The general market has experienced insane growth this year, with many investors reaping crazy good bags. As prices continue to rise, early investors are usually concerned that they have missed the money boat and that it is way too late to get in on the fun. While it is true that buying cryptocurrencies early can lead to much more gains, there are several reasons as to why investing late in a bull market can still be profitable, and sometimes even better than investing early.
1. Long-Term Trends in Bull Markets
Bull-markets in the crypto market are identified by a continued period of price growth. While there may be short term ups and downs, the overall trend is always up. This means that even if you buy cryptocurrency later in a bull market, you are still likely to see your investment gain value over time.
2. Buying the Dip
One of the most effective strategies for investing in volatile assets like cryptocurrency is dollar-cost averaging. This usually includes investing a smaller amount of money at different time intervals, usually at a dip of the price of the asset. This helps reduce the risk of buying at a high price and can help you accumulate whatever token you want, over time. This is a well-known tactic that whales use.
3. Potential for Future Growth
Even though crypto prices have already been through significant growth, there is still a genuine future for further gains. The crypto market is still in its early stages of infancy, and there is a growing number of real-world use-cases for this sorta tech. As adoption increases over time, the demand for crypto is also likely to skyrocket alongside it, which could lead to further price increases just because of the increase of people in the market. This is common sense; the more people in a market, the bigger the market.
4. Diversification
Bitcoin for example, can be a really good addition to a non-diversified investment portfolio. By allocating a portion of your portfolio to big cap tokens, you can genuinely increase your overall returns and reduce overall risk.
5. Long-Term Perspective
The bitcoin etf is still pending approval by the SEC - this'll skyrocket the price of bitcoin to atleast 50k overnight. We'll have hedgefunds and family finance offices all over the U.S investing within the same minute it is released. Not to mention blackrock itself buying a handful of bitcoin through their own ETF...We're guaranteed 100,000$ in this bull-run, so why not just sit back and relax?
That's all for today. I hope this has helped you identify why you'll be fine regardless of where the market goes.
Cheers!
