Let's discuss and try to rationalise just what on Earth is going on with Bitcoin and with that much of the rest of Cryptocurrencyland bar a lucky few tokens... Something Is Very Wrong With Bitcoin And Exchanges During Corrections.

Logic time and our friend, Bitcoin.. the highly volatile and wildly unpredictable cryptocurrency that has been on a rollercoaster ride for the past few years. From skyrocketing to dizzying heights to plummeting to new lows, Bitcoin has been all over the place. And while many people love to speculate about what's causing these fluctuations, one thing is for sure - something is definitely wrong with cryptocurrency exchanges and trading.

Let's talk about these Bitcoin corrections in layman's terms and easy to understand. Essentially, a correction is when the price of a particular asset has increased beyond its actual value and is due for a fall. Investors call it a necessary evil, but for the everyday person watching their savings evaporate in a matter of minutes, it's a nightmare.

When Bitcoin experiences a correction, it means that the price has been inflated beyond its true value due to market speculation and hype. The correction is a reset back to a more realistic value and such fluctuations have been the norm rather than the exception for Bitcoin since its inception... feels like a scam? Welcome to the world of not being quick enough (especially the manual traders who call asleep at the wheel, listen good)...

But here's the curious thing. Whenever Bitcoin experiences a correction, it recently especially, seems to cause a dip in its valuation. Why is that? One would think that the price would simply reset to a more realistic level and stabilize without much fuss. But oh no, the crypto world doesn't work that way, my friends... not in the slightest, and you need to be ready for absolutely anything.

It niggles it really does but one problem lies with cryptocurrency exchanges and trading. You see, the value of Bitcoin and other cryptocurrencies is heavily tied to supply and demand. And when a correction happens, traders and investors want to quickly sell their assets before the price drops too low. This leads to a massive decrease in demand and an oversupply of Bitcoin. And when supply surpasses demand, prices inevitably drop... Cry scam... and the average Noob usually does! 

Now as you become a more experienced trader, you well might be think, "well that doesn't seem too problematic" - but let me tell you, it can get much get worse. Cryptocurrency exchanges have in the past been quite notorious for being unregulated and some unreliable. The less tech savvy exchanges are often prone to glitches, hacking attacks, and outages during periods of high demand and trading volume... often we see the bigger exchanges experience these occurrence also. This means that when Bitcoin experiences a correction, people rush to sell their assets on exchanges that are already struggling to keep up with demand. The result? Pandemonium, chaos, and a whole lot of angry people... to us Bulls and the majority of Whale's Hodling, it's a slap in the face... to the Bears... they love it... I am not a huge fan of Bearish behaviour.

I do have to be fair and point out that it's not just the exchanges that are at fault here. The hype and speculation that surrounds Bitcoin are also very much to blame. Social media platforms like Twitter and Reddit are flooded with posts and memes encouraging people to "HODL" their Bitcoin (be a Bull), claiming that it will only increase in value in the future... Yes it is correct to HODL, but the problem with this approach is that it that the inexperienced Bull fails to account for those Bitcoin corrections. In reality, Bitcoin is a highly volatile asset, and corrections are an inevitable and necessary part of its price discovery process... this is where watching the Blockchain for high amounts in withdrawal transactions at a price peak, can help you determine Bear behaviour... in my opinion if you have to reinvest after selling at a slightly higher price - it's better than losing it all yes? You could be patient and wait for the inevitable dip... your own call and risk, your Fear, Uncertainty and Demand (FUD) come into play here. 

What would I say is the solution? In my opinion there aere no easy answers, unfortunately. Cryptocurrency exchanges need to invest in better infrastructure in their ecosystems in order to handle periods of high demand and prevent outages. Investors and traders need to be better informed about the risks and realities of investing in Bitcoin, instead of blindly following hype and speculation. And as a community, we need to have more level-headed discussions about the future of cryptocurrencies, rather than simply blindly speculating and hoping for the best... I feel an Alert System would benefit the investor... but would not play well with Exchanges and their ruthless non-transparency tactics during a price correction period... we all know it happens.

Now I don't know about you... but I personally feel that something is most definitely wrong with cryptocurrency exchanges and trading during correction periods, and the fact that Bitcoin corrections always cause a dip in valuation is just one symptom of a larger problem. It's time for the crypto world to grow up, mature, and start taking these issues seriously. Until then, the rollercoaster ride will continue, and our wallets will be left feeling a little queasy... Period!