The cryptocurrency space is in high spirits as the third Bitcoin halving approaches. Investors and BTC holders alike also have high expectations as they expect a bull run both before and after the lockdown.
Such expectations, however, should be held with caution as the bull run may not be all roses. This is the position of Morgan Creek founding partner and host of The Pomp Podcast, Anthony Pompliano.
According to Pompliano, Bitcoin is a very volatile asset, which means it experiences wild price swings that may bring huge rewards or losses. This can cause a complete loss of invested funds particularly for traders and so they should invest only what they can afford to lose.
Important message as we enter the next Bitcoin bull market:
– BTC is very volatile
– You can lose all of your money
– Only invest what is ok to lose
– Twitter is not investment advice
– Don’t buy BTC with credit cards
– Keep low time preference
– Do your own research
— Pomp
(@APompliano) May 7, 2020
Although there is a good number of traders on Crypto Twitter who talk about trading and analysts who give analyses on cryptocurrencies, he says this should not be considered as investment advice, but investors and traders should do their own research.
There is a growing number of new investors entering the Bitcoin space ahead of the halving as well. Some of them are buying BTC for the first time and while exchanges have provided several options for buying BTC including the use of credit cards, Pompliano says this is not the best choice for buying the asset. Other methods though might be less convenient, are preferred for the safety of users.
Lastly, Bitcoin is a long term investment, and investors are advised to keep low time preference and exercise patience as it may take some significant amount of time to yield the kind of profits they seek. The asset is currently showing significant promise, rising from just over $9,000 earlier today, to $9,800 at the time of writing this article.
This upward movement is expected to continue especially as the halving draws nearer and even more after that. However, paying attention to this word of caution and approaching the coming days with admonition may prove to be helpful in the long run.
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