Our Top 3 Recommendations for New Crypto Investors
Bitcoin hit a new all-time high over $61K. Its market cap surged over $1 trillion. And if you want to dive into an investment that's taking off - and is cheaper and easier than trading stocks or options... crypto is your answer
These are tiny, under-the-radar names. All three are priced UNDER $10. It's never been easier to take your shot at huge returns - without forking over a fortune on your initial stake.
A. Hi Jerry,
It’s always the easiest to convert to US dollars instead of rands when dealing with crypto.
To calculate how many CFDs you'd want to buy and risk only 2%, let's start off with some trade specifics.
Portfolio value: R100,000
Risk percentage per trade: 2% (R2,000)
Entry price: $2,000
Stop loss: $1,500
Step #1: Convert the portfolio risk in US dollars
This is the amount of money you’re willing to risk in your trade, but converted to US dollars.
The current exchange of USD/ZAR is 1 / R14.62.
Portfolio risk in $ = (2% Risk ÷ USD/ZAR rate)
= (R2,000 ÷ R14.62)
Step #2: Calculate risk in trade
The risk in trade is the price difference (in US dollars) between the entry and stop loss prices.
Risk in trade = (Entry - Stop loss)
= ($2,000 - $1,500)
Step #2: Calculate the No. Of CFDs to buy
No. Of CFDS = (Portfolio risk in $ ÷ Risk in trade)
= ($136.79 ÷ $500)
This means you'll need to buy 0.27 CFDs in this example, in order to not risk more than 2% of your portfolio.
Note: Some brokers only offer a minimum of 0.2 CFDs, so make sure you check with them or re-adjust your stop loss level.
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Q. "You mentioned in last week's Ethereum article that the crypto has more uses than just a currency. Can you provide some examples of what else Ethereum is used for?"
I've been a major optimist with the potential of what Ethereum has to offer the world.
Unlike Bitcoin which only has its purpose in buying, selling and exchanging the coin, goods and services – Ethereum has a plethora of other features and uses.
Here are five incredible uses on how Ethereum will change the world
Use #1: You can buy/sell exchange and invest Ethereum as a currency
The first use is the obvious. Ethereum is used as a digital currency to buy, sell and exchange Ether for traders and investors.
Use #2: Build your empire
Ethereum also offers a platform where you can use smart contracts for developers to build software and businesses using the Ethereum blockchain (Eth 2.0).
Use #3: Create and profit from dApps
You can also use the Ethereum block-chain as a decentralised feature to create dApps (decentralised apps) for your phone and computer.
You can build games, online stores, programmes and so on.
Use #4: Streamline your finance operations
With Ethereum you'll be offered options to create DeFi applications (Decentralised Finance) to create financial services. This will be done via different smart contracts and programmes.
And with DeFi you'll bypass many banks, brokerages, intermediaries, cut out the middle man and remove human error from these operations.
Use #5: Profit and make commissions from crypto art and digital assets
Already people have become multi-millionaires through the new technology called NFTs (Non Fungible Tokens).
You'll use your Ethereum to create, buy and sell NFTs. This is where you can literally sell your photos, images, videos, GIFs and any other digital property for a profit and earn commission at the same time.
And with all these options to get involved with Ethereum, there's a huge demand for this crypto coin.
Which could send the price to the moon!
That's why I'm super bullish for Ethereum. To learn more about Ethereum and other alt coins that are super-hot, go here
Analyst, Red Hot Storm Trader