Yeah I have no idea why it pumped 15% in a day this week either, but that's the mystery of crypto (the secret is: it's nonsense).
If someone finds me another form of investment that regularly makes better than 50% (If not 500%) returns in a matter of months, I'll try it out. In my estimation, crypto has become kind of a no-brainer as long as you buy (comparatively) low. If the shit tanks while you're holding, just keep your position until it recovers. I don't see the established, well implemented coins becoming totally worthless overnight, with no hope of a rebound. That belief is of course based on performance so far, which is not a long historical record and I'll admit that anything can happen, in the same way any black swan event can unravel a system. There are a lot of shitcoins and I haven't even begun trying to figure out what they are and why they exist, but there's a few that have become "valued" coins, and like any fiat, they retain value because people give them value.
Before the BTC popularity surge of the 2010's, there were a few shitcoins available like LTC and ETH (IIRC), and they had preposterously low values. I looked at them while purchasing BTC to use, and was like "What is this shit?". Now, some of these coins are worth hundreds, just like BTC went from being under $100 forever to being permanently over $1000, and sometimes over $10,000. This all happened because crypto formed a kind of permanent market, and I'm just disappointed that I didn't have money at the time to get in on the ground floor (even after it started to ratchet up, gains have tended up despite the volatility). It's volatile, and I wouldn't put my 401K into it, but for small sums it's incredibly lucrative. You can make money on arbitrage too as long as you watch it ALL the time. Swings of 30% aren't that uncommon, especially with coins valued under $10, buy the dip, wait for a spike, repeat. Right now's a good time for arbitrage especially.
Go long on: BTC, XTZ. Both are middling high - though way down from historical highs, and you should have bought earlier, but I expect them both to be up significantly come the end of the year. If one or both swings down again during all this volatility, it's a definite buy.
I'm not an "expert", whatever that means for crypto (it means inside information just like NYSE and other markets), but I've paid attention to the shit enough to have some kind of strategy put together. Additionally, I'm not just rubbing one out - what spare money I have is in these positions.
www.nytimes.com.
