Cryptocurrency Markets Take a Breather: what this means for investors

Currently, all sorts of people, from financial gurus to “experts” on cryptocurrency, have been shouting that Bitcoin is in a bubble, and is about to plummet to disastrous numbers before you can even snap your fingers. To be honest, it was enough to switch investor sentiment like a light switch.

The BTC is just going through consolidation

No asset is completely predictable, and of course, the cryptocurrency has had big swings. One thing, however, was not the same as always: before, the rules of regulation were a huge question mark, and the number of people who were actually involved in the crypto industry was not that big.

Fast forward to today, and we have huge big companies like Tesla allowing Bitcoin to be used to buy cars, and payment companies like Paypal allowing users to buy, sell, and pay them. Even credit / debit cards that reward users in Bitcoin are becoming increasingly popular. The rules have also clarified a lot, and although they are far from perfect, some countries have taken the initiative to implement laws with cryptocurrencies in mind.

Any investor who has been in business for several years cannot claim that his assets have always grown and never fallen. This is not the case at all. Each company or asset class goes through a period of consolidation, when the asset is stuck in a certain range, but uses it as a building point.

Since Bitcoin first hit $60k a couple of weeks ago, it hasn’t really moved out of the lower$50k to $60k range. While it fell to $49k last night, it quickly recovered, and was in the 50k range. That’s a good sign. Bitcoin is not in free fall, it is not going through a crash. It is undergoing consolidation.

Alt Market Echoes Bitcoin

Altcoin markets have also been volatile at best. The crypto market is under strain, and altcoins have also fallen significantly. All this together gives the feeling that everything is being consolidated and settled. For some investors, this may be a good buying opportunity, especially if one of the cryptocurrencies in the portfolio has exploded like DOGE.

Many may not believe it, but it should be said this: the fall in the market really benefits the average global investor, who finally begins to earn “adult money” and can invest it. Even just a week ago, the prices at which they bought assets were higher than they are now.

But, the most important rule that an investor should learn during his investment career is to conduct his own research. Analysts and gurus are wrong, so doing your own research is the key not only to saving money, but also to financial success.

You can’t believe that a particular crypto asset will skyrocket just because your favorite celebrity writes about it and all your friends listen to it – it’s nonsense! It is always in the investor’s best interest to conduct their own extensive research before making a purchase.

You can get acquainted with the tokenomics of the project, visit their website, check the addresses of the blockchain, check the transparency of the developer. You need to check everything, even the source code on the main site, and make sure that the investor makes the right decision, and never risks more than you are willing to lose at any given time. He should remember that he may wake up tomorrow richer by several thousand, or lose everything.