Ted Bauman’s Tips to Avoid Getting Burned by Cryptocurrencies
Ted Bauman states that over the last few years he has learnt a lot about the types of investors who exist in a market. According to Ted, most of the investors are careful and steady people who take out the best advice possible before making a move. This type of investors follows the advice offered at Banyan Hill and spends most of their time learning the investment environment. They have a great understanding of the risks present in any trade. The other type of investors is the gamblers who take calculated risks. A good number of them are clear on the risks associated with their actions. Lastly, there are the desperate investors who are mostly driven by panic and wish to make a huge score perhaps to rescue something for their financial neglect over the years. The latter are often attracted to cryptocurrencies and the recent days have been tough on them.
Rise and Fall of Cryptocurrencies
An e-currency launched in 2014, ether, made headlines recently when it was reported that it holds a market value almost equal to that of bitcoin. Ether is valued at $175 at the moment while the bitcoin is valued at $2,136. However, despite ether having a lower price, it holds around 30% of the whole cryptocurrency market. It was 5% in January then rose to 30% in June before crashing over the last weekend to a low of $140. This recorded a 65% fall on the record it set on June 13 of $395.
Bubble and Trouble
Ether did well due to Ethereum, which is seeking ways of developing other functions for the blockchain technology that will underlie all the other cryptocurrencies. It benefitted from the large uptake of cryptocurrencies in the past three years via initial coin offerings (ICOs). Early investors in these ICOs stand to benefit as they hope that the cryptocurrencies will appreciate in value. However, with the huge number of ICOs being announced monthly, it is hard for all of them to succeed. Ted Bauman advises investors to consider this fact before rushing to gamble their money on a new cryptocurrency ICO.
About Ted Bauman
Ted Bauman has been at the Banyan Hill Publishing from 2013. He is the editor of Plan B Club, Alpha Stock Alert and The Bauman Letter, which specialize in privacy, asset protection, low-risk investment tactics and international migration matters. Ted moved to South Africa when he was young and studied at the University of Cape Town where he was awarded with postgraduate degrees in History and Economics. He worked in the nonprofit sector for around 25 years.