If you came into cryptocurrency sometime at the end of the last year you are likely very upset about the current positions of your portfolio. It’s been a grueling few months, and some are asking themselves if the market will ever recover. Likely, I would be in the same boat if I had not experienced similar circumstances before.
The truth is that financial markets go through cycles. Not even the stock market is immune, and investors experience similar woes in traditional investment vehicles toward the beginning of the new year as well. When analyzing your crypto investment you should keep this in mind, and remember that real, long term growth takes patience.
Look at the past to see the future
If you look back in cryptocurrency history you’ll see similar trends have presented themselves. Cryptocurrency veterans are aware of this, and they are holding strong through the storm. Often these corrections are necessary for the market, and if you’re patient you’ll likely see yourself rewarded.
Personally, I feel that most of the blood shed is over, and in the next few months we will begin to see a sharp recovery in almost all currencies. Many cryptocurrencies have been trading sideways for a while waiting for volume and new money to be pumped back into them.
While I’m sure many potential investors have been on the sidelines waiting to see what will happen I’m fairly confident that we’ve reached the bottom. Soon the buy pressure will eat away at the sell walls currently sitting on exchanges, and once those desperate dumpers are gone we can start to see growth again to regain positions.
You should keep in mind that your investment will likely not rebound overnight. You may need to wait until the end of the year to really see new growth. December of last year had some unprecedented gains involving new money, and a lot of people who feared missing out.
Unfortunately, a lot of them also were burned badly so they will be much more cautious this time around if they choose to invest again, so I project this new growth to occur much more slowly. This is not a bad thing.
In fact, this massive spurt was likely partially responsible for the massive correction we experienced. A combination of a lot of new investors who didn’t have a clue what they were buying, massively unnatural growth, and unbridled panic selling make for a bad combination.
It’s discount time!
This is however an excellent time to pick up coins for a discount. I feel that right now is the best time to purchase coins with great fundamentals that are still at very attractive prices. Many very awesome projects are still slashed to Black Friday level prices, and I’ve been working on growing my portfolio myself before the prices go back up.
If you’ve been looking to collect some coins then now is likely the time. Building your portfolio now will put you into an excellent position when the market does experience a rebound. If you got stung by the panic dip on the last go around don’t lose heart. Sometimes you make some poor trades, but if you did then a dip is possibly a good place to average out your price per coin by buying in lower.
In addition, adding some proof of stake coins to your portfolio can take away some of the red market blues by producing income for you while you wait. Many of these coins are at very attractive prices, and you still have the opportunity to make some very nice purchases that you may otherwise would not have been able to afford.
In short, I think the worst of things has passed. Bitcoin is sitting comfortably, waiting for new money to come back into the market. Many altcoins simply follow the path set out by big brother Bitcoin. So, if you see the price for this currency moving then it’s likely that altcoins of all types are soon to follow.
While it seems hopeless now people are quick to forget, and I’m confident that soon this bloodbath will be behind us. Cryptocurrency is a force that can not be ignored.