Would Crypto Remain Investing-Worthy in 2023?

It is no secret that the past year has not been good for cryptocurrency. But, as 2023 has seen a bull market, interest in cryptocurrencies has slowly increased. In particular, after more than three months, Bitcoin has surpassed 28k for the first time this year. You’re not the only one who is anxious about the market right now. But should you continue to invest?

In addition to providing you with some cryptocurrency price predictions for the near future, this article also includes three arguments in favor of continuing to use cryptocurrency in 2023 and one against it.

Why should you take the crypto market into consideration for investment in 2023?

Low price with great potential to go higher

At its height, the price of Bitcoin was close to $70,000 per token, while the price of Ethereum was close to $5,000. Bitcoin is currently trading for little around $28,000, while Ethereum is worth about $1,800. There may not be a better opportunity than this one if you’ve been seeking a cheaper period to invest in cryptocurrencies. Currently, the crypto market is effectively on clearance, making it easy to stock up on high-quality purchases for a significant discount.

2023 comes with a bull market

Naturally, no one can forecast when the Bitcoin will regain its all-time high. Yet, the start of 2023 exhibits some resurgence indications following the year of slump in 2022. Moreover, the worst year for digital assets was not 2022. In 2018, ETH had a 95% annual loss. If you invest while it is at its lowest, you might get an almost 45x return in just three years.

However, it’s unknown what crypto’s future contains, and it’s possible that there won’t be another rise like the one that occurred in 2020–2021. Yet even if cryptocurrency prices don’t rise to their previous highs any time soon, investing at bargain rates now might make even a modest increase profitable.

You may miss the once-in-a-lifetime opportunity

Think about which of these choices you’d regret more when determining whether to invest: investing now and risking financial loss if cryptocurrency fails, or not investing and missing out on the investment of a lifetime if cryptocurrency succeeds.

To be clear, this does not imply that you should put all of your money in cryptocurrencies. It’s vital to buy wisely and just invest what you can afford, just like with any investment. But, for some individuals, it’s worth taking a little financial risk to prevent regretting not seizing this possibility.

Why is investing in cryptocurrency not for you in 2023?

For all its potential, crypto nevertheless entails a tremendous level of danger. There is now no way to predict whether cryptocurrencies will be successful, and there is always a danger that you might lose any money you invest. The greatest time to buy may not be right now if money is tight.

Also, this investment is infamous for having high volatility. It can go through nauseating ups and downs even when things are going well. It’s OK that not all investors have the stomach for cryptocurrency. You might be better off staying with equities for the time being if you know that degree of volatility would cause you to lose sleep.

Because the future of cryptocurrencies remains hazy, your decision to invest today will be heavily influenced by your risk tolerance and personal preferences. Yet, if a recovery is imminent, this may be one of the finest times to purchase.

Should you invest in cryptocurrency?

Due to the low price correlations that cryptocurrencies like Bitcoin have traditionally had with the US stock market, owning some can help you diversify your portfolio. If you think that people will use cryptocurrencies more often in the future, it makes sense for you to directly purchase some as part of a diversified investment portfolio. Be careful to have an investing thesis outlining why each cryptocurrency you buy in will endure the test of time. You ought to be able to manage the investment risk as part of your total portfolio if you conduct adequate research and learn as much as you can about how to invest in cryptocurrencies.