Bitcoin has been crashing the past 12 hours and reached close to $10,000 earlier at the time of writing this. As Bitcoin’s price falls, the opportunity to buy becomes more and more attractive – Take it if you’ve been waiting! My limit order that I was talking about last night filled and I’m prepared to buy more if we see it dip even further.
Last night illustrated the importance of sticking with your guts. I mentioned in the video that Bitcoin bounced back right before my limit and it can be difficult to deal with that. Unfortunately, you will miss many opportunities if you don’t chase price. But once in a while, events like these happen and you are treated to Bitcoin coming back down to greet your limit order as happened for me.
Some of you have been asking me if this is the bubble popping. While no one can tell you for certain (as it is nearly impossible to identify tops), I don’t see this as likely from a probability standpoint. Too many people have been waiting on the sidelines for this because Bitcoin has done nothing but skyrocket up to $20k since there was the threat of the Cashening back in mid November.
Given this, I suspect substantial buyers will come in and bid Bitcoin’s price up at some point. The lowest I suspect this will go is roughly $8k. If we see it break below $8k, we’ll revisit the subject because at that point it is possible that the bubble might be popping, or at the very least we return to Earth in terms of expectations for price (which I wouldn’t be all that opposed to honestly).
For now, I’m a buyer of Bitcoin. I am staying away from altcoins for now (with the exception of a few names that I like which were slaughtered from October to December), but will provide an update if I become bullish on them over Bitcoin.
What are your thoughts on the market? Should we buy or is this the bubble popping? Let me know in the comments below. Thank you for watching / reading.
If you like my content, you can support me through using ANY of the affiliate links below (I receive small compensation). The beauty of affiliate links is that I can pick and choose what I like rather than have companies approach me – everything I linked below (with the exception of Trezor since I like Ledger), I use myself frequently.
My Recommended Hardware Wallets:
If you want to store your cryptocurrencies safely, the best way is through a hardware wallet. Seriously – look it up and you’ll find plenty of information supporting this claim. There are alternatives such as paper wallets, but these are convenient and my choice for cold storage (offline):
I personally prefer the Ledger Nano S, but the Trezor is such a close second that it really doesn’t matter which one you go with. Ledger Blue is premium and convenient, but not necessary.
My Favorite Book for Investing in Crypto:
This book is, bar none, my favorite book for investing in cryptocurrencies. It doesn’t bog you down with technical jargon, but instead focuses on all the elements you should understand before you invest.
It’s a comprehensive book for both beginners and experts. Beginners will find information about major cryptocurrencies (not just Bitcoin) as well as details on historical market events (that you can draw on for future) and events to watch for moving into the future. Experts will find the chapters on valuation particularly useful. For those of you involved in traditional investing, this book is even more of a godsend as finance info is explored (correlations with other asset classes, ETFs, etc).
My Recommended Exchanges: Coinbase / GDAX / Bittrex
If you sign up to Coinbase using link above, you and I will both receive $10 each after you buy your first $100 of Bitcoin using Coinbase. Coinbase is much less intimidating for beginners. Once ready, move up to GDAX for cheaper or zero fees. For altcoins, I recommend Bittrex.
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None of what I provide in my videos is investment advice. Please do your own due diligence.
Seeking Alpha: https://seekingalpha.com/author/truth-investor/articles