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“The only thing you can do is watch”: ERC20 token founder on why you shouldn’t look for reasons in the crypto crash

Natali Soloviova

BuidlB, journalist

Jun 24, 2022 at 03:50

Now everyone is wondering why the cryptocurrency market has collapsed. Why did this happen? What will happen to the market next? Is it worth buying tokens now? Which? When will the growth resume? Will the market recover at all?

We asked the founder of the ERC20 token, Alex Ovnages. Here’s what he thinks.

What happened to the market?

Many people put forward their theories about this. And here is my answer: no sane person who knows the crypto market will name clear reasons because they do not exist. All theories are just theories. They don’t provide a reasonable answer.

However, the factors that affect the market still exist. I suggest talking about them.

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Many new people come to the world of cryptocurrency every day

These people know nothing about this world. But they want quick profit and big money. They open up unprofitable positions and lose money due to a lack of knowledge, practice, and skills.

This negatively affects the market. The whole world of cryptocurrencies is getting bad publicity. Although in fact, the responsibility for financial risks always lies with the investor. But many find it difficult to admit.

I often face such problems in my ERC20 community. After all, new holders join my family every day. Sometimes they buy a token ERC20 in haste and then go through a period of drawdown. And, of course, this entails certain negativity. But it is just a consequence of the lack of analysis.

Cryptocurrency as an industry is just developing

Cryptocurrency is an entirely new financial world. It is just taking its shape. It is obvious that the system will occasionally “fail.”

A particular pool of flagships in the field should be formed in the future. During market failures, the weakest projects fall. This is a natural filter.

My team always tells our holders: “Don’t make impulsive decisions. In times of high market turbulence, the only thing you can do is watch. Cryptocurrency is a field for those who know how to wait.”

The most important marker of the market

Bitcoin always underlies the dynamics of all crypto projects. If it falls, most projects fall too, even the stable and reliable ones with a good reputation.

We can say that Bitcoin is a cruise ship and all the altcoins are its passengers. If it sinks to the bottom, most sink with it.

There are exceptions to this rule. Even take my token – now the whole market is falling, and a few days ago, it made 94% up. Everything is individual. Novice investors need to analyze each coin separately.

Graph site Coingecko
Graph site Coingecko

I know one thing for sure: the human factor is significant in cryptocurrency. And people are ruled by greed, fear, and the news.

This is not the first time I have seen the market fall. I perceive such situations as a sales season. I am now replenishing my portfolio with my favorite assets. This is an excellent chance to make a good profit in the future.

But will the profit definitely come? Will the market grow? Nobody can say that with certainty.

Top 3 tips for people who plan to invest in cryptocurrency

  • Invest the money you don’t need for the next few years, the money you are ready to lose.
  • Do not invest all your free money. Keep some part at hand in case of a promising project or moment.
  • Do not put everything in one coin. Make up your portfolio of 5–10 coins of different types. Include both high-risk and stable projects.

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