The beginning of 2018 has not been quite positive for the digital currency. In fact, the digital currency market dealt with a lot of losses. The capitalization of the digital currency market has dropped to about 59% since the start of the year.
However, the strange part is that despite encountering a decline in value BTC still seems to be doing a lot better than other altcoins. What gives Bitcoin an edge over the other coins is that it could easily make quick gains.
The positive side of the picture is that Bitcoin is trying to get back its dominance and it has been successful in capturing about 45% market dominance. In fact the performance of Bitcoin has been quite consistent from February to March.
The other digital currencies have also been striving to overcome the loss. Ripple enjoyed a market dominance of about 14% way back in January. Gradually, this dominance reached about 18%. Ethereum also promises to make a comeback.
Ethereum enjoyed the highest market capitalization way back on 8th January in terms of market capitalization. In fact the market dominance of Ethereum has increased from 12% to about 20%. However, this digital currency could not hold its dominance for long and it fell to about 15% soon.
If we have to point out a digital currency that has been enjoying a promising future, then one name that comes to the mind is Bitcoin Cash. The market dominance of Bitcoin is in the range of 4.5% to 7%. However, Bitcoin Cash also experienced a decline of about 70% in the first quarter.
Litecoin is also not far behind in the race. Currently, it is the fifth largest digital currency when it comes to market capitalization. Now, this is quite a testing time for the traders and there is no room for mistakes at the moment.
What the traders need to do is that they should monitor the market trends and should be quite wise about their investments. This is the best way to avoid losses. Ideally, the investors should invest only when they witness a significant increase in the value of the digital currency.
The truth is that only those investors can survive in the digital currency world who are seasoned and can easily deal with the volatility of the market. One thing is quite apparent and that is 2018 has not been bringing consistent results for digital currency traders so far.