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Last updated
Last updated
The cryptocurrency market is continuously growing day by day since the inception of Bitcoin by Satoshi Nakamoto. As of August 2022, the total market capitalization of all cryptocurrencies has exceeded approximately one trillion dollars, accounting for approximately 50% of the market capitalization of all companies in Korea and approximately 40% of the market capitalization of the world's largest company, Apple. Although it is not very large in size considering the scale of the global financial market, cryptocurrencies have experienced rapid growth in a very short period of time and are expected to continue to grow even further.
However, because it is a rapidly growing industry, it is experiencing serious growing pains. Users are suffering significant losses due to illegal activities involving cryptocurrencies, as well as rapid fluctuations in cryptocurrency prices. As the market grows, professional traders are entering the cryptocurrency market, and general investors, who make up the majority of the market, are relatively slow to respond compared to professional traders and can suffer severe losses.
Looking at recent cases, many investors suffered losses as the price of Bitcoin dropped by 16% in June 2022. (Bitcoin drops 16%, biggest decline in a year / June 2022 CoinDesk Korea) According to the big data analysis by DLP Foundation, coins with high volatility have an average price fluctuation of 0.2-0.6% within 5 minutes, and we have been continuously researching ways to make relatively safe and successful investments in such large price fluctuations.