There is no doubt that Bitcoin is back.
The price of the initial cryptocurrency was higher than $ 100,000, marking that the growth rate of the past 12 months was 160 %. Encrypted enthusiasts believe that 2025 is a breakthrough in digital currency, which mainly thanks to President Donald Trump's voice support.
It is undeniable that cryptocurrencies have become one of the most charming financial corners, especially because the global market value of assets is now more than $ 3 trillion. Scott Shapiro, a senior product director of Coinbase, said that daily investors should not ignore the impressive growth of cryptocurrencies. He said that if they do this, they may regret it.
Xiapiro told Xiapiro: "At some time, if you do not become a person with an encrypted world, because the financial community is modernization and becoming more open, encryption is the way to occur." wealthEssence
Despite the hype, the cryptocurrency market is still under gone and suffering from extreme price fluctuations, making most Americans unwilling to harm investment. Ariel Zetlin-Jones, a professor of economics at TEPPER Business School of Carnegie, warned that this is one of the most risky investment asset categories. However, even if he admits that if you understand the risks, investors adding some cryptocurrencies in the investment portfolio is not a bad idea.
Since November, Bitcoin has soared by 50 %, and other popular coins have also received greater benefits in recent months. If the hot cryptocurrency market provides you with FOMO, it is understandable. However, please consider the risks related to risks-there are four tips here to outline how to safely invest in cryptocurrencies.
Encryption is still a young and dynamic market that is still developing, which means that the best investment strategy will not cut and dry.
Investors' journey has always started in depth, but this is especially in terms of cryptocurrencies. Your decision should always be based on facts, not whimsical. This includes learning coins, exchange and wallets as much as possible.
Cryptocurrencies are one of the most widely discussed themes on platforms such as Reddit, but wise investors should discount the suggestions provided by anonymous strangers on social media platforms. They don't have your greatest benefit inside. The same is true of research materials provided by encryption exchanges and platforms.
If the cryptocurrency looks so good, it may be true. In addition to the largest cryptocurrency of Bitcoin (Bitcoin, Ethereum and XRP), the market is plagued by Memecoins, including Trump himself. Their extreme price fluctuations are not your friends, many of them are fraudulent vehicles.
Zetlin-JONES warned that most of them were similar to non-infectious token (NFTS), which was very popular a few years ago. Although they may attract your attention, for most people, they are not a good financial move.
Zetlin-JONES said: "We now have a lot of evidence that most people who invest and buy NFT have finally lost money." "This is not to say that no one makes money. This is not that there are still some valuables today. There is no doubt that there is no doubt that there is no doubt Tokens, but to say that most people in investment loss.
Check the Fortune's encrypted speed course to understand all information required for blockchain and cryptocurrencies.
The market is essentially turbulent, but it must be recognized that the price of encryption is particularly volatile. It may be easy to see Bitcoin, and it has seen its value in the past two years. Not many people will complain about such returns. However, if you look closely, there will be some dangerous signals. For example, between July 29 and August 5, 2024, the price of Bitcoin fell 22 %.
Zetlin-warned: "If you check daily income in a short time, the volatility of its return is more than other economists or financial market participants as the magnitude of the number of risk assets, such as the daily Standard 500 Index. "Jones.
When buying any coins, you must be alert to the price that may rise and decrease sharply at any time. For some people, this may sound interesting, but for others, this may mean financial weakness.
Today, millions of cryptocurrencies are available, and a diversified crypto asset investment portfolio can help reduce huge volatility and reduce the risk of investment for a long time.
Investors can only make cryptocurrencies a secondary component of its widespread investment portfolio, namely index funds, ETFs, fixed income assets and personal stocks. The risk of traditional financial assets is far less than encrypted.
Zetlin-JONES said: "I think more and more consensus is that part of your investment (cryptocurrency) investment portfolio is not a bad idea." "But people should understand that some of these investment portfolio are borne Risk.
For those who want to learn but want to avoid risks, it is a route that is stable. They are fixed in assets such as gold or dollars, and they are the strongest to avoid the main fluctuations. Please note that Stablecoin, known as Stablecoin, does not guarantee stability-for example, the Terra / Luna Stablecoin platform participated in a major cryptocurrency market collapse in 2022.
The privileges of cryptocurrencies (for example, the market will never be closed) can eliminate obstacles such as intermediaries with financial market agencies, international boundaries and expenses.
"Contrary to the ownership of the stock of the traditional stock investment company, the investment in cryptocurrency provides investors with opportunities to provide trades 24/7, support the blockchain projects that they are interested in, collect and trading digital assets, and NFTS (such as NFTS), etc. Souvenir, etc.
Shapiro added that the encryption market is a more effective way for market operations.
However, this is due to the disadvantages. In addition to fluctuations and potential scams, government and financial institutions provide less consumer protection for encrypted users. If you feel that you are wronged in the cryptocurrency market, no one can do it.
Don't forget that the Americans who sell cryptocurrencies, or Americans who have paid, or Americans with other digital transactions must be reported as part of the annual tax application.
According to Pew Research, one -fifth of Americans tried cryptocurrencies. President Trump has promised to bring the industry into the mainstream and is expected to establish an encrypted consulting committee. The choice of Trump leads the US Securities and Exchange Commission (SEC) is the advocate of vocal encryption.
"We welcome the support of the new government to promote the innovation of digital assets. We hope to see more clear regulations and policies that are designed to accelerate the use of cryptocurrencies, which will promote the further growth of the global market and the entire industry." Spokesman of Crypto.com said.
Depending on who you are talking with you in the financial industry, they may have different views on cryptocurrencies. Although some investors do not touch it with a 10 -foot rod, other investors have used it to store, transfer and invest in daily life. For example, Charlo said he had used cryptocurrencies to pay rent.
Zetlin-JONES said it has to be observed how cryptocurrencies will compete with traditional banks. He added: "This is still one of the most turbulent asset categories in the financial market ... But this is a technology looking for killer applications."
If you do add millions of people with diving cryptocurrencies, you need to realize that this is very different from the traditional financial market. The risk of losing money in a short time is high. Although new technologies have never been perfect, cautious and knowledgeable investors may benefit.
This story originally appeared on Fortune.com