Volatility is a common feature of cryptocurrencies. There are times when people hit a good strike and earn huge amounts. Whereas there are other times when the hit goes on the wrong side causing them serious losses.
The Crypto world never put down a person into a zero level until he is capable enough to decide wisely on the point. Cryptocurrencies have been bouncing up and down. This has caused many to frighten and some to boldly pull up by buying dips.
Many traders were rattled by the notorious volatility. It even engulfed the people into confusion who traded. People who trade with bitcoin supreme get the latest updates of the price daily. This helps them to decide wisely but questions come to mind. Why is the cryptocurrency crashing and how can we cope with it? Let’s have a deeper look at this matter of concern.
In 2013 the first roller coaster ride of the most renowned bitcoin happened. It was heightened from $13.50 to $220. Then in November 2013 bitcoin flared up to $1075 that was a big achievement that made many successful in gaining profits.
Since 2013 many ups and downs occurred during the time period until 2017. During this time many improvements were also made. Digital wallets, the organized blockchain technology, and other revolutionary changes caused a serious rise in the prices.
As more of the people started mining and many competent people entered the crypto world. They gave a new dimension to virtual currencies. People started adopting cryptocurrencies because the market value was increasing.
2017 gave us better exchanges that made transactions much easier. The Etheruem projects increased the value more. Such inventions created better investing options as well.
So, 2017 is the major rally of the time. $20,000 was reached in December 2017 and many critics started calling this a price bubble. People were eager into this but then the crash of decline happened. By November 2018 the price fell down to $3500 and that was the sad news!
The worst part is the decline of these currencies. But the game is not over yet! It is up to the person to strike the ride. If such a sudden situation occurs two options may happen.
One is that the trader heavily buys the currencies causing them to move up with their efforts. While some heart-rendered traders may lose hearts by liquidating all their assets in frustration. This would be a great loss!
What should be done?
Whether the trader is alone or in a minor group, the best possible way he can do is by buying the dips. Even if the price is declining the digital assets buying should not be hindered. The inconstancy of virtual currencies can be solved in this way. The majority of the cryptocurrency is driven by the new money. The only way the price would rise that more and more people pour into buying them.
In this way, a new reverse effect can be produced if the majority of people do this. When the traders will buy and spent all their cash on the investments. Once they do this, then they will no longer make buy trades. Rather they will start with the sell trades. This is somewhat speculation trading. However, there are many people who buy a lot of assets but then stop trades. If the growth is not sustained the newly bought will have no impact.
As a result of this other people would get scared of the losses and they will start selling their assets. Some panicked ones would even get baffled and bid bye to the crypto world. This can cause further declines.
A simple and lucid result is that the market usually crashes when the services provided by the cryptocurrencies need improvements. The decline is also when people are unable to comprehend the technology. There are many people who do not even know about setting up a digital account. So there should be an awareness of it. However, after getting an education you should also be speculative in buying dips to save the market.