A SURGE in crytpo investment this week has led to Dogecoin and Ethereum reaching yet another all-time high.
Currently, Bitcoin is trading at around $56,000 and has seen steady gains in the last few days.
Dogecoin is up by nearly 20 per cent over the last 24 hours and by 60 per cent over the last week
And the incredible price surge of Ethereum has made its 27-year-old founder a BILLIONAIRE.
Vitalik Buterin now has at least $1 billion worth of the cryptocurrency in his main wallet – making him the world’s youngest crypto billionaire. Buterin spearheaded the launch of the Ethereum blockchain in 2015.
Ethereum’s cryptocurrency, ether, surged past $3,000 for the first time early Monday morning, marking a 325% rise since the beginning of this year.
Ethereum’s incredible rise came after three years of decline which saw it falling below $100 in April 2020 following a previous high of $1,200 in 2018. But over the past 12 months the currency has absolutely rocketed.
That said, as with all cryptocurrencies, there are no guarantees that any investments will make money and in many cases investors has lost absolutely everything they have put into the coins.
Read our cyptocurrency live blog below for the very latest updates…
THE RISK WITH CRYPTOCURRENCIES
All investments can go up as well as down, but cryptocurrency is far more volatile than many other asset classes, meaning it is very high risk.
All of the cryptocurrencies are a speculative investment, with limited track records, so it’s hard to predict what will happen next.
There are also significant fears that many of these currencies are an investment bubble, which could burst leaving investors with next to nothing when prices drop.
There is no guarantee that you can convert your virtual coins back into cash, as it may depend on the demand and supply in the existing market.
With very few options for “spending” the coins – you could be stuck with assets that are plummeting in value.
WHY ARE PRICES SPIKING?
Cryptocurrencies such as Bitcoin, Dogecoin and Ethereum have had a bumper couple of months, regularly reaching record new prices.
But what is causing these price spikes and should investors be thinking about entering these extremely volatile markets?
Last month on April 14, Bitcoin reached its highest price for the second day running, surpassing $64,000 for the first time since the currency was invented.
Meanwhile, the price of Dogecoin hit a fresh all-time high today (May 5) as interest in the “joke” cryptocurrency grew stronger.
And Ethereum’s cryptocurrency, ether, surged past $3,000 for the first time early Monday morning, marking a 325% rise since the beginning of this year.
WHAT CAN YOU BUY ON COINBASE?
On Coinbase you can buy cryptocurrencies like Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic and Litecoin.
You can also buy Dogecoin which is the recently popular cryptocurrency that started off as a joke.
The effect of the platform has prompted the term the “Coinbase…