- Key ideas why you should invest in the bearish market
- Leading cryptocurrencies that are now at low price
- Should you invest now in the bearish market?
- What are cryptocurrency and blockchain for novice traders?
Important: This article is purely based on the writer’s knowledge of technical analysis alone. Please do not take this as financial advice and instead do your own research before diving into the world of cryptocurrency trading.
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This article that you are about to read right contains information explained in the simplest way possible. If you are looking for an article that explains it like you are five. This article is right for you.
Did you know? If you bought 500 Ethereum 7 years ago at a price of $0.43 and held it until today, you would now have over $650,000.
Source: CoinGecko – Ethereum price from 2015 to 2022
Let me explain first what is cryptocurrency for the sake of crypto beginners:
Cryptocurrency is a digital payment system that does not need banks and other centralized forms of government to function. One of its amazing features is the so-called peer-to-peer system that enables anyone to send funds across borders without needing any middleman.
Additionally, cryptocurrency possesses a high level of security and coding to safely transmit transactions from point a to point b. All cryptocurrency activities are recorded in a public ledger with the help of blockchain technology.
Fact: The first cryptocurrency, Bitcoin, was founded in 2009.
What is Blockchain?
Cryptocurrencies are powered by a technology called blockchain. A blockchain is like a digital ledger. By using cryptography, transactions are kept safe while the database is decentralized.
Every time a transfer takes place, a network of computers called nodes must verify the transaction before it can be approved. Once this happens, a new ‘block’ will appear ‘chained’ on other previous exchanges. Hence the term, blockchain.
Investing in cryptocurrencies during a bear market: Reasons to do so
You can buy cryptocurrencies at the lowest price
You normally hear these words among traders, buy low and sell high. However, it is hard to identify or to know if the crypto is already at its lowest. A bear market is an opportunity for traders to buy cryptos at a discounted price compared to other days when the market is at its normal phase or bullish behavior.
Recovery and growth are underway
As mentioned in number one, the bearish market is one of the best ways to find out when the crypto is at its lowest. However, it is not limited to that, bearish market also enables traders to identify the strongest companies in the market. It allows us to examine how they are currently managing the current market crisis and their market decisions.
Therefore, choosing the best crypto to invest in during this time when most digital assets are down have never been easier. Make your investment grow by selecting a network that has the potential for growth and success in the future. Take advantage of what the bearish market is offering.
You will learn to control your emotions.
Bear markets will allow traders to see and experience how cryptocurrencies, regardless of what they are, fall or break out from their all-time highs. By coming across this, traders will have a better understanding of the performance or behavior of cryptocurrencies. It will also provide crypto holders the ability to have better control of their emotions when they are inside the crypto market.
Leading cryptocurrencies that are currently at their lowest price
Bitcoin (BTC)
Source: Tradingview
Bitcoin, the king of cryptocurrencies remains to be the favorite digital asset of many crypto investors around the world. In 2021, BTC was able to reach the skyrocketing price of almost $70,000. Today, due to various happenings globally that affect the crypto market, the price of BTC trades below $20,000.
Ethereum (ETH)
Source: Tradingview
Ethereum remains to be the cryptocurrency seated next to Bitcoin. This digital asset is famous due to its technology that allows new crypto projects to use its blockchain in creating their own network. Currently, ETH trades at a low price of $1200 from its all-time-high (ATH) price of nearly $5000 in 2021.
Solana (SOL)
Source: Tradingview
Solana crypto uses Proof of History (PoH) and Proof of Stake (PoS) consensus algorithms for high throughput. The Solana blockchain infrastructure is designed by a team of networking engineers to meet the needs of modern internet applications. Trades at $29.6 from its al time-high price of $259.
Polkadot (DOT)
Source: Tradingview
DOT’s recent price is $6.14 from its ATH price of $54.98. Polkadot is a platform that allows diverse blockchains to share their unique features while pooling their security in a trust-free manner. Polkadot can be summarized as a highly scalable heterogeneous multi-chain technology.
Avalanche (AVAX)
Source: Tradingview
The Avalanche blockchain platform is a high-speed smart contract platform. Using a proof-of-stake consensus protocol, validators secure the network. The technology that the network use reportedly provides high speeds, low costs, and minimum environmental impact. AVAX trades at $15.9 per crypto.
Should you invest in Cryptocurrency? (Author’s opinion)
In many people’s minds, cryptocurrencies are the future’s money. Investors feel secure because the data is stored in blockchain, which makes tampering and altering difficult. Despite the fact that theft and scams cannot be completely eliminated, investors can expect to invest safely in the future.
Shon Anderson, chief wealth strategist at Anderson Financial Strategies on diversifying your portfolio during the bearish market:
“Each asset class performs differently in various economic and financial environments. So, when you have multiple asset classes, you should have more opportunities to have pieces of your portfolio make money in almost any environment.”
Do you think you should try crypto? Yes! However, make sure you invest wisely.
Disclaimer: The views and opinions in this article belong to the writer alone and they do not necessarily reflect the position of CryptoNewsLand (CNL). No information in this article, whether expressed or implied, should be taken as financial advice. Remember that investing in cryptocurrency poses significant risks to your asset. Hence, CNL strongly recommends all readers perform their own in-depth research before investing in cryptocurrency.
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disclaimer read moreCrypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
