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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 Pi Cryptocurrency Safe?
Pi Network captured the crypto community’s interest even before it officially debuted. Its innovative mobile mining approach and user-friendly design simplify crypto adoption for a broader audience. Some users see this as a chance to get engaged in the crypto from the beginning and profit in the future, similar to how early Bitcoin adopters made huge profits by mining and keeping the coin. Other users have compared Pi to a worthless multi-level marketing (MLM) scheme.
Which Cryptocurrency Is Best To Invest In 2021?
Many altcoins are flourishing to invest in. Some cryptocurrencies with great potential are Ether, Ripple, Tron, and more. Investors are trying to diversify their portfolios and are flocking to the leading cryptocurrencies. Many growing businesses are already accepting cryptocurrency as acceptable payment methods.
Is Ethereum Safe To Invest?
The Bitcoin market is unquestionably more volatile than the stock market. This may not be the market for you if you are incredibly risk-averse. Ethereum, on the other hand, may be a terrific investment for you if you're a diamond-handed investor who won't lose sight of short-term losses. Ethereum is a relatively safe investment as it is also based on blockchain.
What Is Virtual Currency?
Virtual currency is a type of uncontrolled digital currency that can only be used online. It is exclusively stored and transacted using designated software, mobile or computer applications, or unique digital wallets, and all transactions are conducted through secure, dedicated networks. Because digital currency is just currency issued by a bank in digital form, virtual currency is not the same as a digital currency. Virtual currency, unlike ordinary money, is based on a trust structure and cannot be issued by a central bank or other banking regulatory organization.
What Is The Meaning Of Crypto?
A cryptocurrency is a digital currency that is secured by the process of cryptography, making counterfeiting and double-spending almost impossible to happen. Blockchain technology is used to produce cryptocurrencies ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a centralized authority does not issue them.
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.
What Are The Best Cryptocurrencies To Invest In?
The best cryptocurrencies to invest in would be the ones you study and analyze in detail. Some of the most popular cryptocurrencies include Bitcoin, Ethereum, and many altcoins such as Tron, Ripple, Litecoin, etc.
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.
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.
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
