The year 2017 will definitely be the year of crypto currencies.
Thus the market for virtual currencies will have increased from $ 15 billion in capitalization last January to $ 600 billion today.
The crypto currencies that were still unknown to most people at the beginning of the year have become unavoidable.
In addition, they have generated much debate among professionals and at the government level.
In fact one thing is sure, no one can ignore them.
Who invests in cryptocurrency?
The volume of trade since May has been more than $ 1 billion.
So who are these new investors?
The panoply of these new investors is very broad. She goes from amateurs to real institutions.
For example, we can see young people, in love with new technologies, but also stay-at-home mothers wishing to invest their savings. There are also disappointed institutions and banks, and others are wealthy businessmen.
In addition, there are countless stories of individuals who became millionaires overnight and who make more than one dream.
The cryptocurrency news market
While Bitcoin represented until May, 85% of the market capitalization of all virtual currencies, it has increased to 50%. And the cause is not its loss of value. Because despite all the leaps and falls that the currency has undergone, it still took 1000% this year. But it is rather because several other crypto currencies have emerged.
But for investors, it’s all about understanding how all these new currencies work: some are just competitors of Bitcoin, but others are totally different and have their own applications.
In addition, the steps to be taken to acquire these new currencies are more difficult: where to get them, what to pay attention to, which are more interesting than others etc …
Understanding the world of crypto currencies
However, the complexity of these new currencies resides mainly on the pointed research that must be carried out if one wants to follow the products in which one has invested.
In the first place, it is necessary to know if these currencies represent a storage of value like gold, or if they are more focused on ultra-fast transactions for example.
Secondly, the reliability of trade must be taken into account.
Finally, it is necessary to keep abreast of the information concerning these currencies: for example what are their developments, if they risk of forks, if they made new partnerships, if they changed their protocol etc, etc …
It is undeniable that all this is extremely complicated for investors, whether amateurs or professionals.
And this complexity is often an obstacle for the majority of people.
Services offered around crypto currencies
For all these reasons, professionals have sought in 2017 to offer less complex investment services to their customers.
And there is a whole range of new vehicles on the market.
In particular, we find money market funds, applications for exchange-traded products, hedge funds and a whole bunch of services.
Moreover this year 2017 was the year of new management funds: 84 were created this year, while in 2016 there were only 11.
Some are focused on trading, while others are focused on ICOs and all this while trying to be as simple as possible.
It should be noted that the returns of these cryptocurrency hedge funds have been exceptional, ranging from 850% for Bitcoin, to more than 6500% for Ether and more than 1200% for the first ten virtual currencies.
In conclusion, let’s hope that the year 2018 will offer even more services, allowing investors to expose themselves to cryptocurrency with ease.