Toncoin Price Guide: How to Trade TON crypto CFDs

Toncoin (TONUSD) is a relative newcomer to the crypto sphere, and has been growing in popularity over the past several years in part due to its high-speed transactions and decentralised applications. Let's learn more about this rising star in the digital coin sphere and explore whether it could become the next addition to your CFD trading portfolio.

TL;DR

• Blockchain Technology: Toncoin's blockchain leverages multi-level sharding and Byzantine Fault Tolerance, enhancing scalability and security.
• Telegram Connection: While Telegram no longer officially supports TON, its initial association provides Toncoin with visibility and market appeal.
• Trading Options: Toncoin can be traded directly on exchanges or through CFDs, allowing investors to speculate on price without holding the asset.

What Is Toncoin?

Toncoin is the cryptocurrency of The Open Network (TON), a decentralised blockchain first created by Telegram to be a speedy and safe system. Now independently operated, TON is built to handle extensive transaction volumes, allowing for millions of transactions per second. The Toncoin token, $TON, facilitates activities like paying transaction fees, staking to secure the network, and participating in decentralised applications within TON's ecosystem.

The Toncoin blockchain operates through a Proof-of-Stake (PoS) consensus model, where validators are selected based on the amount of $TON tokens they stake. Validators maintain network security and earn rewards, while users can stake their tokens to contribute to network integrity and gain returns. Toncoin's architecture utilises multi-level sharding, a technology that segments the blockchain into smaller pieces to support rapid transaction processing and increased scalability. With Byzantine Fault Tolerance (BFT), TON is designed to be resilient against network disruptions, ensuring reliability and security.

For investors and traders, Toncoin's movements can also be traded on via Contracts for Difference (CFD). Crypto CFDs allow traders to capture Toncoin's price movements without owning the asset itself. With CFD platforms, investors can leverage trading positions, which potentially amplifies returns or losses on Toncoin's price rises or declines.

Toncoin’s rising popularity, coupled with strategic integrations, such as a Toncoin wallet on Telegram, has fueled price gains, making it increasingly relevant in crypto markets and CFD trading. Its appeal lies in both its utility within TON's decentralised ecosystem and its promise as a speculative asset, supported by growing mainstream interest and use.

Toncoin Price History

Following its 2020 launch, Toncoin was distributed via open mining, allowing widespread participation among developers and early adopters. In August 2021, it debuted on the market at $0.50 before rising in value by nearly eight times to $4.45 over the subsequent three months. However, the token wasn't immune to the broader crypto downturn observed in 2022, and Toncoin had dropped to $0.80 by June of that year.

Despite this decline, Toncoin rebounded later over 2022 and 2023 as the platform expanded its infrastructure and user base, with daily trading volumes reaching up to $100 million at times.

How Is Toncoin Traded?

Toncoin can be traded through direct purchases or derivative trading options, depending on the trader's goals. On centralised exchanges like Coinbase (COIN), investors can buy Toncoin directly using normal currency or other crypto coins, allowing them to hold the asset in a crypto wallet for potential long-term gains.

Alternatively, those interested in speculating on Toncoin's price without owning it can try contracts for difference. CFD trading lets traders open long or short positions based on expected price movements, allowing them to trade on underlying market fluctuations without the use of a crypto wallet. A key feature of CFD trading is leverage, which enables traders to control larger positions with smaller capital than they would be otherwise able to. However, leverage amplifies both potential profits and losses, underscoring the importance of risk management.

Factors Affecting Toncoin's Price

• Market Sentiment and Investor Outlook: Toncoin's price is highly affected by the overall sentiment in the cryptocurrency market. Although technical indicators currently show a bullish trend, broader market uncertainties contribute to cautious investor behaviour, which can impact Toncoin's price stability.
• Technological Development: Operating on The Open Network, Toncoin benefits from a layer-1 blockchain designed for high scalability and fast transaction speeds. With features such as sharding and support for decentralised applications (dApps) and smart contracts, Toncoin's underlying technology drives its appeal. Continuous development and upgrades in the TON ecosystem may increase demand for Toncoin.
• Usage: As the native token of TON, Toncoin's value is influenced by its applications within the network, such as paying transaction fees, participating in governance, and staking to support network security. Demand for Toncoin tends to rise with increased usage within the TON ecosystem, as it plays a critical role in network operations.
• Association with Telegram: Toncoin's connection to Telegram, one of the largest messaging platforms globally, boosts its visibility and appeal in the crypto space. Although Telegram officially distanced itself from the TON project due to regulatory concerns, this association still draws interest and speculative activity, impacting Toncoin’s market value.

How to Analyse Toncoin

Examining Toncoin's market movements and underlying drivers is essential for building a strong CFD trading strategy. Here are some key approaches used to analyse Toncoin specifically:

Fundamental Analysis of Toncoin in Crypto CFD Trading

• Team Expertise & Blockchain Innovation: Assess the backgrounds and skills of Toncoin's development team along with the strength and scalability of its blockchain technology. This can offer insights into the project's long-term potential and intrinsic value.
• Token Functionality & Role: Examine how Toncoin operates within the cryptocurrency landscape, including its specific uses and the likelihood of wider industry adoption.
• Macro Dynamics: Consider Toncoin's position in the market, including liquidity and other factors influencing competition, while also factoring in broader economic trends and regulatory impacts that could influence its value.

Technical Analysis of Toncoin in Crypto CFD Trading

• Historical Price Behaviours: Look at Toncoin's past price movements and use charts to project possible future price directions.
• Demand Trends: Analyse trading volumes to gauge interest in Toncoin, helping to interpret the strength and sustainability of price shifts.
• Momentum Indicators & Volatility Signals: Apply technical tools such as MACD and RSI to assess market momentum, identify volatility levels, and determine potential entry and exit points for Toncoin trades.

Sentiment Analysis of Toncoin in Crypto CFD Trading

• Online Buzz: Take stock of discussions and opinions on platforms like Twitter and crypto forums to capture the prevailing sentiment around Toncoin, which may foreshadow price movements.
• News Events: Observe how news stories, executive decisions, and regulatory updates might influence Toncoin's market value and volatility.
• Investor Sentiment & Behavioural Patterns: Pay attention to trends in investor psychology regarding Toncoin specifically and the wider crypto world as well to anticipate potential market shifts impacting Toncoin.

How Can I Start Trading on Toncoin CFDs with Plus500

• Take Time to Learn: With completely free resources like the Plus500 Beginners' Guide, you can expand your knowledge of CFD and wider market dynamics before trading.
• Register & Verify: Prepare your trading account, follow the verification steps, on the Plus500 platform, get verified, and make your first deposit.
• Practice Trading: Get familiar with the ins and outs of CFD trading by using Plus500's unlimited free demo mode.
• Time to Trade: Use all you've learned to craft your personal trading strategy and begin your CFD journey! Make sure to make use of appropriate risk management tools, and keep in mind that the risk of significant financial losses is ever-present in this trading arena.

Conclusion

Toncoin's advanced technology and its past connections to a prominent platform like Telegram make it a notable contender in both the general crypto and crypto CFD arenas. While its future trajectory is anything but set in stone, Toncoin's unique features could make it a potential option for CFD traders looking to expand their portfolio in a time of volatility.