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Web3 Is The Future For High-Net-Worth Individuals, But Can They Trust It?

The post Web3 Is The Future For High-Net-Worth Individuals, But Can They Trust It? appeared first on Coinpedia Fintech News Web3 can provide many benefits to high-net-worth individuals, with new and exciting opportunities for them to manage and grow their wealth. Through exposure to cryptocurrencies, NFTs and tokenized assets like art and real estate, individuals can dramatically diversify their investment portfolios and access new and exciting markets. With decentralized finance, investors can engage in staking, lending and liquidity provisioning, and potentially benefit from some attractive yields that are difficult to find in traditional finance. Anyone who is familiar with Web3 will know that it can provide enhanced financial flexibility within more dynamic and decentralized economies. But at the same time, most of those with significant funds available are cautious about increasing their exposure to digital assets. There are good reasons for this caution, as the Web3 industry’s regulatory status remains incredibly cloudy, and security is still a big question mark. It’s clear that some Web3 platforms are trustworthy, but there are many which are not, and even many of the honest DeFi protocols can still fall victim to glaring vulnerabilities in their underlying code. Still, that doesn’t mean that high-net-worth individuals should avoid investing in Web3 entirely, it just means they have to proceed with extra caution. They need to do their homework and identify legitimate platforms that have invested in strong security and worked hard to ensure compliance with global anti-money laundering and know-your-customer rules. In addition, they can focus their efforts on platforms that have achieved compliance with financial authorities in key crypto markets, such as Dubai, Singapore and Switzerland, which have already created specific regulations with Web3 in mind. Strong encryption is a must The most reliable digital asset platforms are those that use strong encryption to secure user’s personal information and encrypt as much data as it’s possible to do. Some of the most reliable cryptographic security standards include biometric and homomorphic encryption, which can mask user’s transaction details from outsiders, while multiparty computation can offer further reassurances. Biometric security uses details such as the user’s facial scan, eye scan, fingerprints or even their voice as a kind of cryptographic key that’s required to access their accounts. Such techniques go a long way towards preventing unauthorized account access. Meanwhile, homomorphic encryption is a technique that allows data to be processed without ever decrypting it, meaning that it’s never exposed to bad actors, even when it’s stolen in a breach. As for multiparty computation, this is a computing technique that splits work across multiple servers, ensuring that no single server has possession of all of the encrypted data at the same time, so even if one is hacked, the data that’s stolen is useless to whoever gains access to it. Regulatory compliance provides reassurance Affluent individuals must also consider the compliance status of Web3 platforms, as well as other indicators of their financial health, such as their funding sources, investor backing and profitability. These factors aren’t always very apparent, but one way to ensure a platform is legitimate is to consider what kind of financial certifications it has achieved. Certifications to look out for include the Swiss Financial Market Supervisory Authority or FINMA, which is the independent regulatory body that governs financial institutions in Switzerland, including banks, investment companies and crypto exchanges. It’s known for its risk-based approach to supervision of such institutions, and it works to identify threats that might put such organizations at risk of financial crimes. It’s especially vigilant about money laundering and the finance of terrorism, and conducts regular audits and reviews of any certified institutions. Others include the Dubai Financial Services Authority or DFSA, which is the guardian of financial integrity within Dubai’s financial economy. It ensures that institutions ranging from banks to investment firms and crypto companies are in full compliance with Dubai’s stringent regulatory requirements, in adherence to its ethical standards, and maintain market integrity. Finally, a growing number of Web3 firms adhere to the regulations of the Monetary Authority of Singapore or MAS. Singapore has become a hotbed of crypto startups, and MAS does the job of regulating all such businesses in its territory. Web3’s advantage in wealth management If you can find a platform that’s regulated by all three of those organizations, you can be reassured that your finances are in safe hands, which is why the digital wealth management platform Welf stands out as a promising option for high-net-worth individuals. Welf, unlike traditional private banking services, operates 24/7, providing instant access to funds globally. Its products include tailored and exclusive investment opportunities, cash management, high-limit credit and debit cards that are accepted globally, luxury concierge services and advanced security. With it, clients can access a modern, fully-digital wealth management platform that blends traditional financial instruments with DeFi-based yield-generating opportunities and tokenized investments, expanding their financial opportunities. Welf’s native token WELF is required to access the platform, and sits at the heart of its ecosystem, as the main currency for transaction and service fees, and also as the cornerstone of its community governance mechanism. Clients are required to stake WELF tokens for access to its services and additional yield opportunities. The token is currently available via pre-sale IDOs on Polkastarter and Ape Terminal. Summing up Web3 is a vast and exciting financial ecosystem that has lots of potential for affluent individuals to diversify their portfolios and increase their wealth. However, it’s also a risky new economy that’s plagued by security concerns and scams, and that means regulatory compliance is a must for any serious investor. By achieving regulatory compliance, Web3 platforms demonstrate they’re committed to growing the decentralized finance system in a secure and ethical way, reassuring stakeholders, creating new opportunities for high-net-worth individuals.

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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Robert Kiyosaki warns ‘Global crash has started’

Up to this point, 2024 has been rather kind in terms of returns — not to mention the start of the cryptocurrency bull run and the S&P 500 at all-time highs (ATHs), but it is simply the nature of the markets to wax and wane. No uptrend or downtrend lasts forever — and being able to correctly identify that shift is a skill that can net immense profit — or prevent huge losses. It comes as little surprise that investors tend to turn to the experts when it comes to this topic. Although most market analysts are optimistic, one of the most notable dissenting voices is Robert Kiyosaki — author of the bestselling personal finance book ‘Rich Dad Poor Dad’. A noted cryptocurrency and precious metal bull , Kiyosaki has had a slight tone of change recently — now, he expects to see a market-wide crash on a global scale. Robert Kiyosaki turns bearish — but still optimistic on gold and BTC Reflecting on recent events, Kiyosaki claimed that the crash had already started — citing Europe, China, and the United States as regions facing downturns in a December 23 post made on social media platform X. Global crash has started. Europe, China. USA going down . Depression ahead? Please be smarter with your money. Hang on to your job and your money. Biggest problem are our leaders and educators. As I have often asked “What did school teach you about money?” Regardless of… — Robert Kiyosaki (@theRealKiyosaki) December 23, 2024 He urged investors to be smart with their money and keep their jobs — adding that crashes are the best time to get richer for many people. While the author and investor did not reflect on the causes of the crash, in a more far-reaching manner, he pinned the blame on educators — asking ‘What did school teach you about money?’ However, this was Kiyosaki’s most bold and notable prediction: ‘Regardless of which way the economy goes, gold, silver, and Bitcoin hold their value’. While gold and silver are proven hedges, BTC has shown an increasing correlation with the performance of traditional assets as the years go by — and there are more than enough crashes in recent memory to dispute Kiyosaki’s thesis that Bitcoin holds its value no matter what. BTC price historical chart. Source: Finbold What’s more, a crash could easily lead to large-scale BTC liquidation — with investors locking in profits and subsequently redirecting them to now-cheap equities. Is Kiyosaki right about an upcoming crash? Finally, it should be noted that the old analogy of a broken clock being right twice a day very much applies in this instance. Kiyosaki has often been accused of leveraging scaremongering tactics — he has a long history of ‘calling’ market crashes that simply fail to materialize. The S&P 500 price chart with Rober Kiyosaki’s crash predictions up to 2021. Source: @fintwit_news. Predicting market tops and subsequent reversals is such a tall order that no one has been able to do it reliably and on a consistent basis. Even the investors who have the best track record in terms of predictions tend to overshoot — or as a common joke goes, they’ve predicted 20 out of the last 4 crashes. That’s not to say that there isn’t value in Kiyosaki’s line of reasoning — allocating a certain portion of holdings to defensive stocks, hedges like gold and silver, and even diversifying into digital assets like Bitcoin can serve to reduce risk — provided that it is done sensibly. Disclaimer: The featured image in this article is for illustrative purposes only and may not accurately reflect the true likeness of the individuals depicted. The post Robert Kiyosaki warns ‘Global crash has started’ appeared first on Finbold . coinpedia

Dogecoin (DOGE) Price Can Skyrocket by 12,000% If History Repeats

TL:DR; Dogecoin was once the top-performing cryptocurrency after Donald Trump’s victory, going from under $0.15 to almost $0.5. Although it has lost its momentum, especially in the past week or so, history shows that its most spectacular price surge during this cycle could still be around the corner. DOGEUSD. Source: TradingView Can DOGE Pull a 2021-Like Rally? Perhaps due to its affiliation with Elon Musk and his upcoming role in Donald Trump’s administration, Dogecoin skyrocketed after the US presidential elections. Its price exploded by more than 200% from its aforementioned bottom to $0.485 on December 8. After these quite impressive gains, though, DOGE started to retrace but still maintained the $0.4 level. However, that all changed last week when the market-wide crash pushed it south hard. In just a few days, DOGE’s price tumbled by nearly 40% to $0.26. Although such a massive correction sounds painful, it is not something unheard of for the crypto market, especially in the ever-volatile meme coin sector. Similar enhanced fluctuations have transpired in the past as well, which could actually suggest a more favorable future for DOGE. Popular crypto analyst Ali Martinez compared the recent crash to similar developments that took place during the bull cycles in 2017 and 2021. In both instances, the largest meme coin surged by triple-digits, retraced by 40-60%, and then shot up by four or even five digits by the end of the respective runs. In 2017, when #Dogecoin began a parabolic run, it surged 212%, retraced 40%, then rallied 5,000%. In 2021, it went up 476%, retraced 56%, then skyrocketed 12,000%. Now, in 2024, $DOGE is up 440% and has retraced by 46%. If history repeats, another parabolic rally is on the way! pic.twitter.com/uhf2kMc0Id — Ali (@ali_charts) December 23, 2024 Can DOGE Soar Above $10? Skyrocketing by 5,000% or 12,000% sounds quite bullish, but let’s look at these predictions more realistically. In 2017 and 2021, DOGE’s price was a lot more modest, and posting such massive gains seemed easier, at least on paper. If the OG meme coin is to surge by similar percentages from now on, its price and market cap would have to go to the stratosphere. For example, a 5,000% increase would put its price at over $13, and the market cap would be at over $1.9 trillion – or bigger than bitcoin’s current one. If DOGE repeats the 2021 gains, then its price would go all the way up to $31-32, and its market capitalization would be north of $4.5 trillion – bigger than Apple’s. Although these numbers sound quite far-fetched and history is no indicator of future price performances, this doesn’t necessarily mean that DOGE has peaked during this cycle. Dogecoin is still far away from its all-time high registered in 2021, and many other assets have managed to break their peaks, so DOGE might still have a lot of room for growth. The post Dogecoin (DOGE) Price Can Skyrocket by 12,000% If History Repeats appeared first on CryptoPotato . coinpedia