Turkey to Use Blockchain-Based Digital Identities for Online Public Services
zkSync Launches New Plugin Supporting Smart Contract Verification

A Rough Crypto Year in Review: What Should We Expect in 2023?

2022 has come and gone, and it undoubtedly had been a bumpy year. 2022 was one of the shakiest years in crypto history, having entered a bear market after some explosive years during the pandemic. 

After seeing crypto jump to entirely new levels during 2020 and 2021, this year was time for some retraction in the market and settled prices on everything from currencies to NFTs.  

But what are the reasons for this vast bear market, what can we learn from it, and how should we approach everything in 2023? These are things we give our take on in this article.

The biggest mistakes for crypto in 2022

It’s no secret that 2022 was when crypto investors and enthusiasts discovered that trees don’t grow into the skies. The whole space had almost gotten used to just seeing green numbers on the charts, but 2022 made sure to change that and give everyone a new reality check. 

With consistent retraction in the market, many people have witnessed their investments decrease in value. It’s not an isolated issue to specific projects but something that has happened to the whole market. Some have bled more than others, as it always is, but generally, it has been hard to earn big bucks on the crypto market this year. With that said, there’s nothing unusual in this, and we probably had it coming after some great years. 

Generally, the global financial state is in a shaky spot, and that reflects in the crypto market just like it does in the stock market and other places. During 2022, we saw many big projects having to shut down simply because of the market conditions. This doesn’t mean that specific projects didn’t perform well because some did manage to go through 2022 without getting completely blasted like the rest of the market.

FTX US clearing proposals 'dead in the water' - Risk.net

Source: Risk.net

From the big FTX bankruptcy scandal, large blockchains struggling to find stability, and smaller dedicated projects shut down due to lack of funding, 2022 has been a year of defeats rather than a year of winning. Therefore, many will likely applaud that 2022 is soon over and hope for something better going into the new year.

What can be learned for 2023?

That said, it hasn’t all been bad, as we can always take away essential lessons from a market like this. While most people are struggling to see the bright side of 2022 with crypto glasses, there are, in fact, some takeaways that can be valuable moving forward. 

First, it’s not the first time the entire crypto market is taking a dip. In such a volatile space, it’s not unusual nor a surprise that everything fluctuates hard. This can be hard to remember when you are in the middle of a big bear market, but dive into the history books and remind yourself of how this happened before, where the market managed to recover and grow bigger. 

Crypto voices: investors speak about the market shock | Financial Times

Source: Financial Times

Many new investors have entered the crypto space over these last few years, so for many, 2022 is the first bear market they have experienced. In that case, the current conditions certainly are scary. Many have probably taken a beating on their investments; yes, those can be expensive lessons learned. Hopefully, these lessons will help many new investors to tread lightly in the future and hold on to the investments they believe in when things get rocky. 

Lastly, 2022 will be remembered as a terrible year for crypto, but it shouldn’t scare you away. If you believe in the fundamentals of crypto technology, you should still be looking at the space long term. A one-year bear market is rough, but there’s plenty of time to bounce back in the grand scheme of things. 

How to approach crypto investing in 2023

Even though the 2022 bear market has already felt like an eternity, we might have more coming to us in 2023. It’s wise to stay optimistic long term, but 2023 could still turn out as another rough year for crypto investors. 

Currently, the crypto market could continue its downward trend simply based on global financial conditions and uncertainties in the economy. With the ongoing war in Ukraine and other things happening in the world, the economy is left in a bad spot. We don’t just feel this in crypto, but in the stock market and general inflation taking a toll on everyone. 

Many factors affecting the crypto market are simply out of our hands. But what we can do, is take the lessons from 2022 with us and apply them. A major lesson is to be more careful and strategic with crypto investments and exchanges. Look out for short-term hype waves if you aren’t going to trade actively, and look for long-term projects where the utility and technology behind them are excellent. 

Crypto Markets 2023 Will Be 'About Differentiate Or Die' For Investors

Source: Forbes

We still need to use our best judgment, but in 2023 we should all be more careful with where we put our money. As seen during this year, even some of the most significant projects can have crucial cracks in their armor – affecting all private investors at the end of the day. 

In short, the crypto market in 2023 will be in a state where most people can’t afford to throw their money into new projects just for the sake of it. It’s time to invest the money smart and cautiously. On top of that, it’s time to put on the long-term glasses and invest in things you believe will be here to catch the bull market whenever it comes. 

It’s a tough and, for some, boring strategy, but it will be a smarter and safer approach to the market in this new year.

If you are hungry for more crypto-related news going into 2023, make sure to join our BingX Community to get all the latest updates!

Twitter:   https://twitter.com/BingXOfficial

Telegram:   https://t.me/BingXOfficial


Disclaimer:  BingX does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company. BingX is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the article.