Bitcoin and most cryptocurrencies are tanking today, possibly on news from China suggesting an even stricter crackdown on ALL centralized cryptocurrency trading, beyond the stances they’ve already taken against ICOs and exchanges. Furthermore, there are speculations over the Chinese New Year and typical January lulls contributing to the fall.
Steemit Post: https://steemit.com/bitcoin/@cryptovestor/bitcoin-and-crypto-markets-dive-bomb-or-great-opportunity
While I am skeptical over the idea that prices are seasonal, I do think this is a strong opportunity. For those of you who missed out on being able to buy Bitcoin back when it reached $10k back on December 22nd, this could be a good time to scale more cash into the market if you generally keep a cash position in your portfolio. Personally I won’t be adding more as I already scaled my position comfortably back on December 22nd and don’t plan on buying more Bitcoin til it goes to $10k or lower.
Generally speaking, I still prefer Bitcoin over altcoins. While it is unfortunate that it is currently looking like Bitcoin will retake its dominance on the downside rather than the upside, I still find it to be better exposure for the crypto market in either direction.
On the topic of whether or not the bubble is popping, I still suspect we have a while left and there are plenty of speculators (ahem, “investors”) waiting on the sidelines for “cheap” Bitcoin. While I still think Bitcoin is a bubble, there is plenty of room for it to grow and both retail and institutional investors are waiting for better entry levels to ride the hype. Naturally it’s always possible that the bubble is popping, but my thoughts (for now) are that we are still on board to see higher levels.
As such, if we see Bitcoin decline further from here, I will continue to shift more funds into it especially if we see it reach $8k (a level that many people are watching). In the event that this ends up being a more sustained downtrend, I would be ready to pick up more at lower price levels.
What are your thoughts on this current price movement? Do you think it will continue or it is shortlived? Thank you for watching as always.
If you like my content, you can support me through using ANY of the affiliate links below (I receive small compensation). The beauty of affiliate links is that I can pick and choose what I like rather than have companies approach me – everything I linked below (with the exception of Trezor since I like Ledger), I use myself frequently.
My Recommended Hardware Wallets:
If you want to store your cryptocurrencies safely, the best way is through a hardware wallet. Seriously – look it up and you’ll find plenty of information supporting this claim. There are alternatives such as paper wallets, but these are convenient and my choice for cold storage (offline):
Ledger Nano S: http://amzn.to/2hZPj0q
Ledger Blue (expensive): http://amzn.to/2hk7xst
I personally prefer the Ledger Nano S, but the Trezor is such a close second that it really doesn’t matter which one you go with. Ledger Blue is premium and convenient, but not necessary.
My Favorite Book for Investing in Crypto:
This book is, bar none, my favorite book for investing in cryptocurrencies. It doesn’t bog you down with technical jargon, but instead focuses on all the elements you should understand before you invest.
It’s a comprehensive book for both beginners and experts. Beginners will find information about major cryptocurrencies (not just Bitcoin) as well as details on historical market events (that you can draw on for future) and events to watch for moving into the future. Experts will find the chapters on valuation particularly useful. For those of you involved in traditional investing, this book is even more of a godsend as finance info is explored (correlations with other asset classes, ETFs, etc).
My Recommended Exchanges: Coinbase / GDAX / Bittrex
If you sign up to Coinbase using link above, you and I will both receive $10 each after you buy your first $100 of Bitcoin using Coinbase. Coinbase is much less intimidating for beginners. Once ready, move up to GDAX for cheaper or zero fees. For altcoins, I recommend Bittrex.
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None of what I provide in my videos is investment advice. Please do your own due diligence.
Seeking Alpha: https://seekingalpha.com/author/truth-investor/articles