Undoubtedly, cryptocurrencies have ushered in a flourishing new market for investments. The interest and enthusiasm towards investing in cryptocurrencies have skyrocketed primarily owing to the unbelievable opportunities they offer in garnering significant ROI. However, consumers need to carry out thoroughly with due diligence before investing. Here are five most important things you should consider before venturing into cryptocurrencies.
Doing your research – Review and verify the companies’ presence in social media and be convinced about their experience and legitimacy in the cryptocurrency orbit.
Being responsible – Cryptocurrencies, which have high-risk potentials, can find a place in any investment portfolio. We suggest investing only 10-20% of your entire portfolio into crypto ventures.
Being realistic – Cryptocurrencies are scandalously oversold with their rags-to-riches stories and enormous gains. However, avoid hinging your investment strategy on this point. It’s very crucial to diversify your crypto portfolio with different blue-chip labels like Bitcoin, Ethereum, Litecoin, etc. which have profound quality, flexibility, and reliability.
Being vigilant and borderline paranoid – Avoid potential hacks and security issues by choosing the right Blockchain Company to handle your investments. Be extremely careful in refraining from sharing your private keys, using reputed exchanges and wallets, and occasionally moving off funds from exchanges to wallets.
Tracking your profits and losses – Cryptocurrency is yet not classified as a “real investment.” Therefore, many claims that measuring capital gains becomes extraneous. Regardless, regular tracking of your portfolio performance is advisable for gaining personal knowledge.
A plethora of exceptionally popular cryptocurrencies is available in the market. Now the trickiest question is which of these should you start tracking? Here’s a list of three top-of-the-line cryptocurrencies that are poised to whip up a roaring storm in 2018.
- Bitcoin (BTC)
- Price: USD 9176.50
- Market Cap: USD 155984321830
- Volume (24h): $11893700000 USD
- Circulating supply: 16996237 BTC
- Maximum supply: 21000000 BTC
- Creator: Satoshi Nakamoto
Bitcoin was invented in 2009. It’s the first cryptocurrency that eventually propelled others to make gallant entries by using Blockchain technology. Its value and popularity have grown by leaps and bounds. People are now accustomed in including Bitcoin in their portfolio as the entry and exit points for their crypto market. In 2017, Bitcoin grew by a whopping 600%. Its market price is expected to reach $40,000 by the end of 2018. Being the first and foremost cryptocurrency with a huge market cap, it is less risky than its peers to invest in 2018.
- Ethereum (ETH)
- Price: USD 633.82
- Market Cap: USD 52772135120
- Volume (24h): $4272740000 USD
- Circulating supply: 99038107 ETH
- Creator: VitalikButerin
Ethereum was launched in 2015 with approximately 12 million pre-mined ETH coins. It is proficient in creating decentralized applications that can be governed seamlessly without any intervention from a third party. It also has negligible possibilities of any downtime or fraudulent circumstance. It has massively grown by 40 times in the past couple of years. Ethereum experienced a great spike last year with a burgeoning 13000% growth in value making. Being the highest market capped crypto after Bitcoin; Ethereum is supposed to be having a growth potential of over 1000% that can surpass Bitcoin in 2018.
- Litecoin (LTC)
- Price: USD 149.61
- Market Cap: USD 8414674365
- Volume (24h): USD 634589000
- Circulating supply: 56243688 LTC
- Maximum supply: 84000000 LTC
- Creator: Charlie Lee
Litecoin was released in 2011. If Bitcoin is the gold, then Litecoin is recognized as the silver of crypto. Litecoin’s USP is its quick transaction as it is capable of processing a block every 2.5 minutes. Also, it has relatively smaller transaction fees. Litecoin will continue to be a major player because of its proximity to Bitcoin.
Sterling gets vaccine boost to hit 8-month high vs euro
By Joice Alves
(Reuters) – Sterling rose to a fresh eight-month high against the euro on Wednesday as Britain’s faster COVID-19 vaccine rollout than in the European Union offered support to the pound.
Although Britain’s deaths from the coronavirus pandemic passed 100,000 on Tuesday, its faster initial vaccine rollout has fuelled hopes for economic recovery.
Sterling was up 0.3% at 88.28 pence at 1049 GMT, after hitting a fresh eight-month high of against the single market currency.
Graphic: Sterling 27 Jan, https://fingfx.thomsonreuters.com/gfx/mkt/jbyvrnbbbve/Sterling%2027%20Jan.png
Geoffrey Yu, senior EMEA market strategist at BNY Mellon, said “the general theme of UK doing well with vaccinations is playing a role” in lifting the pound, which is “not expensive and not over-owned yet”.
On the other hand, “the euro is clearly being undermined by ongoing concerns over vaccine rollout speed and supply,” Yu added.
Versus the greenback, sterling was flat at $1.3736, not far off a May 2018 high of $1.3759 touched earlier.
Hopes for a large U.S. fiscal stimulus package has fuelled risk sentiment in markets in recent weeks, benefiting sterling. Market participants are expecting Federal Reserve Chair Jerome Powell to renew a commitment to ultra-easy policy.
“It’s FOMC today so the adjustment in dollar positions may be playing a role as well,” Yu said.
As Britain left the bloc in December, the City of London said the capital’s loss of some financial business due to Brexit has not been catastrophic and it will thrive even if the European Union “irrationally” blocks access.
“For now Sterling continues to trade more on hope, vaccines, than current reality,” said Jeremy Stretch, head of G10 FX Strategy at CIBC Capital Markets.
(Reporting by Joice Alves in VARESE, Italy. Editing by Alexander Smith and Andrew Cawthorne)
Dollar advances as investors shy away from risk
By Saqib Iqbal Ahmed
NEW YORK (Reuters) – The dollar edged higher against a basket of currencies on Monday, as a burst of volatility in stock markets around the globe sapped investors’ appetite for riskier currencies.
Concerns over the timing and size of additional U.S. fiscal stimulus sent major U.S. stock indexes briefly more than 1% lower before they recovered to trade little changed on the day.
The sharp move in stock markets soured FX traders’ appetite for risk, Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto, said.
“Your high beta currencies – currencies that are highly correlated with equity markets and global risk appetites – are tumbling in synchrony with equity indexes,” Schamotta said.
Market sentiment turned more cautious at the end of last week as European economic data showed that lockdown restrictions to limit the spread of the coronavirus hurt business activity.
The U.S. Dollar Currency Index was 0.19% higher at 90.396, after rising as high as 90.523, its strongest since Jan. 20.
The euro was down around 0.28% against the dollar. German business morale slumped to a six-month low in January as a second wave of COVID-19 halted a recovery in Europe’s largest economy, which will stagnate in the first quarter, the Ifo economic institute said on Monday.
The Australian dollar – seen as a liquid proxy for risk – was 0.16% lower against the dollar.
U.S. stocks have scaled new highs in recent sessions even as concerns about the pandemic-hit economy remain. Investors are trying to gauge whether officials in U.S. President Joe Biden’s administration could head off Republican concerns that his $1.9 trillion pandemic relief proposal was too expensive.
Despite the dollar’s recent rebound – the dollar index is up about 1.3% since early January – analysts expect a broad dollar decline during 2021. The net speculative short position on the dollar grew to its largest in 10 years in the week to Jan. 19, according to weekly futures data from CFTC released on Friday.
The U.S. Federal Reserve meets on Wednesday and Chair Jerome Powell is expected to signal that he has no plans to wind back the Fed’s massive stimulus any time soon – news which could push the dollar down further.
Sterling strengthened on Monday against the weaker euro as Britain’s COVID-19 vaccine rollout over the weekend offered support to the British currency.
(Reporting by Saqib Iqbal Ahmed; Editing by Andrea Ricci and Sonya Hepinstall)
London and New York financial services treated the same, EU says
By Huw Jones
LONDON (Reuters) – An EU forum for discussing financial services with Britain will be similar to what the United States has, and it must be in place before market access will be considered, the bloc’s financial services chief said on Monday.
Britain’s Brexit trade deal with the EU from Jan. 1 does not cover financial services, leaving its City of London financial center largely cut off from the EU.
Both sides are committed to creating a forum for financial regulatory cooperation by March, but talks have not started yet, the EU financial services commissioner told the European Parliament.
“What we envisage for this framework is similar to what we have with the United States, a voluntary structure to compare regulatory initiatives, exchange views on international developments and discuss equivalence related issues,” Mairead McGuinness told the European Parliament.
U.S. and EU regulators took about four years just to agree on rules on cross-border derivatives.
Trading in euro shares has already left London, along with a chunk in swaps trading. That questions the value of any future EU access given that many banks and trading platforms from the UK have opened units in the bloc.
McGuinness said regulatory cooperation will not be about restoring market access that Britain has lost, nor will it constrain the EU’s unilateral equivalence process.
Equivalence refers to EU access when Brussels deems a non-EU country’s rules are similar enough to the bloc’s.
“Once we agree on our working arrangements, we can turn to resuming our unilateral equivalence assessments… using the same criteria as with all third countries, including anti-money laundering and taxation cooperation,” she said.
Britain plans to amend some EU rules.
“The United Kingdom intention to diverge requires a case-by-case discussion in each area. Equivalence and divergence are polar opposites,” McGuinness said.
“I am optimistic that over time, through cooperation and trust, we will build a stable and balanced relationship with our UK friends.”
(Reporting by Huw Jones; Editing by Dan Grebler)
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