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Fundstrat's co-founder and analyst, Tom Lee, is preaching patience in the crypto-bear market.
At the Singapore 2018 BlockShow conference in Singapore, Lee told Cointelegraph why he recommends that his clients allocate a small portion of their cryptographic portfolios and maintain some of the largest cryptocurrencies for market capitalization.
"I think people should be patient, but I think one of the most important things we recommend to our customers is that encryption as an investment is actually from 1 to 2% of their allocation, so that the number one, do not worry about this every day, but even 2% can become 50% in a decade, it can grow dramatically.
I think the other thing is to realize that some of the cryptography projects are probably hopeless. But things like Bitcoin and Ethereum or XRP still have power. And these are those where, unless you think the protocol is completely broken, you see the price distortion caused by the sale of panic. "
As for where the cryptography market is heading, Lee compared the current price action with the ups and downs of the stock market and explained why he believes it might now be a good time to buy.
"This is the simple math of long-term investments.This, if you look at the equity markets, the only time you get better than average historical yield, so the stock market has gained about 7% in the year The only time you get better than 7% is when you buy in a bear market, so for example, if you bought S & P in October 2008 at 800, you still get a further 200 points for six months, so you lost money in the short term, but the S & P arrived at 2800. A lot of people waited until the S & P went to 1600, which was a new maximum to buy it.They made a lot less money than a person who bought it at 800.
So for me, crypto is exactly right now. Bitcoin could have a downside in the short term. But does this change the fact that they are still the first days of cryptography and are going to become an emerging business class? Well, those are going to create much higher prices. "
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Disclaimer: the opinions expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and operations are at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrency or digital assets, nor The Daily Hodl is an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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