The cryptocurrency market has reversed its course. And is positive today, but may not be for long after the U.S. inflation data is released. If you don’t need access to your money, now is the best time to invest. According to a macro researcher at Geeks.live, the cryptocurrency market exhibited a V-shaped reversal last week, causing a volatility collapse or “waterfall,” so the context is best suited for buyers who prefer relatively stable prices.
Sell in May and go away, experts say. You’ve surely heard it before. It’s an old market adage that recommends investors close their positions in May and walk away from the markets until October. The period between May and October is considered weaker than the period between November and April, even if it tends to deliver positive returns. You’re better off buying in May and going away. Sitting out on the cryptocurrency market during the summer months might sound tempting, but think twice about doing so.
If you only hold Bitcoin, start buying Ethereum too – it’s a fantastic investment. It tends to outperform BTC over a bull run, as evidenced by the ETH coin price . Ethereum powers some of cryptocurrency’s latest innovations, like decentralized apps, which disrupt business models and invent new ones.
As we’re slowly and steadily getting closer to summer, the battle for supremacy is underway. If you’re skeptical about cryptocurrency, there’s no longer a need to wait for signs of consolidation before committing capital.
Bitcoin is sometimes called digital gold, while Ethereum is digital silver…in plain English, one is a thriving digital asset, while the other is a technological pioneer, so it’s hard, if not impossible, to figure out which one will excel in the months to come.
If You Haven’t Asked ChatGPT for Financial Advice Yet, Do It Now
ChatGPT can help ramp up your financial fitness and identify the right questions to ask a human advisor. You’re now a real adult. And, what’s more – you need a solid plan if you want to invest in cryptocurrency.
Many use the ChatGPT for financial advice (e.g., credit cards), mostly Gen Zers and Millennials, so if you haven’t done it yet, you’re in the minority. Of course, the generative AI tool doesn’t have all the answers. But when it does, it can offer incorrect, inaccurate, or incomplete information.
Finbold dug deeper into the matter and asked ChatGPT which cryptocurrency is a better buy for the summer of 2024. Can you guess the answer? Well, the free-to-use AI system said the decision to invest depends on personal preferences and risk tolerance for the most part, with BTC optimal for investors seeking stable, long-term returns. More importantly, investing in ETH is fit for those who seek to harness the power of innovation.
Self-awareness is one of the best assets in your investor toolkit. Therefore, understand why you make the decisions you make (and how you react to situations in the cryptocurrency market). You don’t have to have gray hair or wear a suit.
But you must have a good appreciation of the type of investor you are if you want to achieve your money goals. At the end of the day, you can spread out your risk by investing in Bitcoin and Ethereum alike – it’s an approach that makes both BTC bulls and ETH maximalists happy.
Adding more digital assets to your portfolio helps capture the value proposition of different blockchain technologies, not to mention that you can increase risk-adjusted returns so that no investment hurts you too much. Bitcoin offers stability when it comes to price, demand, and supply. On the other hand, Ethereum provides access to a blockchain ecosystem that’s changing really fast, with somewhat higher rewards.
If Spot Ethereum ETFs Materialize, Then You’d Better Watch Out
Amid the hype around the Bitcoin halving, the quadrennial quirk of the calendar, we tend to forget about Ethereum, which faces a decisive moment with the upcoming ETF approval. Investors don’t expect the SEC to approve spot-based Ethereum ETFs this month.
Still, J.P. Morgan argues the template is likely to be similar to that of BTC: with futures ETFs already approved, the SEC will eventually approve spot Ethereum ETFs. It’s just that we’ll have to wait until late 2025 or early 2026.
If the SEC accepts spot Ethereum ETFs next week, you can trust the outcome will be spectacular. Bitcoin ETFs have succeeded in attracting tens of billions of dollars within the first months of launch, luring in both retail and institutional investors, who can build a portfolio that better meets their needs.
For better or worse, ETFs reflect the performance of the assets they mirror – which can mean imitating their security or volatility. With excitement about the new financial instruments, BTC reached a record high in March of over $73,000.
The SEC approval of spot Ethereum ETFs would benefit all investors. By investing in ETFs, they can avoid complexity and embrace simplicity, meaning investors no longer have to set up digital wallets or make a fuss about the security and storage of their holdings.
What’s more, ETFs are supervised by financial watchdogs. Spot Ethereum ETFs are more than just a cryptocurrency investment because they represent a stake in the digital revolution amid the burgeoning realm of blockchain technology.
Wrapping It Up
If you were thinking about selling in May and going away, don’t. Just don’t. It makes sense to assume this strategy has a better shot of working during periods of market correction, but it often fails, so if you’re unsure about the suitability of an investing decision, you’d better reach out to an advisor.
The choice between Bitcoin and Ethereum should be on the same wavelength as your goals, risk tolerance, and interest in the technology that enables the existence of cryptocurrency.
Yes, you can invest in BTC and ETH at the same time. Adding a bit of diversification into the mix helps reduce volatility in your portfolio, so you can avoid a huge crash and feel better prepared for the future.
