HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
MultiBank Group information and reviews
MultiBank Group
84%

Cryptocurrency Post Apocalypse


At the junction of 2018 and 2019, bitcoin’s price was at the bottom – the asset was trading at 3200 dollars. This was the price level of mid-2017, when federal television channels just started to talk about cryptocurrencies, and Bitcoin was preparing for its rapid rise to 18 thousand dollars per unit.

After the “crypto apocalypse” in early 2018 and the rapid collapse of almost all cryptocurrencies, only the most consistent optimists believed in a new take-off. However, in April this year, bitcoin increased sharply, and by the beginning of May it almost reached a price of 6 thousand dollars. Moreover, the growth continues.

Is it a good idea to keep investing in cryptocurrencies further? Or is it better to wait for new breakthroughs? Is it possible to count on bitcoin more than on a lottery ticket? We give the answers in this article.

“Crypto thaw”


The cryptocurrency market has warmed up a bit over the past couple of months, but not a single authoritative expert or institution predicts such results as in December 2017. Hype around cryptocurrencies has subsided, it will no longer be possible to buy bitcoin today and sell twice as expensive in a week. However, crypto assets are still in operation, and you can make money on them if you invest wisely.

Bitcoin itself now has no prerequisites for growth. The most likely explanation for the April jump is the placement in Asian markets of an order for the purchase of a large volume of BTCs, that is, tens of millions of dollars. Such a big deal made the market push the cryptocurrency up.

Bitcoin today is a kind of gold in the cryptocurrency world. Most other cryptocurrencies are much more volatile, and the BTC acts as a kind of guideline where the entire cryptocurrency market is moving. At the same time, almost every cryptocurrency has a certain technology that this coin is promoting. While Bitcoin is a “thing in itself”, personifying the very phenomenon of crypto money.

An example of technology is the Etherium coin, which works on the basis of smart contracts, a breakthrough idea for its time. Its essence is that the parties describe the terms of the contract in machine language, and automation monitors their actual implementation. If a party does not fulfill an obligation, it will not receive payment. Thanks to the technology of the distributed registry - when data is encrypted stored on thousands of different computers - it is almost impossible to deceive such a system.

An equally interesting example is the Dogecoin currency, created almost in jest and named after a dog from an Internet meme. The joke turned out to be so successful and technologically advanced that its capitalization exceeded one billion dollars, surprising many of its creators.

The author of the project, Jackson Palmer, stated in 2015, even before the cryptocurrency hype started: “It is worrying that most conversations in the media and between specialists focus on the investment potential of cryptocurrencies, as this distracts attention from the underlying technologies and goals that are set in the basis of this movement.”

Technological basis


Before investing in a coin, you need to study what technology is behind it. Ideally, it is worth talking to the authors of the project – as a rule, they leave their data publicly available. Such investments are not much different from the classic venture projects: an investor studies offers from dozens of startups, selects some of the most interesting, and only one or two make a profit. However, this profit is so significant that it compensates for losses from all other projects.

There are a number of cryptocurrencies that still bring incredible profits. For example, Paragon for seven days showed a yield of 2000%. The Repo coin proved to be much smoother, but no less impressive, having risen in price immediately by 989.32% over the past 6 months. However, it is important to understand that investing in cryptocurrencies is a huge risk. Tokens equally easily add thousands of percent and lose them.

15 minutes of fame


It is equally important when choosing an asset to monitor its media support. The success of a coin largely depends on how much hype its creators can provide in the media. A kind of mini-hype that ensured the explosive growth of bitcoin a year and a half ago.

Simply put, the winning team is the one that can provide a winning PR to its coin and the well as the opportunity to provide quick buy-ups of tokens at the initial stage, so that they show rapid growth. In addition, there are a lot of scammers in the primary token placement market who just want to raise money and disappear.

In any case, do not allocate more than 10% of the total investment to risky assets. Experts will help to create a competent portfolio in which there is a place for stocks, bonds and several tokens.

The most notable cryptocurrencies of 2019


The physical meaning of cryptocurrencies


Cryptocurrencies are virtual money, they cannot be touched or put into an envelope, cannot be credited to a bank account or put into a safe. There is only one way to store digital money - a cryptocurrency wallet. This is a program that stores keys for all transactions carried out, confirming your right to use money. The entrance there is closed with a password and, as a rule, two-step authentication, for example, through an account in Google.

Wallets can be both for one type of currency, for example, only Bitcoin, and multi-currency. Such functionality is offered by the services of Jaxx, HolyTransaction, Coinomi, Cryptonator, etc.

The easiest way to buy and sell cryptocurrency is a wallet. As a rule, it has the function of exchanging for ordinary money or other types of crypto. You can register on cryptocurrency exchanges and trade through their trading functionality. This process is no different from working with a regular exchange, except that these institutions are not regulated by law. There are no shock protection mechanisms that exchanges have learned after various financial crises. The rights of traders are not protected, the safety of the sites is solely on the conscience of their owners. The most famous brands in this area: Bitfinex, Bittrex, Binance, Polonex and GDax.

The lack of legislation and a system to protect cryptocurrencies from shocks make them an extremely unreliable way to make money. Reverse side of the coin: profit of 1000%. In other words, it is possible to invest in cryptocurrencies, this is not regulated by law in Russia and most countries, and the risks are high. You should not bet on such an asset and invest in it a significant part of the portfolio. Moreover, you should not count on such an asset in the long run: you need to enter and exit transactions quickly, within a few days.


Conclusion

Author: Kate Solano, Forex-Ratings.com

RELATED

STP Broker: Definition, Characteristics, and Advantages

A Straight Through Processing (STP) broker is a forex brokerage firm that provides wholesale forex services orders to institutional traders. The STP broker was built from the exchange...

Short selling as a way to profit

Short selling is a method of stock trading that allows investors to profit from an investment vehicle that is going down in value and that they do not own...

MultiBank Group: Spot Bitcoin ETFs: Revolutionizing Cryptocurrency Investment Landscape

The emergence of Spot Bitcoin Exchange-Traded Funds (ETFs) marks a transformative phase in cryptocurrency investment. By offering a regulated pathway to Bitcoin's price movements...

Bitcoin Cash: Will It Reach Great Heights Again?

All financial markets have ups and downs, and Bitcoin Cash fits this rule just like any other cryptocurrency. But due to the novelty, these cycles of increase or decrease...

HF Markets Enhances Its HFcopy Trading Platform for Enhanced Trading Synergy

HF Markets has announced significant upgrades to its HFcopy program, catering to both Strategy Providers (SPs) and Followers, thereby solidifying its position as a premier copy trading platform...

What is hedging? Protecting assets from market storms

Hedging in the financial markets is one of the risk management techniques. It’s a sort of insurance cover to protect against potential losses from an investment...

The Modern Day Trader's Guide: Understanding Time Commitment and Strategies in 2024

As the curtain closes on 2023, with the S&P 500 signaling a moderate gain, the focus shifts to the landscape of day trading in 2024. Day trading, a practice where traders capitalize on intraday...

TOP 10 Gold-Backed Cryptocurrencies

Cryptocurrency, being a relatively new asset, has many people interested, but it can also be used for just pure speculation. Digitizing ownership of gold is an area of interest that...

How to Strategically Short Bonds

Bonds, traditionally seen as stable income-generating securities, have evolved in today's dynamic investment landscape. Their prices, influenced by an array of market determinants...

Advantages and disadvantages of forex rebate

If you are really concerned about your profit on the forex market you should definitely use one of the mayor forex rebate providers...

What is Risk Management in Finance?

Risk management in the Finance industry refers to the process of identifying, evaluating, and mitigating risks of losses in an investment...

WETH vs. ETH: What’s the Difference?

Ethereum (ETH) and Wrapped Ethereum (WETH) are two digital assets that have become increasingly popular in the world of decentralized finance (DeFi). While both assets share many similarities...

Trading robots. Should you use them in Forex trading?

To increase the profitability of trading on the Forex market, some private traders and investment companies...

Top 7 forex trading strategies in 2020

The foreign exchange (forex) market is a global marketplace where the participants exchange one national currency for another. According to Wikipedia...

Cardano: What Price Will the Peer-Reviewed Crypto Reach?

Cardano was late to the crypto market compared to many others, but the altcoin crypto asset is brimming with innovation, giving it incredible projected...

Understanding Pivot Level Indicators

On all timeframes, without exception, support and resistance levels are of great importance. However, novice traders often do not know how to determine them...

Where will the COVID-19 pandemic lead the United States?

Last week, US government debt set a new historical maximum. The milestone of $25 trillion was taken. The situation deteriorated sharply in April 2020 due...

How to Get into Online Metal Trading with IronFX?

The most popular precious metals in metals trading are gold and silver. The latter is strongly linked to the main currencies and the world economy as a whole. Precious metals have long been...

Copy Trading Strategies: How to Start Successful Copy Trading

To be a successful copy trader, you need to understand quite a bit of nuance and things to ensure that it is the profitable venture you are hoping for...

Top Tech Trends of the Future for Trading

Tech development impacts our daily lives as well as traders’ profits. Technologies change rapidly, creating new opportunities in everyday routine and the stock market...

XM information and reviews
XM
82%
FP Markets information and reviews
FP Markets
81%
FXTM information and reviews
FXTM
80%
AMarkets information and reviews
AMarkets
79%
Octa information and reviews
Octa
79%
BlackBull information and reviews
BlackBull
78%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.