Stocks and Crypto Market

This time the crypto market is not doing well and almost every project is down we even don't know how long it will stay like this. Most of the projects prices are down by 70 to 80% and there is complete uncertainty about the upcoming cycle. I do not think we should expect a market reversal this year and maybe next year this should happen around the end of the year. In that case, we still have about one year to enter into the market reversal cycle if it goes as per the historical trend when after the Bitcoin halving things started to recover.

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It is very difficult for many people in the crypto market to survive and operate because there is nothing much to do and prices are almost like on this table range. A lot of people discuss this topic that they should be leaving the crypto market because it is not interesting anymore. Even some of my friends who invested in Crypto when it was doing well or said that they are considering the stock market. They are the kind of investors who invest money for a few years and take the profit. Everyone has got different financial situation so it is understood that not everyone can survive in this situation when the market is not growing at all and there is no certainty about a change in the market sentiment real soon.

Stock and Crypto Market

Some people say that they are now going to invest in the stock market because it is still better as compared to the crypto market. I have a different opinion here and I'm not denying the fact that we should diversify our portfolio so if you are investing some amount then some percentage should also be invested in the stock market. You should not invest one hundred per cent of your money in crypto unless you are enthusiastic about this and believe that crypto is going to be a revolution. There can be two situations if things go well then you will be able to make a great amount of money if you are fully in crypto. The second option will be that if the market does not do well then you are going to lose a lot and probably that situation will not be good for you. It means if you are investing your money then you should diversify to avoid the situation of loss-making and choose some valuable projects in the crypto market. Now it is up to you how much percentage you want to put in the crypto market and what amount you are going to put in the stock market.

Now crypto is very popular so there are a lot of people who have invested some amount in this market probably they did it when the market was in a bull run cycle sentiment so it is obvious that their investment has gone down. It has always been seen that when the market goes to a situation where survival is difficult for the investors then it is the time when we can expect that things will be reversing and probably will lead to the bull run cycle in the market. I still remember the time in March 2020 when Bitcoin was gone below 4000 U.S. dollars. This is the same Bitcoin that marked almost 20k US dollars and it was available for less than 4k US dollars so you can understand how the situation was for the investor at that time. Whoever took the risk to buy Bitcoin at that time has got a great opportunity to make a lot of money which I'm sure is not possible in the stock market.

My thoughts

In my opinion stock market is a good option but it is controlled by the government so we cannot expect any significant return as we get often in the crypto market. Undoubtedly with more earning potential we also have to deal with the same amount of risk but at least we have the possibility here in the crypto market unfortunately in the stock market its not there. I'm not going to move towards the stock market just because the crypto market is down because I know that sooner or later things will change and I have the patience to stay here because I invested in crypto with a long-term goal and it was for the year 2025.

I am prepared for another two years as per my goal but even if things go a bit differently then also I am ready to deal with that situation however I still believe that if somebody wants to diversify between crypto and the stock market then it can be a good idea. Everyone has different preferences and responsibilities so it is a wise decision to minimise the risk on the investment because if everything is kept in one segment and it does not work then it is going to affect the person in bad shape. I'm hopeful that this is a temporary situation in the market that can last another 1 year or so and I'm OK with the fact so I'm not going to make a move but yes stock market is also in my thoughts which I might do later but not because I am done with crypto. I will do that just because I want to diversify but whatever is invested in crypto is not going to be sold in this situation because I believe this is not the right time to do this.

Thank you

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