After Bitcoin prices dropped below $20K last week, buying activities started picking up, which is the usual investing trend for commodities with volatile prices. The increased demand caused the price of Bitcoin (BTC) to rally, which today (July 19) closed at $23,466. This implies that those who were able to buy it at $19K can sell it tomorrow, and roughly gain around $4K. However cryptocurrency experts are saying that the rally in the price of BTCs does not mean that the crypto crisis is over, because there is still a chance that the price of BTCs could still hit rock bottom. Cryptocurrency owners should pray that no major cryptocurrency exchange company falls and be forced into liquidation.
As it is, Bitcoin has already lost 70% of the value created by the 2021 cryptocurrency trading and exchanges. During the year, the demand was so high, BTC prices peaked at an epic all-time high of $68,000 in November. Although it’s still a long way for BTC prices to go back to the prices reached in 2021, many who knew how to play their BTCs right made a killing by taking advantage of the spikes in prices when the demand became high. Not a few bought their BTCs when the digital coins were selling only between $3K and $4k in early 2019.
The Volatility of Cryptocurrency Ecommerce
If you’re looking to get into the cryptocurrency business, be wary that this is also the time when there are unscrupulous elements that will take advantage of the current rise and fall of the value of digital money, particularly bitcoin. Bear in mind that cryptocurrency uses a digital monetary system that exists outside of banks and other traditional financial institutions.
Transactions are between peers but kept confidential through the process of encryption. The purchase and storage of virtual money involve cryptocurrency exchange companies. However, as the sell-off at low prices continues, the BTC could become oversold to make recovery even more difficult to achieve, for a cryptocurrency company.
What to Look for in a Cryptocurrency Exchange and Storage Company?
Certain factors, such as financial backing of investors, fees collected, continuing availability of payment processing and transferring methods and high level security including updates, are good indicators of a good exchange site.
One thing that makes a cryptocurrency exchange platform present a feel of a traditional financial approach is when the crypto company has insurance coverage with the Federal Deposit Insurance Corporation (FDIC) on the digital money held on behalf of account holders. This gives a kind of assurance against potential loss in case of security breaches.
An excellent feature of an ecommerce cryptocurrency exchange site is an advanced trading and brokerage platform that professional traders can use when contemplating on selling their digital money. Brainvire ecommerce development recommends crypto exchange websites that provide trading accounts with a broad selection of payment methods.