Price volatility doesn’t come as a surprise in the crypto market. The industry, as well as the cryptocurrency community, have been through a roller-coaster ride in the past one year. Following the huge upswing, and the downward spiral the crypto scenario has improved in the recent times as the digital currencies regain the lost ground.
Especially, Q3 2018 has so far proven to be beneficial for traders as we observe significant price movements on a daily basis. Some of the notable crypto assets during this period include the likes of Ripple, Bitcoin Cash, 0x and Ethereum Classic, which have exerted a positive influence over the entire market. These cryptos have shown anywhere between 10 to 15 percent rise in their prices, on a daily basis in the last month and seem to have a volatile path ahead throughout the last quarter of 2018.
In this article, we provide you with some highlights prepared using SimpleFX WebTrader, a fast and easy-to-use platform you can trade with the next time a cryptocurrency is in turmoil.
Ripple on September 20
Ripple (XRP) has become the ideal cryptocurrency among the CFD trader community, mainly due to its high volatility on a daily basis. Being a form of derivative trading, CFDs lets investors speculate the changes in price, easily and rather accurately in this fast-paced market.
For CFD traders, it is of prime importance to explore the markets exhibiting fast movements on a daily, and volatility on a consistent basis.
The above chart shows the increase in XRP Value as around three-fold in the last week. On September 17, it was at $0.255, which reached to $0.51 by September 21; within 04 days, showing an increase of around 100 percent!
The most popular and dynamic cryptocurrency that currently exists; Bitcoin, is least affected by news and events, as observed in Bakkt, a cryptocurrency platform collaboratively initiated by MS, Starbucks, and ICE. While Bakkt is considered as one of the progressive platforms in the crypto-space so far in 2018, it has failed to affect Bitcoin’s short-term prices, which is quite unlike other cryptos.
The volatility of XRP can be attributed to the functioning of Ripple Labs, the company regulating the cryptocurrency and projects based on Ripple Blockchain. These huge daily movements, according to analysts is mainly due to three key factors.
- The rise in the XRP activity in South Korea and Japan
- The planned launch of the upcoming cryptocurrency product by Ripple Labs
- Upcoming Ripple event
Ethereum Classic in January, May, August
In 2018, up till now, ETC has shown some of the biggest hikes because of various factors; the key ones are the integration of ETC by Coinbase and the launch of the ETC-based publicly tradable instruments by companies like Digital Currency Group.
In the beginning of the year, it was declared by the US Securities and Exchange Commission (SEC) that Ethereum is not to be taken as a security, as per prevailing laws. The instant clearance of ETH automatically ensured that the same regulations are applicable to the offshoot ETC as well.
Following the SEC announcement, Coinbase – the biggest crypto-brokerage in the market encashed upon the newly-opened opportunity and integrated ETC to its list of offerings. This development led to a surge in ETC price. Coinbase has even published its final testing report for ETC support on August 4 and finalized integration with the exchange leading to 30 percent rise in the price.
Before Coinbase integration, between January and May 2018, ETC price varied between 30-50 percent.
Ethereum in May
On May 3, Ethereum’s price increased by 23 percent within a day as ICO and blockchain projects started to gain interest from the traders. Then, within the next 30-days; April to May 3, ETH registered a massive increase of 128%.
That time resulted in the highest demand for Ethereum as a global supercomputer, and as Aragon co-founder Luis Cuende stated, nobody could find a single talented Ethereum developer who was not a millionaire.
Cuende states:
I don’t know any good Ethereum developer that isn’t a millionaire, and it’s only a matter of time before it will become a gold rush among developers to learn the technology.
Previously, ETH has exhibited sudden changes both in terms of price and volume on many occasions. For instance, in the last week, the ETH price increased by almost 20% in less than a day’s time. Thanks to the massively oversold conditions, the crypto recovered by a previous decline which witnessed the value drop from $800 to $150 over a three-month period.
CFD traders may find ETH highly profitable as a volatile digital asset having a certain level of stability’ a feature not offered by many cryptocurrencies except Ripple and Bitcoin Cash offer.
Making the Most out of Volatility
Cryptocurrency traders can make money keeping track of the market news and placing quick orders in response. They just need a handy platform that provides a range of tools. They also need a trading account with some funding ready, preferably without minimum deposits. A simple trading app makes it much easier to make a profit when an opportunity comes.
If you need a fast and reliable trading app visit SimpleFX.com
Images courtesy of ShutterStock and SimpleFX
