On Tuesday, the crypto market came back to life, with the prices of most cryptocurrencies experiencing a surge. Bitcoin, for example, went all the way to $5,285.58 over a 48-hour period — hitting its highest price this year.
When market movements like this happen, there are usually a lot of discussions regarding what you should do: buy, sell, hold, or ignore everything. We asked some people what they thought about the price surge and here’s what they said:
The Observer:
“I work in the treasury department of a Nigerian bank. We regularly monitor the market movement of cryptocurrencies (majorly Bitcoin), although the Central Bank doesn’t allow us to invest in them. We try to understand how the cryptocurrency market operates, in case, the Central Bank declares it a recognised asset. So, we are ready to get in if that happens. Till then I remain a keen observer of the market.”
The Optimistic Holder:
“I invested in cryptocurrency a while back. Yes, I have made gains and losses.
I hold about 5 different cryptocurrency assets but most of my holdings are in Bitcoin (BTC).
“During the surge that started on Tuesday, I remained calm and paid more attention to the market than I usually would.
I am waiting for BTC to touch $6,200 before taking any action; although, I believe that if it crosses $6,500, it would rise to $10,000. I am convinced that we are now in a bull market after a year-long bear market.”
The Once upon a time investor:
“I invested in Bitcoin and sold all my holdings in January 2018. No, I didn’t make a loss; I made a tidy sum. Why don’t I hold any cryptocurrency? Well, my financial responsibilities have increased over the past couple of months so I can’t afford to take the risks I used to take before, though I have holdings in a stable coin. For now, I am skeptical about cryptocurrency until I am sure it’s a bankable asset.”
The Active Trader:
“I am in the business of buying and selling cryptocurrencies; that’s all I do all day and every day. Tuesday’s price gains were no surprise. Anyone who follows my WhatsApp stories would know that I predicted that the market was set to become bullish. As always, when the prices surge like, that I make money.
“What made me start buying and selling cryptocurrency? I believe in its fundamentals. It might take time for adoption to be widespread but I know that it will happen. Cryptocurrency is more than just a trend to jump on — it is the future that the next generation of financial systems will be built on.”
The Crypto Pessimist
“It is an unregulated instrument. I know a few businesses accept it as payment. As for me and my household, we will watch and see. I prefer the safety of the current financial system. Once a couple of traditional institutions are behind it, I might have a rethink.”
The Businessman:
“I am a Nigerian with business partners in different countries. Sometimes, doing business with my partners (with them using the existing way) can be frustrating, especially when I need to make a quick transaction.
“When I do business with some of my partners, I tend to use cryptocurrency because the transaction time is much shorter. I mean, it can take less than 15 minutes for my partners in Japan to receive value for the goods I need from them and I pay less in transaction fees.
When the price surge happened, I wasn’t concerned. I am mostly interested in using it to conduct my business transactions faster and cheaper.”
The guy with FOMO (Fear of Missing out):
“When I saw the price hike, I was not sure whether to buy. I don’t want to risk buying, and the price drops, then I make a loss. I also don’t want to miss out on the action.
Why do I want to invest in it? Well, I see it as an avenue to diversify my investments. I have money in mutual funds and in some agricultural startups. So, I see no reason cryptocurrency can’t be an additional asset class for me. Especially if I can gain more money by buying at the right price and selling, when the price goes up. Although, I am never sure the best time to buy.”
If you are like the guy with FOMO, if you have a low-risk appetite, or are not sure how to start, you might want to consider reading how to invest in cryptocurrency.
When the price of cryptocurrency surged, what was your reaction and what action did you take? Drop your responses in the comments.
This content is for educational purposes only. It should not be considered as financial advice. You should consult your financial advisor before deciding to store, buy or sell digital currencies.
This article is in partnership with Quidax. Quidax is a European based cryptocurrency exchange with a focus on Africa. We provide a seamless platform for users to send, receive, buy and sell cryptocurrencies using their local currencies.