Cryptocurrencies have been getting crushed.
In a matter of a few days, the value of the entire crypto space saw a decline of as much as $300 billion.
But if you’ve been following us in American Investor Today, you know we aren’t fans of crypto. So, you shouldn’t be worried by this pullback.
To kick off your week, we’ll unpack why…
3 Headlines for the Week:
The Markets Are Volatile, Cryptos Are Even More So
No. 1: Where Is the Crypto Turmoil Coming From?
Takeaway: The Biden administration announced on April 22 that it might propose a higher tax rate on capital gains for wealthier investors. The news sent almost all assets lower, stocks and cryptos alike.
But while stocks recovered and found their footing the next day, cryptos continued their tailspin. Bitcoin is down 23% from its all-time high earlier this month. And ether — the second-largest token by market value — has dropped more than 8%.
It’s one of many good examples of hyped-up crypto gains quickly evaporating. This shouldn’t be surprising, though…
No. 2: People Are Taking Cryptos Mainstream — Even as a Joke
Takeaway: One of the most popular cryptos is Dogecoin. Since the start of the year, it’s seen returns as high as 8,100%. Its recent peak market cap was around $50 billion. That’s bigger than companies like Ford, Marriott and eBay.
But unlike companies, which are driven by sales and earnings, Dogecoin was originally meant to be a quirky joke. There’s no actual meaning behind it or use for it. Yet, traders keep pushing it higher for no reason.
This euphoria could be dangerous when it fizzles out (see: GameStop). But there doesn’t seem to be any sign of the frenzy slowing down. In fact, companies are continuing to enable this behavior…
No. 3: Venmo Wants People to Have “Fun”
Takeaway: Venmo is a mobile payment app owned by PayPal. And on April 20, it announced that its 70+ million users would soon be able to buy, sell and hold cryptos. Only four cryptos will be available at first, but it plans to expand that in the future.
And according to Venmo’s Senior Vice President Darrell Esch, the company expects users to “share this fun experience” of getting into the crypto space. But this mindset could be very costly for investors. Here’s why…
1 Way to Profit:
Don’t Follow Hype — Stick to Your Approach
As Wall Street veteran Charles Mizrahi puts it: “If you want to have fun, go to Vegas instead.”
Your hard-earned money is no laughing matter. So, when it comes to investing, you should take it seriously.
If you want to share excitement and fun like Venmo suggests, the markets aren’t the place for you. Because your fun can turn into losses in a heartbeat.
Many crypto holders have found that out the hard way in the last few days. And you don’t want to be like them.
By blindly following hype and getting caught up in the fear of missing out, your fortunes could easily be wiped out at the slightest market shift.
So, instead, you should take advantage of America’s greatest wealth creator — the stock market — and stick to a proven approach.
Charles follows a very simple one. He only invests in companies with three things in common:
- They’re innovative leaders in growing industries.
- They have great CEOs.
- And they have great financials.
And by sticking to this plan, Charles and his Alpha Investors have snapped up great stocks at bargain prices, even in uncertain markets. It gives them an advantage while the thrill-seekers panic-sell.
In fact, Charles just released his latest recommendation. It checks all the boxes as an industry leader with a rock-star CEO and solid balance sheet.
But the best part is that this company could save countless lives. Its breakthrough technology isn’t something out of science fiction. It’s already being used today. And the sky’s the limit for its growth in the years ahead.
If you’re not an Alpha Investor yet, you’ll want to find out all the details on how to become one by clicking here right away. This is a potential triple-digit winner in the next four years. And you won’t want to miss out on it.
1 Question for You:
How Are You Handling the Volatility?
As the market uncertainty continues, we always remind you that we’re investing for the long run. The short-term wiggles and jiggles shouldn’t shake you out of your positions.
If you feel your emotions getting rattled, be sure to keep the bigger picture in mind. Stick to your approach. Don’t obsess over your positions every hour. Take a walk. Spend some time with family and friends (safely, of course).
Let us know how you’re handling the market downturns by writing in right here.
Senior Managing Editor, American Investor Today