Now is the Most Risky Time to Start Investing in Crypto

in bitcoin •  last year

Polar Bear Head

Cryptocurrencies are attracting a lot of new investors these days. Among them some friends and family members who had stayed on the sidelines for years, even though they often talked about it with me. Seeing the current extreme success of cryptocurrencies and surrounding hype, they now suddenly want to be part of it too!

Unfortunately I fear that now is the most dangerous time in years to start with cryptocurrency investments. Although there still is upward potential, the extreme gains cryptocurrencies have made recently and the hyped up expectations, in my view, significantly increase the downward risk in the short term.

For people who have been in this market for quite a while, like myself, a 50% drop in market prices will still leave us with a healthy profit, but for those who start to invest now, such a drop will instead cause a painful loss.

There have already been bear markets in crypto's short history. They weren't pretty. During the previous bear market for instance, the price of Bitcoin dropped from a peak of around 850 Euros to a low of around 200 Euros. It took the market 3 years to recover.

While I do still want more people to be part of this revolution, and experience the liberating power of crypto, it is important to stress how risky it is at this point in time to invest significant amounts of money. The most important advice remains to only invest that which you are willing to lose. In case of a bear market, instead of huge quick profits, be prepared to have to wait months or years for your investment to recover.

Five or ten years from now, crypto will most likely be much bigger than it is today. It is not going away, like the Internet was not going to go away in 1998. But the road ahead is going to be rather bumpy. Be careful, and if you join the ride now, hold on tight!

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I totally agree there will be a huge correction, but it is still not late. Maybe it's late for Bitcoin, but not for the others. Bitcoin seems to be an old technology, that is slow and the transactions are expensive. Coins like IOTA will probably replace Bitcoin and gain far higher value than Bitcoin currently has. If you want to know more about IOTA, you can check out my post i shared today.

The Asian session tonight can be crazy. I hope we're wrong.

I try to remember that it's easy to feel like everybody is on to something due to the echo-chamber nature of the internet. We spend our time reading about things that interest us, and we're connected directly to other people who are just as interested. Those other 100 people can feel like a lot, but there's billions of people on the planet!

With crypto, try walking down the street and asking someone what they think of cryptocurrency - they might know Bitcoin, but will also probably tell you they heard it's a scam or it's really risky or it's gambling. So while we are immersed and constantly talking about the tech and potential applications and hundreds of different coins, we are still a select few.


In my country Bitcoin love to compare with the pyramid Mavrodi. Nobody thinks that crypto is technology and pricing is real.

Excellent post, greetings :D

post is very useful my friends

Even if this night nothing happened bears do not give up!
It's a great chance to them to break the rising trend.

So, "Be careful, and if you join the ride now, hold on tight!" © @ottodv

Nice post!