It's Time to Buy (Some) Cryptos - Just Not Bitcoin

The recent market crash in cryptocurrencies has been breathtaking (or worse). It seems that no one is buying and everyone is selling. That's a good thing if you are looking for a bottom. Now is probably a good time to start bargain hunting.

I've invested for nearly 25 years in all types of assets. I've seen my fair share of market crashes and recoveries. As I've said in previous posts (https://steemit.com/bitcoin/@fjconstantino/5q6lhi-bitcoin-bottom-are-we-there-yet) crashes often take 80%-90% off an assets value. For example, Amazon (AMZN) lost 94% of its value during the bursting of the internet bubble in 2000 to 2001. The 2018 crash in cryptocurrencies has been particularly nasty as shown below. However, once an asset (cryptocurrency in this case) reaches that threshold and survives it's often investable. Another factor to consider is psychology. You want morale to be terrible when you start buying.

Below are the Top 10 Cryptocurrencies by market cap and their corresponding loss from peak to trough. I am paying particular attention to those that are down 95% or more. The average loss in the current crash is 91.4% for the Top 10. As you can see Bitcoin has been the relative out-performer with a 82% loss. This makes me wary to immediately jump into Bitcoin yet. Ripple may be a better bet as it may have bottomed around $0.22 but moved up to current levels around $0.37. Others that are interesting me, based on their losses are Ethereum and Bitcoin Cash.

This isn't to say all of these cryptos have bottomed. They can go down more. However, now is the time to begin paying attention and possibly scaling (buying in increments) into some positions.