You don’t need to own cryptocurrencies to trade
Find out more about trading on bitcoin with IG.
On Wednesday 7 February, we invited two cryptocurrency experts – Rhian Lewis, co-founder of Count My Crypto, and Colin Platt, founder of ÐPactum – into the IGTV studio for our first #IGCryptoChat. Take a look at the full video below, or read on for a summary of some of the topics covered.
Rhian Lewis: I started trading cryptocurrencies in 2013. I found it difficult to track my balances – as we all know, cryptos are amazingly volatile – so because I’m a software engineer by trade, I coded a portfolio tracker to help me keep track.
After I released that and started talking to people in the community, it became a bug. I launched London Women in Bitcoin, became interested in the blockchain, and now I live, eat and breathe cryptocurrency.
Colin Platt: I used to work on the trading floor of a major European bank, where I heard about bitcoin, saw that the prices weren’t the same in different places and tried to arbitrage it. After making a little and losing a lot, I became really interested in blockchain and distributed ledger technologies.
CP: Can it be both?
Of course, everyone wants to be in at the beginning of the next internet; but nobody wants to be involved in the next big bubble. At the moment it’s hard to say which of those bitcoin is, because it is so hard to price.
RL: I think that you have to understand that with something like bitcoin, there is a scarcity value built into the very code itself. Bitcoin’s intangibility is interesting, because people don’t talk about fiat currencies being intangible and hard to price. But most fiat currencies don’t have the scarcity that bitcoin and other cryptocurrencies have.
RL: I’ll stick to my line from the end of 2017: we could see $50,000, but we could see $4500.
CP: I think it’s almost certain that at some point this year bitcoin will see a price of $100,000. I don’t think it will end the year there – though it might – but looking at bitcoin’s chart from the past few months, the notion that bitcoin could go up ten to 15 times its current price isn’t that weird.
CP: It’s hard to say. My take is that there are a lot of people wanting to invest in bitcoin and other cryptocurrencies, but that it has been structurally very difficult to get involved. I’ve talked to investors who say they’ve been doing everything they can to buy bitcoin, but can’t.
RL: I think the on-ramp has been a huge problem for cryptocurrencies in general, because when we saw this sudden surge in interest last year, most of the exchanges actually closed their waiting lists. Nobody could exchange fiat currency for bitcoin, or bitcoin for other cryptocurrencies. Colin is right, there’s a huge pent-up demand.
Colin and Rhian both gave their opinions on a huge range of cryptocurrencies, from bitcoin’s forks and litecoin, to the newcomers that could start making waves.
Watch the video above to find out which ones they think might take off in 2018, as well as what effect regulation might have, where you should place your stop-loss, whether the blockchain will end up outliving bitcoin, and much more.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.