Fundstrat co-founder and analyst Tom Lee believes that patience is a virtue in a bearish crypto market.
During the BlockShow Asia conference in Singapore, Lee told Cointelegraph all about the reasons for which he recommends his clients to allocate a small portion of their portfolios to crypto. He also believes that it’s best to stick with the biggest cryptos by market cap.
ETH, BTC, and XRP are the best investments
“I think people need to be patient. But I think one of the most important things that we advise our clients is that crypto as an investment should really be 1 to 2% of their allocation, so that number one, they’re not worrying about it every day. But also, that 2% can become 50% in a decade. It can grow dramatically,” he said.
He continued and brought up ETH, BTC and Ripple’s XRP: “I think the other thing is to realize that some of the crypto projects are probably hopeless. But things like Bitcoin and Ethereum or XRP have staying power.
And these are the ones where unless you think the protocol is actually completely broken, you’re seeing price distortion caused by panic selling.”
Regarding the direction in which the whole crypto market is currently heading, Lee compared the current price action to the ups and downs of the stock market and he also explained the reasons for which he believes that now is the best time to buy crypto.
The main reason is apparent, the fact that we’rein a bear market. He also said that we’re living in the early days of crypto and it’s about to become an emerging asset class.
Tom Lee remains optimistic in terms of price
“Days like this, it does make me wonder about my prediction. These past few days have definitely been a negative development.”
Lee cut his end of the year price target from $25,000 to $15,000.