Connect with us

Bitcoin

Sunday Devotional: Keep Your #Hodl Hand Strong

Published

on

If you bought now, at the all-time highs of Bitcoin and you’re itchy about $5,000 or $10,000, perhaps taking a look at those who’ve been in your shoes before is in order. Or perhaps you don’t have much Bitcoin, but you’ve got a lot of Ethereum and tokens on its blockchain. Even better, perhaps you’re holding a number of one of the alleged Bitcoin long-term contenders, XMR or Dash.

// -- Discuss and ask questions in our community on Workplace.

If you look historically at the people who’ve bought during other highs, the ones who got impatient are the ones who lost the most. The ones who quietly held through were rewarded the most richly.

We can take the example of a friend of the publication, who sold Bitcoin very near the ultimate bottom. Strictly speaking he could have had $50 million in Bitcoin assets today if he had instead decided to hold, but things certainly looked bleak for the currency in those days. He was not alone in selling the bottom, nor truly irrational when one considered all the angles. No one ever is. This is what you have to keep in mind: people who were buying at that time were paying the most anyone was willing to pay, and people who were selling were accepting far less than they had seen others sell coins for. But some people were just off the market in those waters. These people played a successful strategy through a long, cold winter.

Some mining outfits are always dumping their coins, no matter the price. Bills have to be paid, after all. So while it may seem that Bitcoin is “stable” at its current prices, we’re just as likely to see turbulence and dips. Unless you’ve some more performative place to put your funds (such as one of the trade recommendations or ICOs reviewed here at Hacked), you’re still probably going to end up with a greater long-term profit by retaining the coins. Especially if you retain them in ways that ensure they truly belong to you, IE, off exchanges during times when you don’t anticipate actually trading them.

There’s nothing wrong with selling the highs and buying the lows, but long-term, some people have done equally as well by doing nothing at all. While this article is meant as a broad overview, one can imagine that some people had to take measures to deal with the old weak hand syndrome. After all, if everyone is panicking and letting you know the building is on fire, it only makes sense to try and escape with everyone else.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

But if you believe firmly in the longevity of your asset, sticking it out may become worth it. Increasingly, products will emerge that will allow people to maintain possession of their crypto assets but extract leverage via peer-to-peer and even institutional lending. Such a paradigm will enable the crypto class to enter the business world in unforeseen ways, perhaps in unforeseen numbers.

Buy and hold is a strategy that will work well for so-called “blue chip” cryptos, but it is not future-proof. Aside from security holes that can arise in cryptography from generation to generation, simple innovation can displace something like a cryptocurrency, and network effects can shift current. If one region of the world becomes less friendly, in a regulatory sense, to do business in, then perhaps cryptocurrency will move its volume to another.

Cryptocurrency is by definition censorship resistant, after all, because a design which does not enable its fungibility is essentially the opposite of the “digital cash” paradigm. When such problems arise, those who kept their hold hand strong will still be able to conduct business, and where things are most repressive, in a more catastrophic forecast, still be able to escape troubled waters.

featured image courtesy of Pixabay

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

2 Comments

2 Comments

  1. mzvyga

    August 28, 2017 at 1:43 am

    Sell Bitcoin! Sell all…

  2. Tarik

    August 28, 2017 at 10:36 am

    Great overview!

    “There’s nothing wrong with selling the highs and buying the lows, but long-term, some people have done equally as well by doing nothing at all. ”
    Very interesting statement and I would love to see numbers about it – are you aware of any?

    Not that I doubt, in fact it makes all sense to me: the times I jumped out for any reason, I often ended by missing some other-moment reward – seems like staying in the game unconditionally is a great strategy indeed! (at least for those “blue-chips”)

    About numbers, I can only talk about my own: I bought few bitcoins and litecoins ~3y ago, and I literaly left it and forgot the crypto world until early this year. What my surprise to find out that my btc got stolen and my ltc actually got multiplied!

    Regardless the bad experience with my btc, a simple financial analysis of my gains with ltc and (would be) btc…… I don’t think I could do any better if actually dealing with the market closely!

You must be logged in to post a comment Login

Leave a Reply

Analysis

Technical Analysis: Litecoin and NEO Jump as Bitcoin Trades near $8000

Published

on

The cryptocurrency segment continued its bullish run, as the total value of the coins climbed above $230 billion for the first time ever, while Bitcoin also posted marginal new highs. The most valuable currency is still overbought regarding the long-term picture, and we continue to expect a deeper correction in the coming period, despite the recent strong rally. Support levels are still found $7700, $7000, and $6700 while the $8000 level is ahead as a major obstacle.

// -- Discuss and ask questions in our community on Workplace.

BTC/USD, 4-Hour Chart Analysis

Litecoin has been the most active major besides Bitcoin, as it rallied strongly after breaking out above the key $64 resistance and it breached the next target at $75 before heading below $70 again. The coin remains in bullish long- and short-term patterns, and we expect a move above the major resistance zone ahead with the next target found at $82.50.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Litecoin/USD, 4-Hour Chart Analysis

NEO is showing strength in the second half of the session, while Monero is recovering well from a short-term dip, similarly to IOTA and Ethereum Classic. Ethereum continues to represent stability in the segment, while Ripple failed to build up momentum so far after yesterdays spike higher. With still most of the altcoins being in bullish setups, let’s see the short-term charts.

(more…)

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Analysis

Technical Analysis: Ripple Breaks Out as Bitcoin Tests Highs

Published

on

Cryptocurrencies are having another bullish session as the total value of the market surged to a new all-time high near $225 billion, with the help of the rally in BTC and Ripple, and despite the drop in the value of Bitcoin Cash. The most valuable coin its record high yet again after the brief but steep weekend correction, despite the still overbought long-term picture. We still urge traders and investors to wait for a deeper correction before entering new positions here, with support levels found at $7000, $6700, and $6000.

// -- Discuss and ask questions in our community on Workplace.

BTC/USD, 4-Hour Chart Analysis

Ripple has been the other main mover of the day so far, as the coin skyrocketed on huge volume and breached the $0.26 level before turning lower and stabilizing near $0.23. The coin triggered a short-term buy signal by moving above $0.2250 and it remains bullish on both time-frames, despite the pull-back, with another major target level ahead at $0.30.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Ripple/USD, 4-Hour Chart Analysis

The other majors are little changed expect IOTA, which further added to yesterday’s gains and reached overbought readings, while Ethereum Classic and Dash continue to drift lower in short-term correction patterns. Let’s see the detailed analysis of the short-term charts.

(more…)

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Bitcoin

Wanna Take a Road Trip?

Published

on

After many blasts and sounds of gunfighting on the streets of Harare in Zimbabwe, it seems that the army finally has things under control.

// -- Discuss and ask questions in our community on Workplace.

The 93 year old dictator Robert Mugabe is under house arrest for trying to set up his wife, AKA Gucci Grace, as the next leader. The military has seized control over the state media and is preparing for the first regime change in the countries modern history.

With the extremely volatile nature of cryptocurrencies, it’s difficult to view Bitcoin as a safe haven asset. But if you happen to live in a currency-less country in the midst of a coup that has ATM withdrawals capped at $20 a day, the worlds global digital currency seems to provide the only stable alternative.

One bitcoin is now going for about $12,499 in Zimbabwe’s markets. Anybody down for a road trip?

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

@MatiGreenspan
eToro, Senior Market Analyst

 

Please note: All data, figures & graphs are valid as of November 16th. All trading carries risk. Only risk capital you’re prepared to lose.

Market Overview

The mild selling attitude that was observed on Wall Street has been completely reversed by Asian investors this morning. The Dow Jones fell 0.65 yesterday, which isn’t much but it is the biggest decline since September. After a big pushback, the China50 and Nikkei 225 are up more than 1.3% today.

This sudden surge in stocks comes as the currencies and commodities markets remain rather docile. There’s plenty of news events on the calendar today that could change that though and of course, all eyes are on Washington DC and the NYSE.

Sneaky Politics

Donald Trump’s Tax bill is expected to pass a vote in the House of Representatives today but it is very likely to fail in the Senate. Republicans took a bold move and tried to squeeze the “repeal of Obamacare” right into the tax cuts plan.

The new clause we will remove the fine for Americans who don’t purchase health insurance, a move that would basically render Obamacare impotent and topple the insurance companies. Sneakily, it would also reduce the effect of the tax bill on the long-term US deficit enough to allow House Republicans to pass the bill without the Democrats’ approval. Though this could be seen as progress, they’ve only brought themselves one step closer to a brick wall when the bill hits the Senate.

The promise of reduced corporate taxes has brought the stocks up quite significantly over the past few months and nobody really knows how well the prospect is currently priced into the markets. With the next Fed meeting a month away and earnings season almost over, this political drama is taking the center stage in American markets.

Crypto BattleGround

Over the past 24 hours, the value of all cryptocurrencies in circulation has risen by an outstanding $5 Billion and the entire market is now worth $220 Billion. Bitcoin itself has added $8.2 Billion to its market cap and now trading at $7,375 on eToro.

After the unification brought on by the cancellation of the Segwit2x hard fork and the quick rejection of the notion to replace BTC with BCH, the first and most popular digital currency is now asserting its dominance over the market.

However, the next $300 could prove very difficult ground to reclaim. There are generally less buyers when the market is near the top and it would require a breakout of the all time highs in order to generate new interest from new buyers.

The sugar rush on the 2x cancelation caused the price to spike as high as $7,872 (orange circle) so everything between the previous high (blue) and the all time high should be considered battleground territory.

Please let me know if you have any questions or comments. A lot of the info that I have comes directly from you, the readers. So please keep tagging me and sending in your thoughts.

This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.
The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.

Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Trending