The Surge and Decline of AI-Driven Crypto Market
In the early months of 2023, the AI-driven crypto market soared, reaching a peak of over $4 billion. However, by the end of July, this sector experienced a notable decline, dropping to $2.6 billion. Despite this downturn, the last three months have witnessed a recovery in the AI-focused crypto landscape, with its value increasing to $3.32 billion, bolstered by an infusion of roughly $720 million.
Substantial Growth in Leading AI Cryptocurrencies
As the AI-influenced crypto market once again surpasses the $3 billion mark, the leading AI cryptocurrencies have experienced substantial growth in the last 30 days. This sector, centered around AI-related digital currencies, has seen a dynamic year, reaching a high of more than $4 billion in February.
Following this peak, however, there was a substantial decline, with $1.5 billion in value disappearing by July 2023. Specifically, at the end of July, the valuation of the AI-centric crypto economy stood at $2.6 billion.
The Role of AI Tokens in Crypto Initiatives
AI tokens are digital assets in AI-driven crypto initiatives, playing a role in embedding artificial intelligence into a range of projects. These ventures span from asset management and generative art to price prediction, as well as the functioning of decentralized autonomous organizations (DAOs), among other applications like Web3 and the Internet of Things (IoT).
Leading AI-Related Cryptocurrencies
The leading AI-related cryptocurrency in terms of market capitalization is the graph (GRT), boasting a valuation of $1.15 billion. This week, GRT experienced a 7.55% decline, yet it has surged by 60.26% against the U.S. dollar over the past month.
The digital currency fetch (FET) recorded a 3.4% increase this week and triple-digit growth over the last month, climbing 110.49%. Additionally, singularitynet (AGIX) and ocean protocol (OCEAN) saw their values rise by 53.18% and 44.37%, respectively. A significant number of AI coins have enjoyed notable gains recently.
VAI soared by 147.83%, and delysium (AGI) increased by 163.83%. In contrast, neuroni ai (NEURONI) faced a 34.34% decrease, arcona (ARCONA) dropped 29.03%, and ai meta club (AMC) declined by 18.83% this month. GNY, BCUBE, and XRT were also notable losers during the 30-day period.
The Uncertain Future of the AI-Centric Crypto Economy
As the AI cryptocurrency market navigates through a year of fluctuating fortunes, its future remains uncertain. This confluence of technology and finance, while promising, poses unanswered questions about the long-term impact and stability of AI-driven digital currencies in the global financial ecosystem.
What are your thoughts about the AI-centric crypto economy? Share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
Can I buy gold using my self-directed IRA
Although you can buy gold using your self-directed IRA account, you will need to open an account at a brokerage like TD Ameritrade. You can also transfer funds from another retirement account if you already have one.
The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.
If you do decide you want to invest your money in gold, you should look into purchasing physical bullion instead of futures contracts. Futures contract are financial instruments that depend on the gold price. They let you speculate on future price without having to own the metal. Physical bullion, however, is real gold and silver bars that you can hold in your hand.
How Do You Make a Withdrawal from a Precious Metal IRA?
First, decide if it is possible to withdraw funds from an IRA. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
You should open a taxable brokerage account if you're willing to pay a penalty if you withdraw early. This option is also available if you are willing to pay taxes on the amount you withdraw.
Next, you need to determine how much money is going to be taken out from your IRA. This calculation is dependent on several factors like your age when you take the money out, how long you have had the account, and whether or not your plan to continue contributing.
Once you know what percentage of your total savings you'd like to convert into cash, you'll need to determine which type of IRA you want to use. Traditional IRAs let you withdraw money tax-free after you turn 59 1/2, while Roth IRAs require you to pay income taxes upfront but allow you access the earnings later without paying any additional taxes.
Once the calculations have been completed, it's time to open a brokerage accounts. Brokers often offer promotional offers and signup bonuses to encourage people into opening accounts. You can save money by opening an account with a debit card instead of a credit card to avoid paying unnecessary fees.
When you finally get around to making withdrawals from your precious metal IRA, you'll need a safe place where you can store your coins. Some storage facilities will take bullion bars while others require you only to purchase individual coins. You will need to weigh each one before making a decision.
Because you don't have to store individual coins, bullion bars take up less space than other items. However, each coin will need to be counted individually. You can track their value by keeping individual coins.
Some prefer to keep their money in a vault. Others prefer to store their coins in a vault. You can still enjoy the benefits of bullion for many years, regardless of which method you choose.
Is it possible to hold a gold ETF within a Roth IRA
Although a 401k plan might not provide this option, you should still consider other options like an Individual Retirement Account (IRA).
A traditional IRA allows for contributions from both employer and employee. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP provides tax advantages because employees share ownership of company stock and profits the business generates. The money invested in ESOPs is taxed at a lower rate that if it were owned directly by an employee.
A Individual Retirement Annuity (IRA), is also available. An IRA allows you to make regular payments throughout your life and earn income in retirement. Contributions to IRAs will not be taxed
What is the benefit of a gold IRA?
There are many advantages to a gold IRA. It's an investment vehicle that allows you to diversify your portfolio. You control how much money goes into each account and when it's withdrawn.
You also have the option to roll over funds from other retirement accounts into a gold IRA. This is a great way to make a smooth transition if you want to retire earlier.
The best part is that you don't need special skills to invest in gold IRAs. They are readily available at most banks and brokerages. You do not need to worry about fees and penalties when you withdraw money.
However, there are still some drawbacks. Gold has historically been volatile. Understanding why you invest in gold is crucial. Are you looking for growth or safety? Are you looking for growth or insurance? Only then will you be able make informed decisions.
If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. A single ounce isn't enough to cover all of your needs. You may need several ounces, depending on what you intend to do with your precious gold.
You don't need to have a lot of gold if you are selling it. You can even live with just one ounce. However, you will not be able buy any other items with those funds.
What precious metal should I invest in?
This question depends on how risky you are willing to take, and what return you want. Gold has been traditionally considered a haven investment, but it's not always the most profitable choice. For example, if you need a quick profit, gold may not be for you. If you have the patience to wait, then you might consider investing in silver.
If you don't care about getting rich quickly, gold is probably the way to go. Silver might be a better investment option if steady returns are desired over a long period of time.
What Should Your IRA Include in Precious Metals?
When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. You don't have to be rich to invest in them. There are many ways that you can make money with gold and silver investments, even if you don't have much money.
You might also be interested in buying physical coins, such bullion rounds or bars. Also, you could buy shares in companies producing precious metals. You may also be interested in an IRA transfer program offered by your retirement provider.
You can still get benefits from precious metals regardless of what choice you make. They are not stocks but offer long-term growth.
Their prices are more volatile than traditional investments. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
What is the Performance of Gold as an Investment?
The price of gold fluctuates based on supply and demand. It is also affected by interest rates.
Because of their limited supply, gold prices can fluctuate. Physical gold is not always in stock.
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
3 Ways To Invest in Gold For Retirement
It is crucial to understand how you can incorporate gold into your retirement plans. If you have a 401(k) account at work, there are several ways you can invest in gold. It is also possible to invest in gold from outside of your work environment. For example, if you own an IRA (Individual Retirement Account), you could open a custodial account at a brokerage firm such as Fidelity Investments. Or, if you don't already own any precious metals, you may want to consider buying them directly from a reputable dealer.
These are three simple rules to help you make an investment in gold.
- You can buy gold with your cash – No need to use credit cards or borrow money for investment financing. Instead, cash in your accounts. This will help to keep your purchasing power high and protect you against inflation.
- Own Physical Gold Coins – You should buy physical gold coins rather than just owning a paper certificate. Physical gold coins can be sold much faster than paper certificates. Physical gold coins don't require storage fees.
- Diversify Your Portfolio. – Do not put all your eggs into one basket. This means that you should diversify your wealth by investing in different assets. This reduces risk and allows you to be more flexible during market volatility.
By: Jamie Redman
Title: The Rise and Fall of the AI-Driven Crypto Market: A Look into Recent Trends
Sourced From: news.bitcoin.com/ai-driven-crypto-market-rebounds-back-to-3-billion-amid-surge-in-leading-tokens/
Published Date: Sat, 18 Nov 2023 14:30:28 +0000
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