The Crypto industry has experienced a rollercoaster ride in 2022. This year has seen a significant drop in the price of Bitcoin, one of the most popular Cryptos; the Terra Luna crash occurred, as well as the Indian government introduced new Crypto-tax regulations for investors and traders. With all of these setbacks, the industry was coping in some ways, but the FTX crash exacerbated the situation, and everyone’s faith in Crypto has been shaken.
Let’s look at what important lessons Indian Cryptocurrency Coin investors can take away from the FTX debacle in this blog.
Should Indian Investors Be Concerned About the Crash?
The demise of one of the largest Crypto organizations has undoubtedly served as a wake-up call for everyone, including small-to-large investors, traders, and potential investors.
Industry observers have noticed that India Cryptocurrency Exchange investors have taken a step back and are waiting to see what happens. The investors believe that avoiding additional positions is the best option.
Some industry leaders have stated that the industry is already in a bear market, and such drops can create a highly worrying situation for investors. Given the volatility of the cryptocurrency market, small-scale investors may take a step back and become inactive for a while; on the other hand, long-term/seasoned investors may view this as an opportunity to capitalize on digital assets at discounted prices and hedge their investments later.
Let’s take a quick look at the lessons that Indian Crypto investors can learn from the current state of the Crypto market.
Important lessons to learn for Crypto Indian Exchange investors
1. Consider the Risks of Holding Crypto on Any platform Before Investing
The FTX demise has raised concerns among investors about the platform. They will now be more cautious in selecting a Crypto exchange platform to store their assets. People are now leaning toward storing their Crypto assets in cold storage, which also means taking them offline, making them less vulnerable to hacks. On the other hand, taking the Cryptos off the platform will reduce their liquidity and make it difficult to trade them quickly.
2. A Diverse Portfolio is Always the Best Bet
If you are interested in investing, whether, in stocks, Cryptos, or other assets, experts always advise against holding a single asset in large amounts. Instead, diversifying your portfolio is the safest option. Assume you made a large investment in FTX Crypto, and whatever happened to the company taught you a valuable lesson about the importance of diversifying your portfolio.
3. Investors Can Expect Stricter Regulations Based on the Current Situation
The current turmoil in the Crypto Trading Platform India has only exacerbated the need for strict regulations on digital assets. The Indian government and other governments around the world have been planning to regulate the cryptocurrency industry for some time, and the FTX collapse has accelerated the process. As a result, everyone agrees that there is a critical need to protect investors and newcomers planning to enter the space.
4. You Must Keep a Backup of all Crypto Transaction Records
Whether you’re a novice or an experienced investor, keep a backup of all your Crypto transaction records in chronological order. When it comes time to pay crypto taxes, as governments plan to impose strict rules on the industry, gathering reporting documents will be one of the most difficult parts; however, with a backup, you’ll be at ease.
Having a backup will also allow you to assess your overall profits and losses for the year and make more informed investment decisions.
Nobody could have predicted the recent incident in the Crypto Currency Trading Platform space. Of course, many investors and traders may have lost faith in cryptocurrency, but with such incidents come a wealth of experiences. And we are confident that the lessons discussed above will assist you in becoming a smart investor who makes better investment decisions.
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