Recent months since the invasion of Ukraine by Russia can be termed to have been volatile times for the crypto world. The good news is that cryptocurrencies have held firm despite the shaky waves.
Nevertheless, since Feb 24, the global crypto market cap has climbed 12 percent, from $1.64 trillion to $1.83 trillion, compared to the US S and; P 500, which has increased 7 percent in the same span. Despite notions of using cryptocurrencies as a protected property like gold, or “virtual gold,” these digital coins are positively associated with the stock markets. Spread betting has also come out as a profitable avenue for traders who don’t want to be involved in buying and selling assets actively.
Crypto Assets back to the Green
According to CoinMarketCap, the entire volume in Defi is 15% vs. 83 percent in cryptocurrencies from the latest 24-hour volume in the total cryptocurrency world, indicating that vulnerability is currently prevalent in crypto trading.
Such movements take the crypto assets back to the green despite the market’s volatility. Therefore, understanding the options available to you to speculate on such markets, whether you are trading stocks, forex, or indices, is an important step towards profitable trading. The London news time recently reported a significant boom in the sector, with bitcoin jumping to $ 42,300 and Ethereum surpassing the $ 3,000 mark due to the sudden surge in the crypto world.
This brings back the spread betting aspect as it’s the only platform where you, as the trader is, given a place your bet concerning the crypto market moves. You stand to gain or lose the bet amounts regarding whether the markets move towards or against your prediction.
Contract Trading Vs. Spread Betting
It’s also important for a trader to understand the difference between contract trading and spread betting. In Contract trading, the deal is dependent on the underlying stock’s price. A trader can enter a Contract for Difference with their broker instead of buying tangible assets such as currencies or company shares from their broker or placing a bet on the market. The purpose of the contract is to swap the discrepancy in the price of an asset between the value when a contract is being opened and the price when it is closed.
Such trading options provide the crypto markets a profound resilience leading to them being considered the unshakable future of the financial world. Crypto moguls such as Elon Musk, the CEO of a well known electric vehicle Tesla and MicroStrategy boss Michael Saylor agree that crypto is the rarest virtual asset that can withstand almost all market waves, including inflation or unforeseen economic circumstances.
Cryptocurrency and the Russia-Ukraine Conflict
The Russia-Ukraine conflict has significantly disrupted physical trading within the European region. It’s fulfilling to be a trader knowing that the conflict has not negatively impacted crypto markets as previously anticipated. In fact, various factors are drawn from the conflict support and help maintain the vibrancy of these digital coins.
To begin with, Russia and Ukrainian are using the decentralizing characteristics of crypto trades to protect their losses in the fiat markets. Since the commencement of the war, the amount of transactions in Ukrainian UAH and the Russian Rouble has risen dramatically. During the conflict, Ukraine has received cryptocurrency donations from foreign nations. As a result of the influx of cryptocurrency donations into Ukraine, President Volodymyr Zelenskyy signed a measure to legalize the sector, a significant boost for crypto traders in the country.
While expressing its concern about illicit financing, financial regulation, and economic security risks, the US agency has issued an executive order supporting the adoption of crypto assets. The order states to support Technological Advances and Ensure Responsible Development and Use of Digital Assets. Essentially the executive order was a favorable measure to digital assets.
Popularity of cryptocurrencies will undoubtedly be more solid, with more growth expected in the near future. If you have thoughts about the crypto world, the time is now to get started. You can even start with the stamp duty-free spread betting as you warm up to the actual trade.