If you had an investment firm, how would you advise your clients to buy during the bear market? After the hyped ascension of Bitcoin and the crash of the whole market, cryptos are seeing their best days now. 2018 basically wiped out more than half of the value of the market and most crypto investors are very wary now.
If 2017 was the year of blind faith, 2018 is certainly the year of the fear. Bitcoin (BTC) is down 54% and this is one of the strongest coins now. Ether (ETH went down 74%, Ripple’s XRP is down 78% and Litecoin (LTC), one of the oldest coins in the market, is down 78%. However, the one who blindly fears to lose his money never actually makes a profit, right? That is why you need good investment advice.
New Wave Capital, which was interviewed by Yahoo Finance, was launched in July and it is not scared of the bear market. According to the company, no customers closed their accounts, only more people opened it. Why? Instead of saying the whole thing about how good their services are, the CEO of the company, Eric Campbell, has focused on another aspect: he believes that bear market investors are in for the long game.
The main trick of the company is to lure regular retail investors. As the market is being regulated, most exchanges are now focusing on the so-called institutional and accredited investors, which are people with a high net worth and high annual income. This does not contemplate most of the population, so the company knows that it is offering something that can be interesting to them.
New Wave Capital’s minimum investment is $100 USD and its co-founders Alberg Cheng and Stewart Hauser have a history in working in the financial market, which they believe that can be a good thing to get clients.
Investing During The Bear Market
Everybody knows that investing during a bear market is risky because you are mostly playing a very risky game by doing so. Nobody knows how down the market can go, so investors that appear at this time have some trust in cryptos, that is for sure.
Campbell affirms that the secret is not to follow the trend of believing in Bitcoin and to invest in small-cap coins instead. The company currently has a total of 15 cryptos: Bitcoin, Ether, XRP, Bitcoin Cash, Stellar Lumen, Litecoin, Ethereum Classic, Zcash, OmiseGo, Golem, TenX, Numeraire, Civic, Basic Attention Token and 0x.
While some of these options are very high profile and represent the top tokens of the market, most of them are from promising small tokens and they believe that these will be the tokens that will rise in price as soon as the market starts to get bullish again.
Will The Bear Marke Last?
Nobody is really sure how much time the bear market will last. Some people affirm that there is time for a bull run this year, but most people know that this is a very far-fetched theory. Some are still waiting for the U. S. Securities and Exchange Commission (SEC) to approve the long-awaited Bitcoin ETF, but the truth is that it is difficult to know.
Some other people are believing that the 10 year anniversary of Bitcoin will make the prices rise again, but this is a rather weak theory to end the bear market for good, as may only cause a small spike in prices.
Cheng believes that part of the downtrend was caused by the hype and because everybody wanted to use the blockchain for everything but most of the ideas were pretty bad. This is why he believes that the main secret is to invest in areas that can really be improved by the blockchain for real.
When will the bull market start again? Will it ever do? Nobody knows, but most people believe that there is still a bull run just around the corner and the people at New Wave Capital agree with that, they just believe that you better buy altcoins than Bitcoin is you really expect to see those 1000% increases in price again.