After the Bitcoin Boom: Hard Lessons for Cryptocurrency Investors

Many investors threw their weight behind cryptocurrencies when the prices were at an all time high. They took risks and invested their life savings in crypto and expected handsome returns. Unfortunately, things did not quite go as envisioned. Bitcoin went on a nosedive that investors are still trying to fathom almost a year later.

Quite a number of investors claim to have been left in financial ruin by the series of losses experienced by cryptocurrencies. It is recorded that the value of all outstanding digital tokens has gone down to approximately $600 billion (75%) since the peak that was experienced in January.

This is not a new happening as the crypto market has undergone high ups and low downs before.  They have been able to get up from the lows and brush the dust off each time. However, this last one was a big one and is likely to have a lasting impact on adoption of the technology. Trybe is informative about all things cryptocurrency.

This is because the number of ordinary people who had invested in the tokens over the last year was simply astounding. The bad news is that this great number of people is likely to view cryptocurrency very negatively for quite a while.

Reactions from Investors

Almost everyone that has an inkling of what cryptocurrency entails must have heard about how their friends lost money in it. Reactions range from warnings hitherto ignored –the ‘I told you so’-to philosophical musings about rushing into barely understood situations.

The number of investors facing financial ruin may never be known since they have investments which are not worth the money they put in. a number of those who lost money have joined the markets and their current investments are more than their initial investments.

Some investors have despaired and even after getting back the money they lost, they have opted out of cryptocurrency. Others regret having joined the crypto bandwagon. Nevertheless, the pessimism has not fazed die-hard cryptocurrency fans as they continue to throng social networks to gain information on cryptocurrency.

Hard Lessons Learned

Many investors are still convinced that cryptocurrency is the best investment vehicle to be on. Despite the losses, they still hold on to their coins in the hope that technology will eventually catch up with crypto and they will recover their investments.

Some financial experts believe that cryptocurrencies can provide the perfect way to trade online if only the big corporate middlemen many investors rely on would take a hike. For them, giving up is not an option.

Additionally, many have leaned that the best time to invest is when the prices are down. Those who invested in 2013 encourage this kind of thinking.  They were witnesses when the bull market crashed with the price of Bitcoin dipped by more than 80%. After a long period, the prices picked up.

The idea communicated is to hold on because once the prices begin to go up, investors will reap huge benefits. While some have opted to throw in the towel, others have chosen to hold onto their coins and wait for price to turn around.