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How Can We Survive The Volatility Of The Crypto Market, As Investors And As Merchants?


Bitcoin and other cryptocurrencies hit new lows on 22 Jan 2022, and the ongoing crisis has wiped off more than $1 trillion from the global crypto market value.

Bitcoin was hovering at $35,000 per coin, and the largest digital currency by market value had dropped by more than 40% from its peak in November 2021. In November, Bitcoin reached an all-time high of almost $69,000.

The crypto catastrophe occurred because the Us Federal Reserve indicated the potential of raising interest rates as early as March and reducing market assistance.

Other digital currencies, including cc Binance Coin, and Cardano, had similar meltdowns. Massive decreases were also seen in Solana, Dogecoin, and Shiba Inu. Bitcoin's market value has plummeted by more than $600 billion since November.

Crypto assets, such as Bitcoin, have evolved from a niche asset class with few users to an essential component of the digital asset revolution, prompting financial stability worries.

According to an IMF study, given their relatively high volatility and prices, cryptocurrencies' growing co-movement might soon pose threats to financial stability, particularly in countries with substantial crypto use.

As a result, it is past time to establish a comprehensive, coordinated global regulatory framework to guide national legislation and supervision while mitigating the financial stability concerns posed by the crypto ecosystem.

Despite considerable volatility, the market value of these innovative assets increased to roughly $3 trillion in November from $620 billion in 2017, owing to rising appeal among individual and institutional investors alike.

Seasoned investors have foreseen this correction, but the average investor did not. The charts displayed bearish patterns. Most folks who came into cryptocurrency last year are baffled.

They can't purchase a dip because they don't have any money and don't want to sell since they'll lose a lot of money.

How to Survive Market Volatility

As the market has witnessed many enormous ups and downs, many retail investors and consumers must deal with this massive decrease. To do so, they must realize that cryptocurrency is not like any regulated asset that is maintained not to do significant harm to people's money.

If you have invested in cryptocurrency and are unsure what to do, selling your holding is not the best option at this time, as its crypto market has lost about $1 trillion of its market value. There will be an undeniable loss of interest among the people, but it is still a point of discussion and not a strict restriction on it.

Other clients who utilize cryptocurrencies as a payment method have a decent chance of keeping their gains provided they use the right payment gateway, which ensures that their money is converted to fiat or stablecoin immediately.

Payment gateways such as CoinRemitter, CoinPayments, NowPayments, and others that provide such functionality are assisting many businesses and individuals in avoiding the volatile movement of cryptocurrency while still keeping up with crypto payment methods.

How To Benefit From This Drop

Yes, if you are new to cryptocurrency investing and want to get started, now may be the time to do so. As the market is at its lowest point since it last reached an all-time high.

As a result, people are perplexed as to whether they should do so or not; the answer is entirely dependent on your investment strategy and the amount of risk you are willing to accept.

And, if you run an online business that accepts cryptocurrency as payment, particularly Bitcoin or Ethereum, then converting to stablecoin is the best option. It will not only help your firm from losing money in the crypto market, but it will also limit your risk to a minimum.

If you're wondering if anyone has begun taking advantage of this drop, El Salvador, a country that has adopted Bitcoin as legal tender, last September.

Has just purchased around 410 Bitcoin and currently owns over 1,500 BTC, and plans to issue a $1 billion 10-year bitcoin bond this year.

Final Remark

As the cryptocurrency market has captured so many people's attention since 2019, and it continues to do so, there is always a negative and positive aspect to it.

Having reached a new all-time high, to the verge of collapsing. Having reached a massive market value of $3 trillion, to losing $1 trillion in a short period of time.

Everyone, from investors to ordinary consumers, needs to deal with the market's tremendous ups and downs, but because there is no assurance of what the future of crypto will be, you must stay alert and learn how to stabilize these fluctuations.



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Kala Kam

Kala Kam

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Clarke Quay

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This post is from a series of posts in the group:

Decentralized Finance (DeFi)

A blog group to discuss the potential of decentralized finance and the obsctacles preventing the realization of this potential.

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