Cryptocurrency, or digital currency, has been around since 2009. It is a digital form of money that can be used to purchase goods and services from sellers who accept it as payment. In recent years, cryptocurrency has become increasingly popular due to its potential for large gains in value. However, like any other investment, it comes with risks—risks that were highlighted recently when the crypto market crashed. So what caused this crash and what can be the alternative to cryptocurrency?
What Caused the Crypto Crash?
The crypto crash can be attributed to several factors, such as regulatory uncertainty, news of hacks and scams, and a lack of institutional investment. On top of this, growing competition from new coins entering the market created an environment where investors became more risk-averse. This led many investors to sell off their crypto holdings at once, causing a massive drop in prices across the market.
Alternative to Cryptocurrency: OTC Penny Stocks
One possible option for investors looking for an alternative to cryptocurrency is OTC penny stocks. Trading on the Over-the-Counter (OTC) Market often features lower prices than those found on major exchanges and even comes with some investor protections. For example, regulators may halt trading for a particular security if they feel that investor losses could arise from fraudulent activity or unfair practices of the brokerage firm itself, providing a greater degree of investor protection than typically found in cryptocurrency investments. In this way, OTC penny stocks represent a palatable option to investors who are wary of the volatility of cryptocurrency but still wish to gain exposure to market investments.
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