Cryptocurrencies – Showing (Some) Signs of Life

I’m a HUGE proponent of the strategy to, “buy low and sell high”. Although a lot of bashers/detractors/haters like to believe that one person needs to swear complete allegiance to a SINGLE asset class, I beg to differ, and it’s been my Modus operandi since I started investing/speculating to prefer to gravitate towards totally beaten up (counted out and left for extinction) asset classes.

  • I did so with real estate back in 2012 (made over $1 million).
  • I did so with mining stocks (mostly precious metals focused) back in 2015 (made over $1 million).
  • I did NOT do so with cryptos back in early 2017 and missed out on making any gains at all (in fact, I attempted to pile on into the space way toooooooo late, losing basically everything I gambled with on stupid shitcoins via Initial Coin Offerings, sighzzzzzz).

Hey, nobody’s perfect, and the best we can try to do is live and learn!

In hindsight, my experiences have taught me NOT to take big gains/losses so personally (shit happens), but to better devote my time/energy/bandwidth towards trying to figure out and better understand how markets work.

Nope, I’ll never claim to be an investing/speculating “pro” because I know in my heart of hearts how brutally tough making money is, which is why moving forward, I’m going to stick with the only approach that I know works for me, which is again:

 

“Buy low and sell high.”

 

Much easier said than done, which is why I don’t mind repeating that same message to you all ad nauseum; it will never get old and it’s absolutely timeless in its wisdom.

 

In any event, one thing that that I’ve observed over the years with retail speculators is that when they lose a shit ton of money, they like to bitch/moan/complain/cry cry cry like they are the victims, when it fact, the markets are what they are, so at the end of the day, we have no one else to blame but ourselves for our own decisions (mistakes).

 

Speculating (in particular) is a grown up’s game, so don’t fuck around in this space if you can’t accept the consequences of your own actions!

With that said, again, if you’ve made mistakes in the past, chalk it up to experience, and try and get better; don’t hate the asset classes, but instead be more honest and open with yourself and what went wrong with your thesis (e.g. buying high and chasing FOMO is usually a common regret one has after blowing their portfolio balance up)…

Anyway, with all that said, when it comes to cryptos, sure, I’ve learned not to mess around with ICOs any longer (when moon/lambo talk comes back in full force, it’s absolutely without a doubt my cue to SELL EVERYTHING and get the hell out of dodge!), but instead, to re-focus on the most promising projects out there.

Just the same as with clean energy stocks (e.g. lithium, cobalt), cryptocurrencies have been scorched off the face of the earth over the last year or so (after the blow off top event of December 2017/January 2018), and winter has basically taken complete control of the sector.

But nope, I don’t believe for one second that cryptos are gonna be dead permanently, and my own intuition leads me to believe there will be many more boom/bust periods over the ensuing years ahead. I could be totally wrong, of course, and really, who knows how regulation/laws/etc. are gonna play out…

One thing’s for sure, at this stage of the game, though, I think the genie is out the bottle with cryptos, and in one way/shape/form or another, blockchain technology will be here to stay (it’s simply too useful to go away).

Lately, some altcoins have been showing some signs of life (recovery)…

From CoinMarketCap.

Now, I have not a clue if this recovery is legit or yet another one those total fake-out type of events (which has consistently been the case over the last year), but yeah, I’ll freely admit, I do track and follow cryptos… Maybe not as closely as some other folks, but it’s on my radar, no doubt.

When others are shitting bricks in fear, that’s when I tend to get (a lot) more GREEDY!

With speculating, that’s really the only way I know of to skew the risk vs. reward proposition so that it better aligns in our favor to actually make money, over time (of course, since predicting when a sector will actually experience a trend reversal is not easy at all).

Funny enough, although I hardly ever write about cryptos, I do (believe it or not) get questions about them, every now and then.

No different than with junior mining, my own approach would be the following:

  • Get positioned in slowly, dollar cost averaging (DCA); don’t go “all in” at once.
  • Take a shotgun approach (the entire sector has been massacred, no need to play “hero ball” right now and risk putting all your eggs into a single basket) and build an ETF of your favorite projects that you think have the most upside potential.
  • De-risk on any major rips up (this sector is beyond belief volatile, like junior mining on super steroids) and look to free-carry any positions ASAP.
  • Etc.

Cryptos (and Bitcoin especially) have been declared dead over a million times by now… yet this asset class is rather resilient and my own belief is it will move when it finally wants to move, and it’ll happen after everyone has given up hope and headed for the exits.

 

Right now, ironically enough, I really kinda wish cryptos were more in favor — I’m trying to close a real estate deal, and you better believe it, when we are talking about moving money across borders and stuff like that, ain’t nothing more simple/convenient/efficient/elegant/cost-effective/etc. than cryptos (e.g. BTC/LTC).

 

5 days to clear an international wire transfer, are you fudging kidding me? What are we, still living in the age of the dinosaurs?!? BTC/LTC will get the job done in seconds/minutes/no more than an hour… Move as much money as you want, for a mere pennies!!!

 

Of course, if you even mutter “Bitcoin” to any retail person right now, they will shake in their boots, thinking you’re talking about some kind of major scam or something…

 

Sign of the times.

 

Never forget — In the Game of Speculation, sentiment rules all else. The good news is that sentiment is beyond fickle and can change overnight, on a dime.

 

And that’s when the big dollars are made…

 

Fight On!

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Diego

I am totally agree. The unique thing that i am seeing now, is a lot of people talking bullshit and laughing about btc bubble, and comparing it with tulips ones. The thing that they dont know is that Cryptos and blockchain is here to stay, and the human is the only animal that makes two times the same mistake. Luckly, in 2-3 years the people that invest know, will make huge gains, as the people that invested in 2015…. history doesnt repeat but…

Rudy
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Hey Jay, can you post a simple “how to” article about buying crypto ETFs or similar?

That would be great. Thanks

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