10 Things to Know About Bitcoin
- Facts about Bitcoin
- What is it?
- How does it work?
- Where did it come from?
- Why does BTC have value?
For example BTC dropped 12% yesterday and ETH dropped 20%. Herd mentality on some industry news caused of wave of sell offs. It’s time to buy. Crypto is at a great price right now, but keep in mind that it could drop even lower.
“The time to buy is when there’s blood in the streets.” – Baron Rothschild
If you intend on doing some buying with crypto, do you have a plan with your investments for the rest of the year, the next two years, or five years? You should. If you are all in and HODLing, well there is a certain level of respect that you should receive. That is not easy. A level up from that are investors who are holding liquid funds ready to invest where they see opportunities. If that is the case, you are at the starting gates of the largest point of opportunity this year. Some predictions are that Bitcoin is on its way up now to a fantastic finish for the year. Some other predictions are calling for one last drop in the year before a climb towards new all-time highs. Nobody can be sure of what will happen in this volatile market. It’s still estimated that less than 5% of the world is invested in cryptocurrencies. That is an extremely low number. As that number grows, supply and demand will dictate the value of our investments.
What alt-coins are a solid investment? Generally, the top 10 cryptocurrencies in market cap will stick around for some time. Again, you can answer this question with your own research. What is the road map for the investment you are looking at? Who is on the developer team? What could make the project successful or cause problems for them?
When Bitcoin makes its move through sell walls in the future heading back up the charts above $8,000 and $10,000 we will see similar reactions to last year. Wealth will be transferred, many more people will purchase crypto for the first time, and prices will be as volatile as ever. It’s very important for you to have a plan. Don’t invest more than you are willing to lose. Select carefully what cryptocurrencies you trade. Do your research and continue to learn about the projects before you buy them.
The crypto train is coming again and it’s going to be a busy time of year. Keep that in mind. Preparation is essential. Once you are comfortable with a cryptocurrency that you want to invest in, try to leave emotion at the door. Many investors will be married to a coin and bet heavily on its success. “Buy the rumour, sell the news”, is a solid way to support your decisions. If you see a candle spiking over an hour or a day, that is the news. Don’t try to get in late on an investment with fear of missing out or with the greed of massive profits. Use the basis of mathematical calculations to support your decisions. If you haven’t learned about trading volume, Fibonacci series, or other indicators such as MACD, or RSI, you have a lot to learn and should probably not be investing in any crypto that isn’t in the top 10 for world market cap. Use education as the number one pillar to the foundation of your success. Outside of your education, the flow of information about what you are investing in or what you may potentially invest in must absolutely be set up. If you need to put any large amount of time in to get information on the market, the social reactions to investments or other information, you may be too slow to get in or too slow to get out of an investment.
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” – Warren Buffet. This really is the best time to prepare yourself for a new altcoin season. In 2017 we didn’t have any significant growth until the middle of November. Bitcoin was at $7,000 USD on November 15th 2017. One month and 2 days later, it was just under $20,000 USD. That sort of growth may never happen again, or maybe it will. What you can do for yourself now is to accept that you cannot time investments perfectly. Keep your expectations realistic, look at your profit or loss and make some smart decisions.
Stay tuned for our next article about solid trading strategies that can help you to be successful with your investments!