Bitcoin may have just entered the investment world's mainstream, topping the $100,000 valuation late Wednesday. The post-election wave of growth in the crypto market continues, fueled by investor enthusiasm for President-elect Donald Trump’s pledge to introduce more crypto-friendly policies. In his second term, the regulatory environment was in place.
Trump has criticized cryptocurrencies in the past, even warning that investing in digital tokens is a “fraud,” but he has since pivoted to his role as a crypto supporter and during his campaign. It has repeatedly pledged to create a friendly space in this area. . His pro-crypto comments include a promise in a keynote speech in July at a crypto conference in Nashville that under his administration, “the rules will hate the industry.'' “It's written by people who love the industry.”
On Wednesday, President Trump made good on that promise, selecting Paul Atkins to head the U.S. Securities and Exchange Commission. Atkins, who served as SEC commissioner from 2002 to 2008, is widely known as a strong supporter of the cryptocurrency market.
President Trump highlighted Atkins' stance on digital currencies in Wednesday's selection announcement posted on Truth Social.
“Paul has proven to be a leader in common sense regulation,” President Trump wrote. “He believes in the promise of robust, innovative capital markets that meet the needs of investors and provide the capital to make our economy the best in the world. We also recognize that innovation is essential to making America greater than ever.”
Current SEC Chairman Gary Ginsler previously announced that he would resign on January 20, the day President Trump was inaugurated. During his tenure, Mr. Ginsler oversaw numerous enforcement actions focused on the cryptocurrency industry.
Since Bitcoin became publicly available in 2009, the cryptocurrency market has grown explosively, with current portfolios of digital tokens numbering in the tens of thousands. Market volatility has become a benchmark for these cryptocurrencies, as regulators in the US and around the world struggle to create a suitable framework for decentralized currencies.
Bitcoin broke through the $100,000 line late Wednesday and was trading around $101,400 as of noon Thursday, before falling to just under $99,000 per token by Thursday afternoon, according to CoinGecko tracking. did. At the time, the global cryptocurrency market capitalization was just under $3.8 trillion.
Financial experts warn that even though Bitcoin and other digital currencies appear to be on an upward trend, similar values have soared in the past, followed by falls.
The Wall Street Journal reported Thursday that cryptocurrencies have become widely accepted by the same systems they were designed to thwart, and that cryptocurrencies have “been growing since their early days as cypherpunk rebellions against the establishment.” “A surprising reversal.''
“I think it's very ironic,” Tim Swanson, head of market intelligence at London-based blockchain company Clearmatics, told The Wall Street Journal. “The whole purpose of Bitcoin was to create an alternative payment infrastructure outside of traditional finance and government oversight. Now some Bitcoiners are trying to accommodate governments or get subsidies. ”
Cryptocurrency investment for beginners
For those interested in taking their first steps into crypto investing, there are a number of how-to books out there, such as Investopedia's primer that provides some basic guidelines, but with that guidance There are many reminders that the crypto market is highly volatile and lacks much regulation. Protection of traditional intermediary areas.
Buying Bitcoin and other digital currencies may seem complicated if you've never done it before, but it's relatively easy, according to the investment guide website. All you need is an account with a service or exchange and a way to safely store your purchases.
To jump into the world of cryptocurrency investing, you need to choose the right service or location, connect your payment method, place your order, and ensure stable storage for your purchased cryptocurrencies. Each of these steps requires research and careful evaluation of the pros and cons of the services involved. Bitcoin can be obtained from Bitcoin ATMs, payment services such as PayPal, and mainstream brokerages such as Robinhood and Coinbase.
What if I want to sell cryptocurrency?
Crypto tokens can be sold through the same exchanges that broker purchases, but transactions also incur fees.
Investopedia strongly recommends that anyone interested in becoming a cryptocurrency investor conduct thorough research on cryptocurrency exchanges and their services before making any investment. This site also includes the following warning about the significant differences between investments made through traditional brokerages and virtual currency exchanges.
“Investments in Bitcoin and other cryptocurrencies are not protected by Securities Investor Protection Corporation (SIPC) insurance. A typical brokerage firm will protect securities and cash in a brokerage account containing up to $500,000. Coinbase has a cash limit of $250,000. Cryptocurrency exchanges such as Yahoo! Cryptocurrency Exchanges have crime insurance to protect their infrastructure from hacking. However, that insurance does not protect individual customers from password theft.
