It’s been a nasty few days in the crypto world. We’re currently experiencing one of the most brutal corrections I’ve seen in a while.
But anyone who’s been around a few years has seen weeks like this… and worse. With the gains the crypto market offers, there’s bound to be temporary pain as well.
The good thing is there’s no concrete news that’s scaring everyone here. It’s just pent-up fear being released.
What I see happening is a lot of the “new” crypto money freaking out and panic-selling. A lot of that new crypto money happens to be hedge funds and other speculative cash piles. So we’re seeing big dramatic moves given how large the market has become.
Bottom line: The strong hands will hold, and the weak will shake out. It’s the nature of markets. We’re making a bet on the future of money here. And we’re staying long.
Think of Thanksgiving. Just before the holiday, bitcoin was trading around $8,000 (and we were thrilled). As I write this, we’re back over $10,000.
Ethereum was around $477 on November 25. It’s double that as I write this.
The buyers will come back once the dust settles. The same fundamentals are in place that were there before. I will continue to evaluate our positions daily, and we’ll make changes if needed.
Right now I like where our coins are and would advise members to buy the dips if they’re looking to acquire more.
As I’ve mentioned before, one strategy to consider is “dollar cost averaging.” In other words, you buy the same amount every day or week for an extended period. This helps smooth out entry prices (but it does make accounting trickier if there are capital gains down the road).
During choppy times like these, I also like to think years into the future.
Consider the utter unsustainability of the current monetary system, for example. Since the end of the gold standard, governments have issued unlimited money backed by nothing.
The U.S. has paid more than $400 billion in interest on its debt in 2017… That simply cannot last forever.
Think about countries like Venezuela, where hyperinflation is ravaging the economy and cryptocurrencies are literally saving lives.
This stuff makes me feel good about crypto on a red week. Maybe it will for you too.
Good investing,
Adam
P.S. If you haven’t seen my latest recommendation, RaiBlocks, check it out
here. This cryptocurrency has some really impressive technology, and right now it’s down significantly from its recent peak.
I also include a full guide to using the crypto exchange Kucoin. It’s a new one, and it’s worth checking out.