Up. Down. Up. Down. Way Up. Way Down. Way Up... so on and so forth. That's been the pattern for the last week with the most valuable digital currency, bitcoin. It's enough to make a goat vomit and not for the faint at heart if you've got allot of money tied up in bitcoin.
The question is, do you buy, sell, or hold?
Why The Drop?
Before anything, it's the reason for the current drop and roller coaster ride that has to be analyzed so one can make an educated decision. For that, there's really only guessing since nobody can be 100% sure, however it appears as if China has something to do with the current drop.
China recently warned banks about digital currency, something they have done before, and that caused some of the drop "experts" say.
A large amount of profit taking took place just after the historic all-time high and who can blame investors, some had been waiting a good three years.
Bitcoin is volatile. Make no mistake, it is without a doubt... rather bitchy.
Buy, Sell, or Hold?
If you're long, then hold. The market rate is still well over what it was a year ago and if history has shown us a few things, the stability and market rate has been increasingly on the up. It is likely in your best interest to hold and sell later in the year or beyond.
If you're short, this is your time, make the most of it since we don't see this kind of volatility very often anymore. Once upon a time many moons ago, this was the norm.
Here's a nerve racking but lucrative way to earn during volatile times, try margin trading on an exchange such as Kraken. Just note you may end up owing some money if you do this poorly, but this is a good way to earn if you're short on funds.
All in all if you're in this for a strictly long term investment, now is the time to BUY because we'll likely see $1000+ a good portion of 2017.
Get on it.
Report by dinbits
Image by dinbits.com staff