Digital assets are subject to high volatility, meaning prices can change countless times a day and make big leaps or drops in the long term. The essence of crypto trading is to buy and selling cryptocurrency during the market fluctuations, finding the opportunity to make a profit on the price difference.
With the recent fall in cryptocurrencies and the general downtrend in the market, many people are changing their minds about investing. In fact, we have seen significant declines in most cryptocurrencies in spring 2022. For example, by the end of June 2022, the price of the top-ranked Bitcoin had reached $20,000, twice lower than it was trading in November 2021. Why is cryptocurrency crashing, and what assets is it worth buying now? Let’s discuss it today.
What Made the Market Drop?
Inflation at its highest level caused the downward trend in the cryptocurrency market that we are seeing now. There was a meeting of the FRS (Federal Reserve System) where it was decided to increase rates. Obviously, all markets, including cryptocurrency markets, reacted to this global decision. Investors started selling assets in large quantities, which inevitably led to a crush of cryptocurrency prices, as the same rules of supply and demand apply in the digital asset market.
Many people are exiting the market because they don’t want to get into risky assets. Still, the drop is the perfect opportunity for many people to take advantage of low cryptocurrency prices and invest in them. So what is the best cryptocurrency to buy in present market conditions?
Picking Crypto
When choosing which assets to buy, it is essential to do your research thoroughly:
- First of all, study the idea of the project and the problem it is going to solve.
- Who are the founders of the project? Keep in mind that the team should be open and have a good reputation.
- There should also be a community of people involved in the project who spread the news about the project and interact with the participants.
- Pay attention to the project’s investors. Large and well-known companies will not support an undeserving project.
- Check out the market capitalisation and trade volume of the asset.
The most promising assets to buy today are Bitcoin, Ethereum, Solana, Cardano, and XRP. To buy cryptocurrencies, go to the WhiteBIT exchange, and to learn more about different crypto assets, check out the White Blog.
