Over the past few weeks the only coin receiving attention and love has been bitcoin. It has seen tremendous volume, publicity and price action. But what about the smaller guys? Most alternate coins (any coin other than bitcoin) on the other hand, have been bleeding and in a clear downtrend.
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WHY ARE ALT COINS BLEEDING?
Most alt coins are priced in terms of BTC/ETH. If trading on Bittrex check out the order book below to get an idea:
Given the nature of bitcoin forks "free money", many investors see it as a 'win-win situation' to buy up bitcoin for this free bitcoin gold (BTG). Take for instance the experience with bitcoin cash (BCH) back in August. All the alt coins were deep in the red as their life and value was sucked out and pumped into bitcoin. History is repeating itself. If you are holding a good quality coin like 'Civic' or 'Stratis'. Best to look at the fundamentals - the team, the project and whether they have a working product? Generally the top 20 coins (https://coinmarketcap.com) are good coins for a reason.
Investing takes patience. Just take a look at the graph for bitcoin since inception. It had some significant pull backs such as in 2013 when it rocketed to about $1000 from $250 and then fell back to $250. It stayed there for some time. That was when I first heard about bitcoin and trying to learn about it there was not enough resources or information. Now the world of cryptocurrency is significantly growing. We are transitioning at this stage I feel from early adopters to mainstream adoption. I am noticing more merchants accepting bitcoin now in Australia. Take KJC for instance: https://www.kjc-gold-silver-bullion.com.au/
I AM SITTING ON A LOSS FOR MY ALT COINS - WHAT DO I DO?
One word. Panic. I mean patience...
Too many people over-react and deal with their losses in the most irrational ways. "Always invest with money you are afraid to lose" and if they are quality coins like I aforementioned their value will prove themselves with TIME. It is best to spend time away from the compute in these periods and come back once the dust settles i.e. bitcoin gold has forked off.
PREDICTIONS IN THE LEAD UP TO BTG
These are completely my thoughts and I can be very wrong here, however I think:
- Lead up to BTG will see another Bitcoin rally
- Alt. coins will drop even further (these are excellent accumulation points for investing)
- Note there is a difference between investing and trading
- Once BTG forks alt. coins will have a large rally
- BTC 1/2 Segwit's influence might however make this rally short lived
Thanks for reading guys. If there is an area or topic you would like me to cover please feel free to leave a comment.
DISCLAIMER: Please note I am not a financial advisor and none of this should be taken as financial advice as they are my opinions and always do your own research as you should only be investing with money you can afford to lose.
Cryptoshaf
Donations:
BTC - 1M5anDbT4HAuA6XkJekbMfSTFR1ippEkch
ETH - 0xC1f258BeD748F03130edc6D3A07320C882eD8862
LTC -LWx8U7j5Y4vo8jq8CpqWKwWMXKrByaNW6s
