Cryptocurrency is tough. It is not easy to deal with markets and this one is on steroids. Due to the market size, it is apt to see wild swings, far greater than you see in equities or even commodities.
For this reason, it takes strength and fortitude to hang in. Those to try to time the market need the proverbial b*alls of steel. It is not a game for the faint-hearted.
It is hard to see bubbles. This is a situation that is usually compounded by some group of people calling things a bubble from the very early stages. Too many have opinions about things and usually those are the ones with a pulpit to espouse their ideas. The challenge is they usually do not have money in the game.
Nevertheless, it is up to us to sift through what is taking place. Often a long term view is helpful but the asset class (or individual security) has to be worth it. Having a long term view of something like Sears Holdings is probably not going to work out too well since that company is headed for bankruptcy at some point.
One thing we can do is to avoid the crazes, especially in cryptocurrency. Recently, we saw the introduction of something entirely new, NFTs, which sent off a firestorm. This was accompanied by a huge run up in activity as well as the pricing for many items that people put out there.
Before going any further, we have to make clear that NFTs hold great potential. When it comes to digital ownership, this tokenization process really nails it. That does not mean, however, that everything created is going to have value. In fact, most of it is near worthless.
Those people with large followings, they will do very well with NFTs. Celebrities have enough people who are "fans" that they can put out a NFT and not only will someone buy it, it will have resale value. Someone like Lebron James can clean up in an environment like this.
The same is not true for the average Jane or Joe. These people have very little following, a fanbase of near zero. This means that even if the NFT is sold, the one who purchased it will not find much of a market. Of course, there always could be the exception of the artist who does wonderful work and does find a large following down the road. In that instance the person was ahead of the curve.
As we can see from the following data, the NFT market went to hell very quickly. As soon as Bitcoin started its major pullback, the air went out of the NFT world.
According to the article which is linked to the above image, sales of NFTs dropped 90% while wallets took a 70% dive. That is a major change in how the landscape looked just a month ago.
Again, this does not mean that things will not bounce back. They will, at least to a degree. The difference is a bit of the mania was sucked out of this world and will take a long time to come back.
There will come a time when a fund like 
A great deal of SPInvest's success is due to the fact that, while some risk is assumed, we tend to avoid those manias and jumping on the shiny new thing. This is where many people get sucked in. Some get out early with a major profit but many are stuck riding things down. That is never a good thing for one's return, especially if they are in something that will not bounce back.
We must always keep in mind that success comes from investing, not gambling.
Article by taskmaster4450.