The deadly Covid 19 pandemic was wreaking havoc on the whole world. While everything seemed to be under massive threat, Cryptocurrency was born again with an influential rush like never before in history.
From the launch of the first cryptocurrency-Bitcoin, this digital asset was found in serious doubts of credibility, potential, volatility, and whatnot. But, crypto trading on Best Trading Platform UK is today probably the first thing that pops up in mind when hearing about making profits through trading.
The Covid Pandemic conferred up as a massive turning point in the account of Cryptocurrency. Be it the trillion-dollar bitcoin or other altcoins; trading charts have never been as fluctuating as they were in Pandemic.
Nearly all the physical assets observed massive losses in price, but this was not the case with cryptocurrency trading. With the sharp price surges and flat price dips, trading cryptocurrency now entirely depends on market volatility. Here we have shed light on some of the other effects of Pandemic on crypto trading.
The unexpected returns of Cryptocurrency are due to its high volatility that never fails to amaze us. However, this volatility of Cryptocurrency depends on a number of driving forces, from customer growth to market trends and others. At the time of the Pandemic, a lot of people opted to trade Cryptocurrency as a side income for making profits in hard times.
As a result, Trading platforms seemed to be more saturated than ever before, resulting in high competition. Therefore, trading cryptocurrency is today not a piece of cake as before the Pandemic. But, it only asks for the most knowledgeable, experienced, and intelligent investors with heavy investments to stake.
In the world of short-term and false sources of income, Crypto trading was observed to be one of the most authentic, reliable, and profitable ways to earn profits. Due to high inflation and severe unemployment, more and more investors run out of money resulting in miserable bankruptcies.
In such a scenario, crypto trading proved to be the ultimate savior for people, saving their declining financial conditions. Numerous investors risked their life savings in cryptocurrency trading and were astonished to see the unexpected profitable returns in days instead of months. Through this, Crypto trading got a new rise and shine with a tag of extreme reliability.
- Crypto Exchanges:
Crypto exchanges play an integral role in trading cryptocurrencies safely from one user to the user. Due to high trading volume, crypto exchanges experienced a whole new level of spike in customer growth. This might seem an excellent opportunity for many traders but actually proved to be a danger to cryptocurrencies. Among thousands of crypto users who use crypto exchanges, a big ratio was hackers who aim at stealing crypto wallets. Hence, crypto trading now involves huge risks when exchanging Cryptocurrency and storing it for safety.
Out of many reasons people prefer Cryptocurrency over physical assets, the decentralization of cryptocurrency is the most convincing one. The Covid Pandemic not only affected the financial state of individuals but numerous countries and continents. In Africa, the use of Cryptocurrency reached heights that seemed a significant threat to the country’s infrastructure.
As a result, the government started passing rules to monitor and limit the use of Cryptocurrency among residents. As per laws, the government ordered crypto users to pay a good share of profits to the government and taxed every use of Cryptocurrency. It might not sound like a big deal for seasonal traders, but it was very stressful for those who trade on cheap crypto coins for immediate short-term profits.
The recent Covid 19 pandemic terribly hurt the expectations of crypto traders with their future trading plans. Considering the inevitable volatility of Cryptocurrency, it won’t be wrong to say that the Pandemic was a driving force for the erratic price fluctuations of Cryptocurrency.
Not only Bitcoin acquired worth from a few cents to thousands of dollars, but several other Altcoins, including Ethereum, launched their own trading platforms and tokens. With the increasing supply of Cryptocurrency today, crypto exchanges welcome both newbie and expert traders with open arms, which was not the case before the Pandemic.
Hence, we can say that Pandemic turned out as a lucky charm for the cryptocurrency world at times when no other help could be seen. If you’re planning to invest in Cryptocurrency, don’t be afraid, as there have been no long-term effects of pandemic on Cryptocurrency.