Cryptocurrencies continue to be on a trajectory ‘to the moon’. Whatever narratives that have been fed by different sources or media, I fail to understand the parabolic move of these cryptocurrencies.
One may try to associate the incredible rise with the future de-basement of the dollars (due to massive stimulus), technology, a new gold mark in settlement system, the digital gold narrative (storage of value), etc etc…..
I agree with the reasons. But I do not agree with such parabolic move in such short timeframe. I do NOT understand the rationale behind the parabolic move. More importantly, does it mean that I do not invest or trade in it since I do not really understand about them?
The quick answer is NO – I will still take very small opportunistic bets on these cryptos. What I mean by bet = very very defined risk (as minimal loss as possible) and to consider entry only upon major retracements. Play safe, stay safe. Don’t get burnt and keep your position tight. Stop loss may not work if the volatility nature of these cryptos is second to none. Approach this game like going to a casino.
Disclaimer: This post is not an investment advice or endorsement. Please refer to general disclaimer of this blog. If in doubt – please consult with your licensed financial planner or adviser.