On Jan 6 2021, the total crypto market capitalisation passed $1 trillion, (yes, trillion), for the very first time since the introduction of the first cryptocurrency back in 2009.
In a nutshell, Market cap = the total combined value of all the cryptocurrency that exists in the world today. Fun fact: With Bitcoin leading the charge, it makes up $762bn of the total market capitalisation - which is more than Facebook! ($754bn)
The combined crypto market capitalisation is often used as a basis for comparison with other sectors in the wider economy. For example, some analysts compare the total crypto market cap to the market cap of precious metals or stocks. However this is no certain method to estimate the value of crypto / blockchain - so don’t blindly trust any source. Also remember, the value of assets is variable and can go down as well as up.
So what’s contributing to this surge?
Last year there were several events that suggested institutional interest in digital currencies was growing, with Visa & PayPal being two notable companies that embraced cryptocurrencies.
Here’s 3 ways Revolut makes trading crypto quick and easy:
1. You’ve got more freedom with your money
You can go from crypto to cash instantly; you don’t need to jump through hoops to sell or hang around in time-consuming crypto exchanges. Terms and conditions apply.
2. You have ultimate flexibility on how you trade crypto
Use any of our fiat currencies to trade instantly, round up your spare change to crypto, or for Metal users, you can even get your cashback in crypto.
3. Bitcoin hit a market milestone
It took Bitcoin 11 years to get to $20,000, but only about 3 weeks to double that to $40,000. In 2020 alone, the value of bitcoin grew by over 400%. You can get in on the action from just $1 - starting small is OK! Remember, the value of assets is variable and can go down as well as up.
To get started with crypto, head over to the crypto tab in the Wealth section of the Revolut app. Tap on ‘Invest’, choose the crypto currency you want to buy and get in on the crypto action. You can also set up a crypto recurring buy to automate your crypto currency purchases. Just choose your crypto, set the amount and frequency and kick back and let us do the work.
Is Crypto suitable for me?
Cryptocurrency carries significant risks. Unlike normal money, when you buy, sell or transfer cryptocurrency you are dealing with something digital, not something tangible. Like any other digital system, cryptocurrencies are at risk of being hacked or affected by technical problems. This could result in you losing your cryptocurrency or delay your ability to sell, transfer or spend it.
The value of cryptocurrency can also change, and fall, quickly. It is much more likely to change than normal money is, and can rapidly increase or decrease at any time. It may even fall to zero, which means it’s possible to lose the money you put in crypto. Capital at risk.
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