In my effort to develop a strategy to trade crypto
currencies there is one basic question? Should I deal with Bitcoin only, or
should I include some of the alternate coins. My natural instinct is to deal
only with bitcoins to simplify life and the trades. However, one wouldn't want
to forego some opportunities in the other coins. I looked at this question a
little over a year ago and drew mixed results.
The technique I used was to look at the growth rates over
periods of time of varying lengths. I looked at the top 25 coins by market cap.
I was surprised that there were a few of the coins with better growth rates than
BTC-Bitcoin. Following is a chart with the growth rates of the major coins.
The coin with the highest growth rate for each quarter is
highlighted in green, and those growing faster than BTC are in yellow. An
exception is made for BNB (a propriety coin only available on the Binance
exchange). When it had the highest rate, the second coin is also highlighted.
Note that USDT-Tether isn’t really a coin, it tracks directly to the dollar.
BTC outperformed all the other coins in at least 4 of the 6
periods. A strong indicator that selecting BTC only would not be problematic.
Next I’ll narrow the field coins to simplify the effort. Follow me on Twitter
@billlanke. I’ll tweet when the next post is made.
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