The banking giant Wells Fargo which has its headquarters in US, has shared some tips for the cryptocurrency investors who are looking to invest in crypto. The report is released by the bank’s Investment Institute answering questions which are asked by the crypto investors from themselves.
*** Is it too early or too late to jump on the crypto train?
In the report, authors have advised those new crypto investors to be patient, careful and prudent.
Patience
According to the analysis, the investors don’t need to rush for investment, as mostly the opportunities lies before investors. Evaluating the argument of “too late to invest”, the analysis has mentioned that the price of Bitcoin has compounded at an annual rate of 216% since it’s first recorded transaction back in 2010.
On the contrary, over the period of same years, the total returns of S&P 500 index has shown a compound of 16% per year.
Prudence
According to the authors, they see the cryptoassets at a stage of “early, but not too early” to invest, and therefore they say that it’s good to have some knowledge before investment, as they see the investment options to be a little behind and are continuing to mature.
Carefulness
The analysts also stated that the users of cryptocurrency around the globe are growing at a faster rate and the cryptocurrencies look to be heading towards a hyper adoption phase which is in resemblance to the one which was experienced by online businesses in the mid to late 1990s.
The writers are cautioning the cryptocurrency investors to be careful and don’t forget the lessons from 1990s.
The analysts concluded that investments on early stage is often filled with the brutal boom and bust cycles and there are more than 16K cryptos that exist today and many might fail.