jJust when you thought all the worst things that could happen in the crypto space had been done, things have gotten worse again depending on how you look at it. After watching Terra Luna and then FTX drop you would think the worst is over and you would be pretty much sitting around buying and holding until the next halving.
Mistaken.
This is how this market works.
There is never a perfect time to invest, but there is never a perfect time not to invest.
So you're damned if you do and damned if you don't.
There are three issues you need to keep in mind. It's more than finding the next cryptocurrency to go to the moon in the next cycle.
And this is also not detecting the bad cryptocurrencies that exist because they are there.
You have to ask yourself, how can the 25,740 cryptocurrencies that are currently active on Coin Market Cap do anything in this space?
At most, you could probably narrow the number down to 50-100 cryptocurrencies that have a true purpose. Maybe there is more or maybe there is less.
I'm not here to discuss that. Can someone else give you an answer.
What you really need to do is look at three things that are really driving this market.
You can't do anything with the whales. They are running their own game and making moves however they see fit.
But there are three other things that you can easily see to make your own decision.
The three are politics, the Securities and Exchange Commission (SEC), and you.
There are those in Congress who are still trying to understand cryptocurrencies. So there are some who would like to see Bitcoin (BTC), go to zero.
And then you have politicians who support this movement. They see the purpose and understand the need to pass a regulation to help this industry.
Wisconsin Senator Cynthia Lumas has worked tirelessly to get crypto legislation passed to help you.
He also has Rep. Tom Emmer from Minnesota who is working to support him in this political fight.
There are others, but getting bills through Congress is never easy.
Just look at the cryptocurrency companies that have tried to get their Bitcoin ETF approved. All have failed anywhere close to gaining approval.
This relates to the following...
When former MIT professor Gary Gensler was hired as chairman of the US Securities and Exchange Commission, many thought he was going to help the cryptocurrency community. Gensler taught the Blockchain and Money course. If he hasn't seen the politics lately, Gensler has really hurt the community.
last week declared 11 cryptocurrencies they were stocks that pushed those currencies down 20-30% and sent the market into a frenzy. This created a lot of confusion for investors.
Should you sell cryptocurrencies?
Or should you buy more as prices drop?
Even savvy investors are not sure what the future holds for these cryptocurrencies.
Gensler's thinking on the crypto market has not been clear 100% of the time. He was recently questioned by Congress because he avoided giving an answer on whether Ethereum was a security.
In the past, Gensler said Ethereal (ETH) was a security and now it has taken time to give an answer.
This only causes more confusion for politicians and investors alike, since you can't give anyone a straight answer.
There is a lot of fear, uncertainty and doubt. This has been a common theme in the cryptocurrency market since Bitcoin was created for the first time.
There is no clear answer as this market is still very young compared to the stock market that has existed since 1790 in Philadelphia.
Regulations were passed to support the stock market. But the cryptocurrency market is similar to, but clearly different from, stocks, making it difficult for politicians to understand.
On top of that, cryptocurrency companies are confused by the guidance released by the SEC.
Coinbase's Brian Armstrong told Gensler that the organization followed the guidance they were given when they applied to become a company in 2021. Coinbase is now being sued by the SEC over its staking program and was operating as an unregistered brokerage firm. .
Gary Gensler saying:
โWe allege that Coinbase, despite being subject to securities laws, illegally mixed and offered exchange, broker-dealer, and clearinghouse functions,โ said SEC Chairman Gary Gensler. โIn other parts of our securities markets, these functions are separate. Coinbase's alleged failings deprive investors of critical protections, including rule books that prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine scrutiny by the SEC. Furthermore, as we allege, Coinbase never registered its staking program as a service as required by securities laws, again depriving investors of critical disclosure and other protections.โ
On top of that, the SEC also sued Binance, the world's largest cryptocurrency exchange one day before going after Coinbase.
Executioner saying:
"Through thirteen counts, we allege that the Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, non-disclosure, and calculated evasion of the law."
Lawsuits may not be resolved for days or even months. They could take years.
Gensler recently said that he would reply to Coinbase in four months after being asked some recent questions.
Well, it is unlikely that all cryptocurrencies will go to zero. Gensler has not commented on Bitcoin, Etherealand thousands of other cryptocurrencies.
There are too many cryptocurrencies for the SEC to review and sue exchanges for supporting these cryptocurrencies.
The SEC may hurt some cryptocurrencies, namely the ones Gensler highlighted last week.
If you compare them with Vibe (XRP), this court case has been going on for two years and there are no clear signs of when it will end.
During this time, the XRP price has not gone to the moon as investors would expect.
So, I see the same thing for the 11 cryptocurrencies that Gensler pointed out. I don't expect the price to take off any time soon, so I sold the few cryptocurrencies I had, which he pointed out.
Before this bull run started, I said several times that I would not go crazy and load up on altcoins.
The main two I have are Bitcoin, Etherealand Shiba Inu (shib). They make up 90% of my cryptocurrency portfolio.
I previously mentioned my cryptocurrency game plan about what I will do after the Bitcoin halving. I do not plan to keep my crypto forever.
I want to move them to other assets that produce cash flow.
You see, before I got into cryptocurrency, I was a real estate investor for much longer than my time in this market.
Holding on to cryptocurrencies is fine. You can still earn passive income by staking your coins. But with real estate, you also get tax deductions that cryptocurrencies don't provide in the same way.
Figure out your game plan, exit strategy and execute it ASAP.
What do you think about the current state of the cryptocurrency market?
