100,000 new Coinbase accounts were opened over the weekend to buy Bitcoin, Euthereum, Litecoin, etc. Coinbase now has more accounts than Schwab.
Bitcoin is up about 800% YTD. Closed today at $9,250.00.
Wall Street is very busy creating products to invest in cryptocurrencies. I would suggest avoiding these products for now as the fees are over the top. Stick with Coinbase for now.
Is this a bubble? Maybe. Bitcoin has crashed 50% plus a few times but manages to rock on. So, maybe not a bubble if it keeps on getting bid up even after multiple crashes.
Who is buying bitcoin? Who knows?
I know millennials are buying it. The guy that cleans my golf clubs after a round bought bitcoin in April at around $1,500.00.
I thought about buying at $3,500.00 but my risk meter went ballistic. Damn.
So, now what? I’m not sure.
This kind of “investment” is certainly outside of my normal risk/reward requirements but…every now and then…hmmm.
I’m working up the courage to jump in. It will be an amount that I’m prepared to lose. It will be difficult to manage risk because of the high volatility so when I buy I’m not planning on selling any time soon. This is totally against my investment rules but every now and then, I guess it pays to break the rules. Just don’t make a habit of it.
Maybe we should start following the millennials.
Trade Smart,
Don