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Should you invest in Crypto anymore?

It has been on a rough few quarters for the crypto investors as we have seen a downward trajectory in the prices of cryptos like BTC , ETH after they touched their all time high in November last year and is now Bitcoin worth around $29,000. So should you consider buying the dip or stay away from the market with the recession ahead?

Why prices of top cryptos got crashed ?

The Bitcoin price is moving around $29,000, as of 11 June, according to the data from CoinMarketCap. The price of BTC and several other top cryptos have suffered huge falls in December 2021 and the downward trajectory is continued so far in 2022.

Cryptocurrency has remained controversial and volatile asset till now. That was made evident in May this year, when the crypto market fell by nearly $200 billion in one day, led by the collapse of the top stablecoin TerraUSD.

Of course, price fluctuations are not new in the crypto market, and many have been characterizing crypto and NFT as an bubble for long time. Critics have called BTC and NFTs as worthless asset.

What caused the recent dip :

  •  Ambiguity around rising interest rates in the UK and US, causing a mass sell-off .
  •  China's move against cryptocurrency made a huge impact in the price.
  •  The ongoing clash between Russia and Ukraine also had a serious effect on the   global   stock market and crypto space.

Should you invest in Crypto now ?

Despite the volatility and lack of regulation, crypto is seen as an evolution in the finance system by many. Joe Biden's move to bring the digital USD to Super Bowl ads highlighting the growing desire of government and corporate institutions to legalize crypto like stocks and other assets.

You should be aware of the fact that there's no protection for crypto you buy from the exchanges, even though few say it's insured. And a important thing to keep in mind is that digital currencies are highly volatile and they are driven by the tweets of influential people and that's a problem. It's easy to get swayed by this but the keep in mind this can easily be washed away with a crash.

You should be vary of crypto frauds, famously known as pump and dump scheme, in which they encourage people to buy a worthless token, causing its price to skyrocket. When it does, the scammers will square of their position, causing the price to plummet for the rest. 

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