Is Bitcoin The Best Investment For 2020?Currency exchange trading is steadily gaining popularity. The year also saw: big companies roll out big products, like Bakkt and its futures products; currency crises in Latin America and increased Sino-U.S. trade relations driving global discussions around BTC's potentially blooming status as a safe haven asset; a tipping point reached in the rise of pro-Bitcoin politicians; satoshi ” ossified into the English language itself; and Bitcoin's second-layer scaling solution, Lightning, continues to mature.
Particularly as the cryptocurrency boom swept up a number of digital currencies into record-high prices around the end of 2017, news from the digital currency sphere could prompt investors to make quick decisions, sending the price of bitcoin upward or downward quickly.
Due to how volatile Bitcoin is, market price retraced as much as 80% down to $3,000 where it eventually bottomed, leaving many wondering вЂњwill Bitcoin go up in value ever again?вЂќ Others knew Bitcoin will rise again, and opened long positions at the bear market bottom.
With financial crises everywhere and the inflation rate rising rapidly, you will one day find that all those dollars you saved don't have much buying power in a decade or so. The wise thing is to invest them in something that will not depreciate over time.
In January 2018, XLM hit an all-time high of $0.94. Heading into 2020, XLM is priced at around $0.06. The fast payment system and rock-solid development team could continue to build momentum for XLM moving forward, although XLM continues to face competition from every other digital currency that emphasizes high-speed transactions.
Another risk is knowledge in the market as success in trading "Contract for differences" depends on background, dedication, desire and motivation; an example of why it is central knowing the market and knowing how the price rate increase and decrease are the EURUSD and the USDCHF; the two currency pairs often move in reverse direction; if the EURUSD is increasing is the USDCHF often decreasing and if the EURUSD is decreasing is the USDCHF often increasing.
The co-founder of BTCC, a HK-based crypto exchange, Lee who has weathered two previous storms that saw bitcoin fell from the all-time high of $1,200 in 2013 to just $150 in 2015 believes that the current bear market is also reflecting this previous pattern.
These tools may seem complicated and confusing for a new investor but with time, they get to learn and appreciate how efficient they make the market be and increasing the chances of making a profit while reducing the magnitude of risks involved in foreign currency trading.