No doubt the crypto market has suffered some huge set backs that sent investors packing and selling off their cryptocurrencies. However, that hasn’t stop the existence of cryptocurrencies nor sent it out permanently. Hence, should we expect another huge crypto market sell off in 2022?
Recently, cryptocurrencies have been experiencing unstable trend in price since “May 2021” which went all through June, July, August and September 2021.
With the the current rise and fall in cryptocurrencies like Bitcoin, Ethereum, Binance coin and many others, what range do you think the Bitcoin price will be in 2022?
Will Bitcoin beat its all time high of $64863 or will their be another downward trend in price.
Though, top crypto currencies like Bitcoin, Ethereum, Binance coin, Ada, XRP, Litecoin and Dogecoin are still pushing to regain their price benchmark of April 2021 market price.
In-spite of all this, what are the major reasons behind huge crypto market sell off that takes over the crypto market from time to time.
What Causes Huge Crypto Market Sell Off?
There might be many reasons behind crypto market sell off that takes it place from time to time, so many off them, but let us look at the main ones.
1. Whales Are Taking Profit:
Whale are huge cryptocurrency investors that have invested a huge amount of money in a crypto project.
There presence in the crypto market is always felt because of the amount of money they bring in.
Whale might come in with millions and billions of dollars depending on how potential the crypto project might be.
Therefore, when they sell off, expect a huge market sell off.
2. Fears Of Losing Profits:
The common fear of losing profits accumulated from holding a cryptocurrency for a period of time can prompt a massive sell off from holders.
Hence, when over 50% holders of a coin sell off, there are chances that others will follow suit.
This will also make such coin dump and lose value, thereby causing a huge market sell off.
3. Crypto Scams Contribute To Major Crypto Market Sell Off:
Seasons when crypto scams become predominant, traders become extremely fearful to trade cryptocurrencies.
The fear of losing their coins will make them sell off and causing a rapid dump in market price.
Let us hope for less crypto scam, else there might be another crypto market sell off in 2022.
4. Crypto Project Developers Are Backing Out:
The worst thing that can happen to any crypto currency is if the developers back out.
A mere rumor of developers abandoning a project can cause a major market sell off.
Also, when developers are not too active on a project, traders might sell off.
This sell off results from lack of trust and poor relationship between traders and developers.
Also Read: 14 Truth About Cryptocurrency Trading And Blockchain Technology.
5. Warning Messages From Crypto Influencers Also Lead To Major Crypto Market Sell Off:
Tweet and messages from top wealthy and influential men can send traders and newbies selling off.
People with huge social media following can also send the market down when they post a negative impression about cryptocurrencies.
This is because people believe and trust those who engages with them frequently.
Traders might think they got an information that a coin will not do well, hence sending warning messages to inform others.
Well, sometimes these messages are useful to dictate market trends.
6. The Market Suffers Sell Off When Government Policies Are Against Traders:
Government policies can turn crypto tumbling within a few hours.
When government regulation becomes an headache for traders, they will sell off their cryptocurrencies.
Regulations such as income tax payment policies on profits that doesn’t play along with traders will possibly push for a sell off.
Traders and holders will sell off their crypto holdings instead of losing their profits to federal purse.
For instance, in recent times, China has been setting up policies to regulate cryptocurrency trading.
These policies influence the operations of mining sites and daily trading of cryptocurrencies.
If unfavorable, it also prompt massive crypto market sell off in general.
ALSO READ: 6 Most Painful Ways People Lose Money Without Knowing.
7. Investors Are Dumping Mining Equipment:
Where are the cryptocurrencies mined? What if the miners back off.
This is a signal that all is not well, hence promoting a push against crypto.
If mining equipment’s are abandoned, what becomes the value of the products?
For instance, in recent times, Bitcoin and other leading crypto coins experienced a significant drop in market price after investors began dumping mining equipment’s in China.
Therefore, dumping of mining equipment’s also contributes to major crypto market sell offs.
How To Make Money From Crypto Currency Despite Crypto Market Sell Off:
1. Live Or Day Trading:
Day trading is one of the best ways to make money from cryptocurrency.
This involves trading one pair of crypto to another with the sole aim of taking profits from market movements.
For instance, trading BTC/USDT and many more pairs.
2. Crypto Holding:
Not everyone has the required skill to trade cryptocurrencies.
Hence, instead of trading crypto and losing all their money, to avoid losing money, they just hold cryptocurrencies.
Some traders hold cryptocurrencies to sell off when price goes up.
It might be 6 months, 1 year, 2, 3 or even 4 years depending on the holders decision on time to sell.
3. Crypto Staking:
You can make money from cryptocurrency by staking your cryptocurrency to get profits in return.
There are many platforms that supports crypto staking.
For instance, you can take advantage of the staking opportunities in Binance if you’ve a verified account with the exchange.
Note that this is not a direct means of endorsing them, however it’s a way of letting you know how to make money from crypto currency.
4. Taking Crypto Courses:
This involves giving out crypto trainings to newbies.
As a crypto trader with years of experience in crypto trading, crypto courses can be a good way to make money through cryptocurrencies.
Many newbies are ready to pay for knowledge so far you’re giving out good information.
5. Crypto Mining:
Mining crypto might be expensive because of the equipment and power capacity involved.
However, it one of the basic ways to make money with cryptocurrency.
Well, if you’re up to the task, mining crypto currencies are the best ways to get them if you can’t afford to buy.
Hence, you can now sell to make your money.
6. Airdrops And Forks:
Airdrops are cryptocurrencies distributed to traders when an a new project is launched.
It is a strategy applied to create awareness and get the attention of the public.
If you participate with these airdrops, you’re sure to get some free dollars in crypto.
It could be up to $100 or more depending on the developers of the project.
7. Work For Crypto Companies:
You can decide to work for cryptocurrency companies. Most of them pay their workers in crypto, others pay by cash.
You can apply to work with top cryptocurrency companies like Binance, Coinbase, KuCoin, FTX, Gate.io or Huobi Global.
However, the list doesn’t end here, find out the one you can work with and get in.
Making money in crypto should be your goal.
Therefore, go get it.
8. Write Crypto Based Contents On Social Media:
Are you skillful in copy writing? Can you take content marketing to another level?
If you can, then you can help businesses who deal on crypto to write their crypto contents and make money in return.
You just need to know what your clients need and their target market.
Hence, you’re good to go.
Is Crypto The New Generation Money Crypto Market Sell Off In 2022?
Well, let’s not be controversial about Bitcoin or cryptocurrency as a whole.
Well, can we now say crypto will replace fiat money?
According to Robert Kiyosaki, he calls the US dollar fake money because they print money at will everyday when it is needed.
Fiat money is centralized and can be controlled by the government.
On the other hand, cryptocurrencies are completely decentralized and free from governmental controls.
Will Bitcoin Hit $100,000 Per Coin Or Should We Expect Another Crypto Market Sell Off In 2022, What is Your Take?
What is the fate of cryptocurrency in the next 5 years.
With Bitcoin taking the lead as the first and most popular cryptocurrency in the world, what should we expect?
Let’s be realistic, will bitcoin hit $100,000 on or before 2025 or should we expect another crypto market sell off in 2022.
What do you think?