Quick post. Today I liquidated all of my crypto holdings between 1-3pm EST. The key to investing in anything is not knowing when to buy, but when to sell. The experiment of cryptos has been interesting and with a withdrawal from my Coinbase account I will complete the full circle and test the ability to withdraw.This is not to say that I won't come back in but I think we are beginning to see cracks in what I am calling Bitcoin 2.0. There is no easy way to make money in life and Crypto has been too easy and that is enough to make me worried. People simply think you can't lose and that is a solid signal in my opinion.
What forced my change. There was a piece today I read about the Bitcoin.com owner moving funds to Bitcoin Cash. I have been saying it for a while now to people who ask. I don't want to own one Crypto, I want to own them all as an ETF. Crypto is here to stay in some capacity, the problem is choosing which one will win, or which ones, and that is very hard to do. It is very easy to look back and say Amazon.com over Pets.com, but it wasn't so easy in 2000 I can assure you of that.
Right now when someone of some importance speaks up they have the ability to wildly move the market in one direction or another. Given the lack of regulations by these people, say the SEC, it is nearly impossible to know whether there is any market manipulation going on but it is hard to imagine there is not.
Last month we saw a similar rotation out of Bitcoin to Bitcoin Cash. I did a far bit of research today on the number of transactions, average time of transactions. While Bitcoin Cash could theoretically replace Bitcoin, uncertainty can spook any market and erode confidence in cryptos in general and thus I see an intermediate pull back for almost all cryptos.
Bitcoin has first mover advantage, marketing, and general awareness going for it. It could be forked into the Bitcoin that we all use in 100 years and that could be the greatest reason to own it but unless you have the time to be a professional Bitcoin trader you will likely miss the true opportunity outside of being plain lucky.
I will add that over the past few weeks I have seen an increase of saavy retail investors and professional money managers either post or reach out to me about Bitcoin. Today as I hit the sell button on the last of some Litecoin I got a text from a family member about IOTA. That was a warning sign as this individual represents Main Street America. Could Main Street drive up the prices further. Yes they could. Given that Coinbase only has BTC, LTC, and ETH those are the only options for them as Main Street isn't using wallets to hold other ALT coins.
This all means I see the risk to the downside and not the upside. Could I be missing the boat on further gains? Yes it does. Does it mean the opportunity to swing this as a life-long swing trader? Yes it does, but this is my decision for now.
If you are really interested in investing and making money, I highly suggested reading the original investing bible and Warren Buffett's bible, The Intelligent Investor, written by Benjamin Graham in 1949 and updated for the modern age. The fundamentals taught in this book are the difference between investing and speculating.
If you still don't have COINBASE account, here is a link that gives you $10 off your first purchase. For those that want a physical BITCOIN to act as a fidget spinner, stocking stuffer, or gag-gift here they are available to purchase on Amazon.
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