff is as inevitable in crypto as it is in stock trading, and while neither i nor most others can tell when, the whales will dump on us trying to scoop up our unrealized gains.

So for plebs like us taking incremental profits on the way up with sell limit orders while preventing major losses with stop loss orders is a good way to not miss out.

And whether you reinvest the gains of your partial portfolio sales back into crypto, relocate them into ETF's, stocks or buy yourself the lambo you always wanted is up to you.

And as always don't get scammed and listen to nobody... that includes me.

The original post: /r/cryptocurrency by /u/Tasty-Meringue4436 on 2024-11-22 12:19:56.

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Hi, what are your points for holding altcoins like ETH in particular alongside BTC in the long term? BTC is unique in its kind, ETH, SOL... not. Are smart contracts, DAOs and DApps really the big thing for you? If companies use blockchain technology, you can still profit from them through shares? I understand the sense/purpose and structure of BTC, but not really the rest. What will make the altcoin sector look better than BTC and stocks in a few decades? BTC maximalists have a clear vision of the future, I haven't heard anything like that from ETH Maxis. I am not interested in short to medium-term prices, but in the long term and fundamentals. I'm looking forward to your suggestions, because I really lack a lot of knowledge here.

The original post: /r/cryptocurrency by /u/InnerFifth on 2024-11-22 11:35:49.

The original post: /r/cryptocurrency by /u/BigRon1977 on 2024-11-22 08:21:20.

The original post: /r/cryptocurrency by /u/Antlia303 on 2024-11-22 06:13:41.

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Back in the last bull market i feel like the whole crypto thing wasn't really taken seriously you know? i mean we still have the memes and all of that, but i feel like the market as a whole grew and became more mature, 4 years ago the media still thought of bitcoin and crypto as a "joke" or just a bubble, but it became so much more...

If the crypto community keeps maturing like that, more than just a way to make money, the idea of using it as actual currency on a daily basis gets really closer to reality and thats quite exciting

The original post: /r/cryptocurrency by /u/goldyluckinblokchain on 2024-11-22 14:12:40.

The original post: /r/cryptocurrency by /u/InclineDumbbellPress on 2024-11-22 14:05:41.

The original post: /r/cryptocurrency by /u/retrievedFirered on 2024-11-22 13:24:20.

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Recently my exchange made a survey where most people believe that Btc will Top at 120-150k. I assume most people think it will only 2-3x compared to last cycle because of law of diminishing returns and it barely did a 3,5x last cycle.

However i believe that Btc will go much higher this cycle for the folowing reason

The last cycle was suppressed by Ftx taking all the customer funds and not investing it into Btc. If Ftx actually did their job instead Btc would have surpassed 100k last cycle already. So i believe a 5-6x would have been the correct increase without the Ftx fraud. From 100k the top could increase by 3x-5x to 300-500k while still following law of diminishing returns.

Thus my prediction will be:

• Btc hits 100k and gets some mainstream attention

• Btc hits 150k-175k and a lot of seasoned Investors will cash out due to law of diminishing returns.

• Btc grows further past 250k, beating the law of diminishing returns

• Btc gets massive mainstream attention and talks of a supercycle and it reaching 500-1000k this cycle become mainstream. Lots of new retail investors and people who cashed out earlier reinvest

• Btc hits its top somewhere between 300k and 500k, before bottoming between 90k-150k

The original post: /r/cryptocurrency by /u/jam-hay on 2024-11-22 11:58:37.

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When the market is going vertical and the greed barometer is almost at full, I think it's more important than ever to play devil's advocate. I feel there's always a notion from cynics that somehow everyone in crypto is blind to potential risks and pitfalls. Many suggesting that someday everything will implode and go to zero. Bitcoin is coming up for its 16th birthday and Ethereum it's 10th, they've already surpassed the expectations of doomsayers many times.

The road to mainstream crypto adoption has never been simple or a straight-line. Around every corner lurks a China ban, Mt Gox/ FTX collapse, there is always something to test those diamond hands and balls of steel. The disruption of any market never been simple and hurdles should always be expected.

So what do you see as the potential short-term risks?

For me it's potentially an investigation into Tether, that Donald Trump doesn't follow through on his promises or worse there's another assassination with a different outcome, or the fact that Coinbase continues to be so central especially as a disproportionate custodian for major corps/ ETFs, or that MicroStrategy goes so hard the wheels come off somewhere along the line. Again these are just potential risks I see, not that I'm saying they will happen just that they could be a short-term risk in someway. It would be good to know what others think in the hope it helps to somehow alleviate them in the future particularly if the US does become crypto friendly I think it could be a real force to eliminate them early and make crypto stronger more quickly in the long term. Iron these things out and everyone could really benefit.

TLDR

Many Crypto cynics often think those in crypto don't see/ accept risk. I believe most do, it's just we don't think it will end all crypto forever. Playing devil's advocate, what do you see as potential short-term risks now the market is hitting all-time highs?

The original post: /r/cryptocurrency by /u/nobjos on 2024-11-22 11:51:51.

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Scottie Pippen, who is in the NBA Hall of Fame, tweeted the following on Sep 4th:

https://preview.redd.it/qi9x6niwwf2e1.png?width=528&format=png&auto=webp&s=d4901c836e99762fbb3aaeaa37a0bfbb7ca2ebfc

While we can all wish Nakamoto to give us stock tips in our dreams, a more realistic strategy would be to Dollar Cost Average (DCA) into crypto.

The good news is that a lot of investors are doing that — According to the report from Kraken:

• 59% of crypto investors use DCA as their primary investing strategy
• 83% have used DCA to make their investment
• The most common reason for DCA was to hedge against market volatility

The bad news is that, unlike stocks, crypto markets are relatively new, and there is little information about how a DCA strategy performs over the long term. In fact, the market is so nascent that Coinbase launched a crypto benchmark (comparable to, say, the Dow or S&P 500 for the crypto world) just last week.

The Crypto Universe

Here is a wild stat: only ~4,300 publicly traded companies are in the U.S., but more than 15,000 cryptos are actively trading right now.

Of the more than 40,000 coins that traded in an exchange at least once in the last 10 years, only 38% are still alive. So forget about making a profit — the probability that the coin you buy will survive over the long run is only ~ 1 in 3.

Total number of coins: 40,399 | Source: Market Sentiment Research, CoinGecko

What’s fascinating is that Cryptocurrencies follow the exact same power law exhibited by the stock market, where a few winners contribute massively to the overall market. As of Nov’24, the global crypto market cap was ~$2.9 trillion, of which $1.7 trillion (60%) was contributed by Bitcoin.

The top 10 coins contributed to a whopping 89% of the total crypto market. (For comparison, the top 10 companies in the S&P 500 only contribute around 30% of the index)

https://preview.redd.it/s6h5erp0xf2e1.png?width=1116&format=png&auto=webp&s=5eef8c846cd0af095b8fb5bbf24df620dfbb59b9

Bitcoin: DCA vs Lump Sum

The simple fact is that most of us cannot handle the volatility associated with Bitcoin.

Take a look at this fantastic chart put together by my friend at Ecoinometrics

Crypto Drawdowns as of Oct’22 | Source: Ecoinometrics

Holding a crypto portfolio makes the Global Financial Crisis look like a walk in the park. So, it’s natural to consider DCA as a better strategy to invest in crypto.

So, does it work?

The backtest is simple — Let’s assume that you had $100 to invest in Bitcoin every month. Either we can invest $100 every month or put $1,200 at the beginning of the year.

Here’s how your portfolio would have performed by the end of the year:

Analysis: Market Sentiment Research | Data: CoinGecko API

If you invested a lump sum into Bitcoin instead of DCA, you would have come out on top ~66% of the time. Since Bitcoin has extreme volatility, DCA outperforms only during drawdowns.

Case in point — 2018 & 2022. In both bear markets, someone who did DCA would have had a much lower drawdown than someone who invested a lump sum at the beginning of the year.

On the other hand, the same safety mechanism that helps you during bear markets will cost you during bull runs. In the 2017 Bitcoin run-up, the lump sum strategy outperformed DCA by an incredible 700%!

DCA outperformed Lump Sum in 35.43% of the 12-month periods | Rolling 12 months 2013 to 2024 | Source: Market Sentiment Research | Data: CoinGecko API

So, if you have a relatively long holding period (at least 12 months), investing in one go is statistically better than splitting it across the year (Given you can stomach the volatility).

Building a Crypto Index

While Bitcoin is synonymous with Crypto, investing in only Bitcoin seems reckless and entirely against the whole “have a diversified portfolio concept”. So, what if instead of just investing in Bitcoin, we split our investments across the top 10 Cryptocurrencies based on market cap?

Before we jump into the results, here is a visualization of how the Crypto market has changed over the years (I have removed stablecoins).

https://www.youtube.com/watch?v=I5amDzCTwIU

In this backtest, instead of investing $100 per month into Bitcoin, we equally split our investment into the $10 across the top 10 Cryptocurrencies (as seen above in the video) based on their market cap.

The results are stunning:

• $100 invested monthly into the top-10 cryptocurrencies starting in 2014 would have grown to $650K+ by 2018 and an incredible $1.6M+ by 2021.
• The top-10 portfolio had a CAGR of 111% (yeah, not a typo) over the last 10 years - And irrespective of the year you started, you beat S&P 500!
• Even with all this, the Bitcoin-only portfolio gave a better risk adjusted return.

https://preview.redd.it/ii9rph5gxf2e1.png?width=1272&format=png&auto=webp&s=0c3662e39944a84c127e85bc1193af6ab5baea6b

Source: Market Sentiment Research

What’s interesting is that, after 10 years, both strategies have comparable final portfolio values ($1.02M for Top 10 DCA & $950K for bitcoin DCA). This mainly comes down to alt-coins having extreme drawdowns during bear markets.

While the top-10 strategy beat bitcoin-only strategy, it did so with a much higher portfolio volatility. Case in point — after the run up in 2018, your top-10 portfolio would have had a drawdown of 94%! This extreme volatility meant that a bitcoin-only portfolio provided a better risk adjusted return.

Even though both portfolios had incredible performance, crypto was barely a known asset in 2014. What if you had started late? Would your returns be significant enough to follow this strategy?

Buy & Hold Portfolio returns | Source: Market Sentiment Research

No matter which year you started, both portfolios provided significant ROI and beat the S&P 500 by a wide margin.

Why diversification wins during bull markets:

In stock market, concentrated bets are more likely to provide better returns since market cannot move so much. But given the relatively small size of the crypto market, there are benefits to splitting your investments.

To explain the outperformance of the top-10 portfolio, let’s take the example of Ripple (XRP). Ripple was the third largest coin at the beginning of Jan 2017 — But it only had a market cap of $240 million.

2017 was incredible for the crypto ecosystem. The overall market cap jumped by 25 times. But when you look closely,

• Bitcoin — 12x in 2017
• Ripple — 262x in 2017

https://preview.redd.it/1p75m3rmxf2e1.png?width=676&format=png&auto=webp&s=69d9d01b6cca9ec5a9e4299ea147f59b44d6579f

Extrapolate this across other coins and you can see how holding alt-coins can be valuable during bull markets.

Tokenized ETFs

With the launch of Coinbase 50 Index, we are hopeful that more and more players will move into this ecosystem to bring low-cost index funds to the market. Right now, the only comparable and established option is the Bitwise 10 Crypto Index Fund which invests in the top 10 cryptocurrencies based on market cap.

While the fund has a 5-year CAGR of 45%, it’s hard to recommend it given the extraordinarily high expense ratio of 2.5%. The optimal strategy would be to get in now to get exposure and shift to future funds having a lower expense ratio once the market matures.

Optimal Allocation to Crypto

Since asset allocation is the most important decision in investing, it’s interesting to see how much of your portfolio you should allocate to crypto.

Analysts at Quantpedia created an equal-weight portfolio of globally diversified asset classes, including Bitcoin, and used the Markowitz model to find the optimal allocation to Bitcoin.

They split their analysis time periods into 2:

1. 2013 to 2017 — Bitcoin was an...

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Content cut off. Read original on https://old.reddit.com/r/CryptoCurrency/comments/1gx62ay/the_ultimate_crypto_dca_strategy_i_analyzed_40000/

The original post: /r/cryptocurrency by /u/DaRunningdead on 2024-11-22 11:18:57.

The original post: /r/cryptocurrency by /u/gapmunky on 2024-11-22 10:09:03.

The original post: /r/cryptocurrency by /u/Odd-Radio-8500 on 2024-11-22 10:00:34.

The original post: /r/cryptocurrency by /u/Every_Hunt_160 on 2024-11-22 09:54:12.

The original post: /r/cryptocurrency by /u/sadiq_238 on 2024-11-22 09:05:56.

The original post: /r/cryptocurrency by /u/Extreme_Nectarine_29 on 2024-11-22 09:01:22.

The original post: /r/cryptocurrency by /u/hiorea on 2024-11-22 08:47:53.

The original post: /r/cryptocurrency by /u/radicalcheeseman on 2024-11-22 08:41:54.

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I’ve been sort of trading here and there barely just short profits from day trading, no long term investment. Ive thrown in 100 as I’ve been studying the market the past few months and I’ve been wondering if it’s now a bad time to enter BTC or to find an alternative altcoin?

I started researching a lot more heavily in the past two weeks and that’s why I sorta threw a little bit in to see where it might take me long term. It’s not a big amount so I can begin to understand risk management if I’m going to toss a bigger amount in at a later date.

Watching charts and percentages I did throw some in about a week ago but got worried and drew myself an imaginary line of invalidation, and have in fact missed out on a very steady increase upwards over the past couple weeks.

I’m glad though I have enough understanding of risk management (or atleast I hope I do) this early that at any sign of profit I sell as I fear it will immediately plummet leaving me with a loss, which in my eyes a loss is a loss no matter how you look at it, so I do it without being greedy in a sense which leads me to ask if this the right outlook to have?

I feel I’m beginning to understand enough but would like second opinions on how to go about this without potentially being a dumbass.

The original post: /r/cryptocurrency by /u/squareboxrox on 2024-11-22 07:20:39.

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He had his other wallets buy first, then pretended to look for a coin and typed his own after a while, afterwards ignored everyone in the chat and was pretending to look for another coin to invest in, then boom. Stream ended and his other wallets profited. Stream ended a few minutes after the spike. He stalled for a while in the video while they set everything up. It's too obvious.

Happens at 17:05

https://x.com/i/broadcasts/1ypKdpYljlNKW

https://preview.redd.it/u8jt1u14me2e1.png?width=1227&format=png&auto=webp&s=13c056b8121beaf3c0701f903ba252c7bff39c16

The original post: /r/cryptocurrency by /u/sowhatidoit on 2024-11-22 05:25:52.

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Hello r/CryptoCurrency

I want toget into the crypto space (yes, partly because of all the hype) mostly because I've been thinking about it for a long time. I'm not trying to time the market clearly as BTC is reaching an ATH.

I understand that the crypto space is very different from the traditional stock market, so I look at this as a risk-seeking investment.

I'm not trying to get rich quick, but I do want to experiencing buying some crypto.

So my question to you is that if you had 5k USD to buy a few different coins, what would you buy?

Edit: Wow! This is my first time interacting with this community and I must say thank you to everyone! I did not expect this sort of response. Looks like I have a lot to learn, so the 5k stays put and I learn all about how to acquire and setup a hardware wallet, along with DCA (had to google that!). This community is pretty cool :)

The original post: /r/cryptocurrency by /u/Odlavso on 2024-11-22 03:44:13.