Is it wise to invest in cryptocurrencies now?

The cryptocurrency market is in turmoil. Following the collapse of stable coin TerraUSD and its sister currency Luna, the valuation of many other popular currencies, including bitcoin and ether, tanked. No one is sure when the crypto market will make a comeback. Experts have urged investors to be cautious.

We talked to a few crypto experts in Asia for advice on crypto investments at a time when the global economy is undergoing a rough patch.

Below are their responses and comments:

Bobby OngCo-founder & COO, CoinGecko

Not just crypto, but financial markets are in a period of significant uncertainty, owing to global geopolitical and macroeconomic turmoil. We anticipate that these adverse conditions may well continue, which will wreak havoc across all asset classes.

The crypto market is certainly not detached from this challenging environment. While the market has dipped significantly in the last six months, investors should make sure that if they’re planning to take a long position, they’ve also taken the necessary risk management measures such as diversification and hedging.

Kenrick Drijkoningen, General Partner at LuneX Ventures & Play Future Fund

It is up to individual risk appetite. I believe many tech stocks are down worse than what bitcoin has been to date, so there’s risk everywhere.

Chris Sirise, Partner at Saison Capital 

Proper risk management is important. Events like these serve as a reminder that building an understanding of cryptocurrency fundamentals is a constant and ongoing process. The pace at which investor education develops must match the evolution of the technology. 

Eddie Thai, General Partner, Ascend Vietnam Ventures

Don’t believe anybody who says they can return 30 per cent regularly and risk-free, and ensure that projects that reach a certain scale have sufficient safeguards in place. Also, diversify your investments; in crypto specifically, only invest what you can afford to lose.

Photo by Dash Cryptocurrency on Unsplash