The month started with all the cryptocurrencies showing signs of resistance to the bear’s control over the market. However, this was shattered yesterday as the coins failed to resist the bear’s attack, with most of them breaking through their support level and entering a free fall. Additionally, a majority of the coins in the top ten were seen bleeding in double digits including Bitcoin [BTC], Ethereum [ETH], and XRP.
Ethereum [ETH], the third-largest cryptocurrency by market cap, continues to be one of the most affected coins in the market. The coin, which is being crushed by the bear, has settled below the $100 mark.
According to CoinMarketCap, at press time, Ethereum was trading at $86.90 with a market cap of $8.88 billion. The coin records a trading volume of $2.28 billion and has witnessed a significant downfall of more than 14% in the past 24 hours.
The majority of the trade volume for the coin is pouring in from OEX with ETH/BTC. The second highest is recorded on RightBTC with Bitcoin pairing and the third place is occupied by LBank. The other exchanges on the top 5 list include OKEx and Bitfinex.
Along with this massive fall, the cryptocurrency witnessed a flash crash to almost $12 dollars on Coinbase Pro with USDC pairing. Nonetheless, the coin quickly jumped back to its old position.
Moreover, this is not the first time Ethereum’s price crashed on Coinbase. Earlier this year, the coin briefly crashed to $0.1 from trading above $300 on Coinbase GDAX. This resulted in the exchange refunding the customers who incurred a loss due to this and also allowed those customers, who made a profit because of the crash, to keep their funds.
The exchange was quick to act on the flash crash this time as well. They stated on Twitter:
“We’re aware of price movement on one of our order books that happened over the course of regular trading activity. Over the past 24 hours, all Coinbase platforms have operated as planned and no system-wide incidents have been identified.”
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Bitcoin: Would you rather HODL Bitcoin or trade? ex-CTO of Coinbase opines on investing in cryptos
With the inception of Bitcoin and the advent of altcoins, there has never been a good chance to make quick money by simply investing. The last time such an opportunity was seen during the DotCom bubble. However, scams are also a part of this opportunity which became more than evident during the ICO frenzy of 2017.
Millions, if not billions were lost to the ICO scams, which caused the regulatory bodies like SEC, CFTC, and others to step in to protect investors. As the space matured over time, so did the actual number of projects in the ecosystem; there are more than 3000 cryptocurrencies with different and implied use-cases, which is confusing to most of people in the crypto industry and to the people outside of this space as well.
The ex-CTO of Coinbase, Balaji Srinivasan tweeted in support of the above; how an investor who is not familiar with the crypto space should go about investing. Srinivasan said that there were a few people who can be profitable and can beat the market, however, he added that “buying BTC in crypto” was like “buying vanguard in traditional equities”.
Investing in traditional assets or Bitcoin, for people who are inexperienced should be a longterm investment, hence the best thing to do with Bitcoin is to stack and/or HODL.
The DotCom bubble pushed the innovation to its maximum which led to the birth of massive companies like Google, Amazon, Uber, etc. The same can be said for Bitcoin, which led to the development of Ethereum [ETH], which is the second largest cryptocurrency in terms of market cap. However, Ethereum brought smart contracts to the world, which has further led to the development of dApps and other use-cases.
1) ETH is/was also both a phenomenal investment and a major technological breakthrough.
2) Some other digital assets are very promising; I don’t believe innovation ends with BTC and ETH.
But for the person outside the space who wants exposure, just buy BTC.
— Balaji S. Srinivasan (@balajis) June 22, 2019
The bottom line with the Srinivasn’s tweet thread for the people who are inexperienced with crypto space was to just buy Bitcoins and hold it rather than trading it.
A Twitter user @mskvsk, reflected Srinivasn’s tweet as he replied:
“Buying BTC, dollar-cost averaging, forgetting about it for several years. This is the soundest strategy for most people. #stackingsats”
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