Just a quick post today regarding the state of the market and my thoughts on lending platforms. As many of us know the market is ugly right now. BTC dropped below $8000 overnight and almost everything is down by quite a bit. Guys and Girls, we knew this was coming, we knew this would probably last until the middle of Feb. Stay strong!!
Market Trend
If you look at the above chart which starts around July 2017 and goes through today, we can see the trend line that I have drawn. Around Nov 2017 we can see a huge spike in price. This huge spike while good for many, was not really sustainable. What we are seeing now is the correction back to the trend line that has been complicated by all the recent fake news coming from all over the place. It is no surprise that these "fake news" articles keep coming one after the other week after week. Why do you think that is? Well let me tell you. Many huge investors (cough Wall Street) are starting to consider crypto as a true investment platform. You think they want to buy in when it is high? Heck no. Personally I think that bigger fish are pulling strings here to drive the price down using these fake news articles to a more attractive buying point. I mean think about it from their point of view. We know every January the crypto market sees its low point (this has happened consistently for the last 4 years). Why not push the price as low as possible and then make 2x or even 3x gains in just a few short months. Once it reaches that point, they will buy in and then ride the wave back up with those of us that are holding. Yes, the price has dropped, but if you look at the trend, it is where it would have been had we not had the huge surge late last year. I think we are going to see this for another week, maybe two, then it will start to go back up in a more stable and sustainable manner.
Lending Platforms
I will preface this by saying that if you get offended by this, I am sorry but I feel I speak the truth on this. DO NOT PUT YOUR MONEY IN A LENDING PLATFORM. PERIOD. As we all know, Bitconnect fell flat on its face. It was not sustainable yet people still got into it knowing that. Other lending platforms are popping up all over the place and people are still getting into them. STOP. You are not only hurting yourself but the crypto community as a whole (because when these platforms fail, it creates FUD). There is a reason that respected crypto news channels on YouTube and DTube decline to be paid by these companies to do a review. They are crap and you will lose long term. I heard another review today about a lending platform that is starting up in California and is offering 2%-6% a month in gains. The person reviewing it stated that this was sustainable and a good idea. If you think that 2%-6% gains in a month is good then invest your money in a 401K or traditional investment firm where you are much safer then crypto. You can make those types of gains in regular stocks. In crypto you can easily make that in just a few days and lets be honest here. We are here to make gains since the volatility of the crypto market makes it quite easy to do so.
If you really want to get into something that trades on your behalf, use a bot. I run a bot myself and it controls about 1/4 of my daytrade capital and it consistently makes a few percent each day. The difference here is that I researched it, I configured it, and I control it. I can turn it off at any time, take my money out, or whatever. I still make more money doing trades myself then the bot will ever make. The only advantage to the bot is that it runs 24/7 so it can watch my stuff when I can't.
Well that's about it for now. As always please feel free to comment and let me know your thoughts on what I have discussed. Hopefully the market will turn around sooner rather than later and we can all get back to making some money :)
NOTE: I am not a financial advisor and this is just my opinion. Before making any investment please make sure you do your research and fully understand what you are investing in!