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How to Read Candlestick Patterns?

how to read candlestick patterns

How hard is reading Candlesticks?

At a fundamental level, blockchain products are more difficult to grasp compared to traditional financial instruments and fiat money. However, on the trading pit, they’re all the same — both government bonds and Bitcoin require precisely defined trading strategies for a fruitful outcome.

To develop a viable strategy, you should give great emphasis on learning how to read market signals at the very beginning of your trading quest. Understanding those signals can sometimes be a question of profiting from or losing your investment. Unfortunately, you’ll notice that right after the first bearish frenzy in your career as an active trader.

To increase traders’ chances of success, the investment market “sells” such price signals and alerts in the form of charting systems, most common of which are:

  • Line charts;
  • Bar charts;
  • Candlestick charts.

In this article, we’ll focus on candlesticks as they have turned out to be a favorite among crypto traders because of their visual appeal and comprehensive nature.

The Origin of Candlesticks

Interestingly enough, candlesticks actually originated in the Japanese rice market and have been technically adjusted throughout the years to fit even the most sophisticated trading platforms.

In short, a Japanese trader developed a basic mechanism using two different colors to help traders identify the price movement of rice based on the short-term behavior of its price levels.

The American analyst Steve Nison was the first who presented the candlestick methodology to the West in his book Japanese Candlestick Charting Technique. The name comes from their rectangular shape and long lines (wicks) that indicate the price action during a certain time period. 

What Are Candlestick Patterns?

Candlesticks are a method of visually analyzing and plotting asset prices by representing traders’ emotions with different colors based on multiple parameters. Similar to line and bar graphs, candlesticks show time through the horizontal axis and the asset price on the vertical one.

Moreover, candlesticks give information about the asset’s price movement and the current market attitude towards the asset within a predefined time span.

Reading Candlestick Chart Patterns

At first sight, the overall visual presentation of the candlestick chart may appear a bit overwhelming to beginners. However, after developing a basic understanding of the given parameters, they all find the candlestick system rather an intuitive trading tool. 

Time Intervals

The time interval of a candlestick can range to a great extent depending on the settings of the trading platform itself. The default setting is usually 24 hours, but in most cases, these charts come with the option for manual adjustment — from 15 minutes to a decade — depending on the trader’s individual strategy. Some chart designs even allow users to combine a few timeframes for simultaneous views of both day-trading activities and long-term strategies. 

Bear in mind that the crypto market operates 24/7, so we consider the starting point of the timeframe an open price while the endpoint is what the candle labels as the close price.

Price Position 

The wick feature of the candlestick stands for the highest and lowest asset price during a pre-defined timeframe. Accordingly, the wick bottom shows the lowest price during that time, while the top is the highest price at which the asset is traded.

Together with the open and close price parameters, the price position gives the OHLC (open/high/low/close) value of the candlestick, whose ratio places the candlestick at a certain height on the graph.

The gap between the open and close price draws the candlestick body, while the gap between the body and the top or bottom endpoint is what we call a shadow or wick.

Candlestick Colors 

You’ll find the body of candlesticks colored either in red or green. While red describes a negative price trend, green indicates an overall positive price movement. Interestingly enough, the choice of colors nowadays is on par with the basic UI principles of color psychology. Back in the 18th century, positive and negative market movements were shown in white and black, respectively. Even today, some traders prefer the original color pattern, which is also an adjustable feature on some trading software packages.

How Many Candlestick Patterns Are There?

The best way to improve your candlestick “reading skills” is by going through familiar patterns that traders use as a learning resource for popular market trends. Placed in a particular time sequence, candlesticks ultimately form patterns that provide relevant signals, enabling both buyers and sellers to make investment decisions without an emotional impact. 

In the most general sense, these patterns can be either bearish or bullish. Bearish patterns signal downward movements, while bullish candlesticks usually appear after a downtrend to “herald” an upcoming positive price movement.  

Depending on how many candlesticks the candle patterns consist of, there can be single, double, or triple patterns. We’ve listed the most powerful pattern examples that have found application in the fast-moving crypto market. Their names are pretty descriptive so that you can easily identify which one is bearish and which is bullish. 

Long Upper and Lower Shadow 

The upper shadow usually indicates a bearish trend, which means traders are getting ready to sell their assets and profit. On the other hand, a long lower shadow suggests a bullish movement gradually pushing prices up. The larger the shadows, the more indicative the pattern is. 

Doji Candle

A Doji candle either lacks or has a tiny body, as the open and close prices are nearly identical. The “Doji” name comes from the Japanese word for “error” which in this context signals a market hesitation or a warning for a price reversal. During Doji, traders shouldn’t initiate any long or short positions until a new pattern of candles appears on the graph. 

Umbrella

Umbrella candles feature a long bottom wick and can be red or green. The red umbrella is called a hammer and indicates that your crypto is facing a critical purchase action but that its price may get back on track very soon. Contrarily, green umbrellas imply that sellers are in the mood for cashing out. The green reversing cycle is called a hanging man.

Piercing Line

This two-candlestick pattern has a long red candle accompanied by another long green candle. The piercing line comes along during a downtrend bottom or even a total drawback. The pattern implies purchasing pressure because of the huge gap between the close price of the red candle and the open price of the green candle. More concerning is the high open price of the green candle as it suggests a strong bearish downtrend. 

Morning Star 

The star is one of the most complex patterns due to the three different candles it contains to build a meaningful image: a long red candle next to a short-body candle and a long green one.  In most cases, the middle candle doesn’t overlap with the surrounding ones. The morning star signalizes a new bullish market after the selling pressure has gradually declined.   

Other popular candlestick patterns include Bullish/Bearish Marubozu, Bullish/Bearish Engulfing, 

Bullish/Bearish Harami, 3 White Soldiers, 3 Black Crows, and many more.

Final Thoughts – How Accurate Are Candlestick Patterns?

As a style of data visualization, candlestick charting is remarkably accurate. It provides users with a very detailed set of information about the price of the desired asset during a certain time period.

However, If you’re wondering whether and to what extent candlestick patterns are accurate for predicting future market trends, the answer is — not enough to fully rely on their interpretation when making an important business decision. Nonetheless, well-established patterns have proven to be life-saving caution signs in wild bearish times, even though history doesn’t necessarily repeat itself with volatile markets.

Finally, letting candlestick patterns take a role in developing your business strategy is always a good idea but only when integrated with other relevant analytic indicators and trading bots.

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How to Calculate Crypto Profit?

how to calculate crypto profit

Why do we calculate profit and loss?

Cryptocurrencies are the most volatile financial asset class you can invest your money in. It’s quite normal for top cryptocurrencies to have daily price swings of several percent, while lower cap altcoins can even have a price change as dramatic as several tens of percent in a short period of time.

This means that traders can lose a lot of money very fast when investing in crypto, but they can also earn a lot of cash real quick if they invest carefully and buy or sell crypto at the right moment.

Thousands of traders lose much more than they earn from crypto trading because they don’t have a clear trading plan and strategy. For instance, one of the biggest mistakes beginner crypto traders make is that they don’t calculate their crypto profits and losses.

Let’s take a look at the importance of calculating crypto profits and discover the most popular methods for tracking the profitability of your crypto trading activity.

How to Calculate Crypto Gains?

There are multiple methods for calculating your crypto profits and losses. Each of them is quite simple and can be used to monitor the total profitability of your portfolio.

It’s very important to have a strict crypto profit calculating methodology and be consistent with it, so you can always know exactly where you stand with your profits and losses. It doesn’t matter which trading strategy you choose if you aren’t keeping records of your gains and losses because you won’t be able to measure the success level of your strategy. 

Below are the five most popular methods for calculating your crypto profits.

Subtraction of Buy From Sell Value

One of the easiest methods for calculating the profitability of a crypto trading deal is subtracting the buying price of your crypto from their selling price. This is an easy way to find out exactly how much money you’ve made from a sale.

Let’s say you bought 1 Ethereum (ETH) coin for 3,000 USD and sold it one month later when the price of Ether went up by 500 USD per coin, closing the sale at 3,500 USD. If you subtract the buying price of 3,000 USD from your sale price of 3,500 US dollars, you’ll end up with a 500 USD profit from your Ethereum trade. 

You can use the same method to calculate your crypto losses. Let’s say you’ve bought 1 ETH for 3,000 USD, but the price went down to 2,500 USD per coin within a short period of time. You decide to sell your Ethereum, afraid the price will keep getting lower, ending with a 500 USD crypto loss.

In order to use this method efficiently, you need to keep records of your initial buy prices. An easy way to monitor your buy prices is by viewing your personal order book and transaction history on the crypto exchanges you’re using for trading.

Profit Percentage Calculation

Calculating crypto profits by using percentage is another common method, usually used among experienced traders who are more interested in monitoring the percentage increase of their portfolio after a trade than just the straightforward US dollar digits. This calculation method is often used by brokers who are targeting a certain sell price and planning their sell zones in which they want to take profits. 

To calculate your profits in percentage, you need to multiply your initial buy price by the percentage you’re targeting to take profits at. For instance, if you wish to take profits at a 10% price increase of the crypto you’re holding, you need to take the buy price of your crypto and multiply it by 1.1 or 1.2 for a 20% increase.

Let’s take a look at an example of how this calculation method works. Imagine you bought Ripple (XRP) for a price of 0.90 USD per coin, and you want to sell it once it reaches a 20% increase. You’ll take the buy price of 0.90 USD and multiply it by 1.2. Your target selling price is 1.08 USD per XRP coin if you want to take 20% profits on your Ripple investment. Your potential profit is 0.18 USD in this case.

Unrealized Gains

The unrealized gains model is a very useful crypto profit calculation methodology that lets traders plan in advance. However, this method requires traders to pay close attention to the crypto market and constantly monitor price changes, which is why it’s best to use portfolio tracking software or to turn on the price change notifications in your crypto wallet.

Unrealized gains are profits you haven’t taken from the market, but you can do so if you decide to. For example, if you’ve bought some Solana (SOL) for 100 USD per coin, and the price of SOL increases to 150 USD per coin, you’re looking at 50 USD of unrealized gains per SOL coin. You haven’t sold your Solana yet, so the gains are unrealized, but if you do decide to take profits and sell your Solana, you’ll be able to turn those unrealized gains into real profit.

The only thing you need to pay attention to is the high market volatility because if you place a sell order on a crypto exchange for your SOL coins that cost 150 USD per coin, and the price drops to 130 USD in the meanwhile, you won’t be able to realize the initial 50 USD per coin profit calculation. That’s why you need to be extremely fast when trading crypto and placing market orders, as prices can quickly change in the wrong direction.

Crypto Trading Spreadsheet

Using an Excel spreadsheet is one of the most thorough methods for keeping track of the profits and losses of your crypto trading activity. You just need to enter all of the key parameters of your trading deals and regularly update the spreadsheet.

In order to create a crypto profitability spreadsheet, you need to create five sections. One section should list the names of the cryptos you’re trading, the second one should contain the number of coins in your possession, the third section should list the buy price, the fourth one the sell prices, and the fifth section shows the dates of your trading deals.

This way, you’ll be able to have an overview of all of your crypto trades and easily calculate your profits or losses by implementing the subtraction calculation model described in this guide. You can either make your own spreadsheet or find various free online spreadsheets specialized for tracking crypto portfolios.

Crypto Profit Calculator Platforms

An additional, very useful method for calculating your crypto profits is by using specialized crypto profit calculator platforms such as Cryptoprofitcalculator.com. You can choose from a wide range of cryptocurrencies, enter the number of bought coins, the buy price, and the sell price, as well as the investment/exit fees.

The calculator on ProfitCalc App is another simple crypto calculator with a strong selection of cryptocurrencies. The platform will automatically calculate your profits or losses in real-time. It’s a good idea to combine a crypto calculator with your personal profitability spreadsheet and enter the results from the platform into the appropriate section of the spreadsheet.

A Few Ending Words…

When crypto beginners hear about crypto profit calculations, they might think that this involves some complex math calculations, but it’s actually quite straightforward, as shown in this article. Calculating your crypto gains and losses will definitely save you from a lot of uncertainty and unnecessary stress, which is often associated with crypto trading when brokers don’t have a clear strategy and don’t keep records of their trading deals.

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How to Spot Pump and Dump Crypto

identifying pump and dumps with cryptocurrency

Old technique, new markets

If you have seen Scorsese’s award-winning comedy “The Wolf of Wall Street,” you are already familiar with the theory behind pump and dump schemes: Convince enough people to invest in a worthless asset you already own, and sell your shares just as the prices peak. You will sail away with your fortune, while the others will be left with completely worthless stocks. Well, at least until the law enforcement catches you red-handed.

The digital era has changed the specifics of pump and dump schemes just as it changed the stock market, but the logic behind the scam stays the same. The people in charge of the pump and dumps still sweep the profits, while others are left empty-handed at the end of a pump and dump operation. But crypto pumps and dumps are different from regular stock scams in an important way: They are not quite illegal (yet) and crypto con-artists can steal millions of dollars from investors without facing consequences. 

In this guide, we will take a look at how pump and dump schemes work in crypto markets and advise you on how to spot pump and dump schemes that are designed to rob you of your money.

Cryptocurrency Pump and Dump

Pump and dump schemes, or “rug pulls” as they are called in crypto circles, are an unfortunate part of the crypto ecosystem. The combination of the FOMO (fear of missing out) mentality with the staggering lack of regulations in crypto markets provide the perfect breeding ground for money-grabbing schemes that target crypto investors. 

Orchestrators of the crypto pump and dump schemes use the internet and social media very effectively in order to promote crypto coins that are essentially useless. They use Twitter, Reddit, Discord, Facebook, Instagram, and any other social media platform to quickly “get the word out” about this new and promising coin, often paying influencers and even celebrities to promote what they are selling.

Aggressive marketing tactics draw in unsuspecting traders who already regret not having invested in Bitcoin when prices were low and imagine they can still become millionaires if they invest just a couple of hundred dollars in a new crypto project that is said to  “go to the moon” or in plain people’s talk, to be worth thousands of dollars. Predictably, that doesn’t happen. Even when crypto prices rise due to increasing demand, regular investors can’t really take advantage of it: most pump and dumpers use trading bots that can trade much faster than the average investor. The orchestrators usually have the biggest share of coins, and as soon as they sell, the market crashes as pumpers sweep all the profits.

Most pump and dump schemes involve “shitcoins” that don’t have legitimate business models or products; there might be a “developing product in the works,” but more often, they are only selling an idea. Not every shitcoin is promoted by anonymous internet trolls either: the DOGE “joke coin” jumped up after Elon Musk tweeted about the cryptocurrency, and its market cap surpassed 50 billion dollars

How Do Crypto Pump and Dump Schemes Work?

So how do you avoid buying into a pump and dump crypto scheme? Interestingly enough, not all crypto pump and dumps manage to hide their intent: There are several crypto pump groups on social media (Discord seems to be the platform of choice), with tens of thousands of members who all know the pump is coming when the pump signal is announced, and yet they still join in, hoping to cash out early while still making a profit. Most don’t, but some earn enough to enjoy another round, just like gambling in a casino. Of course, the group administrators usually buy a huge amount a few minutes before everyone, so they still have the advantage: in fact, it is only thanks to the group they are able to make big profits. The house always wins, as they say.

But not everyone becomes part of a pump and dump scheme knowingly: when the pump operation starts off, some join because they are tempted by increasing prices. Or in some cases, people invest in pump and dump cryptos because they think the project actually offers long-term value: a product or service that will take off just like Bitcoin did. Rarely, however, a cryptocurrency project has any actual product or service.

Between 2017 and 2018, initial coin offerings (ICOs) raised billions of dollars for cryptocurrency-based products and services. According to research, almost 80% of those projects were nothing but pump and dump schemes and Ponzi scams, including some of the biggest and most well-known projects.

Pump and Dump Bitcoin 

You may think Bitcoin isn’t prone to pump and dumps; after all, it is the world’s biggest cryptocurrency and it isn’t a scam coin controlled by market manipulators. But research shows that it can still be manipulated. 

Much like other cryptocurrencies, Bitcoin is a speculative asset. Since it is more expensive and more decentralized than any other cryptocurrency, it is harder for Discord or Telegram groups to manipulate the price of Bitcoin. But Bitcoin is still vulnerable to speculation: a person with a big enough platform can push the market prices either way depending on the message. Elon Musk is notorious for having a disproportionate effect on Bitcoin prices, which of course benefits him and his company.

How Tether Possibly Caused Bitcoin Pump and Dump

Aside from Elon Musk, there seems to be another and possibly bigger threat to Bitcoin’s price integrity: stablecoins dominate Bitcoin trading. Less than 15% percent of all Bitcoin trading takes place against fiat currencies. According to crypto research firm Kaiko, 70% of all Bitcoin trading is against stablecoin Tether (USDT). And while Tether claims all USDT on the market is backed by U.S. dollars, a huge controversy surrounds the actual reserves of the stablecoin issuer.

In 2019, two finance professors raised the alarm against Tether’s disproportionate effect on Bitcoin prices. Researchers claim Tether has been used to pump up Bitcoin prices during the Bitcoin price rally in 2017. That means the Bitcoin price crash in January 2018 might be due to the effects of a pump and dump operation.

How to Spot Pump and Dump Crypto

The most obvious way to spot a pump and dump seems like research: Investors are often told they should check out the project’s own website and social media, read its white paper, and learn about the team responsible for developing the product. But ICO experience shows that it is very easy to whip up a reasonable white paper, a professional-looking web page, and generate fake news about possible institutional partnerships. So what else?

Researching all of the above is a must but it may not be enough to separate a pump and dump scheme from a genuinely worthy project. Unfortunately, most of the crypto market is made up of pump and dump schemes; finding a good project is akin to finding a needle in a haystack. So be vigilant:  If the project has been around for a long time without fulfilling its promises, recognize it as a red flag. If there is a buzz about the coin in question on social media, or you hear influencers and celebrities (gamers, fashionistas, musicians, and so on) talk about it on the internet, don’t let the FOMO mindset take over. Educate yourself on cryptocurrency-related topics, assume the worst, and then start your research. And most importantly, follow the old adage: don’t invest more than you are willing to lose.

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Bitcoin Price Predictions for 2022, 2025, 2030, 2040 and Beyond

bitcoin price predictions

Predicting future Bitcoin prices

Bitcoin, the world’s first and most valuable digital asset, has reached an all-time high twice in 2021, toppling 68,000 USD in November before beginning to slide down from its peak as the end of the year draws by. 

Data science as well as the history of economics tell us that market prediction is a troubling endeavor: Wall Street strategists and other forecasters are often staggeringly wrong about their predictions. In researcher Philip Tetlock’s famous words, experts are “roughly as accurate as a dart-throwing chimpanzee.”

Bitcoin’s infamous volatility makes it twice as hard to predict how the asset will move at any given time, but speculation has always been at the heart of Bitcoin, nor will it stop anytime soon, at least until the market completely matures. But expert opinions on Bitcoin prices in the future are still important: while they may not all be correct, they represent different assumptions about how Bitcoin and crypto markets operate in the world. So, let’s have a look at what experts think Bitcoin will be worth in the near and far future.

Bitcoin Price Prediction 2022

Bitcoin price was around 30,000 USD in January 2021 and increased to 66,000 USD per BTC by April. Prominent crypto analysts predicted that Bitcoin would reach 100,000 USD before the end of the year but the price of Bitcoin remains around 50,000 USD as the final days of the year draw nearer.

In 2019, Morgan Creek Digital Assets co-founder Anthony Pompliano had predicted the asset might reach 100,000 USD by the end of 2021. In 2021, he revisited his statement, claiming that Bitcoin could hit as high as $225,000 by the end of 2021. Pompliano pointed out that trouble in Wall Street could incentivize people to invest in cryptocurrencies, as more institutional investors are investing in Bitcoin and creating a demand that would be reflected in its prices.

According to pseudonymous PlanB, the creator of the famous Stock-to-Flow model that tracks Bitcoin prices on the basis of supply and demand dynamics, Bitcoin will also reach 100,000 USD by the end of 2021. The American stock exchange NASDAQ shares the same opinion.

Others have made more modest predictions or even modified their predictions when it seemed like Bitcoin may not quickly recover from its slump after November highs. According to a 50 people research panel organized by Finder, the average forecast claims that Bitcoin would hit as high as 80,000 USD during the year, sliding to 70,000 USD towards the end of December.

Similarly, Kraken CEO Jesse Powell retracted his prediction that Bitcoin could reach 100,000 USD by the end of 2021 and suggested the Bitcoin community should be ready for a long “crypto winter.”

Galaxy Digital’s Mike Novogratz predicted Bitcoin would be worth around $50,000 to $60,000 by December 2021. This seems like the most successful prediction for the end of 2021 but of course, Bitcoin prices can still unexpectedly jump up or down before the year’s end.

Bitcoin Price Prediction 2025

It is not easy to guess what Bitcoin will be worth in a few years. As you have seen, it is often difficult to guess how Bitcoin prices will move, even for a couple of months or days. But the analysts think Bitcoin prices will actually be easier to guess as the crypto asset gains more maturity with increased institutional and public adoption.

Bitcoin price predictions for 2025 are generally optimistic. According to Finder’s panel of 50 Bitcoin experts, Bitcoin prices will increase dramatically within a few years and reach 250,000 USD by 2025. That means the price of Bitcoin could quadruple within the next four years.

Experts think Bitcoin has the potential to become a store of value. At the moment, Bitcoin (and other altcoins) most closely resemble stocks: bought and sold off in a frenzy and very speculative. But in time, Bitcoin could ease its volatility to become a long-term value storage asset.

Bitcoin Price Prediction 2030

Most of the crypto community holds positive expectations for 2030 but some of them are more modest. The famous Winklevoss Twins, co-founders of cryptocurrency exchange Gemini, has long claimed that Bitcoin could reach $500,000 by 2030. Winklevoss twins think Bitcoin can replace gold as a store of value and their predictions are based on the value of gold held in storage. Gold has a market cap of 9 trillion USD and Winklevoss twins expect Bitcoin to take over gold’s market share, increasing its price to half a million dollars by the end of 2030.

According to the experts on the Finder panel, Bitcoin prices can reach 5 million USD by 2030. That’s right, the average prediction of 50 crypto experts is that a single BTC will be worth 5 million USD by 2030.

PlanB’s stock-to-flow model predicts Bitcoin prices will reach 1 million USD by 2030 and increase up to 10 million USD until the end of the decade. That said, we should note that 2021 prices are currently below what PlanB’s model has predicted and whether the reality will catch up to the model remains a question for now.

Bitcoin Price Prediction 2040 and Beyond

According to venture capitalist Jeremy Liew, Bitcoin will reach 500,000 USD by 2030. Anthony Pompliano suggested Bitcoin could be worth at least double that amount and the price of a single BTC could hit 1 million USD in 2030. His Morgan Creek co-founder Mark Yusko has a more conservative prediction, suggesting Bitcoin can be worth 400,000 USD in the long term. Mark Yusko also bases his claim on Bitcoin’s possibility to topple gold as the main store of value.

Finally, according to J.P. Morgan strategist Nikolaos Panigirtzoglou, Bitcoin will hit  $146,000 in the future, as the asset receives more institutional adoption by banks and other financial organizations. Panigirtzoglou differs from others because he thinks Bitcoin is likely to replace “private gold.” So, he thinks Bitcoin won’t take over the whole gold market but only a portion of it that is held in private portfolios, worth around 2.7 trillion USD.

A Few Words Before You Go…

When Bitcoin launched over a decade ago, the price of a single BTC was less than pennies. But the digital asset grew immensely in the following decade, even though it wasn’t always steady in its movement upwards. Bitcoin is a speculative asset: it doesn’t have intrinsic value or a base price. It’s simply worth what people think it’s worth. That makes Bitcoin price predictions notoriously difficult, as experts are essentially trying to gauge public sentiment. As you can see, many have differing opinions on how much Bitcoin will be worth in a year, in five years, or in one or two decades. But the one thing they all agree on is that Bitcoin has enormous growth potential.

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Best Cryptocurrency Books of All Time

best cryptocurrency books

What are people reading?

Comedian John Oliver once summed up cryptocurrencies as “everything you don’t know about economy combined with everything you don’t know about computers.” Like most new technologies, cryptocurrencies have a learning curve of their own, and most of us are behind it still. In fact, research shows that only 17% of all crypto investors really understand cryptocurrency markets, whereas most only have the most basic understanding of how cryptocurrencies work. Most beginner and experienced traders have low or moderate information about cryptocurrencies.

A lack of knowledge doesn’t stop people from investing in digital assets, but people who invest without understanding what they are investing in exacerbate some of the rampant problems that haunt crypto markets: FOMO mentality can easily replace critical thinking, leaving investors vulnerable to scams and rug pulls.

Whether you are a beginner or an experienced trader, there is a lot you can learn about cryptocurrencies and the blockchain technology that supports them. Down below, we’ve listed some of the best and most recommended books on cryptocurrencies for everyone who wants to educate themselves further on crypto markets.

Cryptoassets by Chris Burniske and Jack Tatar

“Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond” is a book for cryptocurrency investors who want to understand how to research and assess the value of crypto assets available on the market. 

Burniske and Tatar cover the history of Bitcoin briefly, but this book is so much more than a historical treatise on Bitcoin. The authors describe the creation of crypto assets, and the blockchain technology that supports them, explaining how cryptocurrency trading works with just the right amount of technical details. The best part of the book, however, is that it works as a strategic framework to approach crypto trading: It gives solid advice on how to manage a market full of risks and opportunities by going over some of the most problematic aspects of cryptocurrencies such as their volatility, their speculative character, and the inevitable bubbles they face as an emerging market.

The book is a practical guide to investing as well, thanks to the authors’ detail-oriented explanations of trading platforms, crypto wallets, ICOs, and so on.

The Basics of Bitcoins and Blockchains by Antony Lewis

Lewis’s “The Basics of Bitcoins and Blockchains” is a perfect introduction to the fundamentals of cryptocurrencies and blockchain technology. The book includes technical explanations of how Bitcoin and blockchain technology work, but it is so well-written that it never stops being a page-turner despite the technical orientation. Lewis breaks down each concept into easy to digest pieces, methodically explaining processes such as mining and trading that are crucial for cryptocurrencies.

This is a perfect introduction if you want to learn more about blockchains and how blockchain technology is evolving to make a difference in the world. Even if you are not one for technical explanations, you will have a much better idea about how Bitcoin works, and what it can really become in the future.

The Book of Satoshi: The Collected Writings of Bitcoin Creator Satoshi Nakamoto by Phil Champagne

Satoshi Nakamoto, the mysterious creator of Bitcoin, remains an interesting figure even now, after a decade since they left the Bitcoin community never to be heard from again. Of course, Satoshi Nakamoto has around 1 Million BTC to their pseudonym, so it is unlikely that anyone can just forget about the existence of the Bitcoin founder.

If you want to learn more about Satoshi Nakamoto and the process that culminated in the creation of Bitcoin, “The Book Of Satoshi” is a perfect introduction. The book explores the Bitcoin whitepaper, as well as Satoshi Nakamoto’s blog posts and communication with other developers. You will have a clear idea of how the Bitcoin founder looked at problems around digital money and centralized economies and developed visionary solutions to some of the most pressing problems of modern economies.

Blockchain Bubble or Revolution: The Present and Future of Blockchain and Cryptocurrencies by Neel Mehta, Aditya Agashe, et al.

“Blockchain Bubble or Revolution: The Present and Future of Blockchain and Cryptocurrencies” is a fair and comprehensive look at blockchain technology from industry professionals. Instead of celebrating blockchains as a panacea to all world’s problems, an attitude that contributed a lot to the ensuing Initial Coin Offering Bubble of 2017, the authors provide a clear-eyed analysis of blockchain technology and its possibilities.

The book covers how blockchain technology works, defining the basic concepts of blockchains in simple language that is easy to understand. If you are wondering how different cryptocurrency blockchains function, including Ethereum, Bitcoin, Monero, and some stablecoins, you will find your answers here. This book also excels in providing examples of how blockchain technology can and (can’t) be applied to sectors outside of cryptocurrencies. The authors use real-world case studies to investigate the complexities of blockchain-enabled products and services to see whether blockchains can stand the test of time. You will learn about different kinds of blockchains, and how technological innovation and legal regulations are altering the future of decentralized ledger technologies and cryptocurrencies that function thanks to them.

Digital Cash: The Unknown History of the Anarchists, Utopians and Technologists who Created Cryptocurrency by Finn Brunton

Most people interested in cryptocurrencies already know how Satoshi Nakamoto created the world’s first cryptocurrency Bitcoin, but only a few realize there is lesser-known history that paved the way for the emergence of cryptocurrencies. Bitcoin is actually a culmination of many developments and conceptual awakenings about electronic money, and Finn Brunton expertly explores this forgotten history. 

“Digital Cash” explores the conceptual and historical background of Bitcoin’s development with a focus on libertarian and cypherpunk ideologies. This is a fun treatise that reveals how innovators need to think about ever-shifting concepts like money and value exchange. The book isn’t just well-written and entertaining but it is also intellectually enriching. “Digital Cash” is a must-read that will provide you with the necessary information about the history of cryptocurrencies so that you can look at the future of crypto with insight.

A History of Money: From Ancient Times to the Present by Glyn Davies

The last book on our list isn’t strictly about cryptocurrencies but it is nonetheless an important read for all cryptocurrency investors. “A History of Money” explores the concept of money from ancient times to its modern-day functions, giving an account of the evolution of modern economies.

While this book can’t tell you which cryptocurrencies are good investments by their name, the thorough explanations of economic developments promise good value to the readers. Once you understand how modern-day markets and businesses operate, you will have a much better idea of why cryptocurrencies are worth anything and how their value can change within a larger economic system.

A Few Final Words…

Once you learn about the basics of economics and combine this knowledge with information about blockchain technology, you will have a much better understanding of how digital economies work. The insights from these books will give you a clear edge when it comes to investigating and investing in cryptocurrencies. Of course, there are many more valuable resources on the market about cryptocurrencies, as the field is constantly evolving, so it is a good idea to keep an eye on the latest developments. Following journalists, cryptocurrency experts and economists on social media can be a good way of keeping up with the times, while you educate yourself on the basics of crypto assets.

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Litecoin Price Predictions for 2022, 2025, 2030, and Beyond

litecoin price predictions

Litecoin Price Prediction

Altcoin is a generic term for all blockchain-based representatives that aren’t Bitcoin. Yet, such a broad distinction between Bitcoin and 4,000 other cryptocurrencies doesn’t seem applicable anymore in this busy crypto realm. Different crypto coins come with different utility, vision, and marketing strategies. Some of them are designed with a single purpose: to compete with Bitcoin, while others are here to complement its functionality. There is another group of cryptocurrencies that operate as programmable assets rather than a medium of exchange and represent units of value outside the blockchain.

However, at the end of the day, it all comes down to which one has found its place under the burning crypto sun. The charm of cryptocurrencies is that their battle for survival isn’t over once they reach an all-time high price.

Today, we’re exploring Litecoin (LTC) price predictions, which is arguably one of the best-established virtual assets on the official crypto charts. What do experts and scientific predictions have to say about LTC? Nothing can be taken for granted when it comes to crypto, but at least we can weigh in to a certain extent whether Litecoin is good investment material for the future. 

What Is Litecoin?

In a nutshell, LTC is a decentralized digital currency operating without any interference from a central authority. It relies on the blockchain network to generate, process, and verify transactions. 

Launched back in 2011, Litecoin is one of the earliest blockchain products, which was developed with a clear mission to provide a faster, cheaper, and technically more advanced solution than Bitcoin.

The creative designer of LTC is the former Google engineer Charlie Lee. He recognized the ample opportunity in blockchain systems but believed that Bitcoin lacks the full capacity to achieve it. Lee used a copy of Bitcoin’s source code and inherited the proof-of-work protocol (PoW) from its predecessor. However, the Litecoin blockchain employs a more simplified algorithm that has a really positive impact on the speed of the mining process. For this reason, the utility of Litecoin has been shaped as a practical medium of exchange in comparison to Bitcoin, which turned out to be more suitable as a store of value. 

With a strictly defined supply of 84 million LTC, Litecoin has achieved instant commercial success. Even though its price has faced sharp and painful highs and lows over the years, it’s continuously present on almost all crypto exchanges, where you can buy, sell or trade LTC in exchange for fiat or another cryptocurrency. 

The Price History of Litecoin

The history line graph of Litecoin’s price reminded us of a very popular quote: “History never repeats itself, but it often rhymes.” This means that we can’t expect the same dynamics in prices since price fluctuations were mainly driven by external market conditions, but we can learn a lot from the patterns on its timeline.

It’s important to know that when Litecoin was released on the market, there were not many crypto competitors out there. The coin was warmly received as a lite version of Bitcoin and it immediately reached a denominal value of 30 cents. By the middle of 2013, the coin had reached a price of 3.00 USD. The turning point happened in November of that very same year, when Litecoin’s value was multiplied by 15 and reached a price of $50. 

The period between 2014 and 2015 is known as the crypto dark ages because of the multiple cyberattacks resulting in immense losses of millions of dollars. The most notorious highlight of that era was the fall of the leading crypto exchange at the time, Mt.Gox. Expectedly, LTC hit the bottom in January 2015 with an exchange rate of only 1 dollar. A period of stabilization followed when Litecoin kept an average price of around $3.00. 

2017 brought a new light for cryptocurrencies and within a few months, the value of LTC rose by an unbelievable 500%. A new sharp crash happened at the end of 2018 when Litecoin dropped to $25. The year 2019 also showed frequent ups and downs in price, but they were even sharper amid the pandemic crypto boom of 2020, with an exchange rate ranging between $50 and $250. 

What Are the Current Prospects of LTC?

It’s not that Litecoin disappointed with its price development, but its main advantage —transaction speed—seems to be irrelevant now that there are plenty of “faster” coins available on the market. Another concern was raised among the watchful crypto community in 2017 when founder Lee sold out all litecoins in his possession. Even though he claimed that selling his capital meant avoiding any potential conflict of interests, a great number of crypto investors interpreted this as the beginning of the end. However, predictions for the future of LTC aren’t so discouraging, as, after all, Litecoin has managed to build trust over the years. We’ll go through some Litecoin predictions by relevant experts based on both technical and fundamental analyses. 

Litecoin Price Prediction 2022

Even though the year started out with a less favourable rate, most of the experts give positive estimations for a successful end. For example, Long Forest went for an amount of 263%, which may be over-optimistic since technical instruments borrowed from the stock market don’t recognize dramatic chart movements in the near future. 

Litecoin Price Prediction 2025

Opinions can vary drastically when predicting an asset’s development in the longer run, however, when it comes to Litecoin, there is a certain consensus among crypto experts that LTC will become the most stable cryptocurrency on the market due to two factors: the relatively broad limit supply and its image as a trustworthy medium of exchange. Long Forecast and Wallet Investors, for example, project an average price of $375 and a maximum of up to $450 by 2025. 

What Will Litecoin Be Worth in 2030

Even though estimations don’t go so far in projections of accurate numbers, the end of the decade is expected to be marked by widely open crypto flood gates. This means that by 2030, blockchain transactions are very likely to get incorporated in the finance sector. Accordingly, the long-lasting experience of LTC will probably pay off at this point. A growing number of retailers are expected to start accepting crypto payments by 2030 and this will certainly lead to a new all-time high. The most optimistic prognosis is that LTC can hit $500 by the end of the decade.

Litecoin Forecast: A Look Into the Future

Not even the most crypto-savvy expert can guarantee if Litecoin will take over the throne or lose its image as a trustworthy coin. Hence, we can’t by any means imply whether Litecoin is a prospective investment material nor can we single it out as top-pick crypto for the near future. 

However, once you’ve learned its purpose, potentials, and past behaviour, it’ll be a whole lot easier to decide whether LTC is your next investment destination. If you believe that cryptocurrency will evolve into a mainstream medium of exchange on a global level but don’t want to experiment with new, easily-transacted altcoins, then Litecoin sounds like a very reasonable and dependable choice. 

In the end, who’s to say? If  “silver” surpasses “gold” at some point in future, Litecoin could turn out to be the right decision even for those who ruled to keep their LTC as a promising store of value. 

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Ethereum Price Projections for 2022, 2025, 2030, 2050, and Beyond

ethereum price predictions

Ethereum Price Projections

When discussing Ethereum (ETH) in terms of its future price projections, we should start with two basic points. First, we should take into account that Ethereum has managed to establish its own identity and step out of the shadow of Bitcoin (BTC) and second, that Ethereum usability goes further than being just a medium of exchange.

Due to its wide utility, Ethereum has become a challenging topic for juicy price predictions among the avid crypto community. The main selling point of Ethereum is that it can be used to build decentralized computer apps (dApps), applicable in many other industries outside the crypto ecosystem. The business world observes the perks of such decentralized instruments with amusement, so it seems that experts debate when, not whether, dApps will take over the global economy.

For ETH, this outcome will bring a breathtaking rise in its price, but you know that crypto stories have disruptive storylines. Thereby, let’s discuss ETH projections from multiple perspectives.

How Does Ethereum Work?

Ethereum is an immutable and public blockchain ledger operating through a global network of computers that runs smart contracts to create and manage decentralized apps (dApps). This allows users to make transactions with each other independently, without bureaucratic ineffectiveness and a third-party intermediary to conduct that transaction. In fact, smart contacts are self-executing programs that can be triggered only after certain conditions have been met. 

In plain language, these automated contracts operate similar to vending machines programmed to deliver a product after you insert the required amount of money and select the exact product. Technically, there isn’t a human factor or a corporate authority involved at any stage of the transaction process. The advantage of decentralized apps is that they immensely reduce the risk of fraud and data breaches. All transactions are publicly registered on the blockchain ledger but they don’t expose the credentials of the participants. 

You might ask, How is this related to a virtual currency? 

Well, programmers that execute the code to run dApps spend a lot of hash power while doing so. Accordingly, the network creates a certain amount of virtual currency—Ether (ETH)—to incentivize “miners” for verifying the transaction (developing a high-quality code). The current mining reward is 3 ETH per block.

However, you don’t have to be a programmer and make a token out of scratch. ETH is available on reputable crypto exchanges and the majority of them allow you to buy some Ether in exchange for your local currency or another cryptocurrency in your possession.

The Price History of ETH

Interestingly enough, Ethereum was envisioned by a teenager who saw the endless potential in blockchain systems. At the time when Vitalik Buterin was developing the Ethereum project, there were only Bitcoin-like coins on the early crypto market, which, according to the creator, didn’t even nearly convey the blockchain principles of decentralization. 

In 2013, Vitalik released a white paper explaining this concept and earned the $100,000 Thiel Fellowship award. The following year, he and two other enthusiastic developers, Gavin Wood and Joseph Lubin, threw a crowdfunding campaign and by July 2015, they raised over $18 million.

Ether set off with a denominal price of $1.25 in August 2015. In the following two years, its price smoothly fluctuated up to $15. The first noticeable rise occurred in May 2017 when ETH hit $216 and by the beginning of the next year, it reached a handsome exchange rate of $1,066. A huge price drop followed very soon, but the Ether price never fell below $100 again.

In the summer of 2020, ETH started rising at a rapid pace and that upward line didn’t stop for a year—in September 2021, the token skyrocketed to its all-time high of $3,900. This was greatly influenced by the sale of a digital art piece for over 38,000 ETH. However, this outstanding price didn’t last for long. Currently, ETH has been ranging in a highly volatile price gap of up to +/-30% per day. 

Now that you have the big picture of Ethereum’s basics, we can have a more detailed read about ETH’s possible outcomes in the years that follow. 

Ethereum Price Prediction 2022

Ethereum may have noticed a few critical falls in September 2021, but the surge for decentralized finance (also known as DeFi) has never been greater. This means that its price is expected to get back on track by the end of the year.

Furthermore, NFTs (non-fungible tokens) transacting on the Ethereum blockchain have caught the eye of crypto-savvy professionals amid the DeFi boom that started in 2020. Well established strategists like Billy Bambrough predict that Ethereum will round up the year with an exchange rate of $5,000. However, the average opinions and technical analyses appear to be more realistic, predicting a price of around $3,000 by December 2021. 

Ethereum Price Prediction 2025

When it comes to Ethereum, experts seem to be more confident in their long-term predictions. Based on both technical and fundamental analyses, Economy Watch estimates that ETH is on its way to reaching a price of $10,000. By 2025, dApps are expected to be deeply rooted in the mainstream economy and based on the current rank, Ethereum will be the first choice among all other smart-contract generators such as Cardano (ADA).

In addition, Vitalik announced that the new Ethereum 2.0 version has taken more time than planned, but it’ll certainly be in force by 2025. The upgraded version will present certain changes in the consensus protocol moving from Proof of Work (PoW) to Proof of Stake (PoS), which means more energetically efficient, more secure, and faster transactions.

Ethereum Price Prediction 2030

As with all cryptocurrencies, you can’t find accurate numbers for 2030 even though the outlook is mainly optimistic (encouraged by “casual” 6-figure expert opinions). However, external factors are crucial in the long run and when it comes to Ethereum, these include the deployment speed of the new 2.0 Ethereum, the overall ETH staked, the inflation rate of fiat money and most importantly, currency governmental regulations, as smart contracts have had no validity in any local legislation worldwide yet.

Ethereum Price Prediction 2050

Long-term predictions far into the future are open to personally biased opinions as the truth is that nobody can know what will actually happen by 2050. When it comes to cryptocurrency in general, there are two possible scenarios. The first one is that governments across the world will tighten the restrictions on crypto trading and weaken their power and potential growth. In this case, Ethereum will levitate around the light grey area and its price will be a symbolic two-digit number. 

According to the other, more optimistic scenario, the entire digital economy will turn to the blockchain network, with dApps fully replacing traditional commerce apps and financial provider services. Hence, Ethereum’s price will shatter all ceilings, with one token worth millions of dollars.

Ethereum Projections: What Does the Future Hold?

It seems that Ethereum has brought a new solution for managing apps much faster than we were able to imagine. Ethereum and other tokens built on top of Ethereum are technically superior over traditional transaction mechanisms but nothing can ensure full implementation of their broader usability any time soon. At the end of the day, it all depends on external factors and the readiness of people to accept changes and transfer their businesses on a “neighbour” blockchain network.

But once the world manages to overcome the initial fear of the unknown, Ethereum holders will benefit instantaneously. So, maybe it’s time to diversify your portfolio with a more usable token before the next crypto boom takes place.

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Five Questions with Alexander Höptner from BitMEX

alexander hoptner bitmex interview

Five Questions with Alexander Höptner

We are excited to ask Alexander Höptner, CEO of BitMEX, five questions. Alexander joined BitMEX earlier this year and has been spearheading changes to their platform to accommodate the rapidly changing regulatory landscape that crypto fintech faces.

Get to know a little bit more about Alexander and BitMEX in this edition of “5 Questions”.

Questions & Answers

Q: First of all, thank you for taking the time to give your valuable insight about the challenges BitMEX has overcome and still faces. People either loved him or hated him, Arthur will always be a big part of BitMEX’s history. What does the current leadership shakeup mean for the longevity of the brand? 

Alexander Höptner: My mission as the CEO is to take what the founders have created to the next level – transforming from a crypto derivatives exchange to something bigger. Earlier this year we announced that we will expand our service offering by adding five new global business segments including Spot, Brokerage, Custody, Information Products, and Academy. That, though, is just the starting point with many more ideas in the pipeline.

Our transformation has just begun, and the BitMEX brand is very strong. Part of my mission is to expand and deepen understanding of what we stand for, and what we think is right. That includes our vision for the crypto ecosystem as a whole and building understanding of digital assets and crypto among as wide an audience as possible. So we’re continuing to support Bitcoin development, and also setting an example of being responsible innovators.

Q: We’ve seen powerful regulating bodies around the world clamp down on cryptocurrency trading in unison. Why should your former and prospective clients embrace KYC/AML during the maturation of the cryptocurrency industry?


Alexander Höptner: The scrutiny attracted from global regulators is proof that the market is growing significantly as well as maturing. In particular, we are seeing more institutional players recognising the opportunity cryptocurrencies represent – which we think is a good thing.However, that scrutiny is proof that if we aspire to the ideals of cryptocurrency to transform financial services, we need to work cooperatively with regulators around the world. We cannot and should not operate in silos from the rest of the financial services industry so we need to work closely to ensure we create a system that benefits those who matter most – the users themselves.

KYC is a prerequisite; it builds trust with users and regulators. As the first crypto derivatives exchange of our kind to be fully KYC-ed, we’re glad to see other industry players embrace KYC and AML policies. 

Zooming out, we see education and open dialogue with regulators as essential to industry growth and, as you said, “maturation”. We are now in active conversations and have established collaborative relationships with regulatory authorities in a number of jurisdictions,

Q: Coming from Börse Stuttgart as the former CEO seems like a natural fit as you transition to BitMEX. Besides overcoming regulatory issues, what improvements to the performance and stability of BitMEX’s trading engine can clients look forward to?


Alexander Höptner: In terms of the BitMEX trading engine, we have been working hard to scale up platform capacity to handle orders, and we are focused on continuing to upgrade and enhance the platform. The net result is a stable, safe, and secure trading experience for our users even during times of extreme volatility, as we have seen over recent months.

Our ambition, though, is to transform BitMEX to go beyond derivatives, and we appreciate the loyalty our traders have given us and which is such a fundamental part of our growth.

Q: Being that BitMEX is the inventor of the perpetual swap, one of the most traded crypto derivatives products, in what other ways will BitMEX continue to innovate with products?


Alexander Höptner: As you say, we created the perpetual swap so innovation is in our DNA. We’re bringing a positive change to BitMEX in the next few weeks with the introduction of Tether-margined contracts – something users are going to be really excited about. 

This summer we also made progress rapidly listing more Altcoin products, something our users have been asking for. 

Other products include the BitMEX Basket Indices which cover both the Altcoin (.BALTMEX) and DeFi (.BDEFIMEX) markets.

But now is no time to rest and say ‘job done’. As I said earlier, we’re rapidly expanding our products and services and in the near term you’ll see some even bigger announcements from us with the goal of expanding the choices our clients have on the BitMEX platform. Stay tuned.

Q: What’s one of the biggest mistakes you see a trader make early in their career?


Alexander Höptner: While I won’t offer any specific trading advice, I do believe that traders need to have conviction in their core investment thesis, standing by it whatever headwinds come their way.

I also think it’s important to self-assess continuously and be prepared to adjust a strategy or position when those headwinds start to chip away at underlying assumptions that support your thesis.

That’s a fine balance to pull off – staying true to your conviction while having the self-awareness to know when to change tack – but I think that’s what marks out successful traders.

About BitMEX

BitMEX is the next-generation cryptocurrency trading platform, which supports leveraged trading via Perpetual and Futures Contracts. Our mission is to professionalise the trading of cryptocurrency derivatives. We offer a fast, safe, and liquid way to trade and hedge cryptocurrency risk.

For more information, visit bitmex.com

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What are Pegged Coins?

what are pegged crypto coins

Taming Volatility with Pegged Coins?

It’s no secret that the crypto industry is as volatile as they come. Yes, traders are able to acquire an excess of wealth in record times, but unfortunately the pendulum swings both ways, making it difficult to predict what the future or even tomorrow brings. As a result, traders have been looking for ways in which they can diminish the risks and develop strategies which will allow them to preserve their acquired value.

The problem is not holding on to the assets, it’s holding on to their value. Yes, it might go up but there is a good chance that their value might plummet as well. Pegged coins have emerged as the frontrunner to solve this concern, but it’s not a perfect fit by any means. Let’s take a closer look and get a sense of why that is.

So… What Are Pegged Coins?

Pegged coins, as the name suggests, are crypto assets whose value is pegged to another asset or currency, which in turn make the pegged coin more stable. They can be pegged to fiat currency, most notably the US dollar. There is no one-size-fits-all when it comes to pegging crypto, as each investment and situation is a story unto itself. 

In order for the pegged currency to be regarded as stable, it has to have the same or a higher-value backup than the currency that it’s pegged to. If a pegged currency is linked to US dollars, then it must have a dollar backing that can support the pegging. That way, the value has merit and can be audited.

Pegged currency platforms should be open and transparent in regard to their reserves so that users will be able to see that the numbers do indeed match. If a peg currency doesn’t offer this, we suggest that you skip it altogether and do business with one that does and that has a verifiable backing.

Should You Utilize Pegged Cryptocurrency?

Perhaps the concept of dealing in a currency that is a substitute for a fiat currency might come as a bit off to new investors, however times, they are a changin’. Pegged currency is a way of providing stability, or at least more stability, than the swinging crypto tide offers. With pegged currency, the crypto boat rocks as much as the underlying asset does, and let’s face it, even in today’s economy, fiat currencies are still a lot more stable than crypto.

If everything is in order, the conversion rate of the pegged currency is consistent with the underlying fiat, which in turn provides quick and effective money transfers. Investors that acquire a lot of crypto assets might be inclined to turn them into a pegged currency such as USDT, which allows them to secure their value in the face of  the high rises and low falls of Bitcoin and Ethereum.

Peg currencies are also a great way of delivering instant currency and fiat swaps because they maintain the value of the fiat they’re tied to. Nothing is safe like money under your mattress, but for the time being, this is the next best thing. In a sense, pegged currencies are in crypto limbo as they haven’t exited the crypto world but mirror and move like the analog fiat world.

This is a perfect scenario for most investors, however not all of them.

The Downside of Pegged Currencies

One of the main issues for investors, when it comes to pegged assets, is trust. There is no way to be certain and verify that the platform actually has their pegged currency backed up. Yes, you can try to find out, but you can never be 100% sure. And even though pegged currencies are more stable than crypto, they might fail and fall apart altogether and not return their pegged value. 

In other words, there is no risk-free solution, it’s just a different approach to solving a problem that will work for some and not for others.

Much like crypto coins, not all pegged coins are created equal. After all, they derive their value and mirror the underlying currency, which varies for different pegged currencies. It will take a bit of research in order to get a better sense of which stable currency will work for you and suit your needs. The main points that should be considered are the coin’s availability at large and its price history.

What good is a pegged asset that is supported by no one and its price history graph looks like a rollercoaster ride?

US Dollar Tether (USDT)

First on our list, and probably the best known and most utilized pegged digital asset, is the USDT. It’s US dollar-pegged and fully transparent when it comes to its asset balance, which you can check at any time at the coins’s page

USDT is in partnership with companies such as Bittrex, ShapeShift, and Poloniex that further its reputation and availability on the market. Furthermore, it’s made good on its name of being a stable coin, as it hasn’t deviated a lot from its target price. However, there are investors who have been quite skeptical, fearing that the platform is and has been producing tokens without properly backing them up, as USDT doesn’t allow third-party audits and doesn’t offer insurance on their tokens. 

Steem Backed Dollar (SBD)

Steemit is a social media platform that houses not one, but two cryptocurrencies. The crypto Steem and the tether Steem Backed Dollars (SBDs) are given out to active users. The coins can be turned around and converted to goods or spent on various services. The philosophy of Steemit is that SBDs are valued at a US dollar per Steem. However the ins and outs of how the coin maintains its balance are difficult to understand. 

The Steem Backed Dollar hasn’t proven to be a very stable asset and its availability is much narrower than the other crypto, Steem. The problem came when the coin started exhibiting wild swings and has since not returned to its established tether price. It’s very difficult to track and verify its full trajectory. A coin that can’t mirror it’s pegged asset is an equivalent to a gunfight in the wild West: no rules apply. 

TrueUSD (TUSD)

TrueUSD serves as another stable coin that has given USDT a good run for its money, as it hasn’t deviated much from its underlying asset – the US dollar. The platform utilizes an escrow protocol as a way of providing investors with the TUSD currency without getting in direct contact with any assets generated from the trades themselves. Instead, the assets are managed by a third-party platform that accounts for the token-to-US dollar ratio. 

The platform’s tokens can be converted into US dollars at any given time. What’s more, TrueUSD platform provides their customers with full transparency and third-party audit reports. Even though it looks near-perfect on paper, TrueUSD has an Achilles’ heel that lies in its availability, because only a handful of platforms support it and offer it to clients.

A Few Words Before You Go…

There are times and circumstances when having your funds in the form of stable assets is the best option, especially when you don’t want to remove your assets from the cryptosphere and convert them to fiat currencies. Pegged currencies offer better stability than regular cryptos and your funds are well protected.

However, it still comes down to your currency of choice and timing. Remember that pegged currencies are not the be all and end all of coin storage, they are simply another tool in the arsenal, another road to take when some of the usual avenues seem less appealing.