Getting to Know of Suspend in Crypto and What is the Impact for Investors?

Bittime – When entering the crypto ecosystem, suspend is a term that you should not miss learning. The reason is, suspending is important because it must be avoided.

Why is that? This article will explain in more detail about suspensions in crypto and how they impact you if you are suspended when investing in crypto. Understand until the end, okay?

What Is Suspend in Crypto?

Suspend in the world of investment, especially crypto, refers to the temporary suspension of trading in a digital asset. This means investors cannot buy or sell the asset during the suspension period. The decision to suspend is usually taken by the crypto exchange or relevant regulator.

Why does suspension occur? Some common reasons for suspension are:

• Extreme market volatility: When the price of an asset experiences very large fluctuations in a short period of time, exchanges may decide to temporarily suspend trading to maintain market stability and protect investors.
• Technical problem: Technical glitches in the trading platform or blockchain network may result in temporary suspension.
• Regulatory investigation: If there are allegations of regulatory violations or market manipulation, regulators can order exchanges to stop trading in the relevant assets.
• Material announcement: Important news that can significantly affect the price of an asset, such as a corporate merger or surprising financial audit results, can also trigger a trading suspension.

Read Also: BlackRock Ethereum ETF (ETHA) Sees $900 Million in Flows

Factors That Cause Suspend in Crypto

Some of the factors causing suspension in crypto are:

• Market Volatility: Extreme price fluctuations in a short period of time can trigger panic in the market and lead to disorderly trading.
• Technical problem: Disruptions to the trading platform or blockchain network may disrupt trading activities and cause temporary suspension.
• Regulations: Regulatory changes or investigations by regulators may result in the suspension of trading in certain assets.
• Market Manipulation: Market manipulation activities carried out by certain parties may trigger trading suspensions to protect investors.
• Cyber ​​Crime: Cyber ​​attacks against crypto exchanges can cause system disruptions and trading delays.

How Long is the Suspend Period in Crypto Investments?

The suspension period varies greatly and depends on the cause. Some suspensions only last a few hours, while others can last days, weeks, even months. Several factors that influence the duration of the suspension include:

• Problem severity: Minor technical issues may only take a few hours to fix, whereas investigations into suspected market manipulation may take much longer.
• Respon regulator: If regulators are involved, the duration of the suspension will depend on the speed and efficiency of their investigation.
• Problem complexity: More complex issues, such as large-scale cyberattacks or significant regulatory changes, take longer to resolve.

Sanctions when Suspended in Crypto

Investors affected by the suspension generally will not experience direct sanctions. However, they will lose the opportunity to trade during the suspension period.

If the suspension occurs for a long period of time, it can lead to opportunity losses, especially if the asset price moves up during that period.

What Should You Do If You Get Suspended in Crypto Investments?

Several things that need to be done when suspended when investing in crypto are as follows.

• Stay calm: Avoid panicking and making impulsive decisions.
• Monitor News: Stay up to date with news related to the assets you own and the exchanges you invest in.
• Contact Exchange: If you have any questions, contact the exchange's customer service for more information.
• Portfolio Diversification: Spread your investments across different assets to reduce risk.
• Consider Alternatives: If you feel uncomfortable with the situation, consider selling your assets once the suspension is lifted.

Read Also: Investors' "Buying the Dip" Phenomenon when Crypto Falls

Conclusion

Suspension in crypto investment is a common thing. Even though it can disrupt trading activities, suspension is usually done to protect investors' interests and maintain market stability.

As an investor, it is important to understand the reasons for the suspension, the possible duration, and the steps that can be taken to anticipate and overcome the situation.

Always conduct thorough research before making an investment decision and consider consulting a financial professional if necessary.

How to Buy Crypto on Bittime

You can buy and sell crypto assets easily and safely via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also ensure you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Study Complete Guide How to Buy Crypto on Bittime. 

Monitor graphic movement of Bitcoin (BTC) price, Ethereum (ETH), Solana (SOL), and other cryptos to find out today's crypto market trends in real-time on Bittime.