What is going on with crypto?

Short answer

Nothing is going wrong. It is all normal. If you expect a constant 50% daily growth, you are simply leaving on a different planet.

Long answer

What it is happening is just a very expected market correction. It is absolutely normal and happened before, with both Ether and Bitcoin. Check charts yourself if you want proof. In the last month the price went too far ahead of the real value, and it’s a damn right time for correction.

What generated the bubble then?

Well, different things happened in the last month...

1. Rapid price increase due to activity on Asian market
2. Attention from large investors
3. Ethereum and Bitcoin are being discussed in the media very often

And these things generated FOMO (Fear Of Missing Out) and a lot of people, who had no idea of what cryptocurrency is, started to invest without basic knowledge about technology and platforms behind cryptos.

What did this FOMO generated?

More fear!
People that invested not knowing anything are constantly looking for reassurances and this is easily visible looking at how many "To the mooooooooon", "Is Bitcoin hitting $5,000 by August?", "Is Ethereum passing $1,000 by the end of 2017?" posts are out there...
The same people have also fallen in the trap of some big investors who are selling to buy at a low price again. In fact most of the question in the last week have been like “Why Ethereum is falling?”, “Will Bitcoin collapse?”, “Is it the end of crypto?”.

Conclusions

If you want to invest, please follow these rules:

1. DO NOT invest what you cannot afford to lose. If you invest your savings in crypto, you may end up with some big loss that may put you and your family in difficult.
2. Read about cryptos before to put any money on it. Read about the project, read the news. Be confident about investing in something. It might be a good or a wrong investment, but at least you had your own idea.
3. If you don't know much and want to invest anyway (I DO NOT RECOMMEND IT), put just an initial small amount (no more than you would spend for a couple of dinner out) and check weekly the progress, so that you can understand the hype and the drop without having the fear to lose money.
4. If you have never traded, don't start with crypto. They are extremely volatile and you may end up with having no fun. Prefer a long term investment instead.
5. DO NOT invest what you cannot afford to lose. If you invest your savings in crypto, you may end up with some big loss that may put you and your family in difficult.... I know I have already said that, but it is never enough.

Thanks for reading. If you liked it, please Upvote, comment and resteem..... and follow me :)