As Bitcoin moves towards the price of 107,000 USD, many people begin to seek information and plan to accumulate digital currencies to further diversify their investment portfolios.
When a friend invested money in Bitcoin (BTC) since June 2021, Mr. Lâm Vũ recently inquired about this person's cryptocurrency investments. According to the story, this person invested at around 36,000 USD in June 2021, nearly hitting a short-term bottom, and then took profits when BTC surpassed 60,000 USD after four months. The profit amounted to over 33 million VND. Thus, this person has been putting a lot of effort and finances into 'playing' with digital assets.
Mr. Vũ is advised to participate when there is a suitable opportunity before the 'big wave' of Bitcoin arrives. This person believes it is better to wait a while for the market to undergo a correction, possibly to the price range below 95,000 USD, which would be more attractive.
Similarly, Ms. Ngọc Ánh is still monitoring to buy BTC without waiting for advice from others. As someone who has participated in financial investments over the past year, she is looking to diversify her portfolio, so she is trying to learn about digital currencies. "I believe Bitcoin will soon become a major and widely accepted currency globally," she stated.
Ms. Ánh plans to invest in BTC consistently every month, i.e., the dollar-cost averaging strategy (DCA) that she has been pursuing to invest in mutual funds for the past two years. According to her, this investment method suits her as it will not require too much attention to price fluctuations - which is a characteristic of Bitcoin - because she believes that no matter how much it drops, this cryptocurrency will recover and gradually rise to higher prices over time.
The demand for understanding and investing has increased as Bitcoin is in an uptrend and is currently hovering around the price of 100,000 USD. This currency has increased about 130% year-to-date, with a market capitalization reaching 2 trillion USD just 15 years after its inception. BTC is ranked 7th globally in terms of market capitalization, just behind gold and major tech companies like Apple, Nvidia, Microsoft, Amazon, and Alphabet.
In an interview with VnExpress, Mr. Lê Sỹ Nguyên, National Manager of the Bitget exchange in Vietnam, stated that Bitcoin surpassing 100,000 USD has boosted trading volume on this third-largest derivatives exchange in the world, not only for BTC but also for altcoins as investors diversify their portfolios. According to him, the strong market activity has highlighted the growing interest and participation in cryptocurrency trading.
From his perspective, Mr. Nguyên believes that if investors participate now, they will have the opportunity to accumulate assets and diversify their portfolios. However, they still have to face challenges related to market volatility, potential regulatory changes, and input management amidst price fluctuations.
"A cautious approach, based on thorough research, is very important," Mr. Nguyên emphasized.
This expert believes that the dollar-cost averaging strategy is currently suitable for accumulating BTC, minimizing the impact of volatility by spreading investments over time. Beginners should focus on consistent investments, avoid trading based on emotions, and regularly assess market developments to stay updated.
In a recent report, the world's largest asset management company, BlackRock Investment Institute, believes that a reasonable allocation to Bitcoin is 1-2% of an investment portfolio. This would provide a similar risk appetite to the Magnificent Seven stocks (including Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla) in a portfolio consisting of 60% stocks and 40% bonds.
If investors allocate more than 2% of their assets to BTC, the level of risk will significantly increase. This ratio is only suitable for those who can accept the risks of Bitcoin in the context of prices having jumped above 100,000 USD per unit. BlackRock notes that this cryptocurrency has experienced declines of 70-80% since 2009.
In fact, during previous downturns, many investors suffered heavy losses, losing all their assets, and even incurring large debts. Once winning big thanks to cryptocurrency investments during the pandemic, Mr. Trung Tín transitioned from being a 'casual investor', seeing it as a way to accumulate a new type of asset, to becoming a trader, addicted to monitoring the market to buy and sell as profits on his account soared to several dozen million in just a week. He recalls feeling like a 'moth to a flame' as he successively withdrew all his savings and borrowed from friends to invest everything in Bitcoin, reaching a peak total capital of over 1 billion VND.
The drop after peaking at the end of November 2021 left Mr. Tín with nothing. Seemingly in disbelief, this startup owner in Ho Chi Minh City decided to borrow from relatives, friends, colleagues, and partners to find a way to recover his losses.
"I dug my own grave when I was using borrowed money to trade derivatives with 125x margin. Just two weeks later, I had to sell my car and land to pay off my debts. That period was terrifying for me as it fell during the end of the year, with Tet only a few weeks away," he recounted, stating that he is still scared whenever he hears anyone mention digital currencies.
The Washington Post quotes therapist Aaron Sternlicht (USA) stating that 'playing' with cryptocurrencies is more addictive than sports betting and traditional financial investing, as trading can occur around the clock, unlike stocks. Currently, cryptocurrency addiction has not been officially recognized as a mental health disorder. However, over the years, a team of experts from Rutgers University in New Jersey has observed a significant increase in the number of people trading cryptocurrencies, alongside a higher number of addicts. They believe that excessive cryptocurrency trading, with the hope of earning multiple returns, is essentially gambling.
According to a market survey for 2024 by Coin68 with over 2,700 Vietnamese participants, despite the cryptocurrency experiencing a fairly favorable year, nearly 44% of respondents reported losses. Among the more than 56% who made profits, those who did not engage in derivative trading and invested long-term generally earned significantly more than the remaining group by about 10%.
Recently, the market has witnessed many instances of 'burnt' accounts when trading derivatives, meaning investing money through futures contracts. Investors can place orders predicting price increases (Long) or decreases (Short) for a certain period without needing to own the cryptocurrency. If correct, they will make profits; otherwise, they may lose all their money when they hit the liquidation threshold. In recent peak sessions for Bitcoin, hundreds of millions of USD of investors' capital have been wiped out. Experts advise that newcomers to investing should absolutely say no to derivative trading to avoid losses, especially losing all their assets.
To date, digital assets remain in a state of lacking a legal framework as they are not yet recognized. Experts assess that this situation makes it difficult for the community to develop in a safe, sustainable, and transparent environment. Investors are also not adequately protected against risks during transactions, unlike traditional asset channels.
(According to Vnexpress)
#CryptoUsersHit18M
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