Best Investment Strategy to Follow During the Pandemic
As we all know due to the Coronavirus, economies around the world are badly affected due to which there is a major growth in the digital financial sector. More businesses and individuals are now switching their daily operations to a digitized way. To know why they are doing so and to understand the concept of investing in digital finance, we reached out to a few industry leaders and asked them to share their opinions on how we can design our own investment strategy. Also, we asked them about the assets that we need to focus on in the near future. Here is what they had to say.
David Hamilton | Long Time Bitcoinist and Cryptocurrency Journalist
The Coronavirus appears to have shined the spotlight on these unique financial instruments. Thankfully, the pandemic came at a time when cryptocurrencies such as Bitcoin and Ethereum have maintained their blockchain for close to a decade. This record of unbroken trust continues to make the crypto market an appealing option for Today’s investors.
Patrick Stanley | Head of Growth at Blockstack
Bitcoin is schmuck insurance. When governments overprint money (as we are seeing today) Bitcoin could be seen as a store of value where it can’t be inflated away. There will only be 21m bitcoins ever. A lot of people are exiting USD, real estate, and the stock market and putting it into BTC because of its reliability. It’s like digital gold except there is a huge information asymmetry about its value (i.e. not everyone knows about it or how to get it), so it’s still early days for price discovery.
Jay Zhou | Blockchain Entrepreneur | Angel Investor | Co-founder Loopring
I think because of the covid#19 many of us have been through a tough time. In order to improve our productivity and efficiency. More and more businesses are turning into an online or virtual business. Thus, digital currency will become future money or sound money. To be able to better understand this, I think bitcoin is the best study case for a beginner to learn. Bitcoin price has raised from 7200 to 11500-ish this year. 60% gain. And it is very liquid and legit now in most countries. My takeaway is to start to buy a bitcoin, it’s a digital good, with a bit of volatility.
Jen Buakaew | Head of Business Tokenization, GMO Internet INC
In times of uncertainty, I recommend investing in Bitcoin and other prominent cryptocurrencies as alternative investments or non-correlated assets” These alternative investments’ performance usually doesn’t follow that of more traditional asset classes such as stocks and bonds. During a pandemic such as that of Covid-19, amidst people’s fear, you want to invest in assets that move in the opposite direction of traditional investments, as an effective hedge strategy against market downturns.
ImNotTheWolf aka WolfOfPoloniex | Trader | Content Creator | Podcast
I think a good investment strategy during these times is to basically try and “swim with the whales”. All of the large institutional firms & smart money is looking at the US Federal Reserve’s moves to keep the market propped up, however, if the ‘FED’ decides to sell off, then the trend will change as the large institutional players begin to hedge their holdings by shorting the market. You can see what the FED is doing by visiting the website.
As for which assets to invest in, I personally prefer commodities like Gold or large Indices such as the S&P500. These ‘giants’ move relatively slow compared to individual equities, but still clearly mimic the momentum shifts caused by the FED. If you’re looking for something a bit more volatile & retail-friendly, then Bitcoin is a good digital commodity.
We would like to thank you all for sharing your thoughts and comments on the best investment strategy that we must follow while going through a worldwide pandemic. In situations like this, when businesses and individuals are forcefully pushed into an economic downtime, it becomes very important for them to design an investment strategy that is not only profitable in the future but also helps the investor in coming out of these rough times without any losses.
Therefore, we advise our readers to follow these investment strategies put out by some of the most brilliant investor minds in the world. In addition to this, we advise you all to diversify your portfolio among several types of assets, especially gold and silver. This is done so that when the market goes down because of uncontrollable political and socio-economic factors if the value of one type of asset goes down, the value of other assets can easily balance all the negatives.
OroPocket is the universal alternate investment platform, allowing users to buy, sell, and trade-in digital assets, instantly. With the banks and economies failing, we want the end-user to become smarter about their wealth. So, they will have more options about their investments while enjoying liquidity on the same. With OroPocket, the users can set up a Gold and Silver AIP within a matter of five minutes.
All they need to do is download the OroPocket mobile application and sign up. Select the amount of gold or silver that you want to invest in and the frequency of your investments. Lastly, make the payment through one of the available payment options, and you are done! Gold and Silver should occupy at least 10% of your investment portfolio. We are saying this because investors believe that gold and silver-based diversification of your portfolio helps you in beating market downturns like inflation and interest rates.