Best Crypto Pairs to trade. Table of Contents
Three Popular Cryptocurrency Pairs in 2020
During the 2020 COVID-19 pandemic around the world, the popularity of cryptocurrency trading is rekindling among traders.
At the beginning of 2020, the prices of major cryptocurrencies fell due to the settlement of positions to secure funds for investors, but cryptocurrencies are traditional assets such as stocks and bonds, commodities and real estate investment.
It has been supported as a target of investment diversification because it is said to have a low correlation with alternative assets.
The corona wreck has highlighted the shortcomings of the inefficient fiat system, which once again draws attention to its usefulness.
In the case of fiat currencies, as a quantitative easing policy, the central bank continued to increase the supply of money in the market, but this policy caused the currency value to decline.
Cryptocurrencies, on the other hand, are not under the control of the central government and have their own ecosystem, so price fluctuation factors are different from traditional fiat currencies.
Cryptocurrency prices fluctuate significantly due to sentimental factors such as news of epidemics, geopolitical risks, the US presidential election, stock market volatility and emergency economic measures taken by governments.
In recent years, central banks in each country have been discussing the issuance of blockchain-based digital euros and US dollars as a priority, which has been a tailwind for price increases.
In 2020, some currencies performed very well in the bull market of cryptocurrencies.
Below are three of the most notable currency pairs.
This time, we will describe the background of the price increase and consideration.
1. Bitcoin / US Dollar (BTC / USD) pair
Bitcoin experienced a crash in March 2020, but the price rose 60% in 2020 with a surge of over 180%, boosted by the ongoing depreciation of the US dollar.
With this rise, the Bitcoin market has made a far stronger breakthrough than traditional investment targets such as stocks and gold.
Bitcoin broke above $ 10,000 in mid-July and then hit a high of $ 12,000 twice.
Top analysts predict a new high of $ 100,000 for the currency pair by 2021.
Bitcoin’s highs were primarily affected by the depreciation of the US dollar.
With millions of Americans receiving government financial support and the global market slowly reopening, the U.S. government is about to launch a stimulus package, including a second cash benefit, and the dollar loses its authority.
Another reason Bitcoin’s popularity has reignited is the changing direction of the industry towards cryptocurrencies.
Large financial services companies such as JP Morgan, Goldman Sachs, PayPal, and personal money transfer apps have not previously accepted cryptocurrencies as investment assets.
However, it is currently assessing the potential of Bitcoin and is interested in adding it as a trading asset to its financial trading platform.
Bitcoin, which has no value backing like fiat currency, is expected to improve its reliability on its platform.
And, in the stock market where prices are volatile in the future, it is thought that it will further strengthen its position as an investment target for alternative assets in the stock market on Wall Street.
2. Ethereum / USD (ETH / USD) pair
Ethereum currency pairs have risen by nearly 130% in value over the past year, according to data released by crypto market data firm Messari on July 20, 2020.
Over 70% of Ethereum-based token prices have risen against the backdrop of growing economic uncertainty around the world.
The trading price of ETH / USD on March 19, 2020 was $ 120, but on August 25, 2020, it moved by 4.37% in one day and rose to $ 403.
There are several factors behind the bullish trend of the ETH / USD pair, most notably the upcoming update to ETH 2.0 and a keen interest in a platform called Decentralized Finance (DeFi).
Until now, confirmation of transactions executed on the blockchain has been done by mining work, but this work is more advantageous as the processing speed of the computer is faster, so it required a lot of power consumption, so the capital power A company has entered the market one after another.
However, after the transition to ETH 2.0, the method will be changed to PoS (Proof of Stake), which reduces power consumption and makes it easier for individuals to participate, so oligopoly by the company will not occur.
The excavation of the DeFi market played a major role in the growth of Ethereum.
DeFi aims to utilize blockchain technology to provide new financial services that do not require mediation by financial institutions, etc., which will quadruple the market capitalization of Ethereum tokens at the end of July 2020, 37.5.
The growing DeFi market is expected to boost the price of the ETH / USD pair in 2020 with the effect of the transition to ETH2.0.
3. Ripple / USD (XRP / USD)
The transaction price of XRP was $ 0.143 on March 19, 2020.
After that, on August 25, 2020, it was traded at $ 0.288 as the world’s third-largest cryptocurrency by market capitalization.
The value of XRP has more than doubled.
The transaction price of XRP changed significantly in mid-July 2020.
While the weaker US dollar and rising Bitcoin prices have also contributed to the rise in Ripple’s prices, it is the simplified international money transfer process that has boosted Ripple’s popularity.
Against the backdrop of increasing demand for contactless payments, Ripple is expected to see long-term price increases due to its ability to process international remittances at low cost and very fast payment speeds.
The number of wallets holding 1 to 10 million XRP tokens has skyrocketed since July 18, 2020, according to data from Nyrammetrics, a provider of financial and investment-related information.
Unlike Bitcoin, Ripple is popular for international money transfers in partnership with the world’s major financial institutions.
If the global financial system begins investing in cryptocurrencies after a pandemic, Ripple-like systems, which have already gained the trust of many banks for their solid and reliable technology, will become the mainstream investment target.
The cryptocurrency market is very popular and highly volatile in the uncertain economic situation, making it a very attractive investment target.
On the other hand, it is a very unstable investment target because it is greatly influenced by sentimental factors.
To ensure that you don’t miss a trading opportunity, traders are encouraged to be aware of world affairs, news and updates released by their currencies, as well as proper risk management when investing in cryptocurrencies.
Comment by jetonwhy
February 16, 2025
Anyone else finding it weird that Deriv only allows deposits through Jeton and not bank transfers? They’ve removed crypto too, so now it’s just cards and Jeton. Kinda frustratin...