Blog

Does it mean every investment or trade has a 50/50 chance for profit or loss? If you understand the concept of the Risk/Reward ratio, it’ll be way easier to steer through the choppy waters of the crypto market. Using a crypto portfolio tracker has become more convenient than it was in the past. As an example, you have acquired Litecoin at different prices, which makes it difficult to identify the individual purchasing prices. Since the bitcoin wave came in 2009, many other coins also came back with multiple projects.

Deposit crypto to our exchange and trade with deep liquidity and low fees. Ludvigson , “Consumption, aggregate wealth, and expected stock returns”, The Journal of Finance 56 , 815–849. An empirical investigation into the fundamental value of Bitcoin”, Economics Letters 130, 32–36. You have to create your account and get the verification done by the exchanges.
Things began to look up for LTC when the price rejected a recognised support level around the $100 – $120 region. Since then, the price has tried, with little success, to climb higher. LTC is currently trading in a downward channel and looking to test the support level at $69. https://www.beaxy.com/market/drgn/ If this holds, it may be the incentive for bulls to drive the price out of the descending channel. Litecoin charts for all timeLitecoin is more available for buyers. Another reason for the price disparity is that Bitcoin, like gold, has better recognition around the world.

CryptoGames

For example, Litecoin integrated the Lightning Network – a second-layer technology for Bitcoin to create micropayment channels for payments – ahead of Bitcoin. Some analysts believe BTC’s consolidation above the SMA could propel the cryptocurrency’s recovery. Bitcoin is having its best week since March, but with the Federal Reserve still in inflation-fighting mode, it seems like the only thing that can really get traders juiced up is the upcoming Ethereum Merge. Yet, there are only four times more Litecoin in existence than Bitcoin. Given how long Litecoin has been along, the trust it has established and some clear technological advantages over Bitcoin, one would expect the gap in their valuations to be smaller. I think that’s conservative, remember ath for the ratio is around .045 btc which was all the way back in November 2013. I think we’ll finally break that last record this time around and probably blow way past it. I’d pay $1800 for a futures contract of Litecoin for 3 years from now. I’d also sell it when it gets to 3 or 4K, a year before it expires. LTC is in every way superior to BTC except network hash power, but that would be self-resolving as the price increases and miners continue to add.
Increasingly more people prefer BTC as an alternative for fiat money. What’s more, BTC is a superior store of value, while LTC is better for quick purchases. Analysts say that, in the long term, LTC may see its price increase and reassume its previous rank. If you’re looking for a good return in 5 or more years, pay attention to this cryptocurrency. Keep in mind that, unlike if you were to buy and sell litecoin, you won’t need an account with an exchange. This is because you trade on the prices offered, which we derive from multiple exchanges on your behalf.

Total cryptocurrency market capitalization is now a touch below $900 billion, according to data from CoinMarketCap.com. Crypto markets, experts say, are overleveraged and liquidity remains tight. Any data, text or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results. CoinDesk is an independently managed media company, wholly owned by the Digital Currency Group, which invests in cryptocurrencies and blockchain startups. DCG has no operational input into the selection or duration of CoinDesk content in all its forms.

Bitcoin Is Here to Stay, Ex

It’s hard to look at these numbers and state that it’s all a coincidence. Remember, humanity has valued, and thus has had a market for, gold and silver for millenia, so the concepts and values of these precious metals are ingrained into the human economy. Everyone knows that gold is valuable, and silver is valuable, and everyone knows that gold is worth more than silver. It’s no big stretch of the imagination to conclude that Bitcoin and Litecoin, designed to be the crypto equivalents of the two big precious metals, have succeeded in mimicing their relative values. Nobody disputes Bitcoin as the “gold standard” of cryptocurrencies. Bitcoin, as the pioneer of the crypto economy, has enjoyed the benefits of being the first mover in this new financial era. Likewise, it is generally accepted that LTC is the “silver standard” of cryptos.

Through all of these lenses, I seek to produce content that is educational and entertaining, and I thank you sincerely for taking the time to read what I have to say. Please follow me on Twitter at @tonyspilotroBTC and feel free to drop me a line if you would like to work together. Conversion rates are based on CoinDesk’s Bitcoin Price Index and the price indices of other digital assets. World currency prices are based on rates obtained via Open Exchange Rates. If you’re a regular trader or short-term investor, the risk factor always plays against you. Especially in a market that can be extremely volatile at times, making a profit from day trading could be difficult.

Litecoin Price Today

Recently, PlanB completed a number of exceptional studies into the relationship between Bitcoin’s stock-to-flow ratio and the network value . What was established is that a power-law, with a correlation factor in excess of 95%, exists with a reasonable agreement to the precious metal’s markets. Further analysis showed that the model fit was robust enough that taking many sub-sets of Bitcoin’s data returned a comparable power law distribution. The market for fixed supply crypto assets is viciously competitive as all altcoins exist in the shadow of Bitcoin’s commanding reputation, liquidity and market dominance. Bitcoin’s first mover advantage and hardcore monetary policy undoubtedly makes it the front-runner in a new age of digitally native scarce assets. We supplement the graphical evidence with a formal estimation that takes into account that prices, computing power, and network, are endogenous variables that are jointly determined at the equilibrium. As such, the graphical evidence might portrait a deceivingly strong positive relationship among them. To resolve this empirical hurdle, we follow Lettau and Ludvigson and Lustig and Van Nieuwerburgh and use the dynamic ordinary least squares of Stock and Watson . Our estimation shows that, on average, the prices of five major mineable cryptocurrencies – namely, Bitcoin, Ethereum, Monero, Litecoin, and Dash – depend on their computing power and network.

It’s hard to think that anything but the silver analogy is what propelled Litecoin to so close a value as silver. Risk assets are investments that experience a significant amount of volatility in the usual course of the market. When the value of this metric goes up, it means the market cap is outpacing the realized cap at the moment, leading to investors having more motive to sell the coin. The trader who shared the above chart says that LTCBTC is currently at long-term support of a falling wedge, coinciding with a bullish divergence on the on-balance volume indicator .
Overall, computing power and network should be positively related to prices. Clustering offers a more subtle discrimination of the cryptocurrencies that are offered by the K-means on the mean and standard deviation, or by the TADPole on the time series. From our point of view, the log distribution offers a nuanced summary that considers not only the mean and the standard deviation of the distribution, but also other aspects such as symmetry, kurtosis, or tail behavior. Therefore, we consider that Hist-DAWass is a suitable and promising profiling tool for investors, and believe that it could be used in financial markets in general. The classical methodology based on MST algorithms is applied by Song et al. , to filter out the influence of Bitcoins and Ethereum; it detects six homogeneous clusters.

If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Investopedia does not include all offers available in the marketplace. Investopedia requires writers to use primary sources to support their work. Read more about how much bitcoin in dollars here. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.

Figure7 represents the time axis, and the medoids of each cluster. Figure8 shows the annual and quarterly density functions of the three medoids. Also, Fig.8a represents how different the density plot of the Cluster 1 compared with the others corresponding with the higher volatile cryptocurrencies is. Clustering shows that it is possible to effectively discriminate the log-return distributions, considering central tendency, dispersion, and shape. It is a dispersion measure for histogram data based on the L2 Wasserstein metric . This statistic measures how representative the prototype of a cluster is. According to this statistic, Cluster 3 would be the more uniform cluster, whereas Cluster 5 would be more heterogeneous. The five distributions exhibit slightly negative central tendency measures, with Cluster 1 having the lowest values. They are quite symmetrical, with low skewness and heavy tails, as indicated by a high kurtosis. Skewness is closer to zero in all cases, but positive, which means that the right tail of the distribution is fatter; in other words, it has more extreme positive return values on the right tail.
We have come to many conclusions but one of the most powerful is the relationship to wealth preservation and the savings rate in China. If this postulation holds true, Bitcoin will not see any long term drop, in fact if just one percent of Chinese hold $20 of Bitcoin it will raise a single Bitcoin price to over $10,000 per coin. If just one percent of Chinese hold $20 Litecoin it will raise a single Litecoin price to over $5,000 per coin. Litecoin offers a far higher ratio for growth and perhaps far higher usage. I do not postulate that Litecoin will pass Bitcoin in popularity for a number of reasons. However the drive to save and preserve wealth in China already has had a huge impact on Litecoin and this trend will continue. The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money. This option does not involve you taking ownership of any cryptocurrency, so you never need to deal directly with an exchange.

That growth trend favourably influenced the popularisation of cryptocurrency and attracted the attention of investors again. In the summer of 2015, many members of the cryptocurrency community discussed a possible increase in LTC’s price due to a halving of its mining block reward. Accordingly, a price pump was carried out on 10 July 2015, and LTC rose to $8 before rapidly dropping down to $3 and then to $2. Copy the trades of leading cryptocurrency investors on this unique social investment platform.

• An altcoin which performs favorably relative to Bitcoins power law may well be considered to have an appreciable monetary premium.
• Some analysts believe BTC’s consolidation above the SMA could propel the cryptocurrency’s recovery.
• We apply clustering ensemble techniques to reduce the randomness of partitional cluster results.
• This website is using a security service to protect itself from online attacks.

The outcome of the search was cryptocurrencies DCR, LTEC, XMR, and ZEN. We confirm the persistence of many of the associations in a longer period which seems to confirm that these associations are not conjectural, but prolonged. In conclusion, the lowest percentile P70 is allocated in Intersection 1 , Intersection 2, Intersection 5, and Intersection 6. Results reveal that it discriminates three groups of different behaviors that could interest the investor depending on his/her risk-aversion profile, sufficiently. Table5 shows all the intersections, and those with a cardinality greater than 100 , representing 75% of the total market. In a contour plot that helps us to locate areas in which cryptocurrencies tend to be more concentrated. We also downloaded the data for 2019, to extend our experiment for a longer time-frame, analyzing the generalization of the results. Cryptocurrencies with different technologies, purposes, and user bases, coexist, and form a highly heterogeneous market that is difficult to understand and manage, for those addressing a good investment allocation.

Supporters of a block size increase were more committed to an on-chain medium of exchange function. In conclusion, in our proposal, the combination of the results of the different clustering techniques by intersecting the clusters is quite an intuitive and straightforward method. However, studies could examine much more sophisticated techniques. For instance, the heterogeneous large-scale group decision maker approach applied by Chao et al. is mostly based on fuzzy clustering, where we could consider each clustering technique as a decision-maker. Thus, the heterogeneous LSGDM allows us to modulate the weight of each technique upon integrating them . In any case, the proposed methodology is fully open to test other techniques but always ensures the descriptive capacity of the prototypes, which should be considered if other potential techniques are proposed. Or shape-based clustering seem to offer more unstable results, probably because they use disaggregated data, and the results are more sensitive to small changes. This means that there is no agreement between the different clustering results, which matches our aim of using clustering results that provide complementary views on the market. Given the size of the cluster, these cryptocurrencies represent the predominant behavior in the market, which is unsurprisingly the most moderate behavior, and includes the most popular cryptocurrencies.

Bitcoin Cash appears to have suffered the most significant decline in any monetary premium it may have attained and the scatter in S2F suggests instabilities in hash-rate leading to irregular coin issuance. These analyses establish confidence that scarcity (as measured by stock-to-flow ratio) strongly influences human perception of value which is subsequently expressed through price. Centralised coins where control of the maximum supply and/or inflation rate can be manipulated by a discrete number of entities. Establishing and operating a gold mine requires a significant outlay of CAPEX and OPEX costs as well as significant time and human effort required from exploration through to production. Gold as an element is also of low abundance on earth due to its atomic properties . This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data.

Bitcoin and other cryptocurrencies are like the email of the financial world. The currency doesn’t exist in a physical form, and the coin is transacted directly between the sender and the receiver without banking intermediaries to facilitate the transaction. Everything is done publicly through a transparent, immutable, distributed ledger technology called blockchain. SoFi Crypto is offered through SoFi Digital Assets, LLC. Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, involve a high degree of risk, and are unsuitable for most investors.

The altcoin also led the charge in the 2019 crypto market recovery, fueled by buzz surrounding the protocol’s block reward halving. Bitfinex offers order books with top tier liquidity, allowing users to easily exchange Bitcoin, Ethereum, EOS, Litecoin, Ripple, NEO and many other digital assets with minimal slippage. Mimblewimble – a privacy protocol that aims to make cryptocurrency transactions anonymous – is expected to hit the Litecoin network by the end of 2021. The blockchain was created by Charlie Lee, a software engineer who had worked at Google and crypto exchange Coinbase, and it was launched on the bitcointalk forum in October 2011.

Regardless, our study is a small step to better understanding the determinants of cryptocurrency prices. In Bhambhwani et al. , we challenge the perception that cryptocurrency markets are simply plagued with bubbles and speculative trading by identifying two key blockchain measures that affect cryptocurrency prices. Specifically, theory suggests that the trustworthiness and the transaction benefits of a blockchain are important determinants of cryptocurrency values. Pagnotta and Buraschi link trustworthiness to the computing power devoted to the blockchain. Biais et al. link transaction benefits of a cryptocurrency to the size of its network. Our analysis confirmed that there is an underlying structure of the data, which also persisted when considering a longer time period.

Active Addresses are basically the number of unique addresses that were active in the network either as a sender or receiver. Only addresses that were active in successful transactions are counted. A drop in the active address count on a network isn’t really a good sign, however considering the crypto market’s current bear run – it is something that isn’t too much of a surprise either. In other words, if the price of one ETH tends to go below $1800, your portfolio will initiate an auto-sell sequence selling all the ETHs. So what this means is you’re risking a net loss of $2000 for a profit of $6000. The methodology proposed can be used as a way to map the main trends of the market by integrating different partitional clustering techniques. A similar example in the literature is the work by Soleymani and Vasighi, which groups stocks using enhanced K-means and computes value-at-risk measures to find the most and least riskiest groups of stocks. This is not surprising, as beta is computed using the mean return and volatility, which are the variables considered for clustering. Consequently, clustering intersections are very good for characterizing cryptocurrencies owing to their higher granularity, and their tendency to display more significant associations that are better distributed. In contrast, Cluster 3 is linked to high market cap cryptocurrencies .