The classic asset bubble.
The classic asset bubble. Can you spot the difference between BTC and any other bubble??
BTC and for the matter all virtual currency just got a bit overly excited. I am a firm believer in crypto and believe it will change the world (for the better), but I have been posting now for about a month on this huge run up and then collapse, hoping to save a few friends from loosing a LOT of money.
I get asked daily by people I know what I think about bitcoin or XXCoin, so I decided to sign up with Steemit and start posting some of these thoughts, to share with those who are asking and of course anyone out there that might find this post.
I've been trading a lot of years now and I can tell you flat out, the keys to being successful are to be patient and don't over extend. Do your research, buy what you believe in and stick to it until the fundamental reason tha caused you to buy changes.
I have lost more money than I care to remember simply due to not being able to make a margin call and being forced to sell an asset a day or two before a complete reversal of the down trend. Morral of this story -- Don't, please don't buy via a margin account .... You will be slaughtered!
Number two reason I lost money ... I knew what it should do, but I did not wait long enough to prove myself correct and bought or sold before it was time. Being right is not worth squat if you are not right at the right time.
Number three reason for loosing money -- pales in comparison to the first two. Simply being wrong about the asset.
There have been all kinds or reasons for the "Crash", but simply stated, we were in a bubble. I really do not believe there is any support for BTC until around $6,000 (when the huge run up went parabolic). But I could be wrong. The key is to wait it out and let the BTC bulls hold it up until it meets the 50, 100 MA. If this actually occurs, then and only then it will be time re-evaluate AND not till then.
Worst case by waiting .. we might lose a few fractions in the long term rise (if it does rise). But if we are in a bubble and it continues to drop (like I expect), then we saved ourselves from possible ruination!
There is no reason to be playing against the house, let the odds change and they will, Crypto is the future, just not the next month or so.
Invest wisely for the future.
Craig