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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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Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

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