“Crypto is down today! Why? Is it just another day in the crypto market, or are there other factors that have influenced this drop?”
There are many reasons why the crypto market is down today. Here are some of the most significant factors that have contributed to this drop in price.
Why Is Crypto Down Today?
1) Bad press about Cryptocurrency Exchanges has affected the Market – The Coinrail Exchange Hack and Bithumb Hackers have raised questions over the security of cryptocurrency exchanges. Many users and investors were already wary about using these exchanges because they feared that their money could be lost or hacked at any time. Now that these two cases have happened, people who were still hesitant before may now likely not use an exchange anymore, at least not for now. A decreasing number of cryptocurrency exchanges will mean a smaller, more limited market.
2) Stronger Regulations by International Governments – Countries like China and South Korea have been discussing the possibility of stricter crypto regulations in their respective countries. While there is no definite answer yet on what these new rules would entail, it is possible that we can see some regulatory actions taken soon.
Only allowing verified individuals and institutions to trade in cryptocurrencies. Perhaps this uncertainty has caused people to be reluctant about investing in cryptocurrencies for now. However, many experts believe that stricter regulations can help strengthen the credibility and prospects of cryptocurrencies. Some even believe that such measures may be necessary to compete with other more established, traditional financial systems.
3) The Market may be reacting to the prospect of an upcoming Bitcoin Hard Fork – It is expected that come mid-November, there will be 2 Bitcoins, which is what happened in August when Bitcoin Cash (BCH) was launched after the first-ever hard fork for Bitcoin (BTC). If this happens again, it could mean that there are now three choices for investors who want to put their money into cryptocurrencies. It might mean that due to another option besides BTC and BCH, people would instead take back their investments since they believe that holding onto these three different currencies would only dilute their money further. For sure, though, if this happens, it would mean that all cryptocurrencies would experience a decrease in prices.
4) The relatively slow mainstream adoption of cryptocurrencies might also explain why people are selling their coins today. While there are already so many different ways to use digital currencies, the truth is, the commoner still has little idea of how they work and how they can be used. Many businesses turn away potential customers who want to buy items with their BTC, BCH, or ETH. This lack of awareness and business acceptance could be attributed to why people are hesitant about investing or spending money on cryptocurrencies.
5) Cryptocurrency prices have been going down for a month now – The market has been experiencing a slow downtrend since the beginning of the third quarter. There was a drop from $200 Billion to as low as $182 billion earlier this month, which is quite significant. Prices have been slowly recovering from this dip, but people who bought in during those times might feel that they could wait a little longer before buying back into cryptocurrency again.
While not necessarily valid for all cryptocurrencies, it would appear that Bitcoin is still the most influential in influencing other digital currencies. If Bitcoin goes down, then chances are many altcoins will go down with too. So while some factors are specific to one cryptocurrency or another, the decline in BTC price affects all of them.
While there are several reasons people might be selling their cryptocurrencies, it would also help keep in mind that what goes down today can go up again tomorrow. To do your research on why prices are going down or up is always necessary before doing anything, after all. You don’t want to miss out on future opportunities because you sold off your coins too early. When it comes to money, knowledge is power.
Remember that while the crypto market might be experiencing some lows right now, not everything is bleak. More blockchain conferences are being held around the world; new companies are exploring how they could use blockchain and DLT, and there are even countries that want to be known as havens for cryptocurrencies. Also, there is a global awareness of the benefits that cryptocurrencies can bring to the table.
To Sum It Up…
While many people might be speculating why prices are down today, there are very logical reasons behind such downtrends. Everybody has their own opinion on what is good and bad for cryptocurrencies , and since no one wants to incur losses (especially if they came from gains), selling off coins at a low does not mean that people will lose faith in digital currencies. It simply means that they think now is not the best time to buy.
How Can I Know Where Crypto Prices Are Headed?
But if you’re an investor who wants to put your money on cryptocurrencies, how can you know which currency or asset will be the safest bet to make? In this case, it is best that you invest in more than one cryptocurrency. So if one of them experiences a dip in prices, you already have other coins on your portfolio. It is also essential to invest only a portion of your money – never think of putting all your eggs in just one basket!
If You Are Ready to Invest in Cryptocurrencies
Now that you have an idea of what’s going on with the market and why prices are down today, perhaps now would be a good time for you to invest in cryptocurrencies. There may not be a better time since there is expected volatility over the next few months. However, remember that even with this temporary dip, the future of cryptocurrencies is still bright. With their increasing popularity and credibility, it would be almost impossible to wipe out cryptos from the face of the earth completely. For sure, though, today’s price fluctuations are not permanent, so if you have any plans to invest in digital currencies , now would be a good time!
How to invest in cryptocurrencies?
You can invest in cryptocurrencies by following these steps:
1) Open up an account with a cryptocurrency exchange. Some of the most popular exchanges today include Binance, Coinbase, and Kraken. Just Google them to find out more.
2) Add your preferred payment method – this could be your credit card or bank account. For added convenience, you can also look for exchanges that have available prepaid cards, so you don’t need to go through the extra step of adding your credit card information every time you want to purchase some coins.
Only invest an amount that you can afford to lose!
It is also essential to know how much money you are willing to spend on cryptocurrencies because this would determine your investment options. For example, if your budget is small, it might be best for you not to buy individual coins but instead purchase shares or fractions of cash. You can do so by opening up a cryptocurrency account with a brokerage firm. You have to follow the same process as when buying coins from an exchange – open up accounts with both the brokerage firm and the business, add funds into each, then use either one whenever you need to buy some coins.
Even if you can spare a few bucks to invest in cryptocurrencies, it is still essential that you only spend an amount you can afford to lose. After all, investing in digital currencies is not like buying stocks or any regular investment vehicle. There are no guarantees regarding the market and the price of coins (or lack thereof) over time. With this in mind, carefully read and understand how exchanges and purchases work before doing anything else. This way, you would be able to enjoy your experience as a cryptocurrency investor!
The crypto market is down today, but it’s not all bad news. There are many reasons why this has happened, and we hope to shed some light on the most significant factors that have contributed to this drop in price. Whether you want a better understanding of how the markets work or need some clarity about what your portfolio looks like, we can help with these things and more! We offer consulting services for those who don’t know where to invest their money and digital marketing solutions for businesses looking to get exposure without breaking the bank.