How to Prepare for a Potential Bubble in the Cryptocurrency Markets
Seems just about everybody is inquiring about the "bubble" in Bitcoin, Ethereum and other AltCoins and when it's going to "burst".
Here's what I have to say about that:
Basically every 10 years the stock market crashes from a Bubble and every 10-20 years for real estate. Many given extremely technical answers as to exactly how, why or when it will crash but in my opinion, it's all due to government manipulation attempting to split away the middle class and divide to lower income vs extremely rich. Why else do the banking systems ALWAYS get bailed out while everybody whose invested in these systems lose a ton of money quickly and unexpectedly? Every. Single. Time.
Cryptocurrency is different as it's built by blockchain meant to "thwart" money manipulation. Each and every person is a part of the system that either mines, holds or invests in cryptocurrency.
It's extremely fresh, there is far less history record and much less data to dissect in order to properly bass any predictions to the T.
The veteran investors in cryptocurrency by now likely have a solid grasp of how it all works, have been through many bullish and bearish runs and likely have a solid understanding of how it all works and what to likely expect, however they can never be 100% certain.
The people just starting to catch on to Bitcoin, Ethereum & cryptocurrency investing are mainly coming on board because others are showing proof of how much money they're making with it as well as major milestone, organizations accepting it and word of mouth.
But these people that are getting in are often times misguided with information, not really sure what they are doing other than knowing they can make some money "fast". A lot of them only know about Bitcoin and some Ethereum and Litecoin (the mainstream coins) but didn't know about the other 900 in circulation or the many more that are about to be minted in ICO's.
Mainly, they get their info from various opinionated sources on social media from other lackluster educated minds mixed every now and then with some people that actually know what they're talking about. They buy in without knowing where to store coins, how to cash out, spend it, etc.. And in one example, someone I got into investing in Bitcoin & Ethereum completely freaked out when they saw a dip in the price of both... They hardly knew how to transfer the coins to a wallet...
Sure, I was "all in" when I heard about it recently, but only because I trusted the information my super-smart-tech-geek uncle told me and he's a proven genius (in my mind anyway), so whatever he says, I'll follow his lead! I could have initially invested back at $50 a Bitcoin if I wasn't so skeptical...
I completely understand the want, need and desire to make a "quick" profit, but the problem right now is most people online have an opinion and most of those people have an opinion before they are 101% educated on the subject matter. People take bad advice then give bad advice creating a chain reaction of straight up bad choices & investments which can literally destroy someone's finances and their mindset.
In school, we were never taught how to make money with money, pay taxes, think outside the box for investing, etc... Because the system doesn't want us all to be super-rich millionaires.
So back to the underlying theme, what do we do when this potential "bubble" hits us investors in any cryptocurrency? If/when it hits, here's my suggestions:
Only invest in things you are 101% certain about and understand. Do your research from a TRUSTED source! (Check out my legit cryptocurrency resources page here)
Only invest the amount of money you can possibly afford to lose. If you invest $100 or $1,000,000, know that there's always a chance that the price of the cryptocurrency could correct itself and drop in value.
Always invest in the long term for most stable coins that have a chance to become the next "Google" or "Amazon"! If you feel a coin is going to drop substantially in value, trade it for a coin you know is consistent and stable, such as Litecoin for example.
You can't lose if you don't sell.
For example, if tomorrow you awoke to see all your wallet holdings are in RED, 250% down. If you sell, you just lost all that currency, if you keep holding for long term the market will eventually recover. History has taught us that markets always recover. For example, look at the stock market in 2008-2009.
To make more profits, when the price is dropping, buy MORE cryptocurrency, because it's so volatile, they go up and down, but eventually the coins that are stable enough will be around for the long run and will eventually go back up in value while other coins may crash.
- Let's assume you bought 10ETH for the price of $400, total holdings = $4,000
- The price dropped 50% to $200, total wallet holdings= $2,000
- You invest another $200 and buy 1 more ETH, now your total holdings= 10ETH + 1ETH= $2,200
- You bought 11ETH for average price = $381.81
- ETH goes back to $4,000, total wallet holdings= $4,400
- You just made profit of $200! What if it goes down in price again? Rinse. Wash. Repeat.
If you want more specific strategies such as how to aggressively maximize on your profits, where to earn more coins both for free & passively or other combo strategies to get the best results from you investment, feel free to sign up for my newsletter below and/or visit the resources page and sign up there.
I'll have a crypto-crash course coming up soon followed by an Advanced Crypto Course for those that want to take their profit earnings to the next level!