Some users are suffering the consequences of crypto winter. Tips to invest safely
In 2022, Cryptocurrencies started to decline heavily in their values, which seems to be fine now. There were ups and downs, but the trend continues to be down. He The collapse of the Terra/Luna project and the collapse of FTXThe third largest crypto exchange at the time caused uncertainty And this was reflected in the prices.
At the same time, rising interest rates Federal Reserve (FED)Inflation and eventual economic downturn contributed to move wealth out of the sector toward more “conservative” instrumentsLike US Treasury Bonds.
for now, many see in these ups and downs a process towards a stabilization and even a Long term earning opportunity, The truth is that for now, uncertainty reigns and a series of changes are taking place at the regulatory level which could be the beginning of a new phase in this universe.
crypto crash, in first person
“In August 2021, When bitcoin was above $50,000, I decided to buy. I had a very happy week as it kept growing and I thought it was working. Based on what I read and what my classmates told me, It was expected to reach $75,000 in December of that year but it started falling and I lost like a warDiego said iProUP,
He says he invested because he was afraid of missing out, recognizes He didn’t know much about the subject and he was tempted for the possibility of earning a lot of money Quick. Recommended by friends who were investing in crypto, he put his savings and regretted, ,i never invest again, I check the values and what’s in my wallet I leave as an experiment,” he commented.
Sebastianfor his part, remember that Invested in bitcoin in mid 2022, ,It was said that it is possible that it could reach 100,000 U$. And i didn’t want to miss it, This was my biggest mistake ever. I came into this world without knowledgewithout understanding the ups and downs of the market and above all powered by fomo (An abbreviation that refers to the “fear of missing out” on a trend).
eats lost 60% of the investment Complete, but still have an optimistic look, “I believe we are still in the early stages, there is still a long way to go and without doubt it will be very relevant in the future,” he says.
Ernesto’s case has its own nuances: he lost not only because crypto crash, also for joining an initiative with which he did very badly. He bought bitcoin for $12,000, but then sold off much of his holding to invest in another project on the advice of a guru.
Because of that decision he lost 60% of his savings, came after total defeat, In 2022, the Bitcoin Lost 75% of Its Growth in Just Two Months past year. “Advice: Don’t invest in things you don’t know very wellHe says forcefully.
Cryptocurrencies: The Ghost of Regulation
US aims to regulate digital currency market, And it is causing concern. recently, Paxos Platform Was Banned From Issuing Binance Cryptocurrency ,Bus, I know Alleged violations of investor protection laws in relation to BUSD assets themselves.
By order of the New York Department of Financial Services, As of February 21, the issuance of new BUSD tokens has stopped: Paxos is responsible for issuing tokens and to safeguard the reserves, while Binance is in charge of marketing and adoption of the asset.
Francisco Landino, Director of Blockchain Lemonstates that “following this news, the protocol of the community Decentralized Lending Aave Launched Open and public vote to decide whether to freeze BUSD vaults within the protocol.
In November 2021, bitcoin reached its all-time high of $68,000. Today it is worth a third of its value
“kind of earn lemonsservice that provides weekly crypto income through DeFi instruments, we provide our users with access to the Aave investment protocol and Stopped giving returns for BUSD tokens until the vote is over and the next steps are defined,” he explains.
on the other hand, heThe Securities and Exchange Commission (SEC) penalized Kraken for its bet provision, A type of fixed term in virtual currency. famous exchange penalty received $30 million after being accused of violating the law on securities, and did not register the offering and sale of its crypto asset staking program as a service.
The SEC is considering approving a regulation that will force investment advisors Keeping the money and securities of the customers with a qualified custodian. Must be exchanged if it is to pass recourse to fiduciary financial institutions To keep the funds of its users.
Julian Colombo, CEO bitso Argentina confirms IPRUP: “Both the SEC in the United States and other regulators around the world are starting to regulate crypto and we think this is healthy for the industry: Public-private collaboration is key to not discouraging innovation,
“Beyond the law of each country, The crypto sector has a very interesting self-regulation process, We recently published our Regulatory Principles, a guide to self-regulating our crypto operations while adhering to the highest industry standards.”
Cryptocurrencies: Tips to avoid pitfalls
The first recommendation from experts is to stay informed. It is important to study the topic using trusted sites and experts. The first thing to do is invest, but not money, but learning time and effort, As this is something that is constantly evolving, you have to read daily industry news,
another way is to controlled investment, Landino states thatA good strategy is called DCAfor short form of english dollar-cost averaging (Average cost in dollars). this includes doing recurring purchase of an asset As bitcoin may through time”.
Education on how these assets work and background information is important before investing
“For example, yes i have $10,000 to investAccording to this strategy it would be convenient Make 10 purchases for $1,000 in different periods of time, You can trade weekly for $1,000 for 10 weeks. Thus, sometimes I’ll buy the expensive one and other times the cheap one, but average price will be“He became
Another key is to diversify, “If you invest in only one company or asset and then it fails, the loss will be huge. one has to Bet on various options previously studiedSo if one of them falls you don’t lose everything,” recommends Colombo.
it is also important Evaluate context. Bitso Manager suggests to analyze market trends Be warned before investing Don’t let yourself be dazzled by colored mirrors,
,Don’t rely on exorbitant rates Or in people and companies promising high returns in a short period of time. In particular, you have to Beware of tempting offers on social mediaMany of which could be potential scams,” Colombo concluded.