The results of this year have not been positive at all for cryptocurrencies, specifically for Bitcoin. Still, everything points to their values taking off the floor they have touched.
Bitcoin has come to be worth almost 50% less than it was worth in December. That is, nearly $21,000 per coin, a value that has made many investors thinks about what to do with their crypto assets. In a desperate wait, both corporate and private investors have preferred to dismiss the option of selling their digital currencies. For more information visit at: bitcoin-motion.de.
It is not easy to know that you lose daily if Bitcoin continues to fall; this characteristic volatility of digital currencies calls into question the potential of the digital financial market, alienating potential investors who contribute to the increase in market capitalization.
Why has the popularity of Bitcoin skyrocketed in the past years?
If there is a feeling that has been mixed with the concept of Bitcoin and cryptocurrencies, it is distrust; for many investors and users of traditional financial instruments, digital currencies were considered pyramids, scams, or used for illicit negotiations. The elements changed after the rise of companies and their opening to electronic commerce and the adoption of digital currencies as a means of payment for the acquisition of goods and services.
Being able to carry out cryptographic operations from the comfort of a Smartphone, in addition to the speed that characterizes it, has allowed more people to make use of these elements of the digital market. The mistrust of these crypto-assets has decreased significantly. Still, the risks that these investments represent are now the greatest fear of people who decide to enter a new digital financial market.
Despite the lack of support and regulation by traditional financial institutions, users have taken it upon themselves to provide the necessary support for cryptocurrencies to position themselves on a very attractive step for many.
The critical question: Store them or sell them?
For many crypto investors, what Bitcoin is going through is quite complicated; some doubts arise regarding disposing or spending the Bitcoin that they have or simply leaving them stored and waiting for the course of the market. There are several ways to dispose of cryptocurrencies in your digital wallets, and these are usually the most common:
- Exchange through platforms: this is usually one of the most common options since users are, known as traders, generally carry out purchase and sale operations of digital assets; it is there where they make use of one of these exchange platforms and execute Bitcoin sales, turning it into traditional and easy-to-use currencies.
- Transfer the Bitcoin to Cold wallets: these wallets are usually hardware where the balances of the digital currencies are stored safely where they are away from hackers and possible fraud; the risk is that the address is lost, and then it cannot be used for digital currencies, something that would be catastrophic.
- Buy goods or services: it is a more comfortable and traditional option, where investors usually acquire goods through cryptocurrencies such as Bitcoin, transforming the investment into a tangible asset or, failing that, into currency.
If the price goes up, it’s best to wait
As mentioned in other publications, it is essential to consider that digital currencieshave well-established financial cycles. Therefore, the phases that make them up are usually relatively straightforward. It may be that currently, with the financial, economic, and geopolitical situations that the traditional market is going through, digital currencies have been significantly affected, causing them to enter multiple bearish phases.
This phase will not last a lifetime; it is where the corrective phase enters. Finally, the trend is assumed and corrected to give the ordinary course to the displacement of the curve where supply and demand flow independently, achieving the desired balance point. Cryptocurrencies are volatile, and it turns out that trends can last for hours, minutes, or perhaps days and weeks.
The impact caused by the bullish trend in Bitcoin is quite positive. However, it creates excellent euphoria that could be counterproductive and take the market to a lower stage than it has previously experienced. That is why when Bitcoin units are stored; it is better to wait for a stable moment to be able to operate. Timely, intelligent, and emotionless decisions are what guarantees success in operations.
Cryptocurrencies are experiencing quite drastic changes, so it is suggested to take the financial market calmly since no specific formula tells us what will happen with the digital market.