This article was written exclusively for Investing.com
The currency markets tend to have low price volatility. Governments manage traditional foreign exchange instruments to ensure stability, which creates confidence. However, cryptocurrencies are far from conventional as they pose a direct challenge to government control. In many ways, the digital currency asset class rejects individual governments and a move towards the globalization of money. With fixed offers and prices determined by supply and demand, digital currencies develop without government influence or control. Government events and policies affect price levels, but control is entirely in the hands of buyers and sellers of the 8,300+ tokens currently in circulation.
The is a leader in this asset class. It is the only sign that is traded on a futures market. However, for Ether, the second largest crypto by market capitalization, the futures contracts will be listed on the CME this month. The volatility of this asset class is likely to continue. In this regard, two secondary cryptocurrencies or altcoins, the TRON and the TRON, could generate increased interest in the coming weeks and months as the asset class profile continues to improve.
The statements by Yellen and Lagarde are red flags
Central banks and governments around the world have warned about asset class cryptocurrency. Shortly after the price of Bitcoin hit an all-time high of $ 42,370 per token and the total market cap for crypto topped the $ 1,000 billion level for the first time, the President of the European Central Bank issued some warnings of potential legal issues with digital assets. Christine Lagarde told reporters:
« It’s a highly speculative asset that has done bizarre deals and interesting and utterly reprehensible money laundering activities. It’s an issue that needs to be addressed globally because if there is a loophole, that loophole is being used. So I think … that global Cooperation, multilateral action is absolutely necessary that it is initiated by the G7, transferred to the G20 and then expanded. But it is something that has to be done. Approach. «
During her Senate confirmation hearing last month, the new Treasury Secretary Janet Yellen clarified her own position on cryptocurrencies:
“Cryptocurrencies are of particular importance. I think a lot of them are used … mostly for illegal funding and I think we really need to look for ways to reduce their use and ensure that the fight against money laundering doesn’t work through these channels « .
The President of the ECB and the Secretary of the US Treasury Department dampened the enthusiasm of crypto investors with their comments. They did not mention their main concern, which is also the fear of other governments around the world that digital currencies are threatening control of the money supply. Both seemed to indicate that many regulations are in sight.
However, the underlying philosophy of Bitcoin and the 8,350+ other cryptos is that they should pose a libertarian challenge to the power of central banks and governments over money. As liquidity and stimulus hit historic levels, fiat currencies have depreciated.
Correction of more than 30% of Bitcoin
After comments from the US and Europe, the price of Bitcoin fell briefly below $ 30,000 but rebounded to top $ 38,000 on Feb.4.
The graph shows Bitcoin declining more than 30% from its January 8 high to its January 22 low of $ 29,330. Market cap fell below the $ 1,000 billion level before rising back to over $ 1,100 billion this week. Higher volatility in digital currencies can be expected as government officials regulate the market.
In the meantime, it won’t be long before governments release their own cryptocurrencies. However, the fixed number of tokens in circulation poses a challenge for managing the economy with standard monetary and fiscal policy instruments.
As more people around the world begin to join the Bitcoin revolution, other digital currencies are likely to flourish, creating markets for trading and arbitrage, just like the traditional forex arena.
The ten most important cryptocurrencies could have great growth potential
is a peer-to-peer cryptocurrency and open source software project released under the MIT / X11 license. The MIT License is a legal license for free software that originated at the Massachusetts Institute of Technology in the late 1980s. X11 is the current version of the X Window System, the de facto standard graphics engine for Linux and other systems. Unix operating system.
Litecoin is one of the first Bitcoin spin-offs, or altcoin, that debuted in October 2011. Technically, Litecoin is almost identical to Bitcoin.
Litecoin or LTC is the seventh largest digital currency out of more than 8,380 different tokens in circulation.
As of Feb. 4, LTC’s market cap at the time of writing was $ 9.79 billion, or roughly 0.89% of total asset class. At $ 148.13 per token at the time of writing, LTC has not taken Bitcoin to a new all-time high.
The graph shows that LTC traded from a low of less than $ 2 to a high of over $ 355 per token. The maximum was reached in December 2017.
In a way, LTC is more useful than Bitcoin, as transactions are verified four times faster. As the seventh largest cryptocurrency, those who believe that asset class market cap will increase believe that Litecoin is inexpensive at less than $ 155 compared to Bitcoin at $ 37,000.
TRON is very speculative but could pay off
is a decentralized operating system that is based on a blockchain and uses a native cryptocurrency. The token symbol is TRX. TRX aims to build a free global digital content entertainment system with distributed storage technology that enables easy and inexpensive digital content sharing.
The TRX was originally created as a token based on, but was migrated to its own network in 2018. Tron Coin, or TRX, is next generation social media where users can create content and share it with anyone around the world. TRX is the currency that pays for content.
The TRX is the twenty-first digital currency with a market capitalization of approximately $ 2.434 billion, which is approximately 0.20% of the market capitalization of asset classes. The TRX was trading at the $ 0.03382 level on February 4th.
Since 2018, the TRX has traded from a low of $ 0.001791 to a high of between $ 0.20 and $ 0.21. The high was hit in early 2018, shortly after Bitcoin hit its first milestone above $ 20,000.
TRX is an exciting investment candidate because it allows content producers to host content on their platform without an intermediary like Netflix Inc (NASDAQ 🙂 taking on shares or commissions. TRON is a peer-to-peer technology where the developers are completely proprietary with no intermediaries.
TRON announced a partnership with Samsung Electronics Co Ltd (KS 🙂 in late 2019. TRX could generate a lot of interest because of its low price. Remember that bitcoin was only 6 cents per token in 2010. A $ 100 investment today would be worth more than $ 55 million.
Rule number 1 for investing in cryptos
The rule of thumb for investing in cryptos is to buy in times of weakness and never invest more than you are ready to lose.
Governments and regulators will use all their powers to maintain control over the global money supply. With more than 8,380 tokens in circulation and an ever increasing number, many alternative currencies will go bankrupt and investors will lose everything they paid for their tokens. A diversified approach to investing in a crypto portfolio is the most conservative method for this highly volatile and risky asset class.
The largest market capitalization tokens are likely to get the best use, attracting the greatest volume and interest from investors.
The digital currency revolution has arrived, but the asset class remains small as its market capitalization is less than half that of Apple (NASDAQ :). Investing a small percentage of your portfolio in digital currencies could pay off in the years to come.
The risk of a total loss remains high, however, as governments are likely to put more and more barriers to the development of the cryptocurrency in the coming months and years.
What future for Ethereum?
At the same time, ETH as an exchange currency stagnated from $ 133 billion in 2019 to $ 147 billion in 2020. Similar to its price
Why invest in Ethereum?
The blockchain generates cryptocurrency to reward volunteers for their work. In the case of Ethereum, this currency is called Ether or ETH. It is the second most important cryptocurrency in the world after Bitcoin.
Which cryptocurrency will explode?
|Cryptocurrency||Price ($)||Variation over the year|
|Bitcoin (BTC)||7.539||+ 96.16%|
|Ethereum (ETH)||132.9||– 5.62%|
|Ripple (XRP)||0.19||– 46.39%|
|Litecoin (LTC)||42.3||+ 32.29%|
What are the best cryptocurrencies?
What are the best cryptocurrencies of the year?
- Bitcoin – cryptocurrency No. 1. …
- Ethereum – cryptocurrency No. 2. …
- Ripple – Cryptocurrency No. 3. …
- Bitcoin Cash – cryptocurrency No. 4. …
- Litecoin – cryptocurrency No. 5. …
- Cardano – cryptocurrency no.6 …
- NEO – cryptocurrency no.7 …
- 1- Go to the Alvexo online trading platform:
When will Bitcoin explode?
Bitcoin trades at $ 8,000 in early 2020 and is now worth more than $ 34,000 after breaking the symbolic cap of $ 30,000 at the end of the year. Most of that increase was achieved in the final quarter of 2020.
When will the ripple explode?
At Ripple (XRP), the volume exploded by 1151% in November 2020.
What is the worth of Ethereum?
The characteristics of Ethereum The cryptocurrency of Ethereum is Ether, which is abbreviated to ETH. With a unit value of 179 u20ac, the total volume available on the market is more than 109 million. The capitalization of its market therefore exceeds $ 19.6 billion.
Where can you buy bitcoins?
and more intuitive brokers (Coinbase, Coinhouse, etc.). The latter are usually easier to use, but are more expensive. There are also some physical counters in Paris (Coinhouse), Caen (Bitcoin Avenue), Brest (Byzantine) or Bordeaux (Comptoir des Cybermonnaies).
How to mine bitcoins?
Bitcoin mining is based on performing a « proof of work » or proof of work
- A transaction is integrated in a block.
- Miners check whether the transaction is valid or not.
- You select the header of the last block and integrate it into the new block as a « hash ».
Which crypto should be invested in 2021?
|Surname, surname||Market capitalization||Number in circulation|
|Ethereum (ETH)||+ 134 billion euros||114 M.|
|Ripple (XRP)||+ 10.3 billion euros||45.4 billion|
|Bitcoin Cash (BCH)||over EUR 6.9 billion||18.6 M.|
|Tether (USDT)||more than 50.5 billion euros||24 billion|
Which crypto should you buy in 2020?
In our opinion, the most promising cryptocurrencies for 2020 and in the coming years are the Tezos (XTZ), the Stellar Lumens (XLM) and the ChainLink (LINK), whose prices have risen sharply in recent months.
Which cryptocurrency to buy in 2020?
6 cryptocurrencies to buy for 2020 and beyond
- Bitcoin (BTC) First of all, I’m not going to be original, but rather efficient. …
- Basic Attention Token (BAT) The success of Basic Attention Token never fluctuates from month to month. …
- Enjin Coin (ENJ) …
- Binance Coin (BNB) …
- Nexo (NEXO) …
- Ethereum (ETH)
Which stocks should be bought in 2021?
Seven new promotions
- Linedata: goal 36.30 euros. The software specialist for the financial sector held up well in 2020. …
- Haulotte: target 7 euros. …
- Hexaom: goal 42 euros. …
- Lacroix: goal 34.50 euros. …
- Reworld Media: target 4.1 euros. …
- Vilmorin: goal 55 euros. …
- Wellenstein: goal 35.10 euros.