Crypto Consolidation

Recently, some altcoins and tokens have been moving very slowly and right now hovering around its recent lows.  I want to talk about why this is happening and what we should be expecting in the future.  Of course this is all my personal opinion, so please don’t take this as financial advice for your own portfolios.

Ever since all of these coins/tokens made their massive run ups at the end of 2017 early 2018, we haven’t seen much movement from them at all.  When it comes down to it, some of these coins/tokens made moves that were 1000%+ which has is some serious volatility behind it.   With these massive moves comes a massive pullback and we are experiencing that the first few months of 2018.

A lot of traders were “trapped” chasing the highs and are now dealing with a lot of emotions having FUD, if they haven’t sold already.  If you were one of these individuals chasing, I’m sure it hurts and you may now not even enjoy looking at your portfolio anymore.  When it comes to such a high risk market like the crypto market, you have to really understand what you are getting into.  And if you didn’t understand at first, you need to start learning.  You should never be invested in something you aren’t educated on.

The overall trend of most coins/tokens is strikingly similar, but I believe this is just Stage 1 of the curve.  The Crypto J-Curve is a very systematic approach that takes a look at the  crypto assets market value.  It deals a lot with current utility value (CUV), discounted expected utility value (DEUV), and speculative value. It takes these values percentages and formulates the curve below.

jcurve

jcurve2

 

Looking at the different stages of the curve, we can tell we are in stage 2, because the similarities all of the charts have are stage 1.  You can look at any coin or token, they are all in stage 2 after its initial run up end of 2017.  So, stage 1 is end of 2017, stage 2 is the present, and stage 3 is looking bright for those who played it safely.  We are defiantly in a “buying zone” at the moment with this current consolidation.  I have personally scaled in on every single position I have, and continuing to look for various opportunities to buy.  We are in a slow consolidating state so be patient and understand that these coins/tokens are right where they need to be.

I just wanted to wrap this up buy giving a few tips for people HODLing these coin and tokens.  Just relax, don’t panic sell and make sure you are frequently checking your coins for updates and news.  Do not give into the FUD just because you saw one random tweet.  If you are persistent on staring at the chart, make sure you study the fundamentals too.  Take the time to look up CEOs, roadmaps, law-suites, anything that can give you an advantage.  I also suggest that you have different types of crypto portfolios where you trade with one, and HODL with the other.

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