Cryptocurrencies such as Bitcoin (BTC) are rapidly gaining popularity, but some investors may still be trying to determine whether crypto is a good opportunity or a risk they’d rather not take.
Opinions about cryptocurrencies may vary widely, but there’s no denying that crypto assets are in widespread demand from individual and institutional investors alike, and they are becoming more closely correlated with the movements of mainstream indexes.
Bitcoin’s share of the total crypto market is roughly 43%, making it the most well-known and widely owned cryptocurrency, but the crypto universe is vast. More than 17,900 cryptocurrencies are available to trade, with a global crypto market cap of about $1.9 trillion. In 2021 alone, the crypto sector’s market cap grew by 187.5%, according to the World Economic Forum.
The cryptocurrency market reaches beyond the coins that are viewed as digital money to include blockchain investments, such as Ethereum (ETH), Polygon (MATIC) and Cardano (ADA), which provide networks for applications to be built on their platforms.
Bitcoin’s price has dropped about 11% for the year, but some alternative cryptocurrencies have outperformed. For example, the price of smart contract altcoins Solana (SOL) and Terra (LUNA) are up about 660% and 1,600% for the year, respectively.
Font / Read more: