Cryptos vs Other Digital Assets: The better bet for fresh investors

Crypto market saw mass exodus following U.S. Fed's decision to start hiking interest rate. Bitcoin that once traded near $67,000 today it is at $21,000. Should you consider investing in cryptos or other digital assets? Find out what experts have to say.
Cryptos vs Other Digital Assets: The better bet for fresh investors

Cryptos vs Other Digital Assets: The better bet for fresh investors

Photo : AP
KEY HIGHLIGHTS
  • Invest In Well-established Digital Assets Like Bitcoin, Ethereum
  • One Can Buy Crypto Currency On Dips, But Advice A Caution
  • Not More Than 10-15% Could Be Allocated To Crypto Currency
Mumbai: After crashing to $18,000 mark, Bitcoin is gradually regaining its strength! The Crypto Bulls believe bitcoins will rally from here on and will be in power by end of FY23.
With the plethora of options available in virtual digital asset world, like NFT Token, Cyrpto Currencies like Ethereum, Bitcoin, Binance USD etc. it's quite confusing which one should you venture in to.
Before we dive into investments let's know what are these assets.
Cryptocurrency: A type of digital asset that is based on a network that spans a huge number of computers. They operate without a regulating authority and rely on a decentralised system to track transactions and create new units. Bitcoin was the first cryptocurrency, founded in 2009, and it is still the most well-known today.
Non-fungible tokens (NFTs): Cryptographic assets that are based on blockchain technology and have unique identification codes and metadata that distinguish them from one another. These tokens can be used to represent real-world assets such as artwork and real estate.
Now back to the big question - should you invest in virtual digital assets?
Speaking on The ET Money Show, Naimish Sanghvi, CEO of Coin Crunch India advised fresh investors to invest very small amounts in the well-established assets like Bitcoin or Ethereum. He said, "These assets are very volatile and one shouldn't lose sleep if the market goes south. Always, invest according to your risk appetite."
Since November 2021 peak of $67,000, Bitcoin is currently down nearly 75 percent. Naimish Sanghvi believes just like one makes the most of the fall in traditional equity market, one can exercise the same strategy in crypto world, however "Tread with Caution."
Gaurav Dahake, Founder & CEO of BITBNS expects Bitcoin will be under pressure in short-term, but the long-term prospects of the assets remain intact. He advices not more than 10 percent -15 percent portfolio allocation towards crypto assets.
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