Crypto Doom: Investors Use Drops to Their Advantage and Demand Government Clarification #cryptoupdate

 Some bold investors are buying cryptocurrencies on dips in the market, which has been under intense selling pressure in recent weeks, in the hopes of making long-term gains. 

The main two virtual currencies, Bitcoin (BTC) and Ethereum (ETH), recovered some of their losses after taking a beating over the weekend and were now trading at over $20,000 and $1,000, respectively. 

BTC rebounded about 9% and was trading at $20,010 on Monday after hitting a low of $17,772 on Sunday. On Sunday, ETH plunged to $898 after rising by more than 12 percent to trade at $1,077.

Currently, there are 902.1 billion dollars worth of cryptocurrencies on the market, a far cry from the all-time high of $3.1 trillion in November 2021. 

With a record-breaking year for cryptocurrency trading in which Indian crypto exchanges signed up millions of purchasers by the end of 2021, there has been a decline in volumes from the first week of April following the implementation of a 30 percent tax on digital assets by the government. 

Cryptocurrencies are now taxed at the highest rate, on par with profits from speculative activities like gambling and lotteries.

However, Mumbai-based investor Aliasgar Merchant thinks the cryptocurrency bear market is just a temporary state that will soon end. However, he has only made investments in ventures he believes are wholly worthwhile and will endure the bear period. 

"I have completely abstained from purchasing low-potential tokens that are useless. A significant fraud is quick money. Having said that, there are a few issues that also worry me. According to him, even projects with a nice appearance might not make it through the bad market given Terra's recent collapse.

Anticipating Setbacks:

With a market capitalization of about $20 billion in early May, TerraUSD was the third most widely used stablecoin. Investors in the coin and the linked cryptocurrency LUNA have seen billions of dollars in wealth disappear as a result of the blockchain, or digital ledger, ceasing to function. 

Merchant continued by saying he would stick onto his current holdings while also seizing the chance to acquire new cryptocurrencies at a bargain. 

But he adds, "I'm ready (for the fact that) my cryptocurrency portfolio will look red for the next two years."

The recent drop in values of the majority of crypto tokens is unsettling, according to Noel Saldanha, an after-sales expert at a top original equipment manufacturer, but he is finding solace in historical statistics showing how successfully cryptos have recovered in the past. 

"This time, the downturn appears to be caused by something more basic. Only time will tell how the cryptocurrency community responds to the collapse of once-respected crypto assets like Terra and whether prices have bottomed out. On the personal front, holding all cryptocurrencies while being careful about additional financial injection appears to be the only choice, according to Saldanha.

Holding Assets:

The 2021 bull market, according to Insiyah Kojawala, a network quality analyst at an advertising agency, saw many of her friends and coworkers become interested in cryptocurrencies. Like other novice investors, she too sought advice from friends and online experts on which cryptocurrencies to invest in. 

"It is really difficult for me to see the recent market drop. especially when the value of practically my whole portfolio has decreased by 80%. I'm certainly quite concerned about the bear market, but I'm sticking to the plan of keeping onto my assets as long as the bad market continues," she says.

I am able to accomplish this in part because I have only allocated 30% of my investing portfolio to cryptocurrencies. I don't have any urgent, short-term needs that require me to liquidate any of my assets. My financial stability would suffer greatly if the trend persisted and the cryptocurrency ventures in which I had invested ceased to exist, Kojawala added. 

While tokens like BTC, ETH, Solana (SOL), Ripple (XRP), and ATOM were at attractive valuations for investments with a five-year horizon, according to advocate and tax consultant Kutbuddin Dahiwala, new investors need clarity from the government on regulations and a reduction in the taxes currently levied in order to generate quality returns.

"The government needs to be more transparent, at least with regard to long-term investments. If the government is not supportive in terms of taxation, it is unworkable to invest in cryptocurrencies from India, no matter how great an opportunity this may be in the long run. 

"New investors look to the government for incentives to invest in carefully analysed assets. Even though I know there is good money to be gained because my research is in place, I am delaying investing for the time being simply because paying 30% taxes on our assets is not affordable, Dahiwala continued.

Really Risky :

 Cryptocurrencies' more than halving in value from their all-time highs, according to consumer goods retailer Adil Mapari, only supports his position that investing in digital assets is "extremely hazardous" and should only be done with money you're willing to lose. 

"My portfolio is down about 99% even though I have 10% of my savings stashed in cryptocurrencies. Even while it would not have a significant impact on my financial situation, I would have been lot more at ease if I had done my homework carefully. Numerous specialists that offer advice on cryptocurrency investing may be found online. Following the advise of the web gurus, I too made an investment," stated Mapari.

He continues by saying that the decline has been eye-opening and that an investor must conduct his own study without relying on outside influences. 

This time, I've taken full advantage of the dips, and I'm convinced that because I've done my study, I won't have to worry about losing money for at least the next two years, says Mapari.