It is no secret that the cryptocurrency market is filled with high-risk trading opportunities. So, you might be asking yourself, can long-term buy-and-hold traders find solid investment options within the crypto space?

Rachel Warren: The cryptocurrency market is hotter than it has ever been. Ethereum just recently hit a new all-time high while BTC surged above $69,000 shortly following the news that inflation reached a 30-year high. The CEO of MicroStrategy, Michael Saylor, has compared his earlier backing of Apple to that of BTC, calling the cryptocurrency a dominant monetary network that all people need.

During an interview at the NY Times DealBook conference, Apple’s CEO Tim Cook had confirmed that he owns crypto, and that Apple is currently looking into it, although there are no plans in the works for the company to start accepting crypto as a payment method or anything of that sort.

My question to you guys is, what is your basic investment philosophy surrounding crypto, and do you believe it can and should be part of a long-term, well-diversified investment portfolio? Connor, what do you think about this?

Connor Allen: I believe crypto could definitely be part of your portfolio, and I also think in a lot of people’s cases, and obviously it is on a case-by-case basis, but it should be in your portfolio.

The cool thing about BTC specifically is that it is the first asset class that I have seen that gains credibility with a rise in price. So, you have stocks that normally, when they increase in price, people think, overvalued, so price-to-sales ratio is kind of ridiculous.

But when BTC goes up, everyone is like, “Oh, I have to buy some”, and that is kind of the credibility that it has when people are believing in this thing. That is where the value of the coin comes from. Which is an entirely different conversation and also really weird. But that is something that’s really cool to me about BTC specifically.

Overall, I am a believer in cryptocurrency, but I also do understand any shortcomings that I have as an investor. One of those is not being able to understand all about cryptocurrency. I understand Defi’s power and the power that BTC and other currencies can bring to the world.

I get the type of mission statement cryptocurrency has and what it could become. But with all the technicalities and all, I let other people decide because I really do not understand that.

I currently invest in four cryptocurrencies, those are Cardano, Bitcoin, Ethereum, and Solana. I do not know which one will fail or which one will succeed. I just tossed some money at four eggs in the basket, and that is just a small portion of what my overall portfolio is.

Author: Scott Dowdy

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