How Can You Get Bitcoin? 

With extensive experience as an electrical/software/coding engineer along with having a diverse financial background, Thomas Wettermann’s areas of interest include Machine Learning (ML), artificial intelligence (AI), and Financial Technology (FinTech). For the past few years, Thomas Wettermann has focused on the underlying technologies that support and promote all phases of cryptocurrency ecosystems. 

How Can You Get Bitcoin? 

There are a number of ways you can get Bitcoin. First, you can buy it with money or fiat money from a cryptocurrency exchange. These exchanges will exchange your fiat for certain types of cryptocurrencies, such as Bitcoin. Popular crypto exchanges include BlockFi, Gemini, and CoinBase. 

Second, you can sell an item or service and receive Bitcoin in return. For example, a number of major companies have announced that they will now accept cryptocurrencies as a form of payment. Companies now accepting payment in Bitcoin include Tesla, AT&T, and Microsoft. 

Third, you can create new Bitcoins by mining for new coins. As noted previously, the Bitcoin network establishes a global competition among bitcoin miners who are racing against each other to mine these new coins. Successful miners earn financial rewards in the form of newly minted Bitcoins. 

Why Do People Use Bitcoin? 

Some people like Bitcoin because it represents a decentralized transaction where all transactions occur between two entities. There is no third party like a bank or a credit card company that is required to validate a transaction. There is, therefore, no third-party fee to complete this transaction. 

Personal information is not traceable for blockchain transactions. Someone viewing the blockchain can identify that a specific transaction occurred and the amount that was transferred between memory locations. However, the identity of the person or persons involved in a transaction is not identifiable. Therefore, there is no potential risk of identity theft. 

Bitcoin is now a global currency. The value of one Bitcoin coin is the same no matter where you are in the world. And importantly, no government or banking institution can directly affect the value of this global currency by merely creating more of these coins. As noted earlier, there will only be a fixed amount of Bitcoin in existence: 21 million. 

Can You Use Bitcoin to Fight Inflation? 

Inflation causes fiat currencies, such as traditional currencies like USD, GBP, or EUR, to lose their value over time. For example, today US inflation is estimated at 6.2%. So, if you hold one dollar in your pocket today, one year from now that dollar will only be worth about 94 cents. 

Unlike Bitcoin, fiat currency gets its value from a central authority, most often from a government-controlled banking system. These systems can also print an unlimited amount more of the currency which tends to devalue the currency in the form of inflation. 

Crypto backers argue that, unlike these other traditional currencies, Bitcoin is designed to have a limited supply. Bitcoin, therefore, cannot be devalued by the actions of a government or by a central bank printing too much of it. 

Therefore, unlike most fiat currencies, Bitcoin can act as an anti-inflationary currency. Similar to gold, Bitcoin will not lose its value over time. That is why some people refer to Bitcoin as “digital gold.” 

All the views expressed on this site are those of Thomas Wettermann and do not represent the opinions of any entity whatsoever with which Thomas Wettermann has been, is currently, or will be affiliated. 

Trading digital financial assets such as cryptocurrencies can carry a high level of risk, and may not be suitable for all investors. Before deciding to invest, purchase, and/or trade cryptocurrency you should carefully consider your investment objectives, level of experience, adversity to risk, and volatilities. The possibility exists that you may sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with cryptocurrency trading, and seek advice from a qualified and independent financial advisor. Thomas Wettermann is not an independent financial advisor.

 

Mirror Trading and Copy Trading: How Are They Different?

With extensive experience as an electrical/software/coding engineer along with having a diverse financial background, Thomas Wettermann’s areas of interests include Machine Learning (ML), artificial intelligence (AI), and Financial Technology (FinTech). For the past few years, Thomas Wettermann has focused on the underlying technologies that support and promote all phases of cryptocurrency ecosystems. 

What Disadvantages Does Crypto Mirror Trading Involve? 

There is not much historical pricing data for cryptocurrencies. Indeed, the seminal cryptocurrency Bitcoin was only recently introduced by way of a 2008 Whitepaper. Mirror trading performance data therefore has existed for only a little more than ten years. Given this short time frame, investors do not have much data backing up how mirror trading would perform given certain market conditions, such as a lengthy bear market. 

Having a large number of investors that duplicate or mirror a given professional trader might raise liquidity issues. For example, some types of cryptocurrencies may not be available in the necessary quantities to support the demand for a large number of mirror investors. 

In addition, with mirror trading, gains are mirrored. But losses are mirrored as well. Therefore, an investor should recognize that gains are not guaranteed. If the professional trader experiences losses, the mirror investor experiences losses as well. 

With mirror trading, buying, and selling is automatic. Investors are not in immediate control of the positions being executed within their accounts. Trades are placed automatically, no matter the present state of the crypto marketplace. Therefore, investors must place a lot of trust in the professional trader whose trades are being “mirrored.” 

How Is Mirror Trading Different from Copy Trading?

In copy trading, you identify a successful professional trader's trades and evaluate them to determine whether you want to copy them. Copy traders follow professional traders through social trading systems or social networks, such as Crypto Twitter. Professional traders use these social platforms to describe and explain their investment ideas, philosophies, and trade placements. 

Unlike mirror trading, copy trading allows you to have selective control over your investment decisions and the timing of your investment decisions. With copy trading, you identify what potential trades interest you, and then decide if and when you will place a similar trade. In contrast, mirror-trading trades are placed automatically, whether you agree or disagree with them. 

Mirror trading might suit those who have little time to investigate trades and investment options. In contrast, copy trading might suit those who have time to review trades and perform a bit of research. 

One advantage of copy trading is that you are not committed to following one particular trading professional. So copy trading allows you to experiment with different trading strategies offered by different trading professionals. 

With mirror trading, trading flexibility is usually quite limited. You are generally locked in to the particular trading style of a selected professional for the term of your mirror trading account. 

One potential disadvantage of copy trading versus mirror trading is the timing of trades. With mirror trading, your trades will take place automatically, in real time. With copy trading, you must first identify trades that you might copy, evaluate them, and then execute the trade. With the fast moving price actions of cryptocurrencies, this time lag could be a disadvantage. 

Is Mirror Trading Illegal?

No law specifically prohibiting mirror trading has been identified. Mirror trading is legal in the US as long as the investor uses a regulated broker or trading platform. However, some countries might have general crypto trading restrictions that could relate to mirror trading. For that reason, it's safest to check your local regulations before you begin mirror trading. 

In recent years, some stories of “fraudulent” mirror trading have emerged. Some of this negative press stems from the actions of the crypto firm Mirror Trading International (MTI). In 2017, it was reported that MTI was involved in a money laundering scandal. By association, some people came to believe that “mirror trading” meant fraudulent activities. 

That same year, Deutsche Bank was fined $630 million USD by regulators for trades that were referred to as "mirror trades." Again, these trades were related to laundering money through fraudulent activity – not “mirroring” the trades of an experienced trader. 

What Is the Outlook for Crypto Mirror Trading? 

Recently, the crypto market cap eclipsed an all-time high of over $3 trillion USD. And with some institutional investors projecting that Bitcoin may achieve $1 million USD per coin, interest in crypto investing will continue to grow. This is especially true among the “do it your-self investor” crowd, especially those experiencing a FOMO. These are investors who will take on investment decisions by themselves, rather than rely on the advice of an investment professional, such as a stockbroker or an investment advisor. What helps drive these investors to seek their investment independence is the emergence of 0% commission trading options. 

An “I can do this” attitude coupled with “free” trading platforms will increase demand for crypto mirror trading as digital assets are becoming more accepted in the marketplace and as potential investment options. Mirror trading allows “do-it-yourself” investors to reduce investment risks and potential investment scams by following professional traders. This may be especially important if you have little time to perfect your initial crypto investment strategies but want to maintain ultimate control over your investment decisions. 

Conclusion 

Mirror trading offers investment advantages to novice crypto investors. Before you engage in mirror trading, look into the related laws in your region. If it is not legally restricted where you live, identify a targeted mirror investment strategy. Then, research available investment options. 

To inform your decision, study the performance metrics of each mirror trading service platform. Set out an investment budget and establish a mirror trading account. Then, since your mirrored investments are automatically placed, relax and let the mirror trading account automate your crypto investment decisions. And finally, review the profitability and performance of your chosen trading account. If you are not satisfied, review your other investment options and choose a different trading professional whose results you wish to mirror.

All the views expressed on this site are those of Thomas Wettermann and do not represent the opinions of any entity whatsoever with which Thomas Wettermann has been, is currently, or will be affiliated. Trading digital financial assets such as cryptocurrencies can carry a high level of risk, and may not be suitable for all investors. Before deciding to invest, purchase, and/or trade cryptocurrency you should carefully consider your investment objectives, level of experience, adversity to risk and volatilities. The possibility exists that you may sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with cryptocurrency trading, and seek advice from a qualified and independent financial advisor.

Thomas Wettermann is not an independent financial advisor. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary of Thomas Wettermann, and does not constitute investment advice.

Thomas Wettermann will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. All opinions expressed on this site are owned by Thomas Wettermann and should never be considered as advice in any form.

 

 

HOW TO BECOME A CRYPTO INVESTOR WITHOUT PURCHASING CRYPTOCURRENCIES

With extensive experience as an electrical/software/coding engineer along with having a diverse financial background, Thomas Wettermann’s areas of interests include Machine Learning (ML), artificial intelligence (AI), and Financial Technology (FinTech). For the past few years, Thomas Wettermann has focused on the underlying technologies that support and promote all phases of cryptocurrency ecosystems. 

Investing in cryptocurrencies can be cryptic, complicated, and volatile. In addition, cryptocurrencies must be purchased through crypto exchanges and must be stored in either cold or hot storage. As such, retail investors interested in seeking crypto investment exposure often seek alternative investment vehicles that do not require investors to purchase or hold crypto directly. There are a number of such alternative investment vehicles. 

Companies That Own Cryptocurrencies

One way to invest in crypto without having to purchase currencies is to invest in companies that hold cryptocurrencies on their balance sheets. The thought being that as the value of the crypto enhanced balance sheet goes up, the company stock price will naturally follow. Publicly traded companies that currently own cryptocurrencies on their balance sheets include: 

- MicroStrategy (NASDAQ: MSTR) $7B USD 

- Tesla Inca (NSADAQ: TSLA) $1.5B USD 

- Square (NYSE:SQ) $259M USD 

- Marathon Digital Holdings (NASDAQ: MARA) $175.3M USD

Companies Active in Cryptocurrencies or Blockchain Technologies 

Another option is investing in companies that develop blockchain technologies or that are involved in cryptocurrency operations, such as mining. Exemplary companies include: 

- Bitfarms (NASDAQ: BITF) (operates blockchain computing centers); 

- Coinbase (NASDAQ: COIN) (public cryptocurrency exchange); 

 - Galaxy Digital Holdings Ltd (OTCPK: BRPHF) (crypto investment management, trading, custody, and mining); and 

 - Riot Blockbuster Inc. (NASDAQ: RIOT) (Bitcoin mining company). 

Index Funds

Rather than purchase individual corporate shares, investors seeking to incorporate crypto into their portfolio can purchase index funds. Most index funds - such as S&P 500 or total market funds - have inherent exposure to crypto related companies. For example, S&P 500 index funds include many crypto related companies, including: Tesla, Microsoft, NVidia, Visa, Mastercard, PayPal, Advanced Micro Devices, Goldman Sachs, and IBM. 

Mutual Funds

Retail investors can also purchase sector mutual funds that focus on crypto or blockchain technologies. Example mutual funds include Bitwise Ten Crypto Index Fund (BITW). This fund tracks the performance of the Bitwise 10 Large Cap Crypto Index, representing the ten most highly valued cryptocurrencies. And the Bitcoin Strategy ProFund (BTCFX) seeks capital appreciation by investing in Bitcoin futures contracts. 

Trusts

Grayscale, an asset management company, runs two investment trusts: Grayscale Bitcoin Trust (BTC) (GBTC) and Grayscale Ethereum Trust (ETHE). With these trusts, Grayscale buys, holds, and protects the cryptocurrencies so that the investor does not have to custody any coins. The Grayscale Bitcoin Trust owns the underlying assets (BTC) and sells shares to retail investors that are supposed to track the price of Bitcoin. Both trusts are publicly traded OTC (over-the-counter). 

Exchange Traded Funds (ETFs) 

ETFs track the performance of a certain industry or a sector and can be purchased on a stock exchange. Example ETFs include: 

 - Amplify Transformational Data Sharing ETF (BLOK): BLOK is the largest blockchain ETF by total assets, and invests primarily in equity securities of companies actively involved in the development and utilization of blockchain technologies, such as PayPal, MicroStrategy, and Square. 

- Siren NASDAQ NexGen Economy ETF (BLCN): BLCN tracks the performance of the NASDAQ Blockchain Economy Index, comprising stocks that support blockchain technology. 

 - First Trust Indxx Innovative Transaction and Processing ETFs (LEGR): LEGR’s largest holdings include NVIDIA, Oracle, and Fujitsu. 

Bitcoin ETFs

Recently, the Securities and Exchange Commission (SEC) approved a Bitcoin based-futures ETF. Bitcoin futures are financial contracts that obligate the buyer and seller to the contract to transact Bitcoin at a predetermined future date and at a predetermined price. The buyer must purchase, or the seller must sell the underlying Bitcoin at the set price, regardless of the current Bitcoin market price at the expiration date. For example, the ProShares ETF (BITO) offers investors the opportunity to gain exposure to returns of Bitcoin with the ease of buying an ETF in a brokerage account. 

Cryptocurrency Credit Cards

Another way to indirectly invest in crypto is to use a “crypto” bearing credit card. With these cards, purchaser’s can earn a small amount of crypto every time they use the card.  A few of the more popular cards: 

- BlockFi 

- SoFi Credit Card 

- Brex Card 

- Venmo Credit Card 

- Gemini Credit Card 

- Mastercard 

Conclusion

Investors seeking crypto investment exposure without its related purchasing and custody challenges have a number of different investment options. These options reduce some of the challenges but not the potential volatility of these coins. Therefore, with any type of investment, it is always best to investigate prior to investing in a crypto. As they say in crypto, DYOR. 

All the views expressed on this site are those of Thomas Wettermann and do not represent the opinions of any entity whatsoever with which Thomas Wettermann has been, is currently, or will be affiliated. Trading digital financial assets such as cryptocurrencies can carry a high level of risk, and may not be suitable for all investors. Before deciding to invest, purchase, and/or trade cryptocurrency you should carefully consider your investment objectives, level of experience, adversity to risk and volatilities. The possibility exists that you may sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with cryptocurrency trading, and seek advice from a qualified and independent financial advisor.

Thomas Wettermann is not an independent financial advisor. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary of Thomas Wettermann, and does not constitute investment advice.

Thomas Wettermann will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. All opinions expressed on this site are owned by Thomas Wettermann and should never be considered as advice in any form.

Control Rackets and Power Rackets

Thomas Wettermann spent over 20 years as an electrical engineer at the Mcdonnell Boehnen Hulbert and Berghoff LLP in Chicago, Illinois. At the company, Thomas Wettermann oversaw patent portfolios for many aerospace companies. In his free time, he enjoys playing tennis.

Whether you are just starting out or have been playing for a while, make sure you play with the right tennis racket. Having the right tennis racket makes your game on point and that you are as relaxed as possible. Control and power rackets are two types of tennis rackets.

Control rackets are, as the name implies, all about control. These rackets are designed to assist you in learning how to control your swing better and polish your form.

When swinging, if you have the power but are having trouble controlling your tennis racket, consider switching to a control racket. With them, you'll be able to learn how to swing with excellent control and how to swing with power and strength.

These kinds of unusual rackets aren't usually suggested for beginners, and are not the most user-friendly. They are highly recommended for individuals who are already familiar with the sport but want to improve their technique. The only objective of control rackets is to refine and enhance your abilities.

Power rackets are the polar opposite of control rackets, and they are meant to assist you in increasing the amount of power you put into each swing. It might be tough to determine how much power is good enough based on where you want the ball to go. Power rackets assist you in increasing the power in your swings and familiarizing yourself with the strength required per stroke.

Power rackets, unlike control rackets, are ideal for beginners. They are not difficult to use, and knowing your own strength is essential in tennis. Power rackets are great for anybody who is new to the game or wants to enhance their skills.