Cryptocurrency is a digital payment system that allows easy peer-to-peer transactions. The system allows users to send and receive payments from across the globe. The good factor here is the lack of involvement of banks to complete your transactions. The payments are made through digital tokens thereby limiting the involvement of currencies. Cryptocurrencies exist in the form of virtual money and exist only in the digital space. The transactions are always online and stored on the user network. For more information visit our website now.
Every user transaction is recorded in a ledger that is public and stored on various networks. This network is spread on user computers across the globe.
How crypto got its name?
Cryptos make use of an interesting encryption technique to complete user transactions. There is an advanced level of coding and technique to validate crypto transactions. Crypto aims to provide transparency and security in every user transaction. To date, there have not been any cases of crypto hacking. Yes, we have heard various news about crypto hackers being able to gain access to the private key.
How do cryptos work?
If you own crypto, then you might be aware that you do not own anything physical. But what you own is a private key that allows you to undertake every user transaction.
Today, the total market volume of cryptos increased to $3 trillion. While Bitcoin is the first, today there are more than 14k cryptocurrencies.
Crypto market performance in 2022
Before going to 2022, let us understand the market performance of cryptos.
Cryptos became an instant hit after its launch in 2009. Cryptos since then have been giving a favorable performance. As of 2021, the total market volume of cryptocurrencies increased by close to $3 trillion. Along with this, various countries also took to accepting crypto payments. Additionally, cryptos have also been used to make payments on various merchant sites. With the growth of crypto investments, it is evident that cryptos are here to stay.
Now, coming to the market performance of cryptos, yes it is not a favorable year. The beginning of the year showed a green trend performance. But from March onward the performance pattern changed. Every crypto showed a red-line trend in its performance.
Along with this, various countries are also looking to regulate cryptos. This breaks the basic working model of cryptos.
How cryptos were impacted in 2022?
Various popular tokens including Bitcoin, Ethereum, and other popular tokens were subjected to it.
Bitcoin which was sold at $65k per token came down to $20k. Many investors lost their entire holdings through this market crash. The story was not different for other tokens. The popular stable token Terra was completely wiped from the whole market.
Many crypto companies went bankrupt with the current trend. Crypto companies went about various methods to reduce costs including layoffs. Another shocking news to this impact was the bankruptcy declared by crypto exchanges.
Will the crypto market recover in 2023?
This has been an ongoing question in every investor’s mind. With more than 70% dips in market volume, everyone is looking forward to crypto recovery.
Let us understand two important reasons why cryptocurrency might recover this year.
Dips in the crypto market are not a new phenomenon
Crypto markets have suffered such crashes in the past as well. The price of Bitcoin was reduced to less than $3k in 2018. This reduced the market volume of cryptos significantly. However, the market was soon to recover in the next 18 months. The price of the same token went all the way to $70k in 2021. This is the highest price recorded by any cryptocurrency. Investors were soon to take advantage of this price hike. Many interested crypto investors took their turn to buy crypto tokens for their kitty.
The Bull Run follows the bear market
The prices tend to increase and fall often. Also, the prices of crypto tokens are controlled by various external factors. This includes market hype, crypto features, and other developments. Every crypto bear market follows a bull market. Now that the crypto market has experienced a bear market for more than 10 months. The road to a recovery path is promising.
Learn more about the crypto bull market in Bitcoin smart.
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