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This article will help you answer some of these questions and will also help you get started with your cryptocurrency journey with some of the top coins like Ethereum and since it is very important to pick a good cryptocurrency exchange we would only recommend the best place to buy Ethereum in Canada.
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The cryptocurrency market has been very volatile for the last few months. Investors have seen their wealth erode to half in a very short period which has created a lot of tension and a loss of confidence in the digital currency space among the investors. In the last few months, there has been a dream run in the stock market where we have seen several stocks becoming multi-baggers over a very short period, at the same time the cryptocurrency market has been moving sideways.
Does this mean that cryptocurrencies are not a good form of investment? Does this mean investors should take out all of their money from the cryptocurrency markets and invest it into stocks? This article will help you answer some of these questions and will also help you get started with your cryptocurrency journey with some of the top coins like Ethereum and since it is very important to pick a good cryptocurrency exchange we would only recommend the best place to buy Ethereum in Canada.
Reasons for the fall: The cryptocurrency market after March 2020 witnessed a major bull run where top cryptocurrencies like Bitcoin rose from lows of $7,000 to highs of $65,000 in a year. Any investor who might have timed the market well could have made a huge amount of gain in this enormous bull run but all good things must come to an end at some point. Post April 2021, the cryptocurrency market dipped by more than 50% and to date, the market has only been moving sideways which has started frustrating investors after the quick gains they witnessed in 2020.
The major reason behind this dip is the Chinese government restricting all kinds of cryptocurrency activity. China has been a major mining hub for cryptocurrencies and because of these restrictions, the entire mining process gets affected along with the inflow of funds from the Chinese population. Another reason is also that investors felt that the markets were overpriced and they needed to book profits which caused a lot of selling in the market.
Is there any reason to withdraw my investments from the crypto market?The answer is no, China has tried to pull off these stunts in the past as well but they always seem to come around. Once that happens, we may again see a major bull run that would outperform other financial markets.
What is to be done now?For now, sit tight till the market is moving sideways. One can always invest in stable coins like Tether which are completely independent of the market dips and do not show much volatility but at the same time offer all benefits of any cryptocurrency. If you want to know where to buy Tether in Canada or where to buy any other cryptocurrency then just log onto the Netcoins website and get started with the following instructions.
First, you need to provide your personal information to open an account. Then, you need to get your details verified. After this is done, you can transfer money into the wallet and begin trading.SOURCE CREDIT: https://netcoins.tumblr.com/post/657382162808569856/why-is-the-cryptocurrency-market-falling-every
