Why is the crypto market falling?
Cryptocurrency market, which took the whole investment space by storm by generating abnormally high returns in the last few years, is going through a bearish phase. Bitcoin, the largest and the most popular crypto, has fallen from the high of around $68,000 to $30,000 in the last six months. These levels were last seen in July last year.
The great fall in cryptos has spooked investors who are left wondering if they can still make multifold returns in cryptocurrencies. Fortune India spoke to Mridul Gupta, COO at CoinDCX, to clear the air around why the crypto market is falling. He also explained strategies to navigate the volatile crypto market. He said that there will always be an element of greed and fear when it comes to trading and investment. An investor needs to be very disciplined. Keep investing at regular frequencies and keep balancing your portfolio.
Investors may look at diversifying their portfolio, Gupta adds. "For instance, if young investors who accumulate smaller denomination and much less recognised coins in their portfolio add matured coins like bitcoin and ether as well, the volatility of their portfolio will be lesser. It would prevent them from making severe losses in their portfolio," says Mridul Gupta.
Diversification or investing periodically also helps the investors understand and remain updated with the whereabouts of the market, he adds.