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Is it worth investing in cryptocurrencies in the face of the market crash?
The fall that the cryptocurrency market is having is no secret to anyone. Bitcoin, a currency that reached its all-time high of nearly $69,000 last year, is now priced at around $20,000.
Many investors in this cryptocurrency (as well as another) have ended up losing due to this fall. For some the loss is likely to be little, and for others it is thousands of dollars. This makes many people wonder if it is really worth investing in this market right now.
Today, we are going to analyze a little more in depth whether or not it is really worth investing in Bitcoin or any other cryptocurrency. So, if you intend to invest in this market, you must read this article.
the crypto winter
We have already talked about what the crypto winter is, so we are going to touch on it very briefly. This event is characterized by a market crash that can last for months or years. The last one we had lasted 3 years, during that time the price of Bitcoin hovered between $3,000 and $8,000.
After this happened, the cryptocurrency had an explosive growth, but of course, this is due to different factors. This is a highly volatile market, just as the price can go up fast, it can also go down.
When will the market go up?
It is very difficult to predict when the market may go up, right now, we are in a crypto winter. Predicting when it will end can be quite difficult.
However, in recent years , the market has been rather cyclical. In general, this period lasts 4 years, that is, the market first has a significant rise that can last a few months. This is followed by a period of decline until hitting a resistance and at this point, the currency sides.
It is at this time that the crypto winter begins and it usually lasts around two years or a little more. Finally, the currency begins to rise and the cycle repeats.
This has happened twice, the first in 2013 and the second in 2018. However, nothing guarantees that this can happen. We will have to wait to see when the bullish trend of the market will return.
Is it worth investing in cryptocurrencies right now?
This is the question that many people ask themselves and the truth is that despite the fact that the market is in crisis, it is still a good time. If you buy cryptocurrencies right now, when it goes up you will be able to earn good money.
Of course, you should be prepared to wait, as this is a long-term investment. In fact, it may be years before you see benefits.
In this sense, we have that the answer is yes, buying cryptocurrencies at this time is a good idea. Sure, only if you're willing to wait. If you are one of those who want to invest money and start collecting profits after a month, it is best to think about another investment.