The cryptocurrency market has been particularly volatile in the last year, with prices rising to all-time highs and plummeting to all-time lows. With the stock market on shaky ground and a recession potentially on its way, it doesn’t appear that this volatility will abate any time soon.
Despite the ups and downs, now may be a good time to get involved in cryptocurrency. If you’ve been hesitant about investing, there are two compelling reasons to consider buying right now, as well as one reason to avoid cryptocurrencies entirely.
Why you may want to invest right now
When the market is in a slump and cryptocurrency values are plummeting, it may appear to be the worst time to invest. downturns, on the other hand, might be one of the most cost-effective times to invest.
Cryptocurrencies are expensive to invest in. Bitcoin’s (BTC 3.72%) highest price was around $70,000 per token, whereas Ethereum’s (ETH 8.64%) peak was slightly lower at $4,800 per token. Currently, they are selling for $24,000 and $1,700 per token, respectively.
If you’ve ever considered investing in cryptocurrency, now might be the moment to do it. The price of cryptocurrencies has decreased significantly from their all-time highs, and if they reach those levels again, you may make a lot of money by investing right now.
The ups and downs of cryptocurrency are exceptionally volatile, and downturns can be difficult to accept. However, the long-term performance of an investment is more significant than its short-term gains and losses.
Those who have kept their investments for the long run have historically received outstanding returns. Despite its price plummeting by more than 50% since the start of the year, Bitcoin is up approximately 576% over the past five years.
Nobody can predict whether cryptocurrencies will ultimately flourish. But if crypto does succeed, you may see significant gains by investing immediately and keeping your assets for the long term.
When it’s better to steer clear
Cryptocurrencies might be an extremely lucrative investment for some people, but it isn’t right for everyone. Because the sector is still very speculative today, it may be quite hazardous; and there’s always the chance you’ll lose all of your money.
It might be difficult to take such a chance, especially if your funds are limited. If you have just a little cash to invest, it may be prudent to concentrate on equities, indexed investments, ETFs, or other “safer” assets before making your crypto purchase.
Even if you can manage it, not everyone wants to undertake a high-risk investment; it’s fine. Everyone has their own investing style. It may not be the greatest fit for your portfolio if you’d be sleepless over the ups and downs all of the time.
While crypto is a high-risk/high-reward investment, patience might pay off in the long run. While it isn’t suitable for everyone, if you’re prepared to take on greater risk for potentially lucrative profits right now may be a great time to invest.