Crypto Currency investing — The great Ripple down of common sense
There are no short cuts to making money
February 1, 2021 will definitely go down as a day where many first time investors in cryto currency learnt an invaluable lesson, no school can teach. There are no short cuts to making money. Money in stocks or crypto has to be made in a systematic manner with a regular investment discipline and understanding the dynamics behind the stock or crypto you wish to invest in.
Since 31st January, 2021 , there was a buzz going around in various investment channels that a Telegram group of more than 200,000 users were going to pump up the price of the Ripple crypto. There was talk on reddit and other investment channels that Ripple, with cryto code , XRP, was going to be pumped by to $1 by a big group of buyers who would start buying the crypto starting 8.30 am EST , US time.
Excitement could be seen in various channels on Telegram where first time investors were trying to find out how to buy the crypto while many others who had bought in, were talking of the crypto price going up-to $4 or $5 and even to a figure of $140. It was being spoken of as the next currency which the world would be dealing in. The US dollar was on its way out. As the talk of the buy and hold strategy was been discussed, the graph of XRP would be seen edging up . From a 20–25 cents, it had been languishing at for so many months, the price was slowly upto 50 cents. The talks were getting more desperate. Keeping up to the comments on the telegram channel of about 150 a second was becoming impossible. The coutdown to 8.30 am was being counted down every second. Newbies were hearing talking of the whales and the seals first time in their life’s and trying to come to grasp with what it meant. Six hours to the 8.30 am deadline and the price was at 75 cents a cryto of XRP.
“Buy and Hold“ was the only word each and every investor was talking about. “We will take it to the moon”. The craze which the Gamestop stock had garnered a few days ago seemed to have made many realize that they had missed the boat and this was the god sent opportunity to make up. Doomsday naysayers were being asked to keep quite and many were requesting the admin to ban users who were talking about the price going down to junk status. No one cared that the Supreme court of the USA had banned the trading of Ripple and the future of the cryto was so very uncertain.
Meanwhile the crypto was now holding its ground and hovering between 65 to 70 cents. The newcomers were being told that the whales were getting in and trying to push the price down so that they could buy it at a lower price and then gain when the price crossed $1 or $5 or $140 whatever it was going to be. “Buy and Hold “ was being proclaimed as the biggest strategy in investment and anyone commenting about having sold their shares and actually making a profit were being termed tratiors.
The wonderful hour of 8.30 am arrived and even before the crowd could proclaim god as their saviour, the candle turned a big red, downwards. The price was stumbling down. 65 cents, 60 cents, 55 cents, finding some resistance at 47 and finally settling down somewhere around 35 cents. What a ripple, the crypto had caused in just 12 hours. From a daily gain of up 65% , it was down 40% from its opening price of the day. As I surfed through various channels, I could hear and feel the despair of so many. Gone were the dreams of that boat, or a down payment of the house and many still did not grasp what had happened. They were still hoping for a miracle and still shouting down the experts who had all along predicated as to what would happen at 8.30am.
As I write this article 24 hours later, I still see belief amongst so many that things were going to change. A new date of 22nd February is being spoken about, as to when the price of Ripple would finally go through the roof. Not sure as to who is to blame for causing a loss to so many novices, but common sense was lost and greed won over everything on that date. To the rest of you who were not even aware of this great event, you just got plain simple lucky. The official Telegram group of the “Buy and Hold XRP “ did issue an official statement a few hours ago that their only purpose of creating the channel was to create awareness about the crypto Ripple and nothing more. They did succeed in doing that.
This article is not intended to make fun of anybody or look down at anybody but a reminder to self to stick to the basic principles of investment, always. I will also put it out there — I did lose $100.
