Financial markets are always evolving, constantly prompting investors to rethink their strategies and explore connections that might have gone unnoticed before.

One area that’s generated increasing interest is the correlation between the Forex (currency) market and cryptocurrencies, particularly the relationship between Bitcoin and the U.S. dollar. But how consistent are these correlations, and how can traders effectively use them?

Bitcoin vs. Dollar: An Inverse Relationship

Since early 2024, Bitcoin (BTC) and the U.S. Dollar Index (DXY) have shown a clear inverse correlation. This means that when one goes up, the other tends to go down. A notable example came at the end of 2023: when the dollar weakened after the Federal Reserve eased its monetary policy, Bitcoin surged past the $40,000 mark.

This pattern stems from broader economic forces. Generally, higher interest rates set by the Fed tend to strengthen the dollar while making “riskier” investments like Bitcoin less attractive. Conversely, when rates drop and there’s more money flowing in the economy, investors often shift back toward cryptocurrencies, driving their prices higher.

Euro and Pound: Moving in Tandem with Bitcoin

Bitcoin’s relationship with European currencies adds another layer to this dynamic. Typically, when the dollar loses strength, as shown by a drop in the DXY, currency pairs like EUR/USD (Euro vs. Dollar) and GBP/USD (British Pound vs. Dollar) tend to rise. Interestingly, Bitcoin often rises alongside them.

Between late 2023 and early 2024, the DXY dipped to around 103 points. During that same period, both the Euro and the Pound gained ground against the dollar, and Bitcoin climbed past the important $40,000 threshold.

The Yen as a Safe Haven

The Japanese Yen (JPY) is often considered a “safe-haven” currency, meaning investors flock to it during times of economic uncertainty. In August 2024, rising macroeconomic concerns pushed investors towards the Yen, causing it to appreciate significantly. As a result, the crypto market experienced a downturn — Bitcoin dropped about 8.5% that month, and Ethereum lost more than 20%.

This highlights a common pattern: when fear in the markets increases and the Yen strengthens, Bitcoin often moves in the opposite direction. This reflects a “risk-off” sentiment, where investors prefer less risky assets.

When Correlations Break Down

Even with clear patterns, correlations can sometimes break down. A prime example occurred between November and December 2024. Bitcoin rallied to record highs, breaking the $100,000 mark. Yet, during this impressive surge, the U.S. Dollar Index remained steady at around 105 points.

What caused this particular break in the usual pattern? The main driver wasn’t the dollar’s movement; instead, it was strong internal momentum within the crypto market itself. Investor sentiment soared after a new chairman was appointed at the U.S. Securities and Exchange Commission (SEC), which shifted the market’s focus away from the dollar and towards crypto-specific news.

How Traders Use Correlation Signals

Many traders use these currency-crypto relationships as valuable tools for market analysis and risk management. For instance, in Q1 2025, worsening macroeconomic conditions led to a 12% drop in Bitcoin and an even steeper 45% decline in Ethereum. At the same time, the Nasdaq stock index fell by about 10.3%, confirming a broader “risk-off” environment across different markets.

In such moments, a rising dollar and Yen often act as early warning signs of potential downturns in crypto, helping traders make timely adjustments to their positions. Interestingly, the current market trend now points in the opposite direction – potentially opening new opportunities. Still, it’s crucial to remember that correlations can shift quickly, sometimes without warning.

Making Sense of Market Signals

While crypto-Forex correlations offer valuable insights, they aren’t foolproof. Bitcoin’s sharp drop in August 2024 during a Yen rally clearly underscores how sensitive crypto can be to broader macroeconomic shifts and actions by central banks.

A fast-rising dollar or Yen typically signals that investors are becoming more cautious, which could mean it’s time to reduce your risk exposure. Conversely, when the dollar weakens, as seen in spring 2025 following lower U.S. inflation, it can indicate a growing appetite for riskier crypto assets like Bitcoin and Ethereum.

Conclusion

The connection between Forex and cryptocurrency markets has become increasingly visible and important in recent years. However, these correlations are not set in stone. They can be disrupted by major global news events or unique developments within the crypto space. For traders, success comes from staying alert, adapting to changing market conditions, and using correlation insights as just one part of a flexible, well-informed trading strategy.

The post Forex and Cryptocurrency Market Correlation: A Trader’s Guide first appeared on Online broker AMarkets.

A trading instrument that has made millions of traders wealthy, is frequently mentioned in speeches by the U.S. President, and can surge 10-15% in a single day is bound to attract attention. Of course, we’re talking about cryptocurrencies.

With so many people eager to capitalize on their price swings, the first and most crucial step is choosing a reliable crypto broker. In this article, we’ll explain the key factors to consider when making your choice.

What Matters Most for Crypto Traders

While individual trade profits are important, long-term profitability is what truly matters. To sustain stable earnings, traders need the right conditions from their broker.

One of the most critical factors is trading convenience. A modern trader relies on multiple inputs – technical analysis, market news, and personal strategies. If the trading platform is unstable, slow, or lacks key features, making informed decisions becomes much harder. A broker should offer both a web terminal and a mobile application, ensuring seamless trading from any location.

Another essential factor is liquidity and order execution speed. In the highly volatile crypto market, every second counts. A sluggish platform can mean missed opportunities and reduced profitability.

Trading Conditions: What to Look For

A broker’s trading conditions have a direct impact on profitability. Here are the key aspects to evaluate:

• Commissions – Some brokers charge fixed fees per trade, while others earn from spreads. Lower costs lead to higher net gains.
• Spreads – The difference between bid and ask prices varies across brokers. Narrower spreads are generally more favorable.
• Swaps – If a position is held overnight, traders either pay or receive a swap (rollover) fee, which differs among brokers.
• Leverage – High leverage allows trading with a smaller initial investment but increases risk. Finding the right balance is key.

Before committing to a broker, it’s essential to carefully review their trading conditions and ensure they align with your strategy.

Platform and Mobile Trading Experience

In today’s fast-paced trading environment, a user-friendly and technologically advanced platform is a must. While most brokers offer mobile apps, their quality varies significantly. A good trading app should have an intuitive interface and provide the same functionality as a desktop platform.

Some brokers support popular platforms like MetaTrader, while others develop proprietary solutions. Ideally, a trading platform should offer:

• Customizable settings
• Multiple indicators and trading signals
• High-speed order execution

A robust platform ensures that traders can execute strategies efficiently and without unnecessary limitations.

The Importance of Reliable Customer Support

Even the best trading platforms can encounter technical issues. Traders may also need assistance with deposits, withdrawals, or trading conditions. This is where the quality of customer support becomes crucial.

The best brokers offer 24/7 support through multiple channels – live chat, phone, and email. Fast response times are essential; delayed support can lead to missed trades and financial losses. A reliable broker prioritizes customer assistance, ensuring traders get the help they need without unnecessary delays.

Why AMarkets Is the Optimal Choice for Crypto Traders

While AMarkets is not a dedicated crypto exchange, it offers some of the best conditions for cryptocurrency trading.

• Proven reliability – Operating since 2007, AMarkets is a regulated broker. Unlike many crypto exchanges, it has an international license, is regulated by The Financial Commission, and guarantees the safety of clients’ funds and the protection of their interests in the event of trading disputes. With over 2 million traders worldwide, AMarkets has earned a strong reputation, reflected in high ratings on independent platforms like TrustPilot.
• Competitive trading conditions – AMarkets offers leverage up to 1:100, low swaps, and nearly zero spreads, allowing traders to minimize costs. Additionally, deposit fees are reimbursed, further reducing expenses.
• Diversified trading opportunities – Beyond cryptocurrencies, AMarkets provides access to 500+ financial instruments, including currencies, stocks, commodities, bonds and indices. This allows traders to diversify their portfolios and apply different strategies.
• Superior customer support – Unlike many crypto exchanges with slow response times, AMarkets provides fast, multilingual customer service, ensuring traders receive prompt assistance when needed.

If you’re looking for a secure, well-regulated broker with top-tier trading conditions and a seamless trading experience, AMarkets is an excellent choice.

The post How to Choose a Broker for Crypto Trading first appeared on Online broker AMarkets.

The cryptocurrency market is known for its volatility, with prices often fluctuating dramatically. In just the past month, Bitcoin saw an 11% increase in value, and the UNI/USD pair surged by a whopping 47%. While these shifts offer opportunities for profit, they also come with significant risks.

In this article, we’ll guide beginner traders on how to navigate this dynamic market and capitalize on cryptocurrency trading.

Trading Cryptocurrency Through a Broker

There are various ways to profit from cryptocurrencies. You can open wallets for different coins and, tracking changes in their rates, try to make a profit by exchanging one for another. Some investors simply hold onto coins in anticipation of long-term, explosive growth. When trading through AMarkets, the process is similar to trading other instruments, such as traditional currencies. You analyze charts, consider fundamental factors and technical analysis, and decide whether to open long or short positions.

The advantage of trading with a broker is that you don’t need to manage multiple wallets for different cryptocurrencies. Additionally, trading with leverage can amplify your potential gains, a concept we’ll explore later in this article. Opting for a broker is ideal for those who plan to trade regularly, especially on daily charts.

Choosing the Right Cryptocurrency

With numerous coins available for trading, it’s essential to select the right ones. AMarkets provides access to nearly 30 different cryptocurrencies, but beginners should focus on the main players: Bitcoin and Ethereum. These cryptocurrencies have significant trading volume, making their prices less susceptible to individual market influences. Moreover, they are well-documented and widely discussed, making it easier to find reliable analysis and educational resources.

Leverage Trading — Pros and Cons

Once you have chosen the appropriate financial instrument and thoroughly studied the market, it’s time to open your first trade. Here, you’ll notice that you can buy cryptocurrency for an amount significantly exceeding your balance. This is possible because the broker provides leverage—borrowed funds that can be used to make transactions. Let’s take a closer look at how leverage works.

Before opening a trade, you need to fund your trading account. These funds serve as “margin,” and the broker, using its own liquidity sources, extends a sort of credit line to you. This credit line allows you to control larger positions in the market than you could with your own capital alone. At AMarkets, leverage ranges from 1:2 to 1:100, depending on the chosen cryptocurrency and the amount of your own funds (margin). For example, with $100 in your account, you can open a trade for up to $10,000 in cryptocurrency.

Using leverage allows you to amplify your potential earnings. However, it also increases your risk exposure proportionally. Therefore, when trading cryptocurrencies, it is crucial to focus on risk management to protect your investments.

Risk Management Rules

• Diversify Your Investments: Avoid putting all your funds into one asset. Even in calm market conditions, cryptocurrencies remain highly volatile. As a beginner, limit your investment in cryptocurrencies to 20-25% of your total funds. Use the rest for trading more stable instruments, such as traditional currency pairs.
• Spread Your Risk: Never use the entire 20-25% allocation for a single trade. Instead, invest no more than 3-5% of the total amount allocated for cryptocurrencies in any one trade. This strategy ensures that even if some trades go wrong, your losses will not be catastrophic.
• Conduct Thorough Market Analysis: Both technical and fundamental analysis are essential in cryptocurrency trading, just as they are with other financial instruments. Study market movements and read extensively about your chosen instruments. Open trades only when you are confident in your analysis. Confidence in trading comes from being able to answer the question: “Why?”
• Test Strategies on a Demo Account: If you identify a promising pattern or develop a strategy, test it on a demo account with the same amount you plan to trade. Conduct several tests, and if the results are satisfactory, you can then transition to live trading.
• Use Stop-Loss and Take-Profit Orders: Use stop-loss and take-profit orders for effective risk management. These are crucial tools that help you lock in profits or limit losses if the market moves against you. We recommend using stop-loss and take-profit orders with every trade. They not only manage market risks but also protect you from unforeseen events, such as sudden internet or power outages.

Cryptocurrency trading has the potential to be more profitable than trading other instruments due to its high volatility and the use of leverage. However, it also carries significant risks. Calm trading, competent risk management, and thorough analysis of your chosen financial instruments can help you mitigate these risks and capitalize on the opportunities in cryptocurrency trading to increase your income.

The post Basics of Cryptocurrency Trading for Beginners first appeared on Online broker AMarkets.

Bitcoin trading is immensely popular, offering abundant opportunities for market participants of all stripes. To navigate this dynamic market successfully, it’s crucial to understand the key factors influencing Bitcoin’s price. In this article, we’ll explore the fundamental forces that can significantly impact Bitcoin’s value.

Supply and Demand

At the core of Bitcoin’s price movements lies the delicate balance between supply and demand. With a fixed supply capped at 21 million coins, fluctuations in demand—whether spurred by increased adoption or heightened investor interest—can drive price fluctuations. Here are the key factors to consider:

• Fixed Supply. One of Bitcoin’s defining characteristics is its fixed supply. The total supply of Bitcoin is capped at 21 million coins, a feature built into its protocol to mimic the scarcity of precious metals like gold;
• Halving Events. Bitcoin’s supply issuance is reduced by half approximately every four years in a process known as halving. Halving events occur every 210,000 blocks and result in a reduction in the number of new Bitcoins generated as block rewards for miners;
• Demand Drivers. Bitcoin’s demand is influenced by various factors, including its utility as a decentralized digital currency, store of value, and hedge against inflation and economic instability. Factors such as increased adoption, institutional investment, regulatory developments, macroeconomic trends, and market sentiment can drive demand for Bitcoin and influence its price.

Market Sentiment

Market sentiment plays a crucial role in Bitcoin’s price fluctuations. Positive news, regulatory developments, or institutional adoption can fuel bullish sentiment, driving prices higher. Conversely, negative news, security breaches, or regulatory crackdowns can trigger bearish sentiment, leading to price declines.

Regulatory Environment

Regulatory developments and government policies can significantly impact Bitcoin’s price. Positive regulatory clarity or favorable legislation can boost investor confidence and foster adoption, driving prices higher. Conversely, regulatory uncertainty or restrictive measures can dampen investor sentiment and lead to price volatility.

For instance, the recent adoption of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) served as a significant catalyst, driving Bitcoin prices higher towards the end of 2023. Currently, Bitcoin is viewed by investors and traders as a reliable asset, bolstered by recognition from one of the world’s most rigorous regulatory bodies.

The list of countries with the highest cryptocurrency adoption includes:

• Canada;
• United Kingdom;
• Japan;
• Thailand;
• Mexico;
• Indonesia;
• Nigeria;
• Argentina;
• Brazil;
• United States, etc.

Market Liquidity

Bitcoin’s price is influenced by market liquidity, which refers to the ease with which Bitcoin can be bought or sold without significantly affecting its price. Higher liquidity typically leads to more stable prices, while lower liquidity can exacerbate price fluctuations. It should be noted that Bitcoin is the most liquid cryptocurrency so far. Moreover, it can compete with many stocks by this parameter.

Technological Developments

Technological advancements and upgrades to the Bitcoin network can impact its price. Improvements in scalability, security, and functionality can enhance Bitcoin’s utility and attract new users and investors, driving prices higher.

A team of developers is constantly working on various updates. Each new upgrade bolsters the cryptocurrency’s value and market demand. Conversely, the failure of a proposed upgrade may lead to disillusionment among crypto enthusiasts and investors, potentially resulting in a decline.

Macroeconomic Factors

Bitcoin’s price is also influenced by broader macroeconomic factors such as inflation, interest rates, and geopolitical events. Economic uncertainty or currency devaluation in traditional markets may lead investors to view Bitcoin as a hedge against inflation or economic instability, driving demand and prices higher.

Among the most influential factors here are decisions made by the Federal Reserve (Fed). It has the ability to inject liquidity into markets through interest rate cuts or quantitative easing measures. Conversely, a shift towards a contractionary monetary policy may restrict liquidity flow to markets.

The relationship between the BTC’s price and Fed decisions is direct. When the Federal Reserve increases liquidity in the markets, Bitcoin prices are likely to rise. Conversely, if the central bank raises interest rates and tightens liquidity, the price of the cryptocurrency may decline. Moreover, the simultaneous rate cuts by multiple central banks tend to drive investment into Bitcoin, along with other asset classes, amplifying its appeal as a store of value during times of economic uncertainty.

Mining Difficulty and Hash Rate

Bitcoin’s mining difficulty and hash rate, which measure the level of competition among miners to validate transactions and secure the network, can impact its price. Changes in mining difficulty or hash rate can affect supply dynamics and mining profitability, influencing price trends.

Bitcoin mining involves the process of validating transactions and securing the network by solving complex cryptographic puzzles. A higher hash rate indicates greater computational power dedicated to mining, resulting in a more secure network. A secure network is crucial for maintaining trust and confidence in Bitcoin, which can positively influence investor sentiment and, consequently, its price.

Overall, Bitcoin’s price is subject to a complex interplay of factors, making it inherently volatile and unpredictable. By staying informed about these factors and conducting a thorough analysis, investors can better navigate Bitcoin’s price fluctuations and make informed trading decisions.

Even if a trader uses technical analysis to predict BTC’s price fluctuations, understanding fundamentals is crucial. An important event may break the strongest patterns. Therefore, market participants should follow the news to become successful. Keep learning about Bitcoin and how to trade this cryptocurrency. Delve into technical analysis to improve your results. Subscribe to our Telegram channel to be aware of the latest news, special offers, and insights.

The post The Main Factors Affecting Bitcoin’s Price first appeared on Online broker AMarkets.

Let’s look at the advantages of Forex trading over cryptocurrency trading. By examining market stability, regulation, and established strategies, we’ll uncover why many people find Forex trading more appealing.

Stable and established market

Forex trading tends to be more stable than trading cryptocurrencies like Bitcoin. You can see this by comparing how the USD/EUR currency pair moves compared to the price of Bitcoin (BTC).

Over the past decade, the USD/EUR exchange rate has experienced relatively steady fluctuations, driven by economic indicators and geopolitical events. In contrast, Bitcoin’s price has experienced significant ups and downs, surging from around $900 in January 2017 to nearly $20,000 in December of the same year and then crashing all the way down below $3,500 in November 2018. In 2023, BTC is trading in a flat mode, disappointing investors.

Regulation and security

The importance of regulation in ensuring funds security is evident. Mt. Gox’s (a major bitcoin exchange) catastrophic hack in 2014 resulted in the loss of 850,000 bitcoins, shaking the entire cryptocurrency industry. This event contrasts sharply with the regulated Forex industry, where brokers like AMarkets follow strict regulatory rules, providing traders with a higher level of security.

Time-tested trading strategies

Forex’s edge in trading strategies is well-illustrated by the prevalence of well-tested methodologies. Take the moving average crossover strategy, for instance. This method, which involves studying where different moving averages intersect, has been consistently employed by Forex traders. In contrast, the still nascent cryptocurrency market is prone to unpredictable price swings. For instance, Ethereum’s price surged from about $11 in February 2017 to over $1,400 in January 2018, only to drop to around $80 in December 2018.

We’re ready to share trading ideas free of charge. Subscribe and use our expert’s ready-made entry and exit recommendations.

Complexity in cryptocurrency trading

The complexity of cryptocurrency trading becomes evident when we consider the various factors that can affect their prices. One such example is the influence of regulatory news on the price of Bitcoin. For instance, when China banned initial coin offerings (ICOs) in September 2017, the price of Bitcoin dropped from about $4,600 to less than $3,000 in just a few days. Such rapid and significant price fluctuations are less frequent in Forex trading due to the greater stability and regulation of the market.

Diverse strategies in crypto trading

Cryptocurrency traders use various strategies, such as trend following and swing trading. Trend following involves earning on prolonged price movements in a particular direction, as seen in Litecoin’s (LTC) rally from around $30 in December 2018 to over $400 in December 2021. Swing trading, characterized by shorter holding periods, can be observed in Ripple’s (XRP) price fluctuations from under $0.20 in December 2019 to over $1.50 in April 2021.

Information sources

Forex traders frequently consult economic calendars, central bank statements, and news releases. An illustrative example is the impact of the US Federal Reserve’s decision to increase interest rates, leading to the strengthening of the US Dollar (USD) against other currencies.

Cryptocurrency traders, on the other hand, depend on a variety of sources like tracking Twitter trends, staying updated on blockchain-related news, and closely following regulatory announcements. Elon Musk’s tweets, which can trigger substantial changes in the price of Bitcoin, underscore the significant influence of social media sentiment in the world of cryptocurrencies.

Summary

In the ongoing debate between Forex and cryptocurrency trading, Forex holds the upper hand due to its stability, regulation, and wealth of established trading strategies.

Cryptocurrency trading, while offering ample opportunities, is marked by its complex nature and susceptibility to external external factors. Aspiring traders should carefully assess their risk tolerance, strategy preferences, and market understanding before making their decisions.

You can try both crypto and Forex with AMarkets. Just try them all!

Would you like more tips and market insights?

• Why daily news are important in crypto segment
• How to make money on Forex
• Differences between scalping and day trading

The post Forex vs. crypto trading. Are currencies better? first appeared on Online broker AMarkets.

Do you trade crypto? Using daily news can be advantageous.

What types of news can provide practical value? Talks about partnerships, regulatory decisions, or technological advancements can create sudden price surges or drops, presenting traders with profitable opportunities. For example, a positive statement about a particular cryptocurrency could trigger a short-term buying frenzy, leading to a potential trading opportunity for those quick to react.

Furthermore, tracking major economic events and macroeconomic indicators can provide valuable insights for traders. Factors like interest rate decisions, geopolitical events, or macroeconomic data releases can impact both traditional and crypto markets.

Access reliable sources. Customize news alerts and use automated aggregators. Verify the information to mitigate fake news risks or market manipulation.

Improving investment choices with crypto news: tapping into trustworthy sources

Imagine you regularly read a trustworthy news feed on crypto. One day, you come across an article stating that some financial institution plans to integrate Bitcoin into its services, allowing customers to buy, sell, and store Bitcoin directly on their platform. This news suggests that the integration could increase mainstream adoption and demand for BTC.

You verify the data source and gather additional insights from trusted sources. You confirm the legitimacy and examine the potential impact of a specific development for the broader crypto market. Now you want to allocate a portion of your investment portfolio to Bitcoin or adjust your existing BTC holdings accordingly.

With accurate news analysis and comprehensive research, you can have better trades.

Below you can see a few examples of high-quality Telegram channels focused on digital assets:

1. CoinDesk: real-time updates, breaking news and in-depth analytics.
2. CryptoSlate: news, analysis, ICO reviews, and updates on the blockchain.
3. Cointelegraph: news, trends, and educational content.
4. The Crypto Lark: insightful market analysis from the leading crypto influencer, reviews of new projects, and updates on segment developments.
5. Crypto Briefing: news updates, analyses, and educational resources from the reputable crypto research & analysis platform.

Here are some top crypto influencers:

• Elon Musk: The Boss of Tesla and SpaceX.
• Vitalik Buterin: The co-founder of Ethereum.
• Changpeng Zhao (CZ): The Boss of Binance.
• Brian Armstrong: The Boss of Coinbase.
• Michael Saylor: The Boss of MicroStrategy.
• Charles Hoskinson: The co-founder of Ethereum and founder of Cardano.
• Andreas M. Antonopoulos: educational content on BTC and blockchain.
• Cameron and Tyler Winklevoss: The Winklevoss twins co-founded Gemini, a popular crypto exchange.
• Anthony Pompliano: “Pomp” provides market analysis, commentary, and insights on BTC and altcoins.
• Barry Silbert: The founder and CEO of Digital Currency Group.
• Laura Shin: insights from the perfect journalist and host of the “Unchained” podcast with expert interviews.
• Tim Draper: A venture capitalist and early investor in BTC.
• Meltem Demirors: The Chief Strategy Officer at CoinShares, a digital asset management firm.
• Caitlin Long: The founder and CEO of Avanti Bank & Trust, a digital asset-focused bank.
• Anthony Di Iorio: A Canadian entrepreneur and co-founder of Ethereum, Decentral, and Jaxx Liberty.

Summary

If you invest in cryptocurrencies or trade them, read industry news, tweets etc. The crypto market is constantly changing, affected by regulations, technology updates, and market feelings.

With updates about the latest happenings and trends, you can make smarter choices, spot potential opportunities, and effectively manage risks.

Are you interested in gaining more insights?

• Discovering investment potentials: Forex and crypto markets
• Forex for beginners. How to get started?

The post Why use crypto news in trading and investing first appeared on Online broker AMarkets.

Since its inception in 2008, Bitcoin has inspired many other crypto projects. There are currently more than 5,000 “alternative” coins — altcoins.

2022 was a stormy year for Wall Street. In 2022, the major US stock indices collapsed into a bearish zone. But it wasn’t as bad for stocks compared to events in the turbulent crypto space. The crypto segment lost about $1.4 trillion in 2022 and more than $2 trillion after reaching the price peak in November 2021.

We welcomed 2022 with more positive thoughts, but the year decided to turn on its head with energy prices rising and China reporting a record number of COVID cases which also kept the global economy at the bottom.

2023 started with lower expectations. It will also be a challenging year amidst the uncertainties in the EU and China. The good thing is that the US economy looks much better. All in all, the beginning of 2023 looks uncertain. One should monitor newsflow around major economies.

Investors know that drawdowns in the stock market are an opportunity to acquire depreciated assets. Big dips could be a chance to buy a promising cryptocurrency at the best price.

How can one find a profitable project? One should search for projects that create impressive advantages compared to their competitors.

Best coins to invest in 2023

Dogecoin

Dogecoin (DOGE) started as a meme coin, but today it is the 8th largest cryptocurrency project by market cap. Dogecoin focuses on payments. It’s a leading player in this sector along with Bitcoin and Shiba Inu. In addition, DOGE is actively promoted by Elon Musk. Many believe that Dogecoin payments may be accepted on Twitter, which could make the token the largest cryptocurrency used for payments.

Dogecoin is an open-source blockchain launched simply as an entertainment feature of blockchain. The project began to attract attention after celebrities like Elon Musk, Snoop Dogg, Lil Yachty, Kevin Jonas, and Gene Simmons started talking about it.

In addition, it is an altcoin, the total number of which is not limited.

Dogecoin ranks eighth in the Coinmarketcap rating and can be used for payments in more than 300 online stores and companies (including Tesla), even though it is a meme token.

Compared to its competitor, SHIB (ranked 15th), DOGE is technically much more efficient.

Shiba Inu Coin

Shiba Inu Coin (SHIB) has one of the largest crypto communities in the world. Plus, the top management of the project is very active on social networks.

SHIB started as a meme coin but gradually grew into a token with multiple uses. It is accepted in many places. Shiba Eternity is a popular game, and Shibaswap is a great DEX platform. Without a doubt, there will be other innovations.

The problem of the project is excessive design within grid blocks and slow development rates. But the token prospects for 2023-2024 look quite positive, provided that the current development pace is maintained.

TRUST wallet token

Trust Wallet Token (TWT) took off after the loss of trust in exchanges shortly after the collapse of FTX and Binance. People are moving to non-custodial wallets such as Trust Wallet and Atomic Wallet Coin, as custodial crypto wallets store all user data in cold and hot storage, which is easier to hack.

One can use the token to pay for products and services of various services that accept TWT. TWT can be used to exchange (or buy) other crypto assets.

Trust Wallet has many unique features compared to its counterparts: user-friendly, a mobile games app, and access to numerous dApps. In addition, TWT can serve as a payment for various services. TWT holders can receive discounts on crypto investments through Trust Wallet.

Trust Wallet supports many tokens on various blockchains – Binance, TRON, Ethereum, etc.

Avalanche

If we talk about the most innovative solutions, Ethereum (ETH) comes to mind as an undisputed niche leader. Ethereum is the base for most decentralized applications (dApps). In 2022, Ethereum earned $3.8 billion on dApps. That is seven times more than its nearest competitor’s result, according to TokenTerminal.com.

Let’s imagine Ethereum has obtained better technical functionality for creating dApps. And Avalanche (AVAX) offers the best solution.

The big difference between Avalanche and analogues is network speed. Leading cryptocurrencies — Bitcoin and Ethereum — can bring through peak values of 7 and 14 transactions/second (TPS), respectively. The developers of Avalanche say that the chain can carry more than 4500 TPS.

Another advantage of Avalanche is technical compatibility with Ethereum/EVM. That is the software used to develop dApps. Since Avalanche runs on the EVM, the chain can provide access to a handy tool that developers already know well. At the same time, transaction costs are low. By the way, the Avalanche chain runs much faster than Ethereum.

In 2022, Avalanche earned $96.1 million on dApps. That is a small amount compared to what Ethereum made. However, if Avalanche continues attracting new developers, the project has every chance for excellent results in 2023.

Algorand

What cryptocurrency to buy in 2023? The answer is the one making several hundred per cent a year. Algorand (ALGO), for example. Like Avalanche, Algorand is good at building dApps with a strong focus on decentralized finance (DeFi).

Algorand is a high-speed chain. For example, Avalanche implements 4500TPS, while Algorand has a throughput of 6,000 TPS. That is a powerful first-level blockchain project processing and validating many transactions.

A striking hallmark of Algorand is focusing on interoperability. Many blockchain chains that exist in nature do not connect and, accordingly, cannot function in a bundle. In DeFi, Algorand runs on a first-level blockchain, which serves as a connection between different chains.

Another positive aspect is that Algorand uses a pure proof-of-stake (PPoS) protocol built on Byzantine consensus. Native ALGO token holders are randomly selected for voting and developing new blocks in the chain. The Proof-of-Stake consensus mechanism is the safest. The options to scale and decentralize are also well-supported.

IOTA

What crypto to buy in 2023? Consider investing in the IOTA (MIOTA) payment project. This crypto is not as popular as Avalanche or Algorand. But it could be a true leader in payment systems within the Internet of Things (IoT).

IOTA does not work on blockchain solutions. Transactions are implemented based on decentralized algorithms of the directed graph model — Tangle.

The classic blockchain has its drawbacks. In particular, verifying and voting slow down the speed of most chains. IOTA doesn’t have all these problems and can work very quickly.

Another strong point is that Tangle is continuously improving. Since each subsequent transaction confirms the previous one, the chain can constantly expand its scalability and efficiency after every payment.

Other unique features of IOTA, are free-of-charge transactions and perfect scaling ability that does not interfere with the chain work. That is a trump card that can add to the popularity of the payment system since IoT devices are increasingly coming into our daily life.

Stellar

Why not buy Stellar (XLM) in 2023? Given that Stellar offers rewards points, XLM has a real chance for success.

The main goal of blockchain technology (especially in the financial sector) is to eliminate/bypass the slow and costly route for traditional transactions.

When you send money abroad, you usually pay a fee. And your payment might get stuck in the operation process for a very long time. But any transaction through Stellar using a native Lumen token could be processed just in a few seconds.

And one more advantage. The classic transaction fee is 0.00001XLM. Since Stellar Lumen was worth $0.072 at the time of writing, the whole amount would be just $0.00000072. Simply put, you can make about $1.4 million in transactions, paying just one dollar. That is not possible in any traditional bank.

What other arguments are there in favor of buying the Stellar cryptocurrency in 2023? The network is cheap in terms of fees, but at the same time, it has a high throughput (over 1000 TPS) and excellent functionality. According to the 2022 ForexSuggest.com report, Stellar ranks first in daily trade volume. Stellar executes six times more transactions daily than Ethereum and 32 times more than Bitcoin.

Thus, Stellar has a chance to be the most popular solution for payments. If Stellar concludes agreements with new partners in the new year, this will be very good, creating a good boost for continuous growth in 2023-2024.

Which cryptocurrency to invest in 2023?

Follow stock quotes, crypto news and analysis, choosing crypto for your investment portfolio.

Here is the list of cryptocurrencies you can buy with AMarkets.

The post TOP-7 best crypto coins to invest in 2023 first appeared on Online broker AMarkets.

Should you buy Bitcoin at $20k or wait for an even bigger drop?

There are many arguments in favor of not postponing the purchase of the flagship crypto. The arguments are pretty strong.

Bitcoin is a classic cryptocurrency, purchased for a long-term period. Bitcoin is not traded speculatively, but for HODLing purposes. So, market whales (large investment banks and other institutional players) buy BTC at every correction.

The largest investor in BTC is the Microstrategy fund, which has been accumulating bitcoin since 2020. The number two investor is electric car maker Tesla.

Top 10 public companies, the largest BTC holders. Source: buybitcoinworldwide.com

∎ Bitcoin is the only asset not subject to inflation. On the contrary, BTC is a deflationary asset due to the limited ability to issue new coins. Only 21 million units of BTC can be mined across the world.

∎ The difficulty of Bitcoin mining is increasing every year against the backdrop of a declining supply of coins. The constant rise in energy prices is a factor that constantly increases the cost of mining a coin.

∎ The so-called mass adoption of BTC is on the rise. More and more countries, industries, network retailers, and financial institutions are starting to use crypto on a par with fiat money. The denser the introduction of the crypto into the real economy (as a means of payment, collateral, insurance, etc.), the higher the value of the coin. The coin’s utility is growing and this is the case.

Let’s view some stats.

Statistical data in favor of further BTC strengthening

According to Blockware Intelligence research, global Bitcoin adoption will reach 10% by 2030.

And it follows from the Glassnode report that there are already more than a billion BTC addresses. This is the same if every seventh inhabitant of the planet created their own BTC wallet.

Graph 1. The total number of BTC addresses created. Source: Glassnode.

And here are some positive thoughts.

The Financial Stability Board recently stated that it would be ready to propose “reliable” global rules for the cryptocurrency segment as early as October 2022.

The FSB is a very powerful G20 watchdog made up of regulators, treasury officials, and G20 central bankers. It is important to note that, until now, the FSB has limited itself to monitoring the crypto sector without interfering in the process.

From this, we can make a bold assumption that by the end of the year the cryptocurrency has a chance to expand the field of legalization in most countries of the world. If it so happens that from 2024 a new round of growth will begin for the entire blockchain segment.

Why is it profitable to buy BTC right now?

$20,000 is an objectively low cost for BTC due to a combination of unfavorable factors (low demand for risky assets, the US and EU weakness, brutal inflation, geopolitics, etc.).

As long as the crypto prices are still EXTREMELY bearish, it makes sense to buy BTC and altcoins, both for HODLing and short-term investing purposes.

Do you want to invest in Bitcoin, altcoins, and other assets? Open an account with an international online broker and earn on the financial markets in a comfortable mode.

The post When is the best time to buy Bitcoin? first appeared on Online broker AMarkets.

What is Bitcoin?

Bitcoins can be compared to non-cash payments in banks: a buyer pays in a store with a bank card, while he does not give any cash or coins to anyone.

The difference between bitcoin and classic currencies is that all records about transactions are kept on servers, and not in banks. The public ledger maintains participants’ identities secure and anonymous. To protect the data and verify transactions, the Bitcoin system uses cryptography. It’s the security it offers, which makes BTC so popular. It’s impossible to counterfeit bitcoin, however, it can be subject to hacker attacks and stolen by hackers.

One tough cookie

Since March, this cryptocurrency has been showing miraculous growth. We haven’t seen this kind of agility from Bitcoin for several years. With the emergence of new trading applications, BTC trading volumes significantly increased, which became the main driver for the cryptocurrency’s rise. These platforms became known as DeFi (decentralized finance). DeFi has provided the world with new levels of transparency, making it easy to borrow, lend, and trade cryptocurrencies.

Thanks to these applications, traders got more tools and capabilities to perform more risky and potentially more profitable transactions.

Currently, large investors are showing interest in Bitcoin, and this can be explained by the current crisis. To support the economy, countries issue currency in large quantities, which leads to its depreciation. In this regard, Bitcoin outperforms traditional money, since its emission is limited to 21 million coins.

Are there any other growth drivers for Bitcoin?

• News that the U.S. banking regulator announced that national banks might provide custody services for cryptocurrencies.
• Expectations of negative financial reports for Q2 from IT companies (Amazon, IBM, Facebook, amid the global economic slowdown.
• Due to active stimulus measures taken by the Federal Reserve and the ECB to support their economies in a global recession, the printing press of these major central banks runs non-stop, injecting more and more liquidity. The risks of rising inflation in major economies are higher than ever. Against this backdrop, Bitcoin looks like a safe-haven asset along with gold.
• Never ending tensions between Beijing and Washington. The trade confrontation between these superpowers is fueling interest in cryptocurrency as a tool for cross-border payments and a hedge against risks, which is also a strong growth factor for this asset.

Experts believe that the current maximum of $12 000 per coin is not the limit for BTC. Besides, just recently one coin cost $20 thousand, so it has a lot to strive for. At the moment, we do not expect growth to these all-time highs, but we do expect a new wave of growth to local maximums.

Market analysts predict that the $ 12,000 area will be an intermediate level. As soon as buyers pass it, the asset will get good chances to strengthen its positions. The BTC target is somewhere around $14,000. In the meantime, we expect a technical correction towards the support area of $ 10400- $ 10700.

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The post All you need to know about Bitcoin first appeared on Online broker AMarkets.