With 2018 seeing an extended steady decline in cryptocurrency prices, the biggest question that arises is whether or not to “buy the dip” in hopes of another significant surge of prices.
As the prices of digital currencies fell significantly lower than their all-time high, crypto-traders could stand to make enormous profits if a price rally occurs, but only if they start buying into the market now. Cynics have in many occasions said that the end of cryptocurrencies is here, and they have been wrong every time.
A massive surge is still possible should the SEC finally approve a Bitcoin ETF. When Bitcoin futures made its appeal back in December last year, the BTC prices peaked to their highest ever of $19,700 within just a few days. A Bitcoin ETF could mean an even bigger surge of value. However, the SEC has so far refused to approve any filing of a Bitcoin ETF, as noted during the VanEck ETF decision.
Bitcoin could essentially be what Amazon was in the previous two decades. The e-commerce giants are now bigger than anything anyone expected, in spite of the dot-com bubble burst. Crypto prices might be on a low right now, but the phenomenon of alternative currencies isn’t just a passing phase. A huge number of financial experts themselves have begun investing in digital currencies, which ought to provide a lot of credibility to the space.
However, it is indeed the fact that the prices of alt-coins are now steadily descending. The month of August itself saw the crypto-market lose about $43 billion in a matter of 5 days. Considering how impossibly volatile the market is, it will definitely be an arduous and expensive task to hold on through the entire dip. Therefore, investing in alt-coins doesn’t seem like the best financial decision to be made currently.
Recent events have also caused investors to become much more cautious regarding the security of their coins, as malware, loss of private keys, and sending coins to incorrect wallets has caused many to lose all of their coins for good.
The number of ICO Exit Scams seen in the last few months is also rather alarming, and the chances of being caught up in one, according to studies, is 80%. Recent investigations and research showed that ICO Exit Scams had caused losses of approximately $100 million.