Cryptocurrencies are in essence, digital money. The difference between cryptocurrencies and other forms of digital money, like central bank digital currency, are that cryptocurrencies use blockchain technology to make them safe from counterfeit or double spend.
Due to their widely reported security, self-custody aspects, and ‘digital gold’ comparisons, the popularity of cryptocurrencies is skyrocketing. Cryptocurrencies surge to the mainstream is so great that it has left brand new investors weighing up which is the best cryptocurrency to invest in 2021.
In this blog we’ve narrowed down the 7 best cryptocurrencies to invest in for new investors, and we’ve included one to watch. If you’re looking to start a career in trading cryptocurrency markets meanwhile, take a look at our funded cryptocurrency trader programme.
Watch Head of Trading Academy Gavin Pannu run through current market themes covering the following topics:
*Political Risk at the current moment
Market Trading Analysis
Stock prices in London are set for a higher start to the week despite a lack of drivers with the US market shut for a holiday on Monday. Today’s market open will see European stocks open higher, with the main focus this week being US earnings, along with the latest wages, unemployment and inflation numbers from the UK economy, and the Bank of Japan monetary policy outlook. A BoJ policy-setting meeting began on Monday, with a decision on monetary policy due to be announced on Tuesday.
China’s pandemic-defying economic growth slowed in the final months of 2021. The world’s second-biggest economy, a key driver of global growth, expanded 8.1% in 2021 on its strong virus recovery, beating forecasts of 8.0% in an AFP poll, and the 2.3% reading for 2020. But much of that growth came in the first half of the year, with the economy shaken by a series of shocks towards the end of 2021.
US equity markets ended the week lower on new concerns about the omicron variant of COVID-19 and a weaker than expected jobs report. The omicron is spreading and may be more contagious than the delta variant sent stocks tumbling. Shares of cruise lines and airlines declined. Tech stocks were hard hit as well, with some of the biggest names in the sector falling. Market sentiment was also negatively impacted by the Labour Department report that just 210,000 jobs were created in November, well below economist’s forecasts and the fewest of any month in 2021.
Stock prices in London are seen to recover some of Friday’s sharp losses early on Monday opening session as markets continue to grapple with a new coronavirus variant. Global stock markets tanked on Friday, with overnight Asia session extending losses into the new week, after this new Covid-19 strain now known as Omicron cast doubt on global efforts to fight the pandemic, due to fears that it is highly infectious and could potentially evade vaccines. The new variant, on top of a rebound in case counts and widening restrictions in Europe, threaten to put a damper on the global economic recovery. Another widespread shutdown could put the already overstrained global supply chain into deeper trouble.
Several countries have announced plans to restrict travel from southern Africa, where it was first detected, including key travel hub Qatar, the US, Britain, Saudi Arabia, Kuwait and the Netherlands. But the virus strain has already slipped through the net and has now been found everywhere from the Netherlands to Hong Kong. In Australia, authorities on Sunday said they had detected it for the first time in two passengers from southern Africa who were tested after flying into Sydney.
Stocks in London are set to open lower on Tuesday, as concern over growing cases of Covid-19 in Europe overshadows Monday’s news that US President Joe Biden has confirmed Jerome Powell as chair of the world’s most influential central bank. Fed Chair Powell was getting the nod for another 4-year term leading the US Federal Reserve was the catalyst that managed to pull European stocks back off their lows of the day yesterday. Although it was not enough to pull the likes of the DAX and CAC40 into the green. Europe’s return to the pandemic’s epicentre has been blamed on a sluggish vaccine uptake in some nations, the highly contagious Delta variant, and colder weather moving people indoors again.
So, what’s your trading personality? Maybe that seems like a weird question, but trading is an activity that needs thoughtful decisions and actions to build the best strategy for you as a trader.
It might be hard to find which style of trading is right for you without knowing your trading personality type first. The good news is that you don’t have to make your personality fit your trading strategy, it is better to be honest with yourself about what fits best for you. Keep reading to learn more.
Volatility is a measure of the change in price over time. Volatility is measured by the annualised standard deviation of daily returns for a particular market over a particular period of time. It shows the range to which the market price of an asset is expected to fluctuate over time. The more volatile a market, the riskier it is considered to be and the higher return you can expect if you invest in that market.
Different levels of volatility will be right for different markets and different trading strategies. For example: if a market is very volatile it may be the right choice for day traders but not for long term investors.
A weak performance by Asian equity markets overnight, despite upbeat economic data from China at the weekend. The weekend data brought a sharp increase in the trade surplus as export growth outstripped imports. A 27.1% rise in October exports does help reduce some of the fears around supply chain issues and energy-induced shutdowns. In the US, the Democrats have managed to agree upon the $1 trillion infrastructure package pushed by Biden, with the President expected to sign off on the bill.
Markets in Asia started the week with a negative bias as the region followed on from last Friday’s US session although sentiment began to improve as participants looked towards the opening of European markets. The ASX 200 was higher by around 0.4% supported by gains in the energy sector whilst the Nikkei 225 slumped close to 1% with Softbank and Fast Retailing being the biggest losers. In China, a spokesperson for the National Health Commission outlined that the most recent Covid outbreak covers 11 provinces with cases expected to rise further.
In the UK, Chancellor Sunak is set to announce the UK Budget later in the week and has cited that inflation and interest rates have been key factors to bear in mind ahead of the release. Sunak has reiterated that there must not be a return to significant economic restrictions despite the number of cases continuing to rise as the nation heads into the Winter period. The budget on Wednesday is set to see the minimum wage raised whilst restrictions on public sector pay lifted.
While we know that trading psychology is an important part of a traders toolbox, do we really understand what makes an effective trading psychology? When we develop this understanding, we open up the opportunity to tradein the zone. But what exactly does it mean to trade in the zone? How does our trading psychology affect our performance? Keep reading this expert industry guide to find out all you need to know.
Last week saw the return of optimism in the markets. Inflation is still at elevated levels and the supply chain remains a concern, but the markets seem to believe that these issues will eventually be resolved.
The big question is still what actions will be taken by central banks, and what effect they will have on risk assets. The Pound continues to see good economic data releases and UK inflation is still running at high levels. The market is pricing a full 15bp hike in next month’s meeting and more in February 2022, and this has risks.