Contrarian Investing

The cryptocurrency market has expanded aggressively over the last 3 years with capital penetrating this new asset class – and this has made a lot of money for other people. But until recently, the cryto markets that once delivered joy is now a growing pain in everyone’s portfolio – with the value of bitcoin and ethereum collapsing by more than 80% from their peaks, dragging the whole cryptocurrency markets with it.

With the bearish sentiment, token prices for this new digital asset class are now way below their ICO prices, and bargain hunters can look at them once more and reconsider positioning at their current lows. As a contrarian view to investing, this may even be the best time to accumulate slowly when others are fearful.

We can’t really say if at depressed prices, this is the best time to buy your favorite cryptocurrency. But the huge discounts offered by the market is worth considering. Here are 2 reasons why one should reconsider a contrarian approach to investing in cryptocurrencies.

1.Investments Returns
If you have invested US$11,000 in 2017 buying US stocks, the total value of your investment will hover around US$13,000. But if you have bought US$11,000 worth of bitcoin in 2017, that value now at current bitcoin levels will be somewhere around US$70,000. Another outstanding digital coin has to be ethereum, and that would have increased your portfolio with a multiple of 46. That means that US$10,000 worth of ethereum 3 years ago would now be about US$460,000. These exponential returns are very hard to find in traditional investments. And we are looking forward to a repeat performance with cryptocurrencies.

“Be greedy when others are fearful and be fearful when others are greedy”

2.Small Investment for Big Dreams
You can position in crypto with small amounts depending on how comfortable you are in dispensing your hard earned income to learn more about ICO’s before you come in big. We see a lot of people talk about investing in crypto yet rarely do we see them getting into it. You can challenge yourself to learn and invest in crypto with as low s US$50 and charge it as an educational expense. It is not really necessary to buy the whole bitcoin as you can purchase parts and parcels of it like fractional amounts such as .0077BTC for US$50USD.

Is this the best time to invest in cryptocurrencies?
Learning the ins and outs of this new asset class is a great way to expound your investment horizon so you can consider the other options to grow your portfolio. The current bearish sentiment hounds an atmosphere of fear. But for the contrarian, this is the best time to be greedy when others are fearful. As the saying goes, “You don’t make money when you sell, you make money when you buy.” And timing has a lot to do with investment success.