Hedge Fund Owner Advising People to Buy Bitcoin

June 1, 2018 by Adrian Thorpe

Hedge Fund Owner Buying Into BitcoinI am always wary when a hedge fund manager or owner goes on record to announce now would be the right time to buy into any product, commodity or cryptocurrency, as my alarm bells start to ring and I ask why he or she is advising people to buy into them.

It is usually the case that there is an untoward motive for them doing so, probably as they have made an investment in them for their clients and are very eager for the price to rise on whatever it is they are hyping up

However, Dan Morehead, who is the respected and likeable founder of Pantera Capital Management. Has just gone on record to advise anybody who is thinking of making some Bitcoin investments to do so sooner rather than later, as in his opinion the price is expected to rise and rise quite sharply too.

You will of course need to consider whether you personally think that the price of Bitcoin is going to rise, and if so then now would, as he mentions be the very best time to buy into Bitcoin, and then hold onto it as the expected, in his opinion, price rise unfolds.

One thing you will have to factor into your investment strategy though is just how much you invest in Bitcoin and the length of time you want to have your funds invested in that every popular cryptocurrency too, and that is a decision only you can make of course.

Be Alert to Bitcoin Price Volatility

Bitcoin has been around long enough for there to be some very meaningful stats regarding it price rise and price falls, and it will not take you very long when studying such historical data to realise that it can be a huge volatile cryptocurrency and one that do have highs and lows too.

There is never any knowing in advance which way its value will rise or fall, and some of the falls can be very dramatic too, so you will need to be a thick skinned and hardened investor if you do decide to invest in it.

However, if you are prepared to put up with the highs and lows of investing in Cryptocurrencies you are going to find it a very existing and appealing environment, much more so with the steady stream of new cryptocurrencies that are going live all the time!

Spreading the Risk Around

What you are going to often find when studying the prices of all cryptocurrencies, is that when the price of Bitcoin increases then most others do tend to rise too, and conversely when the Price of Bitcoin drops so do most other cryptocurrencies.

With that in mind what I would always advise you to do is to spread the risk around, by not buying into just one single cryptocurrency such as Bitcoin by some of the other leading ones too. But once again that is your decision to make.