Written by MarketBeat Staff
January 11, 2021
An Influx Of Capital Is Driving Cryptocurrency Higher
There is an influx of money to the cryptocurrency market that is driving the entire complex higher. Not only is institutional interest peaking but recognition and use are on the rise as well. With Bitcoin setting new all-time highs 100% above the 2017 highs the number of new Bitcoin millionaires is on the rise too.
But Bitcoin is not the only cryptocurrency on the market today by far. The number of cryptocurrencies on the market has been growing steadily with more than 4,000 listed on Coinmarketcap alone. But that doesn’t mean they are all worth your time. Many if not most will not stand the test of time.
One way to judge the market’s interest in a cryptocurrency is its market performance gains. A cryptocurrency that is gaining in value is certainly one that you may want to own. The better method of judging the market’s interest in a cryptocurrency is the market cap. The cryptocurrency market is worth upwards of $1 trillion and growing, and most of that value is centered in the top seven. Together, the bottom 3,993 odd cryptocurrencies only account for 12% of the market and have yet to prove any lasting value.
Quick Links
Cryptocurrency Is Worth Your Time
We don’t think cryptocurrency needs to be the bulk of your portfolio or even a substantial portion, but it is worth your time. The cryptocurrency is in the early stages of a global transition in finance that will center firmly on blockchain and cryptocurrency technology.
It’s hard to know which cryptocurrency will come out on top but that doesn’t matter. If speculating on the future value of a cryptocurrency isn’t within your risk tolerance there are other avenues to take. The rise of cryptocurrency has also brought a new industry along with it. Defi, or decentralized finance, offers a host of financial solutions that can provide steady, long-term gains for investors.
More Investing Slideshows:
