After a solid year of bitcoin making low after low, you might think that it will continue to make new lows. You might even be so confident as to sell bitcoin short – that is, to borrow bitcoins in order to sell them, and profit when it goes lower. Would that be a smart move in market like this?
Or would the opposite action be correct – has crypto been going down for so long that it’s “due” for a turn around? Should you invest in cryptocurrency now, in February 2019?
The other day I spoke with long-term Bitcoin enthusiast and software developer Chris Guida to get his take. Scroll down to watch and listen to this episode.
Should I invest in bitcoin?
Chris notes how the market is down more than 80% from its peak, with many altcoins losing more than 90% from their all time highs. He says the idea is to start slow, dollar cost averaging, putting in $5 or $10 a week and building up slowly. A small amount of exposure to crypto can make a big difference in the long term.
Should I short bitcoin?
Nobody knows where the crypto market will go, but after one year of going down, it’s less certain that it will keep going down. A personal short-selling strategy from Chris is to catch an asset on the day that it first makes a big drop after a huge rally, such as when Monero made a stellar rise after gaining acceptance in dark web markets. Short-selling is risky, and so it’s prudent to limit shorts to a very small part of your portfolio
You can listen and subscribe on Anchor and other podcasting services here:
Cryptonomics – Should I short bitcoin? With Chris Guida