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The Best Cryptocurrencies to Invest in in 2021

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.

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What is your earnings potential with Alphachain Capital in 2021?

Here at Alphachain Capital we now provide our traders with a $20k funded account upon completion of our training programme.


It doesn’t stop there though.


We also have a clearly defined pathway for progression for all of our traders.


Those that perform well and hit the pre-defined targets, get access to increased amounts of capital.

All the way up to $500k .

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News Recap: The Pound continues to see good economic data releases and UK inflation is still running at high levels

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.

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The Best Currency Pairs to Trade

The Forex market is one of the most exciting markets a trader can be involved in. The main reason behind this is the second to second fluctuation in the market. Due to this market’s general volatility, the Forex market has many opportunities for making a profit if you utilise the right strategy and choose the right currencies. If you want to trade Forex successfully, you’ll need to understand at least the basics of currency pairs. But what exactly are currency pairs? What are the best currency pairs to trade? Keep reading this handy guide to learn more.

What are Currency Pairs? 

Also referred to as Forex (or FX) Pairs, currency pairs are the quoted price of the exchange rate of two different currencies traded in the Forex market. An example of a currency pair would be EUR/GBP, which refers to the Euro/Great British Pound. Currency pairs refer to one currency in relation to another, comparing the exchange rate for traders to spot changes and potential opportunities.

Handy Forex Trading Terms

To ensure your understanding of currency pairs is as strong as possible, it is important to understand key Forex trading terms that will likely come up frequently in your trades. Here are 5 of our top handy Forex trading terms:

  • Bid: A bid refers to the price a dealer is willing to pay for a currency. When you sell a currency you will receive the bid price.
  • Ask: The ask is the price at which the dealer will sell the currency. When you buy a currency you will pay the ask price.
  • Spread: The spread is the difference between the bid and the ask price. Traders often take the spread of a currency sale as a commission.
  • Pip: In trading, a pip is an acronym for “percentage in point” or “price interest point”. A PIP represents the smallest amount of change an FX pair can have in the market.
  • Volatility: Volatility in the market refers to price fluctuations, some of which can be beneficial for certain types of trading strategy.

Read More: The Glossary of Must Know Forex Trading Terms

How To Choose the Best Currency Pairs to Trade

Now that you understand the basics, the key way to ensure you choose the best currency pairs to trade is to understand market behaviour. Great market analysis will determine which strategies to employ and help you choose which currencies to trade. Is the market volatile or stable? Does the market have trending behaviour? These sorts of questions will influence your choice of currencies. For example: if you are a day trader, major currencies are going to be more suitable for you. Whereas if you’re a swing trader, major/minor and exotic currency pairs might be more appropriate. It’s important to do your research beforehand. If you are a newbie Forex trader and you have no idea what currency pair to choose from, look for those that have a high average daily trading volume.

How Many Currency Pairs Should I Trade?

The best strategy in Forex trading differs depending who you ask, but the general consensus is to use several currency pairs. This way you can spread your risk across various markets, which minimises the potential damage that could be done in case you get into a losing streak. Having trades open at all times should also allow you to take advantage of major price swings and cash in on them before other traders become aware of what is happening. 

As a beginner, it’s best to choose 1-2 major currency pairs and focus your efforts on learning and improving your performance trading these pairs to ensure you don’t spread yourself too thin too quickly. Ideally in the long run you can focus your efforts on 5-10 currency pairs.

Source

The Best Currency Pairs To Trade For Day Traders

EUR/USD: The EUR/USD pair represents the amount of US dollars required to buy a single euro. This currency pair is the most traded in Forex trading, as it is made of two of the world’s strongest economies. The exchange rate here is impacted by government policies and currency market’s demand and supply for the pair. This tends to be strong as the small spread of major currencies creates a high volume of trades. 

USD/JPY: The USD/JPY currency pair shows how many Japanese yen are needed to purchase one U.S. dollar. USD/JPY is the second most traded currency pair in the world and  trading this pair is known as trading the ‘Gopher’. There are numerous economical factors and indicators that impact this pair’s exchange rates.

GBP/USD: GBP/USD is one of the oldest trading pairs around. Also referred to as trading the ‘Cable’, this currency pair is another one of the most popular when it comes to trading Forex. GBP/USD exchange rate is influenced by factors that impact the value of the British pound and/or the U.S. dollar in relation to each other and other currencies. 

USD/CHF: One of the most common currency pairs in today’s foreign exchange market is USD/CHF, which represents a significant quota for daily trading. Both veteran traders and newcomers alike are attracted to this particular pairing due its popularity among traders from all over the world. Economic indicators from both countries, such as gross domestic product (GDP) and employment data, have a significant impact on this currency pair’s exchange rate. Trading this currency pair is also known as trading the ‘Swissy’.

AUD/USD: Trading the Australian dollar/U.S. dollar currency pair is known informally as trading the ‘Aussie’ among Forex traders. This is another of the most popular currency pairs to trade worldwide, as Australia is among the richest countries in the world when it comes to natural resources like coal, metals, diamonds, wool and meat. As Australia heavily relies on these raw material exports, this currency pair exchange rate is significantly impacted by commodity prices. 

USD/CAD: Also known as trading the ‘Loonie’, the U.S. dollar and Canadian dollar are another popular currency pair in Forex trading. This is a popular pair because of the large amount of cross border trading that takes place between Canada and the U.S. The Canadian dollar is largely considered a commodity currency due to the high amount of natural resources (like oil) that are mined and exported to the U.S, meaning that this currency pair is also significantly impacted by these commodity prices.

Ready To Start Trading Forex?

Are you ready to start your Forex trading career? At Alphachain, we offer training with expert mentors as well as access to your own trading psychologist to keep you on the right track. We even offer fully funded trading accounts. Look into our Global Funded Trader Programme today.

Discover Insightful Market Analysis Over On The Alphachain Blog or Check Out Our Alpha Funded Trader Program To Get Started! 

News Recap: Bitcoin also performed well alongside traditional markets in the past 7 days as it broke and remains above $55,000 on strong fundamentals

Last week was Non-Farm Payrolls week and it was yet another highly anticipated data release. In the end, the headline number was weaker than expected but that apparently didn’t seem to be enough to take the Fed off its tapering course. The RBNZ became the second major central bank to hike rates as expected, and there were no major surprises to shock markets either way.

The US Dollar finally took a breather after a few strong weeks, with the NFP reading putting a brake on its appreciation. The Euro failed to make any progress, hindered mainly by the terrible German economic data releases which included factory orders and industrial production was huge misses. The Pound had a decent week as bets start favouring an earlier rate hike by the Bank of England. With the strength in inflation and wage growth running past expectations, it seems that the BoE has very few options left. Commodity currencies did well on the whole, as oil continued its impressive bull run.

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News Recap: traders will await the outcome of central bank meetings taking place this week

Last week saw market participants digest a wave of central bank commentary as several FED members delivered speeches providing their own views on monetary policy, inflation, and tapering. The US Dollar was lifted higher by the rally in treasury yields which saw USD/JPY briefly test the 112.00 level. EUR/USD slumped below 1.1600 before paring the losses towards the end of the week as financiers and investors looked towards a new month and quarter. Equities ended the month of September in the red with the SPX and Dow Jones snapping a 7-month win streak.

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News Recap: Bitcoin traded lower last week as participants reacted to negative news from authorities in China

Last week saw market participants digest the outcomes of the wave of Central Bank meetings which included the FOMC. The Central Bank gave notice that if progress on its economic goals continued as expected then a reduction in the pace of asset purchases may be warranted. The news sent the greenback higher as it surged to its best levels since the 20th of August. In addition to this, the FED now sees a total of seven rate hikes over its current forecast horizon whilst the views on the labour market were broadly maintained. Market participants were surprised by Fed Chair Powells’ comments as he noted that the tapering of asset purchases could be concluded by the middle of next year if the economy remains on track. Moving forward, financiers and investors will now await the next meeting in November for a possible taper announcement.

Asia News

Markets in Asia began the week mixed as the region rallied somewhat on reopening headlines but struggled to climb further with market participants weary of month and quarter end. The ASX 200 closed higher by 0.7% with outperformance seen within mining related sectors.  The Nikkei 225 was unchanged with investors treading cautiously ahead of the upcoming LDP leadership race.

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News Recap: The week ahead will see several major Central Bank meetings as financiers and investors remain cautious over the path of the economic recovery.

Last week saw market participants digest a wave of US data which included a strong retail sales print. The greenback surged above the 93.00 as market participants look towards this week’s FOMC Meeting for further guidance and direction regarding the impending taper announcement. Commodity currencies were on the pressured as the week progressed with Australia reporting a loss of over 140,000 jobs in the past month. The week ahead will see several major Central Bank meetings as financiers and investors remain cautious over the path of the economic recovery.

Asia News

Markets in Asia began the week negatively amid the Evergrande concerns and a continued slump in commodities. Risk appetite was on the backfoot with a few holiday closures in the region and a busy Central Bank focused week ahead. The Hang Seng dropped nearly 5% whilst Evergrande plunged by another 17% on growing default fears. It has been reported that the company who currently owe over $120mln in bond coupon payments have been repaying investors with discounted real estate. The ASX 200 was lower by around 2% as underperformance in mining names and ongoing woes in commodities spooked market participants.

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Alphachain Capital Trading Performance 2021

A QUANTITATIVE DIGITAL ASSET INVESTMENT FIRM

GLOBAL DIVERSIFIED ALPHA (GDA)

Alphachain’s Global Diversified Alpha is a systematic momentum-based cryptocurrency investment strategy. The strategy provides exposure to a broad range of highly liquid digital assets markets, yielding superior risk-adjusted returns compared to the industry benchmark, Bitcoin.

The strategy goes both long and short, trading on the largest and most liquid global cryptocurrency exchange, Binance.

LIVE TRADING TRACK RECORD: PERFORMANCE VS BENCHMARK

GDA went live on 6th November 2020. Monthly performance up to 9th September 2021 (307 trading days)

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News Recap: Markets in Asia started the week off cautiously following last week’s five-day losing streak on Wall Street.

Last week saw market participants digest a wave of central bank meetings which included the ECB lowering the pace of purchases into Q4 with ECB President Lagarde noting that it was a time for recalibration rather than tapering. The Euro traded lower following the announcement and currently sits below 1.1800 against the greenback. The RBA maintained their current monetary policy stance whilst increasing the duration for their new bond-buying programme citing effects of the delta variant outbreak.

Asia News

Markets in Asia started the week off cautiously following last week’s five-day losing streak on Wall Street. The ASX 200 was up marginally amid gains within commodity related sectors following the recent press higher in Oil. The asset has climbed above the $70 level in an extension of Friday’s gains despite the renewed strength for the dollar. Recent comments from Goldman Sachs also provided a lift for the asset as the company believes that a significant rally is on the horizon due to increasing levels of scarcity. Back to Asia, the Nikkei 225 was lower and lacked direction whilst the Hang Seng dipped by over 2% amid losses in real estate and tech.

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News Recap: Bitcoin broke above $51K for the first time since May as enthusiasts continue to flock to the Cryptoasset following its most recent bull run

Last week saw market participants digest a poor NFP print as only 235,000 jobs were reported to have been added in the past month suggesting that the FED could delay the timing of tapering until later in the year. The report sent the weakened with the greenback as it moved to its lowest level in a month.

Commodities News

Commodity currencies were amongst the top performers during the week as AUD/USD climbed to its best levels since July. The asset benefited from the broad risk on rally despite a worsening Covid-19 situation in the nation. Heading into the week ahead, the RBA will hold their final policy meeting for Q3 where all eyes will be on QE. At the prior meeting, the board stood by its taper decision which would see the weekly purchases drop down to 4bln AUD from early this month.

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6 Best Forex Trading Books for Beginners in 2021

When you’re a new trader one of the best things you can do is to enhance your experience and education by learning as much as you can about trading.

Whilst a great place to start is with demo accounts and simulated trading platforms, another great resource that is often overlooked is books.

Below we’ve compiled our list of the 6 best forex trading books for beginners for exactly that reason.

Over time a number of different books about forex trading have been published and some of the very best contain invaluable information, advice and the beginnings of strategies that beginners can take with them as they develop their trading skills to become successful.

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