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Cryptocurrency Market Crashes – What to do?

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Last week of February 2019 was exceptional for crypto business. The optimism filled the investors as the rates kept rising for the whole week. It looked like February would end in a plus until Sunday afternoon. The cryptocurrency rate suddenly fell for an astonishing 10 billion dollars. Zilliqa, Litecoin, and Holochain suffered the largest losses. All other cryptocurrencies significantly lost value as well.

What are the new values after the sudden market descend?

With small fluctuations, the value on the cryptomarket kept increasing for the whole week, all the way up to 142 billion dollars. The sudden decrease at 13.30 GMT last Sunday caused the market value to fall to 130 billion dollars in just about one hour.

Different cryptocurrency websites show different rates but agree in general. Zilliqa (ZIL), Litecoin (LTC) and Holochain (HOT) were hit the most. According to the reports, Zilliqa ended up with 8.5%, Litecoin 7.5%, and Holochain 7.3% decrease. It is reported lesser decrease rates: 5.4% for ZIL, 4.2% for LTC and 4.3% for HOT. EOS and Bitcoin Cash (BCH) closely follow the previous three. Cryptocompare.com reported 3.5% rate drop for EOS and 3.5% for BCH.

Ether and Bitcoin are next in line by their rate drop. With the 3% rate descend, Ether is now worth less than 150 dollars each. Bitcoin price was fluctuating around 4000 dollars for the whole week. When it finally got over 4000 dollars, the decrease made it drop to 3800. Binance Coin (BNB) had one of the less affected rates about 1.5%, as well as the Tron (TRX). The two well-known remittance and settlement cryptocurrencies Stellar Lumens (XLM) and XRP also slid. The rates fell by about 4% for XLM and 3% for XRP.

Why did this happen?

Even though various statistics sources complicate making exact conclusions, they all agree that the cryptocurrency rate has fallen. In the same time last week, the cryptomarket was worth about 120 billion dollars. Sunday’s sudden decrease could return cryptomarket all the way to that value because it has abolished the increasing rates from last week.

Similar cryptomarket decrease happened in November 2018 but it had clear reasons. The traders remember BCH hard fork and two ICO projects SEC had requested to compensate the traders. Because in February 2019 there were no such events, there wasn’t any explanation why the rates fluctuate this much. Traders believe that the crypto winter has ended and that the market is on the edge of a new phase.

Recently, bots have been causing more and more market activity. Although this is a well-known practice, algos could also be used for wash trading.

Wash trading is when someone uses algos to deliberately boost cryptocurrency volumes and prices. The algos stop their activity when cryptocurrencies reach a specific value. This causes a sudden market crash like this one on Sunday. Knowing that cryptocurrencies increased in value last week and then unexpectedly crashed for no reason, to some investors this seems to mark the finishing phase of a wash trading process.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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