Continued Strength From The Big Three Cryptocurrencies - Forex News by FX Leaders

Continued Strength From The Big Three Cryptocurrencies

Posted Monday, September 18, 2017 by
Shain Vernier • 2 min read

The bulls have taken control over the past 24 hours in the cryptocurrency markets. Last week’s regulatory news out of China sent traders running for the hills. Today, cryptos are back in vogue.

Crypto-marketsDoes Unprecedented Volatility=Opportunity?

The volatility facing these markets is pretty astounding. Huge swings in pricing seem to be the norm, undoubtedly teaching some traders rough lessons in risk management. Check out the big three’s pricing changes over the past 24 hours:

  • Bitcoin (BTC):              +$279, up 7.52%

  • Ethereum (ETH):         +$32, up 12.5%

  • Litecoin (LTC):             +$3.70, up 7.1%

Those are tremendous numbers. For the sake of comparison, the famous Black Monday stock market crash of 1929 only showed a drop of 12.8%!

Trading The Cryptos

Getting involved in the cryptocurrency market is fairly simple. All one needs is some cash and a broker with a solid reputation.

However, successfully navigating the market is another matter altogether. Aggressive traders can be taken to the cleaners by swift changes in market sentiment. If you are going to attack these markets, always consider the following:

  • Aside from Ripple (XTC), most of the cryptocurrencies have limited floats. This can lead to sudden, unexpected volatility.

  • These markets are in their infancy. Always remain aware of the current regulatory atmosphere. Social trading platforms or a live news feed are good ways to remain “in the know.”

  • Keep your expectations tempered. It is very easy to look at Bitcoin’s yearly chart and want to swing for the fences. Remember that no one has ever gone broke taking a profit!

Bottom Line: The cryptocurrency atmosphere is exciting. To be honest, I haven’t seen consistent volatility of this nature since the WTI crude oil futures market back in 2011.

Increased leverage coupled with volatility can lead to extraordinary losses or returns. Be absolutely certain to engage these markets with care and a rock-solid game plan.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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