Is Crypto Pumping? What Are The Risks?
Where should we put our crypto to stay safe? How can we maximize returns?
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Tim Draper says this is possibly the greatest age in the history of the world.
It's global and decentralized and it's completely transforming the world.
How can we make a change? Angel investors have made the most money when they find an entrepreneur that enters a large industry run by an oligopoly that provides bad service at a high cost.
I'm bullish for this reason.
It's also important to consider fat tail risks.
When we consider risk on a normal distribution bell curve we fail to account for risks that are 3+ standard deviations from the mean. We become very poor at judging the possibility of these types of events happening.
What could happen with crypto and how should we be prepared?
I look at the emotions that played into the 1929 stock market crash. We can see some of those same emotions come into play when the crypto market pumps. Human emotion doesn't change, but the vehicle used to move it changes.
When the market starts to pump you feel the hype start to build. It's beautiful, but it's important to pay attention to the emotions of the market. Let's stay ahead of the crowd.
Right now there are almost 1600 coins. How many do you believe will survive? 100? that would mean that 19 out of 20 coins will fail. If we have a big shakeout, how do we prepare for that?
I play a video of the Nasdaq crash during the dot-com crash. The market lost 78% of value. Pets.com failed, but Amazon survived. Why?
Amazon had raised $600 million so they had a rainy day fund. Plus they had a great leader and a product. They kept their head above water and ended up a big winner.
What are the cryptos that you would choose if 19 out of 20 failed?
Which have the tools in place to be Amazon?
Who has money? Who has a product? Who has leadership?
Steem, EOS, ETH, BTC, BCH etc.
You need to decide. Think where do you want to put your money. What coins have the infrastructure in place to survive if the market crumbles?
I've shifted a majority of my portfolio into coins with a use case.
I'm still playing with ICOs and altcoins for high returns, but it's not my main focus.
We have enough fat tail risk and reward in crypto. We don't need to leverage into even more risk.
Just my opinion. Not a financial advisor.
ICOs are starting to be harder to get good deals. Be careful you aren't buying during the main sale.
It's my opinion that you need to be in friends and family round or a private investment round for ICOs now to be worth it.... or you may end up a bag holder for the earlier investors when you coin hits the market. Pick one of the 1500 coins already on the market and you probably have close to the same opportunity as you do with an ICO.
There is plenty more to hear and see in this vid. This is a general recap for people who like to read.
Cheers my Steem Friends. Much Love to you
Crypto is still in its infancy, and the money that has entered in the last few months would blow your mind.
It truly won't be long where most shitcoins are turned to dust and the "value" they pulled from BTC will be returned.
I currently hold a Mix or Platform and Dex coins as its pretty clear they will lead the charge.
Steem has far more "value" than bitcoin. Gold was traditionally a store of value simply because it had no other use... and was scarce. Follow the use cases.
This is far more like the adoption of cars over horses. There is no going back to centralization... as long as your crypto is working for you then you'll be just fine.
Steem is centralized though, the 'devs' own over half of it.
Mostly in the form of upvote bots and delegated stake to encourage more growth. In this case the chicken comes after the egg; there is no doubt the platforms like dlive, dsound, and vanilla steemit aren't orders of magnitude more beneficial for the average user who up until now had to subject themselves to data collection, poor clickbait content, and ads in general. Without even the possibility of monetization might I add.
yeh bitcoin tends to draw its power from the shit coins
I am HODLing to Steem and EOS for sure :) Prices may dump again but I believe in the future values of these coins. ICOs are definitely high risk and high return. Yet I had no success in getting a high return yet (sobs).
Same here ( even when prices dumped lately I was waiting to get down more as not much cash to use so need prices to dump more so to buy more Steem and eos ... finally prices getting up again) (sobs) 😢
No guarantees in crypto ... only oppoprtunities ^^
Me too, especialy Steem, i expect (and this is not a financial advice) that 1 Steem after 10 years worth 1000 USD. That is a market cap of +/- 270 billion USD, which is achievable. Look for example to Ethereum, 2 January 2017 1 ETH worth 8 USD, 15 January 2018 1 ETH worth 1390 USD. So that was only 1 year and 2 weeks for Ethereum. So if i say after 10 years 1 STEEM could worth 1000 USD, yes it could. Why not?!
While I've not carefully read STEEM inflation rates compared to adoption rates, I'm quite sceptical of STEEM reaching 1000 USD. I'm not saying it's not possible, but there are a few key points to consider:
1 Why don't I buy STEEM myself? Because I can basically get it for free by just writing posts. Now of course that's no easy task. Most posts get next to nothing in return, but at the same time, I believe people will be hesitant to buy something which can theoretically be obtained almost for free and which is constantly being produced.
2 While investors and optimistic users currently keep the prices up, the actual investor-independent value of STEEM is based on influence. Influencers can buy STEEM to get more exposure on their writing, advertising, news... This exposure will only be worth something if Steemit consists of both consumers and producers. I see a tendency these days that people just write, but don't read. They leave the upvoting to curation trails and bots. A million user content network is worth nothing if people don't consume its produced content. I find a lot of value in the Steemit community myself, but I'm not sure outside influencers will see it the same way. Unless you actively engage in the community, Steemit isn't really a very good place to go to just have a good read.
But then again there are other factors like Steem's superior performance, SMTs... which makes me optimistic. It will be exciting to see;)
The most people (especialy wealthy people) don't have the time and the patience to earn some Steems just because it's for Free. If they believe in the project as an investment opportunity and they see the benefits, than they will invest in it. And the people who like to earn some Steems for Free, they will leave Facebook and that kind of outdated Social Media and move to Steemit. And of course, nobody knows what will happen in the future, but I still think that Steem will be a huge Social Media platform, it's only a matter of time. Let's say, we hope! :)
Dont forget steem goes through decimation every about 3.5 years to limit the available supply and keep its value.
I think when considering the value which a coin can obtain you have to consider its supply limit I can't see coins with an ucapped supply limit or very high ones reaching extreamly high values per unit like doge or bcn or steem scarcity is a measure of value gold wouldn't have its value if you could easily find large amounts just lying around the place
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Here is my update on EOS ! Follow me for regular TA on all your favourite crypto pairings (if something is missing feel free to ask and I will do it!) - https://steemit.com/crypto/@heyitskolin/eos-btc-long-term-price-projection-200
I feel more positive about 10K BTC price in a week after last few hours dump
That’s very easy to achieve .. I am looking at BTC to 20k by June and 50 k by the end of 2018
Though no guarantees in crypto , huh 😀
FXTM is offering its traders the possibility to profit, by taking advantage of cryptocurrency price movements in the forex market.
Please make the virtual virtual objects, only can be BTC
it is so risky investing into ICO, especially we didn't know what it is, it's like you wanna eat an unknown fish, that fish might have a poison that could kill you, so it is better to research that kind of fish before eating it. The same on investing ICO we have to know what they are, do they have an active community, you can find them from GITHUB whether they are actively developing their platform if it's an open source, Do they have an active and reliable team?....
hodl is a safe strategy to avoid pump & dump :)
True, but most people want quick money....
I would have to agree with your idea of checking out who created each coin. Thanks for the post. I'll give you a quick follow!
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I believe Steem and Golem are two coins that will be around and have value. Steem has the best working and actively used blockchain and is just in its infancy stage, it has a first mover advantage as far as smart media token is concerned. Golem has solved a huge cloud computing issue and is already live with its Brass Golem project, just like Amazon had a rainy day fund, Golem (GNT) has half a billion in fiat to continue to fund the project. Just my 2 satoshis. Cheers.
Do a blog post about it.
Risks super high, catch the wave and run away, this is the rule :)
bitcoin need to go over 12k to be 99.99% bull market
Thanks for this informational post.