Should I short bitcoin? With Chris Guida (video/podcast)
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 hear more from Chris on our other podcast, the Crypto Hippie Drum Circle
Disclaimer: As always, this is not intended as financial advice. We don't know your situation, so we can't make recommendations for you. We're merely explaining our own thinking processes when it comes to investing.
The Episode
You can listen to the episode on Anchor and other podcasting services here: Cryptonomics - Should I short bitcoin?. Or watch on YouTube below:
If you hate money.
If you bought at $20,000 shorting now seems like the obvious consequence.
Well, the best advice in this videos is given by the guy at the end... Wise words are always coming from empty bottles (or cans) :)
Cheers!
Haha... I guess so
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Does anyone thinks same happens to ether or it s only btc bad luck?!
Great!! Thanks
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I agree DCA'ing is probably your best bet and the safest.
But with the current market I am uncertain if I shouldn't just wait for a few monthes because of the slow and steady drop.
me gusta mucho ty my bro
Have you guys heard that Gox Dox is back after five years, revealing that a Mt. Gox trustee dumping his coins on the market may have been a contributing factor to the major selloff of 2018? If you take this into account, then BTC could be dramatically undervalued at current levels while also having farther to fall as this guy continues dumping. https://www.goxdox.com/2019/02/the-dumpening-trustee-bank-book-reveals.html