How to Avoid the Highs and Lows of Crypto Market Volatility
The Cryptocurrency market is growing in popularity all over the world, the only problem is governments and financial firms aren’t as welcoming. It’s clear that the lack of central authority with peer-to-peer payment networks and decentralization of crypto bothers institutions that are used to calling the shots. After all, cryptocurrency doesn’t require a bank, and that rubs banks the wrong way.
Even though some governments and banks are slow to accept cryptocurrency the long-term outlook is positive but be prepared for a rocky road ahead. There is much uncertainty in the crypto market today, which is why you see the fluctuations in market capitalization across all cryptocurrency. The biggest question everyone invested in crypto is asking themselves right now is, “are we at the bottom?”
When you look at the crypto market cap for the last 12 months it’s been extremely volatile to say the least. Notice the market cap reached a high of nearly 831 billion in January this year, only to start dropping a month later by more than 50%, and now is at 270 billion- a near 70% drop in value in six months. Will the market go back up, will it continue to go down, it’s hard to tell.
If you have been nervously watching the market on a daily basis wondering if you should either take the gain, or cut the loss, you would not be alone. If you’re savvy you might even think you are safe by using the dollar cost averaging technique in attempts to mitigate losses, but it certainly isn’t helping you with returns. The reality is that this market volatility can rattle even a seasoned investor or day trader, let alone someone new to the investment world. As the old saying goes, it might be time to “take some money off the table.”
What is an investor to do in this situation? Do you Hold? Sale?
Is there a third alternative?
The good news is you definitely don’t have to settle with just taking money off the table, you can lock in profits and makeup for losses, you do this by taking your cryptocurrency and invest it into other predictable income producing assets like real-estate. If you look at the chart above, you will see that real-estate is predictable, and the value of real-estate in the US has steadily increased since 1968.
Not only is their safety and growth in real-state, but for the first time there will be opportunity to invest in fractionalized real-estate ownership through ETH. People from around the globe can take their ETH and invest in US real-estate with companies like RealtyReturns. This unique opportunity gives ETH holders access to cash-flow properties and potential capital appreciation over time. Most importantly, there is a long track record of growth in the US real-estate market with no signs of that changing.
To learn more about this check out RealtyReturns telegram group
Trevor Whiting
VP, Investor Relations
Experienced Sales Leader of over 14 years and has started offices in London, Toronto, and the US. He was VP of Investor Relations of RealtyMogul where was responsible for revenue growth, sales operations, and growth initiatives. Under his leadership, he developed a sales playbook that resulted in 2x growth.
