The Crypto Crash and New Investors
Well it's sort of frustrating for those new investors to have invested in cryptocurrencies past year and now the prices of cryptocurrencies have crashed significantly.
I was reading a story of an Indian investor who was influenced by his friends has been investing in the cryptocurrency from the last year and according to him with every dip, he has been buying crypto till the last week but now he considers himself to be stuck as his portfolio is down in red and he thinks that selling it will be a loss for him.
Now, there will also be some more investors as well who may have invested and now they may feel stuck. And probably some may have sold thier cryptos in panic and took some losses.
According to Bloomberg, the latest crash have erased more than USD 1 trillion in the crypto market.
Several other investors in India are now in panic over investing in cryptocurrency back in 2021 bull run as they see their Portfolios now being in red and have decreased significantly.
Experienced investors were expecting this correction but the average investor wasn't. Many investors who got into crypto last year are now trapped because they are at a loss.
It's good that investors carefully evaluate the current dip in prices and this volatility shouldn't scare them off.
The sharpe fall in the price of Bitcoin is a worry for serious investors but market watchers say they shouldn't panic.
And probably rightly so, crypto market is highly volatile and I don't think that these ups and downs should be a sign of worry for investors if they are looking hold their cryptos for a longer term.
Good for investors not to sell in panic and take the losses instead they should hold their cryptos and wait for the next bull run if they want to take profits out of it.
Not a financial advice.
Posted Using LeoFinance Beta
https://twitter.com/eddiesun4u/status/1485283009515474950
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If people understand how Bitcoin and crypto works, they will be no fear of high inflation... Inflation will hit assets that have no total supply, and we all know what those are... A doubling amount of fiat currencies in the last 2-3 years had to lead to this... Bitcoin doesn't have that problem... Bitcoin doesn't care about the inflation, politician, FED, etc...
Yeah
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This is the inherent danger of investing which is why no one should ever invest more than they can lose. Short selling ruins markets which is why short sellers pay the highest tax penalties for making a profit.
This is just another point to why Hive Enigine is so great. Hive went from almost $3 back down to about 84 cents. I am not worried at all because most of the Hive was earned I just do not spend that much while in the dip because I am in a buying mode trying to take advantage of the low price before it goes back up.