Are you buying it for its currency applications?
Are you investing in the technology?
The way I see it, cryptocurrencies are traded with Zero thoughts, or atleast vast majority of people that I know don’t even have a rationale behind choosing a specific cryptocurrency.
Let’s not forget some famous tweets, telegram groups, etc that have pumped and dumped Coins in the recent past.
I was one among the lot who gained when Dogecoin reached its all-time high (To-the-Moon, remember?) but I had absolutely no clue how or why it happened.
My rationale in buying coins was just to ride the wave,
if you are doing that too, then I think we are giving the power in the hands of few influencing community to create wealth
I liquidated all my holdings and thought let me first understand before I invest.
Here is my take on the Cryptos,
For simplicity’s sake, let’s take the M(F)AANG.
All these stocks are Rockstars! I know one took a beating few weeks ago, but none the less the fundamentals are really strong.
When I say fundamentals, I mean their core technology. All these companies are built on solid technology foundation that we know are here to stay and contributing to every activity from the time we wake-up till we sleep. Naturally, we tend to invest in them.
Similarly, Cryptos in my opinion are not to be Traded for its Currency applications.
But are Investments in the Technology behind it and how it can add value to what we do and how we live in the future.
But the challenge is that the micro-lot who understand such advanced technologies know the real value and the rest follow their cue.
While the information is available in the Whitepapers published by each coin during their ICOs, the vast majority are still clueless and have their own interpretations to it.
While the Crypto trading platforms have boomed globally, I think in this nascent stage platform's should help demystify the technology and drive Investments, not Speculate. That may bring stability in the Crypto Market.