This year has seen the biggest surge in the amount of people investing in cryptocurrency trading. The concept is now a stable within financial markets and more investors are starting to discover the benefits of delving into this worldwide phenomenon.
Here are the leading cryptocurrencies currently in operation:
At the very forefront in the recent rise for cryptocurrency investment is Bitcoin, who have experienced rapid growth throughout the entirety of 2018. Its powerful influence over the financial system has been highlighted by recent reports of manipulative behaviour within the platform that has created discrepancies for established financial institutions.
This has led to discussions about how cryptocurrency could be integrated into already existing systems. The move would allow digital assets from places like Bitcoin to be used as a means to distribute money between countries in a more time-efficient manner.
The core of recent cryptocurrency activity has taken place in America and Shanghai. Only a few days ago, there was a huge $3 million investment made into the US Crypto Trading Desk. On the other hand, a Shanghai-based digital asset firm is planning to set up a brand new $30 million cryptocurrency partnership with a licensed asset manager in Hong Kong.
Sensational moves like these have demonstrated how cryptocurrency hedge funds have been launched at an intriguing pace during 2018 despite the fears being created around prolonged bear markets.
A spokesperson at Circuit Capital commented: “Despite what is happening with prices, we’re seeing adoption growing and a lot of people are looking to scale crypto businesses. We are starting to see talent moving into this space and institutional infrastructure developing,”
It was during the latter stages of 2017 going into January of this year when cryptocurrency started to experience its first sizable boom. Research was conducted at the Warwick Business School to determine the biggest factors behind financial wins and what needs to be considered when you are planning future investments.
Speaking with hrdirector.com, one of the investigators at Warwick Business School, Daniele Bianchi, said: “The cryptocurrency market is the perfect environment to exploit asymmetric information.
“Its opaque nature and fragmented system where it mixes web-based brokers and peer-to peer exchanges with regular major exchanges, which the small exchanges rely on for liquidity, means those who have the information can time the market, make money and drive prices.
“To test this, we constructed a reversal trading strategy based on volume and past returns and found that it does not correlate with volatility, aggregate market returns, or strategies built on past performances, so it is really volume that has the relevant information.
“Cryptocurrency markets are made by a highly fragmented, multi-platform structure which is populated by vastly different operators. This means the interaction between trading volume and price changes can actually help shed some light on investor’s trading motives, especially as there are no closing times in cryptocurrency markets.
Cryptocurrency Comparison Table
They discovered that one of the main reasons behind the global increase of successful cryptocurrency investment is that you are able to identify the interaction between past volume and returns. This will help you make accurate predictions about any future returns within the market, allowing you to invest accordingly.