Image courtesy Calyx Token
This article is Sponsored Content written by a third-party for Calyx Token
The cryptocurrency market has taken a beating in recent months, to put it mildly. Since their November highs, Bitcoin (BTC) and Ethereum (ETH) are both down roughly 57%. In that time, Cardano (ADA) has lost about 75% of its value, while Solana (SOL), one of the crypto world’s breakout stars, has lost nearly 80%.
The TerraUSD (UST) controversy has also shook the industry. After losing its peg to the US dollar, Terra (LUNA), the stablecoin’s sister cryptocurrency, lost more than 98% of its value in just 24 hours.
Not only has this been bad news for LUNA investors, but it has also shattered many investors’ faith in stablecoins in general — and possibly the entire cryptocurrency market. Is now still a good time to invest in cryptocurrency?
What’s in store for the market?
Nobody knows if cryptocurrency will recover from its current slump or even continue to exist into the future. Even major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are highly speculative investments.
This does not mean that investing is out of the question. You should, however, consider how much risk you can take.
Cryptocurrency has enormous profit potential, and some experts believe it will be around for a long time. The recent downturn, however, demonstrates how volatile it can be, and the LUNA fiasco serves as a timely reminder that cryptocurrency is inherently risky.
Is investing still worthwhile?
Cryptocurrency should be considered a long-term investment rather than a short-term gain.
If you think a cryptocurrency has long-term value, you should buy now while prices are still low. This investment may not be for you if you’re looking for quick cash.
Consider whether you can afford to invest right now. Only invest as much money as you’re willing to lose. If you’re having trouble paying your bills or don’t have a sufficient emergency fund, always put those needs first before investing.
Finally, think about how much risk you’re prepared to take. Even if you have a long-term outlook, short-term volatility can be difficult to stomach. Cryptocurrency prices have been known to drop by 50% or more, so if you know you’d lose sleep over that kind of volatility, you should look for something else to invest in.
Ease into it with presales
Many investors prefer to start with presales, also known as initial coin offerings (ICOs). Presales, which are offered at low prices to attract interest before being traded on the wider market, can help investors reduce risk.
Because they tend to be inexpensive, investors avoid significant losses if the project fails. When the tokens first appear on the market, however, they are usually in high demand, and early investors can profitably sell them.
To determine the project’s long-term outlook, it is recommended that you choose a presale token based on your personal assessment of the White Paper. Another good sign is whether the token is gaining traction in the cryptocurrency community at large.
One presale token that’s being talked about is Calyx Token (CLX). Early adopters believe it has the potential to transform the market because of its interoperability and practicality.
Calyx Token (CLX) will be a liquidity protocol that employs cutting-edge technology to help users avoid the lengthy processing times and high gas fees associated with crypto exchange platforms.
The platform’s exchange solution, Calyx Swap, will pool liquidity from multiple sources across multiple DEXs belonging to various blockchain networks, such as Ethereum (ETH), Polygon (MATIC), Binance Smart Chain (BSC), and Avalanche (AVAX), to give users the best deal for any swap across supported blockchain networks.
Calyx Token (CLX) is also designed to be permissionless and decentralised. Users will not be required to go through the extensive security checks that centralised exchange platforms require, nor will they have to register in order to use the swap.
Calyx Token (CLX) is expected to be a huge success in DeFi as a result of these features, as these will make the project widely accessible.
Cryptocurrency has the potential to be a profitable investment, but high-risk projects aren’t for everyone.
While downturns are advantageous for investing because prices are lower, be aware of the risks associated with cryptocurrency. If you’re better prepared, you’ll be better off.