The cryptocurrency market has declined. Best time to enter?
Over the past few days, the cryptocurrency market has declined significantly. Is it time for panic? If you invest short term and try to speculate on daily changes, yes. However, if you invest in cryptocurrencies over the long term, you know that we have seen declines in the cryptocurrency market many times before.
An ideal time for new investors
Would you rather buy one bitcoin for 12000 € or 6000 €? The market downturn may be a perfect time for new investors to enter the cryptocurrency market, as they buy them at fractional prices compared to those who buy on the rise. If the German Bayerische Landesbank forecast comes next year and bitcoin reaches the market price of € 50,000, purchases at sale prices will be valued at hundreds of percent. However, the current downturn also reminds us that cryptocurrencies are a high-risk asset, so the amount invested needs to be well weighed.
Reason over fear
It can be challenging to think wisely when your investment is not increasing. Inexperienced investors often fall back on panic and try to withdraw their deposits often at a loss. The more experienced know that the decline in the cryptocurrency market seems to be temporary, and will take this opportunity to increase their investment by purchasing additional cryptocurrencies. It is important to base the investment decision on rational consideration: will the cryptocurrency market grow in the long term, or is the current downturn its final destiny?
Cryptocurrency is not a tool for speculation
Cryptocurrencies offer a payment infrastructure that is global and institution-independent in terms of functionality. It only needs a computer network. It is also a form of “money” that no one can arbitrarily multiply. These values may prove crucial in the long run. Therefore, in Fumbi, we believe in the future of cryptocurrencies.
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