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Four Reasons Why You Should Own Crypto Right Now
Trying to time the market is a fool’s errand.
Teeka Tiwari & Houston Molnar
August 28, 2024
Four Reasons Why You Should Own Crypto Right Now
Did anyone panic sell [on] March 23, 2020 and hasn’t bought back yet?
I can’t believe I missed the bottom. You guys were right, we wouldn’t be able to time the market.
The above remarks were posted to Reddit by an investor expressing frustration that he sold his positions shortly after the COVID-19 outbreak in March 2020.
As I’m sure you remember, March 2020 an ugly month for the markets.
The entire economy ground to a halt. The CBOE Volatility Index – also referred to as the market’s fear gauge – rocketed 400% to 85, its highest level since 2008 during the financial crisis.
The S&P 500 and the Nasdaq indexes plunged 36% and 32%, respectively, in a matter of weeks. Bitcoin plummeted 64%.
Just days before the market crashed, billionaire hedge fund manager Bill Ackman appeared live on CNBC to beg then-President Trump “to do something.”
In the most dramatic fashion, Ackman told the millions watching that “hell is coming” and “America will end as we know it.” (You can watch the clip here.)
Fortunately, that didn’t come to pass.
Since the pandemic panic, the S&P 500 and Nasdaq have rallied 157% and 195%, respectively. And bitcoin is up a whopping 1,496%.
Unfortunately for the investor above, March 23, 2020, did mark the bottom of the market crash. And based on his Reddit post, he was forced to buy in much higher.
At Digital Asset Daily, we constantly warn you not to make the same mistake as this Reddit poster: Panic sell.
In fact, we’ve been training you to buy when others are running for the hills. That’s because the best bargains are to be had during the worst days of the market.
Whether it’s the 2020 pandemic… The 2008 Great Financial Crisis… Or the flash 8% crash we saw earlier this month… When markets fall, doubt creeps in.
During these periods, it’s important to remember that most gains are made by buying (and holding onto) high-quality assets for the long haul.
Trying to time the market is a fool’s errand.
That’s especially true when you’re investing in new asset classes that are extremely volatile – like internet stocks were in the 1990s and cryptocurrency is today.
In today’s essay, I’ll reveal the four biggest reasons you need to position yourself in this asset class. Once you digest them, you’ll have all the ammunition you need to steel yourself against the next inevitable bout of volatility.
Reason 1: Supply Pressure Is Easing