Cryptocurrency Price: Pros and Cons of “Buying the Dip”
The quintessential question that arises in any cryptocurrency bear market is whether or not to buy the dip. 2018 has seen prices go on an extended steady decline and many experts argue whether or not to buy virtual coins in the hops of another significant price rally.
Likely Reasons to Invest in the Cryptocurrency Market
“Buy low sell high” is a basic trading aphorism. With cryptocurrency prices significantly down from their all-time high (ATH), traders stand the chance of making huge gains should a price rebound occur but only if they get into the market now. Crypto cynics have pronounced the end of the digital currency lots of times, and have always been wrong.
The possibility of a massive bull run exists if the SEC finally approves a Bitcoin ETF. When Bitcoin futures emerged in December 2017, BTC price surged to an ATH of $19,700 in a matter of days. A BTC ETF could see an even greater price surge. So far, the SEC has been reluctant in approving any BTC ETF filing, as seen in the VanEck ETF decision. However, bullish attempts are being made to get the regulatory body to change its mind. If you still believe in the possibility of a BTC ETF, then it’s only a matter of time.
Bitcoin could be this decade’s Amazon. Not many expected the tech behemoths of today to be this, especially after the dot-com bubble burst. The crypto prices might be bearish at the moment, but the digital currency is not just a fad. The nascent technology has a place in the future. Another reason to invest is that a lot of financial experts are investing in the digital currency. That gives the currency some credibility, and it shows you know what you are buying.
It Could All End Badly
The bears are ruling at the moment, as crypto prices have continued to descend. August isn’t faring any better, as the cryptocurrency market lost $43 billion in five days. As volatile as the market is, it will be costly holding on through the big dip. Investing in the digital currency isn’t the wisest of financial decisions to make presently.
Holding on to your coins can cost you if you aren’t careful. Malware, loss of private keys, sending coins to the wrong wallet, can make you lose your coins for good. It’s advisable to sell now than lose all your cryptocoins for nothing later.
Exit ICO scams are the order of the day, and the probability of landing on one is 80%. Recently, investigations showed that about $100 million had been lost to ICO exit scam. The safest way to go is to sell the digital coins in your wallet.