Crypto Currency: Is it right time to buy my first Crypto Currency?

               The right  time to BUY the first Crypto Hello my dear friends, I hope you all are doing well .   Today I will discuss, is it ...

            The right time to BUY the first Crypto

Hello my dear friends, I hope you all are doing well. Today I will discuss, is it the right time to buy our first cryptocurrency or not?

                         So let's start Investing With Ease.

Guys before getting into the content I want to tell you that, I don't recommend any specific stocks, mutual funds, cryptocurrency, or any other asset classes. You must do your own research and then invest in any asset.

Earlier I have already written many cryptocurrencies and investment-related blogs, if you don't have proper knowledge of cryptocurrencies you can visit my blogs, link below. But first, I suggest you, read the whole article and then visit my other blogs.

 CryptoCurrecncy-Part1  CryptoCurrency-Part2

First of all, we must understand why the whole Crypto markets and the Stock markets are falling. For that reason, we must understand the "Short-term Market Cycle", "Long-term Market Cycle" and other important factors.

I already discussed these things in this article, link here => Buying-Opportunities

 As of now, we can see here Bitcoin(BTC) price action.

We can clearly see here that currently, Bitcoin is going through a Bear run.

We accept it or not there was a deep co-relation between the Global Stock market and the prices of Cryptocurrency. When we saw a bull run in the Stock market, we also see a bull run in the Cryptocurrency market, and most of the time the alt-coins outperform other assets. But in a bear market, everyone watches closely the price action of the Bitcoin, so we can take our next step.

As of now the Global Stock Market is also down for many reasons, that we gonna see next.

⦿Reasons Behind Market Crash:

1) Inflation Data:

This time inflation plays a big role. US inflation rate shows that it is at a 40-year high. In April the annual inflation rate was 8.3%, so, for this reason, US FED(Federal Reserve) gonna tighten its monetary policy. For this reason, we might see multiple rate hikes in near future. US FED already hiked its interest rate by 50 bps, and if we see more rate hikes the situation would be more worsen, and the American economy can face a recession. And accumulating all these things all the investors in the Stock Market and other riskier assets like Cryptocurrency, everyone is pulling back their money and investing in other safe assets or some of them holding cash for now, so they can buy assets when they become cheaper.

2) Bond Yield Pull Back:

According to CNBC, the 10-year US Treasury Bond yield slipped below 3%, after the US inflation data. Now we all know when the bond yield comes down this means everyone pulling out money from the Stock market or other riskier assets, and they are investing this money in bonds, which are a comparatively safer asset.

For these data, we can surely assume that investors and traders are quite fearful because of inflation and dips in bond yield, and they are looking for safer assets for their money.

3) Terra Luna Crash:

In recent days we witnessed one of the most tragic events in the history of cryptocurrency. We saw one of the most unfortunate events in this market, many investors lose their money, and when investors lose their hard-earned money it creates a panic situation in the whole market. And the same happens, everyone runs for selling their crypto holdings, and the Crypto exchanges face a situation like a bank run.

This event triggered the market crash and big coins lose their 20%-40% of market cap, and the other altcoins lose 50%-80% of their market cap.

🠊 Still, no one knows who or which group of people did this, but the main reason for the crash is attackers target the Terra foundation and dump their cryptocurrency LUNA.

➤ A short summary of this attack: Terra foundation going to launch some new projects that gonna help them to grow faster. Now some of the attackers decided to stop this. And what they did?

They brought lots of UST a stable coin that has been pegged with the US dollar & it is handled by Terra foundation. So 1 UST means 1 US dollar approximately. Now the attackers dumped the UST at Binance(One of the largest Crypto exchanges in the world), now when there was a lot of UST available on the exchange the auto algorithm of Terra started buying UST to stabilize the price of UST with the US Dollar. In the meantime, Terra gonna launch new projects so they need liquidity, and they don't have many BTC reserves to keep buying the UST to stabilize the price.

First, they try to buy UST to save its value but after a time when they are running out of reserves they give up, and with that, the value of UST falls.

Now when the value of UST falls everybody thought that Terra foundation is out of cash reserved or something is very suspicious there. So, in panic, everybody started selling their Luna, and eventually, this currency's value came to near zero and it was delisted from most of the exchanges.
This coin was one of the top 10 cryptocurrencies in the world. Now it lost its value. That's why everyone is scared to invest in any cryptocurrency in the market.

4) Uncertainty of Future:

We all know about the Russia - Ukraine War, which pushes the uncertainty in the market, for this war the international gas and petrol prices go up, and for this reason, other commodities prices also go up. Which causes a great inflation

After that, there are news coming about Russia threatening Finland and Sweden, and this caused a big tension for investors that Russia is already facing a huge trade ban, and if this situation escalated more then we can see more sanctions on Russia. As Russia is a really huge natural gas exporter to Europe countries, then those counties will face more shortages in their resources.

⦿Should I buy my first CryptoCurrency?

➤In this volatile market, any kind of investing or trading is very risky. Still, we can start investing if we follow some simple rules.

1) First of all if you are buying your first crypto then never be greedy for too much profit in a small duration. Always invest in well-known cryptocurrencies, which have good past records, and are fundamentally strong.

2) Second, never invest in unknown tokens because most of them are just worthless tokens without any use. Before every investment, you must do your own research at first, then invest in cryptocurrency, because it is one of the most volatile asset classes.

3) Never invest with a lumpsum amount because we never know when the market will fall, because the international market depends on various variables. We never know when we will have our best chance to buy. That's why to invest in a systematic way and enjoy all ups and downs of the market.

4) One last thing, never invest all your money because it is still a new market and there are some insane people out there who can easily change the whole game. Still, it is not a mature market so we can witness some insane volatility in this market,

If you follow these simple rules then you can easily buy your first crypto and I guarantee you it will not your last one.

⦿ In a previous blog, I already told the known mistakes that one investor must avoid.

If you want to ready it link given below 🠋

Buying-Opportunities

➤➤That is it for today guys. We will see you in the next blog, and I will try to post as fast as I can. Till then bye-bye & happy investing😃😃.

Editor:  Sk Elaf Ahmed.