How ChatGPT can help with personal finance management

May 6, 2023 Coin Telegraph

budgeting

ChatGPT offers personalized advice on budgeting, investing, debt management, savings and retirement planning.

Managing personal finances can be a challenge for many people. With so many financial products, services and investment options available, knowing where to start or how to make informed decisions can be difficult.

Fortunately, ChatGPT can help. As an artificial intelligence (AI)-powered chatbot, ChatGPT can offer personalized advice on various financial topics, including budgeting, investing, debt management and retirement planning. By analyzing your financial situation and goals, ChatGPT can provide customized recommendations and insights to help you make informed decisions about your money.

4/ Budgeting & Financial Planning: Struggling with managing your finances? ChatGPT can provide personalized budgeting tips, saving strategies, and debt management advice, empowering you to achieve financial stability. #MoneyMatters
— Joshua Gay (@joshuagay) April 18, 2023

Whether you’re looking to reduce debt, save for a down payment on a house or plan for retirement, ChatGPT can provide valuable guidance and support to help you achieve financial stability and security.

Budgeting

Budgeting is one of the most crucial components of personal financial management. Advice and tools for budgeting can be found on ChatGPT. With the help of individualized budgeting guidance, ChatGPT can assess one’s earnings and outgoings and offer tailored suggestions for how to make and adhere to a budget that suits their needs. In order to help individuals manage their money more skillfully, ChatGPT can also suggest budgeting tools and resources, such as websites or mobile apps.

I created this with ChatGPT in under 3 minutes. I show the prompts I gave ChatGPT to create this.

explain budgeting the way a certified financial planner would

ChatGPT
Budgeting is a fundamental aspect of financial planning, and as a Certified Financial Planner, I believe it is…
— Kevin Rutherford / Let's Truck (@lets_truck) May 5, 2023

For example, if you’re struggling to keep track of your spending, ChatGPT can suggest tools and apps help you monitor your expenses and stick to a budget. If you’re unsure about how much to allocate to different categories, such as housing, transportation and entertainment, ChatGPT can offer advice based on your income and priorities. Additionally, ChatGPT can provide reminders and alerts to help you stay on track with your budget and avoid overspending.

Investment advice

Investing is a vital component of managing one’s finances. Based on one’s financial objectives, risk tolerance and other considerations, ChatGPT can advise on investments to consider.

For instance, ChatGPT can advise on the best stocks, cryptocurrencies or mutual funds to consider. ChatGPT can also suggest techniques for diversifying a portfolio of investments to minimize risk and optimize rewards.

The AI tool can also provide alerts and updates on market trends and fluctuations, helping users make informed decisions about when to buy or sell investments.

Debt management

Debt management is essential for maintaining financial stability and is often a significant source of stress for many people. ChatGPT can provide guidance on how to lower one’s debt and better manage finances.

For instance, ChatGPT can advise on negotiating lower interest rates or combining debt to make payments more reasonable if users are having trouble paying off credit card debt. One can prioritize which bills to pay off first by learning more about debt repayment strategies like the debt snowball and debt avalanche from ChatGPT.

Debt snowball involves paying off debts in the smallest to largest balance, while debt avalanche consists of paying off debts in the highest to the lowest interest rate. Both methods can be effective in helping pay off debt, but which one to choose may depend on one’s preferences and financial situation.

A few years ago, I was struggling with credit card debt on multiple credit cards.

I used a simple method (I didn’t even know had a name) to pay off this debt.

I haven’t carried a balance since.

The method: The Debt Snowball Method

This is how it works:
— Matt Viera, Esq. (@TheMattViera) May 5, 2023

Also, ChatGPT may offer advice on avoiding additional debt in the future by giving pointers on how to raise one’s credit score, manage money more wisely and refrain from overspending.

Savings and retirement planning

Personal financial management includes both saving money and making plans for retirement. ChatGPT can provide guidance on how to budget for both immediate and long-term objectives, such as retirement or a down payment on a home.

For instance, one can inquire about how much money to put away each month or which savings accounts have the highest interest rates using ChatGPT. In addition, ChatGPT can suggest methods for budgeting and saving for retirement, such as making contributions to an IRA or 401(k).

There’s a simple formula for adding crypto to your portfolio

May 4, 2023 Coin Telegraph

Coin Telegraph

What's the impact of swapping equities for cryptocurrency? Here's a formula that may help you answer that question.

Imagine coming home and opening your fridge to find a jar filled with your favorite juice. After taking a sip, you realize that the kind soul who prepared the juice added too much water, and there's not much you can do to fix it — removing water from juice is a complicated process. However, if instead the juice-maker was too stingy with water, you can simply dilute the juice with extra water and enjoy a perfect refreshing drink.

A similar phenomenon happens with the risk of financial assets. If an asset has too little risk, it is complicated to “remove water” and make it riskier, usually through leverage. On the contrary, if the asset is too risky, it is straightforward to dilute it with cash equivalents, such as short-term Treasury Bills, or T-Bills.

Crypto assets have emerged as a new asset class in the past 14 years. As they've gained popularity, debates have arisen about their role in a portfolio of traditional assets. The controversy largely stems from concerns about the level of risk associated with these assets, which is significantly higher than that of even the riskiest traditional assets.

Well, instead of complaining about the high risk, one can add some water (e.g., T-Bills) and then check how well the diluted crypto assets fit in a traditional assets portfolio. This is precisely what we did. We took three years of post-pandemic data, from second quarter 2020 until first quarter 2023, for indices representing (global) equities (the MSCI World Index), (global) bonds (the Bloomberg Global Agg Credit Total Return Index Value Hedged USD), short-term T-Bills (the Bloomberg 1-3 Month U.S. Treasury Bill Index), and crypto. The next step was to dilute crypto with T-Bills. We chose two parts crypto for three parts T-Bills, which led to volatility levels that were less than double what is typical for equities.

The grand finale is three-fold: We took all the portfolios ranging from 1% to 99% equity with the rest allocated to bonds (quarterly rebalance was used in all the simulations), which we called original portfolios; determined how much of the equity portion could be replaced by diluted crypto maintaining the same level of volatility, which led us to the final portfolios; and analyzed what happens with other relevant portfolio metrics. The chart below summarizes the results.

*Crypto final allocation and Sharpe Ratio increment. Source: João Marco Braga da Cunha*

The red line (left axis) shows how much crypto (both diluted and pure) is in the final portfolios. As expected, the more equity in the original portfolio, the more room for crypto. The straight line indicates that there is a linear relationship (technically, an affine relationship once it doesn’t cross the origin) between these two variables, which can be found by a simple regression. The regression reveals that the amount of pure crypto in any given final portfolio is determined by this formula: 0.17% plus 6.40% times the fraction of equities in its respective original portfolio. Although this relationship is based on these specific indices, there are no reasons to expect significantly different behaviors for portfolios with different allocations in equities and bonds, or even for those that also include other asset classes. So, this formula can be viewed as a general rule of thumb for juicing up a portfolio by replacing equities for crypto.

But what is the impact of swapping equities for diluted crypto? We can get some hints from the blue line on the graph above (right axis). Despite crypto's small proportion in the portfolio, there are substantial gains in risk-adjusted returns (measured by the Sharpe ratio), ranging from 0.05 to 0.25. This indicates that the final portfolios delivered significantly higher returns than their original counterparts while maintaining the same level of volatility. Additionally, the chart shows that the more crypto that is added to the portfolio, the greater the observed increase in Sharpe ratio.

Just to give more color to these numbers, we can take the example of the traditional 60% equities and 40% bonds allocation. This portfolio returned 7.6% yearly in our analysis period with annualized volatility of 11.4%, resulting in a Sharpe ratio of 0.59. Using the formula, the final portfolio has 4% in crypto (0.17% + 6.40 x 60% = 4%), 6% in T-Bills (4% x 1.5 = 6%), 50% in equities (60% - 4% - 6% = 50%) and 40% in bonds. As expected, the volatility is the same as the original portfolio, but the return grew to 10.2%, leading to a Sharpe ratio of 0.82, 1.4 times greater.

As these simulations indicate, the discussion shouldn’t be around whether there is room for crypto in a traditional assets portfolio. Instead, we should be talking about how best to allocate to this asset class. The formula above summarizes a simple approach that delivers good results. If you’re still skeptical about investing in crypto, take a glass of your preferred juice with the right concentration of water and think about it while you drink.

João Marco Braga da Cunha is the portfolio manager at Hashdex. He obtained a master of science in economics from Fundação Getulio Vargas before obtaining a doctorate in electrical and electronics engineering from the Pontifical Catholic University of Rio de Janeiro.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Ethereum up 20% in April while Markets Pro sees 379% gain in one day

April 24, 2023 Coin Telegraph

Coin Telegraph

A single Cointelegraph Markets Pro alert delivers a triple-digit winner in 24 hours for crypto traders.

Cointelegraph Markets Pro stunned traders on April 8th with a massive 379% gain from a single alert. The AI-powered crypto trading platform detects market-moving events as they happen. One of the indicators pointing to these events is the VORTECS™ score.

On April 7th, the OG Fan Token was getting ready for a remarkable rally. OG Fan Token is a cryptocurrency created for esports clubs to interact easier with their fans. In partnership with the blockchain mobile applications Socios.com, the OG esports club powered by the CHZ token aims to enhance the sporting experience. OG’s rally this week was followed by an interest spike in fan tokens like CITY and BAR.

The token was trading at $2.90 when its VORTECS™ score — a historical “snapshot” comparison between current and past market conditions for individual coins — rose above 75. Over the next 24 hours, OG’s price skyrocketed to $13.90. That’s a remarkable jump of 379%!

Five days later, traders could have captured additional gains as OG took off again. On April 13th, a VORTECS™ score of 80 lit up. Over the next 24 hours, the token saw a rapid rise of 40%.

Anyone with access to Markets Pro had a chance to capture these gains which stand in stark contrast to Ethereum’s performance so far in April. Ethereum had the historic “Shanghai Capella” upgrade allowing token withdrawals to be made from the deposit contract.

The upgrade effectively unlocked $36.4 billion in staked ETH and drove the token’s price from $1,775 at the start of April to as high as $2,132 — a lackluster gain of just over 20%.

Cointelegraph Markets Pro, on the other hand, delivered multiple alerts that led to significant gains in the underlying tokens associated with those alerts. A summary of these results are provided in the weekly VORTECS™ Report. Since March 26th a number of winning trade opportunities stand out.

VORTECS™ Alerts

Rocket Pool (RPL) — 45% gain

RPL was one of many high VORTECS™ assets this week! On April 13th a strong score of 80 was flashing when the asset was trading at $42.18. The price soon began a sharp ascent, peaking at $60.97 on April 17th! That’s an increase of 45%!

A green score of 75 also briefly flashed on April 15th when RPL was trading at $52.53. Traders who bought this price point could’ve seen a 16% gain in just 2 days!

RPL is the utility and governance token of Rocket Pool, a liquid staking protocol on Ethereum. The project is the first Ethereum staking pool that is fully decentralized.

Tweet & Trade Volume Gainers

Swipe (SXP) — 163% gain

SXP appeared on the Tweet, Trade, and Most Active On-Chain 24hr charts from March 28th-31st. At the time of its appearance on March 28th it was trading at $0.29 and on April 3rd it peaked at $0.764. That’s a whopping increase of 163%!

SXP is the native token of Swipe, a cryptocurrency wallet ecosystem that allows easy exchanges of fiat money on different transactions and trading platforms.

Trade Volume Gainers

Icon (ICX) — 76% gain

ICX topped the Trading Volume chart on April 2nd when it was trading at $0.282. Just three days later, its price rose to $0.464, an impressive increase of 76%!

ICX is the native token of ICON, a blockchain network that aims to create a digital economy in which the ICON Network hosts other blockchain-based networks.

A history of positive weekly gains

Cointelegraph Markets Pro delivered more than 204 alerts that led to double-digit gains in 2022. That is an average of four winning alerts per week and 17 winning alerts per month. This year the crypto trading platform continues to alert members to these kinds of potential winning trades regardless of market conditions.

With new upgrades to the platform, Markets Pro 2.0 now includes not only the legacy AI indicators such as — the VORTECS™ Score and Newsquakes™ alerts — but also a diversified range of new indicators including Top Exchange Inflows, Top Exchange Outflows, and Most Active On-Chain.

The additional indicators offer members of the Markets Pro community an opportunity to find more trading opportunities than ever before.

See how Cointelegraph Markets Pro delivers market-moving data before this information becomes public knowledge.

Cointelegraph is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial adviser before making financial decisions.

All ROIs quoted are accurate as of April 24, 2023…

Ethereum is going to transform investing

April 21, 2023 Coin Telegraph

Coin Telegraph

Expect to see tokenized securities proliferate in the years ahead — along with heavy investments in Ethereum staking pools.

Ethereum is often depicted as traditional finance’s adversary in a Manichean struggle for decentralization. In reality, there isn’t any conflict at all. Rather than subverting the traditional financial sector, Ethereum is improving it. Soon, the two systems will be inextricably entwined.

Ethereum’s core value propositions — self-custody, transparency and disintermediation — are enormously relevant to financial institutions, and they can be realized within existing regulatory frameworks. Ethereum has already taken the first steps toward institutional adoption, and with its unmatched network decentralization, it is all but destined to become the primary settlement layer for the world’s financial transactions.

Neutrality in a multipolar world

Ethereum isn’t here to deliver a stateless alternative currency or an anonymized shadow economy. What it offers is simple: neutrality.

Ethereum is the global financial system’s first truly unbiased referee, and its arrival couldn’t be more timely. The geopolitical stability afforded by the United States’ preeminence is eroding, and domestic politics in major economies have become increasingly volatile. In a multipolar world, the financial system urgently needs to maintain reliable rules of the road.

Ethereum’s system for settling transactions and storing data is practically incorruptible. That is largely because of the unrivaled decentralization of its consensus layer, which spans more than 500,000 validators distributed among more than 10,000 physical nodes in dozens of countries. Despite concerns to the contrary, Ethereum is trending toward greater decentralization over time, not less.

To be sure, Ethereum will never replace traditional contracts or legal authorities for mediating disputes. What it promises, with its inviolable and unbiased code, is to prevent countless disputes from arising in the first place.

Solving the principal-agent problem

From Celsius to FTX and Silvergate, the events that led up to “crypto winter” speak more to the shortcomings of traditional finance than to the failings of crypto. In each instance, the classic principal-agent problem was worsened by lax oversight and overcentralization.

Historically, the default approach to this problem has been regulation. Greater oversight is certainly needed, but Ethereum offers more foundational solutions. Trustless smart contracts and distributed ledgers can remove certain dimensions of the principal-agent problem entirely.

Soon, Ethereum and its scaling chains will permeate traditional banking and asset management. From savings accounts to retirement portfolios, virtually every investor will self-custody their assets in trustless smart contracts, and carefully regulated on-ramps will render the tokenization of fiat currencies virtually frictionless.

*Ethereum's market capitalization, 2016-23. Source: CoinGecko*

Meanwhile, investors and, eventually, regulators will insist that asset managers report fund performance using trustless on-chain oracles. In these areas, Ethereum won’t run afoul of regulations, it will reinforce them. Eventually, authorities will become as attentive to the technical specifications of smart contracts as they are to required liquidity reserves.

The future of Ethereum is not permissionless. Identity-based permissioning will be standard fare, but so seamless as to be practically unnoticeable. With the proliferation of central bank digital currencies, state censorship will be a serious concern. Laws restraining governments from arbitrarily freezing digital assets will gather significant political momentum.

In short, Ethereum has the potential to dramatically reduce private financial malfeasance, but its impact on state censorship will be more limited.

Nascent institutional adoption

Ethereum’s future may still be far off, but its building blocks are already here. Decentralized finance (DeFi) overheated into a speculative conflagration in 2021, but that frenzy of activity spurred considerable innovation. The technology now exists to create a wide array of disintermediated markets and tokenized financial instruments.

What is missing is connectivity with the broader financial system. That is the focus of an emerging class of regulated fiat-to-crypto on-ramps and custodians, such as Circle. The U.S.-based company had laid the foundation for the digital economy with USD Coin (USDC), its tokenized dollar. Circle is now building out additional critical infrastructure, such as hybrid fiat-and-crypto accounts that on-ramp directly to Ethereum and its scaling chains.

In the coming years, expect to see a proliferation of tokenized securities, starting with risk-off fixed-income assets. There will also be heavy investment in Ethereum staking pools, which will emerge as a critical strategic asset in the institutional crypto market. Other areas of focus will include on-chain financial reporting, streamlined user flows for regulatory compliance and institutional-grade tokenized derivatives.

To be sure, a recent spate of enforcement actions has cooled development activity in the U.S., but it will remain a major market for the coming wave of regulated protocols.

Tending the infinite garden

The surge in regulatory pressure on crypto, particularly DeFi, marks the end of an era. Large swaths of Ethereum’s ecosystem, especially protocols that can’t or won’t adapt to the changing landscape, will effectively be weeded out. Those that remain, however, will be well adapted to integration with the existing financial system. Ethereum’s transformative impact on traditional finance has only just begun.

Alex O’Donnell is the founder and CEO of Umami Labs and worked as an early contributor to Umami DAO. Prior to Umami Labs, he worked for seven years as a financial journalist at Reuters, where he covered M&A and IPOs.

Twitter Users to Trade Crypto Through Etoro

April 14, 2023 Bitcoin.com

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April 12, 2023 Bitcoin.com

Crypto trading vs. crypto investing: Key differences explained

April 6, 2023 Coin Telegraph

Coin Telegraph

Crypto trading and investing are often intertwined, but key differences remain between the two methods.

What are the key differences between cryptocurrency investing and cryptocurrency trading?

Despite their differences, investing and trading often come hand-in-hand. Traders can be investors and vice-versa. However, knowing the difference is still crucial, especially for those looking to start their journey into the crypto market.

So, what is the difference between a cryptocurrency investor and a cryptocurrency trader? Generally speaking, investors purchase cryptocurrencies with sound fundamentals and expect the price to rise over time. On the other hand, traders take advantage of market volatility by keeping their coins for a short period to maximize profits.

Cryptocurrency investing vs. Cryptocurrency trading

It is important to note that while both trading and investing carry a certain level of risk, investors and traders can still be differentiated based on their risk profiles. Investors are usually more risk-averse and prefer to leave their investments on autopilot; they do not worry about daily price changes as much. On the other hand, traders thrive on taking risks and must have an excellent understanding of market volatility and conditions.

What are the pros and cons of cryptocurrency investing?

The main advantages of investing in cryptocurrency are capital appreciation, hedging against inflation and lower risks than trading. Meanwhile, the primary disadvantage of investing in crypto assets is their inherent volatility.

The biggest advantage of cryptocurrency investing is the potential for capital appreciation over time. Despite fluctuations in price and market sentiment, historical data shows that, given the cryptocurrency market’s rapid growth in the past decade, one could potentially profit by being a long-term investor.

Another benefit is that cryptocurrencies can act as a hedge against inflation since their prices tend to be more resistant to market sentiment changes than fiat currencies. Investing in cryptocurrencies also carries lower risks than cryptocurrency trading since it involves a longer-term commitment.

Conversely, cryptocurrency investing can also be extremely risky due to its high volatility. As such, investors should ensure that they are well-versed in the fundamentals of cryptocurrencies and related risks before investing their hard-earned money.

What is cryptocurrency investing?

On the other hand, cryptocurrency investing is mainly concerned with buying and holding cryptocurrencies over a more extended period, hoping that one’s investment will appreciate over time.

Also referred to as “hodling,” a derivative of “hold” and “hold on for dear life,” investing in cryptocurrencies is a more long-term commitment compared to crypto trading.

As such, crypto investors are less concerned with short-term market fluctuations and pay more attention to the fundamentals of the crypto assets they purchase. Some crypto investing strategies investors employ are:

Hodl: As mentioned, hodling mainly involves buying and holding crypto assets indefinitely. The underlying principle is that cryptocurrency prices are bound to rise over time.
Dollar-cost averaging: Investors who use this approach purchase cryptocurrency in small amounts at regular intervals, regardless of market fluctuations. Theoretically, this approach helps average out prices over time and reduce the impact of volatility on one’s investment portfolio.
Value investing: Value investing involves identifying undervalued cryptocurrencies with solid fundamentals and huge potential. By buying low, investors are banking on the asset’s potential increase in value.
Growth investing: Growth investors invest in new assets that are expected to grow exponentially in the future in the hope of increasing an investor’s capital.
Index fund investing: Cryptocurrency index funds are designed to allow investors to access a wide range of digital currencies. They are structured like exchange-traded funds (ETFs) and mutual funds in that they hold a basket of different assets.

What are the pros and cons of cryptocurrency trading?

The most significant advantages of trading cryptocurrencies are quick profit generation, secure value storage, low fees and universal accessibility. Meanwhile, crypto assets’ inherent risk and volatility count as disadvantages.

The main benefit of cryptocurrency trading is the potential to generate quick profits by taking advantage of short-term price movements and market trends. Some cryptocurrency traders also value assets such as BTC as a secure store of value, especially since cryptocurrencies were designed to function independently of central institutions.

Cryptocurrencies can also be traded peer-to-peer, incurring much lower fees than transactions involving central authorities, such as banks and financial institutions. Cryptocurrencies are also generally accessible universally, allowing anyone with an internet connection and mobile device or computer to create a cryptocurrency wallet and start trading.

On the other hand, crypto trading also carries significant risks due to its high volatility — meaning prices can swing rapidly up and down. This could lead to substantial losses if traders are not careful and don’t monitor their positions.

So, is crypto trading good for beginners? While beginners can start trading small amounts as they build experience, it is worth noting that the risks associated with crypto trading are much higher than most other forms of investing, meaning that high-stakes trading may not be the most suitable investment method for beginners.

What is cryptocurrency trading?

Trading cryptocurrency capitalizes on short-term strategies, such as scalping, day trading, swing trading and position trading, to take advantage of changes in price and market trends.

Cryptocurrency trading, much like trading in other traditional financial assets, entails predicting price movements and speculating on the future of digital currencies like Bitcoin (BTC), Ether (ETH) and XRP (XRP).

Trading mainly involves “timing the market,” or buying and selling assets based on predictions about the best entry and exit points. Traders monitor market news and technical analysis indicators to inform their decisions. Some crypto trading strategies that cryptocurrency traders employ are:

Arbitrage: Arbitrage is a trading strategy that takes advantage of an asset’s price differences across various exchanges. By quickly buying and selling assets between exchanges, traders can exploit small price discrepancies to make quick profits.
Day trading: Day traders are constantly scanning the market for intraday price variations to secure daily profits, closing out their trades before nightfall. Each trade may last from minutes to several hours.
Swing trading: Swing traders capitalize on the rapid price swings of cryptocurrencies, with a trade typically lasting between one day to a couple of weeks. Swing traders use technical analysis to identify significant directional movements in cryptocurrency prices within this short period.
Position trading: Position trading is a form of trading that also leans toward investment. It’s similar to swing trading but involves extensively studying long-term trends and patterns — and typically lasts several months to a couple of years.
Scalping: Scalping is a high-frequency trading strategy that involves making multiple trades within a short period of time to capture small price movements. As the most active market participants, scalpers make rapid trades with short holding times — lasting minutes or even seconds in some cases — to “skim” a profit without incurring any substantial risk.

Cointelegraph Markets Pro’s 390% gain dwarves Bitcoin’s 33% rise

March 30, 2023 Coin Telegraph

Coin Telegraph

Cointelegraph Markets Pro alerts beat the market once again, providing seven trading opportunities based on four different asset indicators.

In Cointelegraph Markets Pro’s latest VORTECS™ Report, the institutional-grade crypto trading platform displayed how its members could have captured a cumulative 390% gain by following seven trades based on four different advanced data indicators. The report depicts trading alerts generated between March 11 – 18, 2023.

The potential gains available to Cointelegraph Markets Pro subscribers significantly outperform a simple buy-and-hold strategy during the same period, which would’ve yielded holders of Bitcoin (BTC) a 33% gain.

Cointelegraph Markets Pro uses indicators such as the VORTECS™ Score, NewsQuakes™, Most Active On-Chain and Top 5 Exchange Outflows to provide alerts for subscribers in real time.

The past three reports have included alerts with cumulative returns over 100%, showing that this advanced crypto intelligence platform churns out winning trade opportunities each week.

VORTECS™ Alerts

SingularityNET (AGIX) — 100% gain

*AGIX’s price chart after a green VORTECS™ Score alert. Source: Cointelegraph Markets Pro*

On March 12, AGIX was trading at $0.30 when a score of 77 noted bullish historical patterns for the token. Three days later the price jumped to $0.60, an impressive 100% rise! Scores above 80 also flashed on March 14, when it was trading at $0.40. Traders who bought at this price point could have seen a 50% increase.

AGIX is the utility token of SingularityNET, a decentralized artificial intelligence (AI) network on which participants create, share and monetize AI services at scale. AGIX is used for staking, governing and transacting on the network’s decentralized applications.

Radicle (RAD) — 23% gain

*RAD’s price chart after a green VORTECS™ Score alert. Source: Cointelegraph Markets Pro*

On March 8, RAD was trading at $1.64 when a score of 79 noted bullish historical patterns for the token. Nine days later the price jumped to $2.02, a 23% gain. Remember, the annual return investing in index funds is roughly 10%.

RAD is the native token of Radicle, a decentralized network for software development collaboration.

NewsQuakes™

Prom (PROM) — 64% gain

A NewsQuake™ alert immediately informed Cointelegraph Markets Pro subscribers of PROM’s listing on Binance when the asset’s price was $4.49. Just three hours later, the price flew up to $7.34, a rise of 64%!

PROM is the native token of the Prometheus network, a blockchain-based structure where users seek to communicate worldwide. The platform aims to allow the trading of any data in a decentralized manner, and users need to spend or stake a certain quantity of PROM tokens to use the services and products.

Sommelier (SOMM) — 62 gain

*SOMM’s NewsQuake™ alert and return data. Source: Cointelegraph Markets Pro*

SOMM also performed well this week, after a NewsQuake™ about its listing on Gate.io. Just three days after the NewsQuake™ informed Markets Pro subscribers of the listing, the token’s price shot up 62%.

SOMM is the native utility token of Sommelier, a non-custodial, cross-chain platform for executing actively managed decentralized finance (DeFi) investment strategies. The token is used for security, transaction fees, staking and governance.

Rocket Pool (RPL) — 24% gain

*RPL’s NewsQuake™ alert and return data. Source: Cointelegraph Markets Pro*

On March 13, a NewsQuake™ alerted Cointelegraph Markets Pro subscribers that the asset would be listed on BitPanda. At the time, RPL’s price was $36.74. The next day, the price shot up to $45.48, an increase of 24%.

RPL is the utility and governance token of Rocket Pool, a liquid staking protocol on Ethereum. The currency is the first Ethereum staking pool that is fully decentralized.

Top 5 Exchange Outflows

The Top 5 Exchange Outflows indicator, launched in Cointelegraph Markets Pro 2.0, tracks the assets being removed from an exchange the most frequently over the last hour or 24 hours. If users are removing money from exchanges, it’s possible that they are less likely to sell.

MASK Network (MASK) — 59% gain

*MASK’s position on the Top 5 Exchange Outflows chart. Source: Cointelegraph Markets Pro*

MASK was on the Top 5 Exchange Outflow chart on March 15, 16 and 17. On March 15, it was trading at $4.06 and its price peaked three days later at $6.38, an increase of 59%.

MASK is the native utility token of Mask Network, which enables users of popular social media platforms to send cryptocurrency, interact with decentralized applications and share encrypted content. MASK holders can vote on ecosystem initiatives via a decentralized autonomous organization called MaskDAO.

Most Active On-Chain

Wrapped NXM (WNXM) — 59% gain

Like all the other dashboard features, the Most Active On-Chain chart had a great week for winning alerts. For instance, on March 11, WNXM was on the chart when it was trading at $18.15. Soon after, its price began to rapidly rise, peaking on March 18 at $25.37, an increase of 59%.

Cointelegraph Markets Pro delivers yet again

Cointelegraph Markets Pro has a demonstrated history of delivering these kinds of gains on a weekly basis. Sure, the magnitude of the gains may differ from week to week, but they’re typically there — regardless of market conditions.

Additionally, the institutional-grade platform has diversified from its two original indicators: the VORTECS Score and Newsquakes™ alerts. Version 2.0 of Cointelegraph Markets Pro now includes indicators like the Most Active On-Chain and the Top Exchange Outflow, both of which provided winning trades last week.

The existence of multiple indicators is a form of risk diversification for members of the Markets Pro community. With up to seven individual indicators to choose from, members are no longer reliant on just VORTECS™ Scores or Newsquake™ alerts, regardless of their historical dependability.

See how Cointelegraph Markets Pro delivers market-moving data before this information becomes public knowledge.

All ROIs quoted are accurate as of March 30, 2023…

Primary vs. secondary markets: Key differences

March 15, 2023 Coin Telegraph

Coin Telegraph

Primary and secondary markets differ in securities, pricing, risk, volume, liquidity, timeframe and more.

Stock and crypto markets are essential components of the global financial system. These markets provide a platform for investors to buy and sell financial assets, which helps companies raise capital for investment and growth. Moreover, the stock and crypto markets play a crucial role in determining the value of an asset. The market price of a stock or cryptocurrency reflects the collective sentiment of investors about its prospects, which can impact its future growth potential.

Lastly, the stock and crypto markets can be used as indicators of broader economic trends and sentiments. For instance, swings in the stock market can indicate changes in investor perceptions of the health of the economy, whereas moves in the cryptocurrency market can be caused by changes in the law, developments in technology or changes in consumer tastes. Investors can learn more about the state of the economy, potential hazards and investment possibilities by keeping an eye on these markets.

Types of markets

The primary market and the secondary market are the two main categories of markets.

Companies first offer new securities to the public on the primary market, including stocks, bonds and other financial instruments. The primary market’s goal is to help the issuer, whether it be a business, a governmental body or another group, raise money. These securities can be bought directly from the issuer by investors, with the money going to the issuer.

On the other hand, previously issued securities are traded between investors on the secondary market. Instead of purchasing securities directly from the issuer, investors buy and sell securities that have already been issued in this market. The secondary market provides liquidity to investors, allowing them to buy and sell securities quickly and easily. This market is also important for price discovery, as the price of a security is determined by supply and demand factors.

In the cryptocurrency world, the primary market is where new tokens or coins are first offered to the public through initial coin offerings (ICOs) or initial exchange offerings (IEOs). The secondary market, on the other hand, is where previously issued cryptocurrencies are traded among investors. An example of the secondary market in crypto is the cryptocurrency exchange Binance, where investors can buy and sell various cryptocurrencies, such as Bitcoin (BTC), Ether (ETH) and others.

Buying and Selling

NFTs can be traded at a fixed price or through an auction.

Trading of NFTs always happens in 2 markets; the primary market (minting website) and the secondary market (NFTs marketplace).
— Henry Imani (@henryimani_) January 13, 2022

Primary vs. secondary markets

There are several key differences between primary and secondary markets.

Purpose

The primary market is where new securities are issued for the first time, while the secondary market is where previously issued securities are traded between investors.

Issuer

In the primary market, securities are issued directly by the issuer, whether it’s a company, government entity or other organization. In the secondary market, investors trade securities among themselves without involvement from the issuer.

Pricing

On the primary market, the price of a security is typically set by the issuer, based on factors such as market demand, supply and the company’s financials. On the secondary market, the price of a security is determined by supply and demand factors, with investors buying and selling based on their own perceptions of the value of the security.

Risk

The primary market carries a higher risk for investors, as the securities being issued are new and have not yet been tested in the market. In contrast, the secondary market carries a lower risk, as investors can evaluate the performance and stability of the security before deciding to buy or sell.

Volume

The primary market typically has a lower trading volume compared to the secondary market, as securities are issued on a limited basis. The secondary market, on the other hand, has a high trading volume, as investors buy and sell securities on a daily basis.

Liquidity

The primary market has limited liquidity, as investors cannot easily sell newly issued securities until they are listed on the secondary market. In contrast, the secondary market is highly liquid, as investors can buy and sell securities on an ongoing basis.

Timeframe

The primary market is generally open for a limited period of time, as securities are issued on a specific date or over a limited period. The secondary market, on the other hand, is open continuously, allowing investors to buy and sell securities at any time.

4 ETH staking choices that say something about your personality

March 10, 2023 Coin Telegraph

Coin Telegraph

From liquidity pools to liquid staking and “looping,” here are a few approaches you can take to ETH staking — categorized by the Chinese Zodiac.

Staked Ether (ETH), liquid derivatives — it’s a whirlygig of smart contracts and big-brain blockchain jargon out there. Nonetheless, there are a few paths through the ETH staking wilderness.

But remember, anon, as the poet Antonio Machado said, “There is no path, paths are made by walking” — which is a fancy way of saying this isn’t financial advice and make sure you do your own research.

Let’s start with the first personality type and the type of ETH staking that might be appropriate.

The Ox: Slow and steady

The ox, archetypally, has a strong, dependable personality but can be stubborn and suspicious of new ideas. If that sounds like you, you may be interested in staking directly with Lido.

Lido Finance is not only the biggest liquid staking derivative (LSD) protocol but it’s now the biggest decentralized finance (DeFi) protocol in the market in terms of total value locked ($9.5 billion) and market capitalization. Lido takes your ETH and stakes it via a team of vetted validators, pooling the yield garnered and distributing it to the validators, the decentralized autonomous organization (DAO) and investors.

In return for providing ETH to Lido, the DAO issues “staked ETH” (stETH) tokens, which are like receipts (or “liquid derivatives”) that can be redeemed for your original ETH plus the yield accrued. These tokens, along with those from other LSD protocols, such as Rocket Pool and StakeWise, can be traded on the open market.

The risks include the fact that the smart contracts holding your ETH might have an undiscovered bug, the DAO might get hacked, or one or more of Lido’s validators might get penalized by Ethereum and have some of their stake removed. All the following strategies contain these risks plus more.

The Dog: Honest, prudent and a little feisty

If that sounds like you, maybe look into auto-compounders. For example, adding liquidity to Curve Finance and then locking up the liquidity pool (LP )tokens.

When using Curve, I like to use Frax-based tokens, as the two protocols clearly have the hots for one another, and Frax pools often have the best rewards. I passed some of my ETH to Frax to stake and received their LSD called Frax ETH (frxETH).

It’s in Frax’s interest to maintain a highly liquid market for frxETH, so they run an LP on Curve, which offers up to 5.5% APY on top of the fact that your frxETH is also earning a similar yield. Nice.

But some of this APY is paid out in CRV tokens. No shade, but I would rather have ETH, so I hopped on to Aladdin DAO’s Concentrator protocol and gave them my LP tokens, which is like a receipt for my share of the frxETH/ETH pool. They do some wizardry and return 8% APY paid in the underlying assets. Nice.

Naturally, when mixing DeFi protocols into a screwy, money cake, the risks compound with the yield. Here, there are three protocols involved as opposed to one, which could mean the risk is cubed — but I’m no mathematician.

The Tiger: Sleek, sophisticated and always in control

This is perhaps the most sophisticated strategy on the list and should be considered by experienced investors with a large amount of money on the line.

Essentially, the tiger can use a similar strategy to the dog; indeed, there are many LP pools and many compounders across the DeFi world, so finding one that fits shouldn’t be an issue. The issue for tigers is how to hedge their risk.

A few options contracts might be in order. The basic approach would be to buy enough in-the-money put options to act as insurance in the event ETH takes a dive. This might be all that’s needed seeing as the risk of impermanent loss is low, given stETH tends to maintain its peg. (Those wanting to hedge against a depeg event should check out Y2K protocol over on Arbitrum.)

A more optimal strategy would be a “bear call spread,” as that will insure against depreciation but also return some profit in a sideways market.

The Frog: The airdropping Ponzi lover

The next strategy is quite popular in some sections of the crypto world. In terms of risk, it’s as about as safe as covering yourself in peanut butter and running at a horde of malicious chimpanzees.

It involves “looping,” which refers to supplying an asset, borrowing against it, swapping the borrowed money for more of the original asset, and repeating the process.

From my own research, I found a yield farm that will give you about 2% yield when you deposit wstETH (the same as stETH but with a harder peg) and allow you to borrow USD Coin (USDC) against it for 3.5% interest.

You can then swap the USDC for more wstETH and repeat the process, using a 75% loan-to-value ratio, so you don’t get instantly liquidated. If you loop this process five times, you will end up with an APY of over 13% on your wstETH, which itself is earning 5%.

Whatever your personality, it’s possible to find the strategy that works for you, and while it might sound complicated if you have your own decentralized wallet or one on an exchange, most of them can be enacted with just a few clicks. While some bearish types might decry the continuation of overly-ebullient risk-taking, I see the trend in LSDs as part of the birth of a new yield-bearing asset: ETH.

One day, stETH might even rival the traditional bond market. After all, if governments can run trillion-dollar economies essentially as derivatives of their own bond market, what are a few validator nodes among crypto friends?

Nathan Thompson is the lead tech writer for Bybit. He spent 10 years as a freelance journalist, mostly covering Southeast Asia, before turning to crypto during the COVID-19 lockdowns. He holds joint honors in communication and philosophy from Cardiff University.

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Cointelegraph Markets Pro delivers yet again

Types of markets

Primary vs. secondary markets

Purpose

Issuer

Pricing

Risk

Volume

Liquidity

Timeframe

The Ox: Slow and steady

The Dog: Honest, prudent and a little feisty

The Tiger: Sleek, sophisticated and always in control

The Frog: The airdropping Ponzi lover

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