Crypto has a history of volatility, which can mean some investors don’t want to dip their toe in the crypto waters. But high volatility can bring with it high growth – which can reap serious rewards for long-term investors, especially those who buy low, and are willing to ride out choppy waters.
That volatility is certainly evident at the moment, with Bitcoin at its lowest level since December 2020, and Ether, the world’s second largest cryptocurrency by market cap at its lowest mark since January 2021. This dip is a great opportunity for people who are interested in buying crypto to get into the asset class, if it fits into your long-term investment plans.
Here’s what to consider if you’re buying the dip:
Do your research
Like any investment, it’s important to do your research before jumping in headfirst, even if you’re buying in a dip. When you open an account with Caleb & Brown, the world’s leading cryptocurrency brokerage, you get a personal broker who will give objective research and analysis to help guide your investment decisions. You can talk to your broker at any time, for as long as you want, without a fee. This allows you to gather all the information you need before investing, and help you mitigate the downsides of the crypto market. There’s also free access to the latest crypto market updates and news, including crypto essentials for beginner investors, and deep dives into advanced topics for later in your investment journey.
Consider a diverse portfolio
Because crypto is volatile, diversifying your crypto portfolio with different digital assets can help mitigate any risks. While many online exchanges offer trade on only 20 different cryptocurrencies, at Caleb & Brown you’ll get access to hundreds. This means clients can trade from Australian dollars or other fiat currencies, into any supported digital asset, as well as swap from one digital asset into another.
Just because you’re buying the dip doesn’t mean you should throw caution to the wind. Safety is key when investing in crypto. Caleb & Brown uses battle-tested infrastructure, Fireblocks, which is the world's leading digital asset custody platform for institutions. It’s a multi-layer technology which uses MPC cryptography and hardware isolation to secure funds from cyber-attacks, internal collusion and human error. Insurance is rare in the world of crypto, but Caleb & Brown offers insurance for assets held by Fireblocks in the unlikely circumstance of an attack. Being aware of scams when you’re buying crypto is essential. Having a personal broker gives you peace of mind, as it allows you to check that any communication you receive is legitimate.
A volatile market can mean having to buy crypto quickly and decisively. Caleb & Brown offers 24/7 trading so you can buy whenever the time is best for you. They also have fast settlement times on trades, so you can capitalise on your investment fast.
Caleb & Brown is trusted by 20,000 clients in more than 100 countries. To enquire about crypto investing with a personal broker visit calebandbrown.com or call 1800 849 149