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Cryptocurrency Price: Pros and Cons of “Buying the Dip”

The quintessential question that arises in any cryptocurrency bear market is whether or not to buy the dip. 2018 has seen prices go on an extended steady decline and many experts argue whether or not to buy virtual coins in the hops of another significant price rally.

Likely Reasons to Invest in the Cryptocurrency Market

“Buy low sell high” is a basic trading aphorism. With cryptocurrency prices significantly down from their all-time high (ATH), traders stand the chance of making huge gains should a price rebound occur but only if they get into the market now. Crypto cynics have pronounced the end of the digital currency lots of times, and have always been wrong.

The possibility of a massive bull run exists if the SEC finally approves a Bitcoin ETF. When Bitcoin futures emerged in December 2017, BTC price surged to an ATH of $19,700 in a matter of days. A BTC ETF could see an even greater price surge. So far, the SEC has been reluctant in approving any BTC ETF filing, as seen in the VanEck ETF decision. However, bullish attempts are being made to get the regulatory body to change its mind. If you still believe in the possibility of a BTC ETF, then it’s only a matter of time.

Bitcoin could be this decade’s Amazon. Not many expected the tech behemoths of today to be this, especially after the dot-com bubble burst. The crypto prices might be bearish at the moment, but the digital currency is not just a fad. The nascent technology has a place in the future. Another reason to invest is that a lot of financial experts are investing in the digital currency. That gives the currency some credibility, and it shows you know what you are buying.

It Could All End Badly

The bears are ruling at the moment, as crypto prices have continued to descend. August isn’t faring any better, as the cryptocurrency market lost $43 billion in five days. As volatile as the market is, it will be costly holding on through the big dip. Investing in the digital currency isn’t the wisest of financial decisions to make presently.

Holding on to your coins can cost you if you aren’t careful. Malware, loss of private keys, sending coins to the wrong wallet, can make you lose your coins for good. It’s advisable to sell now than lose all your cryptocoins for nothing later.

Exit ICO scams are the order of the day, and the probability of landing on one is 80%. Recently, investigations showed that about $100 million had been lost to ICO exit scam. The safest way to go is to sell the digital coins in your wallet.

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Time To Buy The Ripple (XRP) And Stellar (XLM) Dips

The market is rough this morning. There is no denying that Bitcoin (BTC), being the leader of the pack, had fallen to an all time low of $6,730 less than 24 hours ago. And with it, it dragged down two of our favorite top 10 coins under a dollar: Ripple (XRP) and Steller (XLM). Ripple is ranked 3rd on coinmarketcap.com and Stellar is ranked 8th.

Bitcoin (BTC) has since shown some recovery and is currently trading at $7,214 and at the moment of writing this.

But with such dips, comes opportunity of getting your hands dirty once again in the markets. The last time Ripple was trading at the current levels of around $0.51 was mid December, 2017 before the ‘Gold rush’ in the crypto markets that resulted in Ripple peaking at $3.79 less than a month later on January 4th. This was an increase of 643%.

Stellar on the other hand is currently trading at $0.19. These prices were also last seen in Mid December last year before everyone rushed to buy cryptocurrencies before Christmas. The rush also assisted Steller to moon temporarily at $0.90 on January 4th: an increase of 373%.

Also to note is the prediction by Abra CEO, Bill Barhydt, who is quoted as saying All Hell Will Break Loose once the big investors in the West realize the potential of cryptocurrencies, as much as our Japanese counterparts have discovered. To remember, SBI Holdings, a conglomerate of Japanese banks, was one of the first banking institutions to embrace Ripple with open arms.

Barhydt his quoted as saying:

“I talk to hedge funds, high net worth individuals, even commodity speculators. They look at the volatility in the crypto markets and they see it as a huge opportunity. Once that happens, all hell will break loose. Once the floodgates are opened, they’re opened.”

Perhaps what these high net worth investors are waiting for, is the opportunity that has currently presented itself with a week Bitcoin that has dragged the entire market down with it. Perhaps it is time to take a gamble and stock up on two of the most undervalued and most promising crypto assets in the Crypto-Verse: Ripple and Stellar.

What I do know, and what my gut tells me, is that Crypto is here to stay. Evidence of this can be seen with China announcing plans of releasing its own centralized digital currency. This means its own Central Bank will act as the regulatory body. If this is not a sign of mainstream adoption, I do not know what is.