The coronavirus pandemic continues to affect all walks of life, with everyone struggling to cope with what this means for what we think of as a ‘normal’ way of life. Schools are suspended, most businesses closed until further notice, and governments all around the world are looking to both mitigate the spread while also lessening the fallout from the disease.
Within the financial world, Yahoo! Finance reports that insiders expect the global stock market to enter into a deep recession. This means that some are now looking to cryptocurrency as an alternative trading method, however crypto remains as volatile as ever. News outlets have either been praising cryptocurrencies rise or predicting its fall, and this news seems to change by the hour.
The rise of cryptocurrency
As of March 24, CNBC reports that the crypto prices have risen to over £12 billion, which means their total value now amounts to about £155 billion. Bitcoin was up over 10%, while other cryptocurrencies such as Ethereum and XRP also rose. Cryptocurrency exchange expert Vijay Ayyar told the news outlet that investors are seeing this bullish rise as a positive, with investors gaining confidence and potentially seeing cryptocurrency as a safe haven amidst all the global stock market fears.
This rise comes hot on the heels of cryptocurrency’s rough patch earlier this month. Just 11 days prior to this rise, cryptocurrency prices tanked as investors were trying to quickly sell off their stocks due to the coronavirus panic. Financial insiders used this time to bemoan cryptocurrency’s role as a safe haven in the face of a global economic downturn, but this recent growth means that cryptocurrency may indeed be the economic haven that traders are searching for.
What this means for traders
The fall and subsequent rise of cryptocurrency at this time thus begs the question: What does this mean for traders? While cryptocurrency’s volatility is what makes it exciting, beginner traders who are safely at home can use this time to better monitor its conditions. Plus500’s trading platform was built to help mitigate cryptocurrency’s extreme volatility by alerting users of any sudden price increases and drops. While no one will ever have a concrete hold on how cryptocurrency stocks move, such tools allow traders to manage their profits and losses. After all, understanding how to manage your risk is an extremely important lesson when it comes to cryptocurrency trading.
In line with this, Forekast News emphasises the growing number of ordinary people who are now trying their hand at cryptocurrency investments. Tech writer and cryptocurrency trader Sumit Gupta suggests that while cryptocurrency does benefit large financial institutions, its decentralised nature also means that all kinds of traders can get in. This inclusion can then increase the purchasing power of the ordinary citizen.
Our post on decentralised hubs in the Isle of Wight speaks to just how far this tech has the potential to grow. As many people across the globe brace themselves for the virus’ worst effects, financial insiders will continue to monitor cryptocurrency’s growth amidst all the panic.