Should You Be Investing In Crypto Space Right Now?

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Coinmonks

3 min readJun 2, 2022

The Crypto Fall

The crypto market has had a rough year. The price of Bitcoin has fallen from $19,000 in January to about $4,000 today. And many other cryptocurrencies have followed suit.

That’s because regulators have cracked down on crypto exchanges and ICOs worldwide, from South Korea to China. Also, new regulations are coming into effect in the US, which will make it harder for investors to trade cryptocurrencies anonymously. In addition to all that, Facebook banned advertising for ICOs and cryptocurrencies on its platform — meaning that some companies’ growth potential is being crippled by having their ads removed from the list of the world’s largest social media platforms.

Despite all this, cryptocurrencies are still in their infancy — which means there’s plenty of room for growth over the coming years if you’re willing to take risks with your money. Nevertheless, here’s how shaky the crypto market has been this year:

Bitcoin and Ethereum have spiked down by about 57% since their highest last year November. Cardano has lost roughly 75% of its value since January, and Solana, one of the breakout stars of the crypto ecosystem, is seen to have fallen by roughly 80%.

Altcoins and Stablecoins are both suffering from this bad news, not only LUNA. However, if you’re still doubting whether to invest in bitcoin and other cryptocurrencies or not, here are some debates on why you should and shouldn’t.

The Crypto Future

Cryptocurrencies are still highly speculative, and it’s unclear whether they will rebound from this slump or if they’ll be around in the future. Many experts believe that cryptocurrencies have a promising future, but past performance does not indicate future results.

So, if you will invest, it is wise to take calculated risks.

Though some experts believe cryptocurrency has long-term viability, it is important to remember that it’s still highly speculative and volatile. The recent LUNA debacle is a good reminder of this fact.

Should You Invest?

Whether you decide to invest in crypto depends on a few things, including your long-term outlook and financial situation. Crypto should be considered a long-term investment — not a way to get rich quickly. However, if you believe in a particular cryptocurrency’s potential for growth, it might be worth investing now when prices are lower.

But if you’re trying to make money fast, this investment may not be right for you. And if you’re struggling to clear the bills or don’t have much of an emergency fund yet, you may want to focus on those priorities before investing.

Final Thoughts

Lastly, your risk tolerance is personal, so take time to think about how much volatility you can handle. Even when looking at the long term, short-term drops in price can still sting. If you know that you wouldn’t sleep well if prices fell by 50% or more, cryptocurrency isn’t for you.

Cryptocurrencies can be a potentially lucrative investment, but they’re not for everyone. Purchasing crypto at the bottom of a market cycle is one way to profit from downturns, but it’s important to understand the risks attached to such an investment.

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Should You Be Investing In Crypto Space Right Now?

The Crypto Fall

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Written by Wale Badmus