Am I “Insane” to Buy Crypto in a Bear Market?

“Welcome to Survivor: Crypto Winter!”

That’s how I opened my speech at the “Fintech on the Block” crypto conference in San Francisco in 2019.

The crowd laughed, but it was true. Those who hadn’t been shaken out of the crypto market were “survivors.”

It was fitting at the time. We’d just seen the first crypto mania go bust the year before. And we were in the middle of a brutal bear market. (Sound familiar?)

But while that crypto winter was harsh, it didn’t last. A year later, bitcoin and Ethereum had more than doubled off their lows. Two years later, investors saw gains of 100X in a few major cryptocurrencies.

My Next Wave Crypto Fortunes readers were among them.

I was recommending they buy cryptocurrencies all through the crypto winter. And here are just a few of the opportunities they had a chance to collect during the bull market of 2021:

(Click here to view larger image.)

Right now, we’re in another vicious crypto winter.

Prices are down significantly. And every day, it seems, another corrupt crypto lender is in the news for ripping off its customers. (That’s why it’s important to have someone in your corner who can help you separate the wheat from the chaff.)

It would be easy to think: “Ian, that track record is all well and good, but isn’t crypto dead?”

That’s a great question, and you might be surprised by my answer.

I’m 100% confident that crypto is NOT dead.

In fact, you might think I’m insane for doing it, but I’m continuing to keep an allocation of my portfolio in crypto. That means I’ll keep buying even if prices go lower.

Here’s why I think crypto will weather this storm, and we’ll eventually see another bull market to take us to new highs…

Crypto: A Damaged Reputation

There’s no doubt at all that crypto’s reputation is damaged…

A new CNBC survey said that just 8% of Americans have a positive view of crypto. That’s down from 19% in March. The survey also showed that Americans with a negative view of cryptos jumped to 43%. That’s up from 25% in March.

Fortunately, crypto doesn’t depend on public opinion to thrive. Because no matter what prices are doing, crypto’s underlying technology is here to stay.

Crypto represents a huge shift. It’s shaking up traditional centralized power structures — like governments that issue fiat currencies and tech oligopolies that control our digital privacy.

It’s a revolution! But like other massive changes, it won’t happen overnight.

There will be years when it looks like crypto is about to go mainstream. That’s when prices will absolutely soar.

And then there will be years, like now, when everyone doubts that future. (Bitcoin, for instance, has been declared dead 467 times.)

These booms and busts are edging us closer to mass adoption. And already, crypto allows us to:

Manage our online identity with digital wallets such as MetaMask and Phantom.
Loan and borrow assets without the need for a bank.
Redefine traditional media with assets such as nonfungible tokens and other digital collections.

This revolution won’t happen overnight. There will be more market swings as crypto heads toward mass adoption over the next decade. But make no mistake about it — crypto is here to stay.

For more details on why I’m still bullish on crypto, check out my video below. I break down how crypto started, what exactly it is and why it’s worth investing in.

Click on the play button for more.

(Click here to read a transcript.)

And if you’re a more experienced crypto trader, then I recommend my Next Wave Crypto Fortunes service. In volatile markets like these, it’s crucial to have someone in your corner to help you navigate the good, the bad and the ugly of the crypto markets.

Click here to watch my entire presentation.

Regards,

Ian KingEditor, Strategic Fortunes

P.S. If you’re not ready to commit to an entire crypto-based service, I also recommend cryptos in my Strategic Fortunes newsletter. And there’s one coin that I predict will overcome bitcoin over the next few years.

Click here to learn more about what I call the “Next Gen Coin.”

***Market Edge*: Investing Lessons From the World Cup**

I watched the World Cup final with my son on Sunday. I wasn’t particularly emotionally invested in it, as I have no real reason to support either Argentina or France.

I’m an American of mostly Welsh and English extract, and my wife is Peruvian. I’ve had some good times in Paris, and I’ve been known to gorge myself on Argentine steak. But that’s about as far as my loyalty to either country goes.

But I was at least nominally rooting for Argentina, as the country’s star player, Lionel Messi, is arguably the greatest of all time and — importantly — a class act. A truly decent man who’s overcome his share of adversity.

What a game it turned out to be…

Argentina started with a two-goal lead, which, in soccer, usually means the game is over.

But France was having none of it. French star Kylian Mbappé converted on a penalty and then followed it up a minute later to tie the game, forcing it to extra time.

Argentina scored late in extra time, making it again seem that the game was in the bag … only to have France tie it yet again with a penalty kick in the closing minutes.

After 120 minutes of intense gameplay … it ended up being settled in a penalty kick shootout.

So, what lessons can we learn from all of this?

To start, never underestimate the role of luck. The athletes gave it all they had for over two hours, only to have it settled in penalty kicks, which is about as close to a coin flip as you’re going to get in professional sports.

I’ve had investments like that. I did my research … did everything “right” but then ultimately ended up winning not because of my preparation, but because of some completely random externality — a buyout by a larger company.

I’ve also ended up losing after doing everything right for equally random reasons. It happens.

Luck is part of investing. When it goes in your favor, it’s fine to celebrate. Just don’t let it go to your head.

And likewise, when luck doesn’t go in your favor, you can’t let it get in your head. You have to return to your process and keep doing what you do.

That brings me to the second point. Argentina brutally attacked the French goal several times … but couldn’t get the ball in the goal. Until finally, they did.

You will have investments go the wrong way on you. No strategy works 100% of the time. Ever. But if you maintain good risk management, you can ride out losing streaks.

I could write volumes on risk management, and plenty of investors have. But I can summarize by saying that, for me, it mostly comes down to position sizing.

It’s rare for me to wager more than about 3% of my capital on a single stock or 10% of my capital on a single strategy. I’ll go a little higher for exceptionally high-conviction picks or for more conservative strategies. But I never bet the farm. My standard rule is to make sure any loss is one that I can recover from in a year or less.

A great success story for this strategy is Ian King. He’s shown, time and again, that you don’t need to risk a lot of money to make outsized gains — if you pick the right investments.

His Next Wave Crypto Fortunes service is a testament to this. When you can spot opportunities that run into the four-digit and even five-digit percentage gain territory like Ian does, even positions of a few hundred bucks can quickly grow into huge wins.

To learn more about how Ian’s ironclad selection process for only the best crypto opportunities, click here.

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