Described as the first step to anarchy by the critics, and hailed by its supporters as a way of having more liberty in the world of finances, digital currencies are a topic that remains one of the most popular ones. We can see that people got pretty excited with the fact that Bitcoin, the most important crypto has managed to reach more than $40k in 2024, attracted a serious amount of interest. In the first couple of days in 2024, BTC’s worth has risen by 50%. Now, we can see that its price has stabilized itself once again and that we can see that the current one is around $35k.
When you talk to the experts, you will learn that the reason why its reason skyrocketed in the last couple of months is the amount of money it received from both private and institutional investors. The reason why so many people decided to invest their money into this concept was the global pandemic of coronavirus, which devastated so many businesses from all over the world. Without any doubt, we can see these investments have made a significant impact on the rise of BTC’s worth.
Not only that, we can see that Ethereum has also reached its new record. Not only that, but Ethereum also didn’t experience any big drops during the first months of 2024. The main reason it has managed to preserve its worth is that a high number of online casinos have chosen this cryptocurrency as their top method of payment.
Participating in the cryptocurrency market can be a complex thing. Since there are so many different factors that can have a crucial influence on the price, every trader needs to make sure he or she has enough free time to track all these market movements. If you are interested in comparing the prices of different cryptos, read more and you will be able to find exactly what you are looking for.
Now, since 2024 had both good and bad moments for this market, investing in some of these can be tricky to some degree. The question is, is it risky to invest in digital currency at this moment? Let’s say about what we can see about the current situation.
Source: Corporate Compliance Insights
How Risky Investing in Cryptos Really is?
What every person who’s interested in becoming a trader needs to know is that we are not talking about a market, in the traditional meaning. Digital currencies should be perceived as some kind of digital precious metals and pretty much all the factors that have a saying in the price of these metals, have at the price of digital currencies.
At the same time, it needs to be said that making predictions on this market is much harder than any other. Since there are so many different cryptos, you need to know that pretty much every one of these has its own set of features that have a pretty big role in how they will behave in the market. For example, let’s talk about BTC’s price halving, which occurs at a certain period.
Sadly, we can see that there are a lot of people who are simply not aware of this fact. How do we know this? Just take a look at the panic that has occurred at the moment of the previous halving, which happened a couple of years ago. Therefore, it’s needless to say that many people are not sure about investing in this market, due to the plethora of different things that require their attention.
Source: Crypt
What About the Current Situation?
We can see that the start of 2024 was exceptional for almost all the main cryptocurrencies, like Bitcoin, Ethereum, Litecoin, etc. We’ve already said that 2024 was pretty rough for some of these, while some of them didn’t experience any kind of changes. Once again, it should be said that the BTC was the one who’s suffered the biggest difference in its price.
In March 2024, its price was $3,500, and in the first couple of days in 2024, it reached $41,000. In less than a year, we can see that the market has witnessed some massive changes. If we take a look from this perspective and see what happened in the history of digital currencies, it wouldn’t be a mistake to predict that we are about to witness the drop in the prices.
With that in mind, it can be said that 2024 is the perfect time to invest in this market. Just think about it, cryptos are now just one step away from becoming mainstream. Meaning, that the situation around their prices will stabilize at some point. This means that 2024 will maybe be the last moment for a lot of people to invest a significant amount of money into BTC because when the price stabilizes, we cannot expect the prices to differ so many in such a short time.
But at the same time, we cannot say that the price will stabilize before all the coins are mined. Since the limit has been posted at 21 million coins, there’s still a long way to go. When we’re talking about other cryptos like Ethereum, the situation is not like in the case of BTC. There will be more time to invest in this one. All of this information sounds highly-complex and uncertain, right? You are right, it is complex, but it is not impossible to understand.
Source: mybitcoin
The Bottom Line
We’ve provided you with all the most important information that can provide you with a clear idea about how you should behave in the cryptocurrency market in the current situation. There are a plethora of different things you need to take a look at before you are ready to make a certain decision.
All-in-all, we would like to say that 2024 is possibly the last year for investing a lot of money into Bitcoin. At the same time, we can see that some new cryptos are emerging on the horizon. Some of them are national ones, while some of them will follow the old recipe. We will just have to see what the future will hold for this market.
