Crypto Is Crashing The Next Downward Movement Will Be Detrimental Another FTX Coming

[jilla82]

straight fire.
havent enjoyed reading something this much in awhile

(btw dont confuse btc/eth with the nonsense thats been going on)

 

[Gloxina]

Its true. When Covid hit in March 2020 I invested even harder in the stock market cause everything was cheap (401K, Roth IRA, individual accounts and etc). I learned my lesson from 2008 thru 2009 and made sure I made some money from the dip in 2020.

I will never forget a old white dude I worked with telling me at like my second job out of college that when folks you work with screaming about their retirement funds going down that is when you invest harder.

He mentioned that when 9/11 hit his retirement fund got cut in half from 3 mill to 1.5 (he had been with the company 30 years and still had like 10 more years to work) due to the market crash. He panicked and pulled his money out of that the specific funds and then placed them in bonds and adjusted his future investments to bonds. He said that was the dumbest mistake he made and probably cost himself at least 2 to 3 million. Because the market came back and on top of top of that he wasn't investing in the market (just bonds) when everything was down. Dude told me as a youngster to him don't ever do that dumb shyt unless you need to retire in a year or two.

Yep I’m still mad at myself because I didn’t go hard during covid. People came UP when the world “reopened”. I promised myself if we have another drop like that I’m throwing my $ in the market lol

 

[Afro]

straight fire.
havent enjoyed reading something this much in awhile

(btw dont confuse btc/eth with the nonsense thats been going on)

You gotta hit the part of the brain that cares about money.
The other shyt won't come into play because of the dollar signs

 

[CrimsonTider]

You DCA in crypto or stocks so you don't have to time the bottom. Or even blow your load and put all your money in and have no more cash on the side.

So for example lets take bitcoin. lets say you had 6K cash to invest over the last 6 months (to make the math easy). Instead of dumbing entire 6K in June when it was 30K a coin. You instead DCA 1K a month. You would have a lower cost avg because you DCAed into Bitcoin and now you would have more instead of less because your avg cost would be less. Instead if you FOMOed in with the entire 6K in June.

We could change this to apple or google or VOO or any stock. Basically DCA is the same thing your company does for you with you 401K. They DCA a set amount into your investments once a week, or once every two weeks or once every month. Its one of the best ways to invest because it is hard to time the market whether Crypto or the stock market.

I said why would you DCA into crypto not stocks

I know what DCA is

 

[Blessings]

Once again for the slow folks out there. You make your money when markets are down not when you buying at all time highs. This is the best time to DCA in Bitcoin and ETH. Same with the stock market this is the best time to DCA into blue chip stocks and the S&P 500 Index funds. Your older self will thank your younger self in the next 3 to 5 years.

Facts…idk why thecoli is so down on cypto….been playing with house money

 

[Reality]

Breh you can't time the bottom in Crypto or stocks that is why you DCA. If you stand on the side line waiting for prices to get lower that is how folks miss out. You DCA and you don't have to worry about when is the bottom.

Also since crypto exchanges crash whenever a new low happens its even harder to get on exchange and buy which is even worse cause of flash crashes. So DCAing is still the smart thing to do.

If you'd DCA'd starting at the beginning of this year, you'd be down. If you have the time to pay attention to macro shyt like inflation, interest rates, & geopolitical conflict, it's well worth it. If I'd DCA'd into this dip I'd be down double digit percentages since the beginning of the year. Look at P/E ratios...they're still pretty high and that's without earnings cratering like they could if recessions pick up.

It's way too big of a post, but the world we live in has been made possible by low interest rates, cooperation between China and the US, and relative peace between great powers. All 3 of those things are coming undone at the same time. There is way more downside risk in this environment. You lose very little imo by waiting until Q1'23 or Q2'23 to see how some of these trends play out. Cash is still king, and then real estate if & when it cools off appropriately.

If you've paid attention to stock performance, it's clear the market is frothy & still entirely reliant on low interest rates. shyt's behaved like crypto in terms of volatility for months.

And it's not inconceivable that crypto moves sideways for the next year or worse. That entire space is looking wobbly. Look at Bitcoin's price and think look up MSTR's liquidation price on BTC. Look up the commentary re: Ethereum being a security. The FTX collapse has burned institutional investors and invited regulation, and that's not good.

I'm not trying to FUD, but I genuinely believe people who can wait another 3-6 months don't have a ton to lose to the upside, but a lot of potential downside to avoid. And if you're going to DCA you've gotta DCA into non-tech blue chips with good dividends and resilience in recessions. I would not DCA into crypto at this point.

In the meanwhile you can construct a fairly OK portfolio hedging against inflation somewhat between I-bonds & treasuries.

My 2 cents.

 

[1thouwow]

This is another lesson, it's better to remain silent and appear stupid then open your mouth and remove all doubt.

This is has nothing to do with assets, or crypto

He never had any crypto in the first place, the company was a scam, not the crypto currency, the fact you can't understand that shows your lack of understanding about what these things are.

People used his exchange thinking they were buying crypto and etc, but really he was just running a ponzi scheme and never had any assets to sell on the exchange

nikka shut up

 

[Master Teacher]

nikka shut up

Here's the CEO over 6 months ago, literally describing a ponzi scheme when he's explaining his model

everybody in the crypto space is an idiot, and the prime example of followers

the whole point of crypto was to a private exchange between two people peer to peer, not a get rich quick scheme

 

[null]

I shouldn’t have ever fukked with crypto

paper hands

 

[null]

We could change this to apple or google or VOO or any stock.

Try it with enron stock

 

[1thouwow]

Here's the CEO over 6 months ago, literally describing a ponzi scheme when he's explaining his model

everybody in the crypto space is an idiot, and the prime example of followers

the whole point of crypto was to a private exchange between two people peer to peer, not a get rich quick scheme

 

[Uncouth Savage]

I view life like this
next year or next month
everything could go to zero
everything could rise x100
who knows
if you know though
then bet on it
anything else is theory/trolley with no skin in the game