For the last month or so it has been virtually impossible to open a new account to trade cryptocurrency. This is about to change. If you have tried to open an account at Bittrex, Bitfinex and Binance lately, you have been greeted with a pleasant statement that reads something along the lines of
how much they appreciate your interest, but due to the high demand, new accounts have been suspended until upgrades to the systems are made to accommodate the new volume.
At Poloniex or Kraken the difficulty and delays in getting approval and verified has slowed the process of money inflows substantially.
The likes of GDAX and Gemini, with their limited symbols to trade seem to have had no problem in the past few weeks and continue to add new accounts in large numbers. I wonder if much of the new money has flowed through Coinbase to access their GDAX trading platform and get a “jumpstart” for the Noobs.
I’ve seen the Bittrex website notice saying on January 15 they will allow new accounts again. When these “suspended” exchanges begin to allow new accounts will this see an increase in buying for cryptocurrencies? My belief is that most of this interest is new FOMO money rushing in because they want to own crypto and they feel late to the party. This stands to reason since the logical first step is to buy first, and sell later. Not many people are interested in shorting anyway, even if they fully understand the concept.
Although short positions are allowed on some coin exchanges, Bitcoin is the only crypto that can be shorted via the only crypto futures contract where institutional money would find a "safer" play (XBT at the CBOE, BTC at the CME). So, the bias remains to the upside for the rest of the crypto universe in terms of new speculative money entering to participate.
Regardless, the inexperienced money will have trouble trading profitably with extreme swings in volatility. With a trading system and proficiency in its use, the chances of a success in this wild west greatly increases. HODLing too, afterall, is a position and may the best course of action otherwise.
A parting thought related to a wave of new buying – one day in the future, my belief is China will reverse course and allow crypto to flourish again across the Middle Kingdom. With their burgeoning middle class and appetite for the markets and trading, well, you get the picture, this could produce a massive wave of buying, unless of course they produce a Yuan crypto!