means more volatility). They’re also high-value targets for hacking. And like Binance, they could elect to block U.S. traders at any time. Still, in the short term, trading volumes will likely climb on these exchanges. But keep in mind, the SEC could turn its attention to any exchange at any time, so volume might not last.
exchanges. Regulated exchanges aren’t the only places to trade cryptos. There are decentralized exchanges (DEXs), as well as dozens of other smaller, unregulated exchanges where Americans can trade. They include Hotbit, Kucoin, and Mercatox. But these smaller exchanges do come with higher risks. They have less liquidity (which
Bitcoin's Total Market Cap vs. All Other Cryptos
BITCOIN WILL BE KING
65%
As more exchanges shut out U.S. buyers, more people will turn to mainstream cryptos like bitcoin. There are several reasons why. First, almost every crypto is available for trading against bitcoin. Bitcoin also isn’t in jeopardy of being removed from exchanges. And bitcoin has been outperforming almost every other crypto. Consider Lisk (LSK) – a smart contract platform. Over the past three months, it’s up 32% in U.S. dollar terms. However, it’s down 52% relative to bitcoin over the same time frame. Other cryptos have suffered the same fate. If you combine the market cap of every crypto listed on
60%
55%
Source: Coinmarketcap.com
50%
Feb
Mar
Apr
May
Jun
Jul
Lisk Price in Dollars and Bitcoin
50%
LSK's return in dollars
25%
0%
-25%
LSK's return in bitcoin
-50%
Source: Coinmarketcap.com
Feb
Mar
Apr
May
Jun
68
August 2019
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