Recently, a few Millenials in my family…..and a couple of Baby-Boomers….asked me about cryptocurrency (Imagine that, baby-boomers asking Gen-X for advice). Around a year go, I told one of my nephews to buy Bitcoin and it is still sitting in his wallet. I forgot all about it, but he did not. After staving off the advice of his fellow peers on what he “should” do and keeping his patience, he now wants to learn the market.
First off, I had to tell everyone that I hold very little crypto (that I bought outright)….and that I do not trade it. Of course, everyone asked why I don’t trade it. All traders are gamblers, right? WRONG.
When I checked last year, the market showed no structure, but after a recent glance at the weekly chart, I believe that is changing. Observing the structure of a market, and forming a reasonable hypothesis about its future, increases the likelihood of a successful trade.
The second reason is this: I do not really know what it is. It is called cryptocurrency, but is it really currency? I cannot pay my car insurance with it, yesterday at the grocery store I could not buy ice cream with it nor fuel up my car with it. It is just not generally accepted in the course of usual, everyday business….yet. And, I know, some will say “well, i bought an xyz with megacoin last week,” but honestly, if I gave my brother 2 spinners to re-sheet a foresail, does that mean spinners are now currency?
Given all that, and looking at its trading history, I have to agree with those who call crypto a speculative asset (ruled by greed & fear).
Trading a speculative asset is not an issue when market structure is present, however I still have to learn the market. And because of that, I will not be spending my Friday night watching Thrones or Killjoys. I will be spending it watching this …twice.
….and probably twice again.
If you want to make sense of a confusing market, go visit the fine folks who taught me how to read a chart: Infinite Prosperity, a Corp. Authorised Representative of Alpha Equities & Futures Ltd ABN 76131376415