Foreign Exchange (Forex) Market is a decentralized global market that allows traders to buy, sell and exchange at the current determined prices. With above $5 trillion trades on average every day, the Forex Market is the largest financial market in the world, with different currencies getting exchanged by millions of traders. With all its benefits, it makes trading profitable for its traders and investors.
However, the market has its challenges. Sometimes traders find it difficult to fund their trading accounts, with fees and taxes taking a huge chunk of their profit. That is where Forex traders and investors really look for alternatives and solutions. From an active trading perspective, cryptocurrency products offer many attractive attributes. Consistent volatility, availability of leverage, and 24/7 market access can make them a viable avenue for short-term traders and long-term investors.
So without further ado, learn more about the top cryptocurrency projects that every forex trader should know.
Bitcoin
Bitcoin was the first digital currency to scale and gain widespread adoption. It is a decentralized peer-to-peer payment system that interested parties can use to make transactions without going through a third party, for example, a financial institution.
This cryptocurrency uses a distributed ledger called the blockchain, which contains a record of all transactions. The blockchain is both decentralized and immutable, which helps improve transparency and safeguard against fraud.
BTC, which came into existence in 2009 and was developed by a person or group that went by the pseudonym Satoshi Nakamoto, has grown from a fringe concept to a highly visible digital currency. BTC exhibits consistent volatility, which makes it a prime target for active trade on both the cash and CFD markets.
Short-term trading opportunities frequently come, with daily volatility regularly eclipsing 5%. With such large trading ranges and sudden swings in pricing, BTC is one of the top cryptocurrency projects that every forex trader should know.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Ethereum
Ethereum is a blockchain-based platform that interested parties can use to develop decentralized applications (dApps) and send value to one another. The platform's applications use the native digital currency Ether (ETH). In contrast to BTC, the purpose behind this crypto is not to revolutionize the transfer of money between parties but to truly decentralize the internet.
It is the second-largest digital currency by market capitalization. With a total market value of roughly $200 billion and a circulating supply of nearly 122 million units, this cryptocurrency lags only BTC in terms of market cap.
ETH's potential for upside has attracted the interest of many market participants and forex traders. At the time of this writing, over 150 exchanges offer ETH trading. The upcoming Merge upgrade will finally switch the network from a Proof-of-Work (PoW) mechanism to Proof-of-Stake (PoS), making it faster, more energy efficient, and more scalable. Building on the network and using it for all its application would then become much more efficient, increasing the demand and value for ETH.
Further, an individual unit of ETH is far less expensive than a unit of BTC, as its price is less than one-tenth that of the world's most prominent digital currency. This makes it one of the top cryptocurrency projects that every forex trader should know.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Ripple
Ripple (XRP) is a cryptocurrency platform that facilitates exchange between participants via the online space. However, instead of the primary objective being the creation of a decentralized and anonymous peer-to-peer mode of transfer, the target audiences for XRP are traditional banking institutions.
XRP’s appeal to the banking industry and forex traders is its speed as a payment protocol. It moves very quickly, with transactions being settled in as little as 3.6 seconds. With such robust capabilities, more than 100 banks have adopted the XRP version of the blockchain. The list includes some of the biggest names in the commercial banking industry, such as UBS, American Express, and Westpac.
In contrast to the other leading cryptocurrencies, XRP has a huge circulating supply. Due to the large float of slightly more than 39 billion, the per unit pricing is modest.
The cryptocurrency's price increased significantly in 2021, reaching a high of $1.46 in April 2021. Its potential use by financial institutions and banks has attracted the attention of traders and investors worldwide. Coupled with moderate pricing, XRP is an ideal avenue for traders to engage in the cryptocurrency environment.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Litecoin
Litecoin is considered the “light version” of Bitcoin because it is a direct fork of the Bitcoin Core code with some modifications to make it a faster and cheaper alternative to transact. Litecoin was created by Charlie Lee, a computer scientist and an MIT graduate. Lee had worked in Google and cryptocurrency exchange Coinbase as Director of Engineering in 2013, two years after creating Litecoin.
Litecoin has more supply than Bitcoin, with its total supply capped at 84 million, making it cheaper and easier to acquire and use for transactions. In addition, per speed, the Bitcoin network confirms transactions at the pace of nine minutes per transaction, while the Litecoin network, which was established to offer superior transaction speed, ultimately confirms transactions after 2.5 minutes.
After Bitcoin, Litecoin is one of the earliest known cryptocurrencies with more than a $10 billion market cap. One of the advantages Litecoin has is that it is an early cryptocurrency traded almost on any existing exchange. In addition, its popularity made it a top choice among the biggest futures trading platforms. These unique features of LTC make it one of the top cryptocurrency projects that every forex trader should know.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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