Investing in any kind of asset is always a risk. Are you willing to take one with cryptocurrency?
Even though the term was coined in the late 90’s, the concept of cryptocurrency has been around since as early as 1983, when cryptographer David Chaum came up with the system aptly called eCash. Most of the cryptocurrencies you’re aware of today can enter a supposedly blooming market thanks to the market giant, Bitcoin.
Although Bitcoin was created by an anonymous team, the name is synonymous with cryptocurrency in 2021.
But the crypto market is very volatile and unpredictable. So, investors everywhere are now asking: is 2021 a good time to invest in cryptocurrency?
Here’s what you need to know.
Current Market Value
In mid-August, many leading tech companies like Bloomberg and Forbes reported that the cryptocurrency market gained a market capitalization worth $2 trillion – a peak it achieved for the first time ever.
The market leader Bitcoin witnessed a market cap peak in April 2021 as well, going over $1,000 billion for the first time in its decade long history. It crashed again in June and has wiped out $400 billion in market cap since then until now (September).
Just a few days ago, on the 7th of September, Forbes reported that the top cryptocurrencies in the world had witnessed a loss of over $410 billion as compared to a day prior. Bitcoin suffered a sharp crash of about 15% and dropped to $43,000 – its lowest price in 3 weeks. Today, it stands at nearly $45,000 with a market cap of around $850 billion.
Bitcoin’s Bull Run is estimated to last for a longer time but the performance of the overall crypto market is highly unpredictable. The general consensus among industry experts seems to be contingent on the idea that crypto investments for 2021 onward will “bring volatility short-term and growth long-term.”
In order to safely invest in cryptocurrency, your best bet is to keep the following factors into consideration:
- Start with small investments
- Make sure you have finances to fall back on
- Keep track of savings
- Smartly time your entries and exits
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