Whenever a coin, stock, or market goes down you’ll have a lot of people blurting “I knew it was a bubble” or “I told you so.” This is human nature, this is something skeptical people do and have been doing forever. In contrast, fresh new investors then jump in blindly, while not doing research or educating themselves on the matter.
What is even Crypto Winter?
As the name implies, crypto winter is a period of time when the cryptocurrency market takes a significant downturn. This can be caused by various factors, such as regulatory uncertainty or a lack of mainstream adoption. During these times, investors may lose confidence in the market and sell off their assets, leading to further declines.
Crypto winter can be a difficult time for those involved in the market, but it can also present opportunities. For example, during periods of decline, new investors may be able to buy assets at lower prices. Additionally, companies may be more willing to accept crypto as payment during these times.
Overall, crypto winter can be seen as a natural part of the market cycle. While it can be challenging, it can also offer opportunities for those who are willing to weather the storm.
But are we actually in an accumulation phase or is the market going to zero? Firstly, it is important to look at the data. Bitcoin or the crypto market has been annually going up every single year ever since it came into existence back in 2009.
Something the regular stock is not able to do. So does it look like the market or Bitcoin is going to zero? No, not really. However, that said, this might be the first time that we see the market close after a year with a mild loss.
This is something Bitcoin or the market have never done before – dropping below all the support lines or predictions of everyone, showing that what investors are dealing with is new.
The blockchain and the crypto market is still quite new despite their age saying otherwise.
So, with everyone’s predictions being wrong, does this make them question if it’s all, indeed, a bubble or rug pull? While a project like a blockchain is not a rug pull, coins on the blockchain market may as well be.
That’s why educating yourself on the matter is so vital to ever make it as an investor. Educating yourself on secure wallets and cryptocurrency is important to make sure your funds remain secure from malicious threat actors. Education is, in fact, something that separates a good user/investor from a great one.
Should I pour my life savings into crypto now?
Well, doing things like pouring your life savings into a crypto investment or any investment, for that matter, is not a smart move. Everyone knows that a market or an investment can go up and down regularly depending on the market or assets’ performance.
So, nothing in the finance world is ever certain. Since crypto investments are still unregulated, security risks are quite real. Of course, blockchain technology itself cannot be tampered with yet, but that doesn’t mean that someone can’t hack your e-wallet.
Rather than risking it all, educating yourself about crypto security and investment strategies might be more suited for you if you would ever consider something like using your life savings as investment capital.
It’s one thing to make a bad call and lose your investment but it’s something entirely different to have your investment stolen by hackers and having no authorities to complain to. That’s why every experienced investor protects their investment by using diversification and proper cybersecurity measures in case of crypto investments.
Featured/Top Image Via: Flickr
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