• Bitcoin continued smashing records through to Tuesday where it reached record highs.
• The price of the crypto appears to be stabilising after hitting R1.6 million.
• This rally appears to have been surging on the back of Donald Trump’s positive sentiments about the currency.

On Tuesday the price of Bitcoin smashed through the ceiling of the previous record the price of the cryptocurrency set.

Local cryptocurrency exchange Luno reported that the price of Bitcoin touched R1 618 339 on Tuesday following a week of the currency heading upwards. This morning, as of time of writing, the price sits at R1 469 123 which is nothing to sniff at.

As with the other increase we saw last week once Donald Trump was announced as President Elect, he continues to be the source of the rise of Bitcoin’s price.

“Many analysts attribute Bitcoin’s recent rally to expectations of a more crypto-friendly regulatory environment in the US under Donald Trump’s administration, which they believe could ease restrictions and boost investor confidence in digital assets,” Luno country manager for South Africa, Christo de Wit, wrote in a press statement.

The manager also highlights that Doge, the memecoin, has seen similar gains with the price of the dog themed coin doubling in value over the last week.

But Bitcoin is a special case, looking at the all time data from Luno, we can see that despite several drops, the currency is worth more today than it ever was.

Thanks to the rally, more South Africans are using Luno than ever before. We just hope that those locals have done their due diligence and aren’t investing more than they can afford to lose.

If folks are looking to dabble in cryptocurrency, Luno offers the following advice:

• Do your research – Luno advocates responsible investing, which starts with research. What is a cryptocurrency, how does it work and what problems does it solve? Ensure you get your information from credible sources and do your due diligence before investing. Luno has a Discover page as a free learning portal.
• Don’t invest more than you can afford to lose – you could easily get caught up in the excitement, but it is important to stay level-headed. Crypto prices rise and fall, sometimes sharply. Use a credible platform like Luno with proven safety and security measures to keep your money safe. If something sounds too good to be true, it usually is. Set realistic goals – consider investing smaller amounts regularly to grow your Bitcoin slowly and steadily. Sometimes you will invest when the price is higher and sometimes lower.
• You don’t need to buy a whole Bitcoin – one Bitcoin currently goes for over R1,6 million but you can buy a fraction of a Bitcoin for as little as R10 on Luno.

While you could stand to gain a lot of money, that money can just as easily be lost as volatility is a defining factor of not just Bitcoin but cryptocurrency in general.