The Eccentric Investor: Crypto round-up week 1

I have been doing something for a long time, that my parents and my friends will disapprove strongly of, buying crypto-currencies.

*Aiyo! why you buy fake money!?

Recently, as more institutional investors hold bitcoin, more and more people are looking into allocating a small portion of their money into crypto-currencies.

Hopefully my weekly round-up will help readers like you look into specific currencies instead of buying whatever is in mainstream news Ehem... Bitcoin

More investors are holding at least 1000 Bitcoin (BTC)

1000 BTC x $44,721 = $44,721,000

Well, what does this mean? It means that there is a rising institutional involvement in the bitcoin market.

Source: Bitcoin Rich List

Institutional investors are not crazy because they have millions of dollars to take care of. Which means that Bitcoin's credibility is rising like a MOFO.

Blackrock has filed a request to the SEC for a pair of funds that would offer clients exposure to Bitcoin through cash-settled futures.

Why are they buying now? Because the price of BTC fell quite a bit from it's all time high of US$41,962 and investors see it as a chance to increase their holdings on the king of crypto.

BTC Short-term very volatile

While no one is doubting BTC's long-term prospects, it's short-term performance is so volatile such that calling it a roller coaster is an understatement.

Source: CryptoWatch

That 14% spike happened at 2pm and ended at 8pm yesterday. Did I also mention that bitcoin is a 24/7 market? I will definitely not invest for short-term.

Gamestop 2.0

I think almost everybody on the seedly community has a good idea of the Gamestop drama but a few days ago, reddit investors have done it again, this time on dogecoin.

Source: Markets Insider

I wasn't kidding, this is what the coin looks like. Perhaps it was why people wanted to buy this Shiba Inu dog.

For people who got in early, got lucky. Since then it went back down leaving many burning their fingers.

This kind of gains is usually for the lucky people. Crypto is not much of a guessing game if you read the charts. The key of the game is 'resistance' both in the chart and in your willpower.

• Always look for resistance in the chart

• Always resist the temptation to buy a coin at it's peak and selling at a loss when it goes wrong

This is what a resistance looks like

Source: Coindesk

Unlike the US stock market, these kind of charts are readily available online and live for free so please do your homework before deciding on investing crypto.

Permanent feature

Here are 2 things that I will post every week

• Greed and Fear Index

• My performance

Source: Alternatve.me

Let's just say if it reaches the 90s, you should be selling and if it is in the red zone, you should be buying. This index measures the market sentiments in Bitcoin.

What I have

Definitely do not listen to me because it is quite hard to predict crypto-currencies but what I want to prove is that it is not extremely dangerous as other people have said if you read crypto-news every week.

Format: Currency - Holdings - Buy price (SGD) - Current Price - Profit/Loss

• DOT - 66% - 21.9 - 21.3 - (-2.8%)

• ETH - 24% - 1,784.91 - 1829.8 - 2.5%

• DAI (USD Stablecoin) - 10% - 1.33 - 1.34 - (-0.75%)

The market never sleeps so read the news and see you next week!