The Dow fell this week. The end is here. All Crypto stocks took the kind of beating the AV kids used to catch when the roid-heads from the varsity squad caught them after school.
There’s blood in the streets and from the smoking ruins, we must pull ourselves out and look ahead. How do you move forward?
Wait – Why shouldn’t I just give up on Crypto?
Blockchain technology and Cryptocurrencies aren’t going anywhere. The Cray Cray in the market is and was a typical expression of human behaviour. What hypes up, will crash down. It’s never different this time(™).
Smart crypto money was always going to be long term. First of all that doesn’t mean 1-3 months, that’s years. Never buy a crypto product you aren’t comfortable holding for more than 18 months-two years.
In 1994, .25% of people who had access to e-mail used it. In 2018… well, you get it. In terms of Crypto, adoption of the tech and usage of the actual currency is still below 1% compared to the potential access of the public to this market.
If and when adoption hits something like 5-7%, it will make the last hypefest seem like a firecracker next to a stick of dynamite.
Your job as a smart investor is to make smarter plays in this space, and avoid making the same mistakes as everyone else.
In the next few weeks you have a great opportunity to look over your investment plans and figure out what moves you should make. Stop doing things like jumping from one crypto to another. Ignore reddit and twitter. (But not Equity Guru. We are cool.)
Forget pointing fingers and every other blame game. When the bulls are running everyone does the same stupid stuff. We’re all making money, well maybe this guy with a YouTube channel is making sense!
Party’s over.
However, when the carnage and dust settles, you should be ready with your plan to pick up the right bargains.
What’s next?
Well a few more economic shocks could be coming, so brace yourselves. The SEC among others are planning to meet this week, and crypto will definitely be part of their discussion. This crypto crash is a great excuse for a lot of government players to step in and look at regulation.
Any big economy that restricts or bans crypto will have a huge impact on the market, fuelling fear.
You need to set up a new investment strategy. This series is for anyone who jumped into the fun with both feet and now is losing money and is freaked out and needs to know the real rules of investing – not the magic beans version that’s been pumped out into the media and Internet over the last little while.
Tomorrow we start with Part II: Your investment Strategy