Bitcoin has been labelled as the best performing asset of 2016 by many leading business media outlets. The performance of Bitcoin during the year was impressive, registering a 200 percent growth since day one. But, a handful of stocks seems to have done much better than Bitcoin and yet gone unnoticed.
One of the well-known cryptocurrency margin trading platforms, First Global Credit has released a list of conventional stocks that performed well on its platform. The list has six entries including Cliffs Natural Resources (CLF), The Chemours Company (CC), AK Steel Holdings (AKS), United States Steel (X), Advanced Micro Devices (AMD) and NVidia (NVDA). All these stocks have registered gains ranging between 223 percent to 432 percent, whereas Bitcoin (XBT) on First Global Credit witnessed a 125 percent gain.
For calculation purposes, First Global Credit has considered the performance of stocks between December 31, 2015, and December 31, 2016. The trading platform, in its press statement, has labelled NVidia’s shares to be the best-performing ones throughout the year. According to the platform, those involved in trading the company’s stocks made profits irrespective of their trading habits.
Cliffs Natural Resources exhibited the highest gain among all assets after its price rose from $1.58 to $8.41 in a span of 1 year. The improved performance of other assets on the platform indicates the possibility of gaining better returns by distributing investments across multiple assets including bitcoin. The negative correlation between Bitcoin and traditional markets also help investors to maintain a positive balance sheet irrespective of the cryptocurrency’s performance.
When the investment is distributed across conventional stocks and bitcoin, downward movement of any one of the asset class will be adequately compensated by the upward trend of other. Even in the worst-case scenario, the losses will be limited to recoverable limits. The increased interest in conventional assets among Bitcoin traders has encouraged First Global Credit to introduce Hong Kong stocks on the platform. The new offering is expected to go live soon, offering more trading options to the community.
Ref: FGC | Image: NewsBTC