In the age of digitization, crypto investment has taken the world by storm. The flexibility, scalability, and accessibility provided by digital assets have attracted several investors around the world to enter the realm of crypto.
However, the increasing popularity of cryptos has also invited speculations, myths, and assumptions. While a large section of society feels that this is the right time to invest in crypto and reap maximum benefits, some feel it is no longer a conducive investment option.
Wells Fargo, a US banking giant, recently published a report stating that it is not too late for potential investors to invest in cryptos. The financial institution took a clear stand in the matter, saying that it is, in fact, fairly early to make a cryptocurrency investment. It also drew parallels between the crypto trend and the massive adoption of the internet in the mid-to-late ’90s.
The Argument Against It Being “Too Late To Invest” In Crypto
The report dismisses the theory propounding that the current times are too late to make crypto investments. It reads, “We believe that focusing too much on past performance, especially with cryptocurrencies, can be misleading to new investors.“
The report uses the example of Bitcoin to support this argument. It states that the price of Bitcoin has compounded at an annual rate of 216% since the first Bitcoin transaction took place back in 2010. Wells Fargo believes that these exceptional crypto gains have attracted a lot of media attention over time, leading to enviable stories being spread worldwide.
The banking giant also believes that the performance numbers in the case of cryptocurrencies are “skewed because most cryptocurrencies evolved from virtually zero.” The report talks about cryptocurrencies being relatively young investment spaces, with most currencies being less than five years old. The report adds that cryptocurrency is often difficult for people to understand and invest in. Wells Fargo believes that one of the major reasons why crypto is difficult to be understood is the complicated technology (blockchain) behind it. However, the report stresses the opinion that crypto still has a long way to go before it is “too late” for people to invest.
If It Is Not Too Late, Is It Too Early?
Interestingly, Wells Fargo believes that it is “early, but not too early” for people to invest in crypto. The banking institution states that this is the ideal time for investors to educate themselves about the emerging trend and make the most of it. The report mentions that the claim is supported by the fact that the crypto adoption rates have increased very quickly over a short period.
Similarities With The Early Days Of The Internet
In the report, Wells Fargo states that the increasing popularity and adoption of crypto can be equated to the popularity of the internet during the mid-to-late 1990s. Just like the internet, the world has started embracing new technology and trends that are here to stay. The banking giant believes that the rising crypto adoption rates will not look back anytime soon, similar to how the world welcomed the internet.
What Should The Investors Do?
Along with stating its argument, Wells Fargo provided three important tips for investors while dealing with cryptocurrencies. The tips are as follows:
The financial institution has asked all aspiring and existing crypto investors to have patience. The report reads, “There is no need to rush, as most of the opportunity lies before us, not behind us.”
Along with being patient, Wells Fargo asks crypto investors to be practical, wise, and rational in their approach. The report states that the technology behind cryptocurrencies is complicated, and the risks are high. Having limited investment options at their disposal, investors are advised to make smart and calculated moves.
Finally, the report suggests crypto investors be careful while buying, selling, and trading their digital assets. It acknowledges the fact that early-stage investment trends often involve “violent boom and bust cycles“, making it important to tread carefully. Wells Fargo believes that investors can optimize crypto by evaluating risks and making careful investments.
Aim For Long-term Crypto Investment
The Wells Fargo report makes it clear that it is certainly not too late for you to invest in crypto. If you want to play the long game and tap the opportunities crypto has for you, start your crypto investment journey with Zebpay today. We help you fulfill your long-term investment goals by allowing you to choose from a wide range of cryptos and use them in a hassle-free manner.
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