One thing that has changed significantly in the last couple of decades is the rise of digital currencies or cryptocurrencies as we’d commonly call them. It’s astounding to imagine that over a decade ago, the first crypto was not even worth a quarter. Now, that same crypto is worth $55,000.
Cryptocurrencies like bitcoin, ripple, ethereum, and many others have gone above and beyond being digital coins we can invest in. One of the reasons why digital currencies are on the rise is because they are also functional and are used through various applications.
For instance, ethereum is used to streamline transactions in various industries like education, medicine, construction, and many others. On the other hand, ripple is on its way to becoming a coin that can help to streamline bank transactions even for those made overseas.
Aside from this, you also have to consider the fact that cryptos are accepted as a method of payment in many stores already. You might’ve been a skeptic of digital currencies before but now that they’ve consistently made impressive gains amidst the pandemic, should you remain skeptical?
Cryptos During The Pandemic
When the pandemic began last year, businesses were temporarily closed and even companies struggled. Although most companies moved forward through work from home setups, the decline in the stock market suggests that the pandemic wasn’t doing any industries any good.
While other financial instruments suffered from the effects of the pandemic, cryptocurrencies remained strong and most of them reached all-time highs with the biggest movers being bitcoin, ethereum, and ripple. Needless to say, those who invested in these coins at the start of 2020, were in for some major returns.
Now that some parts of the world are slowly trying to recover from the pandemic, more people are looking into cryptocurrencies and whether or not they’ll remain strong. Surprisingly, cryptocurrencies exploded this April as well. The frontrunner this time is Dogecoin.
Dogecoin is the current talk of the crypto community because of the fact that it’s simply a meme coin. However, despite its joke status, it’s still a strong coin. In fact, it has even posed a 4000% growth since the start of this year. All these thanks in part to the support of Elon Musk for the coin.
Now, one question remains. Should you begin investing now
Getting Into Cryptocurrencies This 2021
Experts believe that cryptocurrencies are still going to be a good investment this year. This is mostly because more people are accepting crypto and the changes they bring to various industries. Another reason is that cryptos are getting support from big names.
As we’ve seen these past couple of months, even the mention of the word Dogecoin by Elon Musk can send the price of the coin skyrocketing. It’s not just that though, as more companies and businesses accept crypto as payment, investors are going to benefit too. This is evident by the surge of bitcoin prices when Tesla began accepting it as a payment method last year.
It’s not really too late when it comes to investing in cryptocurrencies. There are so many platforms to choose to invest in. Other than that, so many coins have yet to reach their full potential as well. If you want to invest in cryptocurrencies this year, it’s imperative that you do as soon as possible.
Experts believe that 2020 is just the beginning of the rise of crypto. This year will be the time when it will truly rise. However, as promising as the gains maybe, you have to keep in mind that no other financial instrument is as volatile as cryptocurrencies. This should be your biggest concern.
The price of cryptos can fluctuate rapidly. If you’ve been keeping a close eye on cryptos these last couple of years, you might be well aware of just how huge price drops can be.
Due to its volatility, we suggest investing only what you can afford to lose. That way, you don’t suffer from major losses once the crypto bubble pops. It’s also good to invest in cryptos that have actual applications instead of being coins used for investments.
Coins like Ripple and ethereum are good options. Since both have real-life applications and are supported by many industries, they can remain alive for a long time.
Investing in crypto offers just as much risk as there is in any other form of investing. The promise of big gains may be enticing but you shouldn’t act too brazenly with your investments. It pays off to be patient and knowledgeable before investing.