Before the huge splat last week, the value of crypto assets climbed by about $1 trillion from August to November. While most investors' initial inclination may be to sell and cut their losses, skilled traders take advantage of such opportunities to ‘buy the dip,' or acquire cryptocurrencies at a discount before the next bull run. “Many market players are taking advantage of the situation and racing to stock up on cryptocurrencies from the top-10 list on a drop, as evidenced by numerous indications,” KuCoin CEO Johnny Lyu told Markets Insider.
Of course, before making any sort of investment, dator or otherwise, all investors should conduct their own research, which is why it's critical to understand when to HODL — hold on for dear life — when to purchase and when to sell, based on your risk appetite. Most cryptocurrencies were still battling to recover their losses from the previous week as of Monday. The bear phase continued, with a total market capitalization (cap) loss of another $100 billion, bringing the total value of all cryptocurrencies to $2.5 trillion at the end of the day. Since the November 19 lows, large-cap currencies have only recovered 1-2 percent, leaving Avalanche (AVAX) as the lone currency to gain 47 percent in a week. When demand for a coin increases, it becomes more valuable. While there are a variety of forces at work in the market, most bitcoin adoption — as well as cryptocurrency investment — falls into one of three groups.
A cryptocurrency that has a purpose, no matter how little it is
Bitcoin is regarded as a cash-equivalent asset for businesses, Ethereum stands out for its support for third-party NFT platform developers, Binance Coin has the backing of its exchange, Solana is gaining traction in the DeFi sector, MANA is a native of Decentraland's metaverse games, Monero is accepted as payment on the darknet, and so on. Those that invest in cryptocurrencies by betting on the underlying solution are known as ‘true believers' in the crypto world because they ‘believe in the technology.' They've studied the white papers, grasped the tokenomics, scrutinized the fundamentals, and are pleased when they discover a currency with a use case.
A cryptocurrency that is appealing from a conceptual standpoint
Terra's LUNA handles its stablecoins, Uniswap and Polygon enable new types of transactions, Filecoin is a cloud storage platform, and so on. When the worth of a prospective project becomes more generally understood, early investors who identify it may benefit. As the market crash deepens, there are tons of cryptos to invest in. Before investing you should do your latest research and do everything mindfully. This historical pattern shows peaks followed by falls, with some trends lasting years – thus those that hung on — or HOLDed — to a trustworthy currency enjoyed larger-than-life profits, even if it took a few years.
While it's not a good idea to time the market, most investors who followed Bitcoin's lead this year and bought in altcoins were in profit by the end of October. Furthermore, most currencies are already beginning to rebound in value, suggesting that a redoubled bull run in December is still feasible – at least according to the crazy Bitcoin price forecasts made by billionaires, influencers, and analysts alike.
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