The Federal Reserve recently reported that the United States economy is likely to take a turn for the worse with a potential recession in the coming months. With this in mind, many investors are wondering if they should still buy Bitcoin, Ethereum, and other cryptocurrencies.

Cryptocurrencies have been highly volatile this year, with bitcoin and Ethereum dipping significantly in February and March as the global pandemic unfolded. However, prices have been gradually increasing since June, and as of November 2020, Bitcoin is up nearly 186% year-over-year and Ethereum is up over 321%.

Cryptocurrencies have pushed past their previous highs this year, which is an encouraging sign for those looking to invest in them. Many investors believe cryptocurrencies are a hedge against traditional investments during uncertain economic times. Some experts even believe that the impending recession could further bolster the price of Bitcoin and Ethereum.

Although it may be tempting to invest in cryptocurrencies when the economy is not doing well, analysts caution that there are still risks involved. Cryptocurrencies are largely unregulated, which means buying and trading them comes with significant risk. It's important to understand the risks and do your research before investing in any digital asset.

It's also important to note that investing in cryptocurrencies should be done as part of a diversified portfolio. You should have a mix of investments that have different risk profiles and exponents of returns. In this way, investing in cryptocurrencies can reduce risk while still providing potential upside.

Ultimately, whether or not to invest in Bitcoin, Ethereum, and other cryptocurrencies is a personal decision. Crypto investors should not be swayed by predictions of a potential recession but must instead evaluate the risks and rewards of investing in the assets themselves. It's important to remember that past performance is not necessarily indicative of future results and that cryptocurrencies may not be suitable for everyone. With proper research and due diligence, however, many investors still believe that buying and trading cryptocurrencies during turbulent economic times can still yield positive returns.



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