You know, there’s a famous saying- you need to fall before you could fly high, and fall again to go higher. We believe something similar to that effect happened with cryptocurrencies but we think that’s nothing to worry about.
Look back into the time when cryptocurrencies were just a new online service that only tech enthusiasts were interested in. But, now every country in the world has a population of people who trade and invest in cryptocurrencies.
Another thing you might remember is that the line of cryptocurrencies did not have any value to be calculated in money. But today, it is considered one of the worldly aspects that have been priced at such high rates.
The digital currencies have worked hard to reach heights but we think that change is inevitable and it was supposed to crash. Thus, in this read, we’ll be helping you understand the reasons that answer the biggest question today- Why is crypto crashing?
Is there any chance of crypto stability after the airdrops?
Well, we intend to answer two of the most significant questions of our digital era- “why is crypto crashing” and “can crypto ever have constant stability”. So, this part of the read would simply cater to the latter and let you read on to learn about the crypto-crash reasons.
Let me explain it with a simple instance- several billion years ago, human beings did not know what cooking is but then the fire was invented, and travel was on foot but then wheels came into existence. Similarly, with crypto, people didn’t know how to use digital currencies but now that they know it, it is of great significance.
Also, stability is overrated in this fast-moving and the ever-changing world- one-day crypto is the best way to earn and on the other, field exposure can get you more money. All we mean is that nothing stays the same, then why should crypto?
Besides that, tons of external factors affect the success of crypto and there is no guarantee on them. However, there has been news that people still believe an increase in crypto adoption can directly relate to bringing stability. Now, let’s walk you through the six major reasons to answer “why is crypto crashing?”
Apt answers to why is all crypto crashing
Here, in this part of the read, we’ll be walking you through the major reasons that can help you understand “why is crypto crashing?”:
- Too much leverage is being taken by the crypto investors
- Cryptocurrency markets have been experiencing a lack of liquidity
- Pre-determined regulations on cryptocurrencies and crypto users
- Growing security breaches of crypto accounts raise fear
- Dynamic volatility brought in by the crypto influencers
- Mutual relationships with the stock market and its factors
Walkthrough of the effective resolutions for crypto crashes
Now that you have the answers to “why is crypto crashing”, we thought it was time to help you overcome such a scenario:
- Proper research, observations, analysis, and computations before investing any crypto token without the window of debt or leverage.
- Decide upon liquidating small portions of their assets in the liquidity markets, spread over a few time intervals (very less people wait to snatch up the coins you upload).
- Government laws regarding cryptocurrencies can affect largely- clamping down crypto mining would directly result in crypto price decline so, make sure you have complete knowledge of all the rules and regulations.
- Make sure that you explore and scan through the options available so that you can find the ones with limited supply and better approach/appeal (that’ll decrease the overall chances for crypto breaches).
- Use stable coins for trading so that you can move in and out of your crypto positions as and where the market shifts demand it.
- Ensure calculating the risks involved in crypto investments so that you can be ready to stomach the crashes in the crypto markets because they are a part of making investments in digital currencies.
The detailed read above has been focused on introducing you to one of the newest complexity of the new digital age- crypto crashes. And we have put in a lot of energy on helping you understand the major causes that can effectively answer why is crypto crashing.
Therefore, as you move through the information piece, you learn the reasons that lead crypto markets to crash and in a brief section next, we’ve laid down a few measures that can help you overcome such crashes.