Disclaimer: The content below should not be taken and viewed as investment advice, but only information and opinions. This article is for information and illustrative purposes only.
Here are the major reasons why Cryptocurrency are going/gone down of recent:
- India’s finance minister statement
- Facebook ban on ICO advertising
- SEC crackdown on ICOs
- Profit taking and panic selling
- South Korea crackdown on crypto currencies (FUD): South Korea is also cracking down on cryptocurrencies heavily as well. The main reason for this is that majority of the global investors in cryptocurrencies reside in South Korea. Even though, the population of the country might be small but the number of investors or the density of investors is actually pretty high. This is one of the main reasons why any change in the regulatory framework in South Korea would actually impact the entire cryptocurrencies space as well. South Korea has made it harder for children as well as criminals to trade in cryptocurrencies. The exchanges are required to collect the documents and verify the identity before allowing them to trade.
Finally, it is still an emerging market for cryptocurrencies, It may seem like the sky is falling sometimes but it’s not, there is a silver lining and this is the time to buy!
As at the time of writing this, Bitcoin is less than $7,000, Ethereum is less than $700, Bitcoin Gold is below $100 at a whooping $84.06! Others altcoins also fell drastically. Rather than getting worried, this is the time to take a position in some/all these currencies if possible because the future is bright!
I close with this: The simple way to invest, is like warren buffet, you are never going to buy the bottom or sell the top. But you want to take a chuck of the middle, and that is done by simply buying and HODLing longer term.