Cryptocurrency can be a
risky investment, whichever way you slice it. Therefore, the decision to put
money into this digital asset is something that investors need to consider carefully.

 

Sure there is potential
to turn a profit with cryptos, but not everyone is fit to hold them. Hence, the
question. Are you fit to invest in cryptocurrencies, or you’re better off
choosing other investments?

 

To help you decide,
here are four signs that you may not be cut out for investing in cryptocurrency.

 

1.    You Look to Make Money
Fast

 

Buying cryptocurrencies
that are making a bullish run and selling them immediately is not exactly an
excellent plan, as your odds of losing with this strategy are pretty high.

Short-term trading
could put you in a difficult situation since it’s hard to be spot-on with the
time you’re making a buy, and you won’t always be aware that an asset is rising
until its price is already at or close to its highest.

 

Investors with
long-term investment horizons often do better than short-term investors in the
markets because they don’t need to worry about timing their purchases.

 

Therefore, if you don’t
plan to hold on to your crypto investments for a very long time, you’re
probably better off finding other investment options.  

 

2.   
Low-Risk Tolerance

 

It’s worth thinking
twice about investing in cryptocurrencies if you’d rather focus on capital
preservation than growth, and there’s a possibility that you would sell at the
first sign of weakness in your crypto holdings.

 

If you’re a risk-averse
investor, you may panic sell at unideal times, leaving you with losses that you
could have regained if you stayed invested during that brief price drop. That
is exactly why investors with a low tolerance for risks need to keep volatile
assets like cryptocurrencies out of their portfolios.

 

3.   
Crypto Choices are Influenced by Celebrities or Social
Media

 

Your crypto purchases
should not be based entirely on celebrity recommendations or social media posts
because if that’s the case, you could make a costly mistake.

 

It’s pretty hard to
always believe in the advice you hear or read from social media influencers or
finfluencers since not all of them are qualified experts in the financial
field.

Moreover, some could
only be recommending a particular cryptocurrency for promotional purposes or
their own personal gain. Even those with good reasons may not have the same
investing goals as you.

 

So unless you know how
to look into cryptocurrencies properly to analyze their long-term potential and
risks, investing in cryptos may not yet be a wise move to make.

 

4.   
Portfolio Needs More Conventional Assets

 

It’s better to invest
in cryptocurrencies only if you can afford to lose them and have all your
finances in order.

 

Cryptocurrencies can be
very risky due to their highly volatile and speculative nature. Therefore,
before you include cryptos in your investment portfolio, it’s better to fill it
with more conventional assets like stocks and bonds.

 

That way, you have
assets that would keep you on stable grounds during uncertain times and provide
you with decent returns, helping you build wealth in the long run, even if your
cryptocurrency holdings
don’t work out well.

Non-fungible tokens
(NFTs) are transforming how people collect and own
items online. By the end of last year, this digital asset grew notably
popular that the NFT market’s worth reached around $40 billion.

 

If you’re planning to
make your first NFT purchase, there are a few essential things that you need to
take care of.   

 

Research

 

Research is always
vital when you’re considering investing in a new asset. Whether it’s shares in
a company, an artwork, cryptocurrency, or NFT, research helps you grasp
important aspects of a potential investment.

 

With NFTs, you need to
look into several aspects, including:

·      Gas and other
transaction fees

·      The blockchain that
mints the NFT

·      Valuation

·      Authenticity and fraud
risks

·      Carbon cost

 

A Solid Reason

 

NFTs are digital proof
of ownership of a number of tangible and intangible products, from art to music
to sports collectibles to in-game items. With the broad range of things you can
buy as an NFT, it’s crucial that you determine the NFT you’re buying and the
reason for purchasing it.

 

If you decided to own
an NFT just because most investors are buying or talking about it, you might
need more reasons than that. Otherwise, you could end up following the crowd
all the time without a good idea about the NFT and a clear reason why you’re
buying it in the first place.

 

If you’re going to
purchase an NFT, make sure you’re buying based on your personal interests and
have considered the key differences that make every NFT sector unique. For
example, an art collector has different needs from a basketball fan looking to
own an NFT of one of the greatest sporting moments.

 

A Digital Wallet

 

You need an NFT wallet
to pay for and store your digital coins. You can start with a software wallet,
but if you end up buying NFTs regularly, a hardware wallet that protects your
NFTs offline may be ideal. You can also find many useful information online to
help you get started on creating a wallet.

 

Once you’ve set up your
account, you’ll receive some type of master password called the seed phrase,
which you need to keep somewhere safe as this would allow you to access your
NFTs if you lost or don’t remember your password.

 

Note that the NFT
wallet should work properly with the trading platform and blockchain network
you will be using. You also need to check whether the two-factor authentication
is available.

 

Platform and Blockchain
Network

 

Many NFT marketplaces
allow individuals to browse, create, and buy and sell NFTs. But you need to
focus on finding a platform that trades the NFTs you plan to own.

 

You should also see
what blockchain network that platform is using. The Ethereum blockchain
supports a significant number of NFTs and is the most common out there,
although Solana and Tezos have also entered the NFT venture.

 

Choosing the blockchain
matters because buying NFTs with fiat currencies like US dollars can be pretty
tricky. So while you need to have cryptocurrency, it needs to be the correct
cryptocurrency.

 

Considering the risk of
fraud in NFTs, several platforms have implemented measures to ensure the NFT is genuine. No investor would want to
purchase an NFT only to find out that it was not authentic, and the original
creator does not even know that his work has been made as an NFT.

Bitcoin declined by
5.7%, ending the week at around $40,300. Ethereum lost 6.6%, while other
leading altcoins in the top 10 fell from 2.9% (Binance Coin) to 17% (Terra).
The exception was XRP (+0.8%). Monday began with a further 3.3% drawdown in
bitcoin to $38.9K, which had fallen below its support line since January.

The signal for a
break of the mild upward trend would be a consolidation below the $38K levels.
If the bulls capitulate, the first cryptocurrency could be pushed into the
$32-35K range without much resistance. A consolidation scenario below $30K
would require an absolute disaster in the financial markets. We have seen
steady and impressive demand from long-term buyers as we have fallen into this
area.

 

The total capitalisation of the crypto market,
according to CoinMarketCap, fell by 7.3% over the week to $1.81 trillion. The
Bitcoin Dominance Index fell by 0.5% to 40.75% over the same period. The
cryptocurrency fear and greed index lost 4 points to 24 by Monday, returning to
“extreme fear” territory after two days of consolidation in “fear”. Bitcoin
declined for the second week in a row under negative stock market performance.

 

Last week’s
noticeable decline in BTC on Monday

 

Executives of the
world’s largest crypto exchanges told CNBC that they have recently noticed
signs of a “crypto thaw” regarding governments’ changing attitude towards
cryptocurrencies. Portugal’s central bank has granted the country’s first
crypto-asset license to a bank. Bison Bank became the first bank in Portugal to
offer large customers cryptocurrency storage and trading services. Cardano
founder Hoskinson suggested that Musk join forces to create a decentralised
social network if Twitter does not come under the Tesla founder’s control.

 

Vlad Tenev,
Robinhood’s CEO, said DOGE would become the most used cryptocurrency for
Internet payments. However, to do so, developers must improve transaction
processing speed.

This article was written by FxPro’s Senior Market
Analyst Alex Kuptsikevich.

It is Easter Monday so there isn’t much interest in the market for any action today, as evident by the lack of meaningful expiries rolling off on the day. We’ll only really get back into the thick of things tomorrow.But one thing to note is that there is still a lack of significant expiries for USD/JPY above 125.00 through to 130.00 at this stage. That may offer some additional license to roam for the pair as it threatens a further upside leg.For more information on how to use this data, you may refer to this post here.

Next week is a hodgepodge of economic releases and events. Central bank members from around the globe will be speaking.  In the US, existing home sales, Philly Fed manufacturing index, flash PMI data will be released:Monday, April 18.  The Easter Monday holiday will close most of Europe including Switzerland, UK, France, Germany, Italy, and CanadaChina GDP, 10 PM ET.  Estimate 4.2% versus 4.0% Q/YChina retail sales YoY.  10 PM ET. Estimate -3% versus +6.7%RBNZ Gov. Orr speaks at 4 PM ET/0500 GMT. The RBNZ raise rates by 50 basis points at their meeting last weekFeds Bullard (hawk and voting member) speaks also at 4 PM ETTuesday, April 19:Australia’s monetary policy meeting minutes.  9:30 PM ETUS housing starts, 8:30 AM ET. Estimate 1.74 million versus 1.77 million last monthSNB’s Chairman Jordan speaks at 12:30 PM ETWednesday, April 20Canada CPI. 8:30 AM ET. Estimate 0.9%. US existing home sales. 10 AM ET. Estimate 5.78 million versus 6.02 million last monthUS beige book. 2 PM ETThursday, April 21New Zealand CPI quarter on quarter. 6:45 PM ET. Estimate 2.0% versus 1.4% last quarterEU final CPI YoY.  5 AM ET.  Estimate 7.5%.  Core CPI 3.0%US Philadelphia Fed manufacturing index.  8:30 AM ET.  Estimate 20.6 versus 27.4 last monthUS unemployment claims.  8:30 AM ET.  Estimate 190K versus 185K last weekBOE Gov. Bailey speaks at 12:30 PM ETECB Pres. Lagarde speaks at 1 PM ETFed’s Powell speaks at 1 PM ETFriday, April 22Australia flash manufacturing and services PMI. 7 PM ETJapan flash manufacturing PMI. 8:30 PM ETUK retail sales. 2 AM ET. Estimate -0.3% versus -0.3% last monthGermany flash manufacturing PMI. 3:30 AM ET. Estimate 54.6 versus 56.9 last monthEU flash manufacturing PMI. 4 AM ET. Estimate 54.9 versus 56.5. Services PMI 55.0 versus 55.6 last monthUK flash manufacturing PMI. 4:30 AM ET. Estimate 54.3 versus 55.2Canada retail sales 8:30 AM ET. Estimate -0.5% versus 3.2% last month. Core retail sales 0.2% versus 2.5% last monthUS flash manufacturing PMI. 9:45 AM ET estimate 58.1 versus 58.8 last month. Services PMI flash estimate 58.0 versus 58.0 last month

The earnings calendar will swing into another gear next week after financials dominated the first week.  There will be more from the financial sector along with the likes of IBM, Lockheed Martin, Netflix, United Air, and AT&T.Below is the expected schedule of some of the major releases:Monday , April 18Bank of AmericaCharles SchwabIntuitive SurgicalTuesday , April 19IBMInteractive Brokers GroupLockheed MartinHalliburtonNetflixJohnson & JohnsonWednesday , April 20AlcoaUnited AirlinesProcter & GambleCarvanaThursday, April 21AT&TBlackstoneFreeport McMoRanPhilip MorrisFriday, April 22American ExpressVerizonKimberly-ClarkSchlumberger 

Macron is seen winning France’s presidential election runoff with 56% of the vote versus Le Pen. The participation rate is expected at 71% for the second rounded France’s presidential election. This according to IPSOS-Sopra Steria. 

USDJPY trades to the highest level since 2002 The USDJPY is trading higher once again today and in the process has blown back through the June 2015 high at 125.86 and the high from Wednesday t 126.31. That move puts the price at the highest level since May 2002 nearly 20 years ago (see weekly chart above). My USDJPY charts are running out of history. I have the May 6 week swing high up at 128.920 and that’s it (see chart above). There remains some room between the current price at 126.46 and that 128.92 high, but not much. Driving the move higher is central bank rate policy. The Fed is intent on a series of tightenings to get back to the neutral rate (at least) at around 2.50% (and may have to go higher). The Fed is expected to hike by 50 bps at the next meeting in March and the market is expecting another 50 bps in June (the current rate is 0.50%).Meanwhile, the BOJ is happy to keep the status quo and in fact are looking to limit the moves in their yields. That dynamic has led to a surge in yield spreads between the US and Japan debt instruments. Looking at the 10 year yield spread below, the spread between US 10 year yields and Japan 10 year yields has widened to over 250 basis points from about 153 basis points on March 7. Note the yield spread basing against its 100 day moving average back in early March before moving to the upside. The US 10 year to Japan 10 year yield spread Over the same period, the USDJPY has moved from around 114.82 to the high today of 126.68 or 1186 pips (10.32%). Also note how the USDJPY based against its 100 day moving average back in early March before moving to the upside.Those MAs do tend to give traders risk and bias defining clues. USDJPY has searched since basing against its 100D MA Those are big moves. However, with inflationary pressures still not fully resolved (commodities are still relatively up there with oil back at $106 after trading at $93 on Monday, natural gas at highest level since 2008, corn at highs since 2012, wheat moving back higher and soybeans also elevated, etc), and employment at or near full employment levels, the fear is the trend has the possibility to continue (in spreads and in the USDJPY’s move). When you trade at such extremes, it is hard to grasp on to targets on the topside(we are at highest levels since 2002 after all). However, where there’s a will there’s a way. One tact that tends not to work – especially in a trending market – is to get suckered into the idea that „the market is way overbought, so the only trade is to sell“. My response is been, „the markets have been overbought for a while, and all those traders who have sold are likely adding to the bullish bias today“. The better tact for traders is to say, „The market is overbought, but sellers have to prove that they can take back control.“ How can they do that? Looking at the hourly chart below, the price high from Wednesday’s trade reached 126.31. A move back below that level and staying below that level would give sellers a level to lean against. Sellers would prove they can win a battle by moving below that level and staying below (and targeting other lower levels). USDJPY is overbought but that trend can continue Alternatively, the rising 100 hour moving average (blue line in the chart above) currently at 125.684 would be a another level to get to and through, and would increase the bearish bias in the process. Yesterday, the price moved down to test that 100 hour moving average (see blue line in the chart above), and although the price did dip below the moving average line it was only by a few pips before the price rotated back to the upside. Sellers who sold below the level would likely cover on the move back above the moving average level when momentum started to increase (hence the fuel for more upside momentum). Nevertheless, going forward moving below the 100 hour moving average and staying below would be indicative of potentially more corrective downside probing from the overbought conditions. That would be a way that sellers could prove they can take back more control. What about the upside? Can traders target a level to lean against on a run further to an overbought level on the upside? Looking at the hourly chart above, connecting the highs from the week on Monday and again on Wednesday, the upward sloping trendline cuts across currently at 126.96. That level is close to the 127.00 natural resistance level. Sellers looking to pick a top could lean against that level with stops on a break above. It is trading against the trend, but at least risk is defined and limited against two targets in the same area.  Note however, that if the price moves above, get out. . Trends are fast, directional, and tend to go farther than traders expect. Also the most money is lost in trending markets. So avoid trading against the trend unless you have real technical reasons i.e. like the reasons outlined above with risk defined. Selling simply because the price high and „overbought“ is not an option. Remember, overbought in a trending market becomes more overbought as the market continues to trend. That is what a trend move does…Also, always keep that in mind you don’t have to sell.   Instead try to get on the trend by buying against support. The buyers who leaned against the 100 hour MA near 125.15 yesterday are looking 126.48 today.  

Capacity utilization continues its recovery higher US industrial production +0.9% versus 0.4% estimate prior month revised to 0.9% from 0.5% US capacity utilization 78.3% versus 77.8% estimate last month revised to 77.7% from 77.6% manufacturing output for March increased 0.9% versus 0.6% estimate. Last month saw an increase of 1.2% industrial production year on year rose 5.47% versus 7.5% last month Other highlights from the Fed on the state of the manufacturing sector: Total industrial production advanced 8.1 percent for the first quarter. The output of motor vehicles and parts jumped 7.8 percent,motor vehicle production contributed to increases of 3.9 percent consumer durables and transit equipment increased 5.2 percent Excluding the large gain in motor vehicles and parts, the output of durable goods increased 0.4 percent in March, with most industries posting gains; only nonmetallic mineral products, primary metals, and furniture and related products recorded decreases The index for utilities increased 0.4 percent, The index for mining advanced 1.7 percent. At 104.6 percent of its 2017 average, total industrial production in March was 5.5 percent above its year-earlier level. Capacity utilization climbed to 78.3 percent, a rate that is 1.2 percentage points below its long-run (1972–2021) average. Although, the capacity utilization is still below it’s long run average by 1.2% (from 1972), it still is at its highest level since January 2019. The 2018 cycle high reached 79.9%. As the, economy continues to chug along and shortages in autos and building materials continue as industries recover from the pandemic, supply chain issues, and employment remains tight, that can in turn lead to more inflation and inflation expectations before reaching higher capacity limits.  If workers are needed to source higher levels of capacity, that could be a problem.  The good news is manufacturing advancements can require less workers as automation advancements can increase capacity without the need for added manpower.  

Bitcoin was down 3.4% on
Thursday, ending the day near $39.9K, although it managed to bounce back above
$40.1K by Friday morning, cutting the intraday decline to 2.8%. Ethereum has
lost 2.5% in the last 24 hours, and other leading altcoins from the top ten are
predominantly declining, from -1% (BNB) to -7.3% (Terra). The exception was
XRP, which added 5.4% during this time.

BTC
can develop a reversal
According to CoinMarketCap, the total capitalization of the crypto market
decreased by 2.8% per day, to $1.87 trillion. The Bitcoin dominance index fell
by 0.3% to 40.7%.

By Friday, the cryptocurrency fear and greed index returned to the extreme fear
territory, losing 6 points to 22. US stocks failed to build on the offensive,
losing all of the previous day’s gains, leading to a stronger selloff for
bitcoin compared to alternative cryptocurrencies.

From the technical side, Bitcoin is trading near the support level, which runs
through the lows of January, February and March. A formal signal to break the
support will be considered a failure under the previous lows in the $38K area.
The ability to develop a reversal to the offensive from these levels, on the
contrary, will reinforce the importance of this moderate uptrend line.

Crypto
news
The head of Ripple noted that the court with the SEC is going “much better than
expected,” which provoked a wave of XRP growth, allowing the coin to resist
gravity.
BlackRock CEO Larry Fink said that the largest asset management company continues
to study the cryptocurrency sector.

Amazon CEO Andy Jassy said that the company has no plans to introduce payments
in cryptocurrency in the near future, although it is exploring the
possibilities of digital assets. At the same time, he looks to the future of
cryptocurrencies and NFTs with interest and optimism.

The Bank of Canada is exploring scenarios for the coexistence of digital and
fiat currencies, the first regulator to decide to use quantum computing for
this study.

Bank of Japan chief executive Shinichi Uchida said the upcoming digital yen
will not be used to achieve a negative interest rate. The second stage of the
launch of the digital yen started on March 24th this year.

 
This article was written by FxPro’s Senior Market Analyst Alex
Kuptsikevich.