How’s not a bad time to think about investing, the market is going down and is about 30-40% lower than in March, psychology makes people want to invest in a rising market, where in reality real money is made when buying in a down market, another mistake that people make is that they read of all the headline making stories and think it’s going to make them instantly rich.
of course crypto is notoriously volatile and big gains and losses can be made in a short period of time, but you need to look at it in a longer time frame, after all you wouldn’t buy apple shares and expect to sell them a month later at a huge profit. There are several coins out there that have great potential, I quite heavily invested in some and am sitting here with more funds to throw in, just watching the drop at the moment and waiting for the right time., I’m looking at a time scale of anywhere between 1-3 years depending on the market to see some real gains. But it’s crypto so who knows, there’s many expecting large gains towards the end of the year, others are sayin 3 years.
My 5 cents worth:
There is a saying for property investing in my country that the best time to invest was 10 years ago. The second best time is now.
The difference with crypto currency is it is not a traditionally tangible asset or a historically safe asset. And imo it should not be compared to them.
You have the chance to make great gains relative to traditional investments but also a chance to loose a lot of money. Anyone that tells you otherwise is ignorant or telling you half the story.
As an example you can easily have a situation where governments ban the currency around the world or servery diminish it's benefits. While there will be a place for crypto it may not be as valuable. People forget historic bubbles of the past. Not to mention the amount of 'free' stimulus money floating around at the moment is crazy - further inflating asset prices.
Bitcoin is not going to disappear in the short-medium term as more and more funds are looking for exposure to bitcoin but only in very small percentage terms because of the inherent risks. IMO this is all about risk vs return, if your matrix leans towards taking then risk go for it. But the idea this is a safe investment is wrong. Gains are not guaranteed, even if you hold.
I really take an issue with the media first drumming up crypto and then scaring off retail investors. Many mum and dad investors are loosing money hands over fists as they panic and sell on every dip.
Not only because they are misinformed but because they are most likely over exposed.
The way i play it is traditionally my investment portfolio had about 20% high risk exposure. This was my risk matrix i was comfortable with. I have invested half of that into crypto over the last few years.
I was happy to loose that 10% or let it run. As i like to balance my risk I already cashed out my initial investment and will let gains run. I will not invest anymore income into it for now either - prefer spending it on myself.
But the stories i hear of people selling their homes to buy Bitcoin are just ludicrous.
Nothing is guaranteed in life my friends, that is besides death and taxes.
Maybe one caveat here, something that has always worked for me - human psychology can often be relied upon and i find the best time to trade is actually when it involves more retail traders. While i can't agree with the way it happens and feel for the people that loose out. From a purely objective perspective, when your talking gains it is a great time.