Recent Crypto Market Trends, Growth & Challenges
Over the past decade, cryptocurrencies have gone from being a fad to a viable investment option for both young and old investors. The blockchain community is presently caught in a blitz of crypto innovations, with new developments emerging daily. However, market speculation is at a fever pitch, and every investor is looking for the next big investment opportunity.
Recent Crypto Market Trends
- 2022 has been a notoriously poor year for cryptocurrencies, as many tokens have tanked in value, leading to a massive selloff of assets. Bitcoin was hit the hardest, plunging sharply from its all-time high of over $65,000 in 2021 to less than $20,000. The bearish run shows no signs of letting, with major altcoins like Solana and XRP tanking.
- Furthermore, stablecoins have been near-inexplicably hit by the bearish market run. This phenomenon was best typified in Terra’s crash early this year. The UST stablecoin lost its peg, with LUNA and Anchor Protocol taking massive hits due to their affiliation with the token. Also, Tether temporarily lost its dollar peg. However, it quickly recovered, and Terra is also well on the road to recovery.
- There has been good news elsewhere. Ethereum finally took the giant, bold step of switching from the climate-unfriendly Proof-of-Work consensus mechanism to the more energy-efficient Proof-of-Stake consensus model. Indeed, this is more proof that cryptocurrencies and their underlying blockchain technology are here to stay as they take steps to create a greener and more eco-friendly planet.
Recommended: What investors should know about the Ethereum Merge
- More so, regulation has long been a gray area for crypto traders. In the case of a hack, such as that suffered by CEX giants Binance in 2022, the US government signed a bill that makes it possible for investors to track capital gains or losses on digital assets. However, there remains some uncertainty about whether digital asset regulation falls under the Securities and Exchange Commission’s jurisdiction.
- India also took a big step towards regulation by levying 30% on all crypto earnings – a move that was met with backlash by the Indian crypto community.
Growth and Challenges in the Crypto Industry
With 98 million new users registered on Coinbase alone, per early 2022 reports, the popularity of digital asset investment is growing daily. Other cryptocurrency exchanges like Binance and KuCoin also witnessed expansion and growth to various extents.
Of course, increased interest in cryptocurrency investment does not necessarily equate to a great trading experience. Different exchange platforms offer various features and functions, and not all of them are 100% efficient. In other words, there’s a dearth in the crypto trading industry. For instance, security remains a big issue, with even big-name Centralized Exchanges (CEXes) like Binance having suffered significant hacks in the past.
Perhaps, more significantly, the bearish market run of 2022 has seen several investors sell off several digital assets. However, it’s easy to forget that blockchain technology is in its early stages, and many existing innovations are still looking to scale and be more efficient.
The potential in crypto trading far outweighs the inherent problems, and better innovations in the immediate future look to resolve the issues and make trading more efficient than ever. One such innovation is trading bots.
Trading the Smart Way with BOTS
Human errors and the tendency to make trades based on idle speculation or sentiment make decision-making tricky. We efficiently eliminate this problem with the BOTS app. Our app uses trading bots to automate the entire trading process based on fixed algorithms that are rigorously tested. A bot is a computer program designed by traders or developers to buy and sell assets for you at the right time based on a trading strategy.
Like any investment option, with automated trading too, there are no guarantees of steady profits. However, trading bots can provide much-needed consistency to your trading activities. They also have the remarkable ability to test your strategy in a hypothetical situation before risking real money in the actual market.
The BOTS app makes all of this easy for you by helping you manage your digital finances and better understand what you’re investing in. Transaction fees are comfortably low, making it a strong competitor to the many tools available in the market today.
With trading comes risk, and as an investor, you’ll probably make some losses before making a steady profit. No fixed strategy is guaranteed to land you profits every time. By analyzing market trends and historical data to make informed decisions, you can hope to make a profit eventually. Be sure never to make decisions based on idle speculation, and ensure you research a project before investing in it.
You should also beware of scammers who tout malware in the form of crypto mining apps. Finally, it’s important to remember that despite the rigors and volatility of the crypto market, it is still very much possible to achieve a good trading experience.
Cheers!
Disclaimer:
This blog is for educational purposes only. The information we offer does not constitute investment advice. Please always do your own research before investing. Any views expressed in this blog and by BOTS do not constitute a recommendation that any particular cryptocurrency (or cryptocurrency token/asset/index), portfolio of cryptocurrencies, transaction, or investment strategy is suitable for any specific person.
