Cryptocurrency markets often experience panic due to several factors. First, extreme price volatility causes rapid and substantial value fluctuations, triggering fear of significant investment losses. Second, regulatory uncertainty contributes to panic as governments worldwide contemplate various regulations, creating uncertainty about the legality and future of cryptocurrencies. Third, security breaches like exchange hacks or wallet vulnerabilities erode trust, causing panic among investors worried about the safety of their assets. Additionally, market manipulation, often fueled by influential figures' comments or sudden policy changes, can induce panic by impacting prices or market trends unexpectedly. Overall, the combination of volatility, regulatory ambiguity, security concerns, and market manipulation fosters an environment of uncertainty and fear, leading to panic reactions within the cryptocurrency space.
RE: Quiz For All - Increase your knowledge and win upvotes - Day 58
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Quiz For All - Increase your knowledge and win upvotes - Day 58
A perfect answer to my question and if we talk about the continuous change in policies and new regulations like in India people are now in panic as there is a 30% tax on profit earned from crypto. That is not acceptable by the people, this is not promoting web3 but rather killing it.
We need reforms, the proper reforms to make it all worth for people living in India. Hardware wallet is the option for long term holding but at the end of the day we pay 30% of our earned profit, that is actually sad. ( be it 100 inr or 100k inr you pay 30%).