RE: Simple Guide To Knowing When To Get In And Out Of Crypto Currencies
Do you really think its a bubble phase yet? Im saying this generally curious for your opinion, not to be condescending or sarcastic. I know the charts look crazy, but we saw the "blood bath" of a few days after as cryptos retraced and whatnot.... i personally want btc to come down more to get a better buy price. It looks like it will a little but for how long i dont know.. but my thing is ... i dont think its a bubble yet because like 1% of the world population even know what bitcoin is.... i think volume will cause these types of moves as u have swing traders profiting off them and just more people getting in at insane amounts..
I keep having to remind myself that although we can learn from history and from other markets, this is a brand new beast. I cant think of anything relatively like it at all besides forex which is only similiar in a few characteristics. To me, i could be wrong, but regardless of what big whales are manipulating whatevr market with big amounts or not .... this is the closest thing to a truly free market ive seen or read about. So to think about a bubble how we traditionally do to me also makes me second guess.....if that makes sense.
I'd say we are currently in either a bubble or dead cat bounce. There's going to be some falls before the large returns again. Either way only invest in what you can afford to lose
I agree with Crytofunk. It might pop back up here in the next few weeks but that will most likely be the dead cat bounce. I'm going to expand a little more on my thoughts as well.
We were all saying the same stuff you are saying above back in 2013 / early 2014 that it was different and that suddenly Micro$oft is accepting it, Overstock, Dell...etc...etc. There was good news at every corner except Mt. Gox. But despite the overwhelming great news the price kept sliding further down. It was terrifying and this time will be no different. My assuming is that it will slid to around $500 or so over the next 8 months. There will be small pops and drops before then but there are still issue with the Bitcoin network which will ultimately be resolved. Let's just be conservative. Let's say it only bottoms at $1000. Well it has a ways to go before then.
About the only 1% of the population knowing what Bitcoin is, that may be true but it won't change unless there is a compelling reason to get on board. There are compelling reasons to get on board but the on ramps can still be difficult. Not as bad as it was in 2013 but still not totally seemless for people who don't know much to buy in. If a Bitcoin ETF is able to get approved that changes a lot of things because then people could become exposed to it a lot more easily through their brokerage accounts.
Also there are problems with having all these separated pools of liquidity that run 24/7/ 365. It makes it so it is a lot more thinly traded then on the stock market.
This is all great advice, deserves a post of its own.
Thanks! I might put something together with some of this stuff. It is hard for the new people to have perspective now just like it was hard for me to have perspective in 2013 and 2014. The people who got on board in 2011 were shaking their head at me I'm sure.