The gold standard of digital currencies
Ethereum, Bitcoin, Ripple, Litecoin, Dogecoin, Polkadot, Shiba Inu… There are thousands of cryptocurrencies today. An ever-growing sector in which, as everyone knows, Bitcoin (BTC) remains the most famous asset. And the most popular. So successful that since its inception in 2008, it has been the gold standard for digital currencies, with most of them priced relative to its own. That’s how the oldest virtual currency convinces many investors to favor it over others, seeing it as safer — if anything, less risky — than newer assets. So one thing is for sure, Bitcoin is a good introduction when you are first thinking about investing in these cryptocurrencies. But not only.
If for two years price jumps were followed by the most spectacular falls, which provoked criticism from many specialists who considered this too dangerous volatility, cryptocurrencies eventually calmed down. And imposing little by little. Better: More and more people are predicting that BTC will soon become a safe haven. So Bitcoin is tempting. Including those who have resolutely resisted him so far. As evidence, among his fiercest critics for a long time was the American investment fund JP Morgan. We will remind, in particular, that in 2017, Jamie Dimon, CEO of JP Morgan Chase, called it a “fraud” and even threatened to fire any employee who came to trade it. Four years later, the course changed: in July 2021, JP Morgan became the first major US bank to offer investments in BTC and other cryptocurrencies. An irrepressible sign of the times, which further confirms the process of normalization. And, therefore, the benefits of such an investment, which, if kept in mind, can only bear fruit. Thus, Bitcoin is unique in that its emission is limited to 21 million BTC. Given the very likely increase in demand, it must become scarce, which will inevitably cause its value to rise. Recently, the same JP Morgan valued it in the long term at about… $150,000!
Caveat: While the prospects for long-term returns are strong, let’s not forget that the market is still immature. To invest in Bitcoins, you will therefore be holding an asset that is considered very risky. Therefore, advice: choose diversification of your investments. A smart decision, as you will not only limit your risks, but also compensate your assets with cryptocurrency, which are certainly safer, but offer lower returns. Therefore, many experts advise investing about 10% of your asset portfolio if you decide to limit yourself to bitcoins, and a little more if you want to be interested in other cryptocurrencies at the same time. In any case, keep in mind that specialized trading platforms exist to advise you and help you buy, sell and manage your (future) portfolio. Among them, for example, Litebit offers more than 70 virtual currencies. The Rotterdam-based platform has been awarded the “Best Crypto Broker” award several times. It is one of the safest and most convenient platforms in Europe in this sector. Two values that in the digital world have absolutely nothing optional!