From past couple of days we have seen the entire Crypto Market is sliding down hard. This has created a lot of panic in people. I have been getting a lot of messages over various platforms, everyone is getting panic about their holdings and no one seems to know, what cryptos they should hold to keep their funds safe from the disaster we are feeling right now.
There are couple of reasons for this crash mixed with hole lot of other things, i have tried my best to provide the accurate information and letting everyone know, what is happening to the market according to my opinion.
- We are in a Market We all need to accept one thing, despite of crypto currencies & blockchain technology being a revolution, we are still operating under a market, where it is based upon two fundamentals "supply & demand". If there is enough demand and other person is willing to pay a higher amount that is what we know as market going up and reverse of this is always possible no matter what the technology is.
- South Korea Banning Crypto Trading
- China Banning Crypto Mining
- Panic Selling
- Long Term Holdings are Good
- Is it a Bubble?
- What can you do, when market is crashing hard?
According to many news sources, South Korea has decided to put a ban on crypto currency trading. Majority of banks in South Korea has decided not to process bitcoin transactions, which has resulted a panic not only in South Korean people but also worldwide as many investors in South Korea are already trying to take their investments out from crypto market. However in recent update this decision has been reversed because of people's protest against this government action, you can read more about this news here
Other reason of this hard crash is Chinese Government has announced the ban on crypto currency mining. This is not the first time china has taken a negative action against cryptos. China has always been a bully when it comes to crypto market. We know that majority of mining is being done by china itself but that doesn't stop other countries to step-in and fill the gap. For the matter of fact, recently a new crypto was announced by Russia by the name of "Russian Miner Coin (RMC)" this company is partially owned by Russian Prime Minister Mr.Putin with the vision to bring bitcoin mining to Russia and to compete with Chinese miners.
This is a major point. Believe it or not news plays a big role in market movements weather it's crypto or traditional share market. There are more people in crypto to make money rather than believers. Just like we know a trader's point of view is always to buy at low and sell at high. There are people who doesn't understand the fundamentals of blockchain technology at all. So, it's understandable for them to be panic and keep on selling when market is at down trend.
If you are one of those people, who learn about the technology before investing in any crypto currency and try to hold them for longer period of time. You should be safe even when the market is going down like now. As what many people believe and also in my opinion, cryptos are here to stay. Market movements like these would not effect any of the investments which are being hold but it also depends upon, which crypto currency is being hold and what kind of solution it's providing to the world.
In my opinion, I would not deny the fact, for some cryptos being a bubble but at the same time not all of them. We need to understand, Blockchain technology is all about freedom. One thing it brings to the table is anyone can build and role out their own coin depending upon their knowledge and will. That makes it very risky, specially for people who do not understand this technology. But calling Bitcoin a bubble, who started all of this and introduce us with blockchain technology is not justifiable.
If you believe in the technology of a coin that you have invested in and holding it for long. Then your are pretty much okay. but still There are number of things which can be done such as taking your crypto to a stable currencies like: USDT, BitUSD (I would anytime prefer bitUSD against USDT, when it comes to a stable store of value).
If you are unable to move in anyother crypto for stability then holding your funds in Bitcoin is always the safest option, in my opinion.
Note: I am by no means a financial adviser, i like to write about my own research and experiences, Always do your own research before investing in any crypto currency.
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