Have you ever been in a car with a lunatic who just kept doing stupid ****? Have you ever seen that crash coming and simply frozen as all of the events have simply unfolded around you? Have you ever been in a situation so unstable and so out of control that if you turn away for a single moment you know that you’re in trouble?
Welcome to the Cryptoverse. Finely enough unlike financial editor Ross Greenwood I’m not going to tell you cryptocurrencies are bad or that you need to stay away from them. Not at all.
I’m here to motivate you and above all else to educate you. And to educate I have to give you both sides of the story.
A bit of History
Crypto hit the mainstream media at the tail end of 2017. A Massive growth move got large numbers of the public excited about massive potential gains and people flocked to ‘buy in.’ In fact reports in the US had people refinancing their houses and taking out credit cards with massive limits so they could buy in.
Between the 15th of September and the 16th of December 2017 Bitcoin’s value skyrocketed from just $3,600 to $27,000. This was 750% growth in just 3 months.
But this was nothing compared to the currency XRP (a.k.a. Ripple). Trading 33 cents it ballooned to $4.80 in just 24 days! +1400%
For those that got in early, it was good. For those that expected the climb to continue the losses were catastrophic.
Are cryptocurrencies bad?
Well … no! Uneducated greed is! And make no mistake there were victims. Lots of them.
Have these events happened since? No.
Will they happen again? Who knows!
Here is the thing cryptos are the ultimate dopamine hit! They promise big, and make no mistake the potential is there. But so is the risk!
You see with crypto there is no minimum entry into the market. That means unlike property or the stock market you can invest and trade the currencies with spare change. You can also go big too … if you have the stomach for it.
So why shouldn’t you invest in crypto?
This is not where I say it’s bad! It’s not! Cryptocurrencies as well as the technology they are based on have been around for years, but the adoption isn’t large enough for it to be well known and understood.
Here’s why you shouldn’t or at the very least be “extremely” careful with any investment in this frontier.
When the stock market falls by 2% the media screams murder. Economies risk complete collapse amongst a day of irreparable losses.
Crypto markets can fluctuate by as much as 20% in 8 hours. The market is so violent that you need a pilots G-suit to keep your body in tact during the rises and falls. In addition unlike the stock market, the crypto markets never close! If the market falls by 15% at 3am local time while your asleep … it falls with your money in it. If it spikes when you leave home and the best time to sell is when you’re in traffic and unable to make the trade … so be it.
Like a lot of things, you need to be in it to win it. If you’re in you can. If you’re not you won’t. Simple as that.
But here is the thing … being Johnny on the spot at the ‘right time’ to enter the market and exit to protect your cash and always be on the right side of the trade is exhausting. In fact because the market never sleeps neither will you.
Trading the crypto markets is just another job. Yes the potential for gains is there, but you need an appetite for it. You also have to have the strongest discipline and strategy in place before you make any commitment.
For small players … it’s a place where you can start, but you can’t say that I didn’t warn you!
There is the saying is that 90% of people lose 90% of their money in 90 days. In 2017 many did in less than that.
Me? I’ve made money. Not much! My strategy was born from failing to capitalise on gains when I should have let the system handle things. Instead I traded emotionally. Big mistakes were made. Expensive lessons were learned. Better earning can be found elsewhere in more stable and sustainable ways!
By the time I got it ‘right’ (for me) the run was over. But it’s a stressful exercise. Unless you’re into Financial extreme sports and a complete glutton for punishment who wants to capture every single cent … don’t bother.
It’s bad for your health. That’s my truth!