I received the following email from a good friend this morning and though I would share my response.

good time to buy? if so what kind of basket would you recommend? im not nearly as familiar with the algorithms as you are. lmk what you make of all this, ya?

BTC has had at least two 80% corrections in the past 3 years. If history is to repeat itself, we could see BTC below $250 before $1200.

Is it cheap now? Sure.

Could it get cheaper? Yep.

Does it matter? Depends on you.

If you have debt, pay it first.

Speculating in high risk markets is not advisable unless you can stomach gut wrenching moves and have Vegas money to burn.

I will buy more BTC at some point, but I wait for the trend to change. Technical analysis suggests further correction through price and time. In other words, it could go significantly lower or take months to recover.

If you don’t mind the possibility of riding out a 75% drop and 12 months of churn, jump in. Otherwise, sit tight and wait for the moving averages to realign and show buying momentum.

As far as a basket of coins goes, LTC, PPC, DOGE, NMC & PTS all seem worthwhile. LTC & PTS offer the greatest risk/reward in my book, but that is a qualitative assertion rather than anything based on reliable statistical facts.

Coinbase is likely the best place to acquire coins, but don’t rush into anything. The price will begin to rise and you will think “it’s too late,” when the time is right.