We're delighted to announce the launch of our Cryptocurrency Bubble-O-Meter – a brand-new analysis tool which allows you to compare the value of all existing cryptocurrencies and tokens through adjusting their prices by supply and volume relative to Bitcoin. This can help you with the analysis for the underlying assets of our cryptocurrency CFD offering.
Is a particular cryptocurrency 'too cheap' or 'too expensive', 'overpriced' or 'underpriced'? Does a cryptocurrency from the top 10 still have an upside?
Our new Bubble-O-Meter can help you find answers to these questions yourself, without having to learn rocket science beforehand!
Source: Admiral Markets' Cryptocurrency Bubble-O-Meter
Are We Experiencing a Cryptocurrency Bubble?
The vast majority of cryptocurrency traders entered the market in the second half of 2017, when established projects – such as Bitcoin and Ethereum – already looked "expensive". At the same time, there are thousands of "cheaper" coins with what seem to be more appealing prices.
Inexperienced traders – who sometimes lack any economic literacy or knowledge of blockchain technology – and are driven purely by the desire to "get-rich-quick" are massively falling into the price-trap and buying whatever looks "cheap", besides major coins. This has resulted in cryptocurrency markets being highly overbought, because of which, hundreds of altcoins and tokens recently skyrocketed. A deep correction inevitably followed such a frenzy.
Our Bubble-O-Meter attempts to highlight the fact that some coins – including those in the top 10 by market-capitalisation – are still overpriced relative to Bitcoin by such a large magnitude that the speculative part of Bitcoin's price, whatever that may be, can be relatively insignificant.
Give our Bubble-O-Meter a try and see what you find out about today's cryptocurrency market.
Can I Trade Cryptocurrencies With Admiral Markets?
Yes! Admiral Markets currently offers CFDs on eight cryptocurrencies: Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, Dash, Monero and Zcash.
What's particularly great in trading our derivative contracts (CFDs) – instead of their underlying cryptocurrencies – is that you can can trade on leverage up to 1:5 and go short on any instrument. What's also important is that there is no risk of permanently losing all funds due to human error or hacking, which can happen when investing in cryptos.
Try trading cryptocurrency CFDs today on MetaTrader 5, and supercharge your trading platform even further by downloading our MetaTrader Supreme Edition plugin – a unique package of over 60 tools and indicators – for free!