It was never a question whether or not Crypto was going to be volatile. In fact, many say that the volatility is the short game to a man’s riches. Others, however, play the Warren Buffett long game. In the latter case, bitcoin enthusiasts rejoice at the downturn as they see it as an opportunity to scoop it up at a discount.
To put it mildly, the cryptocurrency market has taken a beating in recent months. Bitcoin (BTC) and Ethereum (ETH) are both down roughly 57% since their November highs. Cardano (ADA) has lost roughly 75% of its value in that time, while Solana (SOL), one of the crypto world’s breakout stars, has lost nearly 80%.
The industry has also been shaken by the TerraUSD (UST) controversy. Terra (LUNA), the stablecoin’s sister cryptocurrency, lost more than 98% of its value in just 24 hours after losing its peg to the US dollar.
This is bad news not only for LUNA investors, but it has also shattered many investors’ faith in stablecoins in general — and possibly cryptocurrency as a whole. Is now really the best time to invest in cryptocurrency, if you haven’t already?
Here’s everything you need to know about it.
What does the future hold for cryptocurrency?
Nobody knows for sure whether cryptocurrency will recover from its current slump or even exist in the future. Even major cryptos like Bitcoin (BTC) and Ethereum (ETH) aren’t guaranteed to succeed, so it’s still a highly speculative investment.
This doesn’t have to rule out the possibility of investing. However, you should think about how much risk you can handle.
Cryptocurrency has the potential to generate enormous profits, and some experts believe it will be around for a long time. However, the recent downturn demonstrates how volatile it can be, and the LUNA debacle serves as a timely reminder that cryptocurrency is an inherently risky investment.
Is it still worthwhile to invest?
Cryptocurrency should be viewed as a long-term investment rather than a quick profits scheme.
If you believe a cryptocurrency has long-term potential, you may want to buy now while prices are still low. But if you’re looking for quick money, this investment may not be for you.
Consider whether you can currently afford to invest. Because cryptocurrency is so risky, only invest as much money as you’re willing to lose. If you’re having trouble paying your bills or don’t have a solid emergency fund, you might be better off prioritising those needs before investing.
Finally, consider how much risk you’re willing to take. Short-term volatility can be difficult to stomach, even if you have a long-term outlook. It’s not uncommon for cryptocurrency prices to drop by 50% or more, so if you know you’d lose sleep over that kind of volatility, you might want to look for something else to invest in.
Start off with presales
Many investors prefer to begin their investment journey with presales, also known as ICOs. Offered at low prices to attract interest before they can be traded on the market, presales can minimise risk for investors.
As they’re bought cheaply, investors avoid significant losses if the project is unsuccessful. However, most of the tokens are in high demand when they first appear on the market, and early investors can profitably sell them.
It is recommended to choose a presale token based on your personal judgement of the White Paper to determine the long-term outlook of the project. Another good sign is whether the token has been getting attention in the wider cryptocurrency community.
Calyx Token (CLX) is one such presale token that has been gaining traction. Its early buyers point to its potential to revolutionise the market in terms of interoperability and practicality.
Calyx Token (CLX) will be a liquidity protocol that uses trailblazing technology to help users avoid the long processing times and exorbitant gas fees associated with crypto exchange platforms.
Calyx Swap, the platform’s exchange solution, will pool liquidity from multiple sources across multiple DEXs belonging to various blockchain networks, including Ethereum (ETH), Polygon (MATIC), Binance Smart Chain (BSC), and Avalanche (AVAX), to provide users with the best rate for any swap on any supported blockchain network.
In addition, Calyx Token (CLX) intends to be permissionless and decentralised. Users will not have to go through the extensive security checks required by centralised exchange platforms, nor will they even have to register to use the swap. Due to this, Calyx Token (CLX) is predicted to be a huge success in DeFi, and these features will make the project more accessible.
Although cryptocurrency has the potential to be a lucrative investment, it isn’t for everyone. While downturns are a good time to invest because prices are lower, make sure you’re aware of the risks associated with crypto. You’ll be better off if you’re better prepared.