The reality of cryptocurrency is that it is more volatile than most investments. To some, that can be a deterrent, but to others, it offers a great opportunity for some smart trading to bring great returns.
The Volta Wallet is designed especially for those who want to trade in a way that suits their own strategy. It offers the possibility of up to 90,000 trading pairs. While nobody would have that many active pairs at once or even close to it (who on earth could keep tabs on so many?), the fact that this is possible highlights just how many options you have.
As a trader, that means you have a vast sea of crypto to fish in, and you already have a bigger boat if you start coming up against anything big that may cause a serious peril.
Is Bitcoin’s ‘Trump Boom’ Over?
Bitcoin has been the most prominent of cryptocurrencies, bringing big returns for investors over the long run. This made it a natural candidate to be the focus of the establishment of a national strategic crypto reserve for the United States by the new Trump administration, which took office with a programme that included a very crypto-friendly approach.
This action initially appeared to be highly beneficial for Bitcoin values as it soared above $100,000 for the first time. However, it looks as though the currency could be in the early stages of a significant downturn.
Weeks after hitting a new all-time high of more than $125,000, Bitcoin has seen a plunge in value to around $90,000, its lowest level in a year. As the Independent reports, this and other falling major currencies represent a collective loss of over $1 trillion across the market since early October.
This raises fears of a sustained bear market with continued steep falls, although, conversely, there is some speculation about a “Santa rally”. This will not be because an old man comes down the chimney to deliver the gift of a price boost, but because those with a nose (red or not) for an opportunity to buy low and make gains later may pounce.
Why May Bitcoin Still Be A Good Long-Term Investment?
Some see the situation with Bitcoin as a case of déjà vu. Speaking to the paper, investment manager at Xapo Bank, Gadi Chait, said those who aim at short-term trades or are new to crypto trading might be unsettled, but others will not. “Those who have been in the space for years recognise this pattern: we’ve seen it before, and we’ll see it again.” He remarked.
Mr Chait suggested that key factors in the recent price falls have included traders reducing their market exposure and some cashing in their profits after the Bitcoin price rises of recent months.
If history is repeating itself, the 25 per cent fall seen over recent weeks could extend to a plunge of around 75 per cent before the currency rallies, with the lesson of history being that the subsequent recovery will take Bitcoin to new highs.
Indeed, this is just what could make a Santa rally possible as investors see a potential opportunity to buy low and enjoy the longer-term benefits. Nigel Green, the chief executive of financial advisory firm deVere Group, commented: “Every major correction in Bitcoin’s history has opened the door to substantial upside for patient investors. This cycle is likely to be no exception.”
For investors, the decisions on what to do with any Bitcoins they hold may depend on a lot of issues. One is whether the priority is short-term or long-term gains, with the former making selling up and looking to find a rising currency elsewhere the obvious step to take.
What Emerging Cryptocurrencies Might Be The Next Big Thing?
That, however, may require looking broadly across the marketplace, albeit not necessarily over all the thousands of possibilities that provide those 90,000 pairing options.
One reason for this, as mentioned above, is that Bitcoin has not been the only prominent cryptocurrency to suffer significant falls recently, with Ethereum and Solana also plummeting.
Among the alternative options will be to look for the ‘next big thing’ in crypto. Among those that have been tipped are:
· Digitap
· Sei
· Brett
· Sudeng
Of course, it is not certain which of these will turn out to be a success. Perhaps all will, or maybe none. That may prompt some to take a chance on one of them, while others will hedge and use lots of pairing to minimise any losses while hopefully making gains.
Uncertainty and volatility are a fact of life in crypto. For every investor, that means the choice is there on whether to take a chance, or hope that history repeats itself for established currencies like Bitcoin.