Trading in cryptocurrency has become a full-fledged exchange game tool. Virtual money as a trading tool is offered by brokers and exchanges, which is why there are more and more active players on the market. However, this asset has its own characteristics, which are important to know in order to increase the chances of profit.
Let’s start with a simple question: what is it worth investing in? At the end of 2017, there are more than 1,300 types of cryptocurrency in the world. They differ in production technology, practical application and most importantly – in terms of capitalization.
The leader in the last point is bitcoin, the capitalization of which has already exceeded $ 185 trillion. This is more than 33% of the volume of all cryptocurrencies, which divides the market into two parts: Bitcoin and Altcoins (a term that all other digital money is collectively called, include Ethereum, Lightcoin, etc.).
Market access is provided by online traders, such as Amarkets. The choice of a trader is half the success. Cryptocurrency tool is young, and only experienced companies can guarantee reliable trading with it. AMarkets has been on the market for 10 years and is known for a high percentage of successful investors.
Bitcoin – the way to a bright future?
Bitcoin – this is the first representative of digital money, which appeared about 10 years ago. Then only a narrow circle of initiates knew about him and about cryptocurrencies. The first BTC / USD course appeared in 2009, when the asset was listed on the stock exchange, and it was $ 1 for more than one thousand three hundred bitcoins.
It is difficult to say whether the creators of the tool had planned its loud success or not, but the December course of $ 20,000 for one bitcoin showed who is the boss here. However, the coin did not stay “on horseback” for a long time and in early February, it sank down to a record low number of points, up to $ 6000. Has the “bubble” burst or will it continue to “bloat” in the foreseeable future? In this, AMarkets analyst Artem Deev will help us to make out:
The course on Bitcoin is held partly due to the strong demand from large investors in South Korea and Japan. Since the second half of November, large Chinese “family offices” have also begun to invest in cryptocurrency.
These events on the economic scene in late November – early December, of course, added the coefficient of confidence in the tool, which by all indicators should have continued growth. However, the situation has changed dramatically, and the introduction of bitcoin futures has played rather a minus. In addition, world authorities, including the governments of China, India and South Korea, began to take active regulatory measures, which undermined investor confidence in the instrument.
Today, to give a clear forecast for the future of the main virtual coin is difficult. It is assumed that the price may still rise in the near future, but the decline of the “bubble” is just around the corner.
Altcoins. Why the latter?
If the word Bitcoin responds in each ear, then the words Aether, Laitcoin, Rippl, etc. relatively recently began to win popularity.
Such cryptocurrencies as Ethereum (Ether), Lightcoin (Lightcoin) or Ripple (Ripple), although they are inferior in capitalization (remaining in the top ten, nevertheless), but show an intensive growth rate.
So Lightcoin began to beat his records in mid-December, breaking out to $ 250 from $ 90 in just 5 days. In February, the coin confidently holds the level of $ 220 – $ 230.
Aether is interesting for investors, as it can be useful for transactions of banks that invest large sums in this project. This cryptocurrency is now capitalized at $ 92 billion, holding itself for a long time in second place after BTC.
From this position, Altcoins can become a more profitable and simple investment than Bitcoin, because of the relatively low price, and strong growth.
Vadim Kravchuk, analyst at AMarkets broker, advises traders in late December:
With zero volatility on the stock exchanges with conventional instruments, you can temporarily shift your attention to cryptocurrency and try this type of trading. However, it is worth remembering the risks.
Indeed, the course of cryptocurrency is extremely volatile, and crypto-trading requires a deep knowledge of the market and understanding of the processes. One way to minimize risk is to diversify investments, or create a crypto portfolio.
An example of such a KRYPTOPORTFELA recommended by the analytical department is provided by AMarkets. You simply invest in some of the most promising cryptocurrencies — Bitcoin, Ether and Lightcoin, spreading the risks and increasing the chances of profit.
Also, AMarkets provides its clients with free training materials, webinars, and current technical analysis. Since any trade in the forex market carries with it the risk of losing a deposit, it is important to approach the matter as informed as possible, with knowledge of market processes and trading technology.