If you’ve been keeping an eye on the cryptocurrency markets this week, it won’t have escaped your notice that…
Pretty much every cryptocurrency is down this week.
Well, the cryptocurrency market is so nuanced, there’s rarely a single reason for major price moves.
But here are three main reasons for the most recent dip:
- Fears that South Korea will clamp down further on cryptocurrency exchanges
- The Chinese cashing out their crypto gains for the Lunar New Year
- Beginning of year sell-off to pay taxes
- There’s also a lot of panic selling by novice crypto traders spooked by dropping prices
So many new people who don’t know what they’re doing have gotten in recently. When they see a drop, they panic and sell. That drives prices down further.
But don’t follow their lead.
We’re in this for the long term. So any dips, no matter how sharp, are buying opportunities for us. 🙂
Any decrease will be temporary, as smart buyers swoop in to buy at fire sale levels — driving prices higher again. And we’re already seeing prices creeping up again.
Plus, over the next 18 months, a lot of institutional money will flow into this space and prices will rise as a result.
Remember, you should always look for cryptos that are built by a solid team, have a limited supply of tokens that will experience increased demand and are backed by strong advisors and investors.
How To Stay On Top of Things
First, pay no attention to the news. It’s designed to worry you — and even mislead you…
Remember, on Jan. 5, CNBC did a “Crypto Class” showing viewers how to buy ripple. People who did that bought at the top and have been selling ever since. They lost over two-thirds of their investment in less than two weeks.
Ripple is a centralised bankster coin anyway, not a decentralised coin like Bitcoin.
Second, stick to discipline and focus on the best cryptocurrencies. That is how to create wealth.
Third, if you’re worried, then just hold. And never invest money in crypto that you cannot afford to lose.
But to be clear, these cryptos are a buy at market prices:
- Bitcoin (BTC)
- Ethereum (ETH)
- ZCash (ZEC)
- Monero (XMR)
- 0X (ZRX)
My favorite currencies to buy during big dips are Bitcoin and Ethereum. What most people forget is that both currencies are currently used to buy the majority of other cryptocurrencies. That alone makes them valuable.
Onward and upward!
Filed under: Crypto-Currencies