Many investors are unsure whether cryptocurrency is still a wise investment to make in light of the declining trend of cryptocurrencies since the month of June this year. Even the possibility that cryptocurrency will ever regain its former splendour is contested. Know more about Immediate Edge by clicking here.
Despite a few minor gains, the overall state of the cryptocurrency market hasn’t changed much in recent weeks. Several experts believe that before experiencing a sustained recovery, the value of cryptocurrencies may drop even further. However, nobody can be certain of this.
Many new all-time high prices for bitcoin were attained in 2021. A sharp decline in price and an increase in institutional investment from big companies were then experienced in response to these high prices. Late last year, Ethereum, the second-largest cryptocurrency, also reached a new high. But in June, it fell below $900, which was the lowest point since the beginning of 2021.
Is buying in the dip a good strategy?
Many investors believe that they should invest when the value of cryptocurrency falls down or when there is a dip in the market.
Prices may drop further, leaving your investment in the red, or they may return to where they were.
If history is any guide, this crash may recover similarly to the one that occurred the previous year, when prices fell to a comparable level before recovering to their pre-dip levels and even peaking in the fall, even though it’s possible that they won’t.
Owning some cryptocurrencies can help you diversify your portfolio due to the historically low price correlations that they have had with the American stock market, such as Bitcoin.
Make sure you have a plan for investing that explains why each cryptocurrency you choose to buy will stand the test of time. There are numerous websites available online for researching the cryptocurrency market; one such website is Bitcoin Era. There are many platforms ready to provide you with an easy-to-explore crypto market, but there are certain key parameters that should be on your radar when it comes to investing in it. Here are some of the key aspects that you should be considering:
- The clauses
- Payment medium
- Transaction fees
- Withdrawal fees
- Customer support
These key pointers will help you shortlist the best option and will ensure that you trade safely. Make sure that you never make the decision in haste and invest only after thoroughly understanding how the crypto market operates.
Should a person hold or let go of the cryptos?
For those who have already invested in the crypto market, there is no guarantee that the market will bounce back any time sooner. However, in the long run, the situation can show promising results.
The year 2022 may not be a good time for investing in the crypto market, but in the year 2023, things could turn towards a positive trend. Experts say that it’s expected to see many financial institutions accepting cryptos for payment and settlement of transactions. Many firms are now using blockchain technology to make faster payments across borders.
Cryptos and blockchain technology as a whole is still evolving, and their growth in financial institutions is picking up pace rapidly. Recently Mastercard announced to experiment with the introduction of plans to make cryptos a regular payment method.
The tech giant Google, too, is looking for ways to get into the crypto market space. Recently, it announced a collaboration with Coinbase, and it is working on a project to offer customers crypto payment options for its cloud services. The project can be introduced to the public as early as next year.
With the coming of big players in the market, experts are still optimistic about the future of cryptocurrency. It is predicted that more and more financial institutions and businesses will join the cryptocurrency and incorporate the blockchain as their fundamental finance facilitator.
One thing has been constant. Any cryptocurrency investment is still quite speculative because the end-user case hasn’t been established. Currently, speculation has gone out of style as everyone seeks safety from the impending recession. When others are afraid, people who still have money to spend might be enticed to purchase Bitcoin, but as always, only invest money if you can risk losing.