It has been a long while since I updated my take on crypto.
Up and Down
Things looked a little grim for awhile. Everything was down. We are in an upsurge right now though. Bitcoin is rebounding and many alt coins are gaining ground.
The Wild West
Many have compared trading crypto to the Wild, Wild West. That is most certainly a fair comparison. It is volatile, unpredictable, brutal, heartbreaking, satisfying, and exciting! It is also becoming “settled” in that the third wave of investors—established, old-guard financial players—are now flooding in to stake their claim.
Here to Stay
More than ever signs are abundantly clear that crypto currencies, and more importantly, blockchain technology, are here to stay.
- Most states in the US has taken some stance on it,
- New York is in the news because of its resistance to it,
- governments are forming committees to investigate, make room for it, or kill it.
- And, perhaps most important of all, more and more businesses are accepting some form of cryptocurrency as payment for its products or services.
My Theory and Approach
As one who does not have much fiat currency to put into crypto trading, I gravitate to the coins that are the cheapest and that have at least some volatility in the market. Here’s why:
The basic premise of most newbie crypto traders is to find the right coin and be holding (hodling) as much of it as possible when it suddenly sky rockets to the moon. Then, you take your millions and buy a Lamborghini. In fact, if participate in the millions of Twitter conversations about it, the words “hodl” “to the moon” and “Lambo” are used ad nauseum. Some of them are committed to their particular coins like they would be to their favorite football team or their Alma Mater. They trash those who don’t like their coin. That’s not my approach.
As I said, I don’t have that much money. So, I look for a coin I can get the most of with my initial investment. Hopefully it is volatile enough that I can sell high and buy back low and increase my coin count. (The logic is obvious: the more coins I have in the trade the less point spread is needed in order to make a bigger profit.) Ultimately, I do need a coin that will “sky rocket” a little bit, but I can also move in and out of different coins and benefit from their volatility. In the end, since at this point I can only profit by exchanging my coins for Bitcoin, what I am mostly after is increasing my Bitcoin: Bitcoin is the underlying value for every altcoin except in the cases where that coin can be spent directly for services. But, even in that case, the person receiving the coin for products or services is doing so because they, too, are trying to increase their Bitcoin count.
Siacoin, NCASH, STORM, POE, IOSToken
The most popular coins that are still cheap are NCASH, STORM, POE, IOSToken. There’s also Tron but Tron is becoming kind of a joke to me due to its fan base and its poor public relations. There’s also Verge but, for me, Verge is out!
But the coin I have wanted for a while is Siacoin (SC). It’s not as available (not on Binance) but you can get it on Bittrex. It is still under 2 cents and is gaining ground and popularity. It’s more of a utility coin that offers cheaper security for documents in the cloud.
The bottom line is this:
- Crypto and blockchain are not fads.
- With the exception of a few who have proven to be so, they are not scams.
3. There is money to be made but you must be careful! It is a high risk investment.
4. There is a steep learning curve for the inexperienced trader—and even for the experienced trader—who would venture into cryptocurrency.
5. If you are going to get into crypto, of course don’t invest what you are not prepared to lose and expect a long term investment.
6. Read about crypto and stay informed. The market rises and falls on human sentiment and emotion.