It’s a bear market out there. Trends are generally downward, although signs point to upward movement soon. So now could be a great time to buy. But to buy what? If you were to follow the patterns of 2017, you might think that there’s no question about where to invest your money. Altcoins performed significantly better than Bitcoin in terms of return on investment, and there seems to be an assumption that as some alt-coins have dropped 90%, they can drop no further. Whereas Bitcoin’s average correction of 70% seems to indicate it could drop again, leaving the investor out of pocket. But there are other factors to take into consideration.
If we look at the previous ‘bubbles’, there are altcoins that were popular that are now completely worthless. Hanging on to your altcoins might seem like the smart thing to do, but there’s no guarantee that they will even exist by next year. Your favourite altcoin might have corrected by 90%, and you might think that’s a great time to buy. But unless there’s clear evidence of a predicted upward trend, that altcoin could fall even further, all the way to zero.
The other thing to be aware of is institutional investment. Blockchain technology is starting to have some real-life applications, and as more and more companies realise that, we’re starting to see money flowing from big business into cryptocurrencies such as Bitcoin. Other coins that are likely to see this investment are Litecoin and Bitcoin cash, and possibly Ethereum, though the SEC has raised security questions around transactions.
There’s never any guarantee that the market will continue to follow historic patterns, so there’s always an element of risk. Investing in Bitcoin would seem to be the smarter option, with technology giants all turning their heads towards the blockchain solution. Stay alert, read the news, and best of luck out there in the bear market.
As a key writer for Crypto Daily, Nathan’s role entails the creation of cutting edge news articles, reviews, press releases and general content creation. Nathan’s stories strive to include the most up-to-date cryptocurrency news and affairs, contributing to Crypto Daily’s growing network. Nathans previous experience as a researcher ...