Newcomers are strengthening their positions in the financial markets: the cryptocurrencies are taking their places among the products of broker companies and in portfolios of investors and speculators.
Currently in the market of money there is nothing less than a revolution. And there is great turmoil in store. This is a tool on which you can profit right now, without going into discussions about mission and significance.
“Bitcoin can overcome the threshold of $10,000 over the next year. It's irrational to sit on the sidelines and watch how others make money on it”.
Trading cryptocurrency and traditional assets – what’s the difference?
On the one hand, it seems like the same technical analysis is applicable to the instruments of the cryptocurrency market. On the other hand, the market is completely new. There are millions of factors affecting it, especially technological ones.
Very few people understand the essence from the roof to the ceiling. So far, there is much to be explored. Yet, authorities will begin to regulate the sphere tightly.
Remember the events of late June this year: the rate of Ethereum fell sharply after a false report on the death of Vitalik Buterin, the creator of the cryptocurrency. During the day, Ethereum lost about 15 percent. What should happen in the traditional market for us to see a similar drop or rise, as shown by Bitcoin right now? A war?
The capitalization of the derivatives market, including Forex, forward, CFD is $ 1.2 tln. Cryptocurrency capitalization has a long way to go to reach these numbers. Sure enough, some projects will be closed, someone will lose money, someone will earn. We need to understand the key point – this is a new world, new technologies, new exchanges and new money.
You cannot escape from this. No matter how you call it – bubble, hysteria, hype, or something else.
What’s in store?
No doubt, the market will grow further. We expect a threefold increase in trading volumes before the end of the year.
Given the number of new ICOs that are taking place now and scheduled for this fall (among them some quite large ones), of course there will be new tokens and new currencies.
The growing popularity of the market and the potential for its growth will attract new participants. In the nearest future, we should expect the beginning of market legalization in Western countries and the further spread of Blockchain technology. It will penetrate into all spheres of life, from shopping to travelling.
In the financial segment, crypto exchanges will keep coming to light, and brokers will finally pay more attention to this market.
BTC-e won’t scare
An important element of the whole cryptosystem is crypto exchanges. The recent problems associated with the BTC-e shut down revealed many problems related to the security of client tools.
The currency exchange is intended for the physical purchase and sale of cryptocurrency. That is, if you have dollars on an e-wallet, you can change them to Bitcoins, and Bitcoins to Ethereum, and so on.
The emergence of new exchanges is quite important. This is healthy competition, the development of the industry, a movement towards greater transparency. It’s like restaurants continuing to open, although there are already a lot of them.
There is plenty of demand for all participants. If we consider this from the business point of view, there are about 200 stock exchanges in the world. And there are about six thousand Forex brokers. Which looks more promising?
You will have to compete anyway and in any business. It's important what technologies you provide, what services you provide, how well you conduct your business to protect your customers from difficult situations.
How to make choice between liquidity providers?
Look at the offered technology and past experience in this area. Also consider if you get enough attention as a customer.
Communicate with colleagues, attend professional events. This way you will gather as much information about the work of possible providers as possible.
Carefully monitor who and how fulfills the tasks similar to yours, for you not to receive obsolete technologies as a solution.
- By Artur Azizov, B2Broker CEO