Bear markets can be scary places, especially for new investors. If you started following cryptocurrencies
back when the only way was up, it must be pretty sobering to watch what’s happened over the last few months. However, bear markets are also an excellent opportunity for investors who are willing to take a few risks. The right decisions now could mean that you find yourself onboard the next fast rising cryptocurrency. In this article, we’ll take a look at what that might be.
This might sound like a strange recommendation given the performance that Bitcoin has achieved in recent weeks but hear us out. Bitcoin’s market penetration means that it is used both as a store of value (like gold and other precious metals) and a means of exchange (like the US dollar or other conventional currencies). This means that it plays two roles in the market which should increase demand for it among investors. This will become even more important as the Bitcoin algorithm begins to limit the supply of the currency that can be created. As this becomes more finite, it will be even harder for investors to get hold of the currency that they want, further driving up the price.
This cryptocurrency is enjoying some serious backing from major players in the financial sector, which should increase its value in the coming months and years. Ripple has a great chance of becoming a common means of exchange in the future (it’s already being used as an alternative to conventional currencies by some major banks) which should ensure a healthy demand far into the future. It’s also relatively easy to invest a small amount in Ripple at the moment, making it a fairly safe call for novice investors.
Bear markets are an excellent time to start investing if you know what to look for. Choose wisely and you could be in for some serious profits.
Source: https://www.youtube.com/watch?v=domJCSZs-co - Great Video By Louis Thomas
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