Saturday, July 2, 2022
  • Login
Fox Finances
No Result
View All Result
  • Home
  • Business
  • Stocks
  • Investments
  • Commodities
  • Forex
  • Crypto
  • Insurance
  • PF
  • Markets
  • Startups
  • Real Estate
  • Home
  • Business
  • Stocks
  • Investments
  • Commodities
  • Forex
  • Crypto
  • Insurance
  • PF
  • Markets
  • Startups
  • Real Estate
No Result
View All Result
Fox Finances
No Result
View All Result
Home Commodities

Does Crypto Belong in Your Portfolio?

Fox Finances by Fox Finances
September 13, 2021
in Commodities
0
0
SHARES
103
VIEWS
Share on FacebookShare on Twitter


Ethereum – a cryptocurrency with a $400 billion market capitalization that’s second in the space only to Bitcoin* – fell more than 25% from its highs of a week prior at one point last Tuesday, September 7th. Nasdaq futures made new all-time highs the same day.

Correlations to Bitcoin

Technology Stocks Stocks, in General Gold US Dollars
+0.3 +0.2 -0.1 -0.2

Source: Yahoo! Finance (https://finance.yahoo.com/)

Gain exposure to popular markets with standardized tick values and expiration dates on the Small Exchange. See why the smalls are making a big splash. >>

It’s become clear that attempting to understand the crypto market by comparing it to popular existing indexes is as lazy as describing an athlete’s talent or musician’s sound in terms of another athlete or musician. It doesn’t get to the root.

How > What

Traders might want to start with movement, and appreciating how cryptocurrencies move might be more helpful than why they move. Asking why in trading can often be moot no matter the market given that it’s probably moved by the time you asked.

Source: Yahoo! Finance (https://finance.yahoo.com/) and STIX Index Data dxFeed Index Services (https://indexit.dxfeed.com)

This year alone, Bitcoin has both doubled and halved its value. Pit that kind of volatility against one of its most highly correlated stock sectors in technology and it isn’t even a fight. Not to mention that BTC is moving almost five times as much as STIX on a daily basis (see stats below).

Walk Before You Run

While this excitement has no doubt brought more participants to markets, which can be viewed as a very positive development for other financially active individuals, there is one potentially rough side to all of this:

Many entrants into markets are learning how to invest and trade using the most volatile asset class established in decades.

Of course, you have to cut your teeth somewhere but doing so with a product that has the potential to move thousands of dollars in a flash might not be the best way to kick off a long portfolio life. It’s seldom advisable to try anything new with its most chaotic version (examples include: swimming in deep end, hiking in Himalayas, option trading in naked short VIX calls).

Daily Move in % and $ (in 2021)

Micro Bitcoin
Futures
Small Crude Oil
Futures
Small Technology
Futures
Small US Dollar
Futures
+/-5.3%
+/-$225
+/-2.1%
+/-$135
+/-1.2%
+/-$80
+/-0.3%
+/-$40

Source: Yahoo! Finance (https://finance.yahoo.com/) and dxFeed Index Services (https://indexit.dxfeed.com)

It’s hard to put cryptocurrencies in a box. They move like nothing else currently in the market, and they don’t seem to be going away anytime soon. But until everyday traders get a smaller, more accessible product, they might want to put that box on the shelf.

 

*Ethereum data from coinmarketcap.com as of 9/9/21

—
To learn more about how the Small Exchange is merging the efficiency of futures with the clarity of stocks, make sure to subscribe to their YouTube channel and follow them on Twitter so you never miss an update.

© 2021 Small Exchange, Inc. All rights reserved. Small Exchange, Inc. is a Designated Contract Market registered with the U.S. Commodity Futures Trading Commission. The information in this advertisement is current as of the date noted, is for informational purposes only, and does not contend to address the financial objectives, situation, or specific needs of any individual investor. Trading futures involves the risk of loss, including the possibility of loss greater than your initial investment.

New call-to-action





Source link

Tags: BelongCryptoPortfolio
Previous Post

Cybersecurity Consulting In APAC – A Push Towards New Pricing And Delivery Models

Next Post

UTMA & UGMA: Understanding Uniform Transfers & Gifts to Minors

Next Post

UTMA & UGMA: Understanding Uniform Transfers & Gifts to Minors

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest

The UN Just Put Up A Giant Statue In New York That Resembles A “Beast” Described In The Book Of Revelation – Investment Watch

December 9, 2021

Homeowners Insurance for First-Time Buyers

June 27, 2022

China coronavirus – Shanghai reports Covid-19 case outside quarantine area

May 28, 2022

Is the City-State Ready to Become Asia’s Next Crypto Hub?

June 25, 2022

U.S. IPO Weekly Recap: Just One Small IPO As Ivanhoe Electric Delays Pricing

June 25, 2022

The Top 3 Ways Retirees Want to Be Remembered

June 20, 2022

Educational material for commodities

May 28, 2022

Am I Cruel to Make My Husband Work if We Don’t Need the Money?

March 6, 2022

In Putin’s evil vs. good war against Ukraine, the forces of good prevailed at NATO this week

July 2, 2022

Longboat Energy, OMV complete exploration farm-in agreement offshore Norway

July 2, 2022

New baby (due in 3 weeks), 529 or IRA or something else? : personalfinance

July 2, 2022

Macron Tells Biden to Rethink Energy Plans – Investment Watch

July 2, 2022

Shahid Khan Joins CAPEX.com as Relationship Manager

July 2, 2022

Bitcoin will see ‘long bear market’ says trader with BTC price stuck at $19K

July 2, 2022

Celsius’ Unsuccessful Attempt to Stabilize Liquidity

July 2, 2022

How to Use Home Equity to Buy Rentals

July 2, 2022

Ads

Fox Finances

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business and Finance
  • Commodities
  • Cryptocurrency
  • Forex
  • Insurance
  • Investments
  • Market Research
  • Personal Finance
  • Real Estate
  • Startups
  • Stock Market

RECENT UPDATES

  • In Putin’s evil vs. good war against Ukraine, the forces of good prevailed at NATO this week
  • Longboat Energy, OMV complete exploration farm-in agreement offshore Norway
  • New baby (due in 3 weeks), 529 or IRA or something else? : personalfinance
  • Home
  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2021 Fox Finances.

No Result
View All Result
  • Home
  • Business
  • Stocks
  • Investments
  • Commodities
  • Forex
  • Crypto
  • Insurance
  • PF
  • Markets
  • Startups
  • Real Estate

Copyright © 2021 Fox Finances.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In