Bitcoin is consolidating and Ethereum is mooning. I have decided to scale back my position size in both Bitcoin & Ethereum, although the reasoning isn’t bearish. For Bitcoin, I have chosen to scale back slightly (as in, still have majority of my position) due to increase of systemic risk due to headlines associated with Bitfinex particularly, although there are other risks as well that I’ve discussed previously.
I still have the majority of my position, but have simply chosen to take some profits to reduce my breakeven point below my previous average buy price ($6057). As always, position sizes should always reflect your confidence in the markets.
Ethereum is doing exceptionally well. I have pointed out in prior videos that I like Ethereum at any level below $300 and wouldn’t sell until at least $400. I have chosen to take a small bit of profit now that Ethereum is all the way up above $450, but I sold even less (on a percentage basis) than I did with Bitcoin. I will scale out slightly more if it breaks above $500, but will hold most of position in event that we see huge breakout to upside. I have absolutely no bearish thoughts on Ethereum, but find that taking profits to keep a level head is generally best when it comes to trading.
As for where the money is going, right now it is sitting in USD. I will be considering where to deploy this capital, if at all, over the coming days. Meanwhile, I continue to write and work on article / video combinations. I appreciate your patience.
I also briefly discuss Litecoin – I am becoming more bullish as it lags behind both Bitcoin & Ethereum. Additionally, I wanted to provide some clarity with my position on Dash given the criticisms I received the last time I spoke about it. Just because I like Monero has nothing to do with my hesitancy for investing in Dash. I hesitate for two major reasons:
1) DAO organizational architecture is inefficient and a long way from working as well as a centralized organization
2) Far fewer transactions than Litecoin
More details are in the video itself. As always, I am happy to hear your thoughts. Thank you for watching.
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.
Legal Stuff: I am a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for me to earn fees by linking to Amazon.com and affiliated sites.
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