With Bitcoin (BTC) this week falling below $ 33,000 for the first time in 12 months and as Ethereum (ETH) and Cardano (ADA) also fall, the crypto market seems to be collapsing – or at least passing a major correction.
In view of the old investment saying “buy dip” investors may now be looking for a piece of the volatile crypto market in the hope that this marks a short-term decline than the long-term bear market.
If you think now is the time to buy, here is a look at the previous styles, some expert opinion and buying tips if you are new to cryptocurrency.
Great Loss- Good to buy or exit ?
Monthly, the price of BTC dropped by more than 20% to about $ 30,754 today. Back in November 2021, it traded for up to $ 69,000. A decrease of more than 50% indicates a significant loss.
ETH saw similar losses with Bitcoin last month, up to $ 2,000, while Cardano (ADA) suffered the most, falling nearly a third (32%) to $ 0.57.
While this is not yet consistent with the magnitude of the 2018 crash, where Bitcoin has lost 80% of its value, experts say things could still be worse for those who have already held BTC.
It is these types of losses that have prompted the Indian financial regulator, the Reserve Bank of India (RBI), to issue repeated warnings to crypto investors. It says there is no guarantee of recovery and people should be prepared to lose everything they plant.
what investors need to say about it?
inflation and war
The founder of India-based portfolio management services Upside AI, Kanika Agarrwal, thinks that the crypto crash is like a falling stock of technology. A big part of this is that crypto is gone and buyers and sellers take it as another speculative investment. Therefore, it falls like other “growth” shares.
Praveen Kumar, founder and CEO of Belfrics Group, believes these are good entry levels for investors to start building a strong portfolio in cryptocurrencies. In fact, investors should continue to buy the dip from here as the long-term bases of other well-known cryptocurrencies like Bitcoin, Ethereum, Litecoin, etc.
The founder and CEO of MuffinPay, Dileep Seinberg, thinks differently.
“..the regulations will improve the importance of promising good projects in crypto. But we need to wait a few months. The dip has been in the interest of crypto investors.
Is ‘Buying a Dip’ a Good Idea?
The “buy dip” policy is based on the perceived inflation rate. Dip buyers hope to use the dips by buying at a related discount and earn rewards when prices go up again.
Crypto markets are volatile, so buying cryptocurrensets at any price – not to mention a long-term dip – is risky. While prices may return to previous levels, they may fall even lower, leaving your investment below water.
Bitcoin prices have mainly shown some seasonal level so far, seemingly declining in value to smaller or higher levels in the spring before heading back to early summer.
How to buy Bitcoin in 4 steps
- Select Crypto Exchange
To buy Bitcoin or any cryptocurrency, you will need a crypto exchange where buyers and sellers meet to exchange dollars for coins.
- Determine Payment Option
After you choose to exchange, you must back up your account before you can start investing in Bitcoin. Depending on the trade, you can finance your account with a bank transfer, net banking, Mobikwik, cryptocurrency wallet or UPI.
- Place an Order
Once your account is sponsored, you can place your first order to purchase Bitcoin. Depending on the platform you are using, you may be able to purchase one by tapping a button, or you may be required to enter a Bitcoin (BTC) tick mark. After that you will need to enter the amount you want to invest.
- Select Safe Storage Option
The crypto exchange you use probably has an integrated Bitcoin wallet or at least a popular partner where you can securely hold your Bitcoin. Some people, however, do not feel comfortable leaving their crypto online, where it can easily be stolen by hackers.