Tech Crunch Pro Tech Crunch Pro
  • How To
  • What Is
  • Technology
  • Telecom
  • Gadgets
  • Reviews
Tech Crunch Pro Tech Crunch Pro
Tech Crunch Pro Tech Crunch Pro
  • How To
  • What Is
  • Technology
  • Telecom
  • Gadgets
  • Reviews
Home Blog Others Is Now the Best Time to Invest in Crypto?
  • Others

Is Now the Best Time to Invest in Crypto?

  • June 21, 2022
  • tech crunch pro
Is Now the Best Time to Invest in Crypto_
Total
0
Shares
0
0
0

We’ve seen in recent times cryptocurrency prices crash again, with Bitcoin falling to its lowest level since December 2020. These drops follow similar price movements one month earlier.

Bitcoin prices fell below 9% recently to $20,000.530 following a weekend when the crypto market lost more than $200 billion and the U.S. crypto lender Celsius Network suspended all withdrawals.

Ethereum (ETH), also dropped around 11 % over the past one-day to around $1000. This is down from $1,400 resistance point. Cardano (ADA), which fell around 11.50% to $0.453698, also suffered a similar fate. It has fallen by more than 25% in the recent times.

Investors may be seeking a piece in the volatile crypto market to take advantage of an investment strategy that encourages “buy the dip” rather than long-term bear markets.

Table of Contents

  • Here are some tips and tricks to help you buy cryptocurrency during a market crash.
    • Buy the Dip
    • Gather Crypto Losses to Lower Taxes
    • Make Your Crypto Work for You
    • Buy Proven Assets at High Discounts

Here are some tips and tricks to help you buy cryptocurrency during a market crash.

Buy the Dip

“Buy the dip” purchase can yield impressive returns, although it is considered to be easier said than done since this strategy requires an investor to be able to accurately time the market. Market experts describe this as extremely difficult.

When investors “buy the dip,” they want to buy a stock after it has dropped from its recent high. They think that the price drop is temporary or just a short-term fluke and that it’s a good time to buy shares at a discount.

Gather Crypto Losses to Lower Taxes

When it comes to lowering your taxes, cryptocurrencies can be a great way to easily “harvest losses” that can be used as tax deductions or to offset other investment gains. Cryptocurrencies have always been volatile, and smart investors can use this constant state of change to their advantage. When big changes happen, like the 30% drop right now, it’s very smart to take a loss if you can. Say you bought Bitcoin in November when it was at its highest price of $69,000 per coin. Right now, Bitcoin is worth about $38,000 per coin.

You can trade that Bitcoin for a stablecoin or any other cryptocurrency right now, and then buy that Bitcoin back in a few minutes. There is no “wash sale rule” that says you have to wait 30 days before you can buy it back. Using the above example, you can record the 45% drop in value on the blockchain and get a $31,000 loss that you can spread out over many years on your tax returns.

The IRS lets you deduct up to $3,000 worth of a capital loss from your regular income in a given tax season. The rest of your extra losses can be carried over into future tax years indefinitely until you have none left. Using this unique feature of crypto is a legal and very effective way to intentionally harvest losses on purpose by locking in a tax offset against other gains you may have made. But the government could take away this crypto tax benefit at any time, so take advantage of it while you can — make sure to check with your accountant or tax professional.

Make Your Crypto Work for You

If you have several different crypto coins or tokens in your portfolio, you should have a look at different automated cryptocurrencies tools such as Bitcoin Apex, where you can choose from many different coins, such as Cardano, Ethereum, Solana, Polygon, Cosmos, and more. The annual percentage yields for these coins range from 5% to 50%, depending on how popular they are.

To get those high returns, you’ll need to “stake,” or put your crypto asset in a pool with other investors’ crypto assets. Your cryptocurrencies give other people the money, or “liquidity,” they need to complete transactions.

Buy Proven Assets at High Discounts

When it comes to lowering your taxes, cryptocurrencies can be a great way to easily “harvest losses” that can be used as tax deductions or to offset other investment gains.

Cryptocurrencies have always been volatile, and smart investors can use this constant state of change to their advantage. When big changes happen, like the 30 percent drop right now, it’s very smart to take a loss if you can. Say you bought Bitcoin in November when it was at its highest price of $69,000 per coin. Right now, Bitcoin is worth about $38,000 per coin.

You can trade that Bitcoin for a stablecoin or any other cryptocurrency right now, and then buy that Bitcoin back in a few minutes. There is no “wash sale rule” that says you have to wait 30 days before you can buy it back. Using the above example, you can record the 45 percent drop in value on the blockchain and get a $31,000 loss that you can spread out over many years on your tax returns.

The IRS lets you deduct up to $3,000 of a capital loss from your regular income in a given tax season. The rest of your extra losses can be carried over into future tax years indefinitely, until you have none left. Using this unique feature of crypto is a legal and very effective way to harvest losses on purpose by locking in a tax offset against other gains you may have made. But the government could take away this crypto tax benefit at any time, so take advantage of it while you can — make sure to check with your accountant or tax professional.

The time to buy Bitcoin was not on the runup to its all-time high of $69,000 this past November. It was during the pandemic-induced market panic in March 2020, when it crashed to $4,000 per coin.

Life-changing fortunes are made during bear markets by making steely investments in high-quality, undervalued assets when others are panic selling. That’s true for any type of investment, but don’t take my word for it — the Oracle of Omaha has proven it time and time again.

Review Is Now the Best Time to Invest in Crypto?. Cancel reply

Your email address will not be published. Required fields are marked *

Total
0
Shares
Share 0
Tweet 0
Pin it 0
tech crunch pro

Previous Article
DCA as an Alternative Investment Strategy
  • General

DCA as an Alternative Investment Strategy

  • June 21, 2022
  • tech crunch pro
View Post
Next Article
How to Protect Yourself Against Crypto Volatility
  • Others

How to Protect Yourself Against Crypto Volatility

  • June 21, 2022
  • tech crunch pro
View Post
You May Also Like
Choosing a Blockchain PR Agency
View Post
  • Others

Choosing a Blockchain PR Agency

  • tech crunch pro
  • January 7, 2023
Using KuCoin Bots to Earn Passive Income
View Post
  • Others

Using KuCoin Bots to Earn Passive Income

  • tech crunch pro
  • January 7, 2023
4 Great Places to Buy Bitcoin
View Post
  • Others

4 Great Places to Buy Bitcoin

  • tech crunch pro
  • December 14, 2022
TOP Website with Special Features
View Post
  • Others

TOP Website with Special Features

  • tech crunch pro
  • December 12, 2022
Do you need to check the list of the best forex brokers?
View Post
  • Others

Do you need to check the list of the best forex brokers?

  • tech crunch pro
  • November 30, 2022
How to Become Good at Digital Currency Exchange
View Post
  • Others

How to Become Good at Digital Currency Exchange

  • tech crunch pro
  • November 23, 2022
Powerful crypto platform: xbitcoin
View Post
  • Others

Powerful crypto platform: xbitcoin

  • tech crunch pro
  • November 11, 2022
What Expansions Are Included in World of Warcraft?
View Post
  • Others

What Expansions Are Included in World of Warcraft?

  • tech crunch pro
  • October 26, 2022
Popular Post
  • swyft Swyft SeriescrooktechCrunch, a company that recently raised $17.5 million in a Series A round of funding, assists businesses of all sizes
    • Tech Crunch Pro

    Uncovering the Innovations behind the Swyft Series and CrookTech

      • Tech Crunch Pro
    View Post
  • How to Use Product Videos for Ecommerce
    • Business

    How to Use Product Videos for Ecommerce

      • Business
    View Post
  • Futures Market Making
    • General

    Futures Market Making

      • General
    View Post
  • Choosing a Blockchain PR Agency
    • Others

    Choosing a Blockchain PR Agency

      • Others
    View Post
  • Using KuCoin Bots to Earn Passive Income
    • Others

    Using KuCoin Bots to Earn Passive Income

      • Others
    View Post
Recent Post
  • swyft Swyft SeriescrooktechCrunch, a company that recently raised $17.5 million in a Series A round of funding, assists businesses of all sizes
    • Tech Crunch Pro
    Uncovering the Innovations behind the Swyft Series and CrookTech
  • How to Use Product Videos for Ecommerce
    • Business
    How to Use Product Videos for Ecommerce
  • Futures Market Making
    • General
    Futures Market Making
  • Choosing a Blockchain PR Agency
    • Others
    Choosing a Blockchain PR Agency
  • Using KuCoin Bots to Earn Passive Income
    • Others
    Using KuCoin Bots to Earn Passive Income
  • Esports
    • General
    6 Things to Consider Before Going Pro in Esports
  • 4 Great Places to Buy Bitcoin
    • Others
    4 Great Places to Buy Bitcoin
  • 4 Pieces of Information Businesses Should Include In Their Reminder Calls
    • Business
    4 Pieces of Information Businesses Should Include In Their Reminder Calls
  • Ways Your Company Can Switch to Remote Working
    • Technology
    Ways Your Company Can Switch to Remote Working
  • TOP Website with Special Features
    • Others
    TOP Website with Special Features
Recent Post
  • swyft Swyft SeriescrooktechCrunch, a company that recently raised $17.5 million in a Series A round of funding, assists businesses of all sizes
    • Tech Crunch Pro

    Uncovering the Innovations behind the Swyft Series and CrookTech

      • Tech Crunch Pro
    View Post
  • How to Use Product Videos for Ecommerce
    • Business

    How to Use Product Videos for Ecommerce

      • Business
    View Post
  • Futures Market Making
    • General

    Futures Market Making

      • General
    View Post
  • Choosing a Blockchain PR Agency
    • Others

    Choosing a Blockchain PR Agency

      • Others
    View Post
  • Using KuCoin Bots to Earn Passive Income
    • Others

    Using KuCoin Bots to Earn Passive Income

      • Others
    View Post
Popular Post
  • swyft Swyft SeriescrooktechCrunch, a company that recently raised $17.5 million in a Series A round of funding, assists businesses of all sizes
    • Tech Crunch Pro
    Uncovering the Innovations behind the Swyft Series and CrookTech
  • How to Use Product Videos for Ecommerce
    • Business
    How to Use Product Videos for Ecommerce
  • Futures Market Making
    • General
    Futures Market Making
  • Choosing a Blockchain PR Agency
    • Others
    Choosing a Blockchain PR Agency
About Us

Hey! We are glad that you are interested to know about us.

Techcrunchpro.com is one of the top-notch information blogs and online tech blog. The main objective of our website is to support the viewers with effective and interesting content. We are a team of enthusiastic tech-savvy professionals strive to make resourceful online platform about tech and digital world.

Tech Crunch Pro Tech Crunch Pro
  • About Us
  • Blog
  • Write For Us
  • Contact Us
  • Privacy Policy

Input your search keywords and press Enter.