Is now a good time to get into cryptocurrency? (Bear Cryptocurrency Market Survival Manual)

The encryption market, a place that is more reversed and outrageous than a movie.

Let me talk about the crypto market situation in the past two days. The Terra governance system voted to approve the plan to destroy 1.3 billion UST tokens (accounting for about 11% of the total supply chain); Binance, OK and other exchanges support Terra airdrops and token migration; StepN, which has been in full swing recently, announced that it will check out users in mainland China, and will stop GPS and IP location services on July 15, and will no longer serve mainland users.

Under the influence of domestic policies, anyone who wants to use blockchain technology to achieve financial freedom or make a fortune will pay a heavy price. Now StepN has been cleared (or the official actively blocked mainland users), and I don’t know how much People still remember the running app Qubu, not to mention that the rules of attracting people above the third level obviously violate the "Regulations on the Prohibition of Pyramid Marketing". , it is only a matter of time before Crash is outlawed.

Does anyone still remember Baer Chain, which was once a big hit? Although the mechanism and technology are different from Terra, the trend of the issued tokens has many similarities. It also directly increased hundreds of times and tens of thousands of times from the price of cabbage, and was sought after by many people. , Baer Chain claimed to be the leader of the blockchain game industry before the concept of Gamefi became popular. It drew a big pie for investors and trapped most of the funds through the voting lock-up mechanism. When the bubble burst At that time, there were investors who defended their rights and reported the case all over the country, and in the end the founder was controlled. This case is not an isolated one. What I want to say is that whether it is in a bear market or a bull market, your capital is the most important thing, not how much a certain currency has risen. You can operate the alliance chain, but as long as there is a large amount of capital outflow in the public chain, we believe that the country's tolerance for this will become lower and lower, and it will severely crack down on this kind of capital outflow.

In the cryptocurrency market, volatility is a constant. While volatility is nothing new to the cryptocurrency market, Terra's sudden crash has had an impact on the financial system. Because stablecoins are considered to be an integral part of DeFi, they came out to protect investors from the inherent volatility of cryptocurrencies, but now they are stable, which is really worrying.

That being the case, is now a good time to enter the crypto market?

Before I talk about this question, I want to ask you a question, are you sure that your salary can outperform inflation? Will your pension funds still cover the cost of sickness?

Back to the question just now, is it a good time to enter the encryption market. I can only say that now is an opportunity and a crisis.

Let's take a look at the pancake situation first.

Market crashes or surges do not happen every day, but who can not remember that Bitcoin rose to nearly 70,000U last year? Just ask, who would have thought that Bitcoin could rise to 70,000U. The recent crash of the cryptocurrency market only highlights the volatility of the market, but I think it is a good thing that the poor projects are filtered out and the innovative, excellent projects are left behind. Therefore, what we need to do now is to protect our principal; and second, to learn more, not to be reckless, and to redistribute funds to diversify our investment portfolio. Only in this way can you maximize your profits and minimize your losses.

Nowadays, the new crown virus pandemic has affected the economic conditions of many countries around the world. When the world economy is uncertain, cryptocurrencies can be regarded as safe. Given that Bitcoin itself has its own supply constraints, I am bullish on a recovery in price in the long run despite the recent drop. People who attack cryptocurrencies do nothing more than worry about security issues. But this is considered safer because cryptocurrency transactions are anonymous and do not involve user identities. But this aspect has also been criticized, saying that it is easier for some criminals to use money laundering or fraud, but I would say that as more and more countries accept this currency, this situation may be regulated to get rid of these situations.

The public says that the public is right, and the mother-in-law says that the mother-in-law is right. Although these issues may not be discussed in the short term, it is a good time for investors to learn the lessons learned from the growth of cryptocurrencies since Bitcoin's launch in 2008.

As Forbes’ Michaeldel Castillo observed, the history of cryptocurrencies has been defined by five resets — in 2014, 2016, 2018, 2020 and today.

• The first came in 2014, when essentially the world's only bitcoin exchange, Mt. Gox, imploded following a nearly half-billion-dollar hack.
• The second was TheDAO Hack in 2016, when an attacker spoofed a smart contract to gift away $60 million worth of Ethereum, today worth $8 billion.
• The third happened in January 2018, when the ICO bubble burst and began a year-long decline that wiped out 60% of the crypto market or over $700 million, most of it in the form of worthless junk tokens Appear.
• The fourth occurred in March 2020, when cryptocurrencies lost 40% of their value along with most other global financial markets.
• The fifth time, which is now.

Each reset not only resulted in an increase in price and market capitalization, but also cleared the way for rapid innovation, Michael said.

The two exchanges we know, Coinbase and Kraken, developed during the implosion of Mt. Gox; the implosion of DAO and the collapse of ICO laid the foundation for the development of DeFi and the popularity of DAO today.

Seeing this, you should be able to understand what I said, why entering the encryption market now is both an opportunity and a crisis. The rise of cryptocurrencies, counting them in detail, almost entirely occurred in an environment where interest rates were at or close to zero, that is, they ushered in a resurrection in the crash, just like the phoenix nirvana, and went to a higher level.

Second, while we all know the main appeal of cryptocurrencies is that investors can make money by taking advantage of their high volatility. But I dare say that those who own encrypted assets, many people do not understand them. Like, at the annual shareholder meeting, Warren Buffett said he wouldn't pay $25 for all the bitcoins in the world. In other words, all cryptocurrencies will eventually be worth something, it's just their price that changes.

So, why are more investors willing to continue to hold crypto assets even in such a volatile crypto market?

In the end, though the entire economy and society may not be optimistic about the cryptocurrency scenario because of aspects such as security. But technology is good, and it cannot be discarded just because there are bad ideas in use. I believe that as governments around the world become more aware of the power and influence of cryptocurrencies, regulations may soon be introduced to make them safer, benefiting all, rather than fearing them.

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The above views represent the views of the author only, not the views of the platform. Investment is risky, please invest carefully!