Cryptocurrencies saw a slow start this year, mainly due to a Reserve Bank of India (RBI) order to banks telling them not to deal in crypto. The cryptocurrency trade accelerated after the Supreme Court in March reversed the RBI ban and allowed trading in coins such as Bitcoin, Ethereum, Dogecoin, and others. Since then, several online exchanges such as CoinSwitch Kuber and CoinDCX have flourished. But investing in these virtual assets require due diligence, given the extreme volatility of most cryptocurrencies. One way to do that is by looking at historical data of these coins.
How cryptocurrencies have behaved in the past few weeks and months can give an idea of their potential in the near future and whether a person should invest now or wait.
Here’s how the top 5 digital coins have behaved so far since the start of this financial year (stating April 1):
Bitcoin is the oldest cryptocurrency in the world. Since its launch in 2009, it has remained an undisputed leader of the cryptocurrency market. On April 1 this year, it was trading around Rs. 42 lakhs but by May-end, around the time the market crashed massively because of a Chinese crackdown on mining operations, it hit a low of Rs. 22 lakhs. Bitcoin has, however, recovered. On September 17, it was trading around Rs. 37 lakhs.
Experts say this is the only virtual currency that has any chance of challenging Bitcoin’s dominance, but it is far from realising