„Bloody times on crypto market“– volatility, fear and panic, why?
What to do when the entire market crashes? Is it the right time to buy or sell tokens? FCX Team will not give any financial advice, because we are here to bring some innovation into crypto and XRP Ledger space, but this topic is definitely worth to discuss!
According to coinmarketcap currently there are almost 20 000 different crypto and the total market capitalization is almost 1 trillion $ (few weeks ago it was twice as much).
This only shows how volatile this entire market is. The only question you should ask yourself is “why do you invest money in crypto?” The question is short and simple but answers can be complex, or complicated, or not clear, or there can even be no answer. The last option is obviously the worst scenario, because it means the investor has no clue what he does and this can be really dangerous… Why? Because it means there is no control over the invested money and the investor will only rely on his luck.
To make the best decisions you should know what you are investing in. What is the hidden potential, what the vision is and what is the entire community of the project. Obviously on the crypto, but also on traditional market are good and bad times, up and downs and the difficulty is to have the right timing with all investments. Although majority of the crypto are the “one-season” projects, because the fundamentals are weak. Let us have a look at the screenshot from TOP 10 tokens on coinmarketcap site from 2014:
How many projects survived until today? The cause is simple, because there were no strong fundamentals, no new technology, and no new concept behind the idea… To consider if a project make sense in long term is crucial to deep dive into their concept and plans. This costs time, but it can help to protect money and also mental health from disaster.
What to do if the entire crypto market crashes and there is “blood in the streets?”
It is not obvious and there is no universal advice, but the most important question is what the investor did before? This will determine what should be done as next. If the project the investor put money in has strong fundamentals and a clear vision it is very probable that it will recover in the next market cycle and make up the loss and possibly even reach the new ATH level. Nothing is 100% sure but highly probable.
As you can see the XRP was doing great for the last few years, and despite all the ups and downs on the chart the project is stronger than almost decade ago. The technology is developing, new standards are on the way, like NFT features thanks XLS-20 or federated sidechains…
We FCX team want to build up the new features, right now for upcoming NFT XLS-20 standard and we are here to stay, to grow, to persist and to surprise everyone starting with our loyal supporters
Be wise and keep calm!
Source: tradingview.com