Will the Price of FTT Go Up in 2024?

It is hard to say since most of the signs are pointing to bearish sentiments. The recent uptick of 28% was caused by FTX Japan’s announcement to open withdrawals on the exchange. That is not a long-term utility, it merely gives hope FTT holders that they will recover their funds from the exchange.

That said, FTX’s new CEO John Ray has said the FTT is thinking about reviving tits business. Ray started a task force to explore options available to restart the exchange. The CEO has decided to go this route since he believes that that this, FTX’s customers may get more value than simply liquidating the assets.

But the broken trust caused due to FTX’s debacle have long-term implications. Even if the FTX exchange returns, it is highly unlikely that the now wiser cryptocurrency traders will opt for it.

That said, like the FTX Japan development, other positive news regarding FTX may be able to shortly push the price of this asset. But investors must always expect retrace. With that said, it is highly unlikely for FTT to go much higher in 2024.

How to Choose the Right Crypto Broker

Given the large number of brokers from whom to buy FTT, it’s vital that you pick the finest choice available. Consider the following aspects when you search for the best broker for you:

1. Fees

What is the relevance of selecting a low-cost broker when trading cryptocurrencies like FTX token? Because costs can add up rapidly. Before choosing a trading platform, get a breakdown of the broker’s fee structure. Withdrawal and deposit fees, as well as transaction and trading fees, should all be included.

2 – Safety

The right broker should have suitable safety and security measures in place to prevent unauthorised access to your money.

3. Support

A reputable broker will also have a strong customer service department to assist you with your every requirement.

4. Deposit Options

You want to be able to deposit as much money as possible. There are numerous options available, ranging from bank transfers to credit cards to payment processors. Just bear in mind that each one has its own set of costs.

When you’re considering an investment, follow these things:

Every cryptocurrency comes with risks, and this is especially true in the case of FTT. So, whenever you invest, you mustn’t get drawn into FOMO. Apart from following others, you must conduct your research before investing in any digital asset.

1 – Research, research, research: Before investing your money, excellent and comprehensive research about the product must be done to avoid risks associated with them.

Here are the different methods we looked into:

1. Exploring Social Media platforms.
2. Analyzing upcoming events.
3. Research the fundamentals.
4. Discover trending topics.
5. Utilize the power of niche forums.
6. Go to crypto meetups.
7. Observe transaction volume.

2 – Monitor the market:

Monitoring the market is a second step in knowing more about your selected product/ digital asset. The market could move in a different direction from your expectations, and keeping your calm when the market is moving in another direction is also an essential factor. The best way to monitor the market is to go through the review sites and recommendations on them.

Buying FTT as a CFD Product

Contracts for differences (CFDs) are derivatives that allow you to speculate on multiple financial markets without owning the underlying asset. It is widely used in established markets such as foreign exchange currency pairings, stocks, bonds, indices, and commodities.

Trading CFDs entails more than simply buying and selling; it also entails agreeing to swap the difference in an asset’s price when the contract is opened and expires.

CFD trading has made its way into the cryptocurrency industry, and FTT is now available as a CFD product. If you’re having trouble understanding bitcoin trading and where to keep your crypto funds, you may use CFDs to profit from FTT. We recommend trading FTT CFDs on the Binance or coinbase platforms since these are regulated and allow you to choose from various analytical tools.

Taxation on FTT Earnings:

Regulators, notably the Securities and Exchange Commission (SEC), are attempting to control the cryptocurrency market because it is still young and developing. Furthermore, the Internal Revenue Service has been attempting to establish a cryptocurrency tax structure. Cryptocurrencies and digital assets are currently treated as properties and are subject to capital gains tax. However, under some circumstances, some cryptocurrency earnings are considered income and fall into the income tax category. When exchanging digital assets, the following taxable events qualify for capital gains and income taxes.

The Internal Revenue Service (IRS) issued IRS Notice 2014-21, IRB 2014-16, providing guidance for individuals and corporations on the tax treatment of virtual currency transactions. Individuals who have bitcoin as a capital asset but are not in the trade or business of selling cryptocurrency might find answers in the IRS’s Frequently Asked Questions on Virtual Currency Transactions.

Profit is referred to as gain in the tax world. It’s the difference between your tax basis (typically what you bought for the shares plus transaction charges) and the amount you get when you sell or exchange them.

Taxable events that are considered property gains tax in the US:

• Exchanging your cryptocurrency for fiat money

• Making purchases with crypto.
• Swapping one cryptocurrency for another – whether through an exchange or a peer-to-peer (P2P) channel – is common.

Taxable events that are considered income taxes:

• Block rewards from cryptocurrency mining

• Crypto assets are earned from liquidity pools (LPs) or staking.

• Receiving crypto for services rendered

• Getting crypto from an airdrop

• Earning interest from lending to decentralized finance (DeFi) platforms

Be aware that you can write off your capital gains tax through losses incurred from trading. You can also save up to $3,000 of your income taxes, depending on how long you have held on to an asset.

Taxation on buying FTT 

Calculating Your Capital Gains Tax

In the last year, the crypto market has grown at an exponential rate, and government agencies are attempting to gain information about it. The IRS is also aiming to obtain a piece of the crypto pie, given the recent surge in the non-fungible token (NFT) sub-sector. The number of capital gains tax rates for cryptocurrencies is generally determined by two factors: first, your income tax bracket, and second, how long you have held on to your crypto asset. This will assist you in calculating:

a.) Capital Gains on Short-Term Investments

The amount of short-term capital gains tax you must pay is primarily determined by how long you’ve been trading or owning cryptocurrencies. You will be taxed under your normal tax bracket if you have made gains or losses from trading or owning crypto for less than a year. Losses incurred during that trading year may be valuable. You can write off up to $3,000 in taxes if you use a tax-loss harvesting plan. You also have the option of deferring your taxes to the next year.

b.) Capital Gains on Long-Term Investments

Long-term capital gains apply if you have been trading cryptocurrencies for upwards of a year. You will pay taxes between the range of 0 to 20% depending on your income. We have itemized the income tax brackets on this link.

Automated Trading With Robots

A trading robots is a computer programme that, on a computerised basis, executes all of the activities of a professional trader on an exchange. The computer software is a fully automated version of tried-and-true trading techniques. Regardless of the direction in which asset values are moving, robots tend to outperform humans during periods of substantial market volatility. This is because they rely on trading strategies that are meant to generate profits even when the market is down.

In addition, the most successful bitcoin bots in the world are known for their lightning-fast research and execution. As a result, they can complete a huge number of transactions every day and thereby take advantage of any trading opportunities that arise.

Trading FTT can be a difficult profession for anyone, and there is no assurance that your market analysis will result in a profit. There are other sure ways to grow your capital with little to no effort to get around this problem. Ideally, the bots make a profit, and that profit is bigger in risk-adjusted terms than if you had just bought and held the same coins throughout.

Trading bot software is unregulated, so you should only deposit funds into bots that you can afford to lose. Our review team has a vetting system to help filter out genuine trading software from the rest. Some of the notable trading robots that we’ve reviewed include:

• Bitcoin Miner
• Bitcoin Prime
• Bitcoin Trader
• Cryptosoft

FTT Mining: Can You Mine FTT?

No, FTT is a Proof-of-Stake token and thus cannot be mined. However, when. FTX exchange was active, FTT could be staked on it in return for APY (Annual Percentage Yields.)

Decreasing Risk in FTT Investment:

Every investor needs to find ways to protect themselves from any big loss. If you want to cap your risks, then follow these rules:

Use multiple exchanges: To reduce risk in crypto trading, I use a variety of exchanges, employ hardware wallets, and invest in a variety of narratives (Oracles, Defi, or insurance). To reduce risk when trading, trade only when truly strong patterns form or when a coin has reached its bottom.

Hedge your risks: You should always have a well-balanced portfolio of investments. Use financial instruments strategically to mitigate the risk of adverse price movements. On the other hand, the investors hedge one investment by making a trade-in another.

Use a stop loss: A stop-loss order is used to restrict an investor’s loss on an adverse move in a security position. You don’t have to monitor your holdings on a daily basis if you use a stop-loss order. An investor’s ally is a stop loss. Be a note of it and make sure you stick to it. When things don’t go as planned when investing, you’ll want to know when to take your money out.

Set a target:  Short-term traders who want to manage their risk should employ take-profit orders. This is because they can exit a transaction as soon as their predetermined profit target is met, avoiding the risk of a market decline. Traders that follow a long-term strategy dislike such orders since they reduce their profits.

Fundamental & Technical analysis: When it comes to investing, I prefer to focus on coins with strong fundamentals. I only invest on rare occasions in response to news or other events. If I decide to invest, I will also do a technical analysis. I consider things like where the currency is in its life cycle. Are there any trading patterns? For the coin, there is support and resistance, recent price history, news, and forthcoming events. If I invest in fundamentally sound coins, I can stay calm even if the price changes a lot because I know the price will eventually rise.

FTT vs. Other Cryptocurrencies

FTT vs. Ether

There was once a time when staking ETH was considered better than Ethereum as it prevented the high gas fees. However, FTT currently has no use case. It had limited utility to begin with – it is an exchange cryptocurrency. And since the exchange is no more, FTT is not a better investment option than Ethereum. On the flip side, Ethereum’s transactional token, Ether, is used to streamline network operations. 

All of the Ethereum network’s programmes and services require computational power to run (and that computational power is not free). Furthermore, Ether is a payment method that network users use to pay for the services they want from the network.

FTT vs. Bitcoin

FTT is an exchange token that once powered the FTX exchange – which has been now closed. It is an ERC-20 token that once helped in reducing the transaction fee on the FTX exchange. However, post FTX-crash, FTT has no discernible use case other than being a tradable asset that has no fundamental value at the current time. Bitcoin, on the other hand, works without a central authority or banks, relying on peer-to-peer technology to manage transactions and issue new bitcoins. These tasks are delegated to the network as a whole. Bitcoin is open-source and nobody owns or controls it, so everyone can participate. Several unique characteristics of Bitcoin allow it to be used in ways that no other payment system has been able to.