Young Indians hard hit by the crypto crash but no plans to stop investments
Young Indians are saying that they do not have any courage to check out their crypto investments after the crypto cash. Some are about to face all carnage that ravaged crypto investments in the last few weeks. No one is alone.
Such bloodshed wiped out almost $400 billion worth of wealth of investors in crypto worldwide in the last few weeks. It impacted several young investors from India. But has their approach towards investing in such a volatile digital asset class changed? The answer is no.
Even after this, they are not having any plans of stopping the investment. Anyone can invest for long term and earn even in this voliatle market check out bitcoin-motion an official trading platform.
There are few green shoots. Thus the crypto market is returning to its life steadily.
The crypto market cap globally is now $1.29 trillion.
It is still below the mark of $1.42 trillion when zero started around 12th May 2022.
Bitcoin and Ethereum which are considered the crypto verse blue-chips had their values fall by 50% this month.
At the start of May, Bitcoin traded at almost $40713.89.
Within only 2 weeks, it significantly dropped below the mark of $26000.
It became slightly steady and is trading now at $29916.26.
The scenario in the case of Ethereum is not different.
It too crashed after reaching a $3026.42 monthly high.
It dropped to $1748 and is at $2016.68 now.
Ethereum is on a recovery path gradually.
The present data shows that last year nearly 21 million investors started investing in crypto.
What's more, notwithstanding, India this year forced a rigid and weighty 30% tax on virtual assets such as crypto.
Even after this, the excitement about crypto adoption has never totally faded among young Indian investors.
As per a report by Gemini, the crypto exchange, over 54% of Indians were first time crypto investors.
Some working professionals made up their minds to keep aside one part of their salary for crypto investing.
Many were a bit skeptical.
Few investors were attracted by the high returns on the crypto investments.
Thus people who began their investment journey in this financial market were seen to keep aside more to invest in mutual funds.
Others were seen to invest an amount in different cryptos such as RS.1000 IN Bitcoin, Ethereum, and Solana each to check how it goes.
People have seen their investment portfolios rise and fall too.
When investing people think that few coins that they invest in some with solid fundamentals such as Cardano, Ethereum, and Solana. As they provide information about the real world and are seamless on their blockchain, availability will act as the link, thus thinking it will be a great investment.
The de-pegging of TerraUSD the stablecoin and its sister coin LUNA’s subsequent beating created a buzz in the middle of the debacle of the last week.
The stablecoin lost its peg of 1:1 against the US dollar in the last week.
It left investors very nervous.
It is an algorithmic stablecoin, so retesting or restoring the ecosystem’s balance needs to get done by more LUNA mining.
It increased the circulation so much that the value saw a fall of nearly 99.99%.
LUNA is now struggling for surviving at only $0.0002102.
One month ago, LUNA was priced at $97.28.
TerraUSD which is now trading at $0.05777 is way away to hit the needed $1 mark.
The major cryptocurrency exchanges showed some numbers that indicate that almost 2.1 Indians lost their money when LUNA fell.
Many invested hugely in LUNA.
Some lost heavy amounts such as Rs 180000 after LUNA’s fall.
People have lost everything after being removed from not only all Indian but also other crypto exchanges globally.
Still, people are ready to again invest in cryptocurrency, provided they receive a great opportunity.
Young Indian crypto investors feel that this sector includes huge potential for generating high returns which they wish to continue exploring.
Many young investors in India were already aware of or could predict the crypto crash. Some even warned friends and close ones to exit the market. The start of the invasion of Ukraine by Russia made it clear to few. A lot of investors did not make a complete exit from the crypto market.
Rather they created a systematic plan. With the help of a split portfolio where one can invest half and trade another half, some suffered less loss in their entire portfolio. Thus they are researching well and getting a complete idea before making a crypto investment.
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