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It’s High Time Cryptocurrency Investors Start Thinking Long Term

Cryptocurrency traders and investors often experience two types of heartbreaking feelings at different periods in their trading journeys. The first heartbreaking feeling comes from ignoring a cryptocurrency in its pre-ICO or ICO days when it was selling quite cheap. You might end up angry with yourself when the cryptocurrency eventually takes off and you missed the boat. The second heartbreaking feeling comes when you join the crowd to exit your position in a coin during a selloff, only for the coin to rally back to previous highs a couple of days or weeks later.

Earlier this year, cryptocurrencies suffered a massive selloff in response to a tightening regulatory environment. China, South Korea, and the U.S. (among others) have been cracking down on ICOs and cryptocurrency exchanges. The selloff was so bad that Bitcoin crashed more than 70% and more than $550 billion was wiped off the total market cap of the general cryptocurrency market.

In the last week, the cryptocurrency industry has started showing signs of a steady recovery. Bitcoin has moved up to trading close to $11,000 and Ethereum is almost back to $1000. However, as the cryptocurrency industry returns to bullish ways, some coins will fare better than others at a consistent pace over the long term. This piece examines three reasons people trading the NEO coin can expect to see a consistent recovery in the short to medium terms.

NEO is a credible contender to Ethereum

The first reason NEO is poised to be a winner in the long-term cryptocurrency play is that it is a credible competitor to Ethereum. Ethereum has perhaps better prospects of long-term survival and mass market appeal than Bitcoin because there’s more to Ethereum than its cryptocurrency. Ethereum is a platform for creating smart contracts and building decentralized apps. Other companies that want to build their own blockchain products leverage the Ethereum blockchain and they create their ICOs on Ethereum’s platform.

NEO is fundamentally like Ethereum in that it people can use it to create smart contracts and businesses can build their decentralized apps (DApps) on its platform. NEO’s edge over Ethereum stems from the fact that NEO has a barrier to entry for companies that intend to launch an ICO on its platform. While Ethereum’s open-door policy makes it a breeding ground for potential “shitcoins”, very few scammers will go the long route of launching a fraudulent ICO on NEO.

Better relationship with Chinese regulatory systems

Two of the most recent market crashes that the cryptocurrency industry suffered had their origins in China. When cryptocurrency sneezes in China, the rest of the market catches a cold. NEO has decent odds of long-term survival because it has its origins in China and it is the poster boy for Chinese authorities clamoring for a regulation of cryptocurrencies.

In an interview earlier this year, Da Hongfei, founder of NEO revealed his pro-regulation stance despite the general anti-regulation sentiment among cryptocurrency enthusiasts. He noted that the “market has been very hot, very crazy for past year… I think it’s time for regulators to step in”. The fact that NEO is technically at peace with regulators eliminates much of the regulatory risks facing cryptocurrencies.

Enterprise-friendly programing language

A blockchain project is only as good as the developers it can attract because the developers building apps, Wallets, and other services on the blockchain often form the nucleus of its community. NEO is designed to attract developers by allowing them to use popular programming languages such as Java and C# to write their apps. In contrast, developers must first learn Solidity before they can create or build apps for Ethereum.

Businesses that intend to embrace blockchain technology will also find it easier to ride on NEO’s network because they can easily code smart contracts in the existing programming languages. In the words of Brian Evans, angel trader, adviser, and blockchain evangelist, “the big move for NEO is creating an entire smart economy. It has incorporated digital assets, smart contracts, and a digital identity that can be used for real-world applications and become integrated into the real economy.”

The post It’s High Time Cryptocurrency Investors Start Thinking Long Term appeared first on Bitcoin Network, News, Charts, Guides & Analysis.

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Bitcoin Price Watch: Is the Recent Drop Part of a Bigger Picture?

At press time, bitcoin is retaining its $6,100 price from yesterday. The currency fell to this position from $6,700 after Japan’s Financial Services Agency (FSA) sent notifications to more than five digital currency exchanges saying that they must heighten their security measures against money laundering after noticing weaknesses in their infrastructures. Bitcoin has continued to suffer drops over the past week. Its initial slump to $6,700 occurred after hovering at the $7,600 mark for some time, and now the price is just $100 away from its February low. While bitcoin did drop below $6,000 during yesterday’s evening hours, things didn’t last, and the coin quickly pushed itself back up to $6,100, where it has been ever since. Bitcoin has allegedly lost over 70 percent of its value since December, when it managed to strike near the $20,000 range. However, many analysts are unconcerned about the currency’s recent behavior, saying it’s all part of a downward trend that was predicted long ago. Digital currency investor Marius Rupsys, for example, has consistently mentioned this idea, stating that while bitcoin pushes steadily lower, the question remains regarding when “big investors will come back.” “Retail traders might be actively buying and selling, but their volumes aren’t sufficient to move the market significantly to either side,” he comments. “’Wait and see’ is for larger investors, who try to get into crypto assets using OTC.” He added: “The volume is going down consistently on all major exchanges (i.e. Bitfinex), so this sell pressure is reducing as less and less people are willing to sell. I am waiting for volume to pick up, which is likely to push the price upwards given sellers sold and new investors want to get in, though it is very difficult to know when that will happen. Therefore, my position is to wait for price action with volume.” Other analysts, however, aren’t so sure, and predict a case of the old gloom-and-doom for bitcoin should the currency fall any lower. Publisher of the newsletter Crypto Patterns Jon Pearlstone, for example, states: “If bitcoin breaks the 2018 lows, watch for a spike in volume and a possible fast drop in price towards the $5,000 level.” Bitcoin is not alone in its demise. The currency is joined by entities like Litecoin – which has struck its lowest point in roughly seven months – and ether, which is currently trading at $479 – about 60 percent lower than its all-time high last December. Overall, the cryptocurrency market has crashed, falling to about $259 billion at press time from $813 billion (almost $1 trillion) last year. Figures like Phillip Nunn – CEO of the Manchester-based financial firm Blackmore Group – are sticking to their guns that bitcoin will reach new heights by the end of the year. Nunn is certain that bitcoin will strike $60,000 by the time 2018 closes, and despite the massive drops, we can’t help but consider bitcoin’s behavior last year, when it rose from $5,000 to nearly $20,000 in just one month between November and December. Could the currency do something extraordinary like that again before things tumble further? Nothing’s impossible, we suppose…. Bitcoin Charts by TradingView

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