With cryptocurrency broadly achieving stability and smaller lesser-known coins increasing in value, now is arguably a good time to get on board and invest. Many Europeans are trading, and there are key facts to be aware of if you live in a European country and want to get involved.
As with any other type of investment, cryptocurrency can gain and lose value, so no investment is guaranteed to give a good return, and there is always an element of risk.
If you want more information on cryptocurrency trading, current exchange rates, news from the crypto world, then the crypto exchange Coinmate is a good place to start. Coinmate is a European trading platform with long industry experience, with low fees and excellent Trustpilot reviews.
Influencers on cryptocurrency
Cryptocurrency has traditionally been volatile. Bitcoin, the most famous cryptocurrency, has seen dramatic price highs and lows over the years. So what are key factors that affect the price:
- Media Coverage – Depending on whether the currency is receiving favorable or adverse coverage, the price changes accordingly. Favorable reporting leads to new traders getting involved driving up the value of crypto. Conversely, negative coverage can lead to a selling frenzy driving down the value.
- Regulation – When the ‘R’ word raises its ugly head, the value of crypto changes. Often, this curtails what traders can do, and as such, it loses its investment appeal.
- Volatile – Typically, given that it is not backed or regulated by a central bank, the value of crypto is more volatile than fiat currencies. An interesting feature of crypto is that different coin values rise and fall in tandem.
- Coin Specific influencers – Individual currencies can be influenced by factors specific to them. Security issues and the financial sector boosts can influence the price of one particular cryptocurrency considerably.
Your average European investor
Switzerland is the home of cryptocurrency investment having more investors in the market than any other country in the continent. By city, however, London has more crypto investors than any other European city.
Given the nature of crypto trading, most investors are hiding their online trading using VPNs and private browsing. An appealing factor of cryptocurrency is the anonymity it provides. Although privacy was designed into crypto, it seems most investors are taking extra precautions.
Most investors fit the demographic of male, under 35 but women are also in on the crypto boom, accounting for 22% of the gender split.
In 2018, the European Union published a document entitled, cryptocurrencies and blockchain. The document discussed the currency in legal terms and identified areas that could be exploited by criminals. This included using the currency for a basis of money laundering and tax evasion.
Although regulation tends to lead to devaluation, it can also give trading the currency more credibility.
Given the current value of Bitcoin, it is arguable this is the case here.
Cryptocurrency is established as a viable trade. The market is not as stable as others, but going forward, it probably has a longer future than other markets.
It is a best practice to use sites such as Coinmate to make your trades. They are trusted and secure, and you can reap the benefits of anonymity as well as valuable up-to-the-minute in market information.