Trading cryptocurrencies is an hazardous exercise even for experienced traders who are not familiar with the logic of the blockchain.
Cryptocurrencies and cryptocurrencies
It must first be said that cryptocurrencies are not all the same.
The industry is filled with projects that seek to apply blockchain technology to a variety of consumer and business needs.
The crypto community and regulators clearly distinguish between different types of cryptocurrency based on their uses.
For simplicity's sake, we can group the above into three macro categories:
The term AltCoin, short for Alternative Coin, means alternative digital currencies to bitcoin. These include so-called 'Meme Coins', i.e. coins representing a game or joke such as DogeCoin
Crypto tokens, or cryptographic tokens, provide services other than just payment, via the blockchain. For example, the ability to represent the value of a certain asset or action via tokens and manage them via the blockchain. Generally these tokens are issued with a very clear and stated purpose, which can be the store of value, capital raises in organisations or the means to operate a specific blockchain.
Stable coins are cryptocurrencies created to make payments but, unlike bitcoin, have a stable price because they are tied to a stable medium of exchange. An example would be the Tether, which guarantees a 1:1 relationship with the US dollar.
Same Assets Class?
Definitely not. The above immediately makes us understand that trading with cryptocurrencies becomes a very different practice than what we are used to doing with traditional currencies or stocks.
The dynamics present in each cryptocurrency and token must be investigated in a different way according to the underlying purpose and project. Understanding its value proposition and the trade-offs that underpin it.
A Crypto Index is a well-defined portfolio of cryptocurrencies that have been selected by our experts according to specific market and business segment indicators.
Top Trend: A portfolio consisting of the best performing tokens over time. Tokens that have consolidated their gains regardless of their short-term volatility. Analysts call them "too big to fail" supported by the number of holders and their well-established use in global transactions;
Balanced: A selection of Cryptocurrencies with proven. The index is constantly balanced by store-of-value tokens backed by physical gold and investment diamonds with an intrinsic value not correlated to the cryptocurrency arena;
DeFi: The development of DeFi (Decentralised Finance) projects is demonstrating the emergence of a new industry, a confirmed trend that will change the paradigm of traditional finance. A financial system that does not rely on central financial intermediaries such as brokers, exchanges or banks and instead uses smart contracts on the blockchain. A future that is now a fact;
NFTs: The NFT market represents an epoch-making change in the world of technology and art. The simplified representation of an NFT could be: an artwork and its certificate of identity digitalised and represented in a token. The volume of the art market in 2020 alone is $50 billion. Less than 1% has now been converted into NFTs with a growth rate of 1000% per year. The transaction of the art market into NFT is under everyone's eyes and only at the beginning;
Infrastructure: An index dedicated to the infrastructures that drive and support the various blockchain projects. From the newest and most promising to the well-established ones, following the evolution of the infrastructures allows investors to support the whole concept of the blockchain market and its countless developments;
Top 10: The Top 10 Index represents the best cryptocurrencies that have distinguished themselves over time in terms of medium-term growth. This trend allows them to be properly balanced. Ephelia's specialists constantly monitor development policies and results, as well as the effective use of the underlying technologies which drive the growth;
We strongly believe that all the bad rumours spread about cryptocurrencies and their trading on the market have been generated by a strong incompetence of the people who initially approached it and believed they had found a new gold mine.
It is not enough to study this market, you have to understand it and live in it.
Ephelia has been involved in the blockchain industry since its inception and we have witnessed the birth of cryptocurrencies. We have a deep knowledge of their intrinsic peculiarities and their volatility in the markets and thanks to skills of our team we convert this in investment opportunities.
For more info please do not esitate to contact our team at email@example.com to discuss about our Crypto strategies