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Tag: investment portfolio

Dollar Cost-Averaging (DCA) Explained By Team Professor

Team Professor is a group of traders with a strong belief in digital currency. A concentrated group of cryptocurrency professionals, traders, and blockchain enthusiasts from a vast range of backgrounds. Their team strives to educate each one of their clients on fundamental and technical analysis, as well as price action.

The Importance Of DCA

Dollar-cost averaging, or DCA, is a great way to get you to invest in a market as volatile as crypto. As a newbie to investing, the term was completely foreign to me, but it turned out to be very useful. 

The process is simple. Let’s say you have a fixed amount of fiat (let’s say $200) that you would like to invest in Ethereum (ETH). Instead of putting $200 in ETH in a single order, DCA it, by splitting the $200 in smaller investments over a certain period of time. This can be done at regular time intervals or regular price intervals.

For example, if the price of ETH was $2,000 at the time, you wish to invest in it. you can say, “Ok, I will invest $20 every week”. 

As an alternative, if you want to support your portfolio in a bear market, you can say, “OK, OK, so I’m going to put a limit order for $50 ETH at every $50 price intervals.” For example, $50 ETH at 2000, $50 ETH at 1950, $50 ETH at 1900 and $50 ETH at 1850. In this situation, one might ask the question “If I’m going to buy ETH for $1900. why should I buy it at a higher price when I can just sit back and wait for it to go lower?” The answer to this can be seen in the DCA ratio.

It is impossible to accurately predict how the market will perform. Yes, Technical Analysis and Fundamental Analysis can be a great resource to use when deciding on investments and trends, but in the short term, the market can be volatile and difficult to predict. you don’t know when the price will reach the desired level of $1900. It may drop to $1950 then bounce back up or never break $2000.

DCA eliminates the need to ‘time the market’ and helps you reduce the normal costs you pay for a certain period of time. It’s a great way to invest, and if done right, it will bring you good returns!

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Article By Team Professor

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Diversify Your Cryptocurrency Holdings And Buy A Luxury Condo

Mansion Global | The wild ups and downs of cryptocurrency markets have been near the top financial headlines for months, so it’s perhaps no surprise that a rapidly increasing number of luxury real estate developers and sellers are getting into the game themselves, making properties available for currencies like Bitcoin and Ethereum, and in the process, creating an attention-grabbing hook for their listings.

But the new proliferation of crypto-friendly listings may be a boon to certain buyers, as well, providing a prime opportunity to diversify a portion of their holdings from the volatile world of digital currencies into the traditionally much more stable world of real property.

“We are definitely a fan of digital assets, and the boom and bust cycles are natural,” said Amanda Agati, chief investment officer for the PNC Financial Services Group. “They are [also] one of the most volatile assets on the planet, so the ability to potentially diversify from digital into real assets like property is very attractive.”

For sellers, offering listings for cryptocurrency may significantly broaden the pool of potential buyers, given the number of investors with significant holdings in digital currencies but few liquid assets elsewhere, or even those who have more diversified portfolios but have seen their crypto holdings explode in value since this time last year. Bitcoin, for example, was valued at around $9,200 in mid-July 2020, and is now up more than threefold to around $31,500, as of Thursday afternoon. “A lot of people have created great wealth in the last year with crypto,” said Thomas Duger, vice president of sales at Elegran Real Estate, who is currently marketing a $2.595 million condo near New York City’s Gramercy Park for a seller who is willing to accept Bitcoin.

“The seller is so bullish on cryptocurrency, he thinks this is just the beginning,” Mr. Duger said.

Purchasing property in cryptocurrency isn’t necessarily the right investment move for everyone, however, and in such a new market, buyers would do well to go into transactions with a close eye on the details. Below, what to know if you’re looking to trade in some of your frothy digital currency holdings for good old brick-and-mortar.

A Prime Time to Diversify

While some cryptocurrency die-hards are content to keep their entire holdings staked on the fate of a currency like Dogecoin, other investors with significant digital assets are now strategizing around the most timeless piece of investing wisdom in any year or market: diversify.

“You’re seeing a lot of people that might have put $10,000 into Dogecoin and now they have $10 million,” said Dalton Skach, founder and CEO of Gold Gate, a luxury real estate investment fund manager that recently launched a new fund allowing buyers to invest in property via cryptocurrency. “But they also don’t have any other assets.”

And for buyers with a disproportionate percentage of their overall net worth now represented by digital currency, snapping up a condo in exchange for a portion of their Bitcoin holdings can offer a tidy solution.

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Investing 101: A Crash Course In Managing Personal Wealth And Building A Profitable Portfolio

Investing 101: From Stocks and Bonds to ETFs and IPOs, an Essential Primer on Building a Profitable Portfolio

“Too often, textbooks turn the noteworthy details of investing into tedious discourse that would put even Warren Buffett to sleep. Investing 101 cuts out the boring explanations, and instead provides a hands-on lesson that keeps you engaged as you learn how to build a portfolio and expand your savings. From value investing to short selling to risk tolerance, this primer is packed with hundreds of entertaining tidbits and concepts that you won’t be able to get anywhere else.

So whether you’re looking to master the major principles of investing, or just want to learn more about stocks and bonds, Investing 101 has all the answers–even the ones you didn’t know you were looking for.” – Amazon.com

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Investing 101: From Stocks and Bonds to ETFs and IPOs, an Essential Primer on Building a Profitable Portfolio (Adams 101)