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.
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