CRASHES IN CRYPTOCURRENCY MARKET ; HOW TO AVOID LOSSES.
The crash of July and September were one that instilled fear in the heart of all traders of cryptocurrency. Bitcoin made a loss of 11% within 24 hours, Ethereum and Litecoin lost close to 20%. Ripple lost 14% over the same time frame while other lesser-known currencies lost about 50% of their value.
The total market capitalization of cryptocurrency went from $18billion to more than $180billion in just 2017. For an investor, this skyrocketing rise serves as an avenue for profit making but it has been shown that this can as well fall as fast as it rises. The cause of the crash
1. One of the major cause was the attempt made by the bank of China I an attempt to regulate cryptocurrency and initial coin offerings (ICOs), the placed a ban on all ICOs on the justification they cryptocurrencies had greatly disrupted their economic and financial system. Basically, one-third of all token sales of the ICOs were done in China, this had a huge hand in the greatest crash of cryptocurrency at large.
2. Ether reached its greatest high of $407, what a lot of people don’t know is that in January, Ether was just $8. Ethereum crashed because the market forces couldn’t be controlled since the value was so high l, people began to cash out at an uncontrollable rate.
3. Another reason why bitcoin crashed was the impending update and uncertainty surrounding what will become of bitcoin after the update. The developer of bitcoin had split into two because they viewed the future of bitcoin differently.
Since people were not sure of what will become of bitcoin after the update, it affected Ethereum not because Ethereum and bitcoin are the same body but simply because they are both cryptocurrencies.
How to benefit in this moment
1. Buying at the dip; buying at this point helps to buy at a very cheap rate and getting a decent profit. The most important single element in buying at the dip is that it requires someone who is well known about the trends and patterns of the crypto market in other for to spot the accurate moment.
2. Migrating to Fiat currency; It is usually easier said than done. This requires on to read and time the mark. But the limitation is, major exchanges lack this feature the only handful of renowned crypto exchanges are offering the feature.
3. Margin trading; with this financially technical (Not recommended for all) feature by opening short position with “X” leverage investors can earn profit but liquidation is a fear by which you can lose nearly all your investment.
Accord Hedging Platform is going to build a first ever crypto Hedging platform where investors can trade with minimal risk through hedging techniques without the fear of liquidation.