Is Crypto Pumping? What Are The Risks?

Where should we put our crypto to stay safe? How can we maximize returns?

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Tim Draper says this is possibly the greatest age in the history of the world.
It's global and decentralized and it's completely transforming the world.
How can we make a change? Angel investors have made the most money when they find an entrepreneur that enters a large industry run by an oligopoly that provides bad service at a high cost.
I'm bullish for this reason.

It's also important to consider fat tail risks.
When we consider risk on a normal distribution bell curve we fail to account for risks that are 3+ standard deviations from the mean. We become very poor at judging the possibility of these types of events happening.

What could happen with crypto and how should we be prepared?
I look at the emotions that played into the 1929 stock market crash. We can see some of those same emotions come into play when the crypto market pumps. Human emotion doesn't change, but the vehicle used to move it changes.

When the market starts to pump you feel the hype start to build. It's beautiful, but it's important to pay attention to the emotions of the market. Let's stay ahead of the crowd.

Right now there are almost 1600 coins. How many do you believe will survive? 100? that would mean that 19 out of 20 coins will fail. If we have a big shakeout, how do we prepare for that?

I play a video of the Nasdaq crash during the dot-com crash. The market lost 78% of value. Pets.com failed, but Amazon survived. Why?

Amazon had raised $600 million so they had a rainy day fund. Plus they had a great leader and a product. They kept their head above water and ended up a big winner.

What are the cryptos that you would choose if 19 out of 20 failed?
Which have the tools in place to be Amazon?
Who has money? Who has a product? Who has leadership?
Steem, EOS, ETH, BTC, BCH etc.
You need to decide. Think where do you want to put your money. What coins have the infrastructure in place to survive if the market crumbles?

I've shifted a majority of my portfolio into coins with a use case.
I'm still playing with ICOs and altcoins for high returns, but it's not my main focus.
We have enough fat tail risk and reward in crypto. We don't need to leverage into even more risk.
Just my opinion. Not a financial advisor.

ICOs are starting to be harder to get good deals. Be careful you aren't buying during the main sale.
It's my opinion that you need to be in friends and family round or a private investment round for ICOs now to be worth it.... or you may end up a bag holder for the earlier investors when you coin hits the market. Pick one of the 1500 coins already on the market and you probably have close to the same opportunity as you do with an ICO.

There is plenty more to hear and see in this vid. This is a general recap for people who like to read.

Cheers my Steem Friends. Much Love to you