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Even though cryptocurrency markets are notoriously volatile, when a bear market hits, the investors are startled, and their faith in the asset class is shaken. Bear markets are a common component of the financial ecology, despite being bad for our portfolios.
Many investors are withdrawing their funds due to the fear of massive losses. We should try to understand that there is no need to fear, as this is a natural market response to news making the rounds and the broader macroeconomic environment. In fact, another set of investors prefers to view market crashes as an opportunity to buy more assets at a discount. If there is one thing we can be sure of with cryptocurrency, it is that it cannot be eradicated, and this is not the end of the asset class. The remarkable comeback from the crypto winter of 2018 is evidence that the cryptocurrency market and community are incredibly resilient.
Here are the top coins that we should keep an eye on during this Crypto Winter:
Top coins that will survive the crypto crash
Bitcoin was introduced by a person or a group named Satoshi Nakamoto. BTC, the original cryptocurrency, is supported by practically all crypto communities. Offshoots like Litecoin and Bitcoin Cash were also produced from its blockchain and software. Both want to be the cryptocurrency used most frequently for daily transactions.
In November 2021, BTC reached a 52-week high of $68,700 before beginning a protracted decline. Bitcoin has suffered significant losses over the past seven months, falling roughly 70% between November 2021 and mid-June. From its 52-week low, Bitcoin has gained some ground and is trading at about $20,400. Experts predict that the coin will reach $75,000 by the end of 2022. Check the current BTC prices here.
Ethereum, the second-largest cryptocurrency by market cap, was multiplying manifolds before the market crashed. ETH is famous for its growing popularity as an investment vehicle. This growth is because Ethereum is seen as a safer way to invest than Bitcoin, which has become notorious for its volatility and wild price swings.
Ethereum has produced a fascinating universe of decentralized applications. On the Ethereum Network, a vast ecosystem of projects, tokens, and dapps have been developed. Therefore, even if Ethereum suffers a setback, it still has the backing of hundreds of users close to the community who will try to keep the network active. With an all-time high of $3500 in 2021, ETH will soon pull through the storm of crypto winter.
Investors invest in stablecoins to provide security and stability to their assets during a crypto market crisis. USDT is a coin that can be easily exchanged for other currencies. It is built on the public ledger of Bitcoin, so it’s always available to use, and you’ll never have to worry about fluctuating value.
USDT was introduced in 2017 by Tether Ltd, which is based in Hong Kong. Tether aims to provide an alternative to fiat currency by using blockchain technology, allowing them to create a digital currency with no volatility. To maintain stability, USDT primarily balances another cryptocurrency through pair exchanging.
The entire backing of USD Coin (USDC) is provided by dollars-denominated assets. One USDC coin has the same value as one US dollar, making USDC a tokenized version of the dollar. Being a stablecoin, USDC is intended to have a constant value. Similar to USDT, most of USDC’s supporters are users attempting to avoid excessive volatility.
Influenced by the dollar value, USD Coin gains from the weak fiat markets. Many consumers will choose USDC as a steady pair to fend off the losses. Hence, the coin will persevere through the crypto winter.
As the first third-generation cryptocurrency, ADA claims to address scaling and infrastructure issues that were first experienced by both ethereum, a second-generation cryptocurrency that expanded the use cases for coins to include smart contracts, and bitcoin, a first-generation cryptocurrency that introduced the concept of digital coins. In addition, Cardano seeks explicitly to address sustainability, interoperability, and scalability issues on cryptocurrency systems.
According to experts, ADA will flourish shortly. This is because the digitization of money will heavily impact the market, making it clear that coins like Cardano (ADA) will only continue to increase.
Dogecoin (DOGE) is a cryptocurrency that was introduced as a “joke currency” but has grown like no other meme coin. Dogecoin was developed with the aim to create “a fun place to share images, stories, and news related to dogs.”
The community around Dogecoin has evolved rapidly over the years, with many people now using it as an alternative to major coins such as Bitcoin or Litecoin. Dogecoin’s slogan is “to the moon!” which reflects its goal of reaching a $1 billion market cap by 2021. The community is HODLing and is sure that this isn’t the end for DOGE.
Solana was founded in 2017 by David Sonstebo, co-founder of IOTA and the Ethereum Foundation. The Solana platform was designed to host decentralized, scalable applications. Founded in 2017, Solana is an open-source project currently run by Solana Foundation based in Geneva, while San Francisco-based Solana Labs built the blockchain. Solana has a fast transaction processing speed, significantly quicker than Ethereum. It also has lower transaction fees when compared to rival blockchains like Ethereum. Disrupting the technology, Solana is going to grow leaps and bounds, according to experts.
Conclusion
The crypto market has had an ATH of $3 Trillion. Eradicating crypto is impossible since it was designed to be disruptive and embark on a new financial age. A bear market caused by the waxing and waning of typical macro cycles won’t be able to halt cryptocurrencies. Cryptocurrency will recover, even though some people might lose money, some may HODL, and others may even buy more. For investors, it’s simply an opportunity to buy more.
Frequently Asked Questions
Is Mining Cryptocurrency Legal?
Cryptocurrency mining can be time-consuming, expensive, and sporadically profitable. Mining has an appeal for many cryptocurrency enthusiasts as miners are paid directly with crypto tokens for their efforts. The legality of cryptocurrency mining is dependent on where you live. In India, there is no restriction on crypto mining.
How Safe Are Cryptocurrencies?
Cryptocurrencies can be safe, but your crypto wallets can be hacked if proper security steps are not performed.There are also dangers and uncertainties associated with investments, and we cannot declare any virtual currency investment risk-free. Buying and selling cryptocurrencies does not have to be dangerous if the trader is well-versed in the market and treats his coins with care.
What Is Cryptocurrency?
A cryptocurrency is a digital currency secured by encryption, due to which chances of activities such as counterfeiting and double-spending taking place get close to impossible. Cryptocurrencies get created on blockchain technology ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are unique in that they do not get issued by any central authority. The term "cryptocurrency" comes from the encryption techniques used to keep digital currencies and the network safe.
Is Bitcoin And Cryptocurrency The Same Thing?
Bitcoin is a cryptocurrency that was designed to facilitate cross-border transactions, eliminate government control over transactions, and streamline the entire process without third-party intermediaries. The absence of intermediaries has resulted in a significant reduction in transaction costs. Satoshi Nakamoto, the creator of Bitcoin, created the first cryptocurrency in 2008. It began as open-source software for money transfers. Since then, plenty of cryptocurrencies have emerged, with some focusing on specific fields.
What Is The Safest Cryptocurrency To Invest In?
Bitcoin has had the highest market capitalization, has been around the longest, has the most experienced development team, and has enormous network impact and brand recognition. As a result, while trading cryptocurrencies, the rate of return on Bitcoin is commonly used as a benchmark. However, the risks associated with cryptocurrencies remain, and the safest cryptocurrency for you depends on your analysis.
Is Crypto Legal In India?
Cryptocurrencies are legal in India, and anyone can purchase, sell, and exchange them. It is currently uncontrolled, as India lacks a regulatory structure to oversee its operations. Per the Ministry of Corporate Affairs, companies must now record their crypto trading/investments within the financial year. In cases where a person receiving the gains is an Indian tax resident, or the cryptocurrency is regarded as domiciled in India, cryptocurrency transactions have been taxable in India
How To Invest In Cryptocurrency Stocks?
Cryptocurrency can be purchased in two ways: through mining or exchanges. The process of confirming and adding transactions to the blockchain public ledger is known as cryptocurrency mining. Cryptocurrency exchanges are another option. Exchanges make money by charging transaction fees, but there are alternative platforms where you may communicate directly with other cryptocurrency traders.
How Many Cryptocurrencies Are There?
There are over 5000 other digital currencies available on the internet in addition to Bitcoins. The only problem is that they haven't gotten the users' attention. Besides Bitcoins, a few other digital currencies have gained popularity among users. It's been more than ten years since Bitcoins were first released, and now they've achieved new heights thanks to their phenomenal success.
Who Invented Cryptocurrency?
Satoshi Nakamoto invented cryptocurrencies and the technology that makes them function in 2009. The presumed pseudonymous individual or persons who invented Bitcoin used this identity. In addition, Nakamoto created the first blockchain database. Even though many people have claimed to be Satoshi Nakamoto, the person's identity remains unknown.
Is Cryptocurrency Legal In India?
In India, cryptocurrencies are legal; anyone can purchase, sell, and trade cryptocurrencies. They are currently unregulated; India does not have a regulatory framework in place to regulate its functioning. According to the Ministry of Corporate Affairs (MCA), companies must now declare their crypto trading/investments during the financial year, according to the Ministry of Corporate Affairs (MCA). Cryptocurrency transactions have been taxable in India when people receiving such gains are Indian tax residents or where the crypto is considered to be domiciled in India
