Cryptocurrency Investing: Is it a way to become a millionaire overnight or a game to lose money?

For some time now, Bitcoin, the world's most popular cryptocurrency, has been on a downward trend. As a result of this decline, Bitcoin's returns have fallen below those of traditional assets such as gold and stocks. All cryptocurrencies, including Bitcoin, experienced a precipitous price drop last month and have yet to fully recover.

Cryptocurrency Investing: Is it a way to become a millionaire overnight or a game to lose money?

The term "cryptocurrency" refers to a type of digital asset. Cryptocurrency is used for shopping and other services in a number of countries. Cryptocurrency cannot be printed in the form of paper money or coins. There is no cryptocurrency bank or ATM. Cryptocurrency can be used exclusively for online purchases.

Elon Musk disillusioned

Until recently, Akash Anand, a resident of East Delhi's Mayur Vihar, regarded Tesla CEO Elon Musk as a visionary. Akash believed that Elon Musk was a technologically savvy entrepreneur who could lead the world into a more secure future. They no longer feel that way. Elon Musk recently refused to accept bitcoin as payment for a Tesla car, citing environmental concerns. Since then, Bitcoin has experienced a precipitous decline. In mid-May, there was widespread weakness across all cryptocurrencies.

May is a dark month for Bitcoin.

May has been nothing short of a nightmare for cryptocurrency investors. Between May 13 and May 20, the value of investors' crypto holdings fell by 60%. Many investors' 55,000 investment remained only 20000. Many investors sold their bitcoins as a result of the sudden turmoil. Investors believe Tesla CEO Elon Musk acted irresponsibly and used the sentiments of millions of investors to his advantage. As a result of Elon Musk's statement, investor wealth has decreased.

Cryptocurrency Market Capitalization

Cryptocurrency market capitalization has surpassed $1,635 billion. Bitcoin's market capitalization has surpassed $674 billion. This is more than three times the market capitalization of the country's most valuable company, Reliance Industries Limited. Ethereum, the world's second most valuable cryptocurrency by market capitalization, was up 1.3 percent to $2,103. It had a market capitalization of $244 billion.

India's stock-crypto statistics

If we consider cryptocurrency trading in India, its daily volume is close to 1500 crores. The stock exchange in India has a daily trading volume of close to two lakh crore rupees, of which less than 1% is crypto trading. In India, there are between 10 and 12 million active investors in cryptocurrencies. In India, there are close to 60 million active investors.

In cryptocurrency trading, time is not fixed.

The cryptocurrency market is constantly trading. Additionally, this market is open on Saturdays and holidays. In general, India's stock and bond markets are open daily between 9:00 a.m. and 3:30 p.m. and are closed on weekends and holidays. Bitcoin's price has fallen by 50% in response to Elon Musk's tweet. Tesla CEO Elon Musk previously stated that Tesla would not accept bitcoin payments. Additionally, MUsk stated that it is impossible to compensate for the environmental damage caused by crypto mining.

Panic selling exacerbated the problem.

With Tesla's U-turn on cryptocurrency, China's government has begun cracking down on institutions that deal in cryptocurrency. Both of these factors contributed to the start of panic selling in crypto currency. At this point, many investors began booking profits from crypto, further deteriorating the crypto market's situation. As a result, cryptocurrency investors suffered massive losses.

An eye that shines with great rewards

Cryptocurrency prices have risen significantly over the last year. As a result, investor expectations have increased significantly. Investors who invested in cryptocurrency a year ago have seen their money grow up to tenfold. Even with Bitcoin's weakness in May, returns have been around 400 percent compared to a year ago. Dogecoin is currently trading at 140x its June 2020 price. Matic's network has grown by over 7000 percent.

Investing entails numerous risks.

If you are considering investing in crypto currency as well, there are numerous risks involved. Cryptocurrency prices can fluctuate dramatically. In India, the regulator has not approved cryptocurrency. Additionally, due to the dangers associated with cyber security and the uncertainty surrounding the use of crypto currency, it is not gaining investor acceptance. India's Reserve Bank The RBI has prohibited cryptocurrency and has directed banks and fintech firms to cease providing services to entities that deal in virtual currency