Without a doubt, 2020 is not like any other year for investors for reasons like the global spread of covid19 and the impact it has had on the world economy at large. The global economy continues to face uncertainty as a result of the covid19 pandemic that has seen the closure of many businesses and job loss. The world of investment is also facing its fair share of challenges and investors are having a hard time making decisions in the more than ever-volatile market.
The question remains, are there any favorable investment markets left unaffected by the pandemic spread? The answer to that question is affirmative because even as covid19 continues to be a global threat, there are markets that are making a killing out of the situation. According to this CNBC report, for instance, the US stocks are still on the rise despite a daily increase in covid19 victim numbers. About $5 trillion in market funds currently defines the stock market.
Cryptocurrency on the other hand saw some rough few months into the covid19 pandemic whereby Bitcoin, the largest digital currency experienced notable fluctuations in market value just like any other currency pair on the market. There was a similar drop in other digital currencies as well (Ethereum. Bitcoin, Ripple, etc.)
These changes had investment analysts doubt whether cryptocurrency trade would weather the covid19 storm as it does in other harsh economic situations. However, this does not imply that all is lost in the cryptocurrency market. It could still be an option if you are looking at it as an investment channel.
To Invest or Not To Invest?
Understandably, not all individuals take the cryptocurrency trade lightly, as some deem it too risky or more like committing an investment suicide. Since its inception, cryptocurrency trading has seen all sorts of theories surround it, and most of them are dismissed. What most people do not know is that as long as they engage in trusted crypto deals, the rewards are quite good.
You also need to understand that there are several cryptocurrencies that are traded in the crypto market. Additionally, the cryptocurrencies have different market values with Bitcoin carrying the mantle.
All you need to do is get a clear grip on how the crypto market is currently operating, across all digital currencies, so that you can make informed choices. The truth is that there is so much to learn (mining, blockchain, etc.) for a better understanding of how cryptocurrency works and you should task yourself to look for additional information sources.
Back to whether cryptocurrency stands as a viable option in 2020 investments, it all goes back to how the crypto market has stood the test of time since its inception.
A number of reasons explain why you should give cryptocurrency the benefit of doubt in 2020.
One of the main reasons being bitcoin halving. Bitcoin halving happened back in May, and as usual, the value of the bitcoin keeps rising after every halving. This can also be explained by its scarcity nature (bitcoin has a limit of 21 million coins out of which 13 are already in circulation) as time goes by. The fact that Bitcoin operates as the largest cryptocurrency given its current market value (reportedly $117.81 value as of 3rd August 2020) makes it a hot cake.
Another key point that makes cryptocurrency investment ideal in 2020 is the fact that it guarantees security. It is very hard to intercept the blockchain technology (has strong encryption techniques) during the transfer of coins from one wallet to another. Therefore, with this form of security, you are assured that your investment will stay put without worries of any security breaches.
You could also be enjoying impressive returns if you invest wisely in cryptocurrency. But do not forget that investment strategy is key here. As much as the cryptomarket is as volatile as any other investment market, it has proved to be a profitable venture for the few years it has been around.