Mon Mar 04 2019
I know what you're thinking. Just last week, we were saying how awesome it was that BitCoin was above $4000 for the first time in over a year! That's probably because just last week all major news sources were reporting that BitCoin might finally be out of its slump and is once again on the rise! Time to buy!!
Today we wake up and find out that all those same sources are reporting that BTC has slumped and it might be getting worse.
So which is it? Is it going up or going down?!
Because I do not own a crystal ball, and I firmly believe that those things don't really work, I cannot tell you the answer to question. And for the exact same reasons, no one else can either.
There are analysts out there that have studied the market, the trends, and the charts. They spend their working lives pouring over historical data. They read all the reports, and about which companies are getting involved or pulling their money out.
Clearly those are the people we should be looking to for advice, right? Well, they all owned BitCoin when it was over $9000. And they are still talking about it now as if they have some magic future seeing device and can tell us what will happen next.
Do I sound like I'm being condescending? I hope so, because that's what I was going for.
The thing is, no one knows
I don't care who they are or who they work for or how much they say they know. If they don't include the word "luck" in their forecasts, they are not telling you the whole truth. They are giving you information based on all those things I mentioned before. But in no way can that information be considered 100% reliable. It's more reliable that if you did no research at all, of course. But there is no certainty. At all. And that is why it is a terrible idea to rush to invest all your money as soon as they tell you to. Lots of people lost their asses last time around.
This market is too volatile to be predictable with any certainty.
So please, don't invest more than you can stomach losing.
Imaging being that poor sap that read what the analysts said when BTC was at $9000, and were told that it would go above $20,000 in the coming years. A whole lot of people lost their life savings. Or worse, they lost money they didn't have. They lost other people's money.
To make matters worse,
ALL coins are tied together, more or less. That is, when BTC goes down 5% overnight, every single other coin also goes down by exactly 5%. So if you were waiting for BTC to drop so that you could sell some cheaper coin back into it, good luck with that. Because odds are, the difference in prices is generally the same.
That is not to say that it's impossible to make money with this sort of thing. Of course it's possible. You just have to be there and notice when these fluctuations take place. We are IN one of those times now. It is that generality in price difference that you need to watch for. In other words, you need to be holding the right coin that holds its value at the exact moment that BTC drops. Then use it to buy your BTC. And no one can tell you which coin that is, or when it will happen. That is where luck comes into play.
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