Your guide to trading Qtum (QTUM)

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Why is Qtum important to traders?

Developed and maintained by the QTUM Foundation, Qtum is an innovative open-source public blockchain platform, capable of running smart contracts on multiple virtual machines. It is a relatively young entrant into an increasingly crowded field. However, the project has an intelligent approach to problem-solving that should appeal to its target end-users.

Leveraging the security of UTXO, the project is typically viewed as a hybrid of Bitcoin and Ethereum, essentially merging the reliability of Bitcoin’s blockchain with the possibilities of smart contracts and dApps without any single point of failure. Its hybrid makeup has helped it to develop a unique Proof-of-Stake (PoS) consensus protocol while retaining compatibility with blockchain systems.

The platform has its own native cryptocurrency QTUM, that is included in the top forty biggest cryptocurrencies in terms of market capitalisation.

Qtum’s end goal is to utilise and enhance existing blockchain technologies to develop a network for global business applications. To achieve that, the project is committed to implementing tools, templates and other contract options that will make it simpler for enterprises to develop and execute smart contracts. The project promises a straightforward way to embrace blockchain without the risks and complexities that come with BTC and ETH.

Based in Singapore, the project is positioning itself to address the large Asian markets, earning it the nickname ‘Chinese Ethereum’. Qtum is backed by some of the most famous blockchain players, traditional Venture Capitalists, and executives from China’s largest tech companies, such as Tencent, Baidu and Alibaba.

qtum coin

Qtum trading hours

You can trade Qtum CFDs on Capital.com 24/7.

How to invest in Qtum CFDs

An individual has two options when investing in the cryptocurrency market. Firstly, they can buy actual cryptocurrencies, such as purchasing QTUM on an exchange like Bittrex, Bitfinex or Quoine, so they own the QTUM themselves. This is considered a long-term investment, as the individual is waiting for the price to rise significantly, so they can later sell their QTUM coins for a profit.

Alternatively, they can trade a contract for difference (CFD) on a particular cryptocurrency, and speculate on the price difference. A CFD is a type of contract, typically between a broker and an investor, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade.

Investing in QTUM CFDs gives you the opportunity to trade QTUM in both directions. Regardless of having a positive or negative view of the QTUM market forecasts and predictions, you can try to profit from both upward or downward future price movement.

You can either hold a long position, speculating that the QTUM price will rise, or a short position, speculating that the price will fall. This is considered a short-term investment as CFDs are used within shorter timeframes.

For instance, to trade QTUM CFDs, you can speculate on the QTUM/USD or QTUM/BTC pairing.

Trade Quantum to US Dollar - QTUM/USD CFD

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There are pivotal differences between buying a cryptocurrency and trading a CFD in a crypto market. When buying cryptocurrency, it is stored in a wallet, but when trading CFDs, the product is stored in your account, which is regulated by a financial authority. You are more liquid when you purchase CFDs as you are not tied to the asset, you have merely purchased the underlying contract.

Looking for a reliable CFD trading provider to invest in QTUM? If so, just spend 3 minutes of your time to sign up and start your journey of QTUM trading with Capital.com. Try our award-winning trading platform or download our mobile app, which will become your smart CFD trading assistant. 

What is Qtum? What is cryptocurrency?

Headquartered in Singapore, Qtum is a blockchain technology that bridges Ethereum’s smart contracts on top of Bitcoin’s stable blockchain, utilising innovational Proof-of-Stake for verification. The project’s main goal is to increase the range and interoperability of smart contract applications, especially for business and institutional purposes.

QTUM coin is official cryptocurrency of the platform. It serves its function as a fuel to make transactions on Qtum network.

QTUM coin

A cryptocurrency is a digital asset conceived for use as a medium of exchange, which uses cryptography to secure transactions, control the supply of additional units, and corroborate transfers. In short, cryptocurrency is a decentralised electronic currency.

Cryptocurrency is stored in a ‘wallet’, which can take various forms. For instance, QTUM coins can be stored in an online wallet, or alternatively in an offline electronic wallet, and it can even be stored physically in hardware.

Why trade Qtum CFDs with Capital.com

Advanced AI technology at its core: a Facebook-like news feed provides users with personalised and unique content depending on their preferences. If a trader makes decisions based on biases, the innovative news feed offers a range of materials to put her back on the right track. The neural network analyses in-app behaviour and recommends videos, articles, news to help polish your investment strategy. This will help you to refine your approach when trading Qtum crypto.

Trading on margin: providing trading on margin (up to 1:2 for cryptocurrencies) with the help of CFDs, Capital.com gives you access to the cryptocurrency market even with a limited amount of funds in your account.

Trading the difference: when trading a QTUM CFD, you do not buy the underlying asset itself, meaning you are not tied to it. You only speculate on the rise or fall of the QTUM coin price. CFD trading is nothing different from traditional trading in terms of strategies. A CFD investor can go short or long, set stop and limit losses and apply trading scenarios that align with his or her objectives.

All-round trading analysis: the browser-based platform allows traders to shape their own market analysis and forecasts with sleek technical indicators. Capital.com provides live market updates and various chart formats, available on desktop, iOS, and Android.

Focus on safety: Captal.com puts a special emphasis on safety. Licensed by the FCA and CySEC, it complies with all regulations and ensures that its clients’ data security comes first. The company allows to withdraw money 24/7 and keeps traders’ funds across segregated bank accounts.

History of Qtum

Qtum graph

With headquarters in Singapore, both the technology and cryptocurrency of Qtum are being developed by the QTUM Foundation. Initially, Asian markets have been the main focus of the project’s marketing efforts. However, the project’s popularity is currently increasing far beyond China, Korea and Japan.

The company has attracted most of its funding from eleven angel investors, with initial discussions and reviews seeing it raise over $1 million. With those funds, the project’s founders created the testnet and started early implementation.

Following positive news announcements from its early success, in March 2017, Qtum launched its Initial Coin Offering (ICO) in order to crowdfund the further development of its new blockchain-based platform. As a result, QTUM ICO ended up the fourth highest in the cryptocurrency industry of that time.

It sold over $10 million worth of it’s tokens just 90 minutes after launching. In five days, Qtum raised a total amount of approximately 11,100 BTC and 77,000 ETH, which totalled around $15.7 million in value, in exchange for 51 million Qtum tokens being distributed to the public. Another 29 million tokens were allocated to community initiatives concerning business development, research, education, and market expansion. The remaining 20 million was withheld by the founders, early backers, and development team.

In regard to QTUM price history, just like many other altcoins it has experienced an epic price uptick followed by a dramatic fall.

When Qtum’s main net went live on September 13, 2017, QTUM closed at $11.94. Throughout October and November, the price remained in the range of $10 – $20. By the middle of December, it had started to grow in value. On December 15, the price of QTUM went above $30 mark for the first time.

After its appearance at famous BlockShow, QTUM was also featured on the popular crypto-news site Cointelegraph. Its price had gone up by over $20 within one day of the article being published on December 17. More mainstream media channels, like Forbes, picked up the trend, commenting on the rapid increase of QTUM’s value. By January 7, 2018, one QTUM was worth $99.87.

After hitting its record high, Qtum cryptocurrency experienced a crash, with its price dropping as low as $1.47 on September 24, 2019. At the end of 2019, QTUM traded in the range of $1.55 – $2.30.

FAQ

Before buying Qtum, you will need a place to store it. This is what a wallet is for, and it consists of two elements: a private key and a public address. A wallet requires a private key, specific to the individual, that enables access to the Qtum address stored in the wallet, which is also the public key. The wallet is what enables Qtum, or any cryptocurrency, to be a secure medium of exchange. Essentially, people can send Qtum, to certain wallets using the public key, which only the individual can access with their private key. Some individuals choose to keep their coins in their wallet provided by their cryptocurrency exchange, due to the fact that a lot of exchanges have mobile apps that allow people to easily buy, sell and spend cryptocurrencies.

Cryptocurrency exchanges or online wallets are far from immune to the dangers of cybertheft. The infamous case of the Mt Gox bitcoin exchange highlights this. Historically, Mt Gox was the largest global exchange for bitcoin, until it declared bankruptcy in 2014 after its security had been compromised. Mt Gox had 850,000 bitcoins, valued at $450 million in February 2014, before their exchange was emptied by hackers. It is believed that the private keys of Mt Gox’s digital wallet were stolen from as earlier as 2011. These risks are avoided when trading Qtum CFDs because you do not need a wallet.

A ‘bubble’, in market terminology, is where the price of an asset far exceeds its intrinsic value. For instance, the dot-com bubble that occurred between 1995 and 2001, is a prime example, where information technology industry firms saw their stocks rise, merely because of the market sentiment around that particular industry, irrespective of their profits or chances of succeeding. This market then crashed in March 2000.

The problem here is that it is hard to determine the value of the cryptocurrency to begin with. Although a lot of investors are holding cryptocurrencies as if they were equities, they are not. Yet, they do not particularly act like currencies either, which makes comparisons to currency valuations difficult.  However, with any new technology, caution is advised. It could well be the case that the valuations of Bitcoin or Qtum are not overvalued, and that the bubble, if there is one, is represented by the various new cryptocurrencies that are being driven by market sentiment. Arguably, this is comparable to the dot-com instance, where stocks like Amazon were not overvalued, but others (like Pets.com, which went from IPO to liquidation in 268 days) clearly were. So, it seems that only time will tell whether the market is overheating, but in either case, there are options to trade using CFDs to take both long and short positions.

From late 2017 to early 2018, there was a surge in the price of Bitcoin (reaching $20,000 per Bitcoin), followed shortly behind by other cryptocurrencies. The market then crashed between January and February 2018, and Bitcoin fell free, dropping 65% in value. Consequently, most other cryptocurrencies crashed as well. So, there clearly was a bubble in the crypto market. The question that this implies is whether there is another one on the verge. The value in most cryptocurrencies is derived from their potential; how they could be used to advance society in the future. Without institutional acceptance however, the potential value, will remain merely potential, but whether this implies that cryptocurrencies are overvalued is another question.

The 2018 crypto crash was the biggest sell-off of most cryptocurrencies in the history of the market. From 6 January to 6 February bitcoin fell about 65%. Consequently, nearly all other cryptocurrencies crashed. The cryptocurrency market capitalisation lost at least $342 billion in the first quarter of 2018. Bitcoin peaked at the $20,000 mark December 2017, with most other cryptocurrency peaking shortly after. There were several shocks let ultimately contributed to the cryptocrash: bitcoin price depreciated by about 12% after the Attorney General for the South Korea announced a move to ban crypto exchanges from issuing new trading accounts, later that month Coincheck (a Japanese bitcoin wallet and exchange service) was hacked and approximately 500 million NEM tokens (worth $530 million) were stolen, making this the largest crypto hack to have occurred.


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