2. Yesterday’s note also contained the notion that Bitcoin [BTC] would remain the premier network in the crypto space for the foreseeable future. Right now, it doesn’t matter what crypto you own — you’re taking a bath! Yep, they are all getting dumped. But, hey, that’s crypto! You don’t get a chance to make crazy gains without a commensurate dose of high risk and high volatility. Let me share an observation with you after having been involved in this market since 2017. When cryptos run hot, everybody tries to jump on board the gravy train for the quick and big win. Hey, I get that. However, crypto’s nature, at least of as now, is to have big bear drops that spook all the weak hands, momentum players, graph ninjas, and whoever else isn’t prepared to ‘HODL’. At exactly the moment people should be getting MORE interested, they dump the whole idea and go looking for the next hot thing. Crazy. Far better to do your homework now, take advantage of the lower prices, and get ready for the next surge up. My colleague Ryan Dinse received a fantastic customer letter the other week from a client of his that came on board his crypto service in either 2017 or 2018. That client then preceded to endure the crypto winter for over a year. Yep — crypto went flat for a long time. Bitcoin collapsed from US$20,0000 to US$4,000. But this client stuck it out. And then spring and summer came again. He told Ryan a few weeks back he was up $800,000 at one point. We can’t say for sure what’s happened since. But when you have a gain like that, you have a powerful position to weather bear phases like now. The point is you have to commit to the sector, I think, and put a strategy in place from the get-go. Are you trading or investing? And you have to learn. So if you’re interested in crypto, make sure you hear what Ryan’s saying about the sector now. You should at least save yourself some heartache. I have another mate that somewhat incautiously threw 10 g into Ethereum [ETH] at the wrong moment. Now he’s stuck down 50%. He reasoned at the time he was in it for the next five years. Probably that should be OK over time. But much better to start off on a stronger footing than that. A little guidance can be very helpful in avoiding this type of thing. As I say, check out Ryan’s advice here. Regards, Callum Newman,
Editor, The Daily Reckoning Australia | 