Times like these are what make crypto a mental challenge. It’s hard to hold or buy when markets are diving across the board.
It gets easier once you’ve been through a few cycles, but for those of you who are new, this must seem awful.
So it’s critical to keep perspective during a pullback like this. Blue chip cryptos like bitcoin and Ethereum have dropped significantly from all-time highs, but they’re still hovering around the same levels they were in mid-November of last year.
Our altcoin holdings are down with the market, but the fundamental bull case for them hasn’t changed. They all remain strong long-term buys.
Unfortunately, such volatility is the nature of crypto markets.
Stocking Up on Bitcoin and Waiting
I am currently evaluating multiple promising altcoin opportunities, including Bytom, which I will likely recommend in the near future. But for today I’m holding off on making a new recommendation. Altcoins tend to move more dramatically in both directions, and the current trend is down.
We’re also seeing some tax selling in markets that may not halt until April 15.
In light of this, I recommend taking advantage of this dip and topping off your bitcoin stash (unless you’re already well-stocked).
Bitcoin is highly oversold right now, and buying here should allow us to take advantage of this dip with minimal downside. On top of this, many of the fundamental issues holding bitcoin back, including high transaction fees, have been resolved.
If you haven’t yet bought our current recommendations, now is also a fine time to do so.
Some members may prefer to use a dollar cost averaging strategy here. For example, instead of buying in a lump sum, spread your buys out over time. You can easily schedule daily, weekly or monthly buys on Coinbase.
Keeping Perspective
Crypto markets have come an incredibly long way in the last year. Investor familiarity with coins is exponentially higher than it was just six months ago.
The infrastructure to support a global-scale crypto market is currently being built out. Coinbase and others are hard at work building index products and custodial services for institutional investors and wealth managers.
Exchanges like Bittrex and Binance are bulking up to meet demand and should soon reopen their doors to new customers. The reopening of these critical “on-ramps” into altcoin markets will be key for the next bull run.
I strongly believe that crypto markets, and especially our coins, will see new all-time highs this year. It’s just a matter of riding out the volatility now.
Altcoins will inevitably rise again and see a “next leg up.” We simply need to ride out the storm for a bit longer.
Good investing,
Adam