Crypto market cap: What it means for investors
Crypto is a digital currency.
It is based on a set of cryptographic algorithms, which make it virtually impossible for anyone to steal or tamper with.
It has seen its value surge over the last few years.
But with its recent rise, the price of a crypto has increased by an average of more than 30 per cent.
So what is a crypto investor to do when their cryptocurrency’s value has increased more than 40 per cent in the past five years?
Crypto investor Simon Biddle says they should hold their cryptocurrency and see what happens.
“I have to say I am a bit more cautious about what I am buying,” he says.
“Because it could be that the crypto bubble is just getting bigger and bigger.”
Simon Biddles Crypto Bubble The rise in the value of crypto has been fuelled by the digital currency’s increasing popularity.
While the amount of crypto that is circulating on the internet has been increasing, the amount that is being exchanged has been steadily declining.
Crypto has experienced a rapid rise in popularity since its creation in 2013, according to CoinMarketCap.com.
“We have seen a massive growth in the crypto market over the past couple of years, and this has helped to drive the price up by almost 50 per cent,” Mr Biddle explains.
“And it is a very high price for a currency that is relatively new and untested.”
Simon has been buying crypto for about two years now, but has not taken the time to diversify his investments.
He has been keeping a close eye on the market, and has not been able to find any other crypto-related stocks that he is interested in.
He says he has been focusing on crypto investments that are relatively stable and offer decent returns.
“The more stable you are, the less you have to worry about volatility and the more you can focus on the business you are investing in,” he explains.
Simon says he is looking for a stable investment that has a solid return and has some of the characteristics that he would look for in a stock market investment.
He also recommends looking at some of his favourite crypto-focused companies, like Crypto.io, and buying in at a lower price.
“For the most part, they are very high-quality stocks that have high returns,” he advises.
Simon recommends that you hold crypto in a minimum of $20,000 and invest between $100 and $150,000 each year.
He is not recommending investing in cryptocurrencies as an investment for a lifetime.
“It’s not something that you should invest for ever, it’s something that should only be used for short-term periods, and I wouldn’t recommend doing it for years,” he adds.
“If you buy in, I don’t see any reason why you shouldn’t be able to buy a few coins for a few years.”
Read more: What is a Crypto Bubble?