What crypto to buy now that the markets are down
The crypto markets started the year hot. But they have cooled considerably. The sharp price drops prompt investors to ask which crypto to buy now … Here at U investment, the answer seems obvious. But it also depends on the level of risk you are willing to take. So first, let’s unpack a little more what’s going on.
Last June, Bitcoin fell to a low of less than $ 29,000. This sparked the exit of crypto bears. Investors were afraid. To be fair, it is fair. Remember, not too long ago, a single Bitcoin was worth around $ 65,000.
Naturally, the volume of trade fell. Among the largest exchanges, the volume of transactions fell by more than 40%. Daily volume dropped by a huge $ 138.2 billion to just over $ 78 billion. In a market fueled by headlines, speculation and of course, supply and demand, this all really makes sense. The crypto markets had a target on their backs. And it seemed like all the keyboard warriors out there were aiming and shooting. You can read the rundown of the causes of the crypto crash here.
By the time the dust settled, there were plenty of headlines to unwrap. It was not fair the so-called crypto ban in China. We also can’t blame the child terrible Elon Musk this time around. But there were some really damaging things that happened to notice …
TITAN crypto collapsed under its own weight. The Tether stablecoin started to look a lot less stable. On top of that, the FBI was able to track down the Bitcoin ransom paid to the DarkSide hacker group. While the latter is largely positive, it has instilled some uncertainty into the secretive nature of cryptos. Then there was a problem in the Coinbase exchange. But it’s all behind us now …
What crypto to buy now before the markets recover
The seemingly incessant supply of damaging headlines has started to slow down. And we are starting to see a recovery taking shape. But that doesn’t stop the media from delivering FUD to its readers. News feeds are already filling up with stories about a crypto winter departure.
Although we do not deny that the phenomenon exists, we believe that we are not there yet. At worst, the crypto markets are in a bear market. But that’s actually good news for investors with a little scratch to invest. Because even though there are signs of a recovery, a lot of our favorite cryptos are still trading near their 52 week lows.
The key to determining which crypto to buy now is to choose a crypto with a purpose. Underperforming markets may be enough to send dashing altcoins to an untimely grave. But cryptos built to last are those with intentions beyond serving investors.
Take Ethereum for example. Frightened investors and reduced volume brought it down to less than half of its all-time high. But Ethereum is not going anywhere. Too much depends on its blockchain technology. It is used to create and share business. Dozens of decentralized applications are powered by the Ethereum blockchain. Heck, pretty much the entire NFT market is built around Ethereum. So when it comes to figuring out which crypto to buy now, Ethereum should be at the top of the list. It is selling at a discount.
The other big one is, of course, Bitcoin. The king of cryptos has only grown in popularity over the years. You can buy and sell it in your PayPal account. Morgan Stanley now offers access to its elite clients. Hedge funds are mobilizing. And we’ll likely see a Bitcoin-backed ETF in the US before the end of the year.
The Basics on Cryptos Now
Be fearful when others are greedy and greedy when others are fearful.
It doesn’t always make sense to apply stock market logic to crypto markets. But in this case, it makes perfect sense. Bitcoin is down. But it is far from over. Ditto for Ethereum. The crypto markets have been quite calm lately. Retail investors are quietly withdrawing from the crypto markets. But they will come back. They came back after the massive crypto crash in 2018. In fact, they came back in greater numbers. And they’ll be back when the rally becomes more evident. This makes choosing which crypto to buy now very easy.
These altcoins with a quadrillion tokens in circulation may latest. But not all of them will. Big boys who have been through this before will, however. Bitcoin and Ethereum are easy examples. But there are plenty of other cryptos that are worth your attention. For more investment opportunities in the crypto markets, we suggest you subscribe to the Manward Financial Digest e-letter. In it, Andy Snyder helps guide rookies and crypto veterans to tokens built to last. Volatility is a crypto characteristic. Markets come and go. But Andy Snyder can help you buy the ebb and sell the ebb.
About Matthew Makowski
Matthew Makowski is Senior Research Analyst and Writer at Investment U. He has studied and written about the markets for 20 years. As comfortable with identifying value stocks as he is with discounts in crypto markets, Matthew started mining Bitcoin in 2011 and has since focused on cryptocurrency markets as a whole. He is a graduate of Rutgers University and lives in Colorado with his dog Dorito.