Cryptocurrencies: Where Are We Headed Next?

Over the last few years, one of the most important activities in the financial markets has been the development of the cryptocurrency, which is a digital assets that can be used in speculative trading or in the making of many standard purchases.  

These are essentially assets that have taken the financial world by storm given the fact that they are now providing a clear alternative to the traditional stocks, bonds, commodities, and currencies that traditionally mark the financial landscape.  But many of those traditional investors are curious where the market is headed in terms of its acceptance of new assets and the trading communities that are tied to those assets.  

The latest entry into the space is Covesting, which has taken an innovative angle in its approach to make the experience a more collective process.  As the financial markets continue to move in a more comprehensive direction that includes a larger number of participants, it is not entirely surprising to see this type of trend filter into cryptocurrencies.  This is why the latest cryptocurrency ICO could be indicative of the larger trend in this emerging asset class, as it combines several of the market’s emerging forces into a single transaction.  

Covesting is introducing the concept of peer-2-peer asset management to crypto currency markets, the approach that has a solid performance record in the classical markets such as FX and Equity would soon be available for investors and traders that are turning to crypto as a means for alternative investment strategy.

So, if you are interested in putting your money into the cryptocurrency space, these recent events that must be monitored in order to get a real sense of where the market is headed next.  The collective nature of the internet itself suggests that the financial market will become more interconnected and interwoven, a virtual trading floor that is global in nature.  By extension, it is not entirely surprising that a digital cryptocurrency would follow the same logic given the fact that it can be used to close regular marketplace transactions without worrying about foreign exchange rates.

If you are an investors that takes the long-term view and it looking at the cryptocurrency space as a means for alternative investment, there are some factors that should be considered.  Shifts in the market’s perception of the world reserve currency could be viewed as cases that are favorable for digital currencies in ways that ultimately move their values higher.  

Initial Coin Offerings (ICOs) offer the possibility for strong volatility that is centered in the bullish direction but it is critical for investors to protect themselves in ways that shield against substantial losses.  Stop orders are critical if you are looking to trade in these types of events and the advent of trading communities is also helpful in that investors can receive outside feedback in designing strategy and reacting to moves that are seen in market prices.  

Whenever you are looking for safe haven assets that could rise in cases where the US Dollar is falling, it is growing more and more likely that investors will turn to digital assets as a means to replace the traditional safe haven instruments that are typically seen in gold and silver.  The confirmation of all these trends will be seen once the inevitable downside in the S&P 500 starts to unfold in the post-holiday declines that are commonly seen in the early parts of the year.

 

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