Bitcoin is trading well above the USD 100,000 level, up 160 percent in the last 12 months. Enthusiasts say 2025 is a breakthrough year for digital currencies, due in large part to President Donald Trump’s strong support. There is no denying that cryptocurrencies have become one of the most exciting segments of the financial world. Especially as the market capitalisation of this asset class now exceeds USD 3 trillion.
The growth of cryptocurrencies is attracting investors
This growth is attracting the attention of investors, who are beginning to see cryptocurrencies as an increasingly important segment of the financial market. According to experts such as Scott Shapiro of Coinbase, it is important not to stay on the sidelines because cryptocurrencies have the potential to change the way the financial system works. Yet the cryptocurrency market is highly volatile and still poorly regulated, which means high risk for investors.
The growth of cryptocurrencies like Bitcoin and their massive volatility are reasons why investors should approach these assets with caution. Cryptocurrency prices can fluctuate dramatically over a short period of time, making this market extremely risky. Ariel Zetlin-Jones, professor of economics, warns that investing in cryptocurrencies should be well thought out and backed by deep research, as they can easily be affected by price fluctuations.
How to choose the right cryptocurrencies
Investors should be careful when choosing which cryptocurrencies to invest in. The most important thing is to start with well-known and stable cryptocurrencies such as Bitcoin or Ethereum and avoid speculative memecoins. These “coins” may look tempting, but most have very low market value and high volatility, which means they can be very risky.
Still, cryptocurrencies offer some advantages, such as 24/7 trading and lower transaction fees. However, due to limited regulation and lack of consumer protection, investing in cryptocurrencies can become dangerous. In the Czech Republic, anyone trading cryptocurrencies must properly tax their income, which can be complicated and confusing for some investors.
