A few months back I was introduced to crypto currencies. More specifically Bitcoin and Dogecoin. I was skeptical to say the least. I am a Day Trader / Swing Trader and had been doing really well until Habitual Liar Lying Biden took office. Stocks had changed and I was struggling to regain the grasp to make money with them.
I was chatting with a co-worker one day and he told me how he had been investing essentially his spare change for the past couple years in Dogecoin. He told me how he had acquired a few thousand coins and with the then recent price increase he was very happy. So, I decide to invest a few hundred and try my luck. YES! Within a week I had made enough that I was impressed. I decided to take some out of my brokerage account and transferred it to my newly created Robinhood account. I continued to make money! The price kept going up! Woohoo!
I have to say that Robinhood was a far cry from my brokerage account trading software. It was very limited, had no stop loss, or price change notifications, and other features I was accustomed to. I really sucked the more I used. I tried Coinbase and found just as lacking. I finally settled on BinanceUS and have to recommend it to anyone looking to move to crypto and has experience trading stocks.
But then one day a particular idiot, who happens to be rich by chance, not by smarts in my opinion, named Elon Musk – CEO of Tesla Motors, used his far from wise brain and uttered a few words on his Twitter account. And down went the price of Dogecoin! And he bad acting performance on Saturday Night Live had yet another stupid influence on the price of crypto currencies. And there went my money as I tried to recover and play the downward spiral after it had hit a new all time high.
It was time to RUN from crypto currencies! When the word of a single human being has that much power and influence over a whole commodity it is not the place to invest your hard earned money. But even worse, so many of the crypto currencies are derived from and/or based upon Bitcoin! OMG! The price one of greatly influences the others! I would sit and watch multiple Binance charts and you could overlay the charts for multiple crypto currencies over each other and see the exact same chart pattern! Another big RED FLAG!
My advice, wait a few more years for these commodities to settle down. Don’t get me wrong. I deal with volatile stock day trading. I know and understand volatility. But stock volatility is way different that crypto volatility. And when crypto volatility is influenced by a single man, that is the most extreme volatility you could ever ask for and have absolutely NO way to predict when that person might utter a single word to bring it all crashing down in minutes.