We all are aware of the sudden dump of Terra (LUNA) and TerraUSD (UST). Almost 60% of investors have wiped out on the dump day of the Terra (LUNA). It came from $99 to nearly $0.0001536. The total crypto market cap dropped from $3 trillion to $1.25 Trillion. Billion dollars have been loose by investors in this Terra crash.
However, despite the sharp drops in crypto token prices, traders’ volumes have remained healthy, indicating that investors’ optimism has not diminished much. As a new generation of investors comes into the market, they search for opportunities.
Crypto is a relatively nascent and volatile asset class compared to other markets. But investors can reap significant rewards by investing in a mid-to a long-term strategy that avoids volatility-induced risks.
The CEO of ZebPay, Avinash Shekhar, said that more money was made by investors who invested in a dip. But this requires a high degree of risk-taking ability,” cautioned.
The ‘buy the dip’ approach is a risky investment strategy because it attempts to time the market. The rupee cost averaging method, on the other hand, is more appropriate because it allows investors to hedge their risks by spreading out the acquisition costs, says Shekhar.
Investors should avoid speculating and build a long-term portfolio for the maximum return on investment.
The cryptocurrency decline can be attributed to two reasons: high-interest rates and the debacle, according to Manit Ankhad, Vice President and Head of Crypto Research at Finance. These adverse events have to be digested by the industry makers.
The downside is that some crypto experts believe it is not the right time to enter the space as overall sentiments remain negative and there is not much upside to look forward to in the near future.
The co-founder and CEO of Bitbns, Gaurav Dahake, said that there might be a slight change to see some greenery in the market, but the overall crypto loos in bearish mode. According to Dahake, investors should wait until the June quarter to invest in prime assets like Bitcoin and Ethereum as part of a systematic investment plan (SIP).
Analysts recommend staggered entry into the market for investors to increase returns while reducing the average cost of entry when the market begins to recover.
Many people are interested in Decentralized Finance (DeFi), Web 3, and Metaverse as strong emerging themes among the new projects. In Ankhad’s view, DeFi and Web 3.0 offer enormous potential still awaiting exploration. “These two projects will substantially disrupt some of the established systems.”
Zebpay’s Shekhar supports him and endorses DeFi, Web 3.0, and metaverse as themes. This technology will change how people interact with each other and with technology.” he said.
Disclaimer: The suggestions, opinions, views, and recommendations of the experts are their own, and DigitalCoinPrice does not endorse any of them.