A lot of financial-business establishments and individuals continue to involve themselves in the bitcoin currency as a way to earn money in 2020. The crypto market claims to be a growing digital asset for investment by the lot and it is not stopping more companies from using the controversial virtual currency for future money transactions. The said industry may have met downfalls in the past, such as the halt of Blockchain during 2019. This year, the spread COVID-19 pandemic continues to make numbers that put the faith of the economy in risky situations.
After the start of the COVID-19 pandemic, at the beginning of the year, crypto markets experienced a decline that caused them to lose more than half of their value. According to CoinMarketCap, most digital currency market value fell from $308 billion back in February to a drastic $118 billion in March 2020. Bitcoin dropped from more than $10, 400 to a dire $4,160 in the same months.
As we reach into the half of the year, financial-economies have begun to bounce back, as digital currencies remain stagnant even with all the current fluctuations in the market. It may also seem that most cryptocurrency establishments are striking back with more significant trading forces against the pandemic, with more investors interested in getting involved in the said industry.
MAKING MOST FROM THE PANDEMIC BY INVESTING
As controversial as it may seem, it doesn’t stop international business companies from taking advantage of using the digital currency. There are multiple considerations one should keep an eye on while looking forward to getting a hook on the crypto market, knowing it’s a dangerous game to play for those new to the industry. Understanding the key factors and characteristics of how the market works are undoubtedly crucial for new investors who are only starting.
Understanding the rules on how to invest in cryptocurrency is a vital must-know for everyone in the digital market. Artem Deev, an expert from AMarkets, has recommended novel clients of the cryptocurrency industry to help minimize the risks of getting scammed and as well as increasing that return on investment.
Avoid investing money in one asset, as new investors are shown to make this mistake repeatedly and tend to lose all money after negotiating the first deal.
Don’t go in blind.
Trusting only one source of data puts a massive risk on investor’s trust, finding new sources such as forums or financial analysis from brokers and experts to understand the market’s changes. One of the popular cryptocurrency developers most investors go with is Bitcoin, continuing to operate with full force despite the pandemic.
Moreover, last May 2020, Bitcoin was the first and well-known cryptocurrency developer that offered 50% reduced rewards with 6.24 BTC. Apart from that, the company is sure to bring the dominance index to 65-70% compared to other alternative digital currency companies, possibly making them the industry with prime market capitalization. As of January 28, 2020, the current Bitcoin price is at $8 994,85. This shows how resilient the economic status of the cryptocurrency industry is and why people continue to take advantage of the pandemic—by investing from home.