Monday, July 2, 2018

Bad Jump into Crytocurrency

I jumped into Crytocurrency about a month ago, and wow did I pick a bad time to do so. Bitcoin, Etherium, Litecoin, and Bitcoin Cash, (Crytocurrencies that I became more familiar with) all dropped in price by a large percentage in the last month.

I was excited for Crypto because I could trade stocks 24/7, outside of the current 8:30 AM - 3:00 PM time frame. I was also excited because it doesn't have Pattern Day Trader rules/requirements. In the regular stock market, if you have under $25,000, you can't pattern day trade (I guess you can, as long as you don't have any type of margin account, and you wait three days for your funds to settle). I was looking at Crypto as a side hobby to do some fun trades and to make a few bucks.

I'm DOWN a lot of "BUCKS" right now. I guess I'll sit and wait and hope Crypto goes back up. The risky thing is, there aren't the same reasons for a crypotcurrency price to go up compared to a regular stock.

In the future, when Apple undoubtedly beats earnings expectations, the stock price will rise. This is due to Apple showing it is a profitable company. Bitcoin isn't a stock, and it's not a company. Bitcoin doesn't "release earnings".

While I'm currently down in value on my cryptocurrencies, I'm still excited and optimistic for this technology in the future. In the meantime, I need to do more research.

Thanks for reading.

Signed,

Mitch

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