A suitable investment in the right crypto asset at the right time can change your life forever. Crypto crashes eliminate weaker assets and provide a window of opportunity for golden asset investment at the lowest price. Read on to learn more.
All you need to know about the crypto
Crypto exchanges are a network of websites, apps, servers and systems, where individuals or businesses can buy, sell or exchange crypto assets or other digital currencies against the traditional money. Crypto assets are decentralized (not regulated by the government). They are highly secured using advanced coding using blockchain technology and end-to-end encryption. Cold wallets are the most secure way to store your crypto-assets and are available on popular websites like Unocoin.
The concept of the crypto assets was first introduced in the 1980s as an idea to introduce DigiCash, which could be securely transferred over the internet, eliminating the need for banks and government-imposed regulations. Bitcoin is one of the earliest crypto-assets created by Satoshi Nakamoto in 2009 using blockchain technology.
What is a crypto market crash?
The crypto market is non-regularised and is subject to significant fluctuations. It is very nascent and has a long way ahead, potentially replacing existing currency. This emerging technology also fell victim to criminal hacks. When bitcoin was first introduced to the market in 2009, it intrigued many people to invest, which led to rocketing inflation in the trading value of Bitcoin. It went up from an initial value of $2 to around $32 — one of the most significant spikes in a crypto asset market. Two years later, in June 2011, Mt Gox, the largest global bitcoin exchange, claimed that criminals hacked them. The hackers stole millions of dollars worth of bitcoin from over a hundred accounts registered.
The world witnessed the first crypto crash when bitcoin’s trading value fell to one penny. On one side, people suffered from financial losses. However, on the other side, people started using this opportunity to invest and buy bitcoin shares at the lowest possible price. Security measures and advanced algorithms were introduced, cold wallets were introduced, and bitcoin was once again popular in the crypto market.
Five most severe crypto market crashes of all time:
- June 2011
The trading value of bitcoin was reduced to 1 penny, a drop of 99% when Mt Gox announced criminal hacking of bitcoin software from hundreds of accounts.
2. August 2012
After learning about the Ponzi scheme, the public witnessed a second market crash that promised investors a reasonable interest rate for bitcoin. He was charged and later imprisoned.
3. April 2013
The public witnessed the third crash in April when there was a rocketing increase in the number of investors. Mt. Gox, the largest bitcoin exchange globally, could not handle the trading volume and was forced to announce a total shutdown.
4. March 2020
We witnessed the Covid-19 pandemic in 2020. Along with all other markets, the crypto market also crashed, and its trading value dropped by around 50%. Bitcoin shares fell from $10,000 to $4000.
5. May 2021
Bitcoin became a questionable asset in April 2021 when in an instant, more than 1 trillion coins were wiped off the crypto market in one week. China also banned bitcoin and announced a crypto crash, which decreased the trading value to 53%.
How does a crypto market recover from a crash?
It’s one of the prime questions you need to answer to understand how a crypto market works. Usually, experts expect a recovery as soon as the global economy recovers. However, any internal factors related to advanced coding must be addressed to prevent hacking. Crypto industries are always very optimistic about the rebound rate.
How to prepare for a market crash?
- Diversification of crypto assets:
Never put all your money in a single asset; always fund more than one crypto asset to prepare for any economic depression.
2. Always consult financial advisors before making any investment:
Invest in crypto assets that renowned companies own. They have a better recovery rate and the potential of being accepted as a mode of payment on the platforms owned by the shareholders. Elon Musk has increased the trading value of Dogecoin by advocating it as a payment method for TESLA and Twitter. However, it comes with a risk too. Take this as a pinch of salt. What if Elon finds some issues with Doge, and you go clueless about your Doge decision!
3. Take calculated risks only:
If you own a crypto asset that you think will fall, feel free to sell its share according to your risk tolerance. Only you know how much you can afford to lose. PS: This is not financial advice.
4. Invest in crypto-assets with high values during market crash:
Market crashes are like windows of opportunity for investors to invest in crypto assets with high trading value. *A drop in their trading value is ideal for a profitable investment.*
- Fluctuations in the daily trading value in the crypto market can still be predicted, but market crashes have no predictability. They depend on the global economy and other factors such as criminal hacking, blockchain algorithm coding issues, Ponzi schemes, etc.
- Conduct your research and reach out to financial advisors before making any financial decisions. Remember, two heads are better than one!
- Compare the trading value of different crypto assets on trading websites like Unocoin.
Unocoin is India’s first and the most secure crypto trading and exchange platform founded in 2013. You can buy and sell bitcoin instantly using the Instant Buy and Sell feature. Not just this, you can also buy ETH and Sell ETH in no time. With more than eighty-seven coins listed on this best cryptocurrency exchange in India, you can also accept bitcoin from your friends from any location. You can also know which cryptocurrency works best for you with the price ticker and notifications. The most popular cryptocurrencies like Bitcoin (BTC), Ether (ETH), USDT (Tether), BNB, Ripple (XRP), Cardano (ADA), Solana (SOL), Binance USD (BUSD), Dogecoin (DOGE), Polkadot (DOT) and other popular altcoins can be traded on the go.
The new Android and iOS applications make Unocoin the best cryptocurrency app. With the unique feature of the Systematic Buying Plan, you can buy and sell bitcoin and Ether periodically.
What more? You can start your crypto journey using SBP for as little as INR 10. With another exciting feature called Crypto Basket, you can diversify your crypto portfolio based on market capitalization (Market Cap) or Volume. These two excellent features make Unocoin the best cryptocurrency platform.
Please find the list of authentic Unocoin accounts for all your queries below:
- YouTube Channel: https://www.youtube.com/c/Unocoin/videos
- Newsletter: https://medium.com/subscribe/@Unocoin_growth
- Blogs: https://blog.unocoin.com
- Instagram: https://www.instagram.com/unocoin/
- Twitter: https://twitter.com/Unocoin
- Facebook: https://www.facebook.com/unocoin/
- LinkedIn: https://in.linkedin.com/company/unocoin
- Telegram Group: https://t.me/Unocoin_Group
- Telegram Channel: https://t.me/+fasQhTKBsfA5N2Zl
- Telegram: https://t.me/UnocoinSupport_Bot
- E-mail id: [email protected]
- Contact details: 7788978910 (09:30 AM IST — 06:30 PM, Mon — Sat)
- App store link: https://apps.apple.com/us/app/unocoin/id1030422972?ls=1
- Playstore link: https://play.google.com/store/apps/details?id=com.unocoin.unocoinwallet
Crypto products are unregulated as of this date in India. They could be highly volatile. At Unocoin, we understand the need to protect consumer interests. This form of trading and investment has risks that consumers may not know. To ensure that consumers who deal in crypto products are not misled, they are advised to DYOR (Do Your Own Research).