Investing is not as easy as the internet makes it seem, with every profit comes plenty of research behind it. Not to mention all the strategies as well. Similar to trading, investing can at times be time-consuming and demanding. While investing is beneficial in so many aspects, it can also come with some trial and error. This is why seasoned investors have made it a goal to share the knowledge they have with the rest of the world.

Someone else's candle shining doesn’t dim your own. So if we are lucky enough to have access to this vast array of information, thanks to the internet and investors, then we should use it, and that is why we have decided to help you learn more about Dollar-Cost Averaging.

What is DCA?

DCA is an abbreviation for Dollar-Cost Averaging. To put it simply, DCA is an investment strategy that sees people investing gradually over time rather than dropping a lump sum of money into assets.

Let’s say you have a total of $10,000, monthly lump-sum investing would see you entering all that money into an asset market. DCA on the other hand would see you investing $500 each month or week. Not only does DCA provide you leeway to pay your bills while still investing, but it also protects you from excess loss. While lump-sum investing does have its perks, it also has the potential for big losses.

By investing only what you are willing to lose, you are at no risk of financially crippling yourself. DCA ensures you do not lose all your money on an investment, whereas one wrong trade in lump sum trading can greatly set you back. DCA is a great way for newbies to test the markets and trust in an investment before moving forward, seasoned traders are also a fan of DCA as it allows them to diversify their funds in a more structured way.

The point of DCA is to avoid market watching and big losses, DCA is the practice of routinely investing smaller amounts, timed over regular intervals, regardless of price.

Why and how to use DCA

The how is easily answered, as already stated prior, it is as simple as allocating a set amount aside each month for investing. You invest your set amount a month routinely, regardless of the price, growing your total shares. But the real question is why? Why is this strategy so popular and why is it so highly recommended? Let’s get into it.

The benefits right from the get-go are clear, you hold less risk of losing everything at once. As the traders' tale goes, only put in what you are willing to lose. Lump-sum investments do not take this approach with caution, putting it all on the line, or a large portion at least.

DCA means you are continuously putting in small amounts that do not greatly limit your day-to-day life while still growing the value of your portfolio. DCA is a longer-term investment strategy. DCA also eliminates some of the risks involved with investing. As we have seen on game shows, some investors are baffled and do not know whether they should settle for less or go for more.

With DCA, the markets don’t matter, you are buying your assets at whatever price they are at and reaping the profits when the price climbs. But also, by purchasing every week rather than all at once, you have the option and ability to buy in on the volatile markets getting better prices per share than someone who put it all in at once.

This strategy also helps you manage emotional investing, forcing you to hold onto your investment despite FUD being spread, ensuring you don’t sell low or buy high. There are too many benefits to DCA to be listed, these are just a few that have been highlighted by investors.

Frequently asked questions

Now that you know what DCA is, how to use DCA, and why you should use DCA, let’s answer some other frequently asked questions to help broaden your understanding. These are some of the most frequently asked questions in regards to the DCA strategy:

Is DCA a good strategy?

DCA is a widely recommended strategy, however, each person and their financial goals are different so it’s best to work out if it’s a good strategy for you. Overall, DCA takes the emotional volatility out of investing in market volatility, helping reduce risk and loss and avoiding trying to time the markets. You are still investing in projects you believe in, just in a more manageable way.

Is DCA good for crypto?

Yes, just like traditional investing, people investing in cryptocurrency can greatly benefit from DCA. Investing small portions routinely still grows your portfolio, but allows you to better manage your funds and resources.

Can DCA make you rich?

Whether DCA can lead to wealth accumulation is a nuanced matter and relies on how you implement the strategy. There are no guaranteed gains in trading activities. While we cannot provide financial advice, investing money using DCA or any other approach has the potential to yield positive results. It might take longer to match the returns of those who invest a lump sum, but it can mitigate the risks associated with timing the market. Time and patience are key factors in this process.

How frequently should I be using DCA?

How often you choose to employ the Dollar-Cost Averaging (DCA) strategy is a matter of personal preference and can vary among investors. Consistency is important, so it's recommended to select a frequency that aligns with your comfort level. This could range from daily, weekly, to monthly intervals, depending on what suits you best.

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The DCA conclusion

While there are many investment strategies out there, this is a favoured strategy by many investors - that is not to say it is the only or best strategy, just one to consider. There are many perks that come with DCA, and that’s what we wanted to highlight in this piece for you today. 

DCA provides a sense of commitment that is hard to find, ensuring you secure your space in the market without any added risks. There will always be risks involved with investing, but the DCA strategy finds some ways to minimise those risks in comparison. 

Never underestimate the power of emotions and trading. While this might sound redundant, emotions play a much larger role in decision-making than most might like to admit, and crypto trading is no exception. In order to make successful decisions, traders need to avoid the emotional rollercoaster and learn to look at the markets objectively. 

Here we will show you how to master the emotional pitfalls of decision-making when it comes to trading, a skill every successful trader has acquired at some point in their journey. Outlined below are several points one can incorporate into their trading practices, whether trading daily or once a month. 

Outline your trading goals

Before you implement any of these strategies into your trading practices, first establish what your trading goals are. Are you looking to make small returns on short term trades, or are you looking to make smart decisions over a long period of time? When it comes to mastering emotional management in trading you will need to ensure that every decision is in the best interests of your ultimate goal.

Black and white

Learn to remove the grey areas when it comes to decision-making and view crypto trading in black and white, i.e. trade like a robot. By incorporating a systematic and rule-based approach to trading you can automatically alleviate the grey areas, this might include algorithms and computer-executed trading strategies. 

Red light, green light

Colours play a huge role in our psyche and can often trigger an emotional response. For instance, if you see a big red candle this will likely stir feelings attached to danger, stopping and signs of warning. Don’t fall into the trap of allowing this to trigger you, and the same goes for seeing green candles. Don’t allow these colours to trigger your emotions and make decisions that deviate from your end goal. 

Axiomatic framework

Solidify a set of rules for your trading practices that provide unquestionable pathways through which you can trade. For example, set up entries, exits, risk limits and stop orders. Also look at establishing rules in advance around when to exit a trade if it moves favourably or unfavourably, and what your risk parameters are. 

If a trade does not entirely meet all the predetermined criteria you established, do not enter a trade. 

Take a break

If you’re on a bad streak, consider taking a break from trading activities to re-centre. This practice is used by risk managers on trading floors and is referred to as cut-offs. If a trader is experiencing a poor performance streak they will be moved to a demo trading model until they start to perform better, this also might include taking a break completely. 

Self reflect on behavioural shortcomings

Dig deep to find what reactions you make when faced with emotions such as greed or fear. Attempt to learn as much as possible about your behavioural patterns when trading so that once triggered you can learn to recognise these patterns so as not to fall victim to your own emotional responses. 

Balance

Don’t underestimate the power of balance as it plays an imperative role when it comes to clear judgement, reason and logic. When it comes to being a strong athlete, it’s imperative that the athlete needs to be in a good mental space too. The same runs true for being a strong trader, mental (and even physical) strength plays a strong role in overall balance and your ability to function optimally. These positive changes reverberate across all aspects of your life and can certainly have an effect on your trading endeavours.

Master emotional management in trading

Ultimately the most disciplined version of yourself will yield the best results when it comes to trading. Consider improving on all aspects of your life and then implement several strategies listed above and you should be well on your way to an incredibly successful trading path. 

To learn more about this topic, consider reading “Trading in the Zone” by Mark Douglas and “The Psychology of Trading” by Brett N. Steenbarger. 

When it comes to understanding cryptocurrency regulations, few are aware of the correct terminology that indicates the company respects the highest standards of safety and security when it comes to your personal data and funds. In this piece, we’re going to break down the difference between what FCA registered and FCA authorised mean, and why it’s so important to distinguish the difference between the two. 

What Is The FCA?

The Financial Conduct Authority (FCA) is responsible for regulating all financial services industries across the United Kingdom. The organisation is in place to increase market integrity while protecting customers and promoting healthy competition. All investment firms, financial service providers and consumer credit firms are required to be authorised by the  FCA, while banks, credit unions, and insurance companies must also be regulated by the Bank of England's Prudential Regulation Authority (PRA).

Through three arms of operation, the FCA’s main objective centres around ensuring customers’ protection is at the core of the financial institutions’ that they govern. The FCA is responsible for authorisation, supervision and enforcement, which covers:

• Monitoring firms and individuals to ensure they meet the required standards of their service. 
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• Supervising firms and individuals to ensure that the correct standards are met.
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• Enforcement. The FCA can stop trading for firms and individuals that do not comply with the outlined standards of practice and can prosecute and impose penalties where necessary. The FCA is also able to secure compensation for customers when necessary.
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“By regulating firms, the FCA protects consumers and allows them to have confidence in the services offered to them. This is important to the economic stability of the country, as consumer trust in financial services stimulates competition and growth.”
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The FCA and Crypto

As cryptocurrencies entered the mainstream trading circles, the FCA expanded their services to include financial institutions proving crypto services. While the company is seen to have an “evolving approach” to cryptocurrencies, it has had to establish clear boundaries and ensure that proper anti-money laundering (AML) guidelines are in place.

In light of this, the organisation implemented a regulation that insists that all crypto-related companies in the UK need to be compliant with the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 and must be registered with the FCA by 9 January 2021. This deadline has since been moved out to March 2022 as many companies are not meeting the necessary guidelines and the intensive assessment is then delayed.

Once approved, this means that the FCA is confident that the company has processes in place that can identify and prevent anti-money laundering and counter-terrorist financing activities. 

What is the difference between FCA registered or authorised?

The difference between FCA registered and FCA authorised is whether the company passed the rigorous testing process and was approved. Some ill actors in the industry claim to be “FCA registered” which does not mean that they have complied with the FCA regulations, it simply means that they applied for it. Always ensure that the financial services firm you are engaging with has the FCA authorisation stamp of approval.

How does FCA authorisation work?

To give customers peace of mind when it comes to investing their money, the FCA authorisation ensures that firms are compliant with the strict outlines of the Financial Services and Markets Act 2000 (FSMA). In the crypto space, the regulatory requirements will change depending on whether the company is providing services pertaining to DLT (distributed ledger technology), Markets in Financial Instruments Directive (MiFID), or E-money. However, the process will remain the same and the criteria will need to be met. 

In the case of crypto-related companies, they will also need to be compliant with the EU’s 5th Money Laundering Directive (5MLD) and the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017.

All firms seeking to obtain this recommendable level of compliance need to complete the application process after which they will be assigned a specific case officer. The case officer is then responsible for understanding the services provided by the company, and determining whether they meet the FCA requirements. Individuals in key roles within the company are also vetted to ensure that they are “fit and proper” to serve in this role. Once approved the companies are required to pay an annual fee and share ongoing reports on their operations. 

Tap Global GFSC Licence

Based in Gibraltar, which is a self-governing British overseas territory, Tap Global holds a licence from the Gibraltar Financial Services Commission which acts as the “FCA of Gibraltar.” Through a regulation process and ongoing monitoring, the organisation ensures that all financial institutions operating from that area meet the high standards and criteria, predominately focused on consumer protection, firm integrity and anti-money laundering practices.

Tap Global is an authorized DLT provider, ​​licensed and regulated by the Gibraltar Financial Services Commission with license No. 25532.

The decentralized app (dApp) ecosystem is growing from strength to strength, with things looking good for Ethereum and Tron. However, EOS is falling far behind. According to DappRadar, “While [Ethereum and Tron] are increasing in 2020 January in comparison to 2019 January, EOS is facing a decrease in daily active users by 61%.” Ethereum’s leading the way in gaming dApp development, but Tron’s gaining speed – let’s take a look at exactly what’s going on.

The report

DappRadar’s report looked at Ethereum, Tron and EOS, highlighting their performances within the dApp ecosystem. Ethereum saw the biggest growth, but Tron is winning in the daily users category. Justin Sun’s blockchain (Tron) is stuck with gambling and high risk dApps, failing to expand outside of this sector. EOS was bogged down by network congestion thanks to the launch of the EIDOS token, which was “at best a mischievous experiment gone wrong, at worst an aggressive DDOS attack.”

Ethereum

Daily active wallets have increased by a whopping 82% since January 2019, with the number going from 9,264 to a 30-day average of 16,840 users.

The games and marketplaces category is the most popular, with user growth increasing by 163% since January 2019. My Crypto Heroes is the most popular game, but newbies on the scene (like Brave Frontier Heroes) are growing.

Decentralized Finance dApps saw a 7% increase in daily active unique wallets in January alone – particularly in the second half of the month. Exchanges saw an increase of nearly 10% in January.

If you want to trade ETH or other leading cryptocurrencies, consider trying out the Tap app. Tap scans all major exchanges to find you the best price on the crypto asset of your choice, and then stores your crypto in a built-in, cold storage wallet, which can then be linked to your Tap Prepaid Card, accepted worldwide.

(Source DappRadar)

Tron

Ethereum’s leading the way in gaming dApp development, but Tron’s gaining speed elsewhere. Tron has seen an increase of 33% in daily active unique wallets, since January 2019. Last month alone, the user base increased by 8%, up to 20,000 users. However, this steady increase was found only in one category – the Gambling and High-Risk sector. The most popular Tron dApps are 888Tron, with around 2,600 daily active users, followed by RocketGame and WINk.

Unfortunately, the numbers have been dropping in other sectors. Games and Marketplaces saw a decrease of 7%, and Exchanges saw a decrease of 21%. DappRadar wrote, “Tron as a maturing dApp ecosystem is still failing to expand outside of gambling and high-risk dapps.”

(Source DappRadar)

EOS

For context, EOS stats took a nosedive. The network congestion following the EIDOS airdrop led to a drop of daily active wallet users of 8% at the start of 2020, dropping to under 12,000 users. The Gambling and High-Risk category saw a decrease of a whopping 29%, with dApps like Gamblr, Dice, and EOS Royal the most impacted.

According to DappRadar, “Problems for EOS look set to continue in 2020 with daily active unique wallets showing a decrease of 8% in January 2020 and increasing competition from other protocols.”

According to @dapp_review, the number of #TRON #Dapps reached 695 with 5 new ones added. TRON’s #Dapp ecosystem is growing at a steady pace, we welcome more developers and users to join us. #TRX https://t.co/NoE41FX7ty

— Justin Sun (@justinsuntron) February 15, 2020

Ethereum and Tron are thriving

Ethereum’s growth has pretty much been all around, while Tron has only seen growth in the Gambling and High-Risk category. Meanwhile, EOS has taken a nosedive, with daily active users freefalling since the beginning of the year. With the first quarter of 2020 barely halfway through, how will the dApp ecosystem fair for the rest of the year?

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When it comes to investing in crypto, many people think about either mining cryptocurrencies or buying them outright on a crypto exchange. But what about those who want more control over their digital wallet? For the everyday crypto-investors, there's a viable cost-free alternative to earning more crypto: staking also known as "coins staking." Crypto staking allows you to generate more cryptocurrencies using your crypto holdings.

There are many new terms entering the financial world, but staking may be one of them that you should know. What exactly is it? Crypto staking is a relatively new concept that has the potential to revolutionize how we invest in cryptocurrency.

While it may appear complex at first, learning about the benefits of crypto-staking can help you make more educated decisions when investing in cryptocurrency.

In this article, you'll learn the ins and outs of staking. We've broken it down so that even if your experience level with cryptocurrencies is at beginner or below, you'll be able to start staking yourself. Let's get started!

What Is Staking?

Staking crypto is the process of locking crypto assets in a wallet to earn rewards. Doing so allows users to contribute to verifying transactions and building consensus on blockchain networks.

The procedures for validating cryptocurrency are known as "proof-of-stake" or "proof-of-work" depending on the sort of the cryptocurrency you're dealing with and the technologies that support it. Each of these methods aids blockchain networks in achieving consensus, or confirmation that all transaction data agrees.

It also requires participants to make that consensus possible. Staking is the act of investors who keep their cryptocurrency in their crypto wallet and actively participate in network consensus-making processes. Stakers, in essence, are approving, verifying and confirming transactions on the blockchain.

In crypto staking, coin holders can lock up their coins (staking) for some time period from hours to years in exchange for stakes back from the platform or network.

Staking crypto can be passive income generating - crypto holders who stake their coins will receive rewards for helping validate transactions on blockchain networks, often through an interest system similar to that of traditional fiat currency.

How does crypto staking work?

For the investor, crypto staking is a passive process. When a Staker stakes its assets (that is, leaves them in their crypto wallet), the network may utilize those assets to create new blocks on the blockchain.

The block's information is "written" into it, and the investor's assets are used to validate it. Because coins already contain "baked-in" data from the blockchain, they may be utilized as validators. The Staker is then rewarded financially for allowing his or her tokens to be used as validators by the network.

The pros and cons of Staking.

Because staking crypto is a passive investment, there are virtually close to no disadvantages. However, it's important to consider the block rewards earned by staking coins you own, as well as cryptocurrency's volatility in general—if the value of the coin drops, so does the value of your staking interest earned.

Is crypto staking profitable?

The advantage of staking is that anyone can make returns from it, with various yearly returns rates, staking is an easy way to generate passive income.

Staking is a type of passive income similar to stock dividends. It only requires you to keep the proper assets in the right location for a specific length of time. Compound interest will enhance the earnings potential over time as long as a user stakes their coins.

The value of the coin being staked must also be considered. Assuming this value stays constant or rises, staking may be profitable. However, if the price of the coin falls, profits could rapidly diminish. If you don't want to risk a downward trend in volatility.

Closing thoughts

Staking is a method for earning rewards using your cryptocurrency assets or coins. It's comparable to generating interest on cash savings or receiving dividends on stock possessions.

Stakers allow their cryptocurrency/cash to be used in the blockchain validation process and are compensated by the network for its use. Staking may provide a new way for crypto investors or currency holders to generate returns.

You’ve likely heard that cryptocurrencies provide a faster, easier and cheaper way to send money overseas. While this is true, what many people don’t necessarily know is how this is true. In this article we’re going to be fleshing out exactly how Bitcoin and altcoin transactions work, and how you can easily tap into this modern day phenomenon. 

What is Bitcoin, and what are Altcoins?

If you’re new around here, let’s get you up to speed. Bitcoin was first introduced to the world through a whitepaper in 2008 by an anonymous entity by the name of Satoshi Nakamoto (to this day their identity remains a mystery). Following the global financial crisis, Nakamoto wanted to create a currency that was free from banks and governments, instead putting financial power back into the hands of the people.

Using blockchain technology, Bitcoin was able to facilitate the peer to peer transfer of value, allowing users to make global payments at a much faster and cheaper rate than ever before. While it took a few years for Bitcoin to enter the mainstream market, during this time a number of alternative cryptocurrencies were created. In the early days, any alternative cryptocurrency was referred to as an altcoin (alternative coin to Bitcoin), while this notion has stuck, the altcoin market has grown into a sizable 9,000+ strong industry.

While many altcoins, like Ethereum and Litecoin, were created using Bitcoin’s blockchain, not all offer the same exact functionality. Each cryptocurrency that comes into existence is designed to solve a “problem” in the market, whether that be linked to data storage, smart contract functionality, faster payments systems, etc. 

How do Bitcoin and Altcoin transactions work?

Now that we understand the just of what they are, let’s explore how they work. We’ll use Bitcoin as the prime example. So while bank accounts require lengthy paperwork and administrative tasks, creating a Bitcoin “account” simply requires one to open a wallet. These can be found in different formats, with several options available on the market catered to the user's unique needs. Once you’ve created a wallet, you’ll need to load it with Bitcoin which can be done through an exchange like Tap. 

Once you have funds in your account, you will be able to send them to another user on the network (note that Bitcoin can only be sent on the Bitcoin network and Ethereum can only be sent on the Ethereum network). To send funds you will indicate on the app (or through the wallet) how much you’d like to send, enter the recipient’s wallet address and then pay a small network fee for executing the trade. 

On the backend your transaction will enter what is known as a mempool, a pool of pending transactions, until it is picked up by a miner. Bitcoin miners are responsible for verifying all transactions on the network, and compete with each other to solve the complex cryptographic puzzle first. The first one to do so is responsible for confirming the next batch of transactions in the mempool and adding them to a block. This block is then added to the blockchain in chronological order to ensure the immutable, transparent qualities of blockchain technology are upheld. Once the block has been added to the blockchain, the miner will receive all the network fees of each transaction verified as well as the block reward to compensate for the time and electricity it took to mine. 

The funds will then leave your wallet and enter the recipient's wallet, and will usually be required to go through 3 confirmations before being able to access the funds. Confirmations are measured by new blocks being added to the blockchain following the block in which the transaction is stored. Three confirmations means that three new blocks need to be added to the blockchain before the funds can be used.

Most altcoins work in a similar fashion, however many use different methods of mining (also known as hashing algorithms) but the concept remains much the same. Miners verify the transactions, add them to a block, the block is added to the blockchain and the transaction is executed.

Ready to Tap into blockchain transactions?

Now that you have a better understanding of how Bitcoin and altcoin transactions work, it’s about time you tapped into the seamless world of cryptocurrency transactions provided by Tap. Through the app you can buy, sell, store and spend your cryptocurrency and fiat portfolios. The app has integrated technology which ensures that users get the best market prices in real time, whenever executing a buy or sell order. Users can also store their cryptocurrencies on the platform through the bespoke backend technology which ensures the utmost security at all times.