Due to the absence of regulations governing cryptocurrencies, they are consequently volatile currencies, and therefore making an investment in cryptocurrencies could lead to both good earnings, but also capital losses. In general, many companies still do not accept cryptocurrencies, mainly due to the lack of regulation. Specifically for Bitcoins there is a predetermined maximum number of digital coins that can be generated, and once this number is reached it will no longer be possible to produce new digital currencies. Its unpredictable nature is what attracts most investors, traders. Today cryptocurrencies have become popular and conventional investment options for traders. The first cryptocurrency to be issued was Bitcoin in 2009 by Satoshi Nakamoto who still keeps his true identity secret today. To date, Bitcoins remain the reference model for all other digital currencies. Following the emergence of Bitcoin, other digital currencies have been created, such as Litecoin, Ripple, Ethereum, and many more. Cryptocurrencies are extremely volatile and can be a very affordable solution for any investment portfolio. They are just electronic currencies, that is, they are digital assets that remain in the form of data. The technology behind cryptocurrencies largely controls its value, and determines the coin's identification and transfer protocol. Cryptocurrencies are considered by many investors to be the currency of the future, and as more and more people are showing greater interest, and consequently the price increases. By operating with Bitcoins, you can trade on the price changes of the cryptocurrency, which is not physically purchased. How to invest and earn with cryptocurrencies One way to make money with cryptocurrencies is to do online trading. There are several characteristics of digital currencies that have attracted investors, among which there is, for example, that cryptocurrencies are in a sense finite goods, that is, there is a limit on the amount available and therefore over time the their value may increase; and they are also decentralized digital currencies where governments cannot intervene and banks cannot intervene on the account. Transactions made with cryptocurrencies are cheaper than transactions made with traditional currencies through the banking system. In addition, privacy and anonymity are guaranteed for users. One aspect that should be kept in mind, however, is that this type of currency has a high volatility. The value of the cryptocurrency is particularly affected by market demand. However, it has been shown that investing in cryptocurrencies represents a profitable way of earning, and for this reason they are gaining the trust of investors.
The Volatility of Cryptocurrencies