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The old saying, “it’s not about timing the market, but about time in the market”, has been proven true over and over again. And, while research has shown that those who stay invested in a diversified portfolio over the long run generally do better, this doesn’t mean investors should ignore major events such as the introduction of new regulations.
Timing the market right now may make sense for two reasons. The first is premised on the fact that once US and SA cryptocurrency regulations are introduced, large institutional investors will enter the market and drive prices up (basic demand and supply principles). The second is: if you consider the current price entry point, buying the dip may be a great option as pricing hasn’t been this low since May 2021.
Undoubtedly, selecting the right cryptocurrency may be one of the hardest challenges for most novice investors. However, we are confident our solution will position investors well once regulations are introduced.
For more information on Jaltech’s cryptocurrency basket click here.
In 2021, we introduced a cryptocurrency basket, which provides investors with diverse exposure across cryptocurrencies that have already reached a market cap of $2.5bn. The significance of a $2.5bn market cap is that once regulations are introduced, it’s highly likely institutional investors will first enter the market through large-cap cryptocurrencies, thereby driving the price up.
Andoni Nicolau, the head of Digital Investments at Jaltech, says, “By having exposure to large-cap cryptocurrencies, investors will increase the likelihood of capturing industry winners and will position investors well once pension funds and other financial institutions inevitably enter the market.”
Jaltech expects that the cryptocurrency market will continue to outperform traditional markets over the long run. The key is for investors to allocate a portion of their portfolio to cryptocurrencies and be willing to stomach the volatility.
For more information on Jaltech’s cryptocurrency basket, click here.
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