So far it’s been a tough 2018 for cryptocurrency investors across the board. SALT coin is no exception, but how has this cryptocurrency performed versus others? Does SALT coin provide investors with an opportunity for impressive gains in Q3 and Q4 of 2018?
How Has SALT Coin Performed In 2018?
SALT coin started off 2018 priced at $12.63 each and is trading at just $2.03 at the time of writing. Yes, an 83.93% drop in value is horrific for investors that got in during January. However, such a discounted price point could be an opportunity for investors today.
Since early January, the whole cryptocurrency market has contracted significantly. Even the most well know cryptocurrency, Bitcoin, has seen it’s price fall from $14,000 in January to $7.5k at the time of writing. In cryptocurrency markets, the general trend is that Bitcoin goes down less than other coins when the overall market is ticking downwards. In a bull market, Bitcoin often lags behind the gains achieved by altcoins like SALT.
This year, SALT coin has seen losses similar to other altcoins like Ripple and Cardano. The steep drop in valuation does not mean that the project is done for, but is rather a reflection of how the market is right now. One of the reasons why altcoins underperform Bitcoin is down markets is that traders generally like to seek shelter in Bitcoin. This means money flows from altcoins to Bitcoin so altcoins like SALT fall faster. The second reason for altcoins underperformance is that they are not actually priced in USD. Instead, they are predominantly bought and sold in Bitcoin. This means that SALT actually only really has a price in Bitcoin and that Bitcoin price is converted into USD and displayed as the price on sites like Coinmarketcap.com and TotalCrypto.io. Don’t believe us? Well, we will show you the proof that over 90% of SALT’s trading volume is done in Bitcoin:
What Are SALT Coin’s Prospects For The Rest Of 2018?
It is exceptionally difficult, if not impossible, for SALT coin to reach past all-time highs of $17.68 without a steep increase in Bitcoin price. There are several reasons for this:
- SALT provides its customers with cryptocurrency backed loans. Cryptocurrency is used as collateral and users can use this to get access to a conventional currency loan. Many have pointed out the tax advantages this can have, as borrowers have not technically disposed of the asset. This makes services like SALT’s more popular when it comes to tax time if the cryptocurrency market has seen large gains in the previous tax year (after all if investors have taken a loss then there is no tax to pay). SALT as a business is simply more likely to be doing well when crypto holders are using crypto backed loans to buy houses and Lambos rather than paying the bills. This means the SALT coin is set to do well in times of market exuberance.
- SALT does over 90% of its trading volume in Bitcoin. This means the cryptocurrency really needs Bitcoin to be doing well to achieve exciting levels of valuation for investors. As mentioned earlier, the SALT price you see in USD is simply:
0.00027085 BTC (it’s Bitcoin price ) * The bitcoin price = SALT USD Price
In times of cryptocurrency market optimism, more money flows into altcoins like SALT as investors look to trade their Bitcoin for higher returning altcoin positions. This means that the Bitcoin price of SALT actually goes up in bullish cryptocurrency markets. When SALT coin hit its all-time high of $17.68 on 29th December 2017, its Bitcoin price was 0.00118152 BTC, which is significantly higher than the 0.00027085 BTC at the time of writing.
What Price Might SALT Coin Achieve In 2018?
SALT coin needs the overall cryptocurrency market to do well to have a chance of exceeding its last all-time high. Right now, the cryptocurrency market is driven by Bitcoin. A number of cryptocurrency experts including YouTube influencer Nicholas Merten have predicted Bitcoin to hit $50,000 by the end of 2018. Given 2017’s massive run-up in Bitcoin price, these predictions might not seem so farfetched.
What might a $50,000 Bitcoin mean for SALT coin? Well, we know that SALT’s last all-time high priced the coin at 0.00118152 BTC each. If SALT achieved the same price in Bitcoin and Bitcoin was $50k then:
0.00118152 (SALT’s all-time high price in BTC) * $50,000 = $59.07 per SALT coin
So if commentators like Nicholas Merten are correct, SALT investors could see around 30 times gains on their investment.
How Do I Buy SALT Coin?
The TotalCrypto Team are excited by the potential returns that SALT can offer crypto investors in 2018. Need to be shown how to get your hands on SALT? Fortunately, we have you totally covered here.
Even though SALT coin may be an interesting investment opportunity, the TotalCrypto Team recommends you research the project thoroughly before making any moves. You must be aware that the cryptocurrency markets are perhaps the most volatile in the world and reductions in value of 80%+ are not uncommon. This is the price that is paid for the potential to achieve oversized gains.