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Crypto Crash shows why you should not invest heavily in TOKENS

The crypto market has taken a nosedive over the past couple of days and it has affected every cryptocurrency in the market. There is no telling yet how far prices will fall but this crypto crash shows why you should not invest HEAVILY in TOKENS.

Don’t get it wrong, investing in crypto TOKENS is a good way to make good money. For one thing, it’s cheaper to invest in TOKENS and the profit can rise quickly if there is an upward surge in the price of the TOKEN. But, TOKENS are also the first to get hit hard when there is a crypto crash. Here is what I mean.

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Traditional cryptocurrencies such as BNB, BTC, ETH, etc have been around for a while. These cryptocurrencies have prices well above $300. This means a crash in the crypto market will not make them go off the radar (by off the radar I mean go below one cent).

BTC Price Crash
BTC 6 Month Price Chart

But this is not the case for TOKENS. For example, 6 months ago the price of BTC peaked at $65,000 but at the time of writing this article, it dropped to $30,000. This means the crypto took a nosedive and lost more than half what it’s worth 6 months ago. However, as big as this loss might seem, the crypto is not off the radar because it still has value.

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In contrast, the Terra Ecosystem tokens known as LUNA has its price peaked at $119 a month ago but at the time of writing this article, its price fell to $0.00005 (the price fell by about 99%). As a result companies such as and Binance have suspended the trading of LUNA.

Luna Price Crash
LUNA 7 Day Price Chart

The first piece of advice you get when you decide to enter the crypto market is that the MARKET is VOLATILE. This simply means that just like a coin there are two sides to the crypto market. It’s BULLISH and it’s BEARISH. BULLISH when crypto prices are on the rise and BEARISH when crypto prices are falling.

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And for anyone who owns TOKENS, this can be good or bad news. Right now, those who hold TOKENS are sitting on the sharp edge of the sword because the prices of most of the TOKENS will be reduced to practically ZERO.

But, this does not mean it’s a bad thing. From the history of crypto price charts, the market always bounces back but for now, lots of people will have their crypto portfolio liquidated. While the current crypto crash affects all crypto traders, those who hold lots of TOKENS will be affected the most in some cases.

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In conclusion, you should not invest heavily in TOKENS especially when you’re not too sure about the project. Granted, some TOKENS will survive this crypto crash but this crypto crash will also be the end for most TOKENS. However, those who hold traditional cryptocurrencies such as BTC, ETH, and BNB still have hope for a market rebound.

Note: This is not financial advice. It’s a personal opinion explaining from a user point of view the effect the crash of the crypto market of 2022 has on TOKENS.






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