In the last couple of years, the concept of cryptocurrencies has attracted a lot of attention from many people out there. It existed for more than a decade, but its popularity has reached its peak only recently. The reason is quite simple, the rise of its value during that time.
Some would say that people haven’t been as interested in these before the global pandemic of COVID-19. Before it, the value was at a certain level, and when the pandemic struck, it dropped severely. So, many became interested after the drop. The story after it is known, reached its record a year after that. If you want to find a proper trading platform, visit bitcoinscodepro.com/de.
However, there’s something we would like to discuss. Many people have a prejudice that cryptocurrency trading is a simple process, and they will reap all the benefits in no time. However, it needs to be said that this is not the truth. Let’s take about why this isn’t the case.
A Plethora of Options
For a long time, the general public was aware only of the existence of Bitcoin. Sure, there were numerous other options to choose from. However, they weren’t as attractive. Over the years, some major players have started to emerge, and some even say that a couple of them can challenge Bitcoin in the future.
For instance, the appearance of Ethereum has disrupted the market quite a bit. The main development behind Ethereum, Vitalik Buterin become one of the most respected faces in the industry. The reason was that the performance of Ethereum has been recognized as the main competitor for many reasons.
Another significant crypto that has started to emerge recently is Ripple. Even though only a handful of people heard about it until recently, many experts have claimed Ripple has even better performance, and lower production costs than Bitcoin, which is a key factor these days due to the green agenda.
There are many other valuable solutions like Litecoin and Dogecoin. The latter has become a popular topic due to the publicity it got through the tweets posted by Elon Musk. With so many opportunities in front of you, it can be quite challenging to determine which one of these you will use.
Bitcoin is Not a Sure-Shot Anymore
For many years, traders perceived Bitcoin investment as a sure shot. It’s because its value was not at a high level, and people started investing massive amounts of money to make a significant profit. However, we can see that the situation on the market has changed significantly recently.
With the developments of other cryptocurrencies, many faults of Bitcoin have started to emerge. For example, the production cost of Bitcoin was pointed out as one of its main weaknesses by Elon Musk. Plus, many experts on this topic have agreed with this statement.
There are even studies that have confirmed this to be the truth. Therefore, something that was perceived as a sure shot has proved not to be as solid. That’s why it may look like a complex thing to make the choice. For that reason, you need to pay attention to the market and research it thoroughly.
Anyone who’s heard about cryptocurrencies knows that one of its clearest characteristics is that the market is highly volatile. For those who don’t know what this means, it means that the value tends to rise and fall unpredictably. Still, this unpredictability is only at the first sight.
Thankfully, these predictions can be made based on the trends and market movements. Of course, sometimes it can happen completely unexpectedly. A clear example of this happening is the global pandemic of COVID-19, which caused BTC’s value to drop more than 40% in one day.
Nobody could predict that, no matter how carefully these trends were followed. You can see that this volatility tells you that this is a dangerous venture and you need to be extremely careful. Don’t be discouraged when something unpredictable happens, especially if there wasn’t anything you could do.
Crypto adoption is now a hot topic. Countless businesses from all over the world have adopted Bitcoin, Ethereum, and many others as a method of payment. Surely, this adoption played a key role in the value increase, which ultimately leads to the market’s growth increase.
In 2020 and 2023, some countries have started adopting these. The best example is El Salvador, which completely legalized Bitcoin. So, this crypto is used as a regular method of payment in the whole country. There are even some controversies regarding this decision, but this is a topic for another time.
As you can see, investing in, let’s say, some smaller player on the market, crypto adoption is not something that can play a crucial role. Sure, it can provide some indicators of the moves you should make on the market, but you will not have a clear idea about what you can expect.
Should It Be a Long-Term Investment?
Many people are interested in hearing whether this sort of investment can be regarded as long-term. It needs to be said that this is the truth. However, it requires constant control on your behalf. Some would even say that monitoring the market constantly should be a priority for all the traders out there.
With that in mind, you can see that the answer to the question of whether trading crypto is easy is simple. It is not easy to pull off. You need to pay attention to a plethora of factors that influence the market. Sometimes, you cannot follow them precisely enough to take action when needed.
As we’ve stated, crypto trading is not a walk in the park. If you have decided to go down this path, you should arm yourself with patience, and prepare yourself to invest a lot of time and resources. For that reason, we want to say that this is not for everyone. So, be prepared to quit if you come to an understanding that this is not for you. If it is, be prepared for a lot of work down the road.