As Bitcoin crosses the $ 60,000 mark, and the tweet from Musk about other cryptos, a new rally has begun in the cryptocurrencies. Many are rushing in to buy, while others are booking profit. What to do in this rally and should you invest in it?
Cryptos are becoming the new favorite of investors, giving enormous returns. We all have heard, if you invested $1000 then, you would have been a millionaire by now, etc. Let’s be realistic about it as cryptos are fairly new and with the speculations revolving around their security, legitimacy, and survival.
New investors are pouring in money into cryptos, turning it two or threefold in a matter of months, but with the lack of knowledge about the currencies, their impact on the environment, etc. is it a safe investment or another bubble in the making?
There is not much known about cryptocurrencies, for eg. Dogecoin, which was made as a parody to the Bitcoin boom, has a current evaluation of $1.6 billion. (which cryptocurrencies will survive crash).
90% of cryptocurrencies today will not survive a crash in the markets, says Nolan Bauerle, research director at CoinDesk. Along with other mighty statements by RBC Capitals, which estimate a $10 trillion futures market for cryptocurrencies.
There have been questions raised about the extreme volatility of cryptos, the spikes in prices with tweets from big names, etc. This can all be wrong, but will you bet your money on a reliable instrument or a fairly new and not known alternative. It’s a high risk and high reward situation here, factor in your risk potential, and make wise decisions.