Sat May 11 2019
It was not my intention to make a Part III to this series I will now be calling "the ever changing price of Bitcoin". But this is too big to ignore. So here we are.
EDIT: When this was written the other day, the price was at $7100. It is over $8100 now. What is fueling this spike? It's seems it is nothing more than mass quantities of investors using the FOMO approach. Which is just the silliest thing...
If nothing else proves to be true about all the stuff I've said about this, I was right that the Bitcoin price is unpredictable. The great thing (for me) is that it's almost up to the price at which I made my very first purchase. Last year, when I first got into this stuff, I put up some cash to buy Bitcoin. It was my very first purchase. And at the time, BTC was at something like $8500! And it had been going up for a while. So it seemed like the smart time to buy. At that time, the analysts were saying it would go back above $12k at some point.
If course, it turned out being a very bad time to buy. Because the price started going down. And then it kept doing that. And right when most of us figured that we had seen the bottom, when it as around $6300, it proved to not be anywhere near the bottom.
Well, whatever... You never really lose money on an investment until you sell. And I still have that original stake. Seriously... All the other money that I have wrapped up in Crypto is from sources that are outside that original stake. It is precisely that which prompted me to write this. Because with the price of BTC spiking as it is, it's making it really difficult to make money with all the other stuff. If you have any questions about what I mean by that, read pretty much any other article on this site.
All the faucets that give out Bitcoin are giving out way less. The higher the price goes, the less the faucets will give. It's the same thing with any sort of "pay for click" sites. They are giving a fraction of what they we giving out when BTC was priced in the $3000's. And it's like that across the board. The price of doing any sort of trading has gone up too. I've seen the minimum trades go up too. If you're working with tiny amounts of money, that can be a real problem.
Something that I noticed early on is that all crypto prices somehow fluctuate almost exactly as Bitcoin. For instance, Etherium and Litecoin are like the closest siblings to Bitcoin. And when Bitcoin goes up 5% in a day, those other two go up exactly 5% too. In words, it's not really possible to make money by trading between those currencies. It's like have a quarter and selling it for 5 nickels.
What to do, what to do?
If you are reading this hoping for advice, I will give you advice. But understand that this is nothing more than my opinion.
You should have your Bitcoin in two distinct buckets. One for your investment, that you don't sell. And one that you intend to cash in whenever the price spikes. The price is spiking. It's also fluctuating like crazy. Worse than I've ever seen. Between last night and this morning I saw prices as high as $7400 and as low as $6900! That is a mad price swing! My advice is to sell your BTC that is not tied up as an investment. And when the price swings low again, buy it back.
As of today, with BTC spiked up, it's actually a good time to sell. Not to trade - cash in. Of course, the big mistake there would be if the spike trend continues. If you sell out now, you lost out.
If you need help on how to go about setting up your buys and sells, please read this article on how to use an exchange for trading.
Is there really free money out there?
Cashing Out is Expensive
Bitcoin Rises Above $13k!! For a little while.