The Crypto Winter: Are There Any Advantages?
It seems that another crypto winter is among us, but what does it mean and are there any advantages? Click here to find out.
Any investor in cryptocurrency knows that patience is key. While there can be periods of flourishing coins and rising trade prices, there can also be times when assets fall across the board, leading to negative sentiment and uncertainty amongst a number of portfolios.
In traditional finance, this is referred to as a bear market. This is when an index such as S&P 500 or a single stock has fallen by 20% or more over a prolonged period of time. In Wall Street terms, the bear market refers to the market itself retreating into a sort of hibernation, while a bull market refers to the surging of stock like the charging of a bull.
For crypto, although it might have a different name, the sentiment is very much the same. There are positive times, such as Bitcoin’s all-time highest price of $67,566 in November 2021 – but there are also negative times, such as Bitcoin’s drop of 70% in the months after. These are the moments when the bears go to hibernate and the cold of winter truly begins to be felt.
The last time this occurred was between January 2018 to December 2020, and for any investors who have been practising the art of patience, it looks like that art is going to have to be put into action yet again.
Has A Crypto Winter Returned?
After reaching its highest price in November last year, Bitcoin has since fallen to a current value of around $20,000. Ethereum is similarly having a cold patch, having dropped from a high of $4,891 to around $1,000 in the space of two months between November and January. The stock markets are similarly suffering, with only gold seeming to stay unscathed.
Despite the likelihood of Ethereum’s price rising after its move to a proof-of-stake (POS) consensus mechanism, it is unclear how long both these crypto exchanges and the rest of the market itself will be hovering in limbo. If the winter of the past gives any indication of the present, however, it could be time to slip on the gloves and ice shoes and prepare to climb a pretty steep mountain.
What Causes A Crypto Winter?
In cryptocurrency, the seasons can change for almost any reason at all. This is very in tune with the nature of crypto itself. By its own concept, cryptocurrency is volatile and unstable, with the price of Bitcoin and other exchanges changing day to day. Its value is determined by supply and demand, both of which can be affected by anything from public opinion to the inflation of traditional fiat currencies.
For this crypto winter, specifically, it would be reasonable to suggest that the current dip is due to exterior, global politics. The war between Ukraine and Russia is bound to have had an effect, both for digital and traditional finance across the world. This is the first war in Europe since World War II, and according to Bone Fide Wealth founder Doug Boneparth, any war as globally impactful as this will lead to a “tremendous amount of volatility” regardless of asset class.
Is There Any Good News To Be Found?
Another possible cause for the Crypto winter is the recent de-pegging of Terra and Tether. Last month, both stablecoins dropped below $1, which similarly caused a ripple effect across the entire crypto community, with investors selling off their coins before any valuations could severely dip.
Likewise, a number of crypto exchanges recently froze their withdrawals, citing “extreme market conditions” as a reason for the pause rather than any technical difficulties. But it is in these extreme market conditions that some positives can be gleaned from the rubble. Ethereum co-founder Vitalik Buterin recently stated that we are indeed entering a new crypto winter, although he has highlighted the benefits that can arise on the development side. Most crucially, these extreme market conditions will hit the companies and investors who have made poor decisions the hardest.
Why Is This A Positive Thing?
Over the last few years, crypto has grown and expanded into a beast which could feasibly overtake the traditional forms of financing in the next decade. Along with this rise, a large amount of hype has been built around it, which has subsequently led to ill-conceived projects which have been minting tokens and convincing hedge fund managers they have value.
According to Buterin, the crypto winter provides an opportunity to allow these useless applications to fall away in favour of projects which are actually sustainable and legitimate, both in their concepts and the people who are involved in them. According to him, if one focuses on the developmental side of things, “we can bank on the industry coming out stronger after this period is over”.
In this way, the current crypto market crash can be seen as something other than a winter. In fact, the winter can be a cleansing flame which eliminates a weakened phoenix into something rejuvenated and pure once again. It is a chance for the market to renew itself and spread new wings.
Are There Other Advantages To Be Aware Of?
Just as there are several reasons that can cause a crypto winter to happen, there are similarly a number of reasons it can be seen as advantageous. For instance, a crypto winter is a good opportunity for investors to sort out portfolios and start things afresh.
When the market is flourishing, it can be very easy to revert a little from your original exchange strategies and try out different things. This can lead to portfolios weighed down by several good decisions and bad decisions. The winter is the time to weed out poor decisions and balance your portfolio more in the favour of the good ones. It is important to use that time to hone your strategies to keep risks to your assets at a minimum. After all, like any other season, the crypto winter will pass and the sun will be felt again.
Regulatory tightening and EU MICA - risk or opportunity
In this article, we’ll discuss the upcoming Markets in Crypto Assets (MiCA) bill proposed by the EU Parliament. ...
The 5 Main Types of Crypto Attacks
In this article, we’ll examine the five main types of attacks that target cryptocurrency users.
Crypto Trends in October 2022
It’s October! What's trending in crypto this month?
Crypto Trends in September 2022
It’s September! What's trending in crypto this month?
Bitcoin Showing Signs of Resurgence After Catastrophic Dip: What's Contributed?
The Crypto Winter looms even as Bitcoin’s price shows signs of stabilising and resurging. Read on to discover ...
Tesla Sells Bitcoin Holdings: Will This See the Beginning of a Trend for Other Businesses Who Hold Crypto?
Tesla has sold off 75% of its Bitcoin holdings. Click here to find out why and whether other businesses will be ...
Bitcoin Maximalism: What Is It?
Bitcoin maximalists are receiving more attention in the mainstream media. But what are they? Read on for ...
All About Crypto Seasonality
The total market capitalization of the top 100 cryptocurrencies has increased over the past seven years from ...
Getting to Grips with Arbitrage
The world of trading has many different tricks and tools refined over the years by strategists and financiers, ...
The Comparisons Between the 2018 Crypto Bear Market and Now: Are They Useful?
Cryptocurrency is currently heading into another bear market. Click here to find out how noting comparisons can ...
The Blossoming Intersection of Fashion and Crypto: What Does the Future Hold?
Over the last few years, fashion and crypto have been entwined together. Click here to find out what this means ...
Could Post-Merge Ethereum Have a Centralization Problem?
Ethereum recently completed its merge into Ethereum 2.0. Click here to find out if this will bring about a ...
Instagram to Add Support for NFTs
Instagram to launch NFT functionality on its platform in 100 countries worldwide
Can Ethereum’s Ecosystem Keep Its Future Bright Amidst This Crypto Winter?
Ethereum has steadily been building an ecosystem unlike any other. Click here to find out why its future remains ...
Buterin Criticises Bitcoin’s Stock-to-Flow Price Prediction Model – But What Is It?
The stock-to-flow prediction model has caused a mixed reaction amongst the crypto community. Click here to find ...
AVAX, the Ethereum Killer: What You Need to Know
AVAX, which is a token run on the Avalanche blockchain, is said to be the Ethereum killer. Click here to find out ...
A ‘Digital Library of Italian Culture’ in Puglia: Is It Expanding NFT Use to New Areas?
The University Aldo Moro is currently using NFTs as a way to reignite the culture of Puglia. Click here to find ...
Crypto’s Position in the Italian Economy: Will It Only Grow and What Would Regulation Do?
Crypto is continuing to grow in the Italian economy. Click here to find out how and what regulation might mean ...
Will the EU Adopt a Digital Currency?
Cryptocurrency is growing across the world, with more and more countries starting to embrace it. Click here to ...
We are delisting Swipe (SXP)
Due to a change in the blockchain used by Swipe, SXP will no longer be supported.
Scheduled Maintenance on 05/06/2023
We will conduct scheduled maintenance from 06:30 to 07:00 (UTC+2) on 05/06/2023.
We are listing Ocean Protocol (OCEAN)
We will soon be listing OCEAN, the native token of the Ocean Protocol project
Our Slovakian license is approved!
The license is another achievement along our path to becoming the most well-regulated exchange in Europe
"Lights, Camera, Trade!" Trading Competition
Get ready for the zondacrypto rebranding trading competition!
Zonda is now zondacrypto
Your favourite crypto exchange is getting a new look and added features!
How is Zonda working during long May weekend?
Please note that during Long May weekend, our customer support team will be available as usual. However, during ...
Important Notice: We are delisting LUNC
To provide the safest trading experience for our customers, we regularly review each token on the exchange to ...
We’ve partnered with crypto tax experts Cryptiony!
Get 20% off when you sign up with our promo code
We are listing Fetch.ai (FET)
We are listing $FET, the token of the Fetch.ai project, on Monday 24 April 2023.
4. 08 Phishing: types and examples
Phishing is a type of fraud that involves impersonating another person or institution in order to extract data ...
4. 07 Investment scams. What to look out for?
Investment fraud is one of the most common recent threats that is oriented towards people who use the services ...
4. 06 Travel Rule
Travel rule is a rule well known from the traditional banking sector, which states that all funds sent from one ...
4.05 Crypto taxation in Poland
Every year in Poland, more and more people are investing in cryptocurrencies. This involves, among other things, ...
4.04 Illegal Activities in Crypto
In this lesson, we explore recent statistics and discover insights about criminal activities related to ...
4.03 DLT Pilot Regime
The Regulation of the European Parliament and of the Council on a pilot regime for market infrastructures based ...
4.02 Digital Operational Resilience Act (DORA)
In this lesson you will learn more about the Digital Operational Resilience Act (DORA), which as a part of ...
4.01 Markets in Crypto Assets (MiCA)
In this lesson you will learn more about MiCA, which aims to be the first comprehensive law regulating ...
3.03 The Dow theory: principles and statements
This lesson helps you understand the principles and statements of Dow’s theory.
3.05 Candlestick charts and patterns
This lesson focuses on understanding candlestick charts and patterns.
Invezz / Interview: Volatility, liquidity and what happens next for crypto – zondacrypto exchange
Anyone who has ventured into the cryptocurrency world will agree with one thing: the volatility is unmatched. Be it plummeting or soaring prices, crypto markets are notorious for the pace at which they move. In this interview, Stanislav Havryliuk, our COO, assesses the current situation on the crypto market.
US regulators are cracking down on stablecoins!
Blockworks spoke to our COO Stanislaw Havryliuk about the recent SEC action against @PaxosGlobal and stablecoin #BUSD
Should we expect to see similar action against #USDT and #USDC? Which #stablecoin is the safest option?
Meet the person that is creating ripples of growth in the crypto space
Our CEO Przemysław Kral is making headlines again!
In this feature from FoxInterviewer, he discusses the skills needed to succeed in the emerging digital assets industry, the importance of KYC and AML procedures, and the tools he is building at Zonda.
Business Insider recently had a chat with our CEO
Zonda’s CEO Przemysław Kral recent spoke to Business Insider about the importance of consumer safety and compliance in the crypto sector.
Read the full article, along with additional commentary from our COO Stanislav Havryliuk
How will the US banking crisis affect crypto? Our CEO spoke to Benzinga
The collapse of Silvergate has sent shockwaves through the crypto industry. Where will US crypto businesses now go for banking services?
Zonda CEO Przemysław Kral recently spoke to @Benzinga about this issue and the problems it could cause.
Zonda is now zondacrypto!
As the exchange continues to evolve and grow, we're thrilled to announce that we're rebranding and changing our name to better reflect our vision and values. We're still the same team you know and trust, but with a fresh new name that captures our spirit of innovation and customer-centric approach.
Some things may look a bit different but don’t worry - all operations remain the same and your login details work as usual.
Stay tuned for more updates and exciting changes as we embark on this new chapter together. Thank you for your continued support and loyalty!