Although the reserve only understands Bitcoin, already owned by the American government, not acquired or actively purchased, the stock of digital assets will be composed of tokens other than Bitcoin – Ethereum (ETH), Solana (Sol), Ripple (XRP) and Cardano (ADA), which will not be acquired either. The announcement is important because it is the first time that Bitcoin has been recognized as a reserve asset of the United States government.
“This sends a powerful message to the world on how blockchain and digital assets become general public,” explains Sumit Gupta, co-founder of Coindcx. Accepts Edul Patel, co-founder of Mudrex: “There is a strong future for Crypto and Bitcoin in the world, not only in the United States.”
Chase hype, pay the price
Cryptocurrency is a feeling focused on feeling, and its volatile nature is no secret. In fact, Trump’s previous promise of such a reserve and the ease of regulation had seen the thrust of token at a summit of $ 109,071.8 in January.
Although his recent announcement has again fueled the feelings, over the years, such daring statements have been used by influential names to influence the market. This event may not be different. If such a reserve and storage are built, there could be a significant increase in the prices of certain parts, with the possibility of market manipulation as well. If the big players can make prices spend with a single ad or a change of policy, this raises serious concerns concerning fair play.
Without strict supervision, people with initiate knowledge could take advantage of these fluctuations to collect, while retail investors are likely to be caught. For investors, this means additional risk and volatility because they could eventually buy at inflated prices and undergo losses when the media threw dies and prices set up. Take the enthusiasm of the memes play and the media metal trend in 2021. Tech Billionaire and part of the Trump team, Elon Musk, openly supported Shiba Inu and Dogecoin, triggering a massive bull in the two pieces. Above the same time, the meta-PDG Mark Zuckerberg talks about the metavese has sent coins like the Mana de Deccentraland. However, they collapsed as quickly as they had killed themselves. Many investors who jumped due to the fear of lacking massive losses. Another Bhilwara was one of these investors. The 24 -year -old entrepreneur has invested all his savings worth Rs. 60,000 in Shiba Inu, Doge, Ripple, Bittorrent and Polymesh in 2021, yielding to the media threshing coins. “I just wanted to prove my family,” said Bhilwara, who ended up losing 85% of his investment. In the hope of recovering his losses over time, Bhilwara has remained invested but lost again when Wazirx was hacked.
These are regular events in the world of cryptocurrency, in particular those in investing in alt parts focused on media. Sunil Mahajan (name changed) faced a similar spell. The 45 -year -old IT professional was an initial success by investing in Bitcoin, Ethereum and XRP. “These are long-term bets, and they worked well for me,” he says.
When his friends started paying money into coins, Fomo started. Mahajan invested RS.20 Lakh on various parts. Today, they are worth RS.10 Lakh. “I invested by Wazirx, but now they will only pay 60% of the remaining amount (and Wealth could not independently check this complaint) because it was hacked. I never invest in the crypto again, ”explains Mahajan, who has invested in buying a Mercedes. “Now, I can’t even buy a decent car,” he said with ironically. Mahajan thinks that his error was not in the choice of bitcoin or eTH, but letting the emotions lead his bets.
This is the reason why the Indian government has constantly discouraged cryptographic investments. The RBI had prohibited exchanges in crypto in 2018, but the Supreme Court raised it in 2020. Despite this, the government tried to ward off enthusiastic investors by taxing crypto gains at 30% and not allowing the losses of cryptographic negotiation to be triggered against the benefits of other exchanges.
The 2025 budget has tightened the screws more. “Virtual digital active ingredients, including cryptocurrencies and NFTs, are now classified under unclogged income, subjecting them to higher tax rates,” explains Akshat Pande, Director Partner, Alpha Partners.
Bitcoin volatility over the years
High volatility has laid a risk for investors.
What should you do?
In accordance with the opinion of most experts, and Wealth does not recommend investing in cryptos because there remains a high-risk option, and the United States creating a reserve could add more uncertainty. “The crypto may not be a good idea of investment unless there is a clarity on its overall regulatory acceptance,” warns Rohit Shah, founder and CEO of Gyr Financial Planners. Until the regulatory landscape is clearer, investors better refrain from cryptos.
If, however, you want to experiment or be curious, respect the blue coins. Although they are also volatile, they are cyclic in nature. If you end up losing money, you can earn it if you stay invested for a long time. The other pieces are focused on feeling and more like a bet. The first five blue coins include Bitcoin, Ethereum, Binance, Solana and Ripple. However, pay attention to the amount you invest. No more than 2 to 5% of your wallet should be allocated to cryptocurrency. Or only as much as you can afford to go up in smoke.
Before investing in the crypto …
To minimize your losses, consider these tips during the investment.
Invest via the FIU-India platform
Registration with the Financial Intelligence Unit in India shows the commitment of exchange to follow the directives of the law on money money laundering (PMLA). Opt for compliant platforms to protect your assets.
Beware of false applications, websites
To avoid scams, check the authenticity of a website or application and check if it is regulated by a deemed authority.
Research and understand
Find the underlying technology, the use case and the adoption potential of the medal. Do not fall into the currency focused on the media that lacks real world utility.
Have an investment ceiling
Avoid taking loans or using emergency funds; Invest only the amount you can afford to lose. No more than 2 to 5% of your portfolio should be in cryptos.
