Since the first cryptocurrency, Bitcoin, was put online, several have been born, each with its own characteristics and advantages. But if there is one thing they have in common, at least for some, it is the explosion of their values. A rise in the value of these currencies which pushes many people, companies and individuals to invest large sums of money in them. To ask the question of why should we invest in crypto-currencies, especially in 2020?, the answers are quite eloquent.
When the first Bitcoin appeared on the market in the early 2000s, no one could imagine and even less bet on the evolution that this virtual currency has known. An evolution of more than 20,000% in just a few years and economic forecasts indicate that the years to come are likely to be even more surprising. If you plan to invest in a virtual currency you can buy Tezos, one of the most reliable currently.
What makes a lot more sense when it comes to investing in virtual currencies is that Bitcoin isn’t the only currency going up in value. It certainly remains the barometer in this area, but several others are following in its footsteps. An example is Litecoin, whose value has grown by more than 2500% in recent years.
Moreover, for information, the value of the cryptocurrency market is constantly increasing. In this regard, as recently as 2018, it was estimated at around 40 billion dollars. Today we are well beyond that figure. For example, it is known that currently Bitcoin market value is no less than 2 billion, Ethereum is over billion, Ripple has its market estimated at more than billion while Tether is at no less than billion.
Simply put, the entire virtual currency market is currently estimated at over 6 billion and there are over 3,300 currencies capitalized on exchanges. If we consider all these figures, we realize that crypto-currencies are a real financial rush, an investment opportunity just waiting to be seized.
If virtual currencies have a strong upward trend, the fact remains that they have experienced moments of sharp decline. These are the times when good traders make good investments. Suffice to say that investing in crypto currencies requires having a strategy. You have to know when to take a position, on which cryptocurrency to bet.
To put it another way, even though Bitcoin remains the reference currency, it does not have the same curve as all the others. So while it loses value, other cryptocurrencies see theirs increase. That said, you won’t do it without the help of a good broker. There are several, so you will have to choose according to your expectations and investor requirements.
We can stay focused on Bitcoin or on other currencies that have a certain and great value today by forgetting an essential point. The opportunities to invest in virtual currencies are not only at these levels. Indeed, several crypto-currencies are rising on the market. Their values are increasing day by day.
As a good investor, you may be led to see it as an opportunity for the future and take shares whose value will no longer be the same in a few years. On the other hand, it is also essential to take into account that all newly mined virtual currencies are not always reliable. Some are born, mined for a while and disappear without a trace. This is why it is important to be properly informed before investing your income in a currency.
In this regard, you can join groups of seasoned investors who will be able to orient you to new currencies and give you advice. You can also choose to stay constantly informed about the universe and the progress of crypto-currencies in general. Still, investing in cryptocurrencies should not be done at random. You need to take some precautions.