Cryptos - been there, done that..

When I say I do trading most people ask me about crypto currencies.?

In fact, my experience in trading App’s began with crypto and I made some money out of it. I also lost money and, at this point, the two crypto currencies that I kept in my wallet are so undervalued that I don’t honestly believe I will ever get my money back.

As I started gaining interest in trading and initiated my learning experience, I came to realize that crypto is a “tweet-oriented market” where technical analysis is useless since no chart patter is immune to a Elon Musk post.

The phrase “Bitcoin is Dead” is a trending topic at the moment with several crypto critics arguing that crypto currencies are near extinction. Recently, Peter Schiff, CEO of Euro Pacific Capital Inc tweeted that BTC (Bitcoin) can go down as low as $3.000!!! (it was worth $69.000 in November 2021 and is now at approximately $21.612).

Crypto enthusiasts will say that BTC already had 452 obituaries* and that it always managed to bounce back. I am not a believer.

Total cryptocurrency market capitalization was valued in $3 trillion on November 2021 and has now fallen below the trillion milestone, to $983billion**.

The easiest explanation is that investors are pulling out from riskier assets in a setting of rising interest rates. Additionally, the US Dollar Index has recently hit its highest value in twenty years and many crypto backers supported digital currencies worth in dollar weakness.

Cryptocurrencies are not money. They are not a stable store of value.

Many thought that Bitcoin and other cryptocurrencies would be a hedge against inflation but in fact, 2022 has shown that most (if not all) crypto currencies have been devaluing against real-world assets,?falling in value?at a faster pace.?

Cryptocurrencies are no longer making anyone rapid fortunes and are?no protection against inflation.?

In my personal opinion, crypto currencies are a sort of pyramid scheme: redistributing wealth from players with little knowledge about trading and financial markets. I invite to read this article on Forbes and make your own conclusions.

If you never invested on cryptos you are safe. Look for other alternative markets and practice on a demo account before you get started.

If you are an investor maybe you should consider selling your positions even with a money loss. As long as inflation remains high and interest rates continue to climb you will hardly get your investment back.

Please note that the future for digital coins and tokens remains dubious and interest rates hikes are likely to jeopardize any short-term potential for profits.

*Source cnbctv

**Source analyticsinsight