The Global economy seems to have been caught completely off guard by the situation created by spread of Coronavirus. People were expecting the financial markets to start a bull run, crypto fans were getting prepared for the moon launch as Bitcoin halving is approaching soon. They were faced by a rude shock as global markets tanked, crypto sank to year low levels, oil prices are crashing, even gold has failed to prove a safe heaven. And the unimaginable has happened once again- Cash is King! This shows the world is clearly not yet ready for crypto as a practical alternative to good old hard cash.

More and more people are getting into panic mode with each passing day. Countries are wondering how long can they shut down before most of their industries go bankrupt. People have started dumping all their investments for cash. We can not blame this behavior as such emergencies require some liquidity to survive. You can’t pay basic necessities, food, medicine with crypto. At least not yet!  

This looks like a very grim situation with no positive highlights looking possible in near future, right? I don’t completely agree. While it’s true such trying times will be difficult to bear due to the severe financial, professional, personal, mental & physical health related challenges they will bring. At the same time they will provide opportunity to create future millionaires. This will test your beliefs, you will know now for sure whether you were a true HOLDer or were just faking it. Were you in crypto just on a whim, or you have what it takes to weather the storms that will come in the way.

I am sure you have been reading many articles and news related to the potential impact of current situation on crypto outlook. I won’t be surprised if you are left completely confused after reading them as some people suggest this is the bottom and we should buy crypto as it will bounce soon, on the other hand many people are suggesting it is just the start of crash and crypto might soon capitulate. To be honest there is no right or wrong answer we can be certain of as no one knows for sure what will happen in the future. There can not be one approach which will suit everyone as each person has his own personal situation, own goals, own challenges, own dreams. What ir perfectly manageable risk for one might be a disastrous risk for another.

I am going to summarize some key factors you should keep in mind before you decide to buy or not buy Bitcoin at this stage.

Why you should not buy Bitcoin now

• High risk of further downside- The coronavirus is far from over. It will spread further before it can be controlled. This will impact economies and in the process crypto investments
• Emergency funds- Crypto is definitely a risky asset. You have to ensure you have sufficient cash to cover you in case you have to go months without a steady income. Save for medical coverage. Save in case you lose your job/ business.

Why you should buy Bitcoin now

• FUD has crashed the price- The price correction is completely linked to fear as nothing fundamental has changed in crypto during the last few weeks. This means it’s a great buy opportunity for people who were still waiting to enter the crypto space. For HODLers it’s a chance to improve their average buy rate.
• Invest Systematically- Don’t put all your savings at one go. If the price falls further 40-50% you will be kicking yourself. It is always safer to invest in batches. Prices will be under pressure for several months to come. Look out for dips and invest what you save on top of your emergency funds

It will require a lot of discipline and mental strength to keep the faith and invest in Bitcoin. I personally think people who will be brave enough to invest now will surely be rewarded greatly in the future.

Cheers,

SamBTC

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Originally posted on Uptrennd by me at - https://www.uptrennd.com/post-detail/global-meltdown-is-it-the-right-time-to-buy-bitcoin~MjM2Njk2