CRYPTOCURRENCIES are sucked into the general market turmoil however financial advisors advise investors who are worried not to get frightened.
Bitcoin temporarily dropped below US$30,000 on Thursday (May 11) the lowest price in more than a year. Shares of Coinbase Global, one of the biggest cryptocurrency exchanges fell to a record low following a warning about a slowing of trading volumes. Coins tied in relation to the US dollar are being slammed, sparking an argument about the merits of stablecoins based on algorithms.
The current crisis is a good moment for investors to review their portfolios, and possibly gain a better understanding of what coins might or might not be worth the investment over time according to advisors.
“Bear markets are typically a great time to accumulate the coins you have long-term conviction in,” said Gritt Trakulhoon, the lead cryptocurrency analyst at investment app Titan. “It’s a tough market for sure, but it’s a good time to strategize.”
Billionaire businessman Mark Cuban tweeted Monday that crypto is currently in a state that is similar to what happened during the dot-com boom which saw the stock prices of several internet-related businesses up and then eventually bottoming out.
While a burst of bubbles may not be the norm the investors must focus on adjusting their portfolios by implementing a long-term plan that includes at least a 3-year duration, Trakulhoon said.