If you are convinced that this could be the end of crypto currency- check Elon Musk’s new tweet. Elon Musk tweeted “How much is that Doge in the window?” I don’t see crypto currencies leaving the market anytime soon. The picture he uploaded had a dollar note with Doge symbol in it. (To the moon?) Even though everything seems pleasant, I have to share with you some bitter truth.
The Volatility of Cryptocurrency
Many Bit boys and youtubers will never tell you about this. The most important thing you need to know about crypto market is, this is a very volatile place. Why is this so volatile? Because these things are overvalued already. (I am not your financial advisor but this is my opinion). Yea, you heard it right! Get it into your head, I meant no negativity, these are actually something for the future. In my opinion, crypto is the future, but definitely not the present. What you need to do is to have patience. Hold your coins till that day it emerges to its maximum potential. Don’t get panic in the middle. We had a huge bull market recently during the pandemic. So now expect a bear Market. Actually it have started already.
No one talks about it because they are making money from it. We are 5 to 10 years away from these technology (crypto coins) actually being implemented in a large scale – worldwide. I am not talking about Tesla cars. For common people, Its still far from real life application. What we need is patience! Crypto is not going down forever.
Stock Market vs Crypto Market
Understand that! Crypto market is all about speculation. It is not as stable as Stock Market. We buy coins that we think will have a future or actually a good gain. I have no doubt that this is the future of currency. But look at the volatility. Is crypto going to be the future in two years? No. It’s the future but not so fast. Stock market is a $100 Trillion kingdom where crypto is just $2.5 Trillion.
There is nothing going on here to get panic or puzzled. Don’t think why Elon musk is did this to us? Think why these coins are shaking so much with just one or two tweets. I was also upset, when I looked into my portfolio and it looked devastating. The extreme volatility is the main reason institutional investors rely on gold over cryptocurrency as JP Morgan Corp commented yesterday.
Greed and Fear Index
Look at the Greed and fear index of bitcoin. Last week we were 68, in greed. Now we are hanging at 11, in extreme fear. When we are in extreme fear, it is the time to buy. Guys, I am not worried about this. I have done my research, it had happened before, many times – 2017, 2020 etc. Learn the basics first. don’t just speculate – Understand the charts and rely on previous trends.
China Banned Crypto… again?
People get panicked, that’s why they are selling. All the new buyers are selling crypto. Because they heard the speculations regarding China banning crypto (following Elon Musk’s Tesla suspended Bitcoin Transactions). This is not the first time china is banning crypto. August 2017 China bans crypto and Bitcoin lost $500. A record 45% dip. Today, after this news, it is around 40% dip. History is repeating.
Everyone is selling because they think crypto is very volatile. Let me ask – what did you expect? It will be like walk in the park, like we can come with some money and take away profits every time. We are not going down forever. No matter what bit boys says, how a country can ban crypto, they have their government working on their own crypto.
My Advice
I am no financial expert. what I have shared with you is based on long time research and my experience in the market. Go back see what happened in 2017. These things (Cryptocurrencies) are not making any revenue by itself, which is why I said it is overvalued. But there will be a time in near future, where each crypto will play their own purpose (specific service) in the world economy and money transferring, like dollars, euros or pounds. Till that time there will be volatility. There is blood in the market. Now panic seller who have come for short time, have left with what they have. But I believe new money will fled into market. It is coming. People like Elon Musk have agreed that crypto could replace the Fiat currencies. Wait for it.
But understand the fact. Most bloggers or youtubers will not share you these. But I have to. Its not always sunshine and rainbows, there will be dips and crashes. Nothing comes easy. do your research. Study the charts and follow what is happening in the market closely.
