I don’t trade crypto, and I don’t have any intention of doing so.
The underlying technology, blockchain, is certainly impressive. But unlike a little-known oil and gas ETF responsible for some of my biggest wins over the last 13 years…
There’s just more volatility in the cryptocurrency market than I’m willing to tolerate.
It’s also super unregulated –- making it a feeding frenzy for scammers.
Still, if you’re still interested in building wealth with cryptocurrency trading…
A new announcement from the Commodity Futures Trading Commission (CFTC) just opened the door to a safer, more regulated “crypto derivatives market.”
If you’re unfamiliar with the CFTC, it’s an independent agency that regulates the. derivatives markets (futures, options, etc.) to ensure the safety of customer funds.
It just okayed new futures contracts to help investors and traders at all levels manage risk on their underlying cryptocurrency assets by hedging against market moves.
This is an interesting development because it comes on the heels of Wall Street’s biggest fund managers seeking approval to offer crypto-based exchange-traded funds
And it marks a step toward the cryptocurrency trading market maturing. In other words, this kind of news should positively impact the prices of cryptocurrency assets, right?
Not really. Over the last month, the price of Bitcoin (the mother of all cryptos) has fallen 14.6%. And it’s down 9.3% since the announcement from the CFTC on August 17.
That’s not necessarily the response you’d expect from positive crypto news. But again, it circles back to what I said earlier. While you can build lasting wealth with crypto — like we’re doing with one energy ETF — there are just too many risk factors that could blunt the performance of cryptocurrency assets, even in the face of supposedly good news.
Like the Federal Reserve’s hawkish stance on interest rate hikes, for instance.
It’s been bad news for the crypto market because the more interest rates increase…
The easier it is for Investors to get risk-free inflation-beating returns from Treasury bonds, which makes investing in riskier assets like Bitcoin substantially less attractive.
Thankfully, you don’t have to keep exposing your portfolio to unnecessary risk…
Because there are more regulated and less risky futures assets to profit from.
Go here to see my “the #1 energy ETF for reliable income in uncertain times.