5 min read

The Cryptocurrency Boom: To take the plunge or not?

Understanding Take-Off and the Best Management Applications

In the world of modern finance, cryptocurrencies have emerged as a dominant force, generating unprecedented interest and capturing the imagination of investors around the world. In recent times, we've seen a dramatic surge in cryptocurrency prices, and many people are wondering why. In this article, we'll explore the reasons for this surge and also look at the best apps available for managing these digital assets.

Why are cryptocurrencies soaring?

Growing Adoption: The growing adoption of cryptocurrencies by businesses, financial institutions and even governments has played a major role in the recent price surge. High-profile companies such as Tesla and PayPal have announced that they accept payments in Bitcoin, boosting the credibility and general acceptance of cryptocurrencies.
Economic Uncertainty: Global economic uncertainty, exacerbated by the COVID-19 pandemic, has led many investors to seek alternative value havens. Cryptocurrencies, as decentralised assets that are independent of traditional monetary policies, have attracted the attention of investors looking to diversify their portfolios and hedge against potential inflation.
Institutionalisation: The entry of major financial institutions into the cryptocurrency market has injected considerable capital and increased the legitimacy of these assets. Companies such as MicroStrategy and Square have invested heavily in Bitcoin, while asset management firms such as Grayscale have launched funds specifically dedicated to cryptocurrencies, paving the way for wider institutional adoption.
Halving: Regular halvings, a pre-programmed event in the Bitcoin protocol, have a significant impact on the supply of this cryptocurrency. These events halve the miners' reward for each block added to the blockchain, which has historically led to an increase in demand and the price of Bitcoin.
FOMO (Fear Of Missing Out): Finally, FOMO sentiment has played an important role in the recent price surge. As investors see cryptocurrency prices soar, many fear they will miss out on the opportunity to make significant gains, fuelling a cycle of rising prices.

Here are some of the cryptocurrencies that have historically generated significant returns for investors:

Bitcoin (BTC): The first and best-known cryptocurrency, Bitcoin has experienced spectacular growth since its inception in 2009, although it is also subject to high volatility.
Ethereum (ETH): Ethereum is a blockchain platform that supports smart contracts and decentralised applications (dApps). Its native token, Ether, is the second-largest cryptocurrency in terms of market capitalisation.
Binance Coin (BNB): Binance Coin is the native token of the Binance cryptocurrency exchange platform. It has experienced strong growth due to its use on the platform and its integration into various products and services in the Binance ecosystem.
Cardano (ADA): Cardano is a blockchain platform that focuses on security and scalability. Its ADA token has attracted the attention of investors because of its strong development team and promising technological prospects.
Solana (SOL): Solana is a high-performance blockchain designed for decentralised applications and decentralised financial markets (DeFi). Its SOL token has seen strong growth due to the increasing adoption of the Solana blockchain.

It is important to note that the cryptocurrency market is highly speculative and volatile. Investments in cryptocurrencies carry significant risks. What's more, a cryptocurrency's past profitability is no guarantee of its future profitability.

The Best Cryptocurrency Management Applications

Now that we've explored the reasons behind the recent surge in cryptocurrency prices, it's time to discover the best apps available for managing these digital assets. Here's a list of the most popular apps:

Coinbase: Coinbase is one of the world's most popular cryptocurrency exchange platforms. As well as allowing the buying, selling and secure storage of various cryptocurrencies, Coinbase also offers a range of advanced features for experienced investors.
Binance: Binance is another leading cryptocurrency exchange platform, offering a wide range of trading pairs and competitive fees. In addition to its user-friendly interface, Binance also offers features such as staking and margin trading.
Crypto.com : This app offers a multitude of services, from buying and selling cryptocurrencies to crypto debit cards, which allow users to spend their cryptocurrencies like fiat money.
BlockFi: BlockFi offers users the opportunity to earn interest on their cryptocurrencies, as well as loans secured against those assets. It's an attractive option for those looking to maximise their returns while retaining access to their assets.
Ledger Nano S/X: For those who prefer a more secure approach, hardware wallets like the Ledger Nano S or Ledger Nano X offer offline storage of cryptocurrencies, protecting assets from potential hackers.

Cryptocurrencies have several factors that could potentially send them soaring:

Growing adoption: More and more businesses, financial institutions and individuals are adopting cryptocurrencies, increasing their legitimacy and usefulness in the global economy.
Technological development: Technological advances in blockchain and cryptocurrencies are improving their security, efficiency and user-friendliness, which could encourage more people to use them.
Volatility in traditional currencies: Global economic uncertainties and government monetary policies may lead to increased volatility in traditional currencies, which could prompt investors to turn to assets such as cryptocurrencies to diversify their portfolios.
Media influence and public hype: The media and social networks have a significant impact on the perception and adoption of cryptocurrencies. Media hype or increased public interest can lead to increased demand and, consequently, higher prices.

However, it is important to note that cryptocurrencies are extremely volatile and their value can fluctuate significantly in a very short space of time. Investing in cryptocurrencies therefore involves a high level of risk and it is crucial to exercise caution and due diligence before making any investment decisions.

When it comes to whether it's the right time to buy cryptocurrencies, it depends on many factors, including your risk tolerance, investment goals and time horizon.

In conclusion, the recent surge in cryptocurrency prices can be attributed to a combination of factors, including growing adoption, widespread economic uncertainty, increased institutionalisation, regular halvings and FOMO sentiment. For those looking to invest in these digital assets, there are a multitude of apps available to safely manage and trade cryptocurrencies. Whether you're a novice or experienced investor, it's crucial to do your own research and understand the risks associated with this volatile market.

Start slowly by investing what you can afford to lose.

50 € , 100 € or more !!! The important thing is to familiarise yourself with this new tool.

Avoid trading and speculation. The easiest thing to do is to buy well-known cryptos (such as Bitcoin, Etherum, ....) and wait. Sometimes they go down, but don't panic! They will then rise again, and very often by more than the fall. If you want to diversify, take some XRP and Cardano too (crypos that are likely to go up in a few months' time).

Last tip: Try several sites by paying the same amount and compare your losses and gains depending on the cryptos chosen (example €100 on crypto.com, €100 on Etoro and €100 on Binance)