Recession effects on Crypto: How to plan your investment portfolio

KnightElite

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Quote from: JacobKeeting on January 11, 2019, 08:27:54 AM

When economists predict upcoming recession, now is the best time to plan your investment portfolio and analyze how recession might impact cryptocurrencies. Here’s an article how portfolio could be diversified for the upcoming market crash:

https://www.signalshunt.com/recession-effects-on-crypto
[/quote
My portfolio is now down by 80% and it is because of the recession in the cryptocurrency market. I didn't manage the risks because of my lack of skill and knowledge. I am still focusing on improving my skills for me to avoid more losses.

aceptamosbitcoin

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Quote from: figmentofmyass on January 12, 2019, 02:50:49 AM

Quote from: dothebeats on January 11, 2019, 10:37:16 AM

45% on stocks and commodities combine during a recession? No, I guess I'll take a larger share for crypto and real-estate investments rather than invest anything on stocks during a recession.

regarding real estate, it really depends what region you're talking about. it's a terrible time to invest in real estate in the USA if you think a major recession is on the horizon. it's an extremely illiquid asset and the market has already seen 10 years of bull market. while the market looks healthier than stocks, it's dependent on the same factors---namely continued economic growth. any recession will damage the real estate market. just look at the 2008 crash!

i prefer holding cash and waiting for blood in the streets myself.

I fully agree with you! The best to invest in real estates is AFTER a recession, not before a recession. If you buy now a real estate, you could find yourself as a bigger looser than stocks in few years if new recession occurs. In my opinion, the best option is to buy touristic real estates in places like Europe or near sea coast in mid/after recession.

manfredmann

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Quote from: JacobKeeting on January 11, 2019, 08:27:54 AM

When economists predict upcoming recession, now is the best time to plan your investment portfolio and analyze how recession might impact cryptocurrencies. Here’s an article how portfolio could be diversified for the upcoming market crash:

https://www.signalshunt.com/recession-effects-on-crypto

I could not speculate about market crash because the current market is already on its bottom. Just take a look on the crypto market price.movement. It was stuck at the current 3K Usd range for bitcoin and this is the lowest market price recorded after the ATH. Many people are investing expecting about another bull run but it never happens. This is the saddest part that happen in the market.

NateMorisson

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There is no one perfect portfolio and you are to keep changing yours based on your own comfort level and risk tolerance capacity.

Crypdon

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It's anyone's guess right now as to which coins will pump. Is it dapps based platforms, or privacy coins, or ripple? Best option for now is to diversify with coins in each category as well as bitcoin

South Park

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Quote from: upsidedown75 on January 21, 2019, 04:04:50 AM

Best time to invest into stocks was after 2008 crisis, prices of all stocks went down so much that it was almost dead cheap compared to what it should be. Not many companies actually made a loss that year, there was companies that actually been good all year but still dropped because of the crisis and all stock market collapsing. Investing into one of the banks that caused all of this was a bad idea but even those companies recovered and made money in stocks as well.

It means if you can check the companies that dropped in price right now and see if they actually had a bad year and if they did then stay away but if you can find a company that didn't had a bad year but dropped because of the market then it is a great idea to pick up couple of stocks from that company.

This is not really different from what is happening now in the market of crypto, the best moment to invest is now after the crash but people are afraid to do it and they will not do it but in a few years they will lament not investing in bitcoin when it was priced at 3500, I really hope that people take the time to look at other markets and see this is a very common pattern and take advantage of that knowledge in this or any other market in which they could be interested.

repear7

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In my opinion, planning a financial investment portfolio has a different perspective depending on where you live. For someone who lives in a developing country the theory is very difficult to adopt because of a number of things such as geographical issues, regulations and policies. investment in property is feasible to get big points, in the future it is promising, and second, investment in cryptocurrency like bitcoin, ethereum, some people know the reason. Again, economic recession is only predictions that can stay away, no one can be sure when the day will come.

Julunguul

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one thing that is certain about the recession is that you have to really secure all your assets. Yes more or less in the FIAT clash. this also serves to avoid unwanted things. I have done this right for 3 months and if I calculate all whole total of estimation it is quite good. Works well to me, at least its better than reinvesting

upsidedown75

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Best time to invest into stocks was after 2008 crisis, prices of all stocks went down so much that it was almost dead cheap compared to what it should be. Not many companies actually made a loss that year, there was companies that actually been good all year but still dropped because of the crisis and all stock market collapsing. Investing into one of the banks that caused all of this was a bad idea but even those companies recovered and made money in stocks as well.

It means if you can check the companies that dropped in price right now and see if they actually had a bad year and if they did then stay away but if you can find a company that didn't had a bad year but dropped because of the market then it is a great idea to pick up couple of stocks from that company.

South Park

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I am terrible at Fantasy Football!!!

Quote from: figmentofmyass on January 12, 2019, 02:50:49 AM

Quote from: dothebeats on January 11, 2019, 10:37:16 AM

45% on stocks and commodities combine during a recession? No, I guess I'll take a larger share for crypto and real-estate investments rather than invest anything on stocks during a recession.

regarding real estate, it really depends what region you're talking about. it's a terrible time to invest in real estate in the USA if you think a major recession is on the horizon. it's an extremely illiquid asset and the market has already seen 10 years of bull market. while the market looks healthier than stocks, it's dependent on the same factors---namely continued economic growth. any recession will damage the real estate market. just look at the 2008 crash!

i prefer holding cash and waiting for blood in the streets myself.

I agree, it is precisely at the time of a crisis when we should not make any long term commitments, it is better to have flexibility and see which asset starts to perform well under those circumstances and then move to that asset, and if we keep our cash in the form of bitcoin then this could be an even better choice since you can have the flexibility of cash in an asset that could also perform very well and if everything goes right we will not need to do anything except hold our bitcoin to do well under those circumstances.

JohnBitCo

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Quote from: JacobKeeting on January 11, 2019, 08:27:54 AM

When economists predict upcoming recession, now is the best time to plan your investment portfolio and analyze how recession might impact cryptocurrencies. Here’s an article how portfolio could be diversified for the upcoming market crash:

https://www.signalshunt.com/recession-effects-on-crypto

Economic recession will have good effects upon bitcoins and altcoins. In case of crisis , people will want to invest in something which is decentralized and bitcoin will be the best option. Since total supply of bitcoins is very low, it would mean that even small buying of bitcoins will result in big increase of bitcoin price.
I will suggest to keep 60 percent of your portfolio in bitcoins only.

figmentofmyass

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Quote from: magneto on January 15, 2019, 06:35:37 AM

I'd definitely get out of stocks as well as real estate at this stage. If the P/L is still positive, I'd definitely get out of my position.

i don't think P/L should be a factor at all. if anything, being in the red makes it more likely you should cut losses. after all, letting losses run is the most dangerous thing one can do to their account.

there's still a decent chance that buying the blood here will pay off in the stock market. all signs are pointing to people overreacting.

Quote from: magneto on January 15, 2019, 06:35:37 AM

Bitcoin should comfortably outperform asset classes such as shares and real estate, and potentially even cash and precious metals even in a recession, since it has no ties to the traditional economy.

maybe, but who knows? bitcoin has never lived through a recession before.

horrifiedx1

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Quote from: cizatext on January 12, 2019, 02:26:56 PM

Our portfolio is going to serve as our escape root from the impending recession as predicted by economics, and at that we need to invest more into cryptocurrency because since it a decentralized assets it going to escape it and by investing in different projects that are blockchain oriented.

that is what I do now, at a price that I think is still affordable, making the risk smaller. so I have a great opportunity to get a lot of profits, even though we don't know when bullrun occurs. but what is my belief is that bitcoin will shine later, because the development of technology cannot be avoided even though there are many pros and cons in the process of its development

magneto

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I'd definitely get out of stocks as well as real estate at this stage. If the P/L is still positive, I'd definitely get out of my position.

The growth over the past few years with the US stock markets is definitely unsustainable in the long run, and these low interest rates aren't going to hang around forever. The same with the housing market, a lot of countries are currently seeing round two of the housing bubble, and prices are already stagnating in certain countries.

To be honest, decentralised assets that are independent from the fiat system that fuels a lot of the growth within these fields are the way to go within a financial crisis like the potentially upcoming one. Bitcoin should comfortably outperform asset classes such as shares and real estate, and potentially even cash and precious metals even in a recession, since it has no ties to the traditional economy.

People have flocked to gold as a safe haven post-2008, but I think bitcoin will be seen as a legitimate store of value and an alternative, more convenient means of storing wealth this time round.

figmentofmyass

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Quote from: BitHodler on January 12, 2019, 01:26:46 PM

Quote from: Kakmakr on January 12, 2019, 11:39:34 AM

My safe haven has always been Silver & Gold, so you cannot go wrong there, if you have that in your portfolio. {I will also add some rare old coins or stamps> Tongue

Silver is poor mans gold. If you can afford to go big on precious metals, it should be gold for sure, and the best thing is that it occupies less space.

it's similar to an altcoin vs bitcoin play. if you time it right, altcoin gains are much, much larger than bitcoin gains. the same is possible for silver for a few speculative reasons.

for one thing, though silver is much more abundant in total supply, it's surface-mineable supply is actually much lower than gold. that may come into play in the future and cause a run on the silver/gold ratio at some point.

it also possesses much more utility (in industry) than gold. silver's market position is less about store-of-value and more about utility. so if it takes a bite out of gold's store-of-value market share, the effect on price would be considerable.

i don't like shiny rocks personally, but i know two good traders who I respect a lot who believe it will make big moves in the coming years.

exstasie

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Quote from: Febo on January 12, 2019, 11:06:07 AM

Yes realestates are best way after recession is in full swing. I dont like cash. Right now best option is gold and crypto.

Cash was king in the 2008 crash, wasn't it? Gold took a big hit. Real estate got massacred along with stocks. There's really no safe haven in that kind of environment. Is there?

Crypto seems like the biggest gamble of all. It's never been through a real recession or financial crisis before. Who knows how it'll fare?

bitbunnny

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If and when recession happens it's possible that people would turn to Bitcoin and other cryptocurrencies as an alternative. But that also depends on their value at that time.
But to be prepared for time of recession it's good to diversify your investment now especialy if you have enough funds. In my portfolio I would put some Bitcoin, gold and pieces of art. That is suggestion for those who have substantial amount of funds and for other I would suggest some crypto and some stocks.

GregH37

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Quote from: JacobKeeting on January 11, 2019, 08:27:54 AM

When economists predict upcoming recession, now is the best time to plan your investment portfolio and analyze how recession might impact cryptocurrencies. Here’s an article how portfolio could be diversified for the upcoming market crash:

https://www.signalshunt.com/recession-effects-on-crypto

Markets already crashed, I doubt neither cryptocurrency nor stock market could go much worse from here. All you have to do is invest into companies that lost a lot of money but have a fundamental reason to stay longer. For example Warren Buffet one of the biggest investors of our age invested into coca cola after a big market crash. His logic was simple, yes market crashed and economy is not doing well however that won't stop people from buying coca cola in the future, so he bought it and we all know what happened afterwards.

Same applies in today's world, if you invest into companies like apple, amazon, maybe even coca cola still, and for crypto into bitcoin, ethereum, and even litecoin there is a big chance that after all of this is said and done people will continue using those things and the value will eventually increase, you have to look at it for a long term profit instead of short term gain.

cizatext

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Our portfolio is going to serve as our escape root from the impending recession as predicted by economics, and at that we need to invest more into cryptocurrency because since it a decentralized assets it going to escape it and by investing in different projects that are blockchain oriented.

Naida_BR

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Quote from: JacobKeeting on January 11, 2019, 08:27:54 AM

When economists predict upcoming recession, now is the best time to plan your investment portfolio and analyze how recession might impact cryptocurrencies. Here’s an article how portfolio could be diversified for the upcoming market crash:

https://www.signalshunt.com/recession-effects-on-crypto

Still financial institutions would not support cryptocurrencies. They will again try to implement austerity measures and try to stop the flow of money. I think that if a recession might happen it will be the time when bitcoin and cryptocurrencies will be on the point of talks. People will think that the solution of recession and eventually inflation is bitcoin due to its features that are against these economic trends.

BitHodler

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Quote from: Kakmakr on January 12, 2019, 11:39:34 AM

My safe haven has always been Silver & Gold, so you cannot go wrong there, if you have that in your portfolio. {I will also add some rare old coins or stamps> Tongue

Silver is poor mans gold. If you can afford to go big on precious metals, it should be gold for sure, and the best thing is that it occupies less space.

The problem with certain gold coins is that you pay a hefty premium over spot value, which isn't a problem if you think it will go up as a whole, but not of much importance for people strictly focusing on safe haven assets.

It's going to be interesting to see what gold ends up going to do from here, because the $1300 mark is quite a powerful resistance level, and it has been for years. If it breaks, expect a mini rally.

BrewMaster

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you can not plan ahead for recession like this if you ask me because you don't know what it is going to hit and how hard it is going to hit them. for example stocks market will surely plumet and it can drop pretty hard. the real estate market that someone mentioned may also plumet but it is one of those things that may not happen in all places.
as for cryptocurrencies because of the high risks they have, they may not be options that are considered by many. in other words most people tend to stay away from high risk assets during a recession more than other times which means they can drop hard too.

Kakmakr

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It will be a cold day in Hell if I take investment tips from people associated to the Goldman Sachs Group. Roll Eyes

The 15% in Stocks must be moved into Crypto currencies, because stocks are long overdue for a huge correction and having that much in stocks must be their worst mistake.

My safe haven has always been Silver & Gold, so you cannot go wrong there, if you have that in your portfolio. {I will also add some rare old coins or stamps> Tongue

erikoy

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Quote from: JacobKeeting on January 11, 2019, 08:27:54 AM

When economists predict upcoming recession, now is the best time to plan your investment portfolio and analyze how recession might impact cryptocurrencies. Here’s an article how portfolio could be diversified for the upcoming market crash:

https://www.signalshunt.com/recession-effects-on-crypto

So hard now. I am trying to invest again so that I could recover my loss but seeing market price would go down for more so now I am doubtful. I have also read a lots of users perspective on the speculation sections but still many believes that market price will go down. So now, I am still waiting for it to happen. And if does then I will invest for sure again.

Febo

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Quote from: figmentofmyass on January 12, 2019, 02:50:49 AM

Quote from: dothebeats on January 11, 2019, 10:37:16 AM

45% on stocks and commodities combine during a recession? No, I guess I'll take a larger share for crypto and real-estate investments rather than invest anything on stocks during a recession.

regarding real estate, it really depends what region you're talking about. it's a terrible time to invest in real estate in the USA if you think a major recession is on the horizon. it's an extremely illiquid asset and the market has already seen 10 years of bull market. while the market looks healthier than stocks, it's dependent on the same factors---namely continued economic growth. any recession will damage the real estate market. just look at the 2008 crash!

i prefer holding cash and waiting for blood in the streets myself.

Yes realestates are best way after recession is in full swing. I dont like cash. Right now best option is gold and crypto.

eminemcookie

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Portfolio's should be diversified irrespective of market conditions, both within and outside of crypto. If we're going to see a recession then the logical thing is to move a large portion of funds towards a safe bet. Avoid real estate, most people think it is a sure thing and long-term it is but if there's another housing bubble you can end up waiting 10-20 years for your investment to bear fruit.

figmentofmyass

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Quote from: dothebeats on January 11, 2019, 10:37:16 AM

45% on stocks and commodities combine during a recession? No, I guess I'll take a larger share for crypto and real-estate investments rather than invest anything on stocks during a recession.

regarding real estate, it really depends what region you're talking about. it's a terrible time to invest in real estate in the USA if you think a major recession is on the horizon. it's an extremely illiquid asset and the market has already seen 10 years of bull market. while the market looks healthier than stocks, it's dependent on the same factors---namely continued economic growth. any recession will damage the real estate market. just look at the 2008 crash!

i prefer holding cash and waiting for blood in the streets myself.

dothebeats

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45% on stocks and commodities combine during a recession? No, I guess I'll take a larger share for crypto and real-estate investments rather than invest anything on stocks during a recession. Perhaps I might consider buying in on stocks when the carnage is at its maximum peak, when almost everyone had already sold, but not during the early stages of a recession. I'll hold cash but only to get me by for a year or two, the rest would be on crypto and real-estate. It's a gamble and I have never really experienced the full-blown effects of recession (I was only living with my parents during the 2008 crash) but I think I might be OK in staying away from traditional assets that is associated with fiat.

JacobKeeting

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When economists predict upcoming recession, now is the best time to plan your investment portfolio and analyze how recession might impact cryptocurrencies. Here’s an article how portfolio could be diversified for the upcoming market crash:

https://www.signalshunt.com/recession-effects-on-crypto

Topic: Recession effects on Crypto: How to plan your investment portfolio (Read 346 times)