2020 will go down in history as one of the most peculiar years in our recent history. But in many regards, it was a year that defied a lot of expectations. This is true for the financial investments sector, especially the stock and crypto markets which experienced a raging bullish trend in a year that everything seemed to crash and burn. This article will analyse the stock and crypto markets’ growth in 2020 and briefly review PrimeXBT – one of the fastest growing online trading platforms.
Growth of Stocks in 2020
The bull market of 2020 wouldn’t have been surprising, except that it happened while the whole world experienced the worst pandemic in recent history. However, the most surprising would be the brief bear run in the stock markets after the onset of the COVID-19 pandemic in March.
Almost all top stock market indices experienced a bear run from February 20 to March 21, 2020. Afterwards, they recovered and adopted a sustained bullish trend all year long. Here’s a breakdown of the performance of some of the major stock market indices after March 2020. S&P 500 – 71.7%, DJIA – 67.81%, FTSE 100 – 14.12%, RUSSEL 2000 – 103.6%, Euro Stoxx 50 – 57.85%, and NIKKEI 225 – 66.49%. This was a tremendous bullish run.
The stock market growth was primarily as a direct result of the availability of cheap money. Globally, central banks cut interest rates to unprecedented low levels. In the US, for example, the FED cut rates from 1.75% to 0.25%. The availability of cheap money led to increased demand for stocks by investors and day traders. Companies also engaged in aggressive stock-buybacks, which pushed the prices further up.
Growth of Cryptos in 2020
Inarguably, the coronavirus pandemic was a blessing in disguise for the crypto market. At the end of 2020, the entire crypto market had a capitalisation above $1 trillion up from about $191 billion in January 2020. That represents a growth of about 423% in just under 12 months. The average daily turnover also increased from $25.6 billion in 2019 to about $75.3 billion in 2020. The increase in the crypto market capitalisation was primarily driven by the surge in Bitcoin prices from low of $4,000 in March to historic highs of $29,187.19 on December 31, 2020.
The growth of cryptocurrencies in 2020 can be linked to the aggressive expansionary fiscal and monetary policies pursued by governments and central banks. These policies exposed fiat currencies to hyperinflation, which led investors and traders to pump money into cryptocurrencies.
Cryptos are decentralised, which means their values solely driven by demand and are not impacted by fiscal or monetary policies. For the first time in history, the number of institutional investors and traders surpassed retail traders who have historically dominated the crypto market.
Remember that cryptos are in limited supply and have a maximum mining limit. This surge in demand and the mainstream acceptance of cryptos resulted in the tremendous growth witnessed in 2020.
What Makes PrimeXBT One of The Most Preferred Exchanges in The World?
PrimeXBT is an online crypto exchange platform and CFD broker available in over 150 countries globally. It was established in 2018 and is registered in Seychelles, making it one of the newest crypto and CFD trading platforms. Although it is fairly new, PrimeXBT had an average daily turnover of $1.67 billion in 2020. This presents tremendous growth from the average daily turnover of $60 million in 2019.
PrimeXBT Social Trading and Covesting
PrimeXBT also doubles as a social trading platform known as ‘Covesting’. This means that traders can copy the trading strategies of other successful traders on the platform. This feature is especially useful for amateur traders who want to trade like professionals. Here, you get to review traders’ performance and their strategies and choose the most suitable strategy for you. You then set the amount to allocate for the selected strategy and click ‘Follow’. Your trades will be executed automatically.
While the Covesting feature allows other traders to achieve returns similar to those of leading traders, it also allows other traders to monetise their skills. Traders whose strategies are being copied can receive ‘success fees’ from their followers. Thus, the more followers a trader has, the money they will make.
Below illustration explains the Markets, Products & Trading Tools offered by Prime XBT.
Tradeable Assets on PrimeXBT
PrimeXBT is one of the few CFD brokers who offer diversified tradeable assets ranging from cryptocurrencies, commodities, forex CFDs, and stock indices. More so, you can trade cryptos 24/7 on PrimeXBT.
The crypto pairs available for trading on PrimeXBT include BTC/USD, ETH/USD, LTC/USD, XRP/USD, EOS/USD, ETH/BTC, LTC/BTC, EOS/BTC, and XRP/BTC. The stock indices available for trading include S&P 500, NASDAQ 100, Hong Kong 50, Germany 30, AUS200, Japan 225, FTSE 100, DJIA, Euro Stoxx 50, and France’s CAC 40. The commodities tradeable on PrimeXBT are gold, Brent, Crude oil, and Natural gas. The platform also has about 50 FX pairs, including crosses of XAG/USD, XAU/EUR, XAU/AUD, XAG/AUD, and XAU/USD.
Traders have maximum leverage of 100X when trading cryptos with PrimeXBT. When trading cryptos, PrimeXBT charges a flat commission of 0.05% on all trades. It also levies a funding rate ranging from 0.1250% to 1.8778% for long trades; and 0.0056% to 0.0278% for short trades.
Forex trading enjoys maximum leverage of 1000X and attracts a flat commission of 0.001% on all trades. You will also be charged a daily financing fee of between 0.00277% to 0.01388% on long trades and 0.00277% to 0.00527% on short trades.
Index traders can get leverage of up to 100X and are charged a commission of 0.01% on all trades. Index trading on PrimeXBT attracts a daily funding rate of between 0.025% and 0.0416% for long and short trades.
|Symbol||Trading fee||Financing/day Long||Financing/day Short|
|BTC/USD||0.05%||0.0417% Daily Funding Rate||0.0417% Daily Funding Rate|
|ETH/USD||0.05%||0.0556% Daily Funding Rate||0.0556% Daily Funding Rate|
|ETH/BTC||0.05%||0.0556% Daily Funding Rate||0.0556% Daily Funding Rate|
|LTC/USD||0.05%||0.0694% Daily Funding Rate||0.0694% Daily Funding Rate|
|LTC/BTC||0.05%||0.0694% Daily Funding Rate||0.0694% Daily Funding Rate|
|XRP/USD||0.05%||0.0833% Daily Funding Rate||0.0833% Daily Funding Rate|
|XRP/BTC||0.05%||0.0833% Daily Funding Rate||0.0833% Daily Funding Rate|
|EOS/USD||0.05%||0.0750% Daily Funding Rate||0.0750% Daily Funding Rate|
|EOS/BTC||0.05%||0.0750% Daily Funding Rate||0.0750% Daily Funding Rate|
Commodity traders get maximum leverage of 100X and 0.01% commission on all trades. Both long and short trades attract a daily funding rate of between 0.01805% and 0.0222%.
PrimeXBT Referral Program
Traders can sign up to become affiliates or ambassadors for PrimeXBT. This allows them to earn extra income of up to $1,250, making PrimeXBT’s affiliate program one of the most profitable among its peers. In the classic program, PrimeXBT partners receive up to 70% the trading fees from all the qualified traders they introduce.
All in all, we can say that Prime XBT is one of the most reliable exchanges that offers great trading tools for both novice and advanced traders across the financial markets.
Traders with active social media, blogging, or education community base can also earn extra passive income through the PrimeXBT Ambassador program.
How to Register?
PrimeXBT only asks the user for their email address and a minimum of 0.001 BTC or an equivalent amount to open an account on the platform and start trading. However, the exchange recently added the need for a phone number to collect the geographical data of customers as regulatory scrutiny across banned states increases across their governments. It only takes a user a couple of minutes to open an account on the platform.
That’s about the growth of stock & crypto markets in 2020 and how PrimeXBT contributed to this growth. In case of any questions, please let us know in the comments below. Cheers!