With just a little over a month until Christmas, and few days before the US Thanksgiving holiday, is the alt coin season – a period where traders choose to invest in alternative digital coins – upon us? Three altcoins from the top 50 cryptocurrencies by market capitalisation registered gains that were unheard of in the rest of the market.
Meantime, Bitcoin (BTC) consolidated in a range between $57,000 (£42,424) and $58,000 in London morning trading. The biggest cryptocurrency bounced back and surpassed $60,000 at one point over the last 24 hours, data from CoinMarketCap.com show. But the cryptocurrency was still down 12.79% week-on-week. Similarly, ether (ETH). the second biggest digital token, lost 11.01% in the same period.
Swimming against the current:
Three major coins defied the rest of the market. Elrond (EGLD), crypto.com coin (CRO) and avalanche (AVAX) all reached all-time highs in recent rallies.
- Elrond (EGLD) soared 46.46% in the last seven days. On Friday, Elrond announced a $1.29bn liquidity incentive programme to supercharge the launch of their Maiar DEX decentralised finance (DeFi) platform. “This is perhaps the largest DeFI incentive programme to date, and represents a massive step toward pushing DeFi adoption beyond the current boundaries of the crypto space, into the mainstream,” Elrond Network chief executive Beniamin Mincu wrote in the announcement. Elrond was trading at $477.29 on Monday morning London time, and was the 21st biggest cryptocurrency with a market capitalisation of $9.4bn at the time of writing.
- Crypto.com coin (CRO) added 40.62%. The crypto to which the CRO token is native, rallied on the announcement the cryptocurrency exchange platform bought naming rights for a building complex in Los Angeles, California which includes the Staples Center, home to the Los Angeles Lakes and Clippers of the National Basketball Association, the Los Angeles Kings of the National Hockey League and the Los Angeles Sparks of the National Women's Basketball Association. CRO is currently the 13th biggest virtual currency with a market capitalisation of $18.7bn.
- Avalanche (AVAX) jumped 39%. The coin has been growing steadily since last Tuesday, when its developer, technology firm Ava Labe announced a partnership with ‘Big Four’ accountancy firm Deloitte. AVAX has eventually surpassed dogecoin (DOGE) and shiba inu (SHIB) in total market value and is now the tenth biggest digital coin with $29.6bn market capitalisation.
Chart of the day: “When they go low, we go high”
Other crypto news:
- El Salvador, the first country, where bitcoin is used as legal tender, plans to build the first “bitcoin city”, said President Nayib Bukel during a bitcoin-promoting event Saturday. “Invest here and make all the money you want,” Al Jazeera quoted Bukele saying: “This is a fully ecological city that works and is energised by a volcano.”
Quote of the day:
Sina Kian took to Twitter to share her participation in a group of people in ConstitutionDAO – a movement, in which a group of cryptocurrency enthusiast joined forces in a bid to purchase a rare copy of the US Constitution at a Sotheby's auction last week:
Round-up of coins by market capitalisation
As of 9:30 UTC:
- Bitcoin (BTC) was down 2.31% and trading at $57,633.18
- Ethereum (ETH) slid 3.3% to $4,214.72
- Binance coin (BNB) lost 2.02% and was trading $573.17
Winners and losers
- Litecoin (LTC) was down 20.96% week-on-week
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You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.