By: Damian Okonkwo
The Bearish Season that befell the Crypto market in 2022 has given serious cause for all Nigerian traders who blindly jumped into cryptocurrency investment to pause and consider their decisions and understanding of cryptocurrency trading as an investment package. Many traders who invested massively in various crypto projects at the beginning of the year when Bitcoin was above 30K have seen their portfolios today depreciate by more than 60%. A lot who took to futures to long the market during the dip without proper guidance have lost virtually all their assets today.
On a broader perspective, the generality of crypto investors across the globe who bought various crypto assets last year especially at the apex of the bull run in November hoping to make more profits have witnessed the greatest devaluation of the capitals as prices continuously fell since then till this point.
Still, on this record, Tesla was reported to have sold some of its Bitcoin holdings purchased at higher prices last year at a significant loss below 30K in 2022. This means the crypto investment by the renowned world first-class company last year brought them some losses in 2022.
Standing on this background, many observers have paused to ask: Is cryptocurrency trading an investment package？ Well, the answer to this question has never been an easy one.
While a greater number consider crypto trading as an investment package; the various regulatory bodies existing in each country have always warned its citizens to be wary of the risks involved in cryptocurrency trading. Cryptocurrency trading has been classified by the SEC as the riskiest investment package. Often the risk involved in trading crypto could be so large that the investor could lose his entire capital in unforeseen circumstances or when he makes wrong predictions while trading crypto as CFDs.
Just as many tend to have profited hugely from their cryptocurrency investments over the years. A greater number seem to have lost massively from their investment into crypto. Often losses arise from a lack of proper understanding of the factors that move the crypto market which guides the trader on when to buy and sell. Here, analysts reckon that the best time to invest in Crypto assets is during the bear season in the hope of selling off when prices recover at the apex of the next bull season.
Investors are always advised to invest only the amount they can afford to lose into various crypto projects as there is no guarantee for profits in all crypto investments.
What is the most popular platform to trade cryptocurrency today？
Binance exchange has become the best platform for trading cryptocurrency across the globe. It has extended its network into all countries providing an efficient customer support service. The highest number of crypto assets to trade are found on the Binance exchange. Beginners can trade crypto with great security for their funds at the Binance crypto exchange in their country.
Advantages of Cryptocurrency investments
· It offers an opportunity to make profits.
· Often traders use it as a hedge against inflation.
· It is a fast means of payment
· It facilitates international payments at low costs.
Disadvantages of Cryptocurrency Investment
· It is a risky investment.
· There is no guarantee for profits.
· Often there is none to hold responsible in cases of loss of one's assets using a decentralized exchange.
· Banks have been prohibited from facilitating Cryptocurrency transactions making it difficult to exchange crypto assets into fiat currencies in some countries.