Recently approved spot bitcoin exchange-traded funds (ETFs) are likely to divert investor interest and trading volume away from centralized exchanges (CEXs), according to Anthony Bevan, CEO of the wealth management firm Blockguard. Bevan, a full-time trader and investor, added that spot bitcoin ETFs are likely to attract investors who are keen on "more regulated and mainstream investment avenues."
The Impact on Centralized Exchanges
CEXs may have to enhance or upscale their service to match users' high standards if they are to compete with spot bitcoin ETFs. Commenting on the wealth management system known as decentralized ETFs, the Blockguard CEO claimed that it excels at providing users or investors with "curated portfolios of thoroughly researched and back-tested coins."
The Role of Decentralized ETFs in Wealth Management
Besides helping investors diversify their investments, decentralized ETFs can make the investment process "more efficient and accessible," Bevan claimed. In his written answers sent to Bitcoin.com News, the CEO asserts that this wealth management system works because it leverages the blockchain's key attributes such as decentralization and transparency.
Addressing Concerns about Decentralized Finance
Meanwhile, when asked about the growing incidents in which decentralized finance (defi) platforms are hacked or users lose funds to scammers, Bevan acknowledged that the problem may be getting out of hand. However, the CEO insisted that the mainstream media is only giving excessive coverage to such incidents because it aligns with their goal of steering users away from decentralized finance. Bevan also lists several measures or steps that users can take to minimize the chances of becoming hacking or scam victims.
The Potential of Blockchain-powered Risk Management Tools
Blockchain's potential for portfolio and risk management is limitless, according to Bevan. Blockguard aims to fill the gap in the blockchain sector by offering one-stop portfolio management with unparalleled transparency and flexibility. Their portfolio management system, Portfolio Pro, categorizes on-chain assets, mitigates risk, provides AI-driven suggestions, and aids in long-term financial planning.
The Impact of Spot Bitcoin ETFs on Centralized Exchanges
The approval of spot bitcoin ETFs (Exchange-Traded Funds) can impact centralized exchanges by potentially diverting some investor interest and trading volume to the ETF market. It might provide a more regulated and mainstream investment avenue for those who prefer traditional financial instruments.
The Role and Functioning of Decentralized ETFs
Decentralized ETFs streamline investment by providing curated portfolios of thoroughly researched and back-tested coins. Users can diversify their investments based on comprehensive data, making the investment process more efficient and accessible. The platform also incorporates a convenient rebalancing mechanism, allowing users to maintain their portfolio allocations effortlessly. Blockchain technology ensures the security, transparency, and accessibility of investment data, while smart contracts automate portfolio rebalancing, providing users with a trustless and efficient way to manage their assets.
The Virtual Financial Advisor for Sophisticated Financial Planning
Blockguard offers a virtual financial advisor called Portfolio Pro, which aims to disrupt the financial planning industry. By utilizing blockchain technology, Portfolio Pro categorizes each asset a user owns and provides AI-driven suggestions for long-term financial planning. The goal planning feature puts the control in the individual's hands to achieve their financial goals.
The Appeal of Gold-backed Tokens for Investors
Gold-backed tokens, like the one offered by Blockguard, are pegged to the value of gold. These tokens allow smaller investors to buy tokenized gold and build up to owning a solid gold bar. Gold is a great store of value, and gold-backed tokens provide accessibility and opportunities for the wider market to invest in this well-performing asset.
Non-Fungible Tokens (NFTs) for Governance
Non-fungible tokens (NFTs) can be used for governance in Web3 projects. They offer increased transparency, immutability, and security in decision-making processes. NFTs also enable clear ownership and traceability of voting rights, reducing the risk of fraud. However, for a high level of decentralization, a large collection of NFTs is required to prevent centralization by wealthy investors.
Mitigating Risks in the Crypto Space
To mitigate risks in the crypto space, Bevan recommends using reputable platforms, securing accounts with two-factor authentication and strong passwords, utilizing cold storage and multisig safe wallets, researching projects before investing, staying informed about security best practices and common scams, being cautious of phishing attempts, diversifying investments wisely, regularly updating software, educating oneself about blockchain technology and common crypto scams, and trusting instincts when something seems too good to be true.
Spot bitcoin ETFs are expected to impact centralized exchanges by diverting investor interest and trading volume to the ETF market. Decentralized ETFs offer curated portfolios, efficiency, and accessibility, leveraging the blockchain's attributes. Blockchain-powered risk management tools and virtual financial advisors provide transparency and flexibility. Gold-backed tokens provide accessibility to gold investments. NFTs can be used for governance, enhancing transparency and ownership. Mitigating risks in the crypto space requires awareness, research, and security measures.
Frequently Asked Questions
How does a gold IRA generate interest?
It all depends on how big your investment is. If you have $100,000, then yes. If you have less than $100,000, then no.
The amount you deposit into an IRA will affect its potential to earn interest.
If your annual retirement savings contributions exceed $100,000, you might want to open a brokerage account.
While you will probably earn more interest there as a result, you'll also be subject to riskier investments. You don't want your entire portfolio to go bankrupt if the stock markets crash.
A IRA will be more beneficial if you can only contribute $100,000 annually. At least until there is a rebound in the market.
Can I add gold to my IRA?
The answer is yes It is possible to add gold to your retirement plans. Because gold doesn't lose its value over time, it is an excellent investment. It is also resistant to inflation. It also protects against inflation.
Before you decide to invest in gold, it is important to understand that it isn't like other investments. You can't buy shares in companies that make gold unlike bonds or stocks. These shares can also be not sold.
You must instead convert your gold into cash. This means you will need to get rid. You can't just hold onto it.
This is what makes gold unique from other investments. Like other investments, you can always dispose of them later. But that's not the case with gold.
Worse, the gold cannot be used as collateral for loans. For example, if you take out a mortgage, you may give up some of your gold to cover the loan.
What does that mean? It's not possible to keep your gold for ever. You'll eventually need to convert it into cash.
There's no need to be concerned about this right now. All you need to do is create an IRA. Then, you can invest in gold.
Are gold- and silver-IRAs a good idea.
If you are looking for an easy way to invest in both gold and silver at once, then this could be an excellent option for you. However, there are many other options available as well. You can contact us at any time with questions about these types investments. We are always available to assist you!
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
- SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
The Best Precious Metals Ira 2022: Things to Remember
Precious Metals Ira is one of the most popular investment options among investors. This article will help you understand what makes this asset class so attractive and how to make wise decisions when investing in precious metals.
These assets' main appeal is their potential for long-term, sustainable growth. Historical data shows that gold prices have experienced incredible returns. Gold prices have increased by almost $1900 per troy ounce in the past 200 year, from $20 an ounce to nearly $1900 over that time. The S&P 500 Index grew only by about 50%.
During times of economic uncertainty, people consider gold a safety net. When the stock markets is down, people tend not to hold onto their stocks but rather move into the safety and security of gold. Inflation is also a hedge, so gold can be used as a security measure. Many economists believe there will always be inflation. As such, physical gold is an excellent way to protect your savings and prevent future price increases.
There are a few things you need to remember before purchasing precious metals like silver, gold or platinum. First, you should know whether you want to invest in bullion bars or coins. Bullion bars are typically purchased in large quantities, like 100 ounces, and kept away until they are needed. Coins are smaller versions of bullion bars, which can then be used to buy small amounts of bullion.
The second thing you need to consider is where you will store your precious metals. Certain countries are more secure than others. You might find it more sensible to store your precious materials overseas if you are a resident of the US. However, if you plan on keeping them in Switzerland you may want to think about why.
You should also decide whether to invest in precious metals directly or via “precious-metals exchange-traded funds (ETFs). ETFs are financial instruments which track the performance and price movements of different commodities like gold. These are a way to have exposure to precious metals but not necessarily own them.
By: Terence Zimwara
Title: How Spot Bitcoin ETFs are Impacting Centralized Exchanges
Sourced From: news.bitcoin.com/bitcoin-etfs-to-likely-divert-users-and-trading-volumes-away-from-cexs-says-anthony-bevan/
Published Date: Wed, 24 Jan 2024 11:00:25 +0000