Cryptographic operations arise, and many have benefited from a new way of looking at the financial market from a decentralized perspective.
Bitcoin has become the perfect alternative for many people who want to generate income from trading sites without the need to invest significant capital.
Although these assets are safe in terms of their transactions, financial support, whether traditional or digital, is not exempt from the risks that their operations may incur.
Volatility is one of the main characteristics of Bitcoin. The face of such drastic external factors has made the possibility of investing more complex since the benefits have been diminished, and the fall has left significant losses.
Caution against possible fraud
Given the fall not only of Bitcoin but of projects like Terra, many users have begun to shield themselves against future embezzlement or even be alert to possible fraud that could make the situation more complex.
It is important to note that, unfortunately, many people’s intentions are usually evil. But unfortunately, that is where many fall due to the need and desire to invest in these digital financial instruments.
By 2021, unfortunately, many scammers made theirs by touching amounts close to 15 billion dollars in digital currencies. As a result, the risks exist, so the investigation and evaluation of the investment tools must be timely and efficient.
Some suggestions to detect possible scams in the cryptocurrency market could be the following:
The offer of millionaire profits without high risks, something that anyone without knowledge of the financial market knows, is unheard of; every investment will always represent a risk percentage.
The lack of an established cryptographic project, let us remember that cryptocurrencies are based on their White Paper; that is where all the characteristics of the project and the protocols that constitute it rest; if this does not exist, run away. On the other hand, we find the excess of advertising or marketing since, through advertising campaigns with participants who move followers, some of these will be captured to invest.
Other aspects could be offers of money at no cost; nothing is free in life, so cryptocurrencies are not something that is far from this reality.
One last suggestion is to be able to meet the people who make up the team or the company that offers investment services; if you don’t know who is behind digital currencies, it is best not to be part of this type of proposal.
The main factor of panic is liquidity
We have seen how companies dedicated to the cryptocurrency sector have been quite convulsed. It is why they have seen the need to close investments and even limit cryptographic operations since they put their liquidity at risk.
At this point, where the consequent fall of Bitcoin does not lead to an increase in value, it generates excellent commotion among large companies such as Coinbase, which has laid off more than 18% of its payroll.
This action was taken due to the intense pressure generated by the digital market and its resounding fall; their greatest fear is going bankrupt if these digital currencies continue with this trend.
On the other hand, Celsius Network temporarily suspends withdrawals and cryptographic operations, freezing the balances that, according to its directors, are in favor of its users, seeking liquidity stability.
In this case, all the benefits will be awarded to the users at the time, only that the company in search of its interests usually takes measures that will benefit the community in the future, and that is when liquidity is a fundamental part of the investment process.
The fall of Bitcoin in front of its users
According to financial experts, one of the main affected is El Salvador, a country that put a large part of its finances in the hope that Bitcoin would be the perfect investment; today, it is pretty affected by a valuation that could be the lowest in its history.
Just as this Central American country is, there are also many private users who, faced with the constant declines, withdrew their money in the hope that it would not be further devalued and to be able to invest in other types of less risky assets.
Conclusion
The cryptocurrencies may be going through this critical stage. Still, it is relevant to indicate that the bearish phase stages have been overcome, and the subsequent valuations of Bitcoin and the other cryptocurrencies are usually relatively high.
The market analysis and the medium and long-term perspectives are pretty interesting.
