Bitcoin Price Moves To $9,000 With Strong Momentum

The bitcoin price has surpassed $8,800 after rising more than 6 percent over the past 24 hours. Volumes across major cryptocurrency exchanges remain strong and the daily trading volume of the market has increased past $26 billion for the first time over the past month.

$9,200

On March 21, the bitcoin price tested the $9,200 support level but failed to sustain momentum for mid-term growth and fell below the $6,500 mark within two weeks after struggling to bounce off $8,200.

At this juncture, it is likely that the bitcoin price tests the $9,200 level it had touched in late March, and a movement past that level would lead the bitcoin price to the $10,000 region by the end of April.

In November 2017, investors described the $10,000 mark as a psychological threshold and a key milestone. At the time, traders predicted the price of bitcoin to surge substantially subsequent to surpassing $10,000. Almost immediately after breaking into the $10,000 region, the bitcoin price surged to $14,000 and eventually to $20,000.

Since the initial correction of bitcoin in February, the market has not been able to demonstrate any sign of stability. The price of most alternative cryptocurrencies (altcoins) and tokens followed the short-term trend of bitcoin and the volume of regional exchanges in Japan and South Korea significantly decreased.

Fundamentally, bitcoin is in an ideal position to initiate a new rally in both the short and mid-term, given that the adoption of cryptocurrency in general has started to increase. Moveover, in late 2017, the majority of speculators who bought into the cryptocurrency market did so out of FOMO, or fear of missing out, without solid knowledge in the structure and fundamentals of cryptocurrencies.

Over the past five months, the awareness of cryptocurrency has increased drastically and a substantially large number of individuals have started to understand the basics of decentralized financial networks and cryptocurrencies.

As such, fintech company Smart Valor CEO Olga Feldmeier stated that in the next two years, the bitcoin price will reach a value of $100,000, and within 2018, the bitcoin price will surpass its previous high at $20,000.

“I believe that we will see a comeback to the height achieved at the end of 2017 this year. Over the next two years I still predict we could see it reach a value of $100,000,” Olga told The Independent.

Rise of Altcoins

Throughout this week, CCN reported that the altcoin season may have started with strong consistent performances of small cryptocurrencies and tokens. Today, several tokens like STORM have recorded a gain of above 30 percent against bitcoin and about 40 percent against the US dollar.

Investors have gained more confidence in the cryptocurrency market and are now willing to take more risks by investing in cryptocurrencies with higher volatility and lower liquidity.

Still, in an interview with FT, Ethereum creator Vitalik Buterin stated that the valuation of most altcoins or tokens cannot be justified and are overblown. “There’s projects that never had a soul, that are just like, ra-ra, price go up. Lambo, vrromm, buybuybuy now!” Buterin said.

Bitcoin Raise 7% to $8,460 Overnight as Cryptocurrency Market Rebounds

After dipping below $7,300 on most major cryptocurrency exchanges, the price of bitcoin has raised 7 percent overnight, increasing from $7,240 to $8,467, triggered by a variety of factors.

G20

Many analysts have attributed the recent increase in the price of bitcoin to the result of the 2018 G20 Buenos Aires summit, during which the Financial Stability Board (FSB), the global watchdog that oversees banks and financial networks as a representative of 20 major economies, stated that existing regulations on cryptocurrencies like bitcoin will be held and no additional restriction or regulation shall be issued.

FSB’s official report referencing FSB Chair and Governor of the Bank of England Mark Carney’s letter read:

“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time. The market continues to evolve rapidly, however, and this initial assessment could change if crypto-assets were to become significantly more widely used or interconnected with the core of the regulated financial system.”

Previously, up until this week, several analysts noted that the upcoming G20 meetup has contributed to the decline in the value of cryptocurrencies, as investors anticipated the G20 financial watchdog FSB to crackdown on cryptocurrencies and issue stricter regulations. Investors expected major economies to come together to regulate the global cryptocurrency market with harsher policies.

However, governments have decided to accommodate existing regulations on the global cryptocurrency market, which are already strict in regions like the US and Japan, and follow the regulatory roadmap of leading cryptocurrency markets to facilitate the rapidly growing demand for the emerging asset class.

It is highly unlikely that the G20 meetup was the sole factor behind the recent price surge of bitcoin and the entire cryptocurrency market. But, the cryptocurrency market was in need of an optimistic and positive development to secure an upward trend again, after being in a slump for over a week.

Consequently, the valuation of the cryptocurrency market recovered beyond $310 billion, subsequent to falling below $280 billion, and is eyeing to initiate a short-term rally.

In previous reports, CCN emphasized that the January correction would require several months to recover because many investors were hurt by the decline in the price of cryptocurrencies. In 2017, the cryptocurrency market was considered the path for short-term profits. In early 2018, investors have stated to view the market differently, and speculators or weak hands have left the market.

2018 saw significantly developments in bitcoin, Ethereum, and other major cryptocurrencies along with emerging blockchain technologies. Yet, the price has not represented the magnitude of developments that have happened in the space, most likely because speculators and weak hands were not interested in the technology, but rather in short-term profits.

Short-Term

In the short-term, given the continuous increase in the dominance index of bitcoin, it is highly likely that bitcoin will maintain its dominance over the market in a volatile period like this. Bitcoin’s dominance index is already at 44 percent, and has been increasing since February, as more investors have started to eye bitcoin as a safe investment over other cryptocurrencies.

CRYPTOCURRENCY : From Centralization to Decentralization

CRYPTOCURRENCY

From Centralization to Decentralization

The major drawback of the traditional fiat currency payment system is high transaction fees with a long settlement period, which has led people to alternative currencies that allow for shorter peer-to-peer (P2P) processing time without intermediaries, resulting in a thriving market for digital currencies that have lower settlement risk. Prior to the creation of cryptocurrencies, there were many other types of digital currencies. The most common example is a digital currency created by an institution and transacted on a platform. Such currencies can be loyalty points created by companies or digital coins created by Internet-based platforms. The institutions or legal entities control the creation, transaction, bookkeeping, and verification of the digital currencies. In other words, these platform-based digital currencies are centralized. A notable example is the loyalty points of e-commerce companies like Rakuten and iHerb, which function like cash on the platform. Q-coin, introduced by the Chinese social platform Tencent, can be bought using the Renminbi and can be used to buy services at Tencent. World of Warcraft Gold is a game token that can only be earned through completing in-game activities and cannot be bought or exchanged into fiat currencies .

These centralized digital currencies are transacted within a specific platform and are designed to support the business of the issuing institutions. It is difficult to use them as a substitute for fiat money because these centralized digital currencies are not legal tender. Therefore, decentralized digital currencies seem a potential replacement for fiat money as no central authority is needed to verify the transactions. However, there are still many obstacles to overcome without the use of an intermediary or central authority. One main obstacle is the double-spending problem: It is possible to spend the same digital coin more than once. This problem has remained unsolved for a long time, discouraging the prevalence of decentralized coins. To ensure every transaction is accurately reflected in the account balance for digital currencies to prevent double spending, there is a need for a trusted ledger without a central authority.

The first cryptocurrency, eCash, was a centralized system owned by DigiCash, Inc. and later eCash Technologies. Although it was phased out in the late 1990s, the cryptographic protocols it employed avoided double spending. A blind signature was used to protect the privacy of users and served as a good inspiration for subsequent development. Shortly after the discovery of cryptography protocols, digital gold currency became popular, among which the most used was e-Gold. It was the first successful online micropayment system and led to many innovations, making transactions more accessible and more secure. However, the failure to address compliance issues finally resulted in its liquidation in 2008, despite an annual transaction volume of over US$2 billion .

The global financial crisis in 2008, coupled with a lack of confidence in the financial system, provoked considerable interest in cryptocurrency. A ground-breaking white paper by Satoshi Nakamoto was circulated online in 2008. In the paper, this pseudonymous person, or persons, introduced a digital currency that is now widely known as bitcoin. Bitcoin uses blockchain as the public ledger for all transactions and a scheme called PoW to avoid the need for a trusted authority or central server to timestamp transactions . Because blockchain is an open and distributed ledger that records all transactions in a verifiable and permanent way, it solves the double-spending problem.

Bitcoin and “bitcoin”

The cryptocurrency, denoted by bitcoin or BTC, can be accepted as a payment for goods and services or bought either from other people or directly from exchanges/vending machines. These bitcoins can be transacted via software, apps, or various online platforms that provide wallets. Another way to obtain bitcoin is through mining.

The Bitcoin system runs on a P2P network, and transactions happen directly between users with no intermediary. Bitcoin decentralizes the responsibilities of verifying the validity of transactions to the entire network. Transactions are recorded in the public ledger called blockchain and are verified by network nodes, which could be any individual using a computer system with Bitcoin software installed. Once users have made a transfer, the transaction will be broadcast between users and confirmed by the network. Upon verification, it will be recorded in the blockchain, and then the transfer is completed. This record-keeping process is referred to as mining, and people offering the computing power to do so are called miners. Bitcoins are created as an incentive for solving the cryptography puzzle using transaction data; thus, successful miners are rewarded with the newly created bitcoins, on top of transaction fees.

Each transaction contains inputs and outputs. An input has the reference to the output from the previous transaction, and the output of a transaction holds the receiving address and the corresponding amount . In general, in a transaction, a certain number of bitcoins is sent from a bitcoin wallet to a specific address, if there is a sufficient bitcoin balance in the wallet from previous transactions. Transactions are not encrypted and can be viewed in the blockchain with corresponding bitcoin addresses, but the identity of the sender or receiver remains anonymous. Typically, bitcoin wallets have a private key or seed that is used to sign transactions. This secured piece of data provides a mathematical proof that the coins in the transaction come from the owner of the wallet. With the private key and the signature, the account can only be accessed by the owner, and transactions cannot be altered by someone else.

Mining is also the process of adding newly verified transaction records to Bitcoin’s public ledger. The records are grouped and stored in blocks. Each block contains a timestamp and a link to a previous block so that the blocks are chained together, thus the name blockchain. The blocks are mined in sequence, and once recorded, the data cannot be altered retroactively. A complete record of transactions can be found on the main chain. Each block on the chain is linked to the previous one and can be traced all the way back to the very first block, which is called the genesis block. However, there are also blocks that are not part of the main chain, called detached or orphanedblocks. They can occur when more than one miner produces blocks at similar times, or they can be caused by attackers’ attempt to reverse transactions. When separate blocks are validated concurrently, the algorithm will help maintain the main chain by selecting the block with the highest value.

There are several systems by which miners can earn rewards through the mining process. Bitcoin uses the Hashcash PoW system and the SHA-256 hashing algorithm. Under the PoW system, rewards are given according to the number of blocks that are mined successfully. Therefore, mining is quite competitive; the miner who first solves a given puzzle or gets the highest value will take all the newly created bitcoins, and the other miners will receive nothing. Rewards thus encourage miners to take an active part in mining data blocks. In addition, mining usually involves a large amount of computation and can be quite energy consuming.

Another commonly seen system is proof-of-stake (PoS). Unlike PoW, no additional work is required under the PoS scheme because investors are rewarded based on the number of coins they hold. For example, a user holding 1% of the currency has a probability of mining 1% of that currency’s PoS blocks . In general, this system does not require a large amount of work for the computation. It provides for higher currency security and is usually used in combination with other systems, as in the case of Peercoin, the first cryptocurrency launched using PoS.

Because the supply of bitcoins is limited to 21 million, the bitcoins awarded to a miner for successfully adding a block will be halved every 210,000 blocks (approximately every four years), according to the Bitcoin protocol. When Bitcoin was first run in 2009, the reward amounted to 50 newly created bitcoins per block added to the blockchain, but the reward has been halved twice to 12.5 as of July 9, 2016. The supply of bitcoins on the network is 16.907 million as of March 6, 2018, with a total circulating supply market capitalization of US$ 159.1 billion.3

Features of Bitcoin

Decentralized. Similar to conventional currencies that are traded digitally, bitcoin can also be used to buy things electronically. Unlike any fiat money or platform-based digital currencies, however, bitcoin is decentralized. In other words, there is no single group or institution that controls the Bitcoin network. Its supply is governed by an algorithm, and anyone can have access to it via the Internet.

Flexible. Bitcoin wallets or addresses can be easily set up online without any fees or regulations. Furthermore, transactions are not location specific, so bitcoins can be transferred among different countries seamlessly.

Transparent. Every transaction will be broadcast to the entire network. Mining nodes or miners will validate the transactions, record them in the block they are creating, and broadcast the completed block to other nodes. Records of all transactions are stored in the blockchain, which is open and distributed, so every miner has a copy and can verify them.

Fast. Transactions are broadcast within a few seconds, and it takes about 10 minutes for the transaction to be verified by miners. Thus, one can transfer bitcoins anywhere in the world, and the transactions will usually be completed minutes later.

Low transaction fees. No transaction fee is required to make a transfer historically, but the owner can opt to pay extra to facilitate a faster transaction. Currently, low priority for mining transactions (a function of input age and size) is mostly used as an indicator for spam transactions, and almost all miners expect every transaction to include a fee. Miners historically have been incentivized mainly by newly created coins, but that is changing. As the number of bitcoins in circulation nears its limit, transaction fees will eventually be the incentive for miners to carry out the costly verification process.

Altcoin Market

Bitcoin is open source and the source code is available on GitHub.4 Therefore, coders around the world have been enlightened by the invention of Bitcoin and have created hundreds of cryptocurrencies, which are referred to as alternative cryptocurrencies, or altcoins. Bitcoin is not perfect. Every new purpose or pain point is an incentive to invent new coins. Coins are invented to address specific issues such as high computation cost of PoW, to increase the number of transactions per second, to increase the block size, to ensure that the ledger is not as transparent, to accommodate more efficient use of smart contracts, and so on. Moreover, to pay for development and launch expenses, developers can raise funds for the project even before the cryptocurrency is launched. In particular, initial coin offerings (ICOs), initial crypto-token offerings, and initial token sales are similar approaches to raising funding to develop new crypto-tokens and cryptocurrencies. ICOs allow people to invest in a project by buying part of its cryptocurrency tokens or prelaunched ERC20-compliant tokens residing on the Ethereum network in advance, typically based on a white paper or other documents on the project for investors to evaluate.

As of October 6, 2017, 869 cryptocurrencies and 269 crypto-tokens were launched and traded,5with a total market capitalization of over US$148.4 billion. Different from fiat money, cryptocurrencies have a circulating supply, total supply, and maximum supply. Maximum supply refers to the best approximation of the maximum amount of coins that will ever be created in the lifetime of the cryptocurrency, and total supply is the total number of coins existing at the present moment. However, some coins will have been burned, locked, or reserved or cannot be traded on the public market, so the circulating supply is computed by deducting those coins from the total supply. When determining the market capitalization, circulating supply is used because it denotes the amount of coins circulating in the market and accessible to the public.

Based on cryptocurrency market value as of June 27, 2017, Bitcoin dominated the market with more than half of the total market value and the highest price. Ethereum, Ripple, and Litecoin also have large market capitalizations of more than US$1 billion. In addition, the supply of different coins varies substantially due to the unique characteristics of each coin, and some coins are not mined, suggesting a fixed amount of supply. The price of the coins ranges from US$0.002 to well over US$1,000.

In general, some altcoins are very similar to bitcoins, whereas others are created by adopting very different methods or ideas. Market capitalization, different categories of altcoins, .

Appcoins, such as MaidSafeCoin, function like digital shares in a decentralized autonomous organization and are sold in token sales for a portion of future profits. Most altcoins are direct copies of Bitcoin, with some minor changes in parameters such as block-generating time and the maximum limit of coin supply. However, many altcoins have adopted other innovative changes. Among the widely accepted altcoins, Ethereum is the one with the most innovative ideas and widely followed besides Bitcoin. The value token of the Ethereum blockchain is called ether and denoted by XRP. It provides a decentralized Turing-complete virtual machine that features smart contract functionality, as do four other altcoins that have launched based on Ethereum: Ethereum Classic, Golem, Augur, and Gnosis. NEM falls under the third category in  (i.e., coins coded in a different programing language): It is operated using JAVA programming, as is Nxt. Stellar Lumens and Factom are excluded because they are based on Ripple and Bitcoin protocols, respectively.

To conclude, many cryptocurrencies other than bitcoin are traded actively with a wide assortment of features for investors to invest in. The complet coins list with over 1300 cryptocurrency , tokens and altcoins on https://cryptocoinhubs.com

The cryptocurrency investing course

Toward the start of the mid year I had a major issue.

I simply acknowledged another occupation and between the work hours, the drive, suppers, and an exercise I was left with at most a hour of available time a day amid the work week.

This was a noteworthy issue since I’m a learning someone who is addicted. I should ace something outside of work or I begin to stagnate. However, a hour daily didn’t appear as though it would have been sufficient to go anyplace regarding any matter.

So I asked myself “How would i be able to best use a hour daily?”

I did what I generally do when looked with an intense problem, I was inclining towards learning Spanish, yet then I had three companions message me about cryptocurrency. Every one of them said this was something I expected to look into. After a half hour of perusing about cryptocurrency  I knew I had discovered my task for the late spring.

Making a plunge

At to begin with, the perusing was energizing. Digital money, a transformation in electronic cash exchange that could without much of a stretch snowball into something as world-changing as the web.

I altogether delighted in perusing the distinctive strategies for success every digital money had. Every one had their own procedure to secure their place in the market. I thought it was captivating to see a cash have a strategy for success.

My first obstacle, the blockchain

I hit my first wall when learning about the blockchain. The blockchain is one of the most important technologies underlying how cryptocurrencies work. Unfortunately, I found learning about the blockchain boring and confusing. It was the last thing I wanted to be reading about after a tough day at work.

I started to lose interest in cryptocurrency. My once productive hour started to get whittled down by Facebook, emails and other distractions. I had to do something to get myself back on track, but how could I make the blockchain interesting?

I decided I would make some stakes.

I found a reputable online cryptocurrency exchange, typed in my credit card number and bought 100 dollars worth of Litecoin (a cryptocurrency).

At the time I didn’t even know how to transfer the cryptocurrency back into U.S. dollars. For all I knew I just sent my money into the oblivion.

But, now I was an investor.

I felt more connected to the subject, it was the breath of fresh air I needed. The next day I sat down and read as feverishly as an ivy league researcher.

I decided to make a class out of it

I was impressed by how much of an impact investing had on my motivation so I decided to take it a step further. I decided to turn this little adventure of mine into a class.

I refined the subject from cryptocurrency to cryptocurrency investing and decided the cost of the class would be 5000 dollars.

I would throw 5000 dollars into the cryptocurrency market assuming I would lose it all. I figured the knowledge I would gain from learning about investing and cryptocurrency would be worth much more than the 5000 dollar cost.

Why 5000 dollars?

  1. It was around the cost of a class on investing at a top university
  2. It was 90% of the savings I would make over the summer. I wanted it to be a large enough amount that I would have an emotional connection to the money. I wanted to see how I would react when I started losing it.

*I don’t recommend anyone else invest such a large portion of their savings.

What did my course look like:

  1. Read and take notes on a classic investing book. [ June 1st to June 14th]
  2. Obtain a high-level understanding of what cryptocurrencies are and what their future applications might be [June 15th to June 26th]
  3. Pick up to three cryptocurrencies to invest in [ June 27th to July 11th]
  4. Develop a buying and selling strategy [July 12th to July 13th]
  5. Invest and see what happens [July 14th — Sept. 1st]

1) Read and take notes on a classic investing book

I only had enough time in my course for one book on traditional investing so I had to be very picky about it.

After asking mentors, friends, and the internet, the most commonly cited book was “The Intelligent Investor” by Benjamin Graham. I decided this would be the book for my course.

While parts of the book were a little dated (it came out in 1949) I found the core principals helpful.

  1. Do your research into a company and only invest when you are confident they have a high chance of long-term success.
  2. Don’t let the market scare you, rely on the research you did.
  3. Stick to a formula, don’t arbitrarily buy and sell.

2) Obtain an overview of what cryptocurrencies are and what their future applications might be

I used a combination of podcasts, YouTube videos, and websites to educate myself about the cryptocurrency space. I cheated a little bit on my hour rule and listened to the podcasts during my commute.

My main takeaways were that cryptocurrencies are a cheaper, more secure and more versatile way to digitally transfer money.

There is a lot more to be said on this subject that I’ll write about in a separate piece. I’ve included all the resources I used at the end of this article in case anyone wants to jump into the subject.

3) Research and pick up to three cryptocurrencies to invest in

I didn’t want to invest in more than three cryptocurrencies because I felt that even three was spreading my focus too thin.

As per Benjamin Graham’s advice I wanted to have a deep understanding of each cryptocurrency(or company) I was investing in. This would take a lot of time and time was something I didn’t have much of.

After doing light research into ten different cryptocurrencies I decided I liked Bitcoin, Ethereum, and Ripple. So I started to dig deeper into these three currencies. I looked at:

  • How strong is their team
  • What is their long-term strategy
  • Who is backing them

I was happy with what I found and confident that these three currencies had a high chance of long-term success. So now all I had to do was figure out a plan of action.

4) Develop a buying and selling strategy

I wanted to keep my buying and selling strategy simple so I gave myself three rules:

  1. Don’t buy when it is at an all-time high
  2. Don’t sell for a loss, meaning I would either earn a profit or lose everything if the currency disappeared
  3. Sell when my investment went up by 35%

I picked the 35% target because it seemed unreachable for a two-month investment.

5) Invest and see what happens

I had my cryptocurrencies of choice and I had my buying and selling strategy, now all that was left was to invest.

In mid-July, I started to put my money into the market.

I invested 2000 dollars into Ethereum on July 14th at ~ $203/ether

I invested 2000 dollars into Ripple on July 14th at ~$0.19/ripple

I invested 1000 dollars into Bitcoin on July 14th at ~$2300/bitcoin

Then the real life portion of the course started

The first few moments after the money left my bank account were good. I felt like a success for committing to a big plan, but then panic set in.

I always thought the mental side of investing was overplayed. I’m a logical, easy going individual, I didn’t think fluctuations in market price would affect me. Plus I had even planned to lose all the money I invested. Losing or earning money wasn’t going to corrupt me.

Well, I was wrong.

My life exploded

After my money went into the market, the hour a day I allotted for my cryptocurrency investing course became insufficient. My life quickly became ruled by my investments.

I developed an awful habit of checking the price charts every ten minutes. If the investments were doing well I’d get a hit of dopamine and feel great. If my investments were doing bad I would freak out and start pouring over market analysis after market analysis.

I forgot everything I learned in “The Intelligent Investor”. I let the market play with my emotions.

I reached a breaking point at the end of July. After staying up late for the third night in a row reading about cryptocurrency news and price predictions, I slept through my morning alarm. I wound up waking up late and missing an important meeting at work.

After a myriad of apologies to the vice presidents of the company, I was ready to end my course.

I told myself “This isn’t worth my job”

How I got my life back on track

I sat with that thought the whole day. Then I looked at the problem as if I was really taking a university class.

If I got a bad grade in a class would I drop it? No! I would figure out why I got the bad grade and then develop a strategy so it didn’t happen again.

I decided I could do it, it was OK that I failed, failure is how you learn.

I reminded myself why I was taking the course, to learn, not to make money. I knew that I was going to need more than willpower to stop myself from looking at the price charts and market analysis thought. So I found two tools that I would depend on.

Tool number one: Blockfolio

  • Blockfolio is a phone app that lets you set price targets for your cryptocurrency investments. I set it so I would only get alerted if my investments ever hit their targets. This way I had no good reason to convince myself that I needed to check the price charts.

Tool number two: A bet with my friend

  • I gave a friend 50 dollars and told him if I read one more market analysis to burn the money in front of my face. It was the honor system so I could always just lie to him about it, but I knew I would feel like a scumbag if I did and no one likes feeling like a scumbag.

The week following my break down was tough. I wanted to check how my investments were doing constantly. I kept reassuring myself that Blockfolio would notify me if anything major happened.

One day I even sat with “Ethereum price analysis” typed into google for 5 minutes. My mouse sat there hovering over the search button, but I wouldn’t let myself click. I didn’t want to to have 50 dollars burned in front of my face.

After the initial week, it got much easier and then near the end of August, my phone started buzzing off the table.

So how did my investments fair?

On August 6th, while I was furiously typing away at a report my phone came to life.

It said:

“Bitcoin is above 3105”

$3105 was my 35% price target! I didn’t know what to do, I told myself I would sell when it hit 35% but I couldn’t bring my self to sell. I was so high on the fact that I hit what I thought was an impossible target that I thought I could do anything. So I said while if it hit 35%, 45% shouldn’t be much of a stretch.

Then on August 9th my phone buzzed again

“ Ethereum is above 274”

and again

“Bitcoin is above 3,335”

$3,335! An all-time high for bitcoin! (at least back then it was), the confidence I had three days earlier started to melt away. Would the price keep going up, or would the whole market collapse. Did I invest in a scam and was the carpet about to be pulled out from underneath me?

I was letting the market control my emotions again, so I took a long walk and thought.

I had confidence that all three cryptocurrencies I picked had a future, but I only had three weeks left of my course. How could I best play these last three weeks?

I looked at my three investments and saw Bitcoin and Ethereum jumping up but Ripple staying relatively calm.

I reasoned that the jump in Bitcoin and Ethereum would bring new investors to the market. These new investors might be interested in ripple just like I was. I also knew other investors had to be afraid that the bitcoin price might crash because of its quick rise.

I thought other investors might want to hedge their bets against a bitcoin crash by moving money out of bitcoin and into other currencies. Ripple had a high chance of being one of those other currencies.

So I put all my investments and earnings into ripple.

On August 10, I invested all of my Bitcoin and Ethereum ($4150 worth) into ripple at ~0.18 dollars/ripple

So now I had $6150 invested in ripple. I set an alert on Blockfolio for 0.24 dollars/ripple ( 35% increase) and did my best to forgot about the whole thing.

Unfortunately, news kept popping up about Bitcoin reaching all new heights. It made me feel like an idiot for not keeping my money in Bitcoin. Why did I switch it all over to ripple I should have put it in Bitcoin.

Frustrated I called a close friend and mentor to tell him about my stupid investment decisions. After I told him what a moron I was, he gave me the best piece of investment advice I’ve ever received.

He said “ Joe, this is one of the biggest problems with investing, everybody is trying to buy at the feet and sell at the head. The thing is, you never know when you are at either. Instead, aim for buying at the knees and selling at the shoulders. Don’t beat yourself up if it goes higher, be happy with what you made. If you get greedy and try to go for the head those investments will ruin your life.”

I stopped stressing about missing out on bitcoins rise in price and instead was happy with how well I was doing at this investment course. I wasn’t calling every shot perfectly but so far I had turned 3000 into 4150 in less than a month, I should be proud of that.

Then on August 24th while I was in a meeting my phone went off

“Ripple is above 0.24”

By the time I got out of the meeting the price had already hit 0.27. Part of me wanted to hold on for longer, but I remembered my friend’s advice, aim for the shoulders, not the head. I sold it all right then and there.

My initial 2000 dollar investment grew to 2,842 dollars and my 4150 investment had grown to 6,225.

I still had 7 days left in my investment course but under the mantra of “don’t be greedy,” I decided to keep it out of the market. I spent the last week reflecting on the experience.

In total my 5000 investment turned into 9,064 dollars. Not too shabby for a month and a half. At the same time, people are currently seeing 1000% plus returns in this market so I shouldn’t get too full of myself. I still have a long way to go.


Key Takeaways

1) If spent right, a focused hour a day can compound to something huge

The key to making a focused hour add up to something major is to first figure out your goal.

  • My goal was to learn about cryptocurrency investing.

Then you have to break down your goal into measurable, time-sensitive chunks.

  • I did this by making my course, i.e read and take notes on “The Intelligent Investor” by June 14th

Finally, you have to set some metric to measure your overall success. How will you know when you accomplished your goal?

  • I did this by adding in the 35% selling target

2) Having trouble sticking to your plan, set stakes

If you find your motivation waning, give yourself some real-life consequences for not achieving your goal. If you do this, I guarantee you’ll be more motivated to accomplish your goal.

  • I did this three times throughout the summer. The first time was when I invested 100 dollars in Litecoin. The second was when I invested 5000 dollars into Bitcoin, Ethereum, and Ripple. Finally, the third time was when I gave my friend 50 dollars to burn in front of my face if I looked at one more market analysis. Each of these gave me real consequences for not continuing towards my goal.

3) Losing or earning money on an investment will mess with your head, be prepared for it

This was the biggest revelation for me. I didn’t think investing was going to take over my life as much as it did. I severely underestimated how much it was going to play with my emotions.

If you invest, prepare some mechanisms so that the status of your investments isn’t the status of your life.

4) Don’t trust the market analysis, trust your research

When making an investment don’t let the market rule your life. Do research on whatever you are investing in and trust in your research, not the market analysis.

5) You will never trade at the best moment, but that doesn’t mean you can’t make money

You will never time all of the peaks and valleys in the market correctly. Stick to your buying strategy and don’t worry about what could have been. Focus on what you should do next.

7 Investors Who Put Millions Into Cryptocurrency

In case you’re searching for counsel about crypocurrencies , the most vital voices to take after originate from the individuals who have put their cash where their mouth is. Financial specialists who have emptied extensive aggregates into bitcoin, ethereum  , monero and other blockchain-sponsored monetary forms aren’t simply guiding other individuals. They have genuine skin in the amusement. When they tell individuals that they’re hanging on and not offering, you can be sure that they truly do have confidence in advanced monetary standards.

Here are seven individuals with real digital money ventures who are upbeat to tell other individuals what they’re doing.

Marc van der Chijs

Marc van der Chijs knows a developing open door when he sees one. He used to be situated in China where his ventures included tudou.com, a Chinese YouTube. Since moving to Canada, he’s pulled out all the stops into digital currency. He’s currently an executive of FirstCoin.com, a venture bank for token and coin offerings. Take after his tweets for a hopeful yet practical perspective of digital money.

Ari Paul

Ari Paul is the CIO and fellow benefactor of BlockTower Capital, a specific digital currency speculation organization. His experience is in venture administration, and he likewise writes about crypto contributing at the TheCryptocurrencyInvestor.com. It’s a site that ought to be on each digital money holder’s perusing list.

Michael Novogratz

Michael Novogratz has surely put his cash where his mouth is. In December 2017, as the dollar cost of bitcoin was dropping essentially, he tweeted that 30 percent of his total assets was in crypto resources. In any case, he likewise noticed that his cryptographic money venture firm Galaxy Digital had put a crypto fence investments on hold. He stays bullish on cryptographic forms of money yet watch his activities to track here and now developments.

The Winklevoss Twins

Tyler and Cameron Winklevoss may be best known for blaming Mark Zuckerberg for taking their thought for an informal organization, yet they now run Gemini, a digital money exchanging stage. In April 2013, when bitcoin was worth $120, they purchased $11 million worth of coins, around 1 percent of the considerable number of coins available for use at the time. That buy has since made them among the primary bitcoin extremely rich people.

Barry Silbert

In December 2014, the US Marshall’s office sold off 50,000 bitcoins that it had seized from Silk Road, an online commercial center for the most part utilized for offering unlawful merchandise. Everything except 2,000 of those bitcoins were purchased by Barry Silbert, the originator and CEO of Digital Currency Group, a cryptographic money venture firm. That early buy at $350 per coin transformed $16.8 million into more than $670 million inside three years. He’s as yet giving digital currency venture counsel.

Tim Draper

Of those 50,000 bitcoins, the staying 2,000 went to Tim Draper. A customary financial speculator who runs his own VC firm, Draper has likewise turned into an evangelist for all things crypto. Like other bitcoin financial specialists, he stays idealistic notwithstanding when the market falls. Read his tweets to discover why.

Juthica Chou

Juthica Chou is the president and fellow benefactor of LedgerX. Her experience is in customary subsidiaries exchanging yet LedgerX is the primary stage for purchasing bitcoin choices that is governmentally controlled. It gives an approach to institutional financial specialists to partake in the development of digital money. She’s not on Twitter, but rather the blog at LedgerX gives an awesome understanding into the long haul prospects of cryptographic money.

The world of cryptocurrency—and how it could make you rich

Need to get sufficiently rich to fill baths with dollar charges only for kicks? Could Bitcoin get that going? We should make a plunge.

At the point when Bitcoin appeared in 2009, its initial adopters purchased up a lot of the advanced cash for pennies. From that point forward, Bitcoin’s esteem has expanded significantly, transforming a few of those underlying financial specialists into tycoons. Be that as it may, the financial matters encompassing Bitcoin and different types of computerized money like Ethereum, Ripple, Litecoin, and most as of late, Bitcoin Cash, all named “digital currency,” can be eccentric and entangled.

One immense advantage to utilizing cryptographic money is that it can’t be stolen or fake. At the point when advanced monetary forms are traded, they’re changed over into indecipherable code that makes them secure as well as influences the sender and beneficiary to seem unknown. Not at all like ordinary cash, advanced monetary standards are not government managed. No high bank expenses, no vacillations in view of government directions, and no degenerate bank shenanigans. Sounds entirely decent, isn’t that so?

Shockingly, with decentralization comes flimsiness, and digital currencies are known for being exceedingly unstable and flighty. Like most high-chance ventures, this leaves open door for achieving strange levels of riches (which means you can at long last clean out your nose in hundred dollar greenbacks).

For the normal individual to make progress in digital money commercial centers, he or she should get learning. That is the place the Beginner’s Guide to Cryptocurrency Investing comes in. It will give all of you the learning you’ll have to settle on savvy decisions and transform your physical money into a sizable advanced reserve.

Through the span of 27 addresses and 2.5 hours of substance, this program will show you techniques for putting resources into altcoins, how to augment your arrival, and how to change over those coins once more into genuine cash. You’ll find out about the different cryptographic forms of money accessible and which is ideal for you and you’ll plunge into the computerized cash group, gathering significant research and bits of knowledge en route. At long last, you’ll have the capacity to evaluate the genuine estimation of the whole market and choose where and when to make your turn.

Right now is an ideal opportunity to make your computerized fortune. Get the Beginner’s Guide to Cryptocurrency Investing for $15, a mind blowing diminishment from the standard $180 cost.