The question "Where to invest?" will always be relevant. Investors are constantly looking for new investment opportunities. Of course, the most promising and highly profitable investment instruments attract the most attention of investors. At the moment, such instruments, without a doubt, are the cryptocurrencies Bitcoin, Ethereum, and other alternative coins.
Why is this so?
The value of Bitcoin has increased by more than 570 % over the past six months. Altcoins grew after it: Ethereum by 700 %, Litecoin by 770 %, Dogecoin by 1790 %. Moreover, it was fast, recoilless growth.
December 13 investor and writer Robert Kiyosaki, author of the bestselling books Cash Flow Quadrant and Rich Dad Poor Dad, tweeted: “Glad I bought Bitcoin. Next stop $50,000. Wall of institutional money coming 2021. Buy below $20,000. If you missed Bitcoin, buy silver. Silver set to move due to AOC’s Green New Deal. America in trouble. Future bright for gold silver Bitcoin and entrepreneurs.” As you can see, his predictions came true, and Bitcoin crossed the $50,000 mark in March 2021, just in 2 months.
But this is not the end of the rally. Bitcoin and other cryptocurrencies will continue to rise. Specialists of the Kraken crypto exchange analyzed historical data and cryptocurrency movement patterns. They stated that Bitcoin could grow to $90,000 and Ethereum up to $15,000 within the next month.
Why should the Bitcoin value grow up?
The only thing that provides cryptocurrency is the demand for it. Due to the increased demand for Bitcoin, it will continue to grow, followed by alternative currencies.
- In a period of financial instability when world currencies are weak, and the US is printing 1.9 billion in unsecured dollars to stimulate the economy, thereby devaluing the dollar, investors are looking for stable and reliable safe-haven assets. Until recently, the most popular refuge was gold - a precious metal with limited reserves and constantly growing value. But now digital gold has appeared - Bitcoin. A digital product that is also limited in quantity. Bitcoin emission is limited to 21 million coins, and the last bitcoin will be mined roughly in 2040. This deflationary nature of Bitcoin has been embedded in it since its inception. The cost of bitcoin is growing much faster than the rate of gold and brings investors a profit of tens of percent every month.
The huge interest in Bitcoin from large investors and institutions is confirmed by information
from financial news feeds:
- Tesla invested $1.5 billion in Bitcoin. That has provoked an immediate increase in its value from $41,950 to $44,000 dollars per coin, setting a new record for value. Tesla CEO Elon Musk tweeted: "However when fiat currency has a negative real interest, only a fool wouldn’t look elsewhere. Bitcoin is almost as bs as fiat money. The keyword is "almost"." Also, after Musk mentioned Dogecoin on Twitter, its value increased by 47.5 % per day.
- Major hedge funds add cryptocurrencies to their investment portfolios. But low liquidity, high volatility, and the inability to regulate the cryptocurrency so far do not allow it to take large shares in investment portfolios. Rebecca Patterson, director of investment research at the world's largest hedge fund Bridgewater Associates, explained: "The more you get a real regulatory ecosystem developing around bitcoin and other currencies, the more other types of investors are going to be comfortable coming in, that's going to bring the liquidity, that's going to reduce the volatility."
- Popular payment services such as Square and PayPal, with over 300 million users, have added the ability to carry out transactions with cryptocurrency.
- An important event that supported Bitcoin was the IPO of the Coinbase crypto exchange. The Coinbase shares value increased by 60 % in the first 10 minutes of trading. And capitalization reached $112 billion with $429 per share at its peak. This is amazing! A 7 years old crypto company has almost caught up in capitalization with such large banks as CityGroup or GoldmanSaks. Coinbase works mainly with Bitcoin and Ethereum. Therefore, in the future, the price of Coinbase shares may correlate with the price of these cryptocurrencies. By the way, Tesla bought bitcoin for $1,5 billion also with the help of Coinbase.
- Cryptocurrencies are popular all over the world. The analytical company Chainalysis has developed an algorithm with criteria for assessing the popularity of cryptocurrencies. It takes into account the total volume of crypto assets circulating in the country, the number of cryptocurrency deposits, and trading volumes. Of the 154 countries surveyed, only 12 countries have very little interest in cryptocurrencies. Ukraine, Russia, Venezuela, China, Kenya, the USA, South Africa, Nigeria, Colombia, Vietnam are in the top ten of the rating in terms of the prevalence of cryptocurrencies. In countries with unstable economies, the population is investing in cryptocurrencies to avoid huge inflation.
|Country||Score||Rank||Rank od individual weighted metrics feeding into index|
|On-chain value received||On-chain retail value received||Number of on-chain deposits||P2P excahnge trade volume|
We are once again convinced that the interest in cryptocurrencies is huge. In 2021, cryptocurrencies led by bitcoin feel more confident and continue to develop.
How to invest and make a profit?
Just buy crypto and wait for the price to rise again? The "Buy and Hold" strategy is as old as the world, but it works in the long run. Payback periods can be calculated in years. For example, some bought bitcoin at the beginning of 2018 for $15,000, counting on a rollback and continued growth. They had to wait, while the rate fluctuated from $3,000 to $10,000 2 years, and only after mid-2020, they made a profit.
The fact is that any trading instrument has periods of growth, decline, and the so-called “flat” when the price fluctuates in a small price range and does not grow or fall. As history shows, prices are flat most of the time.
Experienced traders can profit from any price movement. When the price rises, they buy on pullbacks. When the price goes down, they sell short. In a "flat", they trade from the channel boundaries. Therefore, the most profitable investment strategy is to buy a cryptocurrency and deposit it to an investment company such as Zion Finance. By entrusting cryptocurrency management to experienced specialists of Zion Finance, you will make a profit when the price of the cryptocurrency rises and also increase the amount of cryptocurrency on your deposit. If the cryptocurrency rate decreases, you will still have your money.
You invested 1 BTC cost $60,000 in Zion Finance for six months with a deposit rate of 154 %.
Suppose that at the end of the investment period, the BTC price has not changed, and you already have 1.54 BTC on your deposit.
Profit + 54 % to the body of the deposit, totaling $92,000.
If the price drops by 30 % to $40,000 per coin, then you have $40,000 * 1.54 = $61,000.
Despite the decline in the cryptocurrency value, you still have more than $60,000.
When the bitcoin price increases, the profit will be significantly higher.
For more details, see the table below:
|Amount||Period month||Interest %||Start price||End price||Profit USD||Profit %|
|Bitcoin||1||6||154 %||$60,000||$60,000||$92,400||154 %|
|1||6||154 %||$60,000||$40,000||$61,600||102 %|
|1||6||154 %||$60,000||$80,000||$123,200||205 %|
|Ethereum||1||6||154 %||$2,000||$2,000||$3,080||154 %|
|1||6||154 %||$2,000||$1,300||$202||100 %|
|1||6||154 %||$2,000||$2,700||$,158||208 %|
|Litecoin||1||6||154 %||$300||$300||$462||154 %|
|1||6||154 %||$300||$200||$308||102 %|
|1||6||154 %||$300||$400||$616||205 %|
* All calculations in the table include the body of the deposit
As you can see above, the deposits of Zion Finance help to receive additional passive income and insure against a decrease in the asset value. Profit is calculated daily, and the longer the term of the deposit, the higher the interest rate and the profit. For more information on investment conditions, see the website https://zion-finance.com
The 2020 year trends will continue in 2021. Cryptocurrencies are rising and receiving more and more support. Invest to be in time for the next stage of cryptocurrency growth and earn more with Zion Finance.