What To Expect From Crypto Trading? Still Hot Or Not In 2021
Many of you have seen a dramatic price movement of cryptocurrency, especially bitcoin. The price of bitcoin surged in 2017, and it came close to reaching the then-unthinkable high of $20,000 but fell short at $19,783.
Since then, Bitcoin has plunged over 80% to $3,500 in 2018, in a crypto market crash that has surpassed the late-90s Dot-com bubble’s collapse.
In this article, we will discuss the current situation of crypto trading. Let’s start with some numbers.
Bitcoin Price Surged In 2020:
Bitcoin began to rise slowly and steadily in 2020. The popular cryptocurrency gained 5% in December 2020, reached an all-time high of $22,400. It’s also worth noting that bitcoin’s market value has risen to $384 billion due to the new high.
Currently, the most demanding coin is trading approximately at $35 893. And it is not the all-time high in this recent year.
On the other hand, many people still feel that cryptocurrencies are a boom with overstated values. In contrast, others continue to speculate, buy and trade them, or even hold them for long periods.
While each trader must make their own judgment about whether or not to enter the crypto market, here are some key considerations to keep in mind.
- Crypto might become universally acceptable:
Not even companies, but traders are also interested in investing in cryptocurrencies. Undoubtedly, it is an excellent pick for traders and investors if you know how to make money with cryptos.
Also, many giants, businesses, and companies are incorporating Bitcoin and other cryptocurrencies into their operations. PayPal, for example, is the latest company to create a new service that allows PayPal customers in the United States to buy, trade, and store cryptocurrencies directly through their PayPal wallets.
Only PayPal? Not actually. The famous brand Tesla announced that it had bought $1.5 billion worth of bitcoin. It was an official announcement, and the company purchased the amount to “diversify and maximize profits” on assets that aren’t required for the company’s operations.
Furthermore, Tesla has also stated that it plans to accept bitcoins as a payment mechanism for its products shortly, though on a limited basis at first.
- Limited amount of BTC:
The total number of bitcoins available is limited to 21 million, and over 18.5 million have already been mined. So far, the Chinese government has acted against crypto miners, which is not new. Local governments were instructed to reduce their capacities in cooperation with the miners gradually.
Even though the maximum amount will not be in circulation until 2140, supply decreases while demand is increasing, driving the value of this cryptocurrency to climb. A surge in cryptocurrency demand could push Bitcoin’s price even higher, especially given its widespread use as a payment method.
- Options Trading In Crypto:
For new traders who can’t afford to buy bitcoin, binary options trading in the crypto asset is quite popular. A quality number of people choose cryptocurrency as a profitable trading asset.
Bitcoin and other Altcoins are also playing a vital role in making a profit from online binary trading. Moreover, it is a popular trading form that is more accessible than other trading forms.
On the other hand, while the value of fiat currencies, particularly the US dollar, is declining due to the pandemic’s effects, the cost of goods is increasing.
Many investors, including significant corporations, feel that BTC is a deflationary hedge since it cannot be devalued like fiat currencies due to its decentralized nature.
Cryptocurrency is an attractive trading instrument for many traders, though it is a highly volatile asset. While moments of rapid rise indicate possible profits for traders, these surges are frequently followed by dramatic drops. While this isn’t true for other cryptocurrencies, Bitcoin is certainly not alone in its erratic volatility.
So, it would help if you stepped wisely with these trading instruments to avoid a more significant trading risk. Also, a trader or holder that decides to diversify their portfolio with bitcoin needs to do their own research and be prepared for losses.