»Smart Contrarian by Equitymaster

On This Day - 16 FEBRUARY 2018
Don't Let the Crypto Bears Inside Your Head

Rahul Shah, Editor, Smart Contrarian

Dear reader,

Since the recent correction in the crypto market, a slew of negative news has come out about the space.

Not surprising, when anything crashes, the news turns sour. This only means that you should pay greater attention. You should question why everyone is negative and what that means? Is there opportunity there?

I am a deep bargain hunter when it comes to stocks, especially in my Microcap Millionares service. When a stock price crashes, I evaluate carefully what that means - is it the end of that stock, or is it an opportunity to buy?

That is the same way to evaluate any opportunity - rationally. And the same rationality should be applied to this new asset class as well.

Ask yourself... is there opportunity here? Is it right for me?

And if the answer is unclear, pay attention to what globally respected Crypto expert Tama Churchouse has to say...

To your wealth,

Rahul Shah
Rahul Shah (Research Analyst)
Editor, Smart Contrarian

PS: Find out how you can get access to Prasheel Vartak, the Cryptowallah's, free course about cryptos and the blockchain technology of the future... Click here.

Tama Churchouse

We're seeing a lot of people say, 'I told you so!'

We're also seeing the usual round of, 'bitcoin's finished, the crypto market's dead, and so on and so forth.

Now, if you're relatively new to this space and this is your first experience with a substantial crypto drawdown, then you might be alarmed.

But don't panic

As I've been saying for a while, this was expected.

December and early January were just crazy in terms of the ramp ups.

Between the end of November and early January, the overall crypto market rose at an unsustainable pace, from around US$240 billion to over US$800 billion in total market value in a matter of weeks.

So while the correction has been painful, it was what the market needed.

And it's important to understand that this is not the first correction in crypto.

If you've been around in this space for a while, you'll have seen big pullbacks of 30 percent, 40 percent, 50 percent and higher. It happens pretty consistently, and it's to be expected in a market which, as I've continued to say, is the most volatile asset class on Earth.

But every single time we see big corrections, the bears come out of hibernation.

I won't say to ignore them completely - I'm always looking for reasoned and rational bearish voices on crypto - but make sure you really parse what people say for the finer details because everyone in this space has their own agenda.

Everyone, and especially the people who have drawn a line in the sand early on and have been very negative on the crypto space all the way back from when it was US$1,000, will still be harking on the same perma-bearish news.

So keep your head and stay calm. (And if you're still worried, make sure you attend this complimentary bitcoin course.)

And as always, never invest more than you can afford to lose

That means never borrow money to buy bitcoin...or mortgage your house...or take out debt...or other insanities like that.

If you're a beginner, you shouldn't be investing any more than 1 percent of your investible portfolio into cryptos.

If you're more advanced, more bullish and more familiar with this space, up to 5 percent is acceptable.

Anything beyond that, and I think you might be wrestling with a few sleepless nights from time to time.

Good investing,
Tama Churchouse,
Crypto Guru, Crypto Confidential

PS: There is obviously a lot happening in the world of cryptos. Prasheel Vartak, with his guru Tama Churchouse, has been researching cryptos for years, and will keep you on top of the happenings in the crypto world. Join them here.

Note: This piece was authored by crypto guru Tama Churchouse and first published here.

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.

Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement

Disclosure & Disclaimer: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. The Author does not hold any shares in the company/ies discussed in this document. Equitymaster may hold shares in the company/ies discussed in this document under any of its other services.

This document is confidential and is supplied to you for information purposes only. It should not (directly or indirectly) be reproduced, further distributed to any person or published, in whole or in part, for any purpose whatsoever, without the consent of Equitymaster.

This document is not directed to, or intended for display, downloading, printing, reproducing or for distribution to or use by, any person or entity, who is a citizen or resident or located in any locality, state, country or other jurisdiction, where such distribution, publication, reproduction, availability or use would be contrary to law or regulation or what would subject Equitymaster or its affiliates to any registration or licensing requirement within such jurisdiction. If this document is sent or has reached any individual in such country, especially, USA, Canada or the European Union countries, the same may be ignored.

This document does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Our research recommendations are general in nature and available electronically to all kind of subscribers irrespective of subscribers' investment objectives and financial situation/risk profile. Before acting on any recommendation in this document, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek professional advice. The price and value of the securities referred to in this material and the income from them may go down as well as up, and subscribers may realize losses on any investments. Past performance is not a guide for future performance, future returns are not guaranteed and a loss of original capital may occur. Information herein is believed to be reliable but Equitymaster and its affiliates do not warrant its completeness or accuracy. The views/opinions expressed are our current opinions as of the date appearing in the material and may be subject to change from time to time without notice. This document should not be construed as an offer to sell or solicitation of an offer to buy any security or asset in any jurisdiction. Equitymaster and its affiliates, its directors, analyst and employees will not be responsible for any loss or liability incurred to any person as a consequence of his or any other person on his behalf taking any decisions based on this document.

As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

Equitymaster Agora Research Private Limited (Research Analyst) 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407