You've heard the people you look to for financial advice say it over and over again: "Be sure to take some profits." But when the cryptocurrency market is booming, it can be very difficult to take even a small fraction of your portfolio off the table. Although we don't like to admit it, greed and FOMO (Fear of Missing Out) encourage us to keep every last penny in the market in the hope that those pennies will multiply the value of our portfolio even more. "Why should I convert those 4 Ethereum into $1,000 dollars, when those 4 Ethereum will be worth $1,500 dollars in a couple weeks?" Does this sound familiar to you? If it does, you probably also recognize the disappointment, and even panic, that comes when a bullish movement comes to an end, and the market corrects the value of those 4 Ethereum to $700 dollars or less. I know that I'm personally very familiar with these feelings.
All price spikes come to an end, even in cryptocurrency. While most people see price spikes as an opportunity to keep earning more, the inevitable pullback offers an equal, if not better opportunity - to lock the profits in, and employ them elsewhere.
Many cryptocurrency investors are very good at spotting a currency that is undervalued relative to other currencies, or that has experienced a recent selloff and is primed to take off again. But those same investors are not aware of another asset class that is far more significantly undervalued, with potential for big profits. Furthermore, this other asset class has the same attributes cryptocurrency traders appreciate: scarcity, fungibility, rarity, divisibility, security, etc. This asset class is precious metals, such as gold and silver.
Gold and silver prices are extremely low right now. So low, that the price of silver is barely more than the cost of mining and processing it. Gold and silver are essentially on sale - a once in the lifetime kind of sale - and their price cannot go much lower. This sale price represents an amazing opportunity to diversify your portfolio into an asset class that has all the properties you love as a cryptocurrency investor, as well as an opportunity to convert your profits into something other than fiat currency, while protecting those profits from loss. Again, gold and silver are so cheap right now, it is highly improbable they will drop much further. Certainly the value of gold and silver is far safer investment than deflationary fiat currency can ever be.
If you are tempted to take profits, but are reluctant to do so because of FOMO, or you hate the idea of converting your crypto to fiat, consider buying gold and silver. They're not as exciting as crypto, but their combination of cheapness and price safety are an excellent way for you to secure what you've worked hard for, as well as make a significant profit when their prices start to move again. The great news is there are gold and silver dealers which will accept bitcoin as a form of payment, and you can convert your profits into tangible savings in the time it takes your Bitcoin transaction to clear the network.
Couple of months ago i found a website where i can buy silver bullion coins with my bitcoin (worldwide shipping) and it had 2 effects on me:
I get into physical silver because the price is massively suppressed, the supply is limited and the demand from industry side will surge for sure no matter what
It made me understand that i actually can use my crypto money to buy from retailers.. that was an amazing feeling and it gave me the confidence to put much much more money in crypto
I don't know how to describe it, but there is something very satisfying about converting crypto into a tangible product. You buy crypto, that crypto makes you a profit, and you turn that profit into something real. I'm glad to hear you're securing your future with crypto, gold and silver. I wish everyone would reduce their exposure to government controlled fiat, we'd all be a lot better off in the long run.
IMO we have a historical opportunity with the crypto to invest in the future "stock"... people one day will envy us and think "i wish i could invest in bitcoin back in 2017...."
looking back at history, governments have no problem crushing/bankrupting the economy once in a while... on the back of the regular people of course... and as we all know, history have the tendency to repeat itself (specially when the population now days have a very short memory and a very egocentric attitude
I've only been involved in crypto for a short time. My father asked me what I thought about Bitcoin around XMas last year, and being completely ignorant about the subject, I told him I thought it was just a form of gambling. But my ignorance gnawed at me and I looked more into it and realized how wrong I was. I do look back at those who got in before me and think: "I wish I could invest in bitcoin back in 2012....". But you have a great point, even though I got to the table fairly late, you're right, those that come after us will see this time was still a great opportunity to invest.
I saw one video that presenter Microsoft stack, the beginning was very volatile but eventually the growth was exponential. we are at the early adaption right now.. that means the massive growth haven't started yet my friend :)
I think your right I prefer gold and silver in my hand rather than paper gold etc
And the sound of a stack of coins clinking over sheets of paper rustling together!
Couldn't agree more! When I eventually take some earnings from steemit, those earnings are going straight into paying bills, or buying precious metals.
Great to hear from you. I really appreciate your YouTube channel and am thrilled to see you here. I bet your economic collapse scenarios would do well here. I have to say I was disappointed you ended them ;) If you're so inclined, a resteem of this article would be greatly appreciated as I try, like you, to turn Steemit into a profitable enterprise.
I completely forgot about that series! Thanks for reminding me, I'm definitely sharing them here.
Nevermind, I see the resteem already. Thanks so much!
I think silver and gold may be ready to start moving up again. Here is an article I wrote breaking down some mining companies, the better of which should outperform the metals themselves by a wide margin. https://steemit.com/money/@motowngold/i-think-gold-and-silver-are-staging-for-a-run-here-are-some-mining-stock-ideas
I've got a decent investment in the mining companies, including Avino and First Majestic which you mention in your blog post. The last couple of months have been frustrating as I haven't been able to see any sort of correlation, positive or negative, with the rest of the market. But I'm definitely on board and believe they have a strong future. Thanks for pointing to your blog, there are some companies in there I hadn't heard of.
I am right there with you . The past months were frustrating but the companies still have their positive qualities, just need the metals to cooperate.
So good article, I got to click resteem... :)
Thank you, I appreciate it.
I heard today that zilver might go up very steep till januari, what do you think?
The price of silver is very hard to predict. One thing any investor needs to know is that for gold and silver, especially silver, banks are working very hard to suppress the price. Just do some research about the GATA (Gold Anti Trust Action Committee), or JP Morgan and Deutsche Bank being investigated for manipulating the silver market. Every time silver gets around $17.50 or $18 per oz, the banks massively short the market driving the price back down. Silver should be seen as a long term investment with the potential for explosive price growth once there is an economic crisis, or the bank's manipulation ends. Once the manipulation ends, silver and gold would be free to find a true market price, which is likely many times its current value.
If I were a betting man, I would say there's only a 10% chance of that happening this year. My price prediction for January would be somewhere in the $17-$18 range - right where it is now. Again, silver and gold are long term investments, but these are my opinions, not financial advice, and you should research and make up your own mind.
Thanks for the long feedback. Realy appreciate it. Sure you are right to do Some more investigation, on the other hand I think an opinion of someone who is realy on the market and price is worth a lot. Will sure keep it in mind. Thanks!