Is Now the Right Time to Invest in Crypto?

Cryptocurrency, commonly referred to as crypto, is not a new word for many. If you're curious about it, you're in the right place.

It is a digital currency that uses cryptographic capabilities to ensure safe transactions. There are more than a hundred cryptocurrencies, but four of those are the most common. These include;

● Bitcoin developed in 2009

● Ripple(2012)

● Litecoin(2011)

● Ethereum(2015)

Other Non-Bitcoin cryptos are commonly known as "altcoins." This is to help people decipher them from the original.

Is Now The Right Time To Invest In Crypto?

Yes, it is, especially now when the crypto market prices are low. However, before investing, you must evaluate your risk tolerance and have cleared other personal finances, such as paying off high-interest debts and saving up for retirement.

Experts say that crypto, such as Bitcoin, is currently on discount and undervalued at $20,000. Leading companies like JPMorgan recently placed the coin's value at $38,000.

One key thing to know before investing in crypto is that the market is usually highly unpredictable, making it pretty volatile.

Why Now Is The Time To Invest In Crypto?

Investing in crypto is a great idea since the latest crypto market meltdown, and prices have increased slightly. Due to this, they could climb substantially more soon, giving investors who know when to enter and exit the enormous market rewards.

Jurrien Timmer, the director of global macro at Fidelity Investments, predicts that the fair market value of bitcoin will be between $40,000 and $50,000 in two years, with a potential value of up to $100,000.

Further, senior market analyst at D.A.'s Chris Brendler revealed that by the end of 2022, the coin could shoot to roughly $38,000 and $50,000 by 2023.

Is “Buy the Dip” a Good Strategy?

Yes, it is. The goal of buying the dip is to bring down the average current price gradually. This technique maximizes the long-term probability of lowering the average price over time. It is meant to decrease expenses while enhancing returns.

There are times when purchasing the dip outperforms dollar-cost averaging, especially if a country is going through an economic crisis, so Bitcoin could be the perfect asset in a recession.

However, an investor who sets a high threshold for the dip may have problems in a bull market. The investor will keep holding cash on hand without investing it. This is especially true if the market doesn't decline by the predetermined threshold.

Which Cryptocurrency Is Best To Invest In Right Now?

Bitcoin should be at the top of every list of the best cryptos to buy because it is a must-have investment for anyone wishing to dangle their toes in this asset class. The first cryptocurrency with the most excellent market capitalization, Bitcoin, was created in 2009; as of early September, BTC alone accounted for 39% of the market.

Also referred to as "digital gold," it derives value from its rarity and long history of serving as a store of value. Only 21 million Bitcoins will ever be created, and 19.1 million are now in use. By August, Bitcoin retreated under the $20,000 threshold as the general market saw a sell-off.

Even while some detractors claim that Bitcoin's golden age is over, new trusts and exchange-traded funds that track the asset are emerging, and it's doubtful that BTC will ever disappear until the entire asset class burns to the ground.

Will Crypto Rise Again?

The crypto market was terrible during the early months of 2022. Since their all-time highs in late 2021, ETC and BTC prices have reduced by more than 50%.

Despite some slight gains recently, the crypto market as a whole is mainly stagnant. Although no one can be certain, several experts believe cryptocurrency values may fall considerably further before a sustainable rebound.

In 2021, the price of bitcoin reached several new all-time highs, followed by significant declines and increasing institutional investment from significant firms.

The second-largest cryptocurrency, Ethereum (ETC), also reached a new all-time high in late 2018 before falling to its lowest point since the beginning of 2021 in June, below $900. The US government and the Biden administration have shown a growing interest in new cryptocurrency legislation.

Conclusion

Similar to regular currencies like the USD, a cryptocurrency is a means of exchange, but it was explicitly created to exchange digital data. With the digital era growing by the day, being part of this trend will prove worthwhile in the near future.

However, we might have different speculations about the potential value cryptocurrencies may hold for investors in the months and years. However, the truth is that this type of investment is still very new and speculative, with little historical data on which to base projections. Whatever a particular expert may believe or claim, nobody truly knows.