2022 has been topsy-turvy for the crypto world. The market capitalization went down from $3 Trillion to nearly $800 Billion within just a year. If that wasn’t all, all top-performing crypto coins have lost double digits. So, the investors only have one question: “Why crypto market is down today”
I have the answer, and it’s simple; CRYPTO HAS FALLEN DUE TO FTX’S DOWNFALL. But what does FTX’s downfall have anything to do with an entire currency falling? To know this, you have to read on. Here’s a little introduction to FTX and its role in this massacre.
Why Crypto is Market Down? The Reason Behind the Downfall
It’s time to address the elephant in the room; Why crypto market is down Today? Let’s find out everything in detail.
FTX is a bankrupt cryptocurrency company that operates as a crypto hedge fund and exchange. As of 2021, FTX had over 1 million users and was the third-largest crypto exchange.
However, in 2022 following the news of Alameda acquiring more than FTX’s customer funds, Binance sold its token holding. And even though FTX wanted to sell the company to Binance, the latter didn’t go ahead with the deal.
Furthermore, Binance claimed FTX mishandled customer funds and demanded an investigation. Such back-to-back episodes shocked the crypto investors and left Crypto to plunge from $69,000 to $1300.
After this, several questions have been raised about the survival of other companies like Gemini and Coinbase. And though experts claim that under government regulation and management practices, US lawmakers are furious with the crypto industry.
The US Federal Reserve has made tighter monetary policy, making it worse for the industry. Therefore, now the essential question is- Is it safe to invest in Cryptocurrency, and how to invest in it?
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Why Crypto Market is Down Today? A Guide on How to Invest in Crypto Market
This isn’t the first time investors have endured a crypto blow. Hence, investors are also learning to invest more carefully rather than asking, “Why crypto market is down today”
Now investors are taking cautious notes on digital assets and are only investing with understanding something completely. Moreover, after the FTX situation, investors only put in 5-10% of the entire portfolio.
A Step-by-Step Guide to Invest in Crypto Industry
- Choose a crypto coin that you know and want to invest in. Moreover, do your research before investing, as Cryptocurrency is volatile.
- Select a Cryptocurrency exchange that you trust. Furthermore, read everything about the exchange online and especially customer reviews.
- Make payment through your comfortable payment mode. Ensure you can pay through debit/ online payment mode or by adding funds to your crypto wallet.
- Buy the Cryptocurrency after learning its price and comparing it with other crypto prices.
- Store your Cryptocurrency securely by cold-storing it. As cold wallets can store offline coins, it saves you money.
- Sell Your Cryptocurrency when you feel it is the right time. Sell your Crypto the same way you bought your currency, and do it only when you feel the time is right.
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Why the crypto market is down? Parting Thoughts
The crypto market is still new and will take some time to stabilize. However, market crashes affect millions of investors who have their savings invested. Thus, FTX should have been more careful while handling customer funds and should’ve been more transparent about their transactions.
So, here’s your answer to “Why crypto market is down today” Please read it and understands how the bankruptcy of a single establishment can bring down an entire market.
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