Crypto has been correcting today, after a nice run up. Friday is futures expiration date and if you’ve been following the patterns for the last year, this is typically a time when crypto prices fall. Don’t panic. This is not the end of the bull run! Well, I don’t think it is, but disclaimer here, I don’t claim to know the future and I certainly wouldn’t make financial decisions without doing my own due diligence. So, I suggest you do yours!
I still think the crypto bull run has legs, however, and we are not yet at a blow off top. However, the recent price action is Shiba Inu suggests that the market is overheated.
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Again, if you look at the patterns over the last year… doggy meme coins typically go through the roof right before the crypto market falls. Will this time be any different? Let’s just say I would not be surprised if the less speculative offerings such as Bitcoin, Ethereum and Cardano (as well as Solana, Polygon, Binance, etc.) experience some losses for the rest of the week. However, my thought is that the consolidation will be done sometime Friday and we’ll have a great weekend that will set us up for November.
If I’m right, it could make Halloween more of a treat than a trick for the Bitcoin bulls among us.
If you are feeling nervous as the price of the crypto falls, it’s time to look back for some perspective.
I personally did not buy my first cryptocurrency until January, and I stopped buying in April. Why?
While I had been thinking of buying Bitcoin last year, I held off because I wasn’t ready — I’d just bought a house and was still dealing with the emotional detritus of a divorce, among other things. I stopped buying in April because I was diagnosed with a lemon-sized brain tumor.
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Brain surgery, radiation treatments and all the other medical procedures have basically eaten up any and all of my funds. And one rule I follow no matter what — I only invest money I can afford to lose. When you’re battling for your life, investing is not your primary focus. Survival is.
I’ve been struggling financially, but despite this, I have held off cashing out my investments because I am supporting my elderly mother. Given my prognosis, she will probably outlive me. She can not afford to pay the bills without me. The crypto is an insurance policy. It will give her some breathing room while she’s coping with the loss of her child.
The reason I’m sharing my personal story — to point out that life happens. I don’t know your specific situation, but if you’ve had to deal with things that caused you to make less than optimal financial decisions — well, don’t beat yourself up. Maximizing your profits is not the only goal in life.
That being said, for a lot of people, crypto has been a lifeline to wealth.
For example, what kinds of gains would you have seen if you had bought Bitcoin, Ethereum and Cardano a year ago?
In late October, 2020, Bitcoin was hovering around just under $14,000. Ethereum was at $405 on October 27th, 2020. And Cardano? It was at $0.10. That’s right — ten cents.
What are these coins doing today?
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Last I checked, Bitcoin was being offered on Coinbase for $58,815, Ethereum was just below $4000 and Cardano was at $1.96.
This means that Bitcoin has had an over 400% gain in a year, while Ethereum’s price is now close to ten times its value a year ago and Cardano is almost twenty times its price from last year. And this is even after the latest minor correction.
These are amazing gains. If you bought in a year ago, pat yourself on the back. If you waited until last week to buy — don’t despair. While I doubt you’ll see prices rising this quickly in the future, there is still plenty of room for the crypto market to grow.
If you are new to crypto, this latest drop in prices means it’s a great time to get in. There is still room for profit in this bull run. You’re not going to see the 10x gains you would have if you got in a year ago, but you could still double or triple your money, depending on what coins you choose.
My recommendation? Don’t snap up the meme coins. Well, if you want to put a small amount of your portfolio into them — that’s fine. But put the majority of your money into the more reputable plays. Some of them still have plenty of room to grow. I personally really like Algorand, Enjin, and Polkadot, but there are plenty of smaller coins that show great potential.
Do your research and diversify based on how much you can afford to invest. Remember that crypto is volatile, so balance your portfolio with more traditional holdings. And have some fun!
BTW, if you find my articles interesting, informative and/or entertaining, consider donating to my Gofundme. A friend of mine set it up to help cover my medical expenses. Thanks so much!
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