What Cryptocurrency Crashed And Why?

February 25, 2023

Introduction

Cryptocurrency has been a hot topic in the financial world for the past few years. With its meteoric rise in value, it has become a popular investment option for many people. However, with the recent market crash, many investors have been left wondering what cryptocurrency crashed and why?

In this blog post, I will discuss what cryptocurrency crashed and why it happened. I will also provide some tips on how to protect yourself from future crashes.

What Cryptocurrency Crashed?

The most notable cryptocurrency crash was that of Bitcoin in 2018. Bitcoin had been on a steady rise since its inception in 2009, reaching an all-time high of nearly $20,000 per coin in December 2017. However, by February 2018, the price had dropped to around $6,000 per coin. This crash was largely attributed to speculation and market manipulation by large investors who were looking to cash out their profits before the market crashed.

Other cryptocurrencies such as Ethereum and Ripple also experienced significant losses during this period. Ethereum dropped from around $1,400 per coin to just over $400 per coin while Ripple fell from around $3 per coin to just under $0.50 per coin.

Why Did Cryptocurrency Crash?

There are several factors that contributed to the crash of cryptocurrency prices in 2018. The first is speculation and market manipulation by large investors who were looking to cash out their profits before the market crashed. This caused a sudden influx of sell orders which drove down prices significantly.

Another factor was regulatory uncertainty surrounding cryptocurrencies at the time which caused investors to become wary of investing in them due to fears of government intervention or bans on trading them altogether. Finally, there was also a lack of liquidity in the markets which made it difficult for buyers and sellers to find each other and complete transactions quickly enough to prevent prices from dropping further.

How Can You Protect Yourself From Future Crashes?

The best way to protect yourself from future crashes is by diversifying your investments across different asset classes such as stocks, bonds, real estate, commodities etc., as well as different cryptocurrencies if you choose to invest in them at all. This will help spread out your risk so that if one asset class or cryptocurrency crashes you won’t be affected too badly overall as you’ll still have other investments that are doing well or at least not crashing like the one that did crash did.

It’s also important to do your own research before investing in any asset class or cryptocurrency so that you understand what you’re getting into and can make informed decisions about where you put your money instead of blindly following trends or advice from others without understanding what could happen if things don’t go according to plan. Finally, it’s important not to invest more than you can afford to lose so that if something does go wrong you won’t be left with huge losses that could take years or even decades for you recover from financially speaking.

Conclusion

Cryptocurrency has been a hot topic for many years now but with its recent crash many people have been left wondering what happened and why it happened? In this blog post I discussed what cryptocurrency crashed and why it happened as well as providing some tips on how you can protect yourself from future crashes should they occur again in the future. By diversifying your investments across different asset classes and doing your own research before investing you can help ensure that any losses incurred due to a crash are minimized as much as possible while still allowing yourself the opportunity for potential gains should things go according to plan instead of crashing like they did back in 2018