Crypto woes - the market is down, WHAT DO I DO?!

Hiiiiii and good morning/evening, whatever time it is, wherever you are! Dropped a new video this AM -- when the cryptocurrency market is down, it's the perfect time to learn and research. #DontPanic Lemme know your thoughts. If you're not trading, how are you spending your time until we see (consistent) positive movement? Trading View: Fantasy Crypto App iOS:

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I was amazed to see Bitcoin hit $10K USD, a valuation equal to Nike, Disney & McDonalds since it's not a company making money nor backed by any government or country. I understand it's extremely complex technology that will ultimately change the way information is stored but It's still not a company nor is it proprietary. A limitless amount of people can replicate the technology over time. I don't see a major security benefit especially after the recent crypto exchange hacking. Versus a traditional federally insured bank accounts I don't get it either. People don't really have that much of a security risk they have to deal with on a daily basis. With that being said I'm thinking of going with Dennis Rodman & investing into PotCoin lol.

We see a lot of valuations that are severely inflated in the startup world too -- for example, Snapchat was highly inflated. It's all based around demand, rallying, optimism. When people realize they can make money quickly on something, they'll throw down along with other masses of people which ultimately drives the price and value. The exchange hacking sucks but it had to happen eventually, otherwise it could never find what needs to be fixed in order for it to be secure -- and they'll truly never be 100% secure, IMO. If you're keeping BTC and other coins in cold wallets it's much more difficult for investment casualties to happen.

In the investment world a companies value is almost always determined by earnings/PE Ratios. Very rarely companies with no earning fetch massive valuations. That usually happens at companies in very early stages just before profitability is reached (think Tesla, it's a company losing money every day but will almost surely be making money in the very near future hence the $60B USD valuation). Bitcoin doesn't make a profit as a company and never will, it's not a profit seeking a company... Consequently others assign their own personally determined value based on seemingly market cap alone (purely speculative investing, a completely novice approach). Snapchat is a real company that's making real profits so value can actually be assigned to it. Snapchat made $300M USD this year - that does not include what people made by trading it with others, it's what the company actually made through business operations. Snap has legal rights & nearly 200 million users that companies pay a lot of money to advertise to. People are trying to assign value to Cryptos when they aren't value seeking assets & can be replicated endlessly. An asset being non-proprietary while being non-value seeking is not something to skip over, take lightly & not address.

I agree with a ton of what you're said - basing on market cap alone doesn't really do much, and yes to what you're saying about BTC. The discussion around that is much different than the discussion around new(er) companies/technologies that should be value seeking. There are companies leveraging blockchain technology that do have a plan in place, investors waiting, and a company/product that *could* potentially have value. Of course, everything is still very much speculative at this point in time -- we can only make the best speculation possible until crypto grows up a bit. Yes, Snap eventually started making money via advertisers, has legal rights, users, etc but they originally started out with little to no monetization. I haven't followed Snap closely the past year, but last I knew, they weren't profitable and ended up laying off their content division while they focus more on other areas. I used them as an example because there's ongoing speculation as to whether or not they inflated their user #s and growth.

It's unfortunate most of this advice is speculative & not fact based as in citing specific blockchain technology or Cryptos. Bitcoin & other cryptos being non-proprietary (meaning they can be legally replicated constantly) make it nearly impossible to assign value to. Cool that she mention FantasyCrypto!

Thanks for giving it a watch! I appreciate the feedback. It's meant to be more high level, as I've been fielding a lot of questions focused around panic/uncertainty from those who are newer to trading -- the intention wasn't supposed to be super granular for this particular one.

Well even the most experienced & seasoned investor would panic if (Got forbid) their investment dropped 65% over ANY period of time, let alone newer traders. It seems to me Crypto gamblers only have market caps to base their exposure on...since they aren't investing in companies making a profit they're purely speculative investments...aka guesses.

There's definitely speculation to it, yep. But you can make the most informed speculation you can judging by team, previous track record, whether or not the company is solving an actual problem etc, rather than throwing money at a bunch of coins.

Can this be a good time to buy the dip and wait for craziness like past december? I use this time to track events that can influence some coins

If you have additional padding that you leave in wallets specifically for buying dips, then stocking up isn't a bad idea. I wouldn't sell anything to buy other coins though.

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