Cryptocurrency can be a volatile investment. Prices can swing wildly in a matter of hours or days, making it difficult for individuals to know when to buy or sell.
However, downturns in the market can be the perfect time to buy crypto. Here’s why:
- Lower Prices
During a downmarket, crypto prices are generally lower than during a bullish market. This presents an opportunity for individuals to buy the same amount of cryptocurrency for a lower price. When the market eventually recovers, the value of the cryptocurrency will rise, and the investor will have made a profit.
- Long Term Potential
Cryptocurrency is still a relatively new technology. It has the potential to revolutionize the way we do business, store value, and transfer funds. Buying crypto during a downmarket means investing in this potential for the long term. While the market may be down now, the potential rewards could be significant in the future.
- Diversification
Buying cryptocurrency can be a way to diversify your investment portfolio. It offers a different type of asset than traditional stocks and bonds. By buying crypto during a downmarket, individuals can spread their risk across different types of investments.
- Opportunity for Learning
During a downmarket, you have the opportunity to learn more about cryptocurrency and the market — learn about the technology behind different cryptos, and develop a better understanding of how the market works.
This knowledge can be valuable for future purchases and can help individuals make informed decisions.
How to Buy Crypto with Blockchain.com
- Go to Blockchain.com and create an account.
- Verify your identity
- Add funds to your account: Add funds to your account using a credit card, bank transfer, or other payment methods.
- Navigate to the “Buy Crypto” tab and select the cryptocurrency you want to buy. Enter the amount you want to buy and confirm the transaction.
- Once your purchase is complete, you can store your crypto in your Blockchain.com wallet.
It’s important to remember that the market is unpredictable, and individuals should always do their due diligence before making any purchase decisions.
This information is provided for informational purposes only and is not intended to substitute for obtaining accounting, tax or financial advice from a professional advisor.
Should You Buy Crypto in a Downmarket? was originally published in @blockchain on Medium, where people are continuing the conversation by highlighting and responding to this story.
