The Crypto Currency Roller Coaster is Not for the Faint of Heart.
China Bans ICO's but Notice They Did Not Ban Crypto Currencies.
Run, the building is burning down! That is what it feels like as I wake up this beautiful Monday morning. I wake up to the birds chirping and a nice cool breeze coming through the window as I make my pot of coffee. Then I turned on my computer. FUD, FUD everywhere! FUD (Fear, Uncertainty and Doubt)
Now for the Crypto Newbs out there I want to make something clear. China is banning ICO's, not Crypto Currency. This means that your Bitcoin, Dash and Steem will be fine. Sure, the price might tumble but that is pretty normal when news like this comes out.
"China bans companies from raising money through ICOs, asks local regulators to inspect 60 major platforms" as seen on CNBC
If you have been around the Crypto Currency marketplace for more than a year then this kind of FUD from China is pretty normal. A few years ago it was uncommon to see a headline on mainstream media about Crypto Currency. Now it seems like we see them daily. CNBC itself seems devoted to Crypto news as more an more traders look for a speculative play.
Humans are highly susceptible to FUD. When the media rains down negative commentary we run for the hills and drop everything we are carrying. On the other hand there are a small percentage of people who see what is happening and they laugh. These people are experienced traders.
Experienced traders sit down, examine the markets and decide where a good entry point for the market is. They use all sorts of ways to decide whether or not to go long or go short. Either way, statistically, an experienced traders hedges their bets to make sure they come out ahead.
Watch this Video By Adam Khoo to Get a Better Understanding of How to Trade in Your Favor.
What I am Doing Today.
I believe this FUD will pass just like each time before. The biggest recipient of all of this will be Bitcoin. The loser, in the short term, will be Ethereum. The reason is simple, Ethereum has been the platform for ICO's. Now the one who gets decimated is NEO because they were looking to be the Chinese version of Ethereum. NEO will take some time to recover in my opinion. They will have to rethink their business model if they stay in China.
I am Not Selling.
I see no reason to panic sell today. Since it is a holiday in the USA the markets will not be open. This is probably a good thing because if they were open we probably would have had a larger Bitcoin sell off. Tomorrow morning, hold onto your shorts because this roller coaster ride is far from over.