
In the past cycles, Bitcoin has fallen by 50% or more and even exceeded 80% in-depth, but each time it has fully recovered and created new all-time highs. Moreover, investors should be cautious in picking the assets and instead of relying on friends and family or social media buzz to choose the assets for investments, it is highly recommended that investors carry out their due diligence and invest in emerging opportunities and use cases that are growing fundamentally.Ĭrypto exchanges have created online investor education platforms offering tutorials in English and regional languages and educational content on crypto assets and blockchain to spread awareness. Many such tools are available, and investors need to take advantage of these by going through the content available on the website. Similarly, one can opt for a stop order – another smart tool to buy or sell crypto once the price of the crypto reaches a specified price, known as the stop price.

For instance, CoinDCX provides a limit order that allows one to decide on a price limit or parameters for buying and selling cryptocurrencies. There are many smart tools introduced by the crypto exchanges to help investors who want to engage in trading. Similarly, there are systematic plans for crypto where investors can dedicate a fixed amount periodically to invest inĬrypto assets without the hassle of picking the coins as investment professionals examine and research extensively to pick the right coins. There are passive ways to gain exposure where you can lend your crypto assets on exchanges and earn interest while your funds are locked up. In this current bear market, it is recommended that the investors should take a long-term approach to their crypto investments, and they can also explore other ways of gaining exposure to crypto assets. Investors can dedicate this phase to their research on projects to make their platforms' security robust and combat market weakness. It has been observed that in the past few years, the industry has developed new protocols to ring-fence from recurring scams and hacks. The current cycle provides an opportunity for the industry to focus on the infrastructure weakness on the security and compliance side. Similarly, last year the first-ever crypto ETF was launched in the US, providing investors with a new regulated avenue to gain exposure to the asset class. The 2018 crypto crash resulted in innovative use cases and blockchain protocols emerging in Decentralized Financing (DeFi), allowing investors to lend and stake crypto assets. Although Bitcoin is down from its 2021 peak, it is still 10x higher than it was five years ago.Įvery crypto cycle provides an opportunity for industry players to innovate and develop robust products for the ecosystem. However, if we observe historical returns, it is evident that crypto is a long-term game, and those investors who entered early in the space and held on to their investments have gained higher returns compared to any other asset class. But, these investors are now worried about their wealth as the prices have fallen and the sentiments are low.

View Details »There is a rising class of investors who are becoming first-time investors in crypto as they explore faster ways to grow their wealth amidst declining returns in other asset classes such as real estate, bonds, etc. Still, crypto has eventually emerged to outperform any other asset class.

However, it should be noted that such high volatility is not foreign to this asset class, as similar cycles of bull and bear in the market have been witnessed historically. Investors’ confidence has taken a back seat as Bitcoin’s price has plummeted substantially since the beginning of the year, and investors are worried about their future returns. Investors are worried across all asset classes as ROIs have significantly dropped, but the impact is higher on crypto due to the volatile nature of the market. Bonds have suffered, too, and with the looming signs of global recession, crypto markets have also witnessed a downfall. Several assets are undergoing market volatility, including the S&P 500 Index, which recently fell into bear territory as it dropped by over 20% from its recent high. To curb the inflationary pressure, central banks are raising interest rates, affecting the returns on many asset classes globally. The rise of the global pandemic has disrupted supply chains worldwide, leading to higher production costs worsened by the Russia-Ukraine war, and as a result, inflation has soared to a 40-year high in the US. The global economy has faced several challenges in the past few years since the advent of Covid-19.
