10 years challenge: Trading Bitcoin then and now

Author: huixian

Bitcoin, the first cryptocurrency created by Satoshi, celebrated its 10th anniversary this year.

Looking at its early days,  Bitcoin was deemed as universal salvation from monopolies by its fanatics. But now, it has been diminished to a viable asset class for trading.

In 2009, one bitcoin is traded at US $0.001. Fast forward to 2017, it reaches its peak and was traded at US $19,783.21. Since then, Circle, Coinbase, Goldman Sachs, Citigroup, Morgan Stanley and other major institution have shown a heightened focus on crypto-custodian related solutions.

A study conducted by the University of Texas suggested that Bitfinex used their currency – Tether- to bump up the prices of Bitcoin and manipulated the market. The research also noted: ‘bitcoin’s surge in late 2017 correlates with movement of Tether from Bitfinex to other exchanges in the hours before the valuation increased. Other digital currencies like Ethereum and Litecoin soared at around the same time by as much as 64 per cent. The prices climbed faster on exchanges the dealt in Tether than on those that didn’t.’

Indeed, Bitcoin is complex and bears more similarities to dotcom smokes and mirrors.

Despite its tumble, a research conducted by eToro  in late 2018 showed that 69% of the respondents were keen on learning about crypto-assets. However, 44% of the online investors stated that the lack in proficiency of the crypto-asset market deterred them from trading the volatile asset.

To fully understand Bitcoin, users need to grasp knowledge on quantitative finance, forex, technology, economy, and legal landscape of the country. Rather than studying multiple topics and missing the opportunity presented by the bearish market, rookies could utilise eToro – a social trading platform – and pick up trading skills from top traders of the market.

The logo – a green bull – is not only a reference to the bull market but also symbolises the company’s drive to face issues heads on and as such welcome the new world of cryptocurrency. eToro is a global fintech leader since 2007 and has provided the online investors with a safe network to trade a wide array of financial instruments: stocks, indices, currency pairs and even commodities. As of 1 Jun 2018, 73% of 124 million copied trades were profitable. The traders were rated by its risk factors, gains year-on-year, and percentage of fluctuations in copiers. All trading comes with risk, so as a new investor, be cautioned to copy a profile that fits your portfolio and risk appetite. eTorox, a subsidiary of eToro which provides its newly launched crypto wallet, is one of the first companies to obtain Distributed Ledger Technology (DLT) licence from the Gibraltar Financial Services Commission (GFSC).

Mr Jasper Lee, Managing Director of eToro, shared delightfully on Block show 2018, ”The soft launch of the crypto wallet will allow eToro users to transfer crypto assets with enhanced security.”

huixian@asiatokenfund.com

Image Credit: Google Image


LEAVE A REPLY

Please enter your comment!
Please enter your name here