Should we buy cryptocurrencies in the event of a collapse? Let us try to provide some useful ideas for this eternal question ...
One of the most common questions that every investor asks during the "bear" phases of the market is if It pays to buy cryptocurrencies or not when prices drop. 2018 saw prices go steadily declining and many experts debate whether it is worthwhile to buy virtual coins or not in view of a potential other significant price hike.
"Buy at low cost”Is also a common trading aphorism. With cryptocurrency prices significantly below their all-time high, traders theoretically have the option of making huge gains if a price rebound occurs, but only if they enter the market now.
Of course, nothing is sure, although there is the possibility of a massive race to the top in the event that the SEC finally approves a Bitcoin ETFs. When Bitcoin futures surfaced in December 2017, BTC's price rose to $ 19.700 in a few days. A BTC ETF could spur an even greater rise in prices, but the SEC has so far been reluctant to approve any BTC ETF instrument, as seen in the VanEck ETF decision. However, new attempts are still made to convince the regulatory body to change its mind: the trader who believes that a BTC ETF will become a reality, can therefore only focus on rising prices, and will therefore find the current level of values attractive.
In short, according to some observers, Bitcoin it could be the Amazon of this decade. Not many were once able to predict the strong growth of the tech giants, especially after the dot com bubble. And the same could also happen with cryptocurrencies, whose price is currently falling, but which could soon prove to be not a passing fad. In short, nascent technology could prove to have a stable place in the near future.
However, what is now evident is that the market is dominated by bears and, consequently, that the prices of cryptocurrencies are continuing to fall. August certainly did not go better than expected, given that the cryptocurrency market has already lost tens of billions of dollars, and the more volatile the market, the harder it will be to continue resisting. Investing in digital currency is not the wisest of financial decisions for a prudent investment, but it may soon open the door to major rebounds!
