Helping You Build Wealth With Honest Research
Since 1996. Try Now


Invalid Username / Password
Invalid Captcha
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Is it a Good Time to Invest in Crypto?

Baron Rothschild of the Rothschild banking family once said, "the time to buy is when there's blood in the streets."

Well, at the time of writing this there sure is a bloodbath in the cryptocurrency markets (July 2022). Bitcoin has slumped over 70% from its all-time high in November 2021 while others like Dogecoin and Binance Coin have crashed as much as 90%

Should investors take advantage of the crash and invest in cryptos?

Well, the one factor that should not influence your decision is the price. Crypto markets are highly volatile, so buying cryptocurrencies at any price is risky.

Rather, one must first believe in the idea of the technology and if you can foresee a value for cryptocurrencies in the future, then investing in cryptos at a low price could be a great opportunity.

Instead, one should have a clear goal for buying cryptos. It could be seeing cryptocurrencies as a store of future value, viewing it as a hedge against inflation or wanting to own it based on the assumption that cryptos will be universally adopted over time.

Experts caution against investing in small cap cryptos as they are susceptible to deep price corrections and many of them may not survive the current crash.

Investors should look at the promoters’ background, high liquidity, real-world use cases, technology and market adoption before choosing to invest.

If we were to look at historical prices, the price of bitcoins had crashed 83% in 2013 and as much as 84% in 2017.

With the current crash having wiped off over 70% already, some proponents might argue that there is limited downside from here based on previous history.

Finally, there hasn't been a continuous 4-year holding period wherein Bitcoin returns have been negative.

Investors should however expect that cryptocurrencies will continue to be volatile as this new asset hasn’t been tested previously in an environment like the one, we are seeing currently where interest rates are set to rise.

It would be prudent to use dollar-cost averaging to minimize the impact of volatility and increase returns.

3 Red Hot Megatrends of 2024 to Invest in

Jan 3, 2024

Seeking El-Dorado amid all the hype.

The Big Bitcoin Rally. Why it Could be the Start of Something New

Dec 7, 2023

With over 70% of all bitcoin supply sitting dormant for a year, the momentum is surely building up.

Are You Following Financial Influencers? Read This...

Oct 4, 2022

In the age of finfluencers, 'viewers beware' is a caveat you should not ignore.

I'm Calling the Bottom for Cryptos

Jul 20, 2022

Have crypto prices bottomed out? Find out...

10 Things to Know About the Vauld Debacle

Jul 7, 2022

Everything you need to know about the credit crisis at Vauld, a crypto startup.

Why Cryptos are Falling

Jun 22, 2022

Crypto markets are trading deep in the red. Read on to know why and when they can bounce back.

Crypto Crash: Crypto Markets Lose US$830 bn Within 6 Weeks

May 10, 2022

In the last 6 weeks, the crypto market has crashed 40% and is one of the top wealth destroying asset classes.

Blockchain Technology: 5 Indian Companies to Add to Your Watchlist

Feb 17, 2022

While cryptos draw polarising opinions, their underlying blockchain technology has found favour.

Is Bitcoin the New Gold?

Jan 19, 2022

Goldman Sach's latest research report states that the widely popular cryptocurrency has the potential to cross the US$ 100,000 mark in coming years.

Charlie Munger: This is "Even Crazier" than the Dotcom Era

Dec 3, 2021

Is the investing legend's pessimistic view on the stock markets justified?

5 Assets that Could Beat Inflation in 2024

Dec 26, 2023

What are the best investments that could hold their value in 2024? Find out...

Nithin Eapen on the Big Crypto Opportunity and Scams

Nov 26, 2022

Nithin Eapen, who also goes by the name of CryptoSwamy, is the go to person for all things crypto. Including Crypto blowouts annd scams.

The Megatrends I Like the Most... And Stocks that are Riding Them

Sep 13, 2022

A lot of print space and prime time is wasted on predicting macros and cycles and taking cues from it to pick stocks. This is a complicated exercise that no one has been consistently good at.

Cryptos: Frauds, Scams and Influencers

Jul 9, 2022

Everything you need to know about the Crypto Queen, Vauld debacle and other crypto scams and frauds. And yes, also the role of influencers.

The 4 Craziest Predictions about Cryptos

Jun 24, 2022

An investment like a Bitcoin should not be where you park your maximum savings. They should be the high risk-high return part of your overall corpus.

Crypto Crash Destroys US$ 830 bn

May 11, 2022

This is why crypto currencies are falling.

5 Brilliant Insights from a Former Trillion Dollar Fund Manager

Apr 11, 2022

Bond King Bill Gross on things ranging from crypto to inflation to tech investing

What Next for Bitcoin? Poll Suggests a 50% Crash

Jan 24, 2022

Rising interest rates have prompted investors to write-off their positions in riskier assets like cryptos.

Why Value Investors Hate Bitcoin

Dec 30, 2021

Have you wondered why value investors like Charlie Munger hate bitcoin? Find out...

Early Bitcoin Investor: Most Traders Lose Money

Nov 16, 2021

The creator of one of the world's first crypto indices weighs in on Bitcoin and what's next in the world of cryptos.