Perhaps you are already wondering whether to hop onto the crypto train or not as you might have been noticing so much buzz around crypto due to news or words of mouth from friends and families. Bitcoin and alts coins which relies on the decentralized, cross border and immutable blockchain system to make and verify transactions have been generating so much buzz and is now a global concern.
This blog post is specifically written to present a clear view of activities hovering around the crypto world as it is an open secret that sentiments and hypes at most times drives the volatility of the crypto market.
Of course, trading crypto makes money for some people but even with high level of understanding of trading patterns and charts, a trader can still record loss.
The volatility in crypto is still very much prevalent as a news of a major breakthrough or partnership can trigger a bull run for a particular coin. There are frequent quick gains in prices as well as losses.
Notably, the crypto market recorded all time high of prices in the most recorded bull run of Bitcoin and most alts coins in November 2017. This brought more limelight to the crypto industry which also triggered so much interest in the dynamic market and blockchain technology. This further gave rise to many crypto start-ups who sought for funds through ICOs or STOs so as to kickstart their blockchain idea. Unfortunately many of such crypto projects that were able to rake in millions of dollars in major cryptos such as Bitcoin, Ethereum and Litecoin are still struggling to achieve their goals. Some have even gone scam leaving investors stranded and confused.
They have been several occasions of spike in prices of coins. There are many cryptocurrencies have jumped from 0% to 500% or even more while there have downward price movement 500% to 7% all thanks to the crypto volatility.
Interestingly, in year 2018, there was an increase in demand for blockchain developers which shows that there is still so much activities going in the background though it will take a while before the end results are available for mass adoption.
As a new crypto enthusiast, it is important to note that the crypto industry is still growing and equally facing challenges of crypto tax law formulation and implementation as well as other legal framework from various countries. In fact, there are still hacks on centralized/decentralized wallets and even blockchain 51% attacks are prevalent. It is still very illegal in some countries to trade or hodl any crypto while some countries are embracing crypto and even creating an enabling environment for crypto start-ups to grow.
For mass adoption, there is need for more technological breakthrough, real use case of blockchain technology and some level of price stability to boost more confidence for people to come on board. The crypto industry is still nascent and holds a lot of opportunities and challenges. It is important to do a thorough research before deciding to join the crypto train or not.