Cryptocurrency is experiencing a significant price drop. From 65,000 USD all-time high this 2021, bitcoin’s price drops to less than 50,000 USD today. In addition, cryptocurrency ether also drops 1,100 USD at the same time period. Now that most crypto prices dip; should you buy or not?
- Why is crypto’s price dropping?
- Red flags to watch out for
- Buy PRV2 and PRVG while on the dip and enjoy PrivacySwap’s next migration
In this article, we will discover why cryptocurrency prices are dropping, and what you should do during the dip, along with how PrivacySwap 2.0 is getting ready for the next migration.
Before we deep dive into it, note that this is not financial advice. So take this article with a grain of salt. As we continue to advocate at PrivacySwap, always do your own research (DYOR) before investing your money
Why does crypto price drops?
The cryptocurrency had showcased outstanding performance in charts this year. Experts and investors have high hopes that the Bitcoin market cap could go up to $1 trillion. However, things turned south and the cryptocurrency plummeted below $50,000. Why?
Another Covid-19 variant “Omicron” surge and concerns resurfaced in countries like the US and UK. In addition to that, high inflation is also one of the reasons why these digital assets plunged.
With these, the digital assets price dipped to 17.7% on Monday, Coinbase reported. This includes a 13.5% fall in its trading volume on Monday at 35.4 billion.
The Chinese Government’s recent crypto ban announcement and President Joe Biden’s $ 1 trillion infrastructure bill were also seen as reasons why cryptocurrencies’ prices are getting lower and lower each day.
US president infrastructure bill enclose cryptocurrency brokers or exchanges to declare the names and addresses of their customers, as well as cryptocurrency gains and tax requirements for businesses or exchanges receiving more than $10,000 in cryptocurrency or digital assets.
Red flags you should watch out for
Investors and market experts mentioned that buying the dip could be a good idea. After the bitcoin dip from $42,000, the cryptocurrency is now playing around $49,000. Thus, those who bought such digital assets during the dip have now reported a good recovery.
Likewise, Ethereum also shows recuperation from the dip as ETH’s price rises from $ 3,800 to nearly $ 4,100 today. Nonetheless, it is not always a good idea to buy on the dip. There are lots of cryptocurrencies that are turning out to be a mere scam. So, to avoid exposures, here are some of the red flags you should watch out for.
It is not always good to join the hype.
People tend to be amazed by the exciting candle movement and tend to follow what is trending. However not every green candle is a go signal for you to buy or sell assets. Recently, for instance, thousands of people have been scammed by the “SQUID” crypto.
Fans of the show, where the crypto’s name was taken, were lured by the impressive chart of the digital assets as it skyrocketed to 3,000%. This made them invest in the platform hoping that their investment could also grow drastically. However, malicious developers rug-pulled all the assets invested on the platform, taking away millions of dollars of assets of the investors.
Though there are red flags such as the inability to withdraw their assets, investors rode the bandwagon and still invested in the platform. Sadly, they lost all their funds.
Related Article: On avoiding cryptocurrency scams: Squid Game Token (SQUID)
Fantastic return at a very short time
Uneducated investors always aim for easy money. However, most of the businesses or platforms that offer a fantastic return in a very short time, tend to be a scam. So, the best way to identify if a platform is a scam or not is to always do thorough research about the project.
It is also good to know its developers, whitepapers, tokenomics, and technicalities to fully understand the ecosystem. To further help you with your research about such platforms, read this article entitled: The 7 Ways to Spot Scams, and Rug Pull Guide.
Weak marketing strategies and poor websites
As they only aim to con people, scammers don’t pay enough time to beautify their social media accounts. You can check the legitimacy of their websites by putting their URLs on the website checker. You can also identify a fake platform using their social media accounts. Check if they have more followers.
If so, verify if these followers are real accounts by simply checking their username or by going through a few of them to check if these accounts are real people.
Lastly, you can always check their Telegram, Whatsapp, or Discord(if any) to confirm if these platforms are constantly updating their users, or if they even have REAL investors.
Moreover, there are still few ways to identify if a platform is a legit one or not before you invest in it especially on its dip. It is never wrong to delay investment if you are unsure about the platform in which you will be investing. Go through rigorous research first before you invest.
Suppose, after the research, you might have verified that it is indeed a legit platform. In that case, you can gradually monitor its chart movement.
If you noticed that the platform charts have been constantly dropping, learn to listen to the experts first before proceeding with buying. Also, always join their official community to get updates from its developers if they have plans on how they will be recuperating on such a dip otherwise, you can consider looking for another platform to invest in.
Now that we identify some of the red flags, let us now discover why you should buy the dip?
Buying the crypto dip
There are lots of platforms that can easily recover from such a dip. Therefore you have many options to choose from. The safest way is to invest in cryptocurrencies that are known in the market.
If you tend to invest in those new platforms. Again, identify if such platforms have backup plans on how they can respond to such continuous dip. Speaking of response, PrivacySwap 2.0 is also experiencing a dip at the moment. We are aware of it and we are constantly doing everything to respond to such a dip.
Looking at the price, it is good to buy the dip now. This is because we are now moving into building our DEX, and as we promised, it can be launched right before Christmas day. Thus, holding a PRVG and PRV2 now grants an entry to our next migration.
What can you expect from the next migration?
As we move towards and become our own DEX, we guarantee lower swapping fees. This can give you more returns. Aside from that, the PrivacyCard will also now come to life with its web3 wallet that will ease your crypto asset management.
As part of that, we also promised to give amazing rewards to PRVG and PRV2 holders, especially those who have been with us since day one and are continuously holding despite the dip. We also will reward every NFT holder with amazing benefits in return for holding one.
Nonetheless, we ensure that we will recuperate from this that will give every PRVarmy fantastic rewards for staying with us. Remember that hard work and patience will eventually pay off.
The whole cryptocurrency community is baffled by the continuous dip. Though some are already recovering from such price drop, there are still some who are still confused if they should pull out their investment to prevent a further loss.
If you are one of these people, we suggest seeking advice from the experts before proceeding with an impulsive decision. Because every small transaction you do on the blockchain can greatly affect the market price.
Moreover, we at PrivacySwap are continuously doing everything and we never stop brainstorming to make the platform the best and the safest DeFi platform available in the market.
Have you got any questions? Let us hear it!