Since January, when the global quarantine on the new type of coronavirus known as COVID 19 began, the safe haven assets have been tied up with interesting volatilities, where the rule of thumb, risk and term as well as potential expected returns have added to the CFD investment environment and – of course – cryptomonies have not been located in a foreign corner of this CFD trading reality.
The US dollar, gold, stock trading, US Treasury bonds, sovereign bonds and other investment vehicles were among the portfolios recommended by economists and asset management firms.
Digital currencies were, of course, the battery of suggestions from economists, banks, funds and financial asset management firms, both real and virtual.
And these potential investments included digital currencies such as the Bitcoin CFD, Ethereum or even Ripple.
After the first epicenter in January in China, more precisely in Wuhan, the second epicenter in the United States came in February. Then in Spain and Italy -March, April- and finally the fourth epicenter in Latin America in May and June; six months where the data referring to the main trends of refuge assets enjoyed a scarcity of valid information or -in the worst case scenario- overdimensioning.
CFDs in Crypto Currencies
Except for the case of CFDs in crypto-currencies; specifically, and for example, the CFD in Bitcoin where – everything points out according to economists and management firms – the data was located in an area of opportunities and prices of balance or – in certain cases – of technical supports; which provoked interesting observations not only on Bitcoin CFDs, but also on Ethereum and Ripple.
The data. Latin America, according to World Bank data released last week -and from this crisis environment- will decrease by -7.2% in 2020; with perspectives to rebound by 2.8% in 2021.
„However, growth will be slow, in a U-shape for most regional economies,“ say economists and management firms.
The best in 2020
According to economists and asset management firms, there are three essential crypto-currencies for holding positions – diversified and liquid in the world of digital currency mining – and these are Bitcoin , Ethereum and Ripple .
For the moment, the Bitcoin CFD stands within our „gold“ scheme as an alternative to watch, but without ceasing to be cautious, since in view of the recovery – according to Bitcoin CFD trading – of 144% from the March lows, technical resistance prices of around US$ 10,490 are detected. This makes one think that risk and time frame as well as potential returns should be put under scrutiny.
With regard to the CFD on Ripple or XRP, the pressure from central banks to relax their monetary policies in the face of the pandemic will end up decreasing – according to economists and management firms – in purchases for this crypto currency. In other words, the acquisitions could become more dynamic, according to CFD sources in Bitcoin and Ripple between 90% and 110% in digital offices pushed by COVID 19.
Within its US$ 234.45 mark last Friday, the CFD at Bitcoin Code can design more or less attractive options from the liquidity and depth of this ecosystem.
For economists and firms that manage crypto-currency trading, the ETH CFD is a sort of „ferment“ of this trading, and something more liquid than the halving announced last May 12 in Bitcoin CFD.