Almost every investor felt the impact of the recent crypto market crash. The meltdown spared absolutely no one. And yet, one section of traders got the short end of the stick – the amateurs. As opposed to the seasoned investors trading with years of experience, the newbies suffered in much harsher ways. Who better to break it down for us than crypto’s favorite Horde. We sat down with Horde himself to understand the difference in the impact that the crash had on the two types of investors.
In the case of the more experienced investors, the crash was a slight hiccup. Over the past couple of years, as they witnessed steady rises in crypto prices, they started preparations to save up for a rainy day. Horde explains – these traders prepared for the possibility of a meltdown by buying and accumulating riches. They bought cryptocurrencies from Bitcoin to Ethereum and other altcoins in large numbers when the prices were relatively lesser. How that helped them is that when the inevitable crash finally happened, their fall got cushioned by the returns from their timely investments.
On the other hand, younger investors with little to no experience entered the markets at the wrong time. Horde blames bad timing combined with incorrect investment advice. He stresses that that is where you understand the importance of a trustworthy advisor. You simply cannot rely on the news and blogs you consume in real-time without analyzing historical data and trends.
What that did to the amateur investors had made to countless media channels, with the plight of the novice traders splashed across headlines for the world to read and learn from. Millions of people lost their whole lives savings, with many people having gone from hopeful millionaires to broke and homeless almost overnight.
Same crash, different results – The impact that one crash had on different sections of people was more apparent than ever. One section was much better prepared to handle losses of that magnitude. The other called it their biggest misfortune.
But, Horde points out that is the nature of cryptocurrency at its core. It seems unpredictable and based on luck to the ones not well-versed with its ever-evolving side. Cryptocurrencies, every new blip might seem unrelated. But its fiber is very much connected to the other issues happening in the world. Horde’s one piece of advice to the crypto newbies? “Study, and you’ll never be caught off-guard again.”