As you all must know by now, I am a trader at heart, not an investor. It’s always been difficult for me to buy-and-hold, because I feel like I can see where corrections will take place, so why not sell if you know its coming?
But these last few days I am having a slight change of heart. There is so much money pouring into the cryptocoins, and there is no reason to believe that will stop soon. In fact, the amount of money pouring into there might just keep on increasing for years.
Case in point. Bitcoin. The last 2 times I saw a selloff was due, they both occurred, but were very weak corrections. That can only mean that there are a lot of buyers out there. Not like the old days when there was a small handful of crypto-traders. At that time, when a correction occurred there were no more buyers left – everyone was all in – and price plummeted.
So who are these new buyers? It doesn’t matter, but it seems likely that many of them have never heard of the altcoins. Last week they want to buy Bitcoin at $1800, but neglected Litecoin and his siblings at far cheaper prices. I don’t think that this ignorance will continue forever. One day in the not-distant future money will likely be pouring into the altcoins as well.
So it occurs to me that now the smart thing to do is just buy a ton of cheap coins, the ones that are moving, and sit on them. For example for every 10,000 XLM or XRP one buys, every 1 cent rise in price is worth $100. Is there anyone who doubts that the price of these coins will be more than $1 by the end of the