Cryptocurrency, a virtual or digitized currency, is practically impossible to double-spend or counterfeit. This is because it is safeguarded by cryptography. A unique characteristic of cryptocurrency is that it is not issued by a central authority. Thus, it is theoretically immune to government manipulation or interference.
Bitcoin is the most valuable and popular form of cryptocurrency. It was introduced to the public in 2009. Right now, there are about 19 million cryptocurrencies in circulation with a market cap of $1 trillion.
According to the latest research, the cryptocurrency market is expected to become volatile – liable to change abnormally and rapidly – in 2024. The following article specifies if the claim is true. It also outlines the basic rules investors must adhere to along with other necessary information.
The Condition of Crypto Market in 2024
If equity investors had a decent time, crypto investors had a wonderful time in 2024. Prices of a few crypto coins increased and churned out unimaginably high returns. You can check the present crypto prices at okx.com.
Even the bluechip cryptos such as Bitcoin rose by 45%. However, the trajectory was not straight. Bitcoin prices touched 51 lakhs in April and dropped down by 50% during May and June. This happened when Elon Musk expressed his concerns about the environment on Twitter and China stifled crypto trading. With panicky investors rushing to sell, the price of many crypto coins tumbled down by 30%.
The buyers came back in September and the price of Bitcoin crossed 54 lakhs in November. It is now fixed at 39 lakhs, which is around 32% higher than what it was at the start of the year.
Expectations in 2024
The future of cryptocurrencies now depends primarily on government policies. The largest crypto market in the world, China, banned nearly all the transactions in September. The top-notch analysts said blockchain technology will receive wide usage and this stance will further separate China from the other locations.
A majority of the governments have developed legislation to control the use and trade of cryptocurrencies. The volatility of these coins is on the rise. It is an amazing method to make money if you are also ready to take the risks involved with it. Also, there are numerous sharks present in the market. They tend to buy a huge amount of coins and then sell them. Selling such a large amount of coins together leads to the fall of that particular coin. There are numerous other factors that contribute to the volatility of the coin.
Fundamental Rules the Investors Must Follow
Now cryptocurrencies are a relatively new investment class with hardly any information in terms of analysis. Anyway, mentioned below are a couple of rules to follow when entering this risky arena.
Always Invest Smaller Amounts
Several cryptocurrencies have surged about 6000% in the last few months. But try not to be swayed by such numbers. Just like in case of any investment, one must try to put only what one can afford to lose. Even people with a high risk appetite must never put more than 10% of their entire portfolio in cryptos.
Opt for Reliable Platforms
Multiple crypto trends are mushrooming each day. Always invest through a reliable platform so that you do not lose your money in case there is a setback. Investing through overseas platforms needs immense compliance on the tax front.
Learn to Accept Excessive Volatility
The crypto market is believed to be a high-risk high-reward game so the investors should be capable of digesting the volatility. As the crash in the month of May showed, a fall of over 80% is a huge possibility. Always remember that a bluechip like Bitcoin went down by 25% from a really high figure. Enter this market only if you can accept the extreme variations.
Never Rely on Tips
The crypto market does not have credible data. Investors need to make decisions based on the unverified information found on social media. A few crypto analysts create groups on WhatsApp with accomplices who take pride for being accurate under all circumstances. These analysts trap the newbie investors by charging a fee as tips. They then use those investors for the pump and dump operations.
Top Cryptocurrencies to Invest in 2024
While Bitcoin will obviously top the list, there are many more cryptocurrencies that people can invest in 2024.
Ethereum
Ethereum is much more than just a cryptocurrency for investors and enthusiasts. It has experienced a phenomenal hike in terms of price. From 2016 to 2024, its price has increased more than about 32000%. According to the analysts, Ethereum or ETH has substantial room for growth, so you may invest in it keeping your long-term goals in mind. It would be great to purchase and hold ETH while your other digital asset is undervalued.
ApeCoin
ApeCoin is another excellent crypto to invest in 2024. Its price increased dramatically within hours after the launch. This cryptocurrency was utilized for making different online purchases. It enables the users to gain access to products from Amazon, EBay, Walmart, etc. The most fascinating part is that ApeCoin users get a two percent discount every time they buy something online.
SOL or Solana
Solana is an open-source project that offers decentralized finance solutions depending on the permission-less nature of blockchain. SOL is that cryptocurrency that supervises all the transactions happening across the Network. It was launched in 2020 and if you would have traded then, you would have made approximately 410000% return. That’s quite impressive, right?
Binance Coin
Binance is believed to be the largest cryptocurrency in the world in terms of the number of users and trading volumes. Binance coins can be used for processing payments and for booking trip arrangements. They can also be exchanged for other crypto assets.
It is true that the crypto market is continuously changing. From the traders’ preferences to the infrastructure – nothing is stable at the moment. A currency can be extremely popular one day and vanish the next. Be careful when making an investment. Opt for something that is a prized asset and would remain the same down the road.
We hope that the following article helped you understand how volatile cryptocurrencies will be in 2024 and how to invest in them.
