Bitcoin, Altcoins and Scams

Bitcoin is on a surge upwards again.

This is both good news and bad news, as I explain here.

First of all, I do believe Bitcoin has entered a new bull market, after “wandering in the wilderness” for a couple of years. This is good news of course, but it does raise a few important issues – if you are holding or intending to buy Bitcoin.

When it comes to buying, realise that you may see rapid prices rises, but you will also see regular corrections, as these have become part of the price discovery process now. So if you intend to buy Bitcoin watch the price and charts and have your funds ready to buy on a price dip.

Where will price go this year? No one knows for sure of course. But looking at the long term chart and considering this carefully, I do believe it’s entirely possible to see a price of $2,000 to $3,000 by the end of 2017. Of course any “black swan” events could disrupt that prediction in unexpected ways and it’s impossible to predict such events.

If you’re holding Bitcoin, then its rising price means you need to take great care with security. And the first thing you must ensure is that you do not leave your bitcoins with any third-party service, whether an exchange or a custodial wallet service. Why? Because if you do not have the private keys you don’t have ultimate ownership of those coins.

As Bitcoin’s price rises, it also attracts thieves looking for ways to steal your coins. The absolute best storage solution is a hardware wallet like Trezor, which keeps your private key secure and offline at all times.

What about altcoins?

Well, let me share my own experience. A few months back I decided to dabble in a few – Monero, Etherium, Dash and ShadowCash – and probably spent around $10K altogether (using Bitcoin). I had seen how these coins had made rapid rises since the beginning of 2016 and decided to speculate. Sure enough, after I had bought them, the price started to fall.

In the end I decided to take the loss and cash back out into Bitcoin.

The lesson here, I believe, is that while an experienced trader may indeed make profits by trading in and out of altcoins, it’s like shark infested waters for everyone else.

Yes, you will see altcoins rising, especially on the tail of Bitcoin, but my advice here is to stay with Bitcoin. It has first mover advantage and the network effect – not to mention the biggest infrastructure. And keep in mind that virtually all altcoins can only be purchased with Bitcoin.

Another thing to look out for are Bitcoin-like scams.

It seems to be human nature to want to look for something “other” than Bitcoin, hoping it will be the next big thing. This has led to a number of “coins” linked to business opportunities (like OneCoin for example). Let me say right here that I believe all such coins are scams of one variety or another – mostly ponzis – and I urge you not to fall for them.

If you want to benefit from the cryptocurrency revolution, buy the real thing, Bitcoin, and hold it (using money you can afford to lose of course!)

Another common Bitcoin scam involves the so-called Bitcoin mining opportunities that are proliferating out there. Once again, in my estimate these are almost all scams. Anything offering to grow your Bitcoins at the rate of 5% or so a day is clearly a ponzi, so be warned!

If you’re just getting interested in Bitcoin in particular and want to dig deeper, then you can get my two free reports – Bitcoin: The Money Revolution and Bitcoin For Beginners from the link below:

http://www.bitcoinreport.info

The information in those reports will give you a good basic understanding of Bitcoin, as well as providing you with good advice as to where to buy, how to store and even how to spend.

And if you’re looking for an altcoin that represents a game-changing technology which I believe has significant upside potential and will make waves this year, then you may want to consider getting my special report (and my assistance) here: The Early Adopter’s Secret.

I do think 2017 is going to be a very significant year for Bitcoin (and the altcoin referred to above) and while you may be tempted to think Bitcoin is already “too expensive”, remember this. You don’t have to buy one whole Bitcoin. Simply think in terms of dollars. You can buy $100 worth of Bitcoin. You can buy $10 worth if you like. You see, a Bitcoin is divisible by 8 decimal points down to 100,000,000 sub-units, so you can buy a small fraction of one.

And regarding it being “expensive”, just ask yourself if you’d be happy to pay around $1,100 (the price as of writing this), if it were to grow to $3,000 by the end of this year, and continue growing to $10,000 and beyond?

It’s all relative. And in my opinion the right time to buy Bitcoin is always “now” – on any price dips of course 🙂

 

 

 

Leave A Response