Many of the biggest names in crypto have slumped in the last few weeks. In the last six weeks, the price of Bitcoin (CRYPTO:BTC) has fallen by almost 50 percent, Ethereum (CRYPTO:ETH) has fallen by around 53 percent, and Dogecoin (CRYPTO:DOGE) has fallen by nearly 60 percent.

Downturns in the stock market are usually a source of anxiety for investors. Cryptocurrencies, on the other hand, are notoriously volatile.

Should you be concerned about the current crypto market collapse if you’ve invested (or are contemplating investing) in it? The following information is important for you to understand.

Why is the crypto market collapsing right now?

It doesn’t take much to cause a fall in the value of cryptocurrencies, which have always been a volatile asset class. Elon Musk’s statement in May that Tesla will no longer accept Bitcoin as a method of payment had a role in the situation.

As a consequence of China clamping down on cryptocurrency mining, crypto values fell even further. The IRS subsequently announced that it was becoming stricter about collecting taxes on cryptocurrencies, which may have further helped to the crypto collapse.

Just because they’re highly speculation and many investors are still on the fence about them, cryptocurrency prices are also unpredictable. Nobody knows if bitcoin will still exist in a few decades, and when values start to decline, anxious investors are more inclined to panic-sell — leading prices to plummet even more.

Do you need to be alarmed at this moment in time?

Cryptocurrency crashes are nothing new, despite the fact that this latest one may be frightening. When Bitcoin has dropped more than 80% of its value, it has always recovered. Although Ethereum’s value dropped by almost 95 percent last year, it was still able to rebound.

The largest names in the crypto industry — notably, Bitcoin and Ethereum — have been able to survive volatility, despite the fact that previous success is no guarantee of future results. Again, this doesn’t guarantee that they’ll always recover, but both of these cryptocurrencies have been through worse and were still able to survive.

When it comes to creating money, the goal is to invest for the long haul. Perhaps if cryptocurrency succeeds, it may take years, or even decades, for it to become widespread.

To invest in Bitcoin, you need to have faith in its long-term prospects. If you believe it has a bright future, you should be prepared to hang on to your assets for as long as possible, regardless of any volatility they may suffer in the near term.

There will be many more collapses in the future for cryptocurrency. The current performance of a company doesn’t matter as long as you keep an eye on its future potential.

Learn how to keep your money safe.

If you do decide to invest in cryptocurrencies, make sure you do it responsibly. It’s possible to lose all of your money if you invest in cryptocurrency right now since it’s so speculative and dangerous.

Only invest money you can afford to lose because of this. Aside from that, think about the amount of money you’re okay with losing. So even if you have the financial means, you may want to cut down your investments if, for example, you’re worried about losing thousands of dollars. If you’re worried about losing money, you should definitely stay away from cryptocurrencies.

Not everyone should invest in cryptocurrency, and those with a greater tolerance for risk should do so. When it comes to investing in bitcoin, volatility is a given. Nevertheless, if you believe in its potential and are prepared to hang on to your investments for years or even decades, it may pay off in the long term.

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