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With the increasing popularity of Bitcoin and other évaporable cryptocurrencies, riskier investors have flocked to the asset class, hoping to take advantage of the sudden and épanoui swings in the market. Traders have been riding this patin à roulettes coaster for many years, with the exhaustif market capitalization of all cryptocurrencies increasing from around $200 billion in 2020 to $3 trillion last year. But things habitus very different this year.
The Web3 market lost embout two-thirds of its value in 2022, but despite this catastrophic decline from all-time highs, cryptocurrency traders are raising heavily discounted prices. According to blockchain analytics firm Glassnode, investor camaraderie surrounding cryptocurrencies has never been more bearish, noting that various factors made 2022, especially June, the worst period ever recorded for the world’s largest numérique currency.
Volatility is not limited to the cryptocurrency markets, but numérique assets are much more accueillant than other risky investments. Fragile markets are the easiest parages for commençant traders to lose money, and it is essentiel to understand how to trade safely, what makes a risky investment worthwhile, and how to determine the value of an enterprise.
What did the bears teach us?
Cryptocurrency markets are a largely unregulated space where anything goes, and no one is to blame. Of giration, this is not exactly the case, as governments and financial regulators are constantly looking for ways to improve how numérique assets are traded. However, this bear market has highlighted some of the lesser known risks of cryptocurrency trading, especially those that bande to be overlooked by commençant traders.
The 2017 ICO mania had already educated the community embout the risks of investing in projects without sound fundamentals. However, while élémentaire angle offerings have evolved into vetted élémentaire exchange offerings, scams are still rife in this area. According to a différé by Federal Trade CommissionSince 2021, more than 46,000 people have claimed to have lost over $1 billion worth of cryptocurrency due to fraud.
From pump and dump projects to shady mercatique tactics, the lack of sound regulation globally enables fraudsters to thrive here. However, this is not the only way you could lose your money. Cryptocurrencies can be particularly évaporable, but investing in anything comes with some risk.
différé from immunity It disclosed losses of over $670 million in the annexé quarter of 2022, up 52% from second-quarter losses of $440 million in 2021. Many projects aren’t exactly scams but you can’t be trusted with your money. Recently it was found that crypto lending bank Celsius is marking customer deposits as Unsecured Loansleaving unsuspecting users unable to withdraw funds after Celsius lost clients’ assets in risky deals.
Last year, Crystal Blockchain reported that the value of cryptocurrency is increasing He lost $4 billion in hacking, with many smaller exchanges failing to implement the security measures expected from platforms that host a lot of value. Blockchain technology is designed to take back control from financial institutions, and prevent any third party from communicating between people and their money. Trusting unregulated projects like Celsius that bring centralized banking concepts to cryptocurrencies has its risks, as does société in vocabulaire.
The recent collapse of the algorithmic stablecoin Terra UST was a assertion reminder that while people can be incentivized to act maliciously, manière contracts have no loyalty or idéologie sense and can easily be exploited by malicious actors to run into billions. The crime of underground vaults has caused ripple effects across the blockchain arena, even as industry venture affairé fund Three Arrows Actif has fallen to its knees.
However, the cryptocurrency world is not all doom and gloom. Not all exchanges are incompetent, not all crypto banks are fraudulent, and not all tokens published in the blockchain can be easily exploited. Cryptocurrency is built from an anarchist registre, but not all projects votation against regulation. Phemex, for example, a fully regulated cryptocurrency derivatives and asset conduite platform with more than 5 million clients around the world, believes that regulation may be the only way forward.
Grab the crypto bull of the centuries
Dealing with bear markets can be tricky, especially if you don’t want to cash in. With prices dropping, many cryptocurrency investors flock to less risky grâce opportunities, and supply responds to demand. It is undeniable that the cryptocurrency markets are still very much dependent on camaraderie. The variety of cryptocurrency applications is growing rapidly, but there is still a bonasse way to peg nombreux cryptocurrencies to a lumineux price, which makes the asset class highly nerveuse to changes in market camaraderie. In bonus, cryptocurrency traders have relatively simpler access to high levels of leverage. Although this makes it plausible for manière traders with less affairé to make huge returns, when prices drop, it can lead to a cahot of market-wide losses.
During times of volatility, it is imperative that investors carefully assess the state of the market and consider safer investment products. Cryptocurrency exchange in Singapore Phemex It has evolved into a complete financial asset conduite platform. As they noticed the demand expanding from a perpetual contract courtier galéjade to a broader célébrité looking for safe and convenient crypto investment options, the company responded quickly. Phemex’s savings product allows investors to earn interest on their cryptocurrency through docile asset conduite and fixed savings products. Unlike the competition, Phemex has taken into account that crypto investors need to stay manière. Phemex recently revealed a special offer on a savings product that allows users to earn up to 18.8% on short-term ETH deposits and up to 4.5% on stablecoins.
Founded by a team of constituer Morgan Stanley CEOs, Phemex offers its users world-class security, growing from a small derivatives trading platform to one of the world’s most popular cryptocurrency exchanges. Unlike Celsius, Phemex ensures clients always have access to their money, even if the markets collapse due to unforeseen circumstances, and they have kept that promise even during this latest market écrasement.
The latest LaunchPool imagination offers users to earn more income with different hommes of cryptocurrency. Users can also unsubscribe at any time and enjoy hourly payments.
Phemex’s LaunchPad product also introduces the industry’s hottest upcoming projects, enabling investors to get early entry into great projects with individuelle staking benefits without having to worry embout being scammed. While ICOs are conducted by anonymous teams with no guarantee of commitment, Phemex screens every project listed via LaunchPad to ensure the safety of its clients’ funds. In bonus, Phemex is now approved for operations in Turkey, Lithuania, and 48 countries in the United States. The exchange also recently became a member of the Travel Rule Universal Amélioré Technology (TRUST) and is in progress to be fully compliant with the US Travel Rule.
There are no one-size-fits-all solutions to dealing with bear markets, and with so much negativity from scams, scams, and hacking, cryptocurrency investors are looking for the most reliable and low-risk ways to grow their capital. With fondamental ventures like Phemex pushing for sound regulation, perhaps the next bear market bodes better for both new and seasoned investors alike.
Annotation: Investing in cryptocurrencies and crypto assets is subject to financial risks and readers should exercise their own due empressement. Architecte Media does not endorse any such investment.