Cryptocurrency is a complex beast. While Bitcoin (BTC) and Ethereum (ETH) have seen big spikes in value over the past few months, a recent crash has sent some hopes plummeting.
It appears that SpaceX and Tesla mogul Elon Musk’s decision to pull acceptance of BTC from Tesla Motors could be to blame for a small portion of the cryptocurrency crash. Certainly, Musk’s promotion of Dogecoin led to large spikes in value as well.
What’s more, there have been big changes over in China. It seems the government’s outright ban on crypto has contributed to the slump as well.
While traders who didn’t get out quickly enough are desperate to see values spike again, newbie investors might actually have a golden opportunity or two that they can really take advantage of. It is always good to immerse yourself in the markets and different learning programs if you really want to make it big in crypto. This coinlife.io review, for example, might be a good start. In fact, we highly recommend Leaprate for all kinds of useful investing resources.
In the meantime, let’s consider what new traders can do to really take advantage of the recent crash, and why it won’t mean the end for crypto as we know it.
The first immediate benefit of buying crypto off the back of the crash should be obvious. The crash has left those worrying about its future either clinging to hope or casting away their last few coins into the ether. What’s more, it’s now much cheaper to get involved than it was in previous months.
Therefore, it’s going to be easier for cautious traders to buy into crypto for the first time. The only real issue that stands in your way, of course, is concern over whether or not BTC and other crypto will reach the same heady heights again. Will it all be worth it?
Cryptocurrency is no longer a fad. It’s here to stay. It is also famously volatile, which means we are likely to see big spikes in the years to come once more. There is absolutely nothing to say that BTC won’t break its own records once more. It is a leap of faith, but it’s one that’s reasonably affordable right now.
Some crypto trading experts are keen to suggest that buying low and slow is absolutely worth the effort. Many cryptocurrencies will rebound from the crash by design, and what’s more, as mentioned, volatility is all but expected.
However, newbies should take care to not leap too quickly into the markets just yet. While the dip was huge — crypto is reportedly $600bn poorer — bouncing back is going to be a longer endeavour. It’s a very good time for newbie traders to take the time to learn about crypto, its nature, and how to navigate such moments in the years to come.
Keeping an open mind is key, and so is buying slow. Yes, BTC is cheap right now in comparison to where it was, but volatility isn’t something you should ever really toy with.
Keep your options open
A very important lesson that newbie crypto traders should take on board post-crash is that they shouldn’t place all of their money behind one or two specific markets. It’s tempting to get back on board BTC or to leap onto Dogecoin as mania rises. However, the wider your options, the better.
There are many cryptocurrencies out there. It stands to reason that some traders may leap onto alternatives if they were scared off by the BTC dip. Therefore, now could be the perfect moment to seek out a lesser-known coin to put minimal cash behind.
Ultimately, this most recent crash has taught us that placing all your money behind one cryptocurrency and expecting it to regularly recover from dips is a no-no. However, despite what some sources say, crypto is not a dud. It is sewn into our culture to the extent that its disappearance overnight would be the work of some horrific miracle. It simply isn’t going to happen.
However, newbie traders should take this moment to carefully plan their crypto strategies for the years ahead. It’s no longer a short-term win, but a game that you must now play low and slow. There’s no real way to tell quite what crypto will do next, and with huge names like Elon Musk able to change values completely with just one or two tweets, these are very strange times indeed.
Just as online casinos continue to proliferate, so will crypto trading markets. Newbie traders simply need to look at the bigger picture and take things nice and slow for the best chances of success.