The Second Best Time To Buy Crypto Is Now

Would you invest in Bitcoin back in 2015 when it was around $200-300 per coin? Or Ethereum in early 2017, when it was moving gradually from $10 to $50?

Prices skyrocketed to new all-time highs and then crashed substantially over the last few weeks. That’s it. The bubble have burst. And while there’s some truth in this, it’s important to understand that it’s just a normal market cycle, which ebbs and flows just like waves.

Since mid-May, things have definitely cooled down a bit in the crypto space. BTC down 40-50% from the recent all-time high, ETH over 50% down even on a good day, most altcoins down 70-90%.

And yet, this is exactly the time when you should consider putting your money into crypto. Someone said that bull market can make you money but bear market can make you rich… or as Warren Buffett has said

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

Let’s look at the whole crypto market. I divide all tokens into 5 categories, based on their market cap:

In the current market conditions, my focus is on the ‘safest’ coins (as much as anything can be safe in crypto and investing in general 😉 For me, these coins are (currently) BTC, ETH, and ADA.

Why these particular coins? Well, BTC is and likely will carry on being a safe store of value for long-term investments (4-5 years minimum). While it certainly can be extremely volatile when looking at its short-term movements, once you zoom out, the price only keeps going up.

It’s also a similar story with Ethereum. Although it was created much more recently and therefore we don’t have quite as much data, the long-term pattern is similar.

And finally, Cardano. I’m bullish on Cardano in the coming months. During the recent dips, ADA held much stronger than most other coins. It hit ATH of $2.45 but I think it will skyrocket way past this number once smart contracts are deployed on its mainnet. Cardano is a great project and once its ecosystem starts growing, I believe it could go parabolic like it happened with ETH, BNB or DOT.

So why I picked these particular coins? It’s all about finding a balance between an acceptable risk level and attractive enough potential for growth.

My expectation is that by mid to late 2022, BTC will hit around 100-150k USD (3-3.5x gain), ETH somewhere between 7.5k and 10k USD (approx. 4-5x gain) and ADA around 7-9 USD (5-7x gain).

Sure, these numbers may seem VERY modest compared to what’s possible in the crypto space (100x and bigger gains are not unheard of) but nonetheless, these are very decent ROIs with relatively little risk attached to them.

In the meantime, I’m also staking ADA which is giving me around 6% APR (paid in ADA). Sure, it’s not a huge amount but it certainly beats 0.25% UK banks are offering for their savings accounts 😉

But you only lose money when you sell. About half of them I don’t have huge hopes for (luckily these are my smallest holdings as I was aware that they were the highest risk) but the other half has a lot of potential to skyrocket once we’re in a full swing bull market, so until then, I’m waiting patiently.

And I’m not just saying this. I recently sold my house as I’m preparing to move abroad and, in the meantime, I put a significant chunk of that money in these 3 coins.