Cryptocurrencies

Bitcoin's unstoppable climb since its big crash in March

Since its third halving, and in fact somewhat before when this event was already felt in the environment, the cryptocurrency Reina seems to have accentuated her growth expectations. While world economies watch in anguish the suffering that crisis caused by Covid-19 generates in its markets, Bitcoin has continued with its expected rise - a trail that the rest of the cryptocurrencies that imitate its behavior usually follow.

Even though it is an extremely volatile asset, the pandemic interest in digital currencies appears to have increased and the number of investors buying bitcoin appears to have increased exponentially during the coronavirus crisis. It seems that investors might have considered it as a investment option when looking for a safe haven value, as gold has traditionally been in times of crisis and insecurity.

What factors impact the price of Bitcoin?

As it is a decentralized asset, it is not dependent on the decisions that a government or bank can make, and therefore, in principle, crises or geopolitical conflicts should not influence its price so much, unlike what we have seen happen. with assets such as oil, which at its worst was trading negatively, since to its already precarious situation caused by confinement and mobility restriction was added the inability of the countries OPEC members and Russia to reach an agreement regarding the restriction on production.

before outbreaks of coronavirus cases that financial markets They suffer the consequences again while traditional safe haven assets such as gold are once again proposed as the saving option. And in the opinion of some the same thing happens with the cryptocurrencies, , or at least some of them, which, since they are not as exposed to damage as traditional assets, seem to be becoming another equally valid option to safeguard investments from the consequences that inflation could bring.

Bitcoin shows that its value has increased from more than $9.000 in May to more than $11.600 today, confirming its positive growth. However, a few days ago it managed to surpass the $12.000 barrier and was unable to consolidate, which creates some uncertainty regarding the trend that will follow soon.

Online buying and selling of cryptocurrencies

However, if we are interested in the world of cryptocurrencies before launching into investment, whether buying and selling or online trading de bitcoin with CFDs, it is essential to emphasize that despite its positive evolution we are talking about a particularly volatile asset, as are the rest of the cryptocurrencies, except stablecoins whose value is associated with another asset or currency and therefore volatility affects them to a lesser extent. On the other hand, we must know that the buying and selling of cryptocurrencies has nothing to do with their online trading. While the sale will be carried out in some Trusted exchange To create a cryptocurrency reserve, online trading will be carried out on the platform of an online broker that the trader has previously analyzed, and no cryptocurrency will be owned, since CFDs involve operating with the rises and falls of the prices of an asset. , don't buy them.

Furthermore, it must be noted that if buy cryptocurrencies There is a risk that they will be devalued and end up losing money or that they will be stolen through hacking, while in online trading the risk is in the leverage used to carry out the operations. Leverage is defined as the relationship between the trader's own capital and funds lent by the broker to increase the former's investment capacity. The capital contributed by the trader will be the one that covers the profits and losses of the total operation, therefore it is warned that leverage can cause the trader to quickly lose their capital or more, that is, accumulate debt, this could happen if not Trade with a broker that applies protection against negative balances in the accounts of its clients who qualify as retail, since professional traders are usually excluded from these protection measures.

It is essential to know very well how this market works and to previously carry out whatever analysis is necessary, being especially useful to carry out both a technical and a fundamental analysis to gather as much information as possible about the reality of the cryptocurrency in question and the situation of the markets.

While large companies worldwide have suffered million-dollar losses, the capitalization of Bitcoin market It already exceeds 200 billion dollars, surpassing some of the main companies listed on the Stock Market.

In the XNUMXst century the technology advances by leaps and bounds and allows us to carry out countless actions through a simple mobile device and a internet. The use of cash is considered almost obsolete and it seems that technological development will cause its gradual disappearance, giving way to a society without physical money.