Is it still a good time to buy Bitcoin? Tips for those who are new to crypto investing.
I remember like it was yesterday, I woke up, checked Facebook and randomly somewhere on my newsfeed, someone that I did not even know had posted to my friend Tyler Williamson's Facebook wall about the price of Bitcoin reaching an all time high of $2,000. I felt several emotions in that moment. At first I was excited and my mind was somewhat blown, but then it started to sink in that I had missed the boat.
See, a few years earlier I found out about Bitcoin when my brother sold an air conditioner to a friend (it's been years, but i'm pretty sure the details are correct). Anyway, back to that air conditioner. So, our friend had several computers set up in his apartment for mining Bitcoin and he purchased or borrowed an air conditioner from my brother to help with the cooling process of those computers. We had no clue what Bitcoin was or why so many computers in a small apartment were needed, and naturally assumed he was doing something illegal.
Then the price of Bitcoin began to soar. I remember it reaching as high as $800, but going back and looking I believe it broke $1,000. Everybody knew that this friend had made a lot of money. We were not surprised at all when he put in his two week notice. My interest started to grow, but unfortunately not enough. My friend Micah discovered Coinbase and sent us his reference link which at the time was a free $5 of Bitcoin just for starting an account. I did not have a smart phone at the time, but my brother who is the type to sleep outside of the At&t store to be first in line for the newest Iphone did have one and he created a Coinbase account receiving his free $5. Not long after that the price plummeted and as far as I was concerned the Bitcoin craze was over and I could go on with life.
Back to my discovery of the new $2,000 price of Bitcoin. I believe the thing that surprised me the most was that Bitcoin had survived. My friend with all the computers had told me Bitcoin was the future of money and it would be the end of the banking system as we know it. I didn't doubt him, because as a Libertarian I have spent quite a bit of time educating myself on the fraudulent US Dollar and the Federal Reserve, not to mention he was one of the smartest people I knew. That said, I thought Bitcoin had died after that price plummet. No one I knew ever talked about it on Facebook, I had not come across any Bitcoin article in over a year and a half, so this was shocking to me. At that moment I decided that I was going to give Bitcoin my due diligence and research it until I knew why it had survived.
It took less than 2 days of research to convince me that Bitcoin had a long future ahead of it. I bought my first $200 worth of Bitcoin at $2,000, Ethereum at $140, and Litecoin at $25.
Etherum jumped up to $400 and everything I was reading told me that it was going to overtake Bitcoin so naturally I started buying more, but then out of nowhere the price dropped like crazy, all the way down to $180. I was a little sick at my stomach. Nobody I knew was investing so I was having to wade through these murky waters pretty much alone. Twitter, YouTube, and Reddit were the only options I had for finding information. I came across HODL which is an acronym that means HOLD ON (FOR) DEAR LIFE. Come to find out crypto currencies were rather volatile. It wasn't always pretty. So, rather than freaking out and selling I began spending everyday learning every detail I could about the space so that I could learn to read the market and have a better understanding of the volatile market.
So, all you new kids that keep blowing me up on Facebook messenger asking for investing tips, here is my guidelines for what to expect the next few months.
As you have seen I am sure, the price of Bitcoin broke $12,000 last night and is currently sitting just below $13,000. What that tells you is that a bull market pushed the price above $12,000 and then a few whales (Big money movers, millions at a time) bought in on the uptrend coupled with FOMO buyers and the price soared past $12,000 to almost $13,000. It wouldn't surprise me if Bitcoin tops $13,000 today, maybe before I finish writing this. However, pay attention, because what will likely happen is at some point, maybe around $13,4000, whales will begin to sell for profits. This will cause the price to drop by hundreds of dollars in minutes. The price will likely fall all the way back down to the $12,000 range before collecting itself and pushing back up towards $12,800 were it will likely settle in for a few days. That's not an exact science, it may fall before reaching $13k and it may race up towards $14k, but what I am trying to show is that the price increases a lot and then comes down hard before increasing again and settling at a good price. This trend is going to continue for weeks. Any time you notice the price begin to hold steady for a few days thats a good sign. It is crazy how fast it happens now. It used to take month for up swings and down swings. Now it happens in a day. When the price broke $10k it went as high as $11k and then back down to $9,600 within 36 hours. You are entering at a much different time than I did. It used to be that when the price shot up it took about two weeks and then when it went down it was like a month long bear market of misery with all the talking heads saying the bubble was popping. Now the price goes up and down by $1,000 in an hour and it's no big deal. So, what to expect out of Bitcoin in December. The next target is $15,000. We may hit that by the weekend or it may take until Christmas. I promise you the price of Bitcoin will be $15,000 by New Years unless this whole CME futures investing causes the price to drop which I don't expect it will. What I expect is that the price will flirt with $13k today and maybe even top it. Rise or fall it will flirt with $14k very soon and then on to $15k. Once it gets to $15k it will start moving by $2000 at a time. You're going to wake up to a $25k Bitcoin very soon. I wouldn't be surprised if $25k happens by February-March at the latest. It wasn't long ago that I was watching Bitcoin break $6,000 and telling people that it would hit $8k in November. I will admit that I didn't realize just how much Thanksgiving was going to push the price. I should have seen it coming though. With the way the price has gone up it was only natural that families were going to talk about Bitcoin at Thanksgiving if they had a family member who was invested. It surely happened at my Thanksgiving. I expect the same thing to happen at Christmas. Families are going to regather and talk about how much they've made since Thanksgiving and that will cause another wave of money to enter. I'm not sure what to expect in January, it may slow down a bit, but bet your sweet ass once income tax checks start coming in you're going to see a bull market that pushes Bitcoin to $30-40k.
Bitcoin is great, but Litecoin is bae. As much as I love all of the newcomers who say, "I wish I had listened to you with Bitcoin," perhaps more satisfying is being congratulated on calling Litecoin's up swing. I pretty much only talk about Bitcoin on Facebook, but with my friends that I know are already invested I talk about Litecoin. Very briefly, Litecoin was a hard fork of Bitcoin that went live back in 2011. Former Google employee Charlie Lee created Litecoin as a side project, but realized that he had actually created something quite brilliant. Litecoin has a bigger block size allowing for faster transactions and lower fees. Litecoin was the first to introduce Segwit, if you are not familiar with Segwit then that means you didn't invest before November, Litecoin and Bitcoin have now successfully performed atomic swaps which you will be hearing a lot about in 2018, and Litecoin will likely introduce the lightning network before Bitcoin which you will also hear about in 2018.
So, what to expect from Litecoin. I bought litecoin at $25. I predicted Litecoin to reach $50 when they introduced segwit and $100 by the end of the year. Both predictions have come to pass and now I look forward to seeing how my next predictions pan out.
Litecoin is extremely undervalued right now. If Litecoin had marketing pushing it the way Bitcoin does the price of Litecoin would be $2,500 right now. The average joe may not realize the benefits of Litecin over Bitcoin, but the whales that I spoke of earlier will. Remember that I told you first when you wake up in a few months and the price of Litecoin is $1,000 and maybe even $2,000. Litecoin's next target is $125. I believe it will hit that by Jnuary 1st. After that the target will be $200 and then $500. Litecoin will most likely see big price swings. and maybe even a couple crashes that cause panic, but for those who HODL they will be very happy.
So, I meant to spend more time talking about when to buy, but I started rambling about other things. So, Il make it quick, don't buy on up swings. The price of Litecoin is about $103 right now which is a good time to buy. It'll go up to $110 soon maybe even $115, don't buy there. It'll settle down around $106-108 after that, buy then. Next it'll shoot towards $125, and then you'll get another buying opportunity around $115. After it breaks $125 for good, look out, it will start making big jumps.
So, get in now, and don't worry if the price temporarily falls from your buy in point. I watched Bitcoin fall from $2,200 to $1,300 the week after i bought, I watched Ethereum's crash that I mentioned earlier, and I'v had to sit and wait, and wait, and wait some more for Litecoin to take off. If you can't handle 20% losses then you don't deserve 100% gains.
If you like my free information, but consider me as an influencer to you investing then please consider using my coinbase reference. I do this for free and would not possibly expect anything in return, but hey, you and I both get a free $10 of Bitcoin if you use my reference so why not. Thanks for reading and good luck.