Crypto Investor: Bitcoin Dives! The Issues of a Low Liquidity Market

  • Wednesday, 07 March 2018 22:41
Bitcoin has fallen quite substantially in the past 48 hours from $11,600 to roughly $9,750 at the time of writing this. It appears this has a lot to do with hitting resistance at roughly the $11,500 level, a level that Bitcoin has tested multiple times in January, February and now March as well. Now that we've bounced off this resistance yet again, it might be a tempting area to take profit in the future until we break out above 100-day moving average. Steemit Post: https://steemit.com/bitcoin/@cryptovestor/bitcoin-dives-the-issues-of-a-low-liquidity-market There was some news related to some significant sales from the Mt. Gox bankruptcy trustee that could have helped facilitate the market crash back in January and beginning of February. I don't think this is an outrageous claim: Liquidity has been a common criticism of the cryptocurrency space as the amount of cryptocurrencies actually available for trade can be quite different from the supply, and often the available trading supply is fragmented across many exchanges, spreading out the liquidity. This is a commonly cited argument for why Bitcoin and other cryptocurrencies are manipulated on exchanges - not only are regulations and enforcement loose, but it also requires a relatively smaller pile of money to substantially change the market price of many cryptoassets. There are a few other news items I bring up in the video related to the Coinbase Index fund which I don't recommend (2% annual fee and it forces you to hold Bitcoin Cash) along with the SEC statements relating to online trading platforms. They're sticking with their prior statements that these "exchanges" aren't really regulated as exchanges and hence investors should be cautious. The major concern is that massive exchanges with many cryptoassets like Bittrex likely have some securities, although it seems like the SEC is just warning investors right now as opposed to enforcing. What are your thoughts on the market moving forward? Thank you for watching / reading. ================ If you like my content, you can support me through using ANY of the affiliate links below (I receive small compensation). The beauty of affiliate links is that I can pick and choose what I like rather than have companies approach me - everything I linked below (with the exception of Trezor since I like Ledger), I use myself frequently. ================ My Recommended Hardware Wallets: If you want to store your cryptocurrencies safely, the best way is through a hardware wallet. Seriously - look it up and you'll find plenty of information supporting this claim. There are alternatives such as paper wallets, but these are convenient and my choice for cold storage (offline): Ledger Nano S: http://amzn.to/2hZPj0q Trezor: http://amzn.to/2AxD9TN Ledger Blue (expensive): http://amzn.to/2hk7xst I personally prefer the Ledger Nano S, but the Trezor is such a close second that it really doesn't matter which one you go with. Ledger Blue is premium and convenient, but not necessary. ================ My Favorite Book for Investing in Crypto: Cryptoassets: http://amzn.to/2zKDdCF This book is, bar none, my favorite book for investing in cryptocurrencies. It doesn't bog you down with technical jargon, but instead focuses on all the elements you should understand before you invest. It's a comprehensive book for both beginners and experts. Beginners will find information about major cryptocurrencies (not just Bitcoin) as well as details on historical market events (that you can draw on for future) and events to watch for moving into the future. Experts will find the chapters on valuation particularly useful. For those of you involved in traditional investing, this book is even more of a godsend as finance info is explored (correlations with other asset classes, ETFs, etc). ================ My Recommended Exchanges: Coinbase / GDAX / Bittrex https://www.coinbase.com/join/5a08b12e305a1401d79d10e0 If you sign up to Coinbase using link above, you and I will both receive $10 each after you buy your first $100 of Bitcoin using Coinbase. Coinbase is much less intimidating for beginners. Once ready, move up to GDAX for cheaper or zero fees. For altcoins, I recommend Bittrex. ================ Legal Stuff: I am a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for me to earn fees by linking to Amazon.com and affiliated sites. None of what I provide in my videos is investment advice. Please do your own due diligence. ================ My Platforms: Twitter: https://twitter.com/Truth_Investor SteemIt: https://steemit.com/@cryptovestor Medium: https://medium.com/@Truth_Investor Seeking Alpha: https://seekingalpha.com/author/truth-investor/articles

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