Two Things You MUST Know About Bitcoin & Crypto Right Now

by birtanpublished on September 26, 2020

Today let's talk about two very important points of consideration when it comes to Bitcoin and cryptocurrency investing especially as a lot of people are reading things now that Bitcoin has jumped up from out of nowhere four thousand dollars all the way up to seven

Thousand dollars what's going on everybody it's your boy crypto Bobby your favorite buffalo chicken wrap eaten whiskey-drinking average Joe in the crypto world hope you guys are having a great day great night wherever you were

Watching or listening in from and yes as I'm sure a lot of you have noticed Bitcoin has made a hell of a run up from the lows of 2018-2019 the sub four thousand dollar mark now all the way above seven thousand dollars and it's

Happened very quickly and the market has evolved in a very interesting way there's a lot of things that we can look at from the past to help us make better decisions in the future obviously the past is history is not always an

Accurate predictor of the future but there's some things that we can do to not be idiots about how the crypto market will eventually pan out and hopefully you can make some just better financial decisions based upon that as

Well so we're gonna hop into a lot of that and more now for those of you who are new to the channel by any chance first of all subscribe and hit the like button if you are but if you're new to the channel I used to have a beard or I

Had a bear market beard and I just want to give myself a very quick pat on the back for almost coming close to calling a Bitcoin bottom on March first when I shaved my face shaved the bear market beard who was aptly known as the bear

Market beard how to shave that bear market beard and that was on March 1st and if we pop over to trading view and take a look at what's happened since March first we have Bitcoin is up over 80% in the in

The range of 85 percent or so Bitcoin is up since shaving the bear market beard so you know forget your Elliot waves forget your Ichimoku clouds forget your RS eyes and your MACD all you need to know is that when I grow out a bear

Market beard sell the out of all your cryptocurrency when I shave it we're good to go so we're in the clear right now jokes aside here is what I think you should actually do and this

Was a fantastic tweet from Matt Odell at Matt underscore O'Dell OD e ll on Twitter who runs the Tales from the Crypt podcast with Marty bent and Matt tweeted this recently and this is something that I love because I have

Long been a fan and an advocate of dollar cost averaging and this is point number one and this is going to point number one Matt says this if you started buying $25 worth of Bitcoin every week at the literal top of the market in

December 15th of 2017 when Bitcoin was like $20,000 $19,000 you would be in profit as of this week it would have costed you one thousand eight hundred fifty dollars to buy $25 for the Bitcoin every single week from December 15th on

The current value of that as of the time of him posting this which was yesterday on May 11th the current value is actually 1980 dollars and this is a fantastic point because it does go to show the importance of dollar cost

Averaging even if you started buying Bitcoin at the absolute top of the market in December of 2017 if you did that on a weekly basis now you are very close to either very close to break-even or you are in profit which is incredible

To think about now shout out to Matt and Marty from Tales from the Crypt for also building stacking stats calm and they created a Bitcoin savings calculator and this is specifically for Bitcoin obviously but you can play around with

The numbers to see things of what happens if I save $20 every week in Bitcoin starting January 1st 2018 right now if you did that you'd actually be down only $8 or so but if you changed the date here do starting saving that in

2017 or let's say 20 yeah let's say 2017 maybe you heard about Bitcoin earlier than some people a little bit earlier than the past bubble if you did that you would actually own if you save $20 for the Bitcoin every single week you would

Own 0.77 Bitcoin it would have only costed you a little under $2,500 and you'd now have a value of savings close to $5,000 you essentially doubled your money just by say 20 dollars with a Bitcoin every week so

Why do i why do I say this first of all I would highly suggest you play around with this calculator some of it is let's say a little bit depressing if you want to go all the way back to you know 2012 2011 2013 even to see how much money you

Have if you had put away the Starbucks mocha latte for a pacino that you probably drink every other day and and put that in the Bitcoin obviously hindsight is 20/20 but you can always adjust things in the future but why do I

Bring this up right now well number one most people suck at trading most people are not great cryptocurrency traders and whether you're looking at Bitcoin or you're looking at anything else most people are not good at it and when

You think about cryptocurrency investing as a whole the tendency I think a lot of people have is they've look at Bitcoin and they say well it's already had his day in the Sun what is next or you know I already have my I already have my

Money and I want to put it in and they they get really really excited about things so why am i bringing this up right now why are we looking at stacking SATCOM why are we thinking about what would happen if you invested $20 a week

Into cryptocurrency or $20 a month whatever it might be whatever fits your budget your investment budget or your speculation budget your gambling budget whatever you want to call it it doesn't matter why am i bringing this up now

Well I think the tendency right now for a lot of people especially those that have been in the crypto markets for a little bit of time have been around and they saw you saw personally you saw a Bitcoin under $4,000 maybe you put a

Decent amount of money into Bitcoin then maybe you put a decent amount of money into other crypto currencies then maybe you thought wow this is under $4,000 it's gonna go lower it's gonna go – it's gonna go to 2,500 it's gonna go to 1,800

It's gonna go to a thousand whatever whatever it is you thought and you just held off and you didn't put any money into it you know what the easiest thing to do and probably the best thing to do is it's simply to dollar-cost average is

To come up with a concrete clip a concrete plan to dollar cost average on a weekly basis a bi-weekly basis a monthly basis whatever it might be whatever fits your budget your lifestyle whatever you can reasonably afford

Reasonably speculate on have is some type of insurance hedge whatever it might be that is typically the best way to go ahead and do it and especially as a lot of people now see Bitcoin running up and they're starting

To think oh oh oh no wait it's it's going up it's it's it's going up so quickly I didn't have a chance to deploy capital now I have to throw it all in as always not a financial advisor but I wouldn't think that throwing in a ton of

Money into Bitcoin after just ran 8090 whatever a hundred percent in the course of a few months is probably the best move what can you do instead to hedge your risk yet still get some exposure in a Bitcoin you can continue to dollar

Cost average or you can start a dollar cost averaging plan whether it's with coin based whether it's manually with square whether it is with Gemini whatever it might be if it's with a circle app figure out a way that you can

Stick to a schedule and invest what you are willing to lose into Bitcoin or into some other cryptocurrency that you're really passionate about whatever it might be and so that is point number one is in my mind the power of dollar cost

Averaging and also the importance of it because most people are not good traders most people are not going to outperform just holding Bitcoin some people will absolutely some people you know maybe you're capable of it maybe you're not

Maybe you also don't have the mental power the mental just kind of freedom of mind to go ahead and do that on a continual basis so put it on autopilot automate your Bitcoin investments automate your cryptocurrency investments

And you'll likely be in a very good position in the long run in my personal opinion now I was talking specifically in Madeleine and Marty Ben are both big Bitcoin guys and I was talking specifically about Bitcoin in this case

But it really does apply I think across the board to a number of different crypto assets or or alt coins or whatever you want to think about the one thing you are probably noticing right now and you're probably experiencing if

You hold alt coins is they are getting smoked by Bitcoin so this is the second point when it does come down to cryptocurrency investing is the cyclical nature and how things tend to work when it does come down to cryptocurrency

Market cycles because if we are seeing the start of a quote-unquote bull run here things have moved in a very specific way in the past and the liquidity structures and the way Bitcoin in the way the

Cryptocurrency markets are structured as a whole tend to enforce this type of mechanism and behavior into the future and if you're watching on YouTube right now might be tough if you want to tune in from the podcast onto YouTube you can

Certainly do that but if you are looking right now on YouTube you can see we're looking at the coin 360 dot-com color chart the red-green color chart unfortunately I'm red green colorblind but I could still see the damn I could

Still see the difference here and Bitcoin is one of the only crypto currencies in the green right now Bitcoin is up about 2% it's sitting over $7,000 meanwhile almost every other prominent alt coin is in the red fairly

Heavily you have things like etherium down 4% XRP down close to 5% yose down litecoin down Cardno down tezo's down B&B down maker down stellar down Tron down bsv down basically everything but bitcoin is down and actually Bitcoin

Caches up a little bit as well but I would say probably 80 plus percent of all coins are down and not keeping their value against Bitcoin right now you would be much better off if your portfolio was really 100 percent Bitcoin

And that would be a good situation to have been in in the past few days however I'm sure many of you are not in that position so let's talk about what that means Chris pernitskiy tweeted this if you are

Not following Chris Byrne SEO to recommend you do so author of crypto assets and placeholder VC I like his opinion in the space some people don't it is what it is but I love Chris Byrne who skis takes and this is something

That he said so here's the cycle Bitcoin rallies hard at the majority of quote-unquote all coins drop as Bitcoin is the main liquidity provider to crypto right now and no one wants to sell BTC the value of those alt coins drops in

BTC terms until Wales choose to cycle into alts then the whale cycle from Bitcoin into the alts that are depressed pick whatever all it might those alts rally even harder than BTC did because they are higher risk and

They gain in Bitcoin terms then the whales cash their alts out for more BTC that they started with so they make Bitcoin then Chris goes on to say BTC is the market beta of crypto every other crypto

Asset has a higher beta than Bitcoin meaning it'll move more to the downside when people are panicking and also more to the upside when people are bullish about the environment as a whole so what does that mean and just kind of

Summarizing things right now right now the coin is obviously rallying very hard it's up close to 100% in the past few months it has basically doubled off of its cycle low and because Bitcoin is rallying hard what are people doing

They're looking at their alt coins and most alt coins are traded directly against their Bitcoin trade pair so if you have something like let's say tezo's or if you have a theorem or if you have light coin the most liquid pairs to

Those especially on non fiat exchanges are usually into BTC so if people are trying to buy BTC what are they doing they're selling out others all coins and they are holding air they're moving into Bitcoin and that vastly drops the price

Of those all coins in Bitcoin of value so those all coins are down significantly from their Bitcoin purchasing power then at some point in time people are going to make a significant amount of money from Bitcoin

What do they do once they think that the market might be topped in Bitcoin they choose to look at very depressed altcoin prices they transfer some of their Bitcoin into those all coins and then because those Aucoin 's have a lot less

Liquidity they're very small in terms of market cap in comparison to Bitcoin a lot of money or a little bit of money does quite a bit in terms of the price those all coins actually rally harder than Bitcoin does and the price goes

Nuts and then at some point in time those individuals who invested in those all coins will take profits move that back into Bitcoin so for example you know they had one Bitcoin they sold it into an all coin they held that all coin

The all coin doubles they cash out now to Bitcoin at a very very very high level that's the cycle so why is that cycle important why should you care well if you're holding all coins and you have that question you know why am i losing

Money why is Bitcoin going up and why is everything else going down well that's part of the reason people are selling their alt coins to move into Bitcoin because they have confidence in Bitcoin and typically Bitcoin will lead the

Market and that money after Bitcoin runs substantially that money would flow into the more liquid what people would consider hired a medium cap cryptocurrencies and then would cycle down to the small to low two just like

Real real coins and every single time because of the the size and the beta outside of Bitcoin you're going to see different effects on the price so I do think that that's important for you as a investor in these altcoins to

Understand that cycle and how things have traditionally moved granted when you're looking at this right now and I am NOT a a Bitcoin maximalist I don't pretend to be I think there are other cryptocurrencies with valid use cases I

Also understand and completely respect the Bitcoin maximalist view way of life or just Bitcoin or if if you want to say Bitcoin maximalist is a derogatory term I I understand the the I understand both sides of the coin and I'd like to say

That I'm very much a buffalo chicken wrap eating middle-of-the-road guy here and that's that's just the way I approach things people you start to see a lot of individuals who are you know firmly on the Bitcoin train not

Necessarily get cocky but start kind of bragging saying you know what you should have been holding Bitcoin you should have been they shouldn't have been dabbling with these coins you should have been doing this you

Shouldn't been doing that and as that chatter continues to pick up that is typically when you'll start to see I think some movements in these all coins and that's that's the way that's kind of the bet that I'm playing on right now is

Bitcoin is going to continue to lead the market but there will be a specific point in time where money does flow from Bitcoin into the mid-to small-cap crypto currencies and you'll start to see some out size gains on those alt coins

Because of that typically though that that happens pretty quickly it's not something that that takes a you know very long time to develop so trying to position myself personally accordingly

With that something to keep in mind on your end the two things again that you really want to understand and keep an eye on its number one dollar cost averaging is often the best and the easiest way to go about things

Especially if number one you're lazy number two you have a busy life or you just do not feel confident in your ability to time the market you don't feel like you have an edge you probably don't have an edge whatever it might be

It is a very effective strategy to dollar-cost average whether it's on a weekly basis bi-weekly basis monthly basis again go to stacking SATCOM Chatham at Odell entomb already been that guy's from Tales from the Crypt for

Building that calculator it is great it's really cool and it will help to visualize how you can do things and at the other end of the spectrum if you are a bit corner great just do your thing go for it on the other end of the house if

You like to dabble in altcoins if you are a believer in alt coins understanding the cycle of how Bitcoin runs and how that eventually moves into altcoins is very effective for helping to plan

Things a little bit right now Bitcoin continues to lead the market and as everything else bleeds out but at some point in time we might see a trend reversal where Bitcoin cools off and a lot of that money moves into all coins

So something worth considering and worth keeping an eye on if you are looking to increase your Bitcoin stack have a little bit of fun trading enjoy yourself whatever it might be if you missed the interview that I had recently with or

With everybody at fluidity would love for you to check that out I put out a bunch of content for that so a lot of people said they enjoyed that there will be a link somewhere around here in the show area at the end screen for that and

I'll have another video out in the near term I believe tomorrow with the other interviews got some really solid guest Alex Warren from Ida X max from Dharma the guys from Alpine Intel a whole slew of people really enjoyed those

Conversations from fluidity summit hope you guys did in the first video as well until then make sure to hit that like button subscribe to Bobby sent it out peace

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