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Don't let the different cryptocurrencies intimidate you

Before the prices started declining of cryptocurrencies like bitcoin, the crypto assets in the market stood at almost US$1 trillion. It all happened just between August and November 2021.

 

 

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The market 

However, due to several reasons, the market prices of cryptocurrencies like bitcoin started to decline recently after reaching its highest price of all time at US$69,000. In this downfall of cryptocurrencies like bitcoin, most new and experienced investors will sell and lower their losses. However, the experience and good players in the cryptocurrency market will go for the other part. They are going to make it an opportunity and will play the card off by the date. It is the process of purchasing cryptocurrencies on a large scale to get them at a lower price and make profits when the next bull run approaches on portals like the Bitcoin Storm

According to the CEO of cryptocurrency exchange KuCoin, Johnny Lyu, the massive players of the market are taking advantage of the situation. Such times like decreasing prices of cryptocurrencies can open up a lot of doors to watch opportunities.

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Therefore, the market investors are stocking up cryptocurrencies according to the top 10 list and moving downwards. As a result, they are purchasing more of the cryptocurrency at the highest prices and having a more excellent price in the market further. However, he also said that it is essential for every investor to know about the market correctly. He should do thorough research about the market and the ongoing situations. Also, it is essential to understand the strategies like HODL and go to practice them. It is essential to understand the right price to buy a cryptocurrency and sell it depending on the investor’s risk appetite.

 

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Where to invest?

On Monday, most of the cryptocurrencies in the market were struggling to recover from the prices they had lost. Due to the beer face going on in the market, the market capitalization of worth hundred billion dollars was gone altogether. Therefore, the total market value of the cryptocurrencies at the end of the day Studio only at US$2.5 trillion. The cryptocurrencies that hold a larger market share recovered only by one or 2% after the recent decrease on November 19. However, Avalanche (AVAX) was the only coin that experienced a recovery of 47% in the prices in a week. Also, there was a recovery in the prices of other cryptocurrencies, but that was just a minute.

Who has invested their money in other types of markets are well aware of the principle that is going on in the cryptocurrency market. It is all a game of notional loss as well as the actual loss. The principle of making profits and losses depends on these two things. The investors who kept their faith in cryptocurrencies and decided to hold them through the last week experienced a notional loss in value. It is temporary and will recover eventually. However, the investors who panicked because of the downfall on November 19 will experience a permanent loss instead. Therefore, it is crucial to understand the principles of notional losses and actual losses in the cryptocurrency market to stay longer. Also, a clear understanding of principles will allow you to play with cryptocurrencies in a better way so that you can get to know more about 

them.

It isn’t elementary at this point to decide which cryptocurrency should you purchase. It is all because of the different principles and pushes and pull factors—the demand for a cryptocurrency increases when it becomes more valuable or vice versa. There are different push and pull factors in the market that decides if you want to purchase a cryptocurrency or sell it, and they are divided into three categories. First comes the cryptocurrency that is going to serve a purpose, even if it is small. You may invest in a cryptocurrency with a small value, and you will make an unexpected small profit.

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The second type of reason that can hinder your investment opportunities and thinking is conceptual attractiveness. Suppose the concept of a cryptocurrency like building cold storage and new transaction possibilities will increase its demand in the market. The third type of reason for which a cryptocurrency can experience an increase in its demand is irrational popularity and still increase in prices. Some of the cryptocurrencies were created randomly, and they achieved classic success because of people’s confusion. However, an essential factor that is going to affect your type of trading is volatility and opportunity.