LATOKEN: How to invest in cryptocurrency after a market correction (and is it worth it at all)
Over the week, Bitcoin quotations fell by 18%. Altcoins also dropped in price. Ethereum, for example, fell 10% in price. Let’s try to figure out how to invest in digital coins in the current situation and choose tokens for purchase. And is it worth doing now at all?
LATOKEN does not provide investment advice; the article is written for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.
Over the past week, the quotations of the crypto market have collapsed. Bitcoin fell 18% and is trading at about $45,000, according to CoinGecko. Ethereum rate has decreased by 10% and now stands at $3,5 thousand. LATOKEN experts will try to explain how to open long-term positions in such a situation and which tokens to pay attention to.
Absolutely normal correction
According to many analysts, the current market decline can be called a normal price correction, which is unlikely to lead to global sales. Fundamental factors affecting the market include the role of Elon Musk and Tesla in the current speculations on Bitcoin and the growth in coin sales on crypto exchanges. These factors will continue to play a role shortly so that the local decline may persist.
Earlier, Tesla CEO Elon Musk criticized the main cryptocurrency and questioned its decentralization. As an argument, Musk cited the situation with power outages in China, which reduced the hash rate of the leading cryptocurrency network by 35%. This gave rise to rumors that Tesla may start selling bitcoins. But Musk later stated that Tesla did not sell this cryptocurrency.
Nevertheless, Elon Musk’s verbal interventions are likely to be taken into account in the further movement of quotations. The fact is that market participants managed to form some immunity from media persons’ statements and are likely to continue to hold their positions, paying less attention to rumors and other conversations. The real risk for crypto assets remains the actions of the US authorities. If soon there is another news criticizing cryptocurrencies from, for example, US Treasury Secretary Jannette Yellen, the bitcoin rate may decline even more.
Which tokens to buy
As for bitcoin, the closest target of decline is the level of $40 thousand; most likely, the rate will be slightly below this mark, so it makes sense to return to buying the coin no more than $40 thousand.
Of the altcoins worth paying attention to, Ripple’s XRP can be noted, which has benefited from speculation on Elon Musk and bitcoin as a less “toxic” cryptocurrency. It might also be worth taking a closer look at Ethereum, which is aiming at the level of $5 thousand, and against the background of fundamental positive in the project, it may be better than the market.
In addition, Cardano, Uniswap, and XLM tokens look pretty stable. The strengthening of Cardano last week is due to news of improved network infrastructure. In just a week, altcoin has risen in price by almost 30% and took fifth place among the largest cryptocurrencies in terms of capitalization.
Uniswap is a lead DeFi project that keeps the coin stable even during “turbulence.” XRP is being kept afloat by news of litigation between Ripple and the US Securities and Exchange Commission (SEC). Market participants have already considered all possible negative scenarios for the coin in the price, so it shows a high level of resistance to negative. As for XLM, it is a sister project to Ripple; therefore, it is fundamentally supported by investors as a possible XRP replacement.
What cryptocurrency would you invest in right now? Or maybe you would like to wait? We want to remind you once again that cryptocurrency is a volatile asset that can lead to financial losses.
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LATOKEN crypto exchange does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Like other assets, cryptocurrency is subject to market risk. Please do your own research and trade with caution.