With the very media entries of Tesla and Elon Musk in the cryptocurrency market (1.5 billion invests in Bitcoin to allow payment of Tesla cars by Bitcoin), prices have increased further and Bitcoin now reaches around 50,000 euros. The global blockchain and cryptocurrency market is now simply gigantic, and the gains made by initial investors are unmatched in any other market. But let’s try to define if the game is worth the candle.

According to Coinmarketcap.com, the world reference on the subject, the cryptocurrency market alone weighs 1.5 trillion dollars. Not to mention the economic impact of all the companies and startups that revolve around it. This figure can make you dizzy, and the main stocks in this market (Bitcoin, Ethereum, Litecoin, BitcoinCash, Celsius, etc.) are global benchmarks. The main problem with this market remains its very high volatility. A simple glance at the last three months is enough to be convinced: Bitcoin went from around € 17,000 at the end of November to € 57,000 at the end of February, before falling back to around € 47,000. A roller coaster game reserved for investors with a strong heart!

Obviously, with such variability, seasoned investors in Forex and other trading feast … and sometimes leave their shirts there! One effect, the market remains very unpredictable because it is not based on any traditional logic (sales of assets, patents, number of customers, etc.). A simple Tweet from Elon Musk was enough to earn some investors millions. And this same Elon Musk will have lost himself several million just by tweeting a few hours later that the price of Bitcoin was too high, thus creating a selling panic for many small investors. This simple example reflects the extreme volatility of this market and therefore remains reserved for the most reckless investors.

The use of cryptocurrencies, and of blockchain in general, is slow to become widespread, and does not yet make it possible to clearly define whether they will remain a simple trading tool or whether they will definitively enter our daily lives. It is probably better to go and bet on https://betfirst.dhnet.be/ than to try to predict Elon Musk’s next Tweet… It therefore seems unwise to invest too much of your wealth in this type of ‘assets. However, as a strategy for diversifying your portfolio, it can be fun to invest a very small part of your portfolio in a few safe stocks, such as Bitcoin or Litecoin. And then remain patient, so as not to give in to the panics that will undoubtedly occur in this still tumultuous market.

Thus, even if this sector remains reserved for the less conservative investors, it can be attractive and can reserve extraordinary gains in certain cases. And for always information and news on Finance and the Economy, visit our Blog Ecossimo News and Guide Economy & Finance.

--

--

--

figure out how to deal with your spending plan, set aside cash, bring in cash, contribute and then some. All without taking your head.

Love podcasts or audiobooks? Learn on the go with our new app.

I Made $100 with Crypto in Two Hours

Safex OneClick Miner: One Step Closer To Mass Adoption Of Cryptocurrencies

How Many People Own Bitcoin?

Portfolio Update — Feb 2021

Participating In Era Swap Mission Varchasva International Meet 2022

[Insight] Non-Fungible Tokens (NFTs) Skyrocketing

Big announcement during aelf press conference in Korea

Weekly Crypto Overview — Khilone #1

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
zayoour

zayoour

figure out how to deal with your spending plan, set aside cash, bring in cash, contribute and then some. All without taking your head.

More from Medium

Lapping it up, in

The Undercover Economist

US warns against travel to UAE citing Houthi drone and missile attacks

Crypto of the third blockchain in the world has collapsed LUNA has lost 90 percent of its value in…