By James Royal, Ph.D., Bankrate.com Cryptocurrencies are enormously volatile, but that volatility can create opportunities for profit if you’re looking to trade these digital assets. Cryptos such as Bitcoin and Ethereum have risen a lot since their debut — but they’ve also experienced tremendous boom-bust cycles along the way. Experienced traders have been speculating on cryptocurrencies for years, but how can you get started if you’re new to the crypto market? Here’s how to start investing in cryptocurrency and the significant risks you need to watch out for. First things first, if you’re looking to invest in crypto, you need to have all your finances in order. That means having an emergency fund in place, a manageable level of debt and ideally a diversified portfolio of investments . Your crypto investments can become one more part of your portfolio, one that helps raise your total returns, hopefully. Pay attention to these five other things as you’re starting to invest in cryptocurrencies. As you would for any investment, understand exactly what you’re investing in. If you’re buying stocks, it’s important to read the annual report and other SEC filings to analyze the companies thoroughly. Plan to do the same with any cryptocurrencies , since there are literally thousands of them, they all function differently and new ones are being created every day. You need to understand the investment case for each trade. In the case of many cryptocurrencies , they’re backed by nothing at all, neither hard assets nor cash flow of an underlying entity. That’s the case for Bitcoin , for example, where investors rely exclusively on someone paying more for the asset than they paid for it. In other words, unlike stock, where a company can grow its profits and drive returns for you that way, many crypto assets must rely on the market becoming more optimistic and bullish for you to profit. Some of the most popular coins include Bitcoin, Ethereum, Solana , Dogecoin and Tether (a stablecoin) . So before investing, understand the potential upside and downside. If your financial investment is not backed by an asset or cash flow, it could end up being worth nothing. A mistake that many new investors make is looking at the past and extrapolating that to the future. Yes, Bitcoin used to be worth pennies, but now is worth much more . The key question, however, is “Will that growth continue into the future, even if it’s not at quite that meteoric rate?” Investors look to the future, not to what an asset has done in the past. What will drive future returns? Traders buying a cryptocurrency today need tomorrow’s gains, not yesterday’s. The prices of cryptocurrencies are about as volatile as an asset can get. They could drop quickly in seconds on nothing more than a rumor that ends up proving baseless. That can be great for sophisticated investors who can execute trades rapidly or who have a solid grasp on the market’s fundamentals, how the market is trending and where it could go. For new investors without these skills — or the high-powered algorithms that direct these trades — it’s a minefield. Volatility is a game for high-powered Wall Street traders, each of whom is trying to outgun other deep-pocketed investors. A new investor can easily get crushed by the volatility. That’s because volatility shakes out traders, especially beginners, who get scared. Meanwhile, other traders may step in and buy on the cheap. In short, volatility can help sophisticated traders “buy low and sell high” while inexperienced investors “buy high and sell low.” If you’re trading any asset on a short-term basis, you need to manage your risk , and that can be especially true with volatile assets such as cryptocurrency. So as a newer trader, you’ll need to understand how best to manage risk and develop a process that helps you mitigate losses. And that process can vary from individual to individual: Newer traders should consider setting aside a certain amount of trading money and then using only a portion of it, at least at first. If a position moves against them, they’ll still have money in reserve to trade with later. The ultimate point is that you can’t trade if you don’t have any money. So keeping some cash in reserve means you’ll always have a bankroll to fund your trading. It’s important to manage risk, but that will come at an emotional cost. Selling a losing position hurts, but doing so can help you avoid worse losses later. Finally, it’s important to avoid putting money that you need into speculative assets. If you can’t afford to lose it — all of it — you can’t afford to put it into risky assets such as cryptocurrency, or other speculative assets, for that matter. Whether it’s a down payment for a house or an important upcoming purchase, money that you need in the next few years should be kept in safe accounts so that it’s there when you need it. And if you’re looking for an absolutely sure return, your best option is to pay off high-interest debt. You’re guaranteed to earn (or save) whatever interest rate you’re paying on the debt. You can’t lose there. Finally, don’t overlook the security of any exchange or broker you’re using. You may own the assets legally, but someone still has to secure them, and their security needs to be tight. If they don’t think their cryptocurrency is properly secured, some traders choose to invest in a crypto wallet to hold their coins offline so they’re inaccessible to hackers or others. Remember that investing in cryptocurrency can be part of a broader investment strategy, but shouldn’t be your only one. While investing directly in cryptocurrency is popular, traders have other ways to get into the crypto game, some more directly than others. These include: Each of these methods varies in its riskiness and exposure to cryptocurrency, so you’ll want to understand exactly what you’re buying and whether it fits your needs. In theory it takes only a few dollars to invest in cryptocurrency. Most crypto exchanges, for example, have a minimum trade that might be $5 or $10. Other crypto trading apps might have a minimum that’s even lower. However, it’s important to understand that some trading platforms will take a huge chunk of your investment as a fee if you’re trading small amounts of cryptocurrency. So it’s important to look for a broker or exchange that minimizes your fees. In fact, many so-called “free” brokers embed fees — called spread mark-ups — in the price you pay for your cryptocurrency. Cryptocurrency is based on blockchain technology . Blockchain is a kind of database that records and timestamps every entry into it. The best way to think of a blockchain is like a running receipt of transactions. When a blockchain database powers cryptocurrency, it records and verifies transactions in the currency, verifying the currency’s movements and who owns it. Many crypto blockchain databases are run with decentralized computer networks. That is, many redundant computers operate the database, checking and rechecking the transactions to ensure that they’re accurate. If there’s a discrepancy, the networked computers have to resolve it. Some cryptocurrencies reward those who verify the transactions on the blockchain database in a process called mining. For example, miners involved with Bitcoin solve very complex mathematical problems as part of the verification process. If they’re successful, miners receive a predetermined award of Bitcoins. To mine Bitcoins , miners need powerful processing units that consume huge amounts of energy. Many miners operate gigantic rooms full of such mining rigs in order to extract these rewards. As of October 2024, running the Bitcoin system burned as much energy per year as the country of Poland. If you’re looking to invest in Bitcoin, you have a variety of ways to do so, and you can work with a number of companies, including: If you’re looking to buy Bitcoin, pay particular attention to the fees that you’re paying. Here are other key things to watch out for as you’re buying Bitcoin . An altcoin is an alternative to Bitcoin. Many years ago, traders would use the term pejoratively. Since Bitcoin was the largest and most popular cryptocurrency, everything else was defined in relation to it. So, whatever was not Bitcoin was lumped into a catch-all category called altcoins . While Bitcoin is still the largest cryptocurrency by market capitalization by far, it’s no longer the only game in town. Other altcoins such as Ethereum and Solana have grown in popularity, making the term altcoin somewhat outmoded. Now with a reported 15,000 or more cryptocurrencies in existence, it makes less sense than ever to define the industry as “Bitcoin and then everything else.” Cryptocurrency is a highly speculative area of the market, and many smart investors have decided to put their money elsewhere. For beginners who want to get started trading crypto, however, the best advice is to start small and only use money that you can afford to lose. Bankrate’s Brian Baker contributed to an update of this story. ©2024 Bankrate.com. Distributed by Tribune Content Agency, LLC.AP Sports SummaryBrief at 6:25 p.m. EST
How to start investing in cryptocurrency: A guide for beginners
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Israel cracks down on Palestinian citizens who speak out against the war in Gaza UMM AL-FAHM, Israel (AP) — In the year since the war in Gaza broke out, Israel's government has been cracking down on dissent among its Palestinian citizens. Authorities have charged Palestinians with “supporting terrorism” because of posts online or for demonstrating against the war. Activists and rights watchdogs say Palestinians have also lost jobs, been suspended from schools and faced police interrogations. Palestinians make up about 20% of Israel's population. Many feel forced to self-censor out of fear of being jailed and further marginalized in society. Others still find ways to dissent, but carefully. Israel's National Security Ministry counters that, “Freedom of speech is not the freedom to incite.” Israel says rabbi who went missing in the UAE was killed TEL AVIV, Israel (AP) — Israel says the body of an Israeli-Moldovan rabbi who went missing in the United Arab Emirates has been found, citing Emirati authorities. The statement from Prime Minister Benjamin Netanyahu’s office on Sunday said Zvi Kogan was killed, calling it a “heinous antisemitic terror incident.” It said: “The state of Israel will act with all means to seek justice with the criminals responsible for his death." Kogan went missing on Thursday, and there were suspicions he had been kidnapped. His disappearance comes as Iran has been threatening to retaliate against Israel after the two countries traded fire in October. Hezbollah fires more than 180 rockets and other projectiles into Israel, wounding at least 7 BEIRUT (AP) — Hezbollah has fired at least 185 rockets and other projectiles into Israel, wounding seven people in the militant group's heaviest barrage in several days. The attacks in northern and central Israel happened Sunday in response to deadly Israeli strikes in central Beirut on Saturday. Meanwhile, negotiators pressed on with cease-fire efforts to halt the all-out war. Lebanon's military says an Israeli strike on a Lebanese army center in the southwest killed one soldier and wounded 18 others. Israel's military has expressed regret and said its operations are directed solely against the militants. Lebanon’s caretaker prime minister condemned the latest strike as an assault on the U.S.-led cease-fire efforts. The rising price of paying the national debt is a risk for Trump's promises on growth and inflation WASHINGTON (AP) — Donald Trump has big plans for the economy. He also has big debt problem that'll be a hurdle to delivering on those plan. Trump has bold ambitions on tax cuts, tariffs and other programs. But high interest rates and the price of repaying the federal government’s existing debt could limit what he’s able to do. The federal debt stands at roughly $36 trillion, and the spike in inflation after the pandemic has pushed up the government’s borrowing costs such that debt service next year will easily exceed spending on national security. After Trump's Project 2025 denials, he is tapping its authors and influencers for key roles WASHINGTON (AP) — During the campaign, President-elect Donald Trump had hailed what would become Project 2025 as a conservative roadmap for “exactly what our movement will do." Trump pulled an about-face when Project 2025 became a political liability. He denied knowing anything about the “ridiculous and abysmal” plans, even though some were written by his former aides and many allies. Now, after winning the 2024 election, Trump is stocking his second administration with key players in the effort he temporarily shunned. Trump has tapped Russell Vought for an encore as director of the Office of Management and Budget; Tom Homan, his former immigration chief, as “border czar;” and immigration hardliner Stephen Miller as deputy chief of policy. Forecasts warn of possible winter storms across US during Thanksgiving week WINDSOR, Calif. (AP) — Forecasters in the U.S. have warned of another round of winter weather that could complicate travel leading up to Thanksgiving. California is bracing for more snow and rain this weekend while still grappling with some flooding and small landslides from a previous storm. The National Weather Service has issued a winter storm warning for California's Sierra Nevada through Tuesday, with heavy snow expected at high elevations. Thousands remained without power in the Seattle area on Saturday after a “bomb cyclone” storm system hit the West Coast earlier in the week, killing two people. Parts of the Northeast and Appalachia also began the weekend with heavy precipitation. Pakistan partially stops mobile and internet services ahead of pro-Imran Khan protest ISLAMABAD (AP) — Pakistan has suspended mobile and internet services “in areas with security concerns” as supporters of imprisoned former premier Imran Khan gear up for a protest in the capital. The government and Interior Ministry made the announcement on X, which is banned in Pakistan. Sunday's protest is to demand Khan's release. He has been in prison for more than a year but remains popular. His supporters rely heavily on social media and messaging apps to coordinate with each other. Pakistan has already sealed off Islamabad and shut down major roads and highways connecting the city with Khan's power bases. Here's what to know about the new funding deal that countries agreed to at UN climate talks BAKU, Azerbaijan (AP) — In the wee hours Sunday at the United Nations climate talks, countries from around the world reached an agreement on how rich countries can cough up the funds to support poor countries in the face of climate change. But it’s a far-from-perfect arrangement, with many parties still unsatisfied but hopeful that the deal will be a step in the right direction. Japan holds Sado mines memorial despite South Korean boycott amid lingering historical tensions SADO, Japan (AP) — Japan has held a memorial ceremony near the Sado Island Gold Mines despite a last-minute boycott of the event by South Korea that highlighted tensions between the neighbors over the brutal wartime use of Korean laborers. South Korea’s absence at Sunday’s memorial, to which Seoul government officials and Korean victims’ families were invited, is a major setback in the rapidly improving ties between the countries. The Sado mines were listed in July as a UNESCO World Heritage Site after Japan moved past years of disputes with South Korea and reluctantly acknowledged the mines’ dark history. Chuck Woolery, smooth-talking game show host of 'Love Connection' and 'Scrabble,' dies at 83 NEW YORK (AP) — Chuck Woolery, the affable, smooth-talking game show host of “Wheel of Fortune,” “Love Connection” and “Scrabble” who later became a right-wing podcaster, skewering liberals and accusing the government of lying about COVID-19, has died. He was 83. Mark Young, Woolery’s podcast co-host and friend, said in an email early Sunday that Woolery died at his home in Texas with his wife, Kristen, present. Woolery, with his matinee idol looks, coiffed hair and ease with witty banter, was inducted into the American TV Game Show Hall of Fame in 2007 and earned a daytime Emmy nomination in 1978. He teamed up with Young for the podcast “Blunt Force Truth” and became a full supporter Donald Trump.
An online debate over foreign workers in tech shows tensions in Trump’s political coalition
Home for the holidays? Show relatives you care with some tech supportGameStop shares surge after cryptic post from ‘Roaring Kitty’: ‘Seen that pattern again’While much of the media's attention has been squarely focused on Nvidia , longtime tech behemoth Microsoft ( MSFT 1.00% ) is an artificial intelligence (AI) force to be reckoned with as well. The company is a close partner of OpenAI, having invested billions of dollars in the creator of ChatGPT. Aside from this direct investment, Microsoft's Azure Cloud is the favored provider for ChatGPT's computational needs. Generative AI models like ChatGPT require enormous amounts of computing power, the kind that few companies have the resources to provide. Microsoft is one of those companies. Investors have generally favored the company over the last few years -- although not to the degree some of its peers have enjoyed -- in large part because of its relationship with OpenAI and Azure's success. So why did the head of one of the most successful hedge funds on Wall Street, Ken Griffin, sell nearly 70% of his stake this year? Citadel is making moves First, let me note that although Griffin's fund, Citadel, sold shares in the first two quarters of 2024, it actually bought shares last quarter. However, its third-quarter purchase of roughly 20,000 shares is dwarfed by the combined 3 million shares Citadel let go in the first half of the year. It's not just Microsoft, however. In Q3, Griffin sold about 90% of his Amazon and Apple stakes, 80% of his Bank of America shares, and 95% of his Walt Disney stakes. On the other hand, Griffin bought nearly 5 million shares of Nvidia and 7 million shares of Citigroup . This is all to say that Ken Griffin runs an active fund, and it is not unusual for him to sell a large position only to reenter a few quarters later. It's not clear if he's lost faith in Microsoft in the longer term, or if he sees a more short-term opportunity. There are reasons to believe it could be the former, though. Microsoft and OpenAI's relationship may be on rocky ground OpenAI is unique, and not just because it's a pioneer in modern AI. It was founded as a non-profit, transitioned into something of both a for- and non-profit, and is now evolving into entirely for-profit. Microsoft invested its billions in the second of those stages, reaching an agreement where a cap was placed on how much return Microsoft could earn. Now, OpenAI is inviting a new round of investment while removing the cap. Although Microsoft is a part of it, it is not "leading" the round -- lead investors usually receive the most favorable terms and enjoy the most influence. This has reportedly caused a rift in their relationship and could lead to legal woes in the future. This is not great for Microsoft. Its "golden goose" may not really belong to it, at least not in the way many investors had hoped. How much independence OpenAI walks away with remains to be seen, but Microsoft seems to be hedging its bet, having hired talent from OpenAI's competitors to flesh out its AI program in-house. Microsoft may come under regulatory fire It was reported last week that the U.S. Federal Trade Commission (FTC) is preparing to launch an investigation into "anti-competitive practices" at Microsoft, specifically its Azure Cloud. The FTC is looking into allegations that Microsoft is making it difficult for customers to switch from Azure by imposing harsh and unfair terms. This wouldn't be the first time the FTC investigated Microsoft, and the company is certainly not the only tech company currently drawing unwanted attention from the regulator. Still, keep your eyes peeled for more news here. Microsoft is still a great company While it would certainly be a blow to the company for it to lose its close relationship with OpenAI, I think Microsoft's continued success in AI is likely given the strength of Azure. Microsoft isn't showing the kind of growth I'd like to see given the premium its stock is carrying -- it's currently trading at 35 times earnings -- but it's not outrageous for the tech sector. Ultimately, I think there are probably better opportunities in the market, but Microsoft can still be a solid part of a well-diversified portfolio.
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“You got to be a millionaire, or some kind of petit bourgeoisie... to live like somebody in this country.” The Mighty Sparrow’s lyrics remain eerily relevant as Trinidad and Tobago’s trade unions rally against what they view as government hypocrisy. Among them is OWTU President General Ancel Roget, a polarising figure whose fiery rhetoric has now found an unlikely ally: the common man. For years, trade unionists have been seen by many as not too far removed from the politicians they critique. The trajectory of some, moving from the picket line to Parliament, has often left the public sceptical of their intentions. However, currently, Roget’s complaints strike a deep chord with many who, despite their misgivings, find themselves publicly or privately supporting his call to action. Roget has demanded that citizens join the unions in protest against the glaring inequities perpetuated by the Government. However, as is often the case, the common man is caught between indignation and practicality. Financial constraints and the spectre of victimisation loom large. To miss a “day’s pay” is a sacrifice too great for many, and to risk backlash is an even steeper cost. So, we find ourselves at an impasse—a nation with a long history of protests yet divided on their effectiveness. Our demonstrations have always been a mix of approaches: from quiet vigils to boisterous roadblocks, complete with burning tyres and obstructed roads. One might question the impact of such methods, nonetheless for many, these acts are not just displays of frustration—they are their only means of being heard. For those overlooked and marginalised, protest becomes a necessary outlet, a chance to channel the combined anguish of being ignored. Yet, there exists another side of society, one shielded by privilege and influence. This segment rarely feels the need to march or block roads. With a mere phone call, they can resolve injustices or bypass them altogether, living far removed from the struggles of the masses. It is this divide that reveals the deeper issues within our society. As trade unionists and citizens alike threaten to take to the streets, those with privilege often watch from a distance, quick to condemn or dismiss such actions as disruptive or unnecessary. However, the local adage, “Who feels it, knows it,” cuts through this detachment. For the common man, these demonstrations are not a choice—they are a lifeline. Roget’s rallying cry mirrors this reality. His critique of government decisions—particularly the acceptance of the SRC’s salary recommendations—has struck a chord. The union leader’s frustration is palpable, his words blistering: “If the people cannot get it, nobody should get it.” His words point to an enduring truth: the widening gap between the governed and the governing, where austerity is demanded of some while others enjoy the spoils of power. The Government’s acceptance of pay increases for top officials while offering a meagre 4% raise to public-sector workers has added fuel to the fire. Public servants, teachers and healthcare workers—those who form the backbone of the nation—are left to shoulder rising costs with their wages. Meanwhile, their leaders claim that anything more generous than 4% would bankrupt the country, only to turn around and reward themselves. Roget’s critique extends to the nation’s peculiar silence. Were another administration to make such a move, the backlash would likely be swift and unforgiving. Yet partisan loyalty and the accompanying reluctance to criticise one’s own, has muted the response. Citizens who might otherwise take a stand find themselves bound by political colours, unwilling to risk alienation within their communities. Nonetheless, the trade union leader’s call for solidarity is not just a demand for action—it is a plea for unity. Beyond the protests, there lies an opportunity for those with privilege and influence to recognise their responsibility. The disparities in our society cannot be ignored, nor can the struggles of those who feel the brunt of inequity. Rather than condemnation, this moment calls for empathy and support. As Sparrow lamented, “To provide for your family... on your present salary is an impossibility.” This impossibility is the lived reality of many citizens, who struggle to make ends meet while witnessing their leaders insulate themselves from hardship. Those shielded by wealth or connections must acknowledge their role—not in exacerbating these divides, but in bridging them. Protests, regardless of style, are a cry for help. Their impact may be debated, but their necessity is undeniable, solidarity remains essential in a just society. The call to action is clear. The question is not whether to act, but how. Will we continue to prioritise partisan politics and personal gain, leaving the common man to fend for himself? Or will we rise above our divisions and answer the call for fairness, equity and dignity? History has its eyes on us and so does the next generation. Let it not be said that we were a nation of colours, blind to the struggles that bind us together. Let it be said instead that, in the face of inequity, we stood as one.CNBC Daily Open: The perils of market predictionsPatriots to wear navy-silver combo again in Week 12 vs. Dolphins