?? What’s Happening in the Crypto Market? ??

The crypto market has been a wild ride lately, experiencing ups and downs that have left many investors on edge. After the fallout with FTX in 2022, trust in cryptocurrencies took a hit, leading to a downward trend in the market. However, 2023 has brought a fresh start for major digital currencies like Bitcoin and Ethereum, and the market is gradually turning green thanks to a relaxed macroeconomic situation and cooling inflation.

Unfortunately, the recent developments between Binance and the SEC have once again shaken the crypto market, resulting in a bloodbath across cryptocurrencies. The current volume in the digital market has dropped to $1.09 trillion at the time of writing. Even Bitcoin and Ethereum, the world's two largest currencies, which were topping the charts until recently, have now turned red. Bitcoin has fallen 5% and is trading at $25,700 levels, while Ethereum has plunged nearly 4% and is trading around $1,800.

The SEC has alleged that Binance misused and commingled customer funds, diverting them at their discretion. They also accused Binance of evading U.S. securities laws in an attempt to keep big U.S. investors using their platform. This legal battle has created further uncertainty in the market.

Crypto experts believe that the current situation is challenging, and the road to recovery will be long, as many currencies still lag significantly behind their all-time highs. For example, Bitcoin is still down 50% from its all-time high of $69,000 reached in November 2021, and Ethereum, now trading around $1,900, touched an all-time high of $4,000 in 2021.

It's important to note that the crypto market has responded positively to the collapse of SVB and hopes for a pause in the interest rate hiking cycle in the U.S. However, since crypto cannot sail alone, other financial assets must also follow a similar sentiment for a balanced atmosphere.

?? Reasons Behind the Crypto Collapse in 2022

The cryptocurrency market experienced a tumultuous time in 2022, and the primary reason for the market downturn was the downfall of FTX, one of the largest global cryptocurrency exchanges. FTX's bankruptcy and its fallout with Binance triggered a massive sell-off in the market and reduced liquidity.

Binance, the world's largest global cryptocurrency platform, had plans to acquire rival FTX but abruptly walked away from the deal, citing financial issues and regulatory investigations. This decision stunned crypto investors and led to Bitcoin's price plummeting to its lowest level in two years, touching $69,000 in November 2021.

These unexpected events created turmoil in the crypto industry, fostering distrust and skepticism among investors toward centralized crypto establishments and regulations. The contagion effect of the FTX fallout raised concerns about the survival of other trading and lending firms like Gemini and Coinbase. Experts believe that their survival depends on their regulation, governance, and management practices. Additionally, rising interest rates and the recent hawkish tone of the U.S. Federal Reserve's tighter monetary policy have further fueled the fire.

?? Is It Safe to Invest in Cryptocurrency Right Now?

The cryptocurrency market has weathered worse storms, from the Terra-Luna crash to the effects of the Russia-Ukraine war and tightened tax regulations. Despite the rough patches, 2023 has brought positive signs of recovery to the crypto market.

Crypto experts suggest that in such scenarios, seasoned investors can consider investing in stable and established digital coins like Bitcoin or Ethereum using a systematic investment planning (SIP) approach. It's advisable to allocate only 5% of your overall portfolio to cryptocurrencies.

However, it's crucial to remember that crypto prices are highly volatile and speculative. Therefore, it's recommended to invest only a small amount that you can afford to lose.

?? Step-by-Step Guide on How to Invest in the Cryptocurrency Market

1?? Select a Cryptocurrency: Choose the crypto coin you want to invest in. Each cryptocurrency has its own fundamentals, backed by different blockchain networks, mining techniques, and intrinsic value. Due to the extreme volatility of cryptocurrencies, thorough research is crucial before deciding on the amount to invest.

2?? Select a Cryptocurrency Exchange: To purchase cryptocurrencies, you need an account on a cryptocurrency exchange, an online trading platform. Register on a cryptocurrency exchange of your choice, providing the required personal information and completing the KYC formalities. Once registered, you'll receive a deposit address, enabling you to invest.

3?? Choose Your Payment Mode: Select a viable online payment mode, such as credit/debit cards, instant bank transfers, peer-to-peer options (P2P), or a crypto wallet. Add funds to your chosen payment gateway to purchase the cryptocurrency.

4?? Purchase Cryptocurrency: After adding funds, you can easily buy your chosen cryptocurrency. Log into the crypto platform with the added funds, select your preferred cryptocurrency from the available options, and click the "buy" tab. Follow the prompts to complete the purchase.

5?? Store Your Crypto Securely: After receiving the crypto coins in exchange for fiat currency, ensure their secure storage. Cryptocurrencies are not backed by any regulated entity, so it's essential to protect them from theft or hacking. While most exchanges offer online wallet options, some investors prefer cold storage for added security.

6?? "Sell" on Time: Finally, selling your cryptocurrency at the right time allows you to realize profits. Similar to the "buy" process, navigate to your portfolio and click the "sell" tab. You can choose to sell your investment fully or partially based on your own decision. Timely booking of profits is vital.

Remember, investing in cryptocurrencies requires caution and a well-informed approach. Stay updated with market trends, regulatory developments, and technological advancements to make informed investment decisions.