“I really don’t have the courage to look at crypto investments now. They’re already more than halfway there!”
Yumna Ahmad, who works as a communications professional at OP Jindal Global University, has yet to have the courage to face the massacre that has damaged her crypto investment over the past few weeks.
But he was not alone. This bloodshed, which wiped out investors ’wealth of about $ 400 billion crypto over the past few weeks around the world, affecting many young Indian investors like him. How does this change his view invest in this very volatile asset class? And now, what is a crypto wallet like?
But now there is a tiny little silver lining. With some green spikes visible, the crypto market is constantly reviving. The global crypto market capitalization, currently $ 1.29 trillion, was still below $ 1.42 trillion when nosedive began around May 12, 2022.
Even BTC and ETH, typically considered blue-chips in the crypto-verse, experienced a 50% decline in their values in May. In early May, BTC traded at around $ 40,713.89. In the span of just two weeks, it has spiraled sharply below the $ 26,000 mark, only to steady and currently trades at $ 29,916.26.
ETH rates are no different. After reaching a monthly high of $ 3,026.42, ethereum also fell to $ 1,748. Now at $ 2,016.68, the coin is also slowly heading into recovery.
Young People Create Beeline for Crypto
Current data shows that approximately 21 million investors invested in crypto last year. And despite that India introducing a strict and steep 30% tax for virtual digital assets (VDA) like crypto this year, enthusiasm about its adoption has not diminished here. As reported by crypto exchange Gemini, more than 54% of Indians in the crypto space are first time investors.
Like Prachi, for example. An actuarial professional working in Gurgaon, he recently decided to get rid of some potion from his salary to invest in crypto.
“But I’m a little skeptical. The very high return on investment for your crypto investment is very tempting, but as someone who is just starting to invest in the financial markets, I want to set aside more to invest in mutual funds.
Hence, they started investing only Rs 1,500 each in ETH, SOL and BTC to see where they are going. Currently, the value of his portfolio is less than Rs 500.
There are more individuals on this boat. Karan Anand, who works as deputy communications manager at the renowned NCR -based university, sees his investment portfolio worth Rs 7,00,000 down significantly below Rs 3,00,000.
“I usually invest in coins that I think have strong foundations, such as Ethereum, Cardano, Solana and WinkLINK, which was one of the first DeFi projects to run on the TRON network. Since it’s a link between real information and seamless availability on the blockchain, I thought it would make for a good investment, ”he explained.
LUNA problem
The town’s talk at the center of last week’s debacle was the de-pegging of the TerraUSD stablecoin and the subsequent thrashing of the coin LUNA’s sister took. TerraUSD lost a 1: 1 peg to the dollar last week, causing investors to panic.
Since TerraUSD is an algorithmic stablecoin, repegging and restoring the balance of the ecosystem must be done by printing more LUNAs. That caused the circulation to rise until the price fell by almost 99.99%. Now, LUNA is struggling to make a living with $ 0.0002102. A year ago, it could be sold for 97.28 U.S. dollars.
Even TerraUSD, which is currently trading at $ 0.0577 is far from reaching the required $ 1 mark. The number of winning crypto exchanges shows that about 2.1 Indians lose money when LUNA reaches its bottom. And Suryakant Sharma, who works as a Senior Operations Associate at ShareChat, is one of them.
“I have invested a lot in LUNA. I lost Rs 1,75,000 after it collapsed and was thrown out of all Indian and global crypto exchanges. I have lost everything,” he said.
Still, Suryakant is willing to invest in crypto again, if he finds a good opportunity. “There’s great potential to achieve high results in this space, which I want to continue to explore,” he said.
The System Is The Way To Go
There is also a story about caution. Shivam Srivastava, an avid trader and MBA student at Narsee Monjee University, Mumbai, saw the alarm bell from a distance, before the crash.
“I had a bad feeling about the whole global market and eliminated everything at the start of the Russian invasion of Ukraine. I even told my friends to get out of the crypto market,” Srivastava said.
Others, like Nilesh Maurya, who works in the financial field, advocate not for a full exit like Shivam, but to have a systematic plan.
“I lost about 45 percent on my entire portfolio. But I invested systematically and had a shared portfolio. Half of it was dedicated to investing and the other half to trading. So, my $ 10,000 investment is now down to $ 6,100,” he said.
Read it all The latest news , Information and IPL 2022 Live Updates here.
