Sunday, October 24
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Cryptocurrencies – The new traders playground!

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Some people have so much money they don’t know what to do with it, and end up spending excessive amounts on things they don’t need. Then you have those who have very little money and try to scrimp and save every penny that they can. And whilst everyone is entitled to do with their money as they will, spending it all and saving it all are not the only two options. You can also choose to invest.

Now, investing is kind of a mix of the two extremes above. It’s a way of putting your money somewhere, like with a savings account, but with a chance of earning more money on your investment. It’s also like spending though, because you’re tending to purchase something, whether it may be physical or digital.

The problem for both groups though is investment isn’t as straightforward as just putting money in, and taking money out. Values can fluctuate, and just as quickly as they can rise, they can also fall. Hence why you will hear traders talking about buying low and selling high, that’s the key to making money.

If you’re not careful, you could lose everything. It’s very similar to how sport betting sites operate, because you put money on a bet, if it comes in, you win, if not you lose. That’s the simple explanation of how investments work.

But what kind of things should people invest in? Where are traders putting their money right now? Well, it just so happens that many traders are treating cryptocurrencies as their new playground to invest in. Let’s take a little look..

Cryptocurrencies – The hot commodity

One of the most popular areas to invest in right now are cryptocurrencies. The problem are investing in this area is very high risk, because they’re unregulated and extremely volatile. One second something could be worth millions, the next it’s pennies. You can go from being poor to a millionaire overnight, and back again before you have even realized because you were fast asleep in bed.

Unlike normal stocks and shares which operate during specific time windows, cryptocurrencies are going 24 hours per day, 7 days per week, for 52 weeks of the year. There is no break, there is no time to let markets settle, they’re always on the go, and so you have to be on the ball all the time when investing here.

But it can pay off. At the start of the year BitCoin (BTC), the most well-known of all cryptocurrencies was worth around $20,000 for 1 BTC. An all-time high when it was recorded, and impressive considering the price used to float around the $7,000-$9,000 mark, with the odd spike up to $13,000.

Source: https://www.foxbusiness.com/markets/bitcoin-price-9-8-2021

But that record $20,000 valuation would soon change, and within months 1 BTC was equal to around $60,000. And that caused many other crypto coins to rise in value too. Soon after though, people began selling, and the price plummeted to less than half their record figures. The market essentially crashed and the value of everything was a shadow of the former glories just weeks previous.

Where we’re at now

The value of BTC and many other cryptocurrencies that suffered similar fates are recovering. BTC is now worth back up toward the $45,000, which isn’t quite the $60,000 record that it reached but is better than the mid $20,000 region it had previously dropped to. And whilst the value of BTC has been a little up and down recently, it does seem to be steadily on the rise again, albeit a little slower this time around.

This always happens with cryptocurrency though, just as mentioned above, everyone begins buying, trying to get it as low as possible, and then sell when it gets high. But many people are expecting another peak this year or next, so lots have held on, and more have invested after the initial price crash.

But don’t only keep an eye on BTC, as Ethereum 2.0 (Eth 2.0) is another worth watching. Traders will be aware that Eth 2.0, an updated version of the original Eth cryptocurrency, will be rolling out in the new year. The rollout of 2.0 will see three phases, the first has already launched, which entails allowing people to invest in the new version of the cryptocurrency. The second and third are planned for next year, and it is when these launch prices are expected to soar.

Source: https://www.cybavo.com/blog/ethereum-2-0-launching-today/

But even without that, Eth is currently increasing at a rate above that of BTC, so if it carries on going the way it is, that could be the next big cryptocurrency that we see rocketing in value. Currently it is worth around $3,000, and so now would be the ideal time to invest, as it shows no real signs of falling in value with the rollout of Eth 2.0, although it has been lower in value before. But if it hits the values that BTC currently sits at, you could make a fortune if you trade it at the right times.

Conclusion

Just make sure if you are going to trade in cryptocurrency, then do your research. Don’t just take what we or anyone else says about it, research it yourself. Because if you fail to prepare for taking trading in cryptocurrencies seriously, then you will have to prepare to fail.

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