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Cryptocurrency Market Growth, Analysis

Crypto Market Users and Volume


The graph below shows the total number of blockchain wallet users worldwide, from Q1 2015 to Q4 2018. The number of registered cryptocurrency wallets has been growing ever since Bitcoin was created in 2009. By the end of 2018, it has reached almost 32 million.


On the following graph, you can see Bitcoin’s market capitalization (Q1 2012 - Q4 2018). This index is obtained by multiplying the total number of bitcoins in the circulation by the BTC price. The overall capitalization has grown from 0.04 billion USD in Q1 2012 up to 237.62 billion USD in Q4 2017. It has decreased down to 66.18 billion USD by the end of Q4 2018.





Bitcoin Trading Volume by Country


The analysis of the 46 country datasets presented at Local Bitcoins shows that Bitcoin trading is pretty concentrated within 5 countries. USA, Russia, UK, Venezuela, and China account for 72% of all trades that take place on the platform. This points to uneven BTC adoption across different regions.

In this analysis, we only review the data extracted from Local Bitcoins with its overall trading volume of 6.3 billion USD. This amount is just a small fraction of the global trading volume, but it’s enough to make correct conclusions about Bitcoin adoption.



Bitcoin Trading Share by Continent


The analysis of Bitcoin trading share by continent reveals that the most active region is Asia with more than 2 billion USD invested in Bitcoin in total. China and Chinese investors make up around 620 million USD of that sum.



Bitcoin Trading Volume in the US


The United States head the list of all countries by the overall Bitcoin trading volumes. In January, the US alone has invested 1.44 billion USD into Bitcoin 2019 which makes up a 22% share of the total BTC trading volume.



Bitcoin Trading Volume in Russia


Although trading Bitcoin is not officially permitted in Russia, this country takes the 2nd line by the overall trading volume. The statistics shows that Russian cryptocurrency investors have invested over 1 billion USD into cryptocurrencies and make up 16% of the total Bitcoin trading volumes.

Bitcoin Trading Volume in the United Kingdom


The United Kingdom goes the 3rd in line with over 738 million USD invested in BTC and makes up one of the biggest markets. Its overall share of BTC trading volumes makes up 11% of the total sum. Also, the UK is home to the biggest number of legally registered cryptocurrency exchange markets.



Bitcoin Trading Volume in China


As it’s already been mentioned above, over 2 billion USD has been invested in Bitcoin in Asia alone with China contributing around 620 million USD. China makes up around 10% of the overall BTC trading volume worldwide.



Trading vs HODLing

Typically, there are two things that cryptocurrency investors do their assets. They either hold (HODL) them for a long period of time waiting for them to grow in price, or they trade cryptocurrency trying to make profits on the short run.


For the new buys in cryptocurrencies, the general advice is to HODL their assets. This is an intentional misspelling which implies and implies holding your coins through ups and downs of the crypto market. Below, we are going to review pros and cons for both of strategies.


Advantages of HODLing


The main advantage of this strategy is its simplicity. All you have to do is to buy cryptocurrency, withdraw it to your wallet and sit still until its price increases. You have to be patient, though. You may live through numerous sleepless nights before you see your crypto portfolio grow in price, but it will surely pay off and make you feel like a god. Also, if cryptocurrencies are a subject to taxation in your region, this strategy will help you reduce the amount of taxes that you have to pay as you don't cash out your cryptos.


Disadvantages of HODLing


The main disadvantage associated with this strategy is related to emotions. New investors are typically attracted by cryptocurrencies when the market is at its peak and the prices are at the highest level. The downtrend always follows alter the highest peak and investors have to wait for a terribly long period time until their assets’ prices grow back again. This may be very difficult from the psychological point of view, especially for the newbies.


Advantages of Trading


The cryptocurrency market is pretty volatile in comparison with Forex and other traditional stock markets. While a 2% gain is a whole event on Forex and a daily course of action on stock markets, in cryptos it may be a question of 5 minutes time frame.


Disadvantages of Trading


Unless you're a professional trader who knows how to read candlestick graphs and all the possible signals to look out for, or unless you're simply lucky, most likely you will simply lose money. The cryptocurrency market is made up of manipulations which are designed to mislead newbies.


Summing Up


If you are a total newbie in cryptocurrencies, you should be extremely cautious when entering this unpredictable market. Select your strategy and keep up with it no matter what's going on with the market at the moment by putting out all emotions.

Here's what you should keep in mind when selecting whether you want to hold or trade:

●  HODLing is relatively simple, but requires a solid state of mind. Define your strategy and don't give in to your emotions through all ups and downs of the market.

●  Trading is more complex and requires more luck than knowledge from the newbies. If you're lucky enough you have some chances to significantly increase your profits. Otherwise get ready to lose most of your investments.

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