Over the past few months, this question has been on the minds of the cryptocurrency world. Among other legitimate questions, we mainly find the following: can this kind of investment still be trusted? What are the forecasts for the coming months? What if the value of the cryptocurrency collapses again? This article is not meant to be exhaustive as it deals with this topic in a general way. However, we will try to answer the questions of the Internet users with the various items that we have.
Is it the right time to invest in cryptocurrency?
Of course, the answer largely depends on the evolution of financial markets and global economic conditions. According to a large number of forecasts, experts expect a slight recovery in the stock markets at the beginning of 2024. This means that investors may be tempted to buy, for example, Ethereum or Ripple due to the boom that these cryptocurrencies provide. However, it is important to note that these forecasts are very fragile and that further price declines are possible. In fact, this is an extremely volatile market. Before inflation, during and after it, the investor should, should and will have to realize that he is swimming in troubled waters.
Is investing in cryptocurrencies still trustworthy?
Being a very speculative market, investing in cryptocurrencies remains quite risky for now. So there is no right or wrong answer to the question posed in the title. The only advice we can give is to study the market well before buying bitcoin or any rising virtual currency. Another tip: never put all your eggs in one basket. Thus, in the event of a price drop, you will not lose all your savings. Thus, ideally, its amount should be distributed among various dynamically developing sectors, but not more than 30% of the capital. This is the general rule of investing, no matter what area you want to develop.
What are the forecasts for the coming months?
As we have already mentioned, forecasts remain quite fragile. According to a study by brokerage firm eToro, institutional investors expect the price of bitcoin to rise by the end of 2023 or early 2024. However, these estimates should be treated with a grain of salt as they are based on assumptions. . eToro has indeed seen an increase in institutional investor account openings in recent months. In particular, this is due to the recent entry into force of the US tax legislation on cryptocurrencies, which allowed companies to invest in this market without being subject to excessive taxes. To be continued…
What if the cryptocurrency price drops again?
If the cryptocurrency price crashes again, there are several possible solutions. The first is to sell all your cryptocurrencies and wait for the market to stabilize before picking up. The second is to invest in another virtual currency to take advantage of its rising price. This decision is more risky as it relies on certain knowledge of the financial markets. Then it is best to contact a specialist in this field who will accompany you in making this very important decision.