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Plus500: Crypto Market Returning to “Normal” Conditions

Plus500

In 2017, Bitcoin started the year from less than $1,000 but reached almost $20,000 by mid-December. And amid the craze, many participated in the crypto market even if they didn’t fully understand the risks or how volatile cryptocurrencies could get. By the start of this year, Bitcoin’s price crashed to the point wherein it was only trading at around $6,000 at one point.

Regulatory changes brought about bearish trends for the entire crypto market. And because of this, many even thought that it was the start of the end for cryptocurrencies. However, there are also those who remain optimistic even thinking that some cryptocurrencies will be priced much higher by the end of 2018.

However, you will have to take a closer look before you start to invest hoping for a quick buck. If you are planning to enter the market hoping for another unprecedented bullish run, perhaps, you want to consider what online trading platform Plus500 has to say. According to the company, interest in the crypto market has already subsided and returned to “normal” conditions. This only means that if you are hoping to generate a large revenue from buying and selling coins, don’t get your hopes too high.

Quadrupled Revenues

Plus500 managed to grow their revenue by up to four times to $297.3 million during the first three months of 2018. It was also double the best quarter from last year. It is also worth mentioning that their membership grew by up to three times to 218,187 active members.

The platform offers contracts that enable people to bet on the direction of a particular digital asset’s price, better known as contracts for difference or CFDs.

Plus500 mentioned that it had a strong start for the year mainly because of the volatility of the market, not to mention the high-level of interest in CFDs. They mentioned that “We have since seen market conditions return to more normal levels in the last two months. As such we do not expect such an exceptional performance to be repeated in the remainder of the year”.

CFD as High-Risk Investment?

If you will ask European and UK financial watchdogs, they consider CFDs as high-risk products for investors. Investors could easily rack up debts.  According to Plus500, they are already aware of the new rules that “enhance the CFD trading landscape and create a more level playing field”.

They added that “having flexible business model and a lean cost structure, enables us to optimize our performance as necessary despite the recently announced regulatory changes. Having the industry-leading framework enables us to be confident about the future”.

With CFDs, investors can speculate both the rise and the fall of a particular cryptocurrency’s price. They are offered usually with leverage. This means that investors will only have to put down a portion of the total investment.

A Clampdown by Google and Twitter

Apart from the regulatory changes applied to the cryptocurrency market, one of the most probable reasons why interest in cryptocurrencies has subsided is due to the fact that online platforms have started to clampdown on crypto ads. Both Google and Twitter have already started with their stricter rules regarding crypto advertisers.

 

Mark Ayesa

Mark manages our editorial team, social handles and is always on the lookout for great writing talent to contribute to our site. On a day-to-day basis he ensures the content on CryptoCurrency365.com is of the highest quality and also carries out extensive research on any current hot topics of the crypocurrency world for our writers.

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