Just one day after hitting its all-time high, Bitcoin increased its value by 10.5%. That's why we're giving you the tips of an expert to get you started in the cryptocurrency fever.
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This article has been translated from our Spanish edition using AI technologies. Errors can occur due to this process.
Yesterday, Wednesday, Bitcoin exceeded $ 20,000 for the first time in its history. Less than 24 hours later, the world's most popular cryptocurrency broke its own record and is now worth more than $ 23,000 per unit. She can no longer be stopped!
This Thursday, Bitcoin posted a 10.5% gain, reaching $ 23,655 (about 468,000 Mexican pesos). This corresponds to an increase in value of 220% in 2020.
The rise of Bitcoin responds in large part to demand from large investors who are intrigued by the possibility of making quick profits. Additionally, it can be a good hedge against the risk of inflation thanks to its limited supply of $ 21 million.
On the other hand, it is expected that it will be a conventional mode of payment in the not too distant future. Last October, PayPal launched a buy, sell and payment service for cryptocurrencies. There are still few companies that will accept Bitcoin and the like in their transactions, but it is expected that crypto markets that improve their infrastructure will become more accessible.
"Due to the constant deterioration in fiat money, alternative currencies are being sought," the Deutsche Bank analysts write in a note. "It seems that Bitcoin will continue to be in high demand."
$ 23k pic.twitter.com/ZCbPAmKnQp
– Adam Back (@ adam3us) December 17, 2020
Expert advice for investments in cryptocurrencies
Cryptocurrencies that were created more than 10 years ago were met with great suspicion in the beginning. In addition to constant price fluctuations, they were linked to criminal groups, hacks, and operational disruptions. In recent years, however, institutional and private investors have lost their fear and are increasingly turning to Bitcoin, Ethereum and other similar entities.
If all of these convince you to invest in cryptocurrencies, then you should take the advice of Brian Armstrong, CEO of Coinbase, one of the largest cryptocurrency trading platforms.
This Wednesday, prior to Bitcoin's sudden rise, Armstrong shared a post on his blog indicating that he and his company have a "long-term view of the market." However, he emphasizes that investing in cryptocurrencies "is not without risks".
"We are always excited about the growing interest in cryptocurrencies. However, it is also important to know that this is not only a time of high volumes but also of price volatility," wrote the CEO of Coinbase. "The market can move much faster than stock markets in any direction."
The specialist warned investors that they could focus on short-term speculation. He also encouraged his clients to "seek resources" and consult financial experts to gain a better understanding of the crypto market.