Tub of Coins 01 | Market update 1/12/2018
Hey Tub Nation,
Does that sound catchy or cheesy? Let me know in the comments, haha.
I’m going to start doing a daily / weekly cryptocurrency state of affairs and let you guys in on what my thoughts are on the happenings in the crypto sphere.
My thoughts are constantly evolving
As I continue to learn and incorporate new-found knowledge (as I speak to experts in this area and through my own research), my thoughts on every area regarding crypto will continue to shift and change. Note that there was a point not too long ago where I was investing in the crypto market strictly for diversification purposes (for example, I hate gold and other precious metals, but I still invest in them because I can always be wrong).
For those of you who have been following me for a while, you know that I used to be a super anti-crypto person. I just didn’t understand it enough so I compared it to the tulip mania. This doesn’t mean I’ve ceased to think there are many mania-like tendencies in this market.
Because there’s still a tremendous amount of speculative investing going on and the vast majority of people will get burned.
The market is cooling off
Currently, the market has been trying to find some level of normalcy and that’s why we’ve been seeing constant fluctuations. You have to keep in mind that the crypto market is still very new. There’s very little precedence to use in future forecasting because the market is still in its’ infant stages. So until the crypto market further matures and becomes mainstream we will continue to see major fluctuations in both directions.
Altcoins have had a tremendous eye-watering run up
I’ll try my best to stay objective, but it’s impossible to not be somewhat subjective because I’m biased and I can only base my projections and thoughts based on my opinions.
But just going off of the numbers, you can see yourself, that pretty much every altcoin has doubled, tripled, and quadrupled in their valuation within the past few months. And relative to bitcoin, everything is looking fairly expensive.
So if you’ve made some gains in any of your altcoins, my suggestion is to take some of your profits.
I am consolidating my altcoin holdings and moving mostly to Bitcoin
Bitcoin is undervalued in my opinion, relative to what the altcoins have been doing as of late. We’ve seen some healthy corrections in the altcoins but again, when compared to bitcoin (the OG), I’m seeing a lot more downside, than potential upside.
I still own some of all top ten coins (by market cap – see above screenshot for the top ten crypto’s), with the exception of EOS.
Bitcoin looks cheap in comparison
I see Bitcoin doing well down the line. I see support at $13K. If it breaks down lower, then our next support level is $12K, then $10K. If it breaks lower than $10K, then there’s a high likelihood that it’ll go all the way down to $7K because that’s the next firm support level.
I don’t see bitcoin ever correcting below $7K because there’s so much money on the sidelines waiting for Bitcoin to heavily correct. But if it does dip below $7K, it’ll get very bloody because I don’t see any strong support levels below $7K so there’s always a chance it’ll go as low as $1K; but if that ever happens, I will be an exuberant buyer at that price level.
Ethereum vs Neo vs Cardano vs Icon
I’m starting to like Neo and Cardano more than Ethereum. The more I talk to experts about Ethereum, the platform has a lot of holes and can be hacked. There are always people arguing for the opposite side though and I’ve talked to a lot of Etherum bulls as well. So again, this is just my opinion, but Ethereum as a smart contract platform is experiencing a ton of scaling issues. Granted blockchain tech inherently has these problems.
But alternatives to Ethereum, as a smart contract platform, such as Neo, Cardano, and Icon seem far more promising in the long run. I think all 4 are long term holdings (candidates for HODL), but I’ve moved out a lot from my Ethereum holdings into Neo, Cardano, and Icon.
XRP(Ripple), Tron, and other small cap coins
Before I talk about these two, I need to point out that I own XRP. But I don’t like it. And I don’t own any Tron.
I think the run up is mostly due to people who are just getting into crypto investing seeing the hype in the media. I get it. It’s tempting to go all in on the small cap alt coins because they’re so cheap, in your hopes to get rich overnight by catching the next hot trend. But it’s important to not let greed blind you with hopes of easy fortune. You’ve heard the saying, pigs get fat, hogs get slaughtered.
If you’ve made money on Tron or XRP or any other small cap coin, you should take some of your profits off the table! They’ve already done so well the past few months, so why risk it when there’s actually more downside than the continued potential on the upside?
Also, I need to point out that even though you can make money with small cap cheap alt coins, because you absolutely can, I’m thinking more from a long-game standpoint.
And lastly, XRP goes against why we’re trying to achieve with cryptocurrencies. The whole point is to create a decentralized society where the poor and un-banked in places like Africa can be uplifted and join the modern economy. But centralized coins, like XRP, goes against everything we’re trying to do because something like 60% of the coins in circulation is owned by the one company and their working with the traditional banking system! So it is not a coin working to empower the common person!
Don’t have any Crypto? Start today by using my referral links
I primarily use Coinbase and Binance.
If you use my coinbase referral link and buy $100 worth of crypto, you will get $10 in free bitcoin (and so will I, so it’s a win-win!). Same with Binance, it’s a referral link so I will get compensated for it. But please know that I’m not recommending these two for that reason. I would recommend them regardless of that because I personally use both of them. That said, like every person on this earth, I won’t refuse money because that would be foolish. Just being honest to be fair to you.
Get set up on Coinbase
Get set up on Binance
Here’s a snapshot of my coinbase account as of 1/12/2018
Coinbase is the best for beginners just starting off investing in crypto.
Binance is the best for trading altcoins.
An app like Coinbase is by far the easiest and user-friendly.
Note that anything you can’t afford to “lose” should be held in “cold storage” off of a “hot wallet” and on something like a Trezor or Nano Ledger S so that there’s zero possibility of getting hacked.
So below, you can see I only hold $35K in my coinbase account strictly for trading purposes. And I keep the rest in cold storage.
Sum up (tl;dr)
- I used to be very anti crypto because I didn’t know enough about it, and I only used to buy for diversification purposes; but my view point has shifted dramatically since then after speaking with a lot of experts in the field and doing my own research.
- The crypto market is fluctuating quite a bit and that’s ok! It’s a healthy sign that the market is going through growing pains, because it’s still in its infant stages!
- Altcoins have done very well (some have gone up ten fold or more!) and have really gotten expensive relative to Bitcoin; so I’m going long on Bitcoin (as usual)
- I’ve halted trading on the other altcoins due to the high valuations (I like to buy cheap, not when expensive) and am going heavier on Bitcoin
- Ethereum in my view is not as strong as an alternative to smart contract platforms like Neo, Cardano, or South Korea’s own Icon (lots of holes in the Ethereum platform)
- Bitcoin looks cheap in comparison to almost every other coin because altcoins have had a tremendous run up in the past few months; HODL bitcoin to the moon!
- Take some profits off the table with your altcoin holdings! It’s hard I know; but the wise saying goes: Pigs get fat, hogs get slaughtered! So don’t get greedy!
- If you haven’t gotten into crypto yet, use my referral links above and support this blog (highly recommend coinbase if you’re just starting out, and you’ll get $10 in free bitcoin if you use my link above), thanks and much love to you all!
What are your thoughts on me starting a bi-weekly cryptocurrency-focused blog series? Do you have different predictions than what I’ve stated or different views? Tell me why, because I’m always open to opposing and alternative view points!