NNF| U-Turn: The CryptoMarket was caught off-guard by the unexpected FTX Collapse!
That was unexpected!
The crypto market took a U-turn after the last two week’s strong uptrends.
This week on NNF (Navigate with Nord Finance),
Let’s dive into the crypto market action and take a look at what happened this week.
NNF of the week:
How to navigate this market?
The crypto market ended significantly lower after the FTX’s sudden move to withdrawal pause due to a liquidity crunch at the exchange.
The FTX approached multiple big exchanges at the beginning of the week and finalized the LOI from Binance. Later in the week, Binance denied the acquisition of FTX after their due diligence which further put some downward pressure on the Crypto Market. Remember, FTX is also used for leveraged trading by both retail and institutions. This may have furthered the downside. There are many technical and fundamental reasons we can point out but the damage has been done and now we need to learn from this event and plan our investment accordingly.
Last week on NNF, we cautioned to not get too excited after the market runup and keep investing only a small amount in the crypto. Currently, The crypto market is in a phase where it is still correcting and maturing.
So, Now What to do?
This week, Remind us to invest regularly in small amounts and not put entire capital in one token only. If you diversify, you can restrict your portfolio’s downside and stay calm when one token suddenly vanishes its significant value. However, When the entire market falls your portfolio also falls but the downside can be limited and it is easier to come out with decent returns in the long term.
Let the market stabilize a little bit after the surprising news of FTX. You can start investing a small amount again for long-term investing. If you’re investing a small amount with a long-term view then the recent correction is just another healthy correction that will bring more regulation and stability for the industry and safeguard crypto investors' funds.
We hope you’re safe in this market condition. The Crypto market is much more mature than it was 2 years ago. The future is still strong for the long term but in short term, you’ll likely see more volatility. Our new crypto investment product will help you ride this volatility with ease in the coming months.
So, Don’t forget to subscribe to our newsletter and become a part of our crypto investing product launch.
BTS Scoop of the week:
Our NNF (Navigate with Nord Finance) newsletter subscribers have received behind the scene updates on our upcoming Crypto Investment Platform. Very Soon, We’re introducing the platform that will change the way you invest in crypto.