And here we are. A healthy recovery I would say. Staying around $40k for a little while shows that we most likely might establish a new base level here. As some have forecasted that we might be hitting $20k, I think we are miles and miles away from there. To me it is more likely that we are soon going to see $50k than $20k or even $30k. Even the little dip yesterday from $40k to $36k was defended very well.

That is why I am really hesitant to stake my coins even for a couple of weeks as we know how quick things can turn around and crash hard. You don't want to have your coins staked unless it is a coin that you really know well and trust in its recovery. Having your coins stuck can mean huge opportunity cost. That really must be considered when doing your calculations for rewards from staking your coins.

Not sure if money is really flowing around the way you describe it. I rather think that more and more money is entering the crypto markets as a whole, with some of it also going into NFTs. As for NFTs I very often read its connection to games, but there are far more applications for NFTs than just games. Beyond that I think we will see a wave of innovative products even over the course of the next 12 months.

That is a big problem in my opinion. A product like Tether and the company behind it should be obliged to frequently provide a full audit report about the reserves that are supposed to back USDT 1 to 1. We are not talking about a stable currency that is handling a few million USD volume per day. We are talking about a massive product/market that could cause enormous harm to the whole industry if something goes wrong or if mistrust arises. I have no idea whether there is really a dollar for every single Tether.

I wouldn't go with too many different alt coins unless they are based on Ethereum or Binance Smart Chain. Then you can at least use metamask wallet, which is very practical with the option to switch back and forth between the networks. As for the different products you are mentioning, there are more copycats out there than genuinely coded features into newly launched coins. Most of those coins don't bring anything new to the table at all despite a different maximum supply...

Right, most of the projects aren't much more than a fancy white paper. They all claim to be the next Bitcoin or to change the whole world, but most of them can hardly get their main net up and running. Yet they manage to raise money based on their white paper. The worst is that even the white papers are sometimes plain copies from other projects. That phenomenon will stay with us and in a few years from now we might have 100,000 cryptocurrencies with 99% of them being worthless.

I have no idea whether this ever changed but as far as I can remember there have never been official reports about the fiat currency reserves that are supposed to back USD Tether in real banks. I think they were once forced to conduct a full audit, but I am not sure if they were obliged to publish the report. Anyway, Tether isn't risk free given the fact that they have stored their money in real banks and they claim that for ever USDT out there, there is also a dollar in a bank. Who knows whether that is true or not. I can't verify it and others can't either.

Yes, if you go for the bigger market cap coins with a positive history, outliers aren't a problem. Those coins can of course also drop in price sharply, but they will return back to normal. That might be very different for low market cap coins that after dropping sharply in value just die subsequently or don't recover fully ever.

Because non-fungible tokens can't act as a currency at scale. NFT is a niche on its own that will prove valuable in all sorts of areas, but it will still have the character of a collectible or an equity title or something similar. Currency needs to be fungible in order for it to work at scale.

Ok but still the biggest risk is if the underlying that you are staking drops significantly in value. That can happen anytime theoretically. Are you staking or farming coins and locking them even for several months thereby increasing your volatility exposure or are you preferring shorter periods of time?

There are also all those different conditions involved. Others might have more or less money than you. Some may have more risk appetite while others are more cautious and there are dozens of other factors why it doesn't make sense to ask for advice elsewhere instead of considering your own situation carefully and make decisions accordingly.

Maybe "utterly" centralized is a tiny little bit of an exaggeration as they do have 21 validators. What I don't know though is how the geolocation of those validators is distributed and whether they also frequently change or are fixed (for a fixed period of time?)? I haven't been reading enough about it to tell whether collusion between validators could ever be a serious threat or whether there are any counter measures in place. 21 is still a very very low number compared to a decentralized network like Ethereum, but it is at least not a one man show as it is with real centralization.

Short answer: too much of my capital!

Long answer: Everyday new opportunities pop up and it is hard to hold back and stick to the plan. Indeed you don't want to miss out on anything, all the DeFi stuff, the standard coins, the news you read and the papers you study. I probably have too much in crypto, but it is quite well spread out over all different types of coins, including a few gambles with a small part of my portfolio.

If anybody here now tells you a price target, would you just blindly trust that target? I think you probably (hopefully) made some considerations as to why you bought Trop in the first place. What was the goal you set back then and why did you set it? Sure it is possible you just bought for fun without thinking about it at all, but that's almost always ending badly at some point certainly.

But I wonder is farming really worth it? Or providing liquidity? Isn't it quite dangerous to ultimately lose money because the staked coins or the coins you use for farming get dumped and decrease in value anyway?

You couldn't be more vague saying that you believe the crypto market is in a bubble. If it is now in a bubble, it obviously was in a bubble when Bitcoin was at $65k as well. So what do you think should the price of Bitcoin be such that you think we might have left bubble territory? I would rather say that we were perhaps in a bubble when we peaked, then we had the correction and now the market is trying to figure out the right way to go.

I would not say it is the new Ethereum. The question is like asking "is Ferrari the new Jeep?". For now it seems BSC is the better choice as there are no obstacles, no issues arise and Ferrari does just fine. But what if we get into shallow waters or hilly areas, would you want a Ferrari or a Jeep? The financial crisis gave reason for Bitcoin to emerge at the right time in the right environment. People started understanding why Bitcoin does make sense. Now they slowly but surely tend towards using more centralized architectures again. But only until the next lesson happens. I am not saying BSC is going to fail, but it is part of a process to strike the right balance for the world we are living in right now and the conditions it depends upon.

It's like Fukushima when right afterwards the whole world started discussing ending nuclear energy consumption and push for renewables. Or let's wait until USDT Tether implodes and people will never touch a centralized stable currency again, at least for a while. Ethereum is the Jeep, and a Jeep has its merits, but maybe not right now.

Below 2000? What below 2000? Are you talking about low market cap coins when a coins is worth less than 2000 USD? Is DOGE low market cap to you? I feel you are completely misunderstanding the concept of market capitalization. That is the valuation of a network or a business as a whole divided by its respective number of coins / shares...

Forecasting tools may have value when you are trying to predict the weather (and even there they are more often than not quite bad depending on the time horizon of course), but in markets forecasting tools are problematic as they never catch the critical outliers that can destroy your investment totally. The reason it sometimes works is because everyone uses the same tools and they function like a sort of shelling point then. That sets free a herd movement towards that new price point. The question then becomes who chooses the smartest spot to sell before everyone else takes the opportunity.

The price gap plays absolutely no role. What was the price gap of DOGE to BNB when DOGE got so close to BNB? What counts is the market cap and that gap does actually matter. I must say if there is one coin out there that I think could realistically get close to Bitcoin right now, it is Ethereum if they get to solve their scalability problems in the near future. Although I don't really believe that that will happen, if I had to choose one coin that could do it I would answer Ethereum.