It’s no secret that the last year has been hard for crypto.
Bitcoin (BTC 9.78%) and ethereum (ETH 6.32%) are both at about 70% from their peaks, and Cardan and Solana are down by about 90%. Those numbers are hard to stomach, and many investors have fled the crypto market in recent months.
If you’re nervous about the market right now, you’re not alone. But should you keep investing? There are three reasons to hold on to crypto in 2023, and one reason it’s best to avoid for now.
Because now could be a smart buying opportunity
1. Prices are low
At its peak, Bitcoin cost almost $70,000 per token, and Ethereum was priced close to $5,000 per token. Today, Bitcoin sits at just under $21,000, with Ethereum at around $1,500.
If you are looking for more affordable time to invest in crypto, you can’t get a better chance than now. The crypto market is essentially liquidating at the moment, and it is possible to load quality investments for a fraction of the price.
2. Growth could be lucrative
Of course, no one knows for sure if the crypto market will recover. However, declines like this are not necessarily rare in this industry, and major cryptocurrencies have faced worse in the past.
For example, in 2018, the price of Ethereum fell by almost 95% in the course of the year. If you invested at its lowest point, you would have seen returns of almost 4,500% in the next three years alone.
Again, it is not clear what the future holds for the crypto, and we cannot see another demonstration similar to the 2020-2021 increase. But even if cryptocurrencies don’t reach their all-time highs anytime soon, even a relatively small rise could still be lucrative if you invest at lower prices.
3. You may regret not investing
Crypto is a speculative investment, so no one – not even the experts – knows how will it do in the long run. While it might fail, it might still change the world.
When you decide to invest, consider which of these options will please you more: invest now and lose money if the crypto fails, or not invest and lose the investment of a lifetime if the crypto succeeds.
To be clear, this doesn’t mean you should go all-in and invest every dollar you have in crypto. As with any investment, it’s important to shop wisely and only invest what you can afford. But for some people, it is worth risking some money to avoid the regret of not taking this chance.
Because it may be better to avoid crypto
1. I am a risk averse investor
For all its potential, the crypto also brings a significant amount of risk. At the moment, it is impossible to know if the crypto will succeed, and there is always a chance that you can lose what you invest. If money is tight, now may not be the best time to buy.
Also, this investment is known for its extreme volatility. Even in good times, it can experience nauseating highs and lows. Not all investors have the stomach for crypto, and that’s okay. If you know you’ll lose sleep over that level of volatility, you might be better off sticking with stocks for now.
The future of crypto is uncertain, and whether you choose to invest now will largely depend on your risk tolerance and personal preferences. But if there is a refund on the way, now may be one of the best chances to buy.