The value of cryptocurrencies like Bitcoin, Ethereum and Cardano have surged over the last 12 months, with the total market capitalisation of all coins rising from USD $366bn (August 10, 2020) to $1.9tn (August 11) this year.
Honan said he expected to see further improvements in the market this year following a market fall in May and June.
“Experienced investors have been buying the dip in the expectation that Bitcoin could hit the USD $100k price by the end of the year,” he said.
“If you are a new to crypto, or want to build your confidence, my main message would be to do your homework on the market before you buy.
“The group who were least likely to report a profit on their crypto holdings over the last year were people who said they had little or no understanding of the market.
“At the moment, this is a relatively small proportion of crypto users in the country, just 16% report having little or no understanding. But for this group and anyone who wants to grow their confidence, it really is essential to do your research.”
“Pro tips are to research the team behind any digital assets you are thinking of buying, and also look at indicators like the size of a coin’s market and its liquidity.”
