US investors continue to buy cryptos despite high volatility. They obviously appreciate risk-taking. It’s the least we can say. And this was confirmed by a recent survey conducted by The Balance. The research findings claim that in the United States, 4 out of 10 investors continue to invest in digital assets amidst instability in the cryptocurrency market.
Crypto: Preserving Wealth Despite Volatility
With a market struggling with high volatility, have some investors imagined a new investment technique? In any case, they continue to buy digital assets in a market that oscillates between the bearish and bullish trend. These investors hope to be able to preserve and increase their wealth even if the visibility has never been so blurred. They attribute this choice to a new way of investing. In the United States, this trend is particularly popular with young people (under 41).
The cryptocurrency landscape has been particularly bleak in recent months. Crypto-skeptics went there with their criticisms. Digital assets can actually experience multi-thousand dollar movements in either direction (up) or the other (down). But according to observers, this volatility is decreasing as the adoption of cryptos widens. That’s a fact. Cryptos are less volatile today than in 2010.
What about other investment choices?
Some young Americans play the reckless card by buying more assets in troubled times. Others prefer to invest with an investment scheme that has already been proven, such as theETF or index investment fund. These are exchange traded funds. In other words, investors do not bet directly on digital assets. Instead, they invest in cryptocurrency-linked funds. Units can be bought or sold like shares of listed companies.
Faced with price uncertainty, others have chosen to invest less or maintain their usual investment pace. This, within the framework of a strategy of periodic purchase by fixed sums. In the face of volatility, investing relatively small amounts on a regular basis minimizes risk. But it optimizes performance. Diversification also minimizes risk, regardless of the state of the market. This strategy simply involves investing in a variety of DeFi tokens and projects.
Cryptocurrencies are new, highly speculative and surrounded by hype. Reasons why they are inherently volatile. But this high price volatility will subside over time with massive adoption according to observers. For investors, the idea is to learn how to master it in order to be able to capitalize on these price fluctuations. This mainly involves knowledge of the market. You have to learn, take your time and understand your risk tolerance. But crypto remains a legitimate investment in any case.
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