According to reports published on Statista, the market capitalization of Bitcoin (BTC) from 2013 to May 2023 reached a growth of over 1,000 (in billion U.S. dollars).
Market capitalization is considered by increasing the number of Bitcoins in rotation by the Bitcoin price. Bitcoin grew at an unbelievable rate, and the market doesn’t show any signs of stopping. Crypto has made it across the world, in all corners, reaching the average tech lover or those who want to invest in thrilling assets.
There has been media publicity, with personalities like Elon Musk talking about investing in crypto and supporting this market. With just one tweet, Elon succeeded in tripling the value of dogecoin – it’s a crypto asset that literally started as a joke.
It’s a fact that crypto has become a gigantic industry, and it’s hard for people to ignore, even those who don’t understand it nor present any interest. However, as popular as crypto is, it is still a mystery to most individuals.
After purchasing your first coin, you might question yourself: what should you do further? Should you hold on to your coin, wait for it to grow, or use it as an actual currency?
A couple of years ago, Bitcoin was the only cryptocurrency people used, and most of them were tech fans, so there wasn’t much to do with the coin, except to hold it.
But, as crypto became massive, more retailers and investors started to take it as a payment solution. 25% of U.S. citizens were still unaware and familiarized with crypto until 2019.
Crypto lacks physical presence around the world, as there are 18 million bitcoins in movement and only 6,674 bitcoin ATMs. The big majority of ATMs are present in the USA.
About a decade ago, the concept of crypto wasn’t familiar to the general society. Cryptocurrencies have become more popular as they allow the average individual a chance to make money with no risks.
However, not all cryptocurrencies are the same, nor have the same potential or value. It means that you should do good research before investing in crypto. Here’s a list of examples of popular coins:
- Bitcoin (BTC)
- Ethereum price (ETH)
- Dogecoin (DOGE)
- Cardano (ADA)
- Polkadot (DOT)
- USD Coin (USDC)
- Tether (USDT)
- Ripple (XRP)
- Binance (BNB)
You can explore endless possibilities with Binance, for example. Hold your crypto assets and start earning. Binance offers user protection with firm protection and industry-leading tech procedures. You get:
- Secure asset fund – Binance stores 10% of all training fees securely to protect a share of user finances.
- You get personalized access control – This allows you to restrict devices and addresses that can get access to your account.
- Advanced data entry – Your transactions are secure due to end-to-end encryption, allowing only you to have access to your private data.
Binance is celebrating its 5th anniversary, so you may want to research more about it and find out everything past, present, and future when it comes to the market and Binance.
Cryptocurrencies Are So Volatile
The reason why cryptocurrencies are unstable is due to their novelty. These concepts take time to settle and be accepted by the general individuals. The high unpredictability of cryptocurrencies keeps some away while investors catch the fancy.
However, you need to be highly disciplined to avoid checking your wallet several times a day. Seeing how crypto value declines and inclines, it’s easy to lose your patience. Finance experts recommend starting trading an inexpensive coin, like dogecoin, and see if you’re comfortable with the idea that crypto is so volatile.
It’s mandatory to know when to sell. You may want to use Bitcoin to increase your chances of luck, as according to many investors, it’s too big to fail. But if you want a less famous cryptocurrency, it’s not a good idea to hold it too much.
If a cryptocurrency you invested in shows no signs of retrieval and people have lost interest, it’s good to sell. Most coins are promoted, and once the interest runs out, you realize that it wasn’t such a good investment in the first place. So, don’t put all your money in a cryptocurrency.
As much loved as crypto is, even fans admit it’s an unstable asset. It’s clear that crypto is here to stay, but investing all your finances into the same coin is one of the biggest mistakes you’ll ever make.
Don’t stress yourself and create unpleasant surprises; instead, invest in how much you’re comfortable with. Understand your investment style – learn more about the basics of investing, as this is a critical step you shouldn’t skip.
If you have invested before, you know the risks involved so you might learn a bit about it.
Investing in Crypto in 2023?
If you believe in crypto’s potential, you could invest a sum that’s not affecting your savings. Although people are talking about risks in trading, it is highly misunderstood – it’s often the biggest excuse to not get into trading.
Like all things related to investments, the risk is inevitable – in the same way, it’s good to do great research before deciding to invest in a cryptocurrency.
The coin you bought last year might not deliver you a huge ROI yet, but stick to your trading strategies, have a realistic view of your finances, and avoid putting money in the wrong cryptocurrencies.
It’s good to focus on practical strategies and avoid bold moves. If you want to become successful in trading, you must be patient, educate yourself, and take baby steps.
Trading could always be risky if you don’t invest your money into the right cryptocurrency and don’t take advice from professional traders. The average beginner hears that trading is profitable and easy to manage, starts to have high expectations, and loses all their investments because they don’t know how to trade properly.
Keep in mind: the market rewards educated traders who have patience and stick with their strategies.