Cut to the chase, are cryptocurrencies still worth investing in?
What does the future hold for cryptocurrencies?
Answer our short quiz to understand if you're ready to trade!
A lot of smug people made a lot of money buying Bitcoin. At its peak, at the end of 2017, Bitcoin's price went from nearly $3000 to over $14,000 within the space of a few short months. This marked one of the most remarkable investment stories of our time.
Bitcoin was seen as the answer to many problems such as removing the Central Banks as intermediaries, adding anonymity to transactions and enacting cross-global transactions at the blink of an eye, with minimal charges. Blockchain, the platform the cryptos operate on was seen as the new internet. Is that still the case?
Bitcoin and cryptos now
Nowadays, Bitcoin and the other leading cryptocurrencies are used very differently. While they are used as a payment method on a small scale, this just hasn't really evolved to the magnitude that it was meant to.
People don't use Bitcoin and other cryptos in stores and physically to the level previously anticipated.
However, the major cryptocurrencies have very different benefits. In times of trouble or uncertainty when the USD and leading US stocks lose their value, investors start looking for safety.
They find this in both Gold and cryptocurrencies, which are both considered a good store of wealth. Cryptos tend to correlate negatively to the USD. So when the USD goes up, Bitcoin does the opposite.
people run away from the USD they tend to run to Bitcoin and other safe haven
assets. This is a good indicator of how the crypto markets, led by the flagship
Bitcoin react to uncertainty.
How to invest in cryptos?
Cryptocurrencies are much more volatile than traditional Fiat currencies, which is one reason why they cannot be used as a stable payment method. One day your coffee might cost you $3, and the next it could be worth $35.
If volatility and high risk is not the game you are after, then you should try speculating on crypto price movements, by trading CFDs.
With CFD trading you will never actually own the Bitcoin asset, rather you will be deciding if you think the price of the crypto will go up or down. In this case you can literally make money on both rising or falling markets.
That stands in direct contrast to actually owning the crypto, where you will only gain value if the price of the crypto goes up. The same is also true for gold and other precious metals and in fact any asset that is available through the CFD platform you are trading.
The other benefit of trading CFDs on cryptos is that unlike buying the crypto you only n