Should You Buy Crypto in a Downmarket?
Investing in cryptocurrency can be a roller-coaster ride, with prices experiencing significant fluctuations within short timeframes, making it challenging to determine the right moments to buy or sell.
Nevertheless, market downturns can present opportune moments to purchase crypto. Here’s why:
Lower Prices
In a downmarket, crypto prices tend to be lower compared to a bullish market. This provides individuals with the opportunity to purchase the same amount of cryptocurrency at a discounted price. As the market eventually rebounds, the value of the crypto will rise, resulting in potential profits for the investor.
Long Term Potential
As a relatively new technology, cryptocurrency has the potential to revolutionize various aspects of business, value storage, and fund transfers. Investing in crypto during a downmarket means embracing its long-term potential. Although the current market may be experiencing a downturn, the potential rewards could be substantial in the future.
Diversification
Purchasing cryptocurrency can serve as a means to diversify your investment portfolio, offering an alternative asset class compared to traditional stocks and bonds. Buying crypto during a downmarket allows individuals to spread their risk across various investment types, providing a more balanced approach to managing their investments.
Opportunity for Learning
In a downmarket, there’s a unique opportunity to enhance your knowledge about cryptocurrency and the market. You can delve into understanding the technology behind various cryptocurrencies and gain insights into market dynamics.
This valuable knowledge can empower individuals to make well-informed decisions and be better equipped for future purchases in the crypto space.
How to Buy Crypto with Blockchain.com
To get started with buying cryptocurrency, follow these steps:
- Visit Blockchain.com and sign up for an account.
- Complete the identity verification process.
- Add funds to your account using a credit card, bank transfer, or other payment methods.
- Go to the “Buy Crypto” tab and choose the cryptocurrency you wish to purchase.
- Enter the desired amount of crypto to buy and confirm the transaction.
- After the purchase is complete, you can securely store your cryptocurrency in your Blockchain.com wallet.
Always keep in mind that the market can be unpredictable, and it’s essential to conduct thorough research and due diligence before making any investment decisions.
Note: This information is provided for informational purposes only and should not be considered a substitute for obtaining accounting, tax, or financial advice from a professional advisor.