The 'Big 4' Cryptocurrencies to trade

Author: Forex Live | Category: Cryptocurrency

What you need to know when trading Cryptocurrencies

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The popularity of Cryptocurrency is on the rise and more and more skeptics are investing in digital assets each day. With people losing trust in central banks, coupled with the allure of investing in a digital currency which could appreciate, these factors have contributed to an industry boom.

What is even more exciting is the options available surrounding Cryptocurrencies nowadays. In the past, investors would simply buy a coin and wait/hope for the value to increase whilst running the risk of having value wiped out of an investment in a volatile market. This is avoidable now thanks to Crypto trading. Much like traditional Forex trading, Crypto enthusiasts can now trade on the projected performance of a coin without necessarily purchasing that asset.

The option of trading Crypto can be far more appealing than investing which comes with constantly monitor price performance. Thanks to leveraged trading on broker platforms, traders can concentrate on: going long and short on a range of Cryptocurrencies opposed to just investing and HODL-ING.

In this article, we will explore some of the major Cryptocurrencies which will suit day traders, scalpers, and swing traders. First of all, let's consider some factors which contribute to a good Cryptocurrency to trade

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What factors to consider when trading Crypto


Volatility

This is needed as a trader.  Coins that are moving the most will give us the most opportunities and the largest opportunities to make gains. To find the most volatile coins we can look to websites with a long list of coins and stats - from there, go to 24hr change and look at the percentage price increase/decrease. From there you will be able to search from lowest to highest and vice versa.

If the volatility percentage is shown in green, then this indicates the price is moving upwards and it would be best to input a 'buy trade' or 'go long'.

If the volatility percentage is showing in red, this indicates a downward price movement and a 'sell' trade or 'shorting' the asset would be advised.

Fees

What is important to consider if the transaction cost or fees applied by your chosen broker or exchange. If a percentage price movement is floating around the 1 - 3% mark, consider these charges and consider if a successful trades profitability would be damaged by added fees.

Volume

First off, volume provides liquidity. The more volume available, the more liquidity - meaning more orders can be filled. If you were looking to sell vast amounts of Crypto on an exchange, ensure the exchange can facilitate this. It can often mean that the seller would have to go somewhere else to sell the remainder of the chosen Crypto and sell at a lower price.

Available Assets

Ensure that the broker you are trading with has a wide range of assets to long and short, especially the major ones to capitalize on. Many altcoins move according to how other coins or tokens within that network are performing.

Do your own research

This is critical when considering your next move on digital currency and the Crypto world as a whole. Use a range of sources to come up with a sound strategy of how to enter a market and when. Using a range of sources helps to distinguish one person's opinion from the general consensus.

Tradable assets


Bitcoin (BTC)

So let's get started with the original Cryptocurrency - Bitcoin. 

Bitcoin was the first Cryptocurrency to emerge as a digital asset. The technology was designed to facilitate electronic transactions without relying on trust or central authority and uses Blockchain technology to function.

Bitcoin is now a household name and the interest surrounding the digital coin has reached fever pitch. With the amount of news, controversy and online content surrounding Bitcoin, this has only helped increase interest surrounding Cryptocurrencies.

Big-name BTC investors include the Winklevoss twins. They were made famous by their depiction in the movie 'The Social Network' where they fight over who created Facebook with Mark Zuckerberg. The twins own around 1% of the whole circulating supply of Bitcoin making them Bitcoin billionaires!

Bitcoin is the number 1 Crypto in the world by quite some distance. The current market cap (Circulating Supply * Price) sits at a whopping $151,684,062,986. 

Current price is $8,394.53 and a volume of 2,933,660 BTC

Bitcoin is the most stable coin out there and will always provide an opportunity to make gains. The question, however, is to 'long' or to 'short' BTC?

Enjoy pristine trading conditions, low deposits, and the tightest spreads by depositing BTC at EagleFX today.


Bitcoin Cash (BCH)

Bitcoin cash is a peer-to-peer electronic cash system. This is a fork from the original BTC Blockchain where some developers who disagreed with how to move the BTC Blockchain forward - so built a new one and Bitcoin cash was formed. This is a fork of the original Blockchain containing some additional features including Block size increase and wipeout protection.

BCH is stable, fees are low and it facilitates super-fast transactions. The average size of a transaction is around 250 bytes. BCH can handle more transactions per second compared to BTC, transaction fees are cheaper - working out around $0.20 per transaction. Also, more people can use BCH at the same time compared to BTC.

All of these factors make BCH more appealing as a peer-to-peer payment system for fast transactions. This has helped catapult BCH to number 4 on the list of Top 100 Cryptocurrencies by Market Capitalization.

Current price is $308.15, up from an all-time low of $75.03.

BCH reached dizzying heights of $4,355.62 in December 2017. Will we see BCH climb this high anytime soon?


Ethereum (ETH)

Launched in 2014, Ethereum is the world's leading programmable blockchain. The local currency to the Ethereum network is Ether. Ethereum's goal is to truly decentralize the Internet.

Ethereum (ETH) is a decentralized, open-source, and distributed computing platform that enables the creation of smart contracts and decentralized applications, also known as dApps.

Smart contracts can not be altered - ensuring a secure payment network.

Current ETH price is $161.05 and has a market cap of $17,620,688,401.

The flexible network experienced an ATH of $1,432.88 from a low of $0.420897.

The ROI for original investors would be a mammoth 5,587.60%

This flexible product has applications such as Crypto wallets, financial apps, games and much more showing true flexibility. Surely there can only be further growth for this versatile, digital asset.


Ripple (XRP)

Unlike Bitcoin and other Cryptocurrencies, Ripple can not be mined. Mining is the process of completing complex algorithms using high powered computers to complete mathematical equations and once completed, miners are rewarded with Crypto.

What is noticeable is the sheer volume of CXRP in circulation - 43,675,903,665XRP!

The price per XRP is $0.222813 making it affordable to the masses and with plenty of volume, this makes XRP a suitable trading option.

Sitting at 3rd in the Top 100 Cryptocurrencies by Market Capitalization, the stable coin reached an ATH of $3.84 in January 2018.

Compared to BTC, transactions on the XRP network are much quicker with transactions taking only a couple of minutes to complete, unlike an average 70/80 minutes for Bitcoin transactions to be confirmed on the Blockchain.


Summary

There is a vast array of Crypto that you can trade. Not only hold onto coins but speculate on their value. What is important before investing or trading is to research! Crypto trading is volatile!

Find a broker where you can deposit with amounts you are comfortable with and to have available support if and when you may need it.

New STP broker EagleFX provides a trading environment on the MT4 platform where users can benefit from high leverage, free sign-ups and generous leverage on a variety of assets including Crypto, Forex and Stocks. Make use of the daily analysis features to be as informed as you can be before entering a volatile marketplace.

Good luck!

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