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Author: Admin | 2025-04-28
By concerns over whether its tokens are really backed one-to-one with full reserves. That, combined with the emergence of rival stablecoins, has seen its market share dip in the last couple of years. But it remains the biggest stablecoin in the space.DogecoinDogecoin is a memecoin. This means it’s an asset inspired by a meme or internet joke — in this case, a shiba inu named Kabosu. But that hasn’t stopped dogecoin from actively trading for real money. It even reached a market cap of $88 billion in May 2021. Since then, it has fallen back down to Earth. But memecoins like Dogecoin symbolize how much speculation and volatility exists in the cryptocurrency space. Understanding the cryptocurrency marketThe cryptocurrency market can be confusing because it is tied so symbiotically to human emotion. The pandemic period brought meteoric gains. But bone-crushing losses followed as the wider economy pulled back amid rising interest rates to combat inflation. 2022’s returns highlighted that nothing within crypto was immune to immense losses. The year was a cautionary tale of the risks inherent in the space. Multiple cryptocurrency companies filed for bankruptcy, including FTX, whose founder was convicted of stealing $8 billion from customers.Some argue that cryptocurrency is nothing if not resilient, however. And 2023 and 2024 appear to be evidence of this position.“The recent introduction of cryptocurrency ETFs marks a significant evolution, allowing retirement plans and individual investors to gain exposure to cryptocurrencies without directly purchasing or holding them,” Dunbar said.These ETFs have spurred demand for many large cryptocurrencies. Some have reached or neared all-time highs. What the future holds for crypto, though, is anyone’s guess.Pros and cons of cryptocurrencyThere are many other pros and cons to consider before wading into crypto’s murky waters. Here are some of the key benefits and drawbacks.Crypto tips for beginnersThe crypto space might be confusing and overwhelming to a beginner. And the risk is high. If you want to invest in crypto, here are four tips to help you start.1. Understand the risksIt’s important to educate yourself on crypto’s risks. Also consider how to store it, how to buy it, whether it is legal in your country, and how to avoid common scams and pitfalls.2. Check past performancePast performance can indicate how volatile a coin is. But remember that past performance is no guarantee of future performance. 3. Watch volatility Crypto’s volatility is unmatched. Many experts recommend an asset allocation of no more than 5% for crypto. Depending on your risk tolerance, investment horizon and existing portfolio, cryptocurrency may not be a suitable purchase. 4. Invest only what you can afford to loseIt should be clear by now that cryptocurrency is risky. Many cryptos have gone to zero. And others
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