Cryptocurrency Facing a Deadly Crash:
As we all know, cryptocurrency is facing a deadly crash and downfall. Here comes a question: why is the crypto market facing a blood bath?
Before diving into crypto market conditions, let’s have a quick recap of what exactly cryptocurrency is.
Cryptocurrency is a digital asset:
Cryptocurrency is a digital asset, a digital currency that is not owned by any government. It means it’s not under the control of any centralized bank or government. Every selling and buying is independent of any centralization transcript of any specific government. When we talk about any traditional currency, it is under the control of the government, centralized, and controlled by different local or international banks. The traditional currencies are quite stable. It never happens if today’s dollar rate is 192 Pakistani rupee, and tomorrow it will dramatically decrease to Rs.50 or will increase to Rs. 300.
So unlike traditional currency, crypto is not centralized and managed by any govt so its market behaviour is extremely volatile. Consider today any crypto rate is $3,236. After a few days, it dramatically becomes $17,527, doesn’t need to get shocked. Frankly speaking, I am not kidding. What are the facts that happened in 2018 with bitcoin? These dramatic changes in the value of crypto make it the riskiest business ride. You just never know what will happen next.
Who is controlling this Crypto Market?
Here again, a question arises, who is controlling this market and why did a sudden downfall happen in 2022? When everything was going super cool.
Here are a few things that must keep in mind. This is not the first time that the crypto market is facing such a crash. This has become a pattern. If we look into the past few years’ graphs, we can see a huge pump and dump, just like a roller coaster ride. Sometimes all of a sudden, the market shows a huge pump and great rise in all the values of cryptocurrencies, and after a few months there comes a sudden dump.
Who dumps or pumps the market?
Must be wondering Who dump or pump the market?
So, the answer is the whales of the crypto market, oh yeah, more than 70% of crypto assets belong to the big whales of the crypto market. They handle the market, pump, and dump the assets as and when they want.
You can see with just a single tweet of Elon Musk in March 2022 about bitcoin as a mode of payment for Tesla, that the world has seen a 20% rise in the value of cryptocurrency in a day, making bitcoin a huge jump by $39,000.
There came another twist in the story. Within two months, Tesla refused to accept bitcoin because of environmental issues, which gave a big turn of 15 percent drop in the crypto market.
Let me briefly describe the concept of the pump and dump in the crypto market in simple words.
When we see the actual market, we can relate that dump is also necessary when a market is going super high, no one will try to invest in it. Just like the bitcoin prices were skyrocketing to $48000 a few months ago. And to make a balance, there comes a drop or dump. And after completing a cycle or a trend to make the market stable, the crypto market is pumped with a gradual arise. That is expected by experts within a few months.
What is the future of crypto, should we buy it or not?
Here comes another question, then what is the future of crypto, should we buy it or not?
And Is Buying crypto worth it in 2022? And if the answer is yes then, when is the perfect time for this?
Too many questions!!!! I’ll discuss the perfect time to buy or sell at the end, however first we must understand whether it is the end of cryptocurrency, and what is the future of crypto.
As I have mentioned earlier, it’s not the first time that cryptocurrencies like bitcoin, etc faced a downfall or crash, this happens often and it has become a kind of cycle for the past few years. We can see this is happening with all coins. We can relate this with the stock market, as prices go too much, there comes a downfall for some time.
No one can deny that bitcoin has survived its 10 years with huge ups and downs, and when we want to know whether this thing is worth it or not, we consider why it was designed or why something was started at first.
The reason for designing any cryptocurrency is the decentralization of your assets, it’s you and only you who is the actual king of your wealth, no govt., country, or bank can control your wealth and assets by limiting its transactions rate at a time. Crypto was designed to give a hold over the assets of its owner making transactions as simple as the teleportation of the assets around the world with just a goof click. So having this strong base it’s nearly impossible that the crypto will end in 2022 with a crash like this.
Here we can see another important term that is “Panic Selling.”
Before going into any field, not only a roller coaster ride like the crypto market, complete research is very crucial. We can see three kinds of investors in crypto or any market.
The whales hold a lot of the assets.
The professional retailers that know what they are investing
The inexperienced and unprofessional, risk-takers don’t know what exactly they are doing and in which project they are investing.
So, whenever any downfall or crash arises, the first two category members know how to deal with the stress and pressure of the market because they trust in the market or that certain project. Just as we can see, Sam Bankman-Fried has lost almost half of their wealth in this downfall of the crypto market, but he believes in a huge recovery in crypto stocks.
However, the third category of investors gets panicked in a situation like happening in the 2022 crypto crash. They start Panic selling their assets at low rates and this results in losing their wealth during the downfall period. And whenever there is hype they start investing by purchasing at high rates of ATH (All-Time High). In short “Buying at the wrong time”.
So what is exactly the right time to invest in crypto, and when to buy or sell?
I want to make this clear that every dip is not worth to invest. We need to understand a thing that we call “trend”.
Make “Trend your Friend”. A perfect time to buy is to observe the trend, if you see the graph of any crypto coin, you’ll see a trend. When there is a downfall trend is going and there comes a dip, don’t rush for that dip. Safe playing is a good trick. If you don’t want to lose the dip, you can invest a very little amount.
“Remember to follow the trend”.
Don’t take any step until you see any change in the trend.
For example, if the crash is happening in May, it’s a dip and maybe not a perfect time to buy crypto coins because this crash seems to be nowhere near ending till July or August.
Same as the case with selling your coins, if the market is showing a pump, don’t rush. Wait for the evident change in trend.
Remember folks! Always invest the amount that you think if you lost it won’t hurt that much. Borrowing from a friend, selling your precious car and favorite iPhone, I think this is going to be more painful if you lost them. So a friendly piece of advice,
Do those actions, you can bear the reactions.
The predictions about the rise and fall of cryptocurrency by the experts are in the end just predictions. No one exactly knows what will happen in this extremely volatile crypto market. However, one thing is evident: it’s very hard to believe that this bloody crash is the end of cryptocurrency. Let’s see what will happen in the next few months. Will the crypto market be pumped again with a huge rise in every coin, or is 2022 the end of the crypto world?
Stay tuned with us for the latest updates about the crypto world.