Bitcoin Crash
During this post I am going to talk about the recent cryptocurrency crash that has occurred and why people shouldn't panic. This is a very hard time when the market drastically decreases like this and can be worrying for all crypto investors, but in my opinion this is just the market adjusting and it is not a good idea to make a rational decision based upon fear as this can lead to regret. If you are really worried, calm down do your research and make a rationale decision whether you believe in cryptocurrency for the future or not.
Why Bitcoin Crashed?
There are a number of reason why cryptocurrency prices fluctuate, for instance when big investors (whales) transfer large amounts of money in and and out of crypto this affect the price dramatically. Right now there are a lot of investors who have a lot of money and can influence the market, but over time as more people start using cryptocurrencies this influence whales have will slowly reduce resulting in a more stable market. Another factor that may have affected the price of bitcoin is that countries like China are trying to ban bitcoin resulting in people selling due to the fear of loosing their investments. Similarly to the last point whenever a lot of money is withdrawn from the market this drives the price down dramatically, but doesn't necessarily mean the price will not go back up and as we've seen before bitcoin has always recovered from any crashes in the past.
Good time To invest?
In my opinion whenever the market crashes like this it is a great time to invest, as the price of many coins are at an all time low. If you don't invest you will likely look back a few months later and regret the opportunity you have missed. At the end of the day you have control and are responsible for the money you invest this is just my own opinion and is not financial advice. Another mistake I commonly see is when traders who have some money invested in a coin that has crashed sell and buys into another coin that is at an all time high and there is a lot of hype for. Personally I would wouldn't sell when the market is down instead I would hold and wait for the market to pick up.
Look at the technology from a bigger perceptive
Cryptocurrencies have huge potential for the future and a market crash such as this should not scare us as if we think about the long term adoption and price increase this shouldn't worry you at all in fact you should be exited that the market is fluctuating like this in comparison to some fiat currencies where money is printed any injected into the economy to keep it from ever crashing, thus resulting in a ticking time bomb ready to explode. For short term investors it may be a good idea to understand how the cryptocurrency markets works before investing. I am sure a lot of short term investors have profited and will continue to however crashes like this may worry you if are not prepared.
I hope this information has widening your perspective on cryptocurrencies and if there is something you are still not sure about feel free to drop a questions in the comments and I will be more than happy to help.
