Investing in virtual money like Bitcoin can be quite hazardous to one’s savings and health, especially if you have no idea what you’re doing. Just look at what happened on Tuesday and Wednesday, when all the cryptocurrencies out there were hit by negative news from Asia.
South Korea is looking to regulate Bitcoin and altcoin trading, as is China. Fears of such regulations convinced many people to sell their holdings, and the sell-off continued for two straight days. Bitcoin prices plunged below $10,000, marking the first time since November that the best-known cryptocurrency in the world sank so low.
But prices are now rebounding, having increased steadily since Wednesday night.
Gains have been minimal for some coins, while others have seen huge improvements. On Thursday morning, Bitcoin and Ethereum were up by around 2.5% each, while Ripple gained 22.09% compared to the previous day. Here’s a look at today’s action, with CoinMarketCap doing the number crunching:
Does that mean the price of Bitcoin and everything else will continue to go up? There’s nothing to guarantee that, just as massive crashes like the one we just witnessed can’t be anticipated. Bitcoin is trading for north of $11,400 right now, which is well below the high of nearly $20,000 hit just before Christmas. However, there’s no right or wrong price for Bitcoin or any other coin. And there’s nothing to guarantee that it’ll stay above the $10,000 mark. Insane volatility means it can all happen in a matter of minutes.
If you’re looking to trade digital currencies, make sure you understand what you’re doing and be ready to deal with massive price swings. It’s also a good idea not to invest all your savings in crypto trading even if you’re incredibly confident in your knowledge of Bitcoin and other altcoins.