Crypto currencies or digital coins have taken the investors and trading markets by storm. Be it novice investors or and an enthusiast, all have developed a keen interest in them, if not liking, as they have given colossal returns. Recent bloodbath gave investors enough reason to doubt the stability and profit-generation potential of cryptos.
Still, if investors are wondering whether to grab an opportunity to invest in cryptos, whether they are here to stay. The answer is yes. Even, experts believe that crypto currency are a good investment option, provided market regulatory mechanisms are in place.
Dynamics of Crypto trading
Those associated with crypto markets are well aware of sudden and drastic price movements in cryptos and are prepared for it.
The crypto currencies exchange and market are not a thing of past. They came into being just a decade ago. Bitcoin, the first virtual coin emerged in 2009. Its value was $0 when it was introduced. It was only two years later that the value of Bitcoin touched $1 for the first time and in another 2 years, its value soared to $1,000.
Bitcoin saw its dream run in 2017, when its price galloped to $ 20,000. Though, the crypto soared to new highs, its growth was marked by many bouts of volatility. Going forward, in less than a year, it crashed to $3,300 levels.
Similarly, Bitcoin had slipped to $350 by April 2014 after hitting $1,000 for the first time in November 2013.
Young millennials drawn to crypto trade
Crypto currency has evolved drastically in a decade ago and is being accepted by many especially the youth brigade and millennials. It stands nowhere near conventional forms of trading but has gained quite a bit of traction among youths in past few years.
Year 2020 was particularly important for cryptos as valuations rose sharply in the middle of the coronavirus pandemic. One of the main reason why investors were lured towards virtual coins last year was weakness in traditional assets across the globe.
Some analysts even see 2020 as a breakthrough year for cryptocurrencies trade.
Easier to invest in crypto, than earlier
For most of the investors and traders, crypto currency market still remains a ‘tough nut’ to decipher and invest. Moreover, the extremely volatile fluctuations leave investors with a very little room for thought.
Bitcoin is a perfect example. It saw insane rise in 2017, with its price jumping from $ 1,000 to $ 20,000 in a year and then suddenly crashing to $ 3,000 in less than a year.
However, the massive returns in crypto currency trading is something that is drawing investors to this place. Moreover, the rules and mode of trading has been significantly eased up.Today, people can easily create an account using their phone and start investing.
Some crypto-dedicated apps are even allowing investors to make portfolios, which helps in diversifying assets. This will help investors invest in a pool of cryptocurrencies, giving them a chance to maximise their earnings while reducing overall risk.