Over the ten years of its existence, cryptocurrencies finally gradually begin to gain recognition in the world among classical financial companies, which previously did not consider them as serious financial instruments and preferred to stay away from them. However, despite the high volatility of cryptocurrencies, the difficulty of predicting price changes and the current lack of ability to regulate and control every single type of cryptocurrency, high user interest and huge turnover in this market force many companies to study cryptocurrencies and other similar digital assets and enter the game.
Cryptocurrency coverage is also beginning to be used by many companies, not only associated with the crypto market and operating right on it, but also many others that are not directly connected with this market. Some offer to cover their credit and debit cryptocurrency cards, which will be accepted everywhere along with regular credit cards, other companies offer their clients insurance coverage of financial transactions against fraudulent activities and other transactions that could lead to the loss of crypto assets by their clients.
One of these companies was the American company EF Hutton, which is one of the brokerage companies. The management of the company, that is part of Hutton Group Inc is going to provide coverage of some cryptocurrencies. This is a rather old company that was founded 115 years ago. EF Hutton now provides its clients with online investment services as well as digital finance services. Its parent company also controls Vibrant Mobility Inc., which is an online service provider and works with mobile services, that generally increases the synergy of the company’s efforts.
The company EF Hutton aims to cover the main and most popular cryptocurrencies, which now occupy the first lines of ratings in the market, such as Bitcoin, Ether, Litecoin, Bitcoincash and others. Moreover, in addition to digital currencies, the company is also going to provide coverage for some other types of crypto assets.
Christopher Daniels, CEO of EF Hutton, explained that the digital asset rating scale starts from one to five stars, where the highest rating indicates a positive outlook for the type of cryptocurrency as an investment tool. The asset has a five-star rating by the company assessment is the best and highest rating that financial instrument can have. This cryptocurrency position in the EF Hutton grading system also offers a remarkable assessment of future prospects for the next year, whereas a crypto asset rated by the company with a single star means a very bad prospect for the next 12 months.
Each type of cryptocurrency and crypto assets will be evaluated by the company in accordance with their own methodology, without relying on any third-party data and estimates. This should ensure the most effective management of digital investment instruments and the possible minimization of risks. The methodology used is simple, but at the same time highly inventive – each cryptocurrency is evaluated by analyzing short-term, medium-term and long-term functions that will affect its price.
The analyzed parameters include the purpose for which the instrument was created, the location of each digital investment instrument relative to others, as well as many others, such as their liquidity. These factors, combined with EF Hutton’s processing, are the primary method of assessment and coverage. The company has extensive experience in financing and evaluating the prospects of each digital investment instrument. Therefore, they confidently declare that their asset valuation methodology most likely determines the prospects of each asset, which will allow the company’s clients to receive the maximum possible profit and at the same time be exposed to lower risks.
On the example of the financial company EF Hutton, it becomes clear that the development of the cryptocurrency market is gradually reaching a new level. Many large multinational companies are already exploring the possibilities and features of the functioning of technologies used in the field of digital money. Some giants are already beginning to implement blockchain-based technologies in the turnover structure and the transfer of their assets and funds. Despite the difficulties with the regulation of digital assets, gradually even many advanced states are actively showing interest in these technologies, studying and preparing legislation for the ability to use and control cryptocurrency in their structures.
In a few years, probably, digital assets will be actively used around the world, both by private and public organizations, as investment tools related to various commercial processes, as well as to stimulate the economy. Already, you can use the financial capabilities that cryptocurrency and various crypto assets provide to investors, thanks to such pioneering companies in this field as EF Hutton and some other financial companies.