Many crypto experts are anticipating that this increase is expected to continue in future months and this is largely down to the fact that macroeconomic conditions and easing across the globe, particularly in the U.S. and UK markets. Let’s take a look at some of the latest updates in answer to the question on everyone’s lips at the minute: is cryptocurrency going up again?

The Road To Recovery: Is Cryptocurrency Going Up Again? 

Overall, it appears that the crypto trading market has shifted towards being positive instead of neutral. This year already, Bitcoin – the world’s largest cryptocurrency – has risen almost 70% and Ethereum has reached its highest peak since August 2022 – seeing an increase of 50% this year. Many industry insiders are already predicting that Bitcoin will hit an all time high this year. 

Why Is Bitcoin Rising So Much?

This week, there has been a sharp rise in Bitcoin prices (almost 9%), which has then pushed it above $30,000 (£24,118) for the first time since June last year. The recent increase in Bitcoin prices and value has sparked many discussions within the industry about a new market boom, but why exactly is this cryptocurrency going up again? 

It’s believed that the movement in Bitcoin began when the news of the fallout of the tech-focused Silicon Valley Bank broke, followed by its collapse. Since then, Bitcoin has steadily increased and has climbed almost 80% this year alone. Overall, the global crypto market is now trading at a higher level, plus, as well as this, experts predict that this recent surge in Bitcoin is also linked to the fact that more traders are showing confidence in the Federal Reserve (Fed), which is believed to announce a pause on increasing interest rates again due to fears of recession across global markets. 

In a domino effect, these fears of recession across global markets have exposed risks and weaknesses within banking systems all over the world and traders have felt an increased appetite for decentralised currency, such as Bitcoin and other cryptocurrencies, which are seen as safer alternatives to conventional banking systems. 

What Determines The Price Of Bitcoin? 

Unlike traditional currencies (also known as fiat currencies), such as the GBP or US-Dollar, Bitcoin isn’t defined by a single entity as it would be within a central bank. Instead, it is defined by supply and demand, or the price which traders are willing to pay. When there is more demand for Bitcoin, similar to when other cryptocurrencies are going up again, the price increases and when this demand reduces, so too does the price. 

The demand for Bitcoin is dependent on a number of factors, such as global events (including advances in stocks and price declines) and other economic factors, such as trade deals and conflicts. Unlike fiat currencies, which are subject to change in line with political and economical influences, Bitcoin is a fully decentralised system. There is no one regulatory authority which looks after the monetary base. Bitcoin also has the highest trading volume when it comes to cryptocurrencies, but compared to other global markets, it is relatively small market-wise. 

Have Crypto Markets Turned Bullish?

A bull market occurs when commodities and securities are on the rise, such as now when cryptocurrency is going up again. Typically, this term is used to refer to the stock market, but it is applied to anything which is traded, such as cryptocurrencies, so yes the cryptocurrency markets have turned bullish. In recent times, the cryptocurrency market has seen positive signs following an ease in macroeconomic activities, which has then caused the price of cryptocurrency to increase. The current trading value of the cryptocurrency market has recovered to levels not seen since June 2021.

With the markets turning into bull markets, there is also the possibility that a rally occurs. A rally is a period of sustained increases in the prices of cryptocurrencies, stocks or bonds and it usually involves rapid and substantial increases over a short period of time. Rally, as a term, is used loosely when referring to upward swings in markets and is caused by significant increases in demand which is the result of a large influx of investment capital in the market. This then leads to the bidding up of prices. 

What To Do In The Event Of A Crypto Rally

• Diversify your trading portfolio
• Spread your risk in order to lessen the impact of a downturn in a specific crypto 
• Keep up to date with industry developments
• Don’t make impulsive decisions 
• Follow a strategic investment pattern
• Store your cryptocurrencies in a secure wallet 

Things Traders Should Be Aware Of With The Market Increase

With cryptocurrency going up again, there are some things which traders need to be aware of, or areas where they should show extra caution. There has always been the risk of market manipulation, but this risk increases when the market does. Market manipulation is where there are attempts to artificially inflate or influence the price of an asset, or overall market behaviour. This can involve a single individual, or group of individuals, looking to create an overriding illusion within the trading market. 

Pump and dump schemes are the most prevalent offender when it comes to market manipulation, which is where a group of people work together to artificially inflate the value of a coin. This scheme is usually targeted toward low market coins which are available on limited exchanges, with the inside group buying the coins, then dumping them once there are enough traders and investors also buying the coin. This causes the group to gain a profit, whilst most other participants take a loss. Before trading, always do your research and due diligence before parting with any money. 

Another thing to be aware of with cryptocurrency going up again is the likely increase in trading scams. Criminals will be aware that people will want to spend more investing in crypto, knowing that there is the possibility of getting higher returns, so will likely target new or inexperienced traders. If you believe, at any point, you have been the victim of a trading scam, then please get in touch with our team of recovery solicitors to start your journey. 

For the past 10 years, there has been much talk around cryptocurrency and, with it being around for some time now, it is apparent that many people have their own opinion on the subject, leading to many cryptocurrency myths floating around. 

Some think it’s the best thing and it is going to take over the traditional currency, whereas others don’t believe that it will last. This is fine, but many people have also got opinions on the topic from myths they may have heard from different people or even on social media. In our latest blog, we will go through 5 cryptocurrency myths to understand before investing and the facts behind them. 

Cryptocurrency Myth – Bitcoin and the blockchain are interchangeable

Fact – Every Cryptocurrency has its own blockchain

The real fact is that many people don’t understand blockchain or what it is, which is where this cryptocurrency myth has derived from. Putting it in its simplest form, it is like a virtual ledger that currencies are built and traded on. When it comes to cryptocurrency, there are some exceptions as each currency has its own blockchain. This means that you would not be able to buy and trade Ethereum on a Bitcoin blockchain and the same the other way around – another cryptocurrency myth. 

It is also important to understand that each blockchain functions differently. For example, Bitcoin was created to work as a form of digital cash whereas Ethereum works as an intermediary for developers to create peer-to-peer apps.

Cryptocurrency Myth – Cryptocurrencies are not regulated

Fact – Each year, more regulations are being put in place

This cryptocurrency myth has derived from some truth as when cryptocurrencies first started, it was a lawless playground, with no laws or regulations in place. This resulted in many people becoming cautious regarding investing as they believed that governments would ban cryptocurrency, rather than regulate it, although some countries did ban cryptocurrency trading. Fast forward to 2022, and there are more regulations in place and governments have now started to look at ways in which they can regulate it.

The reason why they are now being more regulated is the fact that many of the top companies, such as Amazon and Dell, are now accepting cryptocurrency as a valid payment method. This has encouraged more governments to rethink their original plans. So if you hear this cryptocurrency myth, you now know the truth.

Cryptocurrency Myth – Cryptocurrencies are illegal in countries where it is not regulated

Fact – Just because something isn’t regulated, doesn’t mean it’s illegal

Just because cryptocurrency isn’t regulated in some countries, it doesn’t mean that it is illegal – this is a common cryptocurrency myth. If you and your friends developed a currency that you use between yourselves, this isn’t illegal, it’s just unregulated. This is the same for cryptocurrency. If you are worried that it is illegal in your country, it is worth looking around online as there is a lot of information regarding this now. 

A great example of this would be South Africa. At the moment, the South African Bank is working on creating laws and regulations for cryptocurrencies, but at the moment, it is not classed as legal tender. This doesn’t make it illegal, it just simply means that the bank does not support cryptocurrency yet. A lot of traders believe this cryptocurrency myth and this paves the way for error, miscalculated judgement and, in some cases, being more vulnerable to scams and fraud. As with anything, if you are not sure, do your research – our blog has some great tips and advice when it comes to trading. 

Cryptocurrency Myth – The blockchain is only used for cryptocurrencies 

Fact – The blockchain has many uses

A common cryptocurrency myth that people believe is that a blockchain is only useful for cryptocurrencies and that it’s just a wallet for cryptocurrencies. This is also because people don’t have a clue what blockchain is. Instead, a blockchain is a whole platform that provides a range of functions and new features are being recognised constantly. 

One use that a blockchain has is that it can host contracts between more than two parties. This is especially useful if you are storing contracts between loan companies and the beneficiary as well as make the payments automatic. It really is a common Cryptocurrency Myth that the blockchain is only useful for storing and trading currencies. 

Cryptocurrency Myth – Cryptocurrency is going to die soon

Fact – Cryptocurrency has been gaining value steadily over the past 10 years

A common cryptocurrency myth is that the bubble will soon burst. The first generation of cryptocurrencies were generated in 2010, and most of them have steadily grown and gained value during this time. A great example of this is the original currency, Bitcoin. Like with any sort of investment, there are going to be peaks and falls, just like the normal exchange market.  So this cryptocurrency myth is false. 

In actual fact, cryptocurrency is now the fifth most circulated currency in the world and between 2020 and 2021, the increase was over 195% which is very promising for investors.

There are many cryptocurrency myths out there and it can be easy to believe them if you have not already done your own research. If you are in doubt about investing in cryptocurrency, then don’t do it. Once you have done your own research and feel that you are comfortable investing, then the choice is yours. If you believe you may have lost money from investing scams, contact us today and we can help to recover your losses. 

Security Tips For Setting Up A Crypto Wallet  

Back Up Your Wallet

When setting up your crypto wallet, one of the most important security measures that everyone should abide by is to back up your crypto wallet. Many people forget to do this and then later, once they have forgotten it, they can’t access any of their digital assets as they can’t be accessed without it. 

Backing up a crypto wallet is a very simple process. All it involves is you writing down your 12-24 word recovery phrase. It is essential that you write this down and put it in a safe place. Do not put this in any digital format, or take a screenshot or photo as these can easily be hacked. Many wallets will ask you for a username and password and others will require you to save a file to open your wallet. So before you start investing, ensure you are setting up your crypto wallet correctly and back up the recovery phrase. 

Securely Store Your Recovery 

When setting up your crypto wallet, it is essential to back up your recovery phrase, which you should have already done. The next step is to secure your recovery phrase properly. When you store your recovery phrase after setting up your crypto wallet, the most important thing to remember is not to store this in any digital format as these can malfunction as well as being hacked. It may be tempting to have it in a note app or in your emails but this will lead to your phrase being compromised. 

Once you have written down your recovery phrase, you need to place this somewhere secure. If you have a safe, this is a great option as it won’t get lost or damaged. Wherever you put this piece of paper, you need to ensure nobody else can get to it.  So when you have finished setting up your crypto wallet, ensure that your recovery phrase is safe. 

Never Share Your Recovery Phrase

After setting up your crypto wallet and once you have written down your recovery phrase offline, it is essential that you do not share your recovery phrase with anyone at all. This even means legitimate employees of crypto websites, crypto wallets or even support teams. If there is one major rule in the crypto world, it’s that you do not share your recovery phrase after setting up your crypto wallet. No legitimate person will ever ask for your recovery phrase. If anyone asks for your recovery phrase, it is 100% a scam. 

If hackers get hold of your recovery phrase, they can duplicate this and create a copy of your wallet and withdraw all of your funds so after setting up your crypto wallet, remember not to give your recovery phrase to anyone. 

Avoid Downloading Malicious Files or Clicking on Phishing links 

Finally, after setting up your crypto wallet, you need to make sure that you are not clicking on any links or downloading files from random senders as this can help to protect yourself from crypto-stealing malware. If you do click on a malicious link accidentally or unknowingly, then the hacker will be able to access your wallet remotely and steal your details and private keys which will, in turn, result in them emptying your wallet. To prevent this further, it is worth installing anti-malware and anti-virus software to catch any attempts. 

If there is one thing to remember when setting up your crypto wallet is that you should always write down your recovery phrase and don’t let anyone know it or where it is. This is for your eyes only. Never keep a picture of it as this is giving hackers a chance for fraudulent activity.    

If you believe you may have been the victim of a crypto scam, then please contact us today to arrange a free consultation to see if we can help you recover lost funds.