Bitcoin market crash wipes billions off cryptocurrency’s value sparking meltdown

Bitcoin, the world's biggest cryptocurrency, has suffered an almighty price crash that has left thousands of investors fearing for their wallets.

The crypto dropped to its lowest levels since December, falling below £33,000 after an almighty rally last year saw it skyrocket.

Other cryptocurrencies are also suffering. Ethereum lost more than 12 percent of its value yesterday, while 'altcoins' like Shiba Inu and Dogecoin also witnessed big drops.

It is the second big dip since December, which saw a drop of over 10 percent.

"It's going to be a blood bath today," said one Twitter user, as traditional stock markets saw prices slide as well.

The price drop follows an announcement from the US Federal Reserve that it would be cutting support measures for the US economy, which has impacted 'risky' assets like cryptocurrency.

While many people are panicking about losing money, others have pleaded for caution from crypto investors.

"Last two times there was a #BitcoinCrash, it went on to double in price both times after eventually getting under $30,000. So sit back and relax…" wrote one Twitter user.

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How do I buy, sell, or trade with Bitcoin?

While some people encourage investors to buy more Bitcoin 'on the dip', or when its price goes down, it's really important to remember that the value of Bitcoin is extremely volatile.

As a result, it can rise and drop in value very unpredictably. While many have made money on Bitcoin, lots of people have lost thousands.

You should speak to an independent financial adviser before making any major investment decisions as you are ultimately putting your savings and capital at risk.

To use Bitcoin, you need to download and install a digital cryptocurrency 'wallet'. This is unique to you and is where your Bitcoin will be stored, and acts sort of like a virtual bank account.

There are many different types of cryptocurrency wallets, including ones that you can store on USB sticks or on your device. However, you can also get secure digital wallets through third parties.

If you want to buy Bitcoin, you'll need to go to a trusted 'crypto exchange' such as Coinbase, Binance, or Gemini. They may charge small fees on transactions, but offer good security to protect your investments and also sell other cryptocurrencies such as Ethereum.

Just make sure to triple-check the authenticity of any site claiming to be an exchange, paying close attention to the web address you're visiting before paying for anything. There are lots of fraudsters out there looking to scam people who want to buy Bitcoin.

  • Money
  • Bitcoin

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