What are the key factors that affect cryptocurrency trading?

With the number of cryptocurrency launches approaching one thousand, how can investors have a clear idea of which virtual currencies to trade? Here are some of the cryptocurrencies that brokers would be well advised to offer their clients if they want to stay ahead of the game, says Leverate’s Adinah Brown

Leverate’s Adinah Brown looks closely at what cryptocurrencies she considers important when brokerages are looking at offering such asset classes on their platform.

FinanceFeeds does not provide investment advice. This article does not reflect the views, opinions and the stance of FinanceFeeds in any way. FinanceFeeds does not support or in any way advise trading in any virtual currencies, cryptocurrencies and coins. FinanceFeeds does not support any involvement in initial coin offerings and related activities and is not regulated to do so.

The most significant factor for any market is liquidity. It doesn’t matter if you’re trading bonds or beans, without a good supply of buyers and sellers, that market is likely to stumble and fall.

Which altcoins should a broker offer?

That is the 64,000 dollar question. The following list of cryptocurrencies should be part of any broker’s trading offerings. Keep in mind that while these virtual currencies have sailed through market storms to become the industry’s more established benchmarks, brokers need to be conscientious about providing these cryptocurrencies to their client traders with suitable accompanying risk warnings.

Bitcoin (Symbol: BTC; Market cap: 246 trillion USD)

Bitcoin, which was launched in 2009 as the first cryptocurrency, was designed to create a secure mechanism for transferring funds on the Internet. These transactions took seconds, as opposed to the days, or even weeks that fund transfers took using traditional channels. The Bitcoin currency has an unusual feature in that there will be a limit of 21 million coins that can ever be minted, or “mined”.

Ethereum (Symbol: ETH; Market cap: 69 trillion USD)

The second contender for the cryptocurrency crown is Ethereum. This altcoin has only been in circulation since 2015, but it is certainly vying for position with Bitcoin for the number one slot. Like Bitcoin, Ethereum uses blockchain technology as its trading medium, but it has an additional feature in that it is used to pay the transaction fees and services between two parties through the use of its ‘smart contracts’. Due to its lack of mining limits, most players believe that Ethereum will replace Bitcoin as the ‘top dog’.

Bitcoin Cash (Symbol: BCH; Market cap: 48 trillion USD)

A spin-off from Bitcoin, Bitcoin Cash has been in circulation since August 2017, providing Bitcoin owners who held Bitcoins before the launch with an equal amount of Bitcoin Cash tokens. Arising out of differences of opinion between Bitcoin miners, BCH offers unlimited amounts of block capacity for holders of this spin-off currency.

Litecoin (Symbol: LTC; Market cap: 15 trillion USD)

Launched by Charles Lee in 2011, Litecoin is one of the second-tier cryptocurrencies. Its major advantage to Bitcoin is that it takes around a quarter of the time to mine, which results in quicker transaction confirmations. However, with only around 2% hold on the total cryptocurrency market, Litecoin still has a long way to go to get into that top tier.

Dash (Symbol: DSH; Market cap: 9.4 trillion USD)

Finally, Dash, which was first mined in 2014. This cryptocurrency is based on Bitcoin, but it has succeeded in reducing the time of P2P blockchain transactions. This altcoin, which was formerly called Darkcoin and XCoin has also focused on the issue of cryptocurrency privacy.

Read this next

Digital Assets

Crypto.com expands its presence in Turkey with new products

Crypto.com, a Hong Kong-based cryptocurrency exchange platform, is set to accelerate its growth in Turkey, singling out the country as a market with huge potential.

Digital Assets

Binance buys Japanese crypto exchange Sakura BitCoin

Binance, the world’s largest crypto exchange by traded volume, has made a fresh bid to enter Japan with the acquisition of Japanese-registered crypto exchange service provider Sakura Exchange BitCoin (SEBC). The financial terms of the transaction were not disclosed.

Industry News, Inside View

Viacheslav Taran: FX and Crypto industry mourns death of Libertex Group co-founder

FinanceFeeds reports with great sadness that Viacheslav Taran, Co-Founder of Libertex Group, passed away last Friday. 

Digital Assets

FTX founder SBF called to testify by Texas regulator

The Texas State Securities Board (TSSB) has called on Sam Bankman-Fried to testify during an administrative hearing scheduled for Feb. 2, 2023. The move marks yet another expansion of enforcement agencies’ probes into FTX’s activities following its insolvency.

Digital Assets

Despite FTX chaos, Italy welcomes crypto lender Nexo

Crypto lender Nexo has won regulatory approval from Italy’s financial regulators, allowing the exchange to continue serving Italian customers.

Institutional FX, Interviews

ION Markets for execution and clearing: Francesco Margini at FIA EXPO 2022

The CPO of Cleared Derivatives at ION Markets spoke about the need for automated execution and clearing in times of surging volumes and increased volatility.

Institutional FX

FIA EXPO 2022: Baton Systems President on building post trade rails for capital markets

As the world’s largest trade show for the listed derivatives dealers, the FIA Futures and Options Expo is a high point for the global cleared swaps community, with dozens of panels, educational sessions, networking opportunities and more.

Inside View

Olga Taran releases public statement in Monaco regarding “false accusations” against her late husband Viacheslav

Vyacheslav Taran, 53, founder of Forex Club and CEO of Libertex Group, was the sole passenger of a helicopter that crashed in Villefranche-sur-Mer this weekend. The helicopter crash is still under investigation, and authorities have not indicated any possibility of foul play.

Industry News

Brokeree Solutions Wins the “Best Emerging Fintech” Award

2022 has become, for Brokeree Solutions, a time of new inventions and developments. We are pleased that the industry has appreciated this emergence of new technologies