Do you believe the hype? The highs and lows of cryptocurrencies have been making the headlines over the last few years, but are they all they’re cracked up to be? Here we look at why the cryptocurrency is so popular, how you can get involved and how AI can help you grow your portfolio.
Why The Sudden Explosion In The Number Of Holders Of Crypto?
Crypto was born out of necessity as there was a growing demand for a digital currency that was decentralized and not controlled by any government. If experts are to be believed, cryptocurrencies could overhaul the financial markets and even become the global base currency.
In recent years, the number of crypto holders has been “mooning”, which means it has hit all-time highs. This is mainly due to the launch of cryptocurrency exchanges, such as Coinbase, which made the purchase, trading, and selling of crypto much more accessible.
So far, cryptocurrency has followed cycles due to the ‘halving’ of the most popular crypto Bitcoin, as every four years, the reward Bitcoin provides to its miners is halved.
This dramatically increases the value, as the amount of Bitcoin mined is reduced. If you think of it in terms of gold, and every four years half of the mines closed, it gives you an idea of why the value increases. The next halving is due in 2024, so get ready for the next bull run!
Looking To Get In On The Action? Here Is What You Need To Know
There are a plethora of cryptocurrency exchanges to choose from, you just need to do a little research and find the best one for you.
Make sure you check the security of the site, how much you will pay in fees, and how easy it is for you to use. Two good examples of exchanges for beginners are Coinbase and eToro.
Now, it is time to start trading. Be sure to only invest what you can afford to lose and do some research before selecting which cryptocurrencies are for you.
Most successful traders have a portfolio, they don’t put all their eggs in one basket. They may invest around 70% into ‘safe’ currencies such as Bitcoin or Ethereum, and 30% into more volatile currencies.
How You Can Use AI Or Automated Crypto Trading.
You cannot monitor your portfolio 24 hours a day (unless you don’t sleep!), which is where automated crypto trading comes in. Artificial intelligence software can help you reduce the burden of both monitoring and research, as it can use historical data to develop strategies and predict future moves in the market.
AI can also eliminate human error and process vast amounts of data quicker and more efficiently than you, helping to make planning, learning, and problem-solving easier. It can also help remove human emotions from trading and provide a more analytical perspective.
So, do some research on which exchange is best for you, and which coins would suit your portfolio, and consider getting a helping hand from AI.
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