Market Volatility & Investors Long Term Approach in the Digital Asset Market

Market volatility and the risk-taking approach of investors go hand in hand, one single risky investment may result in the best investment of all time or can result in the biggest mistakes.

A New Approach to the Market

 In the year 2019, a new type of digital asset BITCOIN was trending in the US Market; which changed the pattern and method of investment from various ventures to new investors in the market.

With the trend of BITCOIN users received a new regulated source of passive income. This was easily accessible and could be traded, held as earlier investment modes with increased profit margins.

Introduction of these digital assets new investors started entering the market to earn passive incomes. But as investors were new, they didn’t know much about trade practices and volatility algorithms of the market resulting in not-so-better results and profit margins.

It was understood then, that the market volatility in this specific crypto asset market is more than any other type of investment opportunity. But depending upon past records it can also be understood as even after being bearish these digital assets come back with even all-time high records challenging the method and beliefs of traditional investment patterns.

Reasons for Market Surge

After the term of COVID – 19, and currently, Russia – Ukraine war, the stock market tends to be bearish and an expected recession is knocking on our doors. In this scenario investment in these types of digital assets looks promising.

If we talk about S& P 500, it’s been bearish for a long time now, also recently it dropped more than 20%, but if we look at the trends of digital assets (specifically BITCOIN), even after being on a low, its value was more than 10% than it was 5 years ago.

BITCOIN has fallen either by 50% or more and even exceeded more than 80% in-depth, but each time it has recovered itself from the fall and has created new all-time highs.

Currently, BITCOIN is lower than its 2021 high but still, it is giving better returns than S & P 500.

Investors are concerned about Digital Asset Market Volatility

Investors are worried about the high volatility rate in this market asset, but a pattern of high volatility has been its nature from the beginning. Thus, investors should invest in digital assets with a clear algorithm based on past trading and trending patterns of these market assets.