Since crypto first came to the CFD trading world, it’s been a wild ride full of unbelievable rises and heart-wrenching crashes. Now, in 2019, people are cautious about trading cryptocurrencies after the media took a baseball to BTC in the first half of 2018. But is crypto still a valid option for trading, and if so which is better? Found out whether Bitcoin or XRP is the way to go in 2019.
Buying gold or shares was the go-to investment strategy not so long ago. This meant taking ownership of the asset, which also meant taxation, storage fees in some cases, and a head-spinning amount of bureaucracy when buying and later selling. When CFDs came along, everything got easier. Suddenly, traders could move in and out of trades with a few clicks, and returning equity to cash could be done the same day. Then came cryptocurrencies — the future of money.
Bitcoin’s starting value was less than $0.01 cent, but back then only miners had access to Bitcoin. In 2013, brokers adopted contracts on BTC and the general public got a chance to join the crypto revolution. Anyone who invested $500 back in 2013 and held saw their investment grow to a whopping $830,000 by the end of 2017. Then came the Christmas crash and those not paying attention lost half of their profits in less than a month.
In 2019, Bitcoin saw positive sentiment around the world and climbed from its 3K slum, reaching out for the 10K milestone. But is it a good time to buy Bitcoin, and is there a better option?
Formerly known as Ripple, XRP started life as a payment system back in 2005. 7 years later, the founders released Ripple to the world. Ripple or XRP also enjoyed an incredible 2017. When the year started, XRP was valued at 0.0065. At the spike, stood at $3.81. $500 investors would have seen their equity rise to almost $300,000 in less than a year. Sadly, those days are long gone… or are they?
Cryptocurrencies in 2019
There are plenty of loud voices insisting that Bitcoin will rise to 50K this year. Even if that were true, that would mean a $500 investor would see equity rise to around $3000. In trading, this is a dream return that is unheard of when compared to most other instruments, but it’s hardly life-changing. Today, traders target profits from volatility, selling at key high points and buying after the correction.
XRP is still less than a dollar. While it’s impossible to make long-term forecasts for any cryptocurrency, there are several reasons why XRP should be considered. Firstly, XRP is leaning to the corporate way of things. Bitcoin and similar blockchain technologies are all about being decentralized and untraceable. XRP is creating a global network that allows banks, nations, and people to transfer funds at lightning speeds. Through partnerships such as American Express, XRP will enter the Chinese market, transferring funds between the GDP giant and the rest of the world.
Unlike many other coins, XRP has been accepted by governments, banks, and corporations as a valid international payment system. This could suggest long-term usage that will promote further growth and advancement as the others fade away.
Why stick with Bitcoin?
Bitcoin is by far the most popular with short term traders. XRP is struggling to break out of the $0.30-$0.50 range, yet Bitcoin has almost tripled this year already. This is the nature of limited supply with little to no external influences. The price of BTC is not tied to any one nation’s economy or currency. It simply rises as people buy it and falls when people sell it. To be a profitable BTC trader, you need to buy after almost everyone has sold and given up, and sell when almost everyone is still buying.
Exiting a BTC order is very tricky. There are no economic releases or indicators of any sort. You must simply sell when the big investors sell. There are cycles within cycles. Some are for the day, others the week. If there is a larger cycle, it could support another huge price rise in the coming months, but where the billionaire investors pull out is a well-kept secret.
Perhaps start with a long-term trade of XRP. You probably won’t see massive volatility, so relatively higher leverage is a realistic option. Meanwhile, start riding the weekly highs and lows of Bitcoin. It’s a crazy ride, so be conservative with leverage and don’t take your eye off the monitor. A stop loss can help protect your funds, but if it’s too small, your order won’t last long enough to see returns.
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