investors face a scenario of uncertainty and challenges. Inflation in Brazil is on the rise, exceeding 10% in the last 12 months, and the basic interest rate, the Selic, is already at 9.25%, with expectations of further increases. In this context, what is the best path forward for those who want to invest in cryptocurrencies?
Bitcoin ETFs are index funds that replicate the performance of the market's main digital currency, without the need to trade it directly at a broker. They were approved in the United States in October 2023, generating great expectations among investors, who saw this product as a simpler and safer way to expose themselves to the cryptoactive market.
However, the initial euphoria quickly dissipated, given some factors that affected the demand and price of Bitcoin. These include the persistence of global inflation, which has led central banks in advanced economies to signal monetary tightening earlier than anticipated, reducing the appeal of Bitcoin as an alternative store of value; the threat of the omicron variant of the coronavirus, which has brought new uncertainties about the global economic recovery; and the stricter regulation on cryptocurrencies in some countries, such as China, which banned all activities related to the sector.
In Brazil, the scenario is also not favorable for investors in cryptocurrencies. In addition to high inflation, which erodes the population's purchasing power, the country is facing a fiscal and political crisis, which increases instability and distrust among economic agents. The exchange rate, which is one of the main determinants of the price of Bitcoin in the local market, has fluctuated a lot, reflecting domestic and external tensions.
Given this, what is the best strategy for those who want to invest in cryptocurrencies? There is no single answer, as it depends on the profile, objectives and risk tolerance of each investor. However, some precautions and recommendations may be useful for those who want to venture into this market.
Firstly, it is important to keep in mind that cryptocurrencies are highly volatile assets, which can undergo large price variations in short periods of time. Therefore, they should only represent a small portion of the investment portfolio, and should not compromise the emergency reserve or resources allocated to short and medium-term objectives.
Secondly, it is essential to be informed about the functioning, risks and opportunities of the cryptoactive market, as well as applicable regulation and taxation. There are several reliable sources of information, such as specialized websites, podcasts, courses and books, that can help investors educate themselves on the topic.
Thirdly, it is recommended to diversify your investments in cryptocurrencies, not limiting yourself to just Bitcoin, but looking for other options that can offer profitability and security. There are more than 10 thousand cryptocurrencies on the market, each with its own characteristics, advantages and disadvantages. Some of them are Ethereum, Cardano, Solana, Binance Coin, Polkadot, among others.
Finally, it is advisable to monitor the performance of cryptocurrency investments, but without getting carried away by emotion or fear. Price fluctuations are normal and are part of the dynamics of this market. The investor must have a long-term vision and a defined strategy, which may involve taking partial profits, rebalancing the portfolio or purchasing more cryptocurrencies in times of decline.
Investing in cryptocurrencies can be a way to diversify your portfolio, take advantage of the opportunities of a growing market and participate in a technological and financial revolution. However, caution, knowledge and planning must be exercised to avoid losses and frustrations. With the euphoria surrounding Bitcoin ETFs over, investors must be prepared to face the uncertainties and challenges that the cryptoactive market holds.
