Bitcoin is on fire. If you’re new to crypto, read our tips before you invest

Key Points

  • Bitcoin has surged past $100,000, with a 160% increase in value over the last year.
  • Crypto markets are still largely unregulated and highly volatile, making them a risky investment.
  • Experts suggest that investors should diversify their crypto holdings and understand the risks involved.
  • President Trump's support is seen as a catalyst for mainstream adoption of cryptocurrencies.

Summary

Bitcoin has experienced a significant resurgence, now trading above $100,000, marking a 160% increase over the past year. This surge is attributed in part to President Donald Trump's vocal support, which has sparked optimism about 2025 being a breakout year for digital currencies. Despite the impressive growth, the crypto market remains a high-risk investment due to its volatility and light regulation. Scott Shapiro from Coinbase advises that ignoring crypto could lead to regret as the financial world evolves. However, Ariel Zetlin-Jones from Carnegie Mellon University warns of the risks, suggesting that while adding crypto to a portfolio isn't a bad idea, understanding these risks is crucial. The article provides four tips for responsible crypto investing: thorough research, acknowledging market volatility, diversifying investments, and weighing risks against potential rewards. Despite the potential for high returns, the crypto market's lack of consumer protections and its susceptibility to scams are significant concerns. The Trump administration's pro-crypto stance might lead to clearer regulations, potentially fueling further growth in the sector.

yahoo
January 24, 2025
Crypto
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