Bitcoin Recovery
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The cryptocurrency market experienced its biggest correction of all time in early 2018, with XRP falling from a high of $3.00 to lows of $0.27 over the course of a few weeks. This brought the total market cap down to less than $20 billion — a sharp fall from its peak of nearly $300 billion in early December 2017. But this correction was only the beginning. After spiking to an all-time high earlier this year, the total market cap has now retreated back below $100 billion, and many are predicting further declines as more institutional investors begin to avoid cryptocurrencies and invest their money elsewhere.
How Much Does a Cryptocurrency Worth?
At the heart of the cryptocurrency market is the value of the underlying technology, which is the Blockchain. While there are many different technologies that can be used to build a blockchain, Bitcoin is the most popular due to its popularity and use in almost everything today. Beyond that, each blockchain has different requirements regarding supply and demand, making it difficult to predict the price of a particular cryptocurrency. When it comes to buying and selling cryptocurrencies, you will usually find two types of trading: buying and selling, also called buying and selling volatility. Bid-up, or the asking price, is the price you set for a coin in a given moment in time. The highest price a coin can rise to is its market price, which is the price at which you would sell it to earn a profit. The current Bitcoin price is $19,500 per BTC, making it more expensive to buy a single BTC than to sell it on exchanges. Because the price of a coin can rise or fall depending on a number of factors, including demand and supply, the price volatility you experience can change your decision-making process. Understanding how to trade with price volatility can give you a better understanding of the market and help you make better investment decisions.
Why Is the Crypto Market Downright Decline?
The market cap of the entire cryptocurrency market has fallen from a peak of nearly $300 billion in early December to below $100 billion today. This represents a loss of about 66% of the total market cap in just a few short weeks. As the market has experienced a rapid growth during the past year, many investors have piled in, driving up demand for cryptocurrencies. However, there has also been a notable increase in fraud and hacks, which has led to money being stolen and confidence in the market being lowered.
How to Trade Crypturrency: What You Need to Know
When you buy or sell cryptocurrencies, you are either buying or selling a security. You need to understand the differences between the two to effectively trade. When you buy or sell cryptocurrencies, you are typically using money that is not protected by a government or any sort of financial institution. You can buy or sell coins without putting down any capital, but when you buy a security, you typically put down some amount of money, often in the form of shares or bonds. This is because stocks and bonds have a fixed risk of losing value over time compared to other investments such as cash or property. Beyond that, when you buy a security, you are able to profit from high demand for the stock or bond and sell low when demand is low. Traditionally, this is done through the stock exchange or wallet address, which you can find in your trading application. When you buy or sell cryptocurrencies, you usually use an exchange.
Is the Crypto Market tanking for good?
Given the volatility of the market and the fact that many investment funds are short cryptocurrencies, it is not surprising to see them trading at low prices. Traditionally, when the market is falling, bearish advisors are hired to predict when it will bottom out. However, such forecasts are rarely correct and can even be harmful to your investment portfolio.
The 3 Stressed Coins Shaking Out of the Winter Storm
As the market plummeted in February, 3 major coins experienced significant losses: Bitcoin, Ethereum, and Ripple. With losses of more than 50% across the board, these coins had a hard time recovering. Although each one managed to post positive gains in the next few weeks, the overall trend is still down.
Bottom line
With such a high level of volatility, it can be difficult to know whether a particular investment is worth it. Deciding between buying stocks and investing in cryptocurrencies can be hard, especially if you are not familiar with the different investment decisions each can make. The best approach is to decide if you want to short-term profit or use your money as a long-term investment. If you are interested in making money quickly, consider buying cryptocurrencies as a short-term investment. However, if you want to invest for the long-term, consider investing in stocks.
