|

Fed money printing fuels Crypto boom — Just as Crypto gets easier to buy

Thanks to coronavirus lockdowns, the U.S. economy is contracting faster than at any time since the Great Depression of the 1930s.

Trying to soften the blow, the Federal Reserve has just printed another more than $2 trillion. This is the fastest rate of new money creation in history.

But all that free money can't keep thousands of oil workers from losing their jobs as oil prices crash and burn.

It cannot restore lost production at locked down meat-packing and food-processing plants. 

Nor can it restore output from countless factories idled because supply chain disruptions prevent deliveries of critical raw materials.

In other words, just as the supply of money in circulation shoots up almost at the speed of light, the supply of goods available for purchase is starting to drastically shrink.

More and more dollars chasing fewer and fewer goods is the textbook definition of inflation. And as inflation comes roaring back, it's going to send safe-haven demand for top-rated cryptocurrencies blasting up.

Happily, Buying Crypto Is Now Easier Than Ever

Not long ago, you typically needed one kind of crypto account to buy Bitcoin (BTC, Tech/Adoption Grade “A”). And then another kind of account to exchange some of your Bitcoin for other top-rated coins. 

This made trading cryptocurrencies more cumbersome than opening an online brokerage account to trade stocks. But no more.

Now you can do practically everything through just one account. Coinbase, for example (a leading U.S.-based crypto exchange) provides essentially one-stop shopping for aspiring crypto investors and traders. 

With just one easy-to-use account, you can not only buy and sell Bitcoin, but also Ethereum (ETH, T/A Grade “A”), Tezos (XTZ, T/A Grade “B-”), EOS (EOS, T/A Grade “C”) and 21 other crypto assets. Link it to your bank account to pay for your crypto purchases. Or just pay by charge card!

Overall, Coinbase has excellent liquidity and robust trading volumes — which means you should generally get better fills on your buy and sell orders.

It's quite secure due to its 2-factor authentication (2FA) process. Similar to Google’s two-step verification, this process double checks your identity by sending a PIN to your cellphone after you’ve logged on using your password.

One Final Important Point

Apart from trading accounts that we ourselves may have, neither we nor Weiss Crypto Alert has any business relationship with Coinbase (or any related entities).

We have never accepted — and will never — accept any compensation from any crypto service provider for customer referrals. Or to influence our analysis in any way whatsoever.

Whether you choose Coinbase or some other service provider, opening your first crypto account is going to be the first step into a grand adventure. Good luck. 

And remember to keep up with the current top-rated cryptos in Weiss Cryptocurrency Ratings. So you always know the best coins to invest in.

Author

Juan Villaverde

Juan Villaverde

Weiss Crypto Ratings

Juan Villaverde is an econometrician and mathematician devoted to the analysis of cryptocurrencies since 2012.

More from Juan Villaverde
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

XRP steadies above $1.90 support as fund inflows and retail demand rise

Ripple (XRP) is stable above support at $1.90 at the time of writing on Monday, after several attempts to break above the $2.00 hurdle failed to materialize last week. Meanwhile, institutional interest in the cross-border remittance token has remained steady.

Cardano struggles to extend gains as retail interest wanes despite Midnight's NIGHT token launch

Cardano ticks higher after a bearish weekend, struggling to extend an upcycle within a descending wedge pattern. On-chain data shows an increase in trading volume and user activity after the Midnight side chain token launch.

Crypto Today: Bitcoin, Ethereum recover as XRP remains supported by ETF inflows

Bitcoin is trending up toward the pivotal $90,000 level at the time of writing on Monday, which marks four consecutive days of gains. Altcoins, including Ethereum and Ripple, are also rebounding above key short-term support levels.

Bitcoin nears $90,000 as recovery hopes clash with institutional outflows

Bitcoin is approaching the $90,000 resistance level at the time of writing on Monday, raising hopes of a short-term recovery. However, the bullish recovery is being challenged by weakening institutional demand, as evidenced by outflows from Spot ETFs.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.