As a long-term store of value, the more real-world applications you have, the more likely it is to increase in value. Long-term cryptocurrency investing gives you direct control over your portfolio. This means lower fees and better access to your investment. Cryptocurrency can gain value on exchange platforms.
It increases in value depending on supply and demand. Crypto markets are volatile, so buying cryptocurrencies at any price, let alone a drop that could become a long-term trend, is risky. While prices could return to previous levels, they could also fall further, leaving your investment underwater. So what should a new investor do? One way to get through the thick is to choose a currency or token that is designed to serve a certain purpose as an alternative to traditional money, such as Bitcoin, or, say, a way to transfer money to parts of the world where basic banking services are difficult to come by.
No matter how its value fluctuates, it is thought that there will be a reason to use it, which can make it a good investment. Given the old investment adage “buy the fall”, investors may now be looking for a slice of the volatile cryptocurrency market in the hope that this will mark a temporary recession rather than a long-term bear market. That's why experts recommend keeping your cryptocurrency investments at less than 5% of your total portfolio. The co-founder of automated cryptocurrency trading platform Coinrule, Oleg Giberstein, believes that cryptocurrencies are suffering from the same tensions as other parts of the economy, leading to falling prices.
The path to long-term wealth and saving for retirement is often successful for people with diversified investments, such as low-cost index funds, and cryptocurrencies account for a very small share. Just as the convenience of its products affects the price of a company's stock, the crypto system impacts the cost of trading cryptocurrencies. That's part of the reason why experts recommend not investing more than 5% of your total portfolio in cryptocurrencies and never investing at the expense of saving for emergencies and paying off debts with high interest rates.
