Is Now the Best Time to Buy Crypto?
It’s the question most investors have been asking themselves:
Is it a good time to invest in cryptocurrency right now? The answer to that question is going to depend on whether or not you think cryptocurrency will be around in the long run or for the long term. If this is the case, and you are thinking of investing in crypto for the long term, then I would say that now would be a good time to make a purchase.
Basically, the best moment to buy an asset class is whenever we have the opportunity to do so at a price that we believe is below either its long-term viability, its long-term fair market value, or its long-term value as an investment.
Which option appeals to you more: purchasing an iPhone at its full retail price or getting a discount of fifty percent? Everyone would say that they would rather buy something at a 50% discount. It is exactly the same as when dealing with investments. At this very moment, the value of bitcoin has suffered a very significant setback. Would it be able to withstand another blow? Absolutely, without a doubt, and the odds of that happening are certainly in your favor. Having said that, if you want to store Bitcoin for the next ten years, buying it now could be a very wise decision because it will likely be worth much more than it is right now.
You simply need to understand what you anticipate it to be in the future. For me? I am currently purchasing it at a fantastic discount.
How to Invest in Crypto for the Long Term?
Crypto investing should be approached with a long-term perspective. In the short term, cryptocurrency is prone to massive price movements.
Speculators who do not have a long-term time horizon take on significant risks as a result of the crypto markets' increased volatility. If an investor can hang onto their cryptocurrency for an extended period of time, they will be able to weather the storm of short-term price declines as long as the underlying asset is valued and will survive a bear market.
The potential for gains (and losses) is significantly bigger with short-term trading. According to some observers, the distinction is between gambling and investing. The former has a higher potential for gains in the short term but is significantly riskier. Of course, with higher potential comes greater risk. It is vital to note that the great majority of Bitcoin investors have lost money this year.
Which Cryptocurrencies Fair the Best?
The largest cryptocurrencies will probably withstand the storm the best, similar to blue-chip stocks. The closest thing to a recognized record are these coins.
-Bitcoin: Aka the biggest cryptocurrency in the world, is the safest bet in the current bear market doesn't come as a surprise to anyone. It still has a market cap of $396 billion, and public companies hold it on their balance sheets. Institutional adoption has been growing, and it now has a place in the main financial markets.
- Ethereum: has become the most popular smart contract blockchain, which is the foundation of a decentralized economy. Nearly 60% of the market is made up of Ethereum and Bitcoin, which are very volatile and risky but have been around the longest.
- US Dollar Coin (USDC). With markets falling everywhere, this stablecoin, which is based on the U.S. dollar, has been one of the most popular crypto refugees this year.
Investing with Vincere Wealth:
One of the best ways to stick to a plan – use your accountability partner. We are here to help you through those emotional times! They can, will, and do come. It's inevitable. We have a disciplined strategy for investing your money. We do our best to protect you during emotional times.
- If you get scared of the markets – don’t do anything rash. Call us.
- If you feel a greedy need to get in a hot stock – don’t do anything rash. Call us.
- If you are having trouble sticking to the process – Call us.
If you are not sure what your strategy is or how to stick to it, we are happy to build it and start it with you.
I hope this information was helpful. If you have any questions, feel free to reach out. I’d be happy to chat with you.
About the Author
As Managing Partner of Vincere Wealth, Josh assists clients in navigating financial challenges and making sound financial decisions. Having someone guide you in making sensible financial decisions today can have a substantial impact on your future financial wellbeing. Josh takes great pride in guiding customers through the complexities of taxes, real estate, businesses, employer stock, and international financial planning.
If you're interested in an investment advisory or financial planning relationship, please consider Vincere Wealth Management.