Since last 1 week crypto currencies are facing the heat and melting down in big ways.
Bitcoin reached an all-time high near $65,000 in mid-April, Made new Low on May 22 at $30,000. Currently trading around $34 K as on May 23.
1 Trillion Wiped out
Crypto holder lost more than 1 Trillion in value in last one week.
50% off from its all-time high
The biggest news, by far, is the snap fall in Bitcoin prices. Triggered mainly by the China ban, Bitcoin touched a low of $30,000 this week. This is more than 50% decline over the all-time high of $64,000 from mid-April this year.
The cryptocurrency market is under a serious collapse, and traders and investors are under pressure. We need to wait and see how the market is going to change in the coming days.
Elon Musk Factor
With one tweet Elon Musk took the crypto market with a Storm.
Doge 2 The Moon
Chinese Vice Premier Liu He and the State Council said tighter crypto regulation is needed to protect the financial system.
Bitcoin’s price on Coin Metrics slid more than 6% as news of China’s statement circulated.
China’s move to ban financial institutions and payment providers from offering services related to cryptocurrency transactions tanked prices of many cryptocurrencies, including the popular ones like Bitcoin, Ethereum, Binance Coin and Dogecoin, among others.
We recommend you below video : Is Crypto Dead?
What Is Cryptocurrency?
Cryptocurrency is a digital mode of payment that is decentralized. Decentralized services, like crypto, don’t need a centralized authority which gives them the ability to be censorship-resistant, secure, and hack-proof. There is not one, but many cryptocurrencies in the market. With few exceptions, cryptocurrencies work using a technology known as the blockchain, which stores transaction records. In simple terms, think of cryptocurrency as a digital coin.
How Many Cryptocurrencies Are There In The Market?
A whooping 6,700 and counting (new crypto coins keep launching)! Many companies have issued their own cryptocurrencies like Facebook’s Diem. Every crypto raises money through initial coin offerings or ICOs. As per the latest figures, the total value of all cryptocurrencies combined is US$1.82 trillion. Out of the lot, Bitcoin is the highest valued cryptocurrency with a market cap of US$762.70 billion.
What Made Cryptocurrencies So Popular?
Crypto enthusiasts believe that cryptocurrency, like Bitcoin, is the currency of the future. By using cryptocurrencies, we can eliminate the need for central banks to manage the supply of money since banks tend to reduce the value of money via inflation. Cryptocurrencies are built on blockchain technology, which makes this form of payment the most secure one out of all the current options.
Are Cryptocurrencies A Safe Investment Option?
We have a dedicated article for this which you can find here. But to summarize, the crypto market is extremely volatile. While a section of the population looks at cryptocurrency as a futuristic form of money, the other section just looks at it from an investment point of view – prices go up, you sell, you get profit, and vice versa. Bitcoin started off with a value that is equal to peanuts, but now the price skyrocketed. Think about the people who invested in Bitcoins when they were first launched, they made millions in profit.
Just like a stock market, crypto investment is a game of risk. Over the course of time, the majority of cryptocurrencies increased in value with frequent lows caused by large hedge funds and government regulations. But if you have the funds to take risks, it’s a wise bet.
How To Buy Cryptocurrency?
To invest in cryptocurrency, you need to know about crypto wallets and cryptocurrency exchanges. A Crypto wallet is an online app that will store your digital assets. To buy the digital coins, you will need to make an account with a crypto exchange of your choice. Here’s a list to help you get started. Once you have the account, you have to choose the crypto of your choice and buy it by placing an order on the platform. Here’s a detailed article on how to buy cryptocurrencies.
Source : Analytics Insight