Crypto: The Key to Retiring 20 Years Early
The stock market’s been down these past couple of days, but the new year has basically been an extension of the run higher in U.S. equities.
But what should you think about the recent correction in cryptocurrencies?
Bitcoin, for example, is trading at around $10,000 this morning after peaking around $20,000 last month.
This market moves awfully fast. But let’s review what’s been happening in the crypto space so far this year…
- Bitcoin – down 17.8% in January
- Litecoin – down 37.3% in January
- Ripple – down 20.4% in January
What happened?
This selloff was accelerated by an announcement from the South Korean government related to regulation in the cryptocurrency space.
The regulations announced include:
- A ban on minors and foreigners opening a new account.
- Real name verification – All cryptocurrency exchange account holders will have to verify their name and will only be allowed to trade under a name that matches the name on their bank account exactly.
- Increased pressure on banks to report “suspicious” cryptocurrency related transactions.
- A ban on new crypto offerings, known as ICO’s.
Where does the crypto market go from here?
This shift from a completely unregulated marketplace to one that more resembles traditional financial markets has caught a lot of investors off guard, but the reaction in markets is very much overdone.
When prices begin to fall, it shakes a lot of newcomers out of the tree, so you can see a lot of action like this.
Use that to your advantage!
In the short term, headlines may continue to contribute to crypto market volatility. But the long term reasons for holding bitcoin and other cryptos are as valid as ever.
I see this recent sell off as a golden opportunity to enter the crypto market at a deep discount.
Every significant pullback over the past year has seen buyers aggressively enter the market. That means that you should consider cryptos as being “on sale” right now. Major cryptocurrencies are trading at a serious discount relative to the 2018 open.
Bitcoin is holding around $10,000, and litecoin appears to be finding strong support. This means that they might not be at these levels for much longer.
Ripple may continue to see heightened volatility, however, as it has not yet established a strong base of support. You should look for support to be established before entering Ripple.
Just keep in mind that average volatility in these markets is much higher than equities or indices, so crypto investors must be prepared for large intraday moves, even on the way up. They should be prepared for further volatility, as headline risk is still very much present. But that’s not a reason to stay away.
No, you won’t see this type of volatility in blue chip stocks like a Coca-Cola or Boeing. But you won’t make fortunes in them, either.
Having said that, with crypto markets in their early stages it is extremely easy for inexperienced investors to get involved in a crypto offering that isn’t innovative, unique or offering any value proposition to speak of. With new offerings daily it’s important to cut through the noise to find the most intriguing offerings.
And I have the ideal way to “cut through the noise.”
The “Crypto Cloud” is a technical indicator I use in all aspects of my investing. It is easily the most powerful trend indicator I have come across in my career.
It might look complicated but it’s actually a very simple chart to read. The shaded area on the chart shows us the “line in the sand” between bullish and bearish price territory. A break out from this shaded area shows a significant change in trend.
Inside of the CryptoCloud, the market remains in technically “neutral” territory, giving no major reason for concern. See the chart below:
Now, calling the recent pullback in bitcoin and other crypto markets the best opportunity of the year this early on might seem like a bold prediction. But historical trends and momentum support this idea very strongly.
I have been a full time trader and investor for almost 2 decades. And I have never seen an opportunity like this.
I’m not saying sell your house and car to finance your cryptocurrency. But if you do not put 1-5% of your net worth in cryptocurrency, do not come looking for me to blame in 5 years. Let’s face it, many of the hopes you have for your life aren’t possible without one thing:
MONEY!
From things we enjoy, spending more leisure time with our loved ones, to trips and vacations around the world, they all take money.
And since 2009 there has been a new way to help achieve your financial goals: bitcoin and cryptocurrencies. It didn’t take long to do, either. What has cryptocurrency done for peoples’ lives so far?
Consider this:
- It has generated vast amounts of wealth and made more people millionaires than just about any other opportunity in the 21st century.
- It offers anyone willing to learn their potential of economic freedom.
- It has given people who want to be financially successful an innovative and interesting platform.
There are success stories all the time. Look at these three people that have proved it:
- Erik F. dropped out of high school and bet his parents he could be a millionaire by the time he was 18. He purchased Bitcoin at $12 a coin in 2011, and he did accomplish his goal!
- A private man who goes by “Mr. Smith” graduated college as an engineer, invested in Bitcoin, and today he travels the world with the $25 million he made in the market.
- In San Francisco there is a home known as the “Crypto Castle” where young millionaires all live life to the fullest and invest in the currencies that made them rich.
The stories of lives changed for the better from cryptocurrency investing are endless. Why can’t you be the next one?
From what I hope to teach you, you will be able to learn, master, and invest properly in less than 10 hours.
I created CryptoShark Traderto show everyone, from all backgrounds, how to use cryptocurrency to retire 20 years early.
Retiring early means that you will be able to enjoy all those things you love in life more: family, friends, travel, and hobbies.
No person was ever on his or her deathbed, saying “I wish I was in my cubicle for another day.”
And in case you’re thinking, “this is a young person’s game,” guess again. If you’re fifty or older, you are capable of learning what it takes.
Although bitcoin’s still considered the “King of Cryptocurrency,” many new cryptocurrencies are rising every single day. This wave is just starting, and is not even close to ending.
Now, a lot of people compare the crypto space today to the dotcom boom of the late 90’s when anyone with a domain name and half of a business plan could get a massive valuation.
We all know how that ended. The point here is, there’s a lot of trash in the crypto space. Make sure you don’t buy any. Too many people invest in markets they might not understand. There are fortunes to be made in cryptos, but you have to know what you’re doing.
Happily, I’m here to the separate the real deals from the frauds. Seize the opportunity!
Regards,
Andrew Keene
for The Daily Reckoning
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