How are we supposed to handle the year in the world of cryptocurrency investing?
Before I proceed I'd like to point out that these are all just opinions and could be completely wrong.
A good start would be to make out a lot of time to research and get as many perspectives as possible especially from the prominent minds in the crypto ecosystem. Doing this for the past few weeks, I discovered the major school of thoughts regarding where we're heading for the year.
The complete crypto bears are of the opinion that we're around the top of the market now and it's only a matter of time before we see a significant crash in the market. This won't be the subtle 20-50% like we've been accustomed to in 2017 but actually a serious 70-90% kind of crash. If you want an example of that kind of perspective go and watch one of Marc De Mesel's recent videos on YouTube.
There are other people who believe that what we're seeing with bitcoin now is a temporary pause; a moment for bitcoin to stop at the gas station before the next moon shot. If you want to gain that sort of perspective then you might want to check out Parabolic Trav on Twitter. He's very experienced and knowledgeable about this market and he believes that bitcoin is still very much in the middle of an upward parabolic trend which could still lead to unbelievable prices over the next few months
The third major perspective are those who believe that we're at the beginning of a major altcoin bull run because bitcoin had its few months in the spotlight and went up a tremendous amount. They believe it has run out of steam at this point and would be on a sideways trend just like we saw in Q1 2017. Richard Hart is one of those with this perspective and has been talking about how all the hard forks, segwit2x drama and hype about CME futures being launched saturated bitcoin. With that being said, there's nothing in the immediate future that anyone could really get hyped about in any way. He and many others think that people will begin to turn their attention from bitcoin back to Altcoins where they can chase some crazy gains.
CONCLUSION
If I were to align myself with any of these perspectives regarding what we'd see in the next few months, it'd likely be the third one. We'll likely see all the money, hype and attention flood towards the altcoins. It also may not matter too much whether these projects are any good or not as long as they can sell a little bit of hype and do a decent job at marketing. According to crypto experts, it's usually a sign of the end of a market cycle when the weaker projects or 'shit coins' , like they are popularly called in the crypto space, are booming way above normal. This might go on for a few months after which a significant crash might follow. In order to be mentally prepared for whatever comes, it'd be wise at this point not to be over vested but enjoy this good time while it lasts.
What's your perspective and which school of thought do you think will win?
Disclaimer:This post should not be taken as, and is not intended to provide, investment advice. Always do your own research.