On Tuesday, the price of Bitcoin fell below $30,000 for the first time since January. It fell to $29,031 on June 22. This is despite the fact that the cryptocurrency reached a high of over $60,000 in April this year. This has spurred a reaction from experts and skeptics who are now concerned about the future of the entire cryptocurrency industry.
This trend has been typical of Bitcoin, but this last move has really brought people back to the drawing board to investigate further where the future is going. Since this drop has come when the effects of the pandemic are slowly easing off. This makes the investors worried. Many people were expecting better days now that the harsh realities of the pandemic and its effect on the economy were slowly going down.
The Butterfly Effect and the future of Cryptocurrency
Investment experts and financial advisors have advised people not to invest large sums in cryptocurrency in the coming days because of the impending further drop in the price of BTC.
This drop is to be expected for individuals who invest in crypto for the long run using the buy-and-hold approach. Many financial advisors recommend keeping investment to less than 5% of your portfolio. That way, whichever way the economy swings, your assets will be safe.
But some die-hard investors in crypto insist that, just like other long-term investments, you should simply invest and forget it for a long period of time in order to get some value from it. There could be too much riding on your crypto investment if you’re bothered by such a sharp loss. It’s best to invest only what you are comfortable losing.
Though you may be considering your crypto allocation due to the recent dip, don’t act hastily or change your plan too quickly. In the future, you could be more comfortable committing less to crypto or diversifying your portfolio through crypto-related equities and blockchain funds rather than directly purchasing crypto, so think about your options. Although, that said, expect some fluctuation soon.
Checking on the BTC prices frequently is not necessary. The best thing to do is to let it flow. Don’t let your emotions get in the way of your decisions. Emotions will often lead you to make a bad judgment and sell at a bad time. It is important to keep your cool.
Should You Invest in Cryptocurrency Now?
This is a very personal decision. But if you need valuable advice, you should ask a professional financial advisor. This is because the decision to invest in a crypto is dependent on many other aspects of your finances. You have to consider many other factors before you decide to take a leap into the crypto world.
The golden rule of crypto is to set it and forget it. If you can afford to do that, then it is safe to say that you are on the right track with crypto investment. Some analysts believe that cryptocurrency is too distinct from regular investment to draw historical similarities. Many are afraid of the wild swings that BTC takes because the concept of cryptocurrency is still new and there is no trackable data for it.
Investors who are interested in buying Bitcoin during the dip should be aware that variations are normal and should be prepared for this type of volatility in the coming years. Invest now, while prices are reasonably low, but be prepared for them to fall considerably further in the next months and years. Again, only invest what you are willing to lose after you have taken care of other financial obligations, such as food, emergency savings, and your retirement plan.
This trend has been typical of Bitcoin, but this last move has really brought people back to the drawing board to investigate further where the future is going. Since this drop has come when the effects of the pandemic are slowly easing off. This makes the investors worried. Many people were expecting better days now that the harsh realities of the pandemic and its effect on the economy were slowly going down.
The Butterfly Effect and the future of Cryptocurrency
Investment experts and financial advisors have advised people not to invest large sums in cryptocurrency in the coming days because of the impending further drop in the price of BTC.
This drop is to be expected for individuals who invest in crypto for the long run using the buy-and-hold approach. Many financial advisors recommend keeping investment to less than 5% of your portfolio. That way, whichever way the economy swings, your assets will be safe.
But some die-hard investors in crypto insist that, just like other long-term investments, you should simply invest and forget it for a long period of time in order to get some value from it. There could be too much riding on your crypto investment if you’re bothered by such a sharp loss. It’s best to invest only what you are comfortable losing.
Though you may be considering your crypto allocation due to the recent dip, don’t act hastily or change your plan too quickly. In the future, you could be more comfortable committing less to crypto or diversifying your portfolio through crypto-related equities and blockchain funds rather than directly purchasing crypto, so think about your options. Although, that said, expect some fluctuation soon.
Checking on the BTC prices frequently is not necessary. The best thing to do is to let it flow. Don’t let your emotions get in the way of your decisions. Emotions will often lead you to make a bad judgment and sell at a bad time. It is important to keep your cool.
Should You Invest in Cryptocurrency Now?
This is a very personal decision. But if you need valuable advice, you should ask a professional financial advisor. This is because the decision to invest in a crypto is dependent on many other aspects of your finances. You have to consider many other factors before you decide to take a leap into the crypto world.
The golden rule of crypto is to set it and forget it. If you can afford to do that, then it is safe to say that you are on the right track with crypto investment. Some analysts believe that cryptocurrency is too distinct from regular investment to draw historical similarities. Many are afraid of the wild swings that BTC takes because the concept of cryptocurrency is still new and there is no trackable data for it.
Investors who are interested in buying Bitcoin during the dip should be aware that variations are normal and should be prepared for this type of volatility in the coming years. Invest now, while prices are reasonably low, but be prepared for them to fall considerably further in the next months and years. Again, only invest what you are willing to lose after you have taken care of other financial obligations, such as food, emergency savings, and your retirement plan.
