Collapse is a term used to describe the sudden and dramatic decrease in value of a cryptocurrency. The cause of such declines can range from market shocks, regulatory changes, or other unforeseen events that affect investor confidence in the currency. In some cases, collapses are caused by speculators who create artificial demand for coins before selling them off abruptly when prices reach their peak.
When a collapse occurs, it’s important to remain calm and not panic-sell your holdings as this may further drive down prices allowing traders with bigger wallets to take advantage of the situation. Instead you should focus on understanding what had caused the crash so that you can make an informed decision about whether or not investing again would be wise at this point in time.
It’s also important to keep abreast with news related to cryptocurrencies as well as any development within its industry; these developments could help provide insight into potential future trends which could lead one towards being better prepared if another collapse were ever to occur again
