It’s safe to say that the digital trading market has become one of the most volatile markets to invest in. With the sudden dip in major cryptocurrencies owing to the fallacies in the global investment scenario along with Elon Musk’s famous remarks, the value of famous cryptocurrencies like Bitcoin and Ethereum have fallen sharply.
So is this a good time for you to invest in Cryptocurrency?
With the crash that followed in the cryptocurrency market, there has been heavy selling in the market with investors looking to offload their holdings in order to minimise all losses with the volatility that the market portrays. However, a lot many are considering buying these cryptocurrencies during this dip with the hope that they will rebound soon enough.
What’s key to understanding this sudden dip in the price of these cryptocurrencies is largely by understanding that this sudden wave is caused by a series of tweets made by the famous Elon Musk, Tesla’s CEO who stated that Tesla would not be accepting Bitcoin as a currency for car purchase payments. This, accompanied by China’s tightening on crypto regulations further amplified the hit that has disrupted the digital trading market.
Investing in such a scenario would be heavily reliant on whether you are willing to accept the risk or not. If you are someone who is considering a long-term investment, then this may not be the market you are looking for with its high rate of volatility and risk. Investing in crypto requires a high risk-bearing appetite and financial backing. The returns will be a lot higher than any traditional investments that you make however there are bound to be bouts of extreme volatility in the market too.
As is the norm while making an investment decision, the key is in maintaining your calm and not letting go of your investments in sudden haste should any uncertainty arise. You must also consider diversifying your portfolio and investing in cryptocurrencies which are bound to become the next big thing.
With the dip in cryptocurrencies today, the virtual coin market is set to rebound sooner than later. Although, for a safer investment bet, we wouldn’t recommend investing in the digital trading market. Cryptocurrencies are currently one of the riskiest assets to invest in and if you are not looking out for any tumultuous fluctuations or large prices swings, then it’d be a lot safer to invest in traditional financial markets.