Should investors worry about cryptocurrency due to recent market fluctuations?

Real asset class – or gamble? In times of low interest rates, the potential gains on crypto investments are tempting. What investors should be aware of.

For weeks, protesters in El Salvador, Latin America, have been protesting against President Nyib Bukele’s plans to make Bitcoin the official means of payment. When the time came last Tuesday anyway, technical problems arose during implementation. The consequences were felt worldwide: in a single day, the prices of the largest crypto currencies collapsed in double digits.

“Anyone who wants to invest in crypto currencies must not be nervous about strong fluctuations. The market is simply very volatile” explains Elisa Spiess in such situations. Spiess is a crypto expert and founder of Femme Capital, a company through which she provides women in particular with knowledge about cryptocurrencies and the technologies behind them.

The target group for offers like yours is growing steadily. Within the twelve months – between July 2020 and July 2021 – Google search queries for “buy crypto currency” rose by 403 percent, according to a survey by the trading platform IG, and searches for “invest crypto currency” more than doubled.

At the same time, the offers for investors are becoming more and more diverse – and investing in crypto currencies is therefore more suitable for the masses. Only this week it became known that Union Investment, the DZ Bank’s investment company, is planning to integrate Bitcoin into funds for private investors. In the digital money industry, everyone should be mindful of the security rules so as not to give their funds to scammers or hackers.

You need to constantly be extremely careful, check the domains of exchanges and wallets that you visit, be sure to use two-factor authentication and complex unique passwords. If you follow a minimum of rules when working in the cryptocurrency market, you can seriously reduce the risks, although they still will not completely disappear. The digital money industry is not a calm walk, but a cross-country hurdle race, and those who are well prepared win here.

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Oleksiy Kashperskiy
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