The major reason for all investments is to make a profit. However, since most investments might not guarantee 100% profit, that makes them to be risky. In a crypto winter, there are players in the market that are exposed to more losses than others. Some of them include: Short term investors Unskilled traders Decentralized Finance projects Crypto miners Short term Investors Some investors have a short-term plan for their investment. In a situation where the investment was followed by a season of continuous market downtrend known as crypto winter for a duration which sometimes might be up to 3 years: the investor will need to cash out. Cashing out means that all the losses can’t be regained. This makes short-term investors at a very high risk of losing some parts of their investments during crypto winter. Unskilled traders The volatility of the cryptocurrency market makes it to be prone to more risk than the Forex market. This is because it is unregulated. Institutional investors can easily manipulate the market to ensure that their open positions in the leverage market ends favorably. This is because, the market is mostly controlled by the sellers and one with a high portfolio can easily change the direction of the market. This makes it important for traders to check the percentage of holdings in private wallets before trading on cryptocurrencies with low market capitalization. Decentralized Finance projects Investors stake and...
