George Soros Does a 180 on Cryptocurrency Investment – Pledges To Buy

Everyone’s favorite billionaire investor George Soros to the rescue!  After repeatedly condemning cryptocurrency as being a worthless investment and not a proper store of value it looks like he’s publicly changed his position.

But can the man known for causing the Asian Financial Crisis of the 80s, European Refugee Crisis, Election Hacking and much more be trusted or will his involvement mean a pump and dump that leaves cryptocurrency reeling?

We can be sure there are many big whales and hedgefunds in the crypto market but George Soros could be a game changer, for better or worse.  George Soros has never paid for the crises he’s accused of causing which would clearly be illegal but what if there was a better way?  Cryptocurrency!  The cryptomarket is ripe for the picking because insider trading is not illegal, pumping and dumping is not illegal and essentially all of the dirty Wall Street tactics can be used without any concern, at least for now.  So it is no wonder to me that the cryptomarket is in turbulence as more and more big money flows in.  A hand full of elite, wealthy investors could make or tank the entire market and I think that’s what we’ve been seeing.

George Soros is coming whether we like it or not, it’s time to HODL and divest of 99% of the worthless ERC20 coins if they haven’t produced.

The Bitcoin “Bubble” May Pop But Rise Again

I know the news is in full panic mode and for partially good reason.  Not only has the market shrunk and fallen but it appears new investors are staying out.  The average investor in my opinion is still on the sidelines and they will be until things become more clear.

With that said I am HODLING and not panicking…….well except for ICOs based on Ethereum ERC20 Tokens like Finom, Tron, Bitclave, Bloom, all of who appear to have produced nothing so far.  In all fairness it takes time but my appetite for ICO and tokens is saturated.  I truly feel 99% are scams that will never produce anything and therefore the return will in the end be 0.  This is because those tokens are just an investment in what is often a bad idea or an idea that will never be executed or completed as advertised.   So for your tokens, I say it is time to panic and rightfully so.  That being said I am HODLING those too but wouldn’t hesitate to unload most of them should there be a good opportunity for return (unless I still believe in the project).

For cryptocurrencies that are usable and have real value I believe they will rise again just like the stock market regardless  of what happens.  There are a lot of remorseful people who sold their Bitcoins and Litecoins at very low levels when things weren’t looking up.  In all fairness in this new market it’s hard to be sure where things will end.

But I’m of the opinion that I will hold for years if necessary, the same discipline one should use for commodities in the stock market (unless an underlying valuation aspect has significantly or permanently changed).  From that perspective I think cryptocurrency is here, so there is demand, and it will continue to grow and be more popular.  The stock market has had far worse happen to it and recovered (however as a fan of Jim Rogers I do believe this next crash that Wall Street is due for may never recover or not for a long time).  Much like cryptocurrencies, we see the market on Wall Street can be artificially manipulated up or down.  I believe the same players are using these tactics in cryptocurrency, such as similar stock market scandals where the elite and wealthy trick people into selling short while they buy it all and sell high later on.

I am long on cryptocurrencies which involve and have a minimum bureaucracy that just get things done.  I’ve said it before but simple changes shouldn’t be debated or discussed, if a currency isn’t functioning properly then if the block size or time needs to be changed just do it!  Some things needn’t and shouldn’t be debated if they are necessary.  This is again where I disagree with hardforks and why they shouldn’t be possible.  If there is really an ideological split then the team who disagrees should start their own currency from scratch.

In reality though we just need teams around that know business, IT and security rather than expert marketers and sales people.  I think the industry will naturally head in that direction inevitably as a result of both regulation and genuine issues with the way things are done now.

For one, as a business it is still hard to integrate cryptocurrency and insecure (more on that in another article) but the revolution will come.  If the community does it, then the majority will benefit but if a government, bank or other large corporate entity does it, it will not benefit us.  So it’s time to check ourselves, pack up, roll up our sleeves and get to work!

Bitcoin, Ethereum, and Altcoin Crash – What You Need To Know

So essentially overnight Bitcoin lost 40% but at this point is still at this point at nearly $15000 and I believe will recover the $20K mark before the New Year (probably).  Some people have asked me what “FUD” is and blame it for the drop which stands for Fear, Uncertainty and Doubt.  I’m not buying that.  I also want to give a shoutout to Max Kessler who called a lot of things right about Bitcoin and predicted a sharp correction around the $20K mark but insists Bitcoin will keep running much higher.

If you look at the charts for the top 100 cryptocurrencies you will see an almost simultaneous drop in all of them.  Now if this just happened in the top 10 or a handful I would believe it is people taking profits randomly (nothing organized or not VERY large sellers).

Could Charlie Lee (creator or Litecoin/LTC) have triggered this? Yes I believe so and I don’t understand his reasoning for selling all of his position.  It’s no conflict to own your own coin and try to make it succeed.  To many acute investors they would have viewed this like a company about to bankrupt and the executives dump all of their stocks.  I certainly don’t think this was Charlie’s intention or concern at all though.

Look at the chart of the top 10 or even top 100 and they look eerily similar.  Massive selloffs with similar percentage losses of up to 30%.  The only good news or winner here is that Ripple (XRP) hardly lost anything and recovered faster than the others.

So am I worried about crypto or that there is a bubble? Yes and no, I think it has a number of years to run before the risk of a formed bubble bursting happens (and it will be massive bleeding when it does…).  But what triggered this current drop of all currencies simultaneously?

My theory is that billions of dollars of hedgefund money has come in, and in the last few weeks the currencies had significant appreciation and like some stock traders, these managers took massive profits which will look very great to the portfolio and their clients.

Now this is where it gets scary because if a small amount of people precipitated this event then it becomes easy for a small group of people to control, manipulate and play the market.

I’m not shaken from what happened, nor do I believe it was the “FUD”, I’m still long on crypto including Bitcoin but as always proceed with caution as we are heading into completely uncharted territories with massive volatility being the norm for now.  I will believe more in the FUD as Bitcoin gets higher though because those who have bought in at such high levels have a lot more to risk and worry about.

Trading Cryptocurrency Emotionally Is Good For Me and Bad For You!

With all the hype of cryptocurrency driving all of the coins it creates both opportunities and risks depending on where you’ve bought in and your emotional state.
Emotional buying is for example hearing Bitcoin has hit $6000 USD and then buying it worrying that it is your last chance. In reality buying into new highs doesn’t leave a lot of room for comfortable declines which is why I never buy new highs but patiently wait for a strong pullback. But we must always remember the famous proverbs of “Be Fearful When Others Are Greedy”, “Be Greedy When Others Are Fearful”, “Sharp Rises Are Often Followed By Sharp Corrections”, “What Goes Up Must Come Down” which depending on the time period in general means manage risk, do not trade on emotion, and be prepared that markets can turn either way without warning or in a sudden bearish or bullish trend. If all goes wrong just remember “Buy Low, Sell High” of course as simple as these terms are very few of us actually do or achieve such simple sayings as the end result is often more complex based on a lack of discipline or abundance of emotion.

I fully agree with the many parties that say cryptocurrency is extremely risk, volatile and does trade like the stock market with even less safety and regulation. Therefore my approach is to treat such trading as extremely high risk stock investment with the goal of limiting risk and exposure.

In the case of Bitcoin if you look the chart for the past few years it has been extremely volatile and has had numerous crashes. A lot of people made a lot of money by holding and believing in the long-term value, but just as many lost huge amounts by panicking and selling off at the bottom. At the end of the day the best of us cannot always predict that we know the top or bottom of a market. Instead it is important to look at the fundamentals. Bitcoin is still #1 by market cap today, unless it were specifically banned around the world or the entire network or blockchain itself was compromised there’s no reason to panic based on this kind of emotion. I echo a similar sentiment when people rush to the markets when Bitcoin is the news when things are flying high is when you have the most risk. Before some of you think I’m suggesting to be a contrarian on a fundamental market I’m just saying you shouldn’t fight the trend or the market but be sensible. If you’ve made your own research or belief that a currency is in a bullish upswing then wait for an opportunity such as the “sharp correction” that has been the trend with large rises in cryptocurrency.

Stick to your plan unless the fundamentals have changed so unless Bitcoin has been banned around the world or the blockchain has been compromised or some other fundamental value of Bitcoin has been eroded it doesn’t make sense to dump it on a sharp decline (well it’s good for me and other holders) but for yourself it would probably disastrous.

I am mainly quoting Bitcoin but whenever I watch the charts of the top currencies by market cap I see a very similar trend usually, that often all currencies will be diving or climbing at the same time as a generalization.

The above strategy is only for coins that you have reason or proof have real value and long-term viability. If you have invested in a new ICO and could realize a large profit shortly after I would sell a large portion of that position and continue to hold. In that way you’ve maximized your profit and limited your risk exposure.

I’m going to give you an example of when I bought into some Litecoin. I noticed a sharp decline that eventually hit 5% Monday morning just after midnight and keep watching it. Once the market hit -5% and climbed to -4.5% I bought without regret even though I observed later on the day the decline hit as high as about -8-10%. Obviously buying lower would have been better but in recent trends I’ve seen fast recoveries I was happy with the likelihood that Litecoin would recover my 4.5% discount and more in a few days and it has currently risen to +5.89%. Not a bad spread for less than 24 hours! I think the key is not to be greedy and try to plan what the purpose is.

In my case I am watching some of the top 20 coins in market cap and looking for the chance to trade some Litecoins as they go up and some of the others decline to maximize profit and minimize risk.

Going back to the point of the article is that try not to be emotional when buying or selling, but know that everyone’s actions create an opportunity on either side.

Good luck to all of my fellow traders and please share your thoughts and strategies in the comments!

Disclaimer I am by no means giving out financial or trading advice and am simply giving my opinion, experience and rational for my personal decisions.