Do You Want to Know Whether It Is the Right Time to Invest in Cryptocurrencies or not? Stay Tuned!
With the evolution of the crypto market, aside from art investment funds, investments in cryptocurrencies have become more accessible than a few years back. However, the very recent ups and downs in the crypto market have raised the subject of debate among crypto enthusiasts. Why is it so? Let’s have a detailed look!
Probable Factors for Bitcoin Crash
The market value of Bitcoin was almost non-existent when virtual coins were first introduced. However, in a matter of four years, the value surged to $1000. In 2017, initially, the value went up to $20,000 and again dropped by $3300 within a year. Many enthusiasts consider XVG to BCH exchange since Bitcoin was hitting milestones despite all the high volatility circumstances.
Bitcoin, one of the world’s largest cryptocurrencies, has witnessed a devastating drop as much as 30% in two weeks and recovered slightly ever since then. Here are a few probable reasons behind the drastic crash:
*Elon Musk’s tweet about Bitcoin mining coal use and how it has an adverse impact on the environment.
*US Regulations highlighted uncertainties and doubts regarding the cryptocurrency market earlier in May 2021.
*China’s tight crackdown on cryptocurrencies led to its decrease in demand and asset value globally.
It raises the question, is it the right time to invest in cryptocurrencies now? First, let us understand the dynamics of the crypto trade.
Cryptocurrency Trade
Though it cannot replace the traditional currencies any time soon, cryptocurrencies have gained significant importance among youngsters over the past few years. Many well-known analysts believe that cryptocurrency is also to be accepted as a mainstream asset, especially during the global outbreak of the pandemic, which rose the valuations to the next level!
Tips for Investing in the Right Cryptocurrency
You might wonder how to choose the right cryptocurrency to invest in; consider the following tips. Keep reading!
1) Look out for cryptocurrencies with strong communities and followers with genuine interest. I recommend Algorand as it is currently in the top 50 biggest cryptocurrencies by market cap. You can buy ALGO Australia which allows participants to enter the blockchain and participate in voting on the protocol, proportionate to their holdings and was created on the vision of inclusivity, and providing the means of a borderless economy.
2) Make sure to do a fundamental analysis of their team, leadership, ambition, strength, etc. It is as important as technical analysis.
3)You can avoid scams by researching which cryptocurrencies have a strong reputation and trustworthy credibility in the market with probable future success chances. You should also only trade using registered and regulated brokers, sites like bit index ai can help match you with CySEC regulated traders so that there is less risk of being scammed.
4) Understanding the price history of the coin is essential to ensure a solid investment in the future.
When Is the Right Time to Invest?
Cryptocurrency investment has always been a tricky space, but the price movements are no longer unexplained. Timing the market is difficult, especially for a new investor. But if you do your homework about the prices, it might reduce the risk and uncertainty to some extent.
Closing Thoughts
To get a higher return, you need to accept higher risks. Remember, you must not invest in Bitcoin or any other popular cryptocurrencies from your savings or emergency fund since this market is still highly uncertain. We hope our analysis of the current Bitcoin market situation, along with a few essential tips, has helped you to get to a conclusion. If yes, do let us know!
