Bitcoin touched ,500 yesterday and bounced back with ferocity. At the time of writing this, Bitcoin is currently sitting at around ,000. Is this Bitcoin recovery healthy? In my opinion, it isn’t.
The reason I suspect this isn’t a healthy recovery is simple – it happened too swiftly and too strongly. I believe, from a psychological perspective, that dead cat bounces occur because people FOMO into a recovery with little faith in the price of the underlying asset (Bitcoin in this case) which leads to a nice pump. But when selling occurs, everyone says to themselves “I knew I shouldn’t have bought!” and they all panic for the exits.
As such, I will sell a decent portion of my Bitcoin if it reaches ,000 as there is significant resistance at that level. The reason I’m not selling immediately is because Bitcoin continues to defy my expectations, generally to the upside, so I will give it an opportunity to rise higher. In the event it comes down prior to that level, I’m prepared to hold (or buy if it goes low enough).
In the event it skyrockets (say up to k), then I’ll provide updates on my expectations and entries. But for now, these are my thoughts on the market. As for altcoins, I still prefer Bitcoin over them given dominance has reverted back to 43%. I will continue to generally prefer Bitcoin until dominance reaches around 50%, although I will provide an update if my mind changes on this for any reason. As such, I believe selectiveness is more important than ever with altcoins right now.
Let me know your thoughts on the markets below – I’m happy to hear them!
If you like my content, you can support me through using ANY of the affiliate links below (I receive small compensation). The beauty of affiliate links is that I can pick and choose what I like rather than have companies approach me – everything I linked below (with the exception of Trezor since I like Ledger), I use myself frequently.
My Recommended Hardware Wallets:
If you want to store your cryptocurrencies safely, the best way is through a hardware wallet. Seriously – look it up and you’ll find plenty of information supporting this claim. There are alternatives such as paper wallets, but these are convenient and my choice for cold storage (offline):
Ledger Nano S:
Ledger Blue (expensive):
I personally prefer the Ledger Nano S, but the Trezor is such a close second that it really doesn’t matter which one you go with. Ledger Blue is premium and convenient, but not necessary.
My Favorite Book for Investing in Crypto:
This book is, bar none, my favorite book for investing in cryptocurrencies. It doesn’t bog you down with technical jargon, but instead focuses on all the elements you should understand before you invest.
It’s a comprehensive book for both beginners and experts. Beginners will find information about major cryptocurrencies (not just Bitcoin) as well as details on historical market events (that you can draw on for future) and events to watch for moving into the future. Experts will find the chapters on valuation particularly useful. For those of you involved in traditional investing, this book is even more of a godsend as finance info is explored (correlations with other asset classes, ETFs, etc).
My Recommended Exchanges: Coinbase / GDAX / Bittrex
If you sign up to Coinbase using link above, you and I will both receive each after you buy your first 0 of Bitcoin using Coinbase. Coinbase is much less intimidating for beginners. Once ready, move up to GDAX for cheaper or zero fees. For altcoins, I recommend Bittrex.
Legal Stuff: I am a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for me to earn fees by linking to Amazon.com and affiliated sites.
None of what I provide in my videos is investment advice. Please do your own due diligence.
To make turning into a seller easier, it’s worth at least considering completing the identity verification process once you first join the website. Selecting the most suitable transfer method can help save you a bundle, even though the options available will change depending on the place you sell. It’s also a fact that the more demanding your use is, the costlier the essential equipment tends to get. The SpectroCoin merchant solutions uses an API and assorted plugins that integrate several third-party platforms to create funds collection easy. All these options allow you to sell bitcoin in various ways and at various rates. All these options enable you to sell bitcoin in various ways, and at unique rates. You’ve got wide selections available when it comes to selecting a platform to trade on.
You are able to fund your account in many ways. As the exact same as account verification, your bank account ought to be verified within a day. As soon as your account is confirmed, you are going to be permitted to deposit cash with credit cards, or via wire or SEPA. Once you create your account, you are going to have the choice to confirm your profile. If you’re opening an account with the particular intention of receiving funds from bitcoin trading, you might find high street banks refuse to work with you.
Online marketplaces are another means to devote bitcoins. There are now three methods to go about selling bitcoin online. It is exactly like buying, you have to make an order also, but it’s not a buy order, it needs to be a sell order. You just have to contemplate how to acquire the very best price and what type of trade you desire. The amount of bitcoin is volatile, so selling bitcoin can be a significant part of consolidating your investment. You need to look at current bitcoin prices to have a feeling of how much you should ask.
Because the regular market rates of bitcoin can fluctuate between countries, you might have the ability to sell at higher prices to buyers from specific nations. Furthermore, you’ll need to pay a fee to use some exchanges. Transfer or withdrawal fees may be incurred whenever you should move funds.
Exchanges are sometimes a trustworthy method to sell or trade just about any sum of bitcoin at a fair price, for just about any sort of fiat or cryptocurrency. When an exchange is just usable in a particular nation, then you might have the ability to come across buyers from that country on such exchange. The second way is via an internet exchange, wherever your trade is with the exchange rather than another person. Distinct exchanges might permit you to place various forms of sell orders. They might let you place different types of sell order.
In case the exchange is facing liquidity troubles or issues with its banks, it may take an inordinate quantity of time to get your funds. If it is only usable in a certain country then you might be able to find buyers from that country on that exchange. Regardless, it’s not a good idea to use exchanges to put away your whole pot of coins, though it can seem to be the simple option if all you’re doing is speculating. For this reason, you ought to carefully find out more about the exchange you want to use before committing funds. Otherwise, you could use a pure cryptocurrency exchange to modify bitcoin for one more cryptocurrency.