Coinbase is literally the only exchange that I trust now, so I am very comfortable having Coinbase as the largest position (will be too 4 when a couple other catch up) in my portfolio. I’ve used a dozen wallets and exchanges, centralized and decentralized in the case of exchanges. Binance is crooked, Voyager filed bankruptcy,
Crypto.com is my primary trading account/wallet combo, Kraken & Gemini are the only other exchanges I keep money now (outside Coinbase), both U.S. & more transparent that most exchanges. Just the fact that Coinbase is a public company & the SEC will demand more transparency than we have with any other exchange, makes me more comfortable in my position.
If anyone was going to start dabbling in crypto, I would take that advice. I don’t think it’s a coincidence that the U.S. exchanges are not filing bankruptcy, they are held to a different standard than some. I found exchanges & wallets who were domiciled in Malta, the Cayman Islands, and other tax havens where you’re not even able to invest without blocking your IP address so they can’t tell you’re in the states. People playing there were asking for trouble.
I don’t think crypto is nearly as risky as everyone seems to believe it is. As it is with Buffet disciples, I see risk as a lack of knowledge, not price volatility. So the volatility doesn’t scare me. As soon as I got in, I could see that this industry was dominated by traders and algorithms. The price swings are 30%-120% daily, for reputable projects. So I think the opportunity that exists for value & fundamentals focused investors is even larger in the crypto space than the stock market, if you can find the actual projects that are worth investing in. And if you believe that the market is a voting machine in the short term, and a weighing machine in the long term; it’s even more lopsided in the crypto Industry.
Again, this is most definitely the speculative part of my portfolio. I’m not a Blockchain professional or technology analyst. I’m just a guy with a brain that downloads all this and tries it. If it’s useful, adoptable, easy to use, has real world use case,& provides safety of capital/transparency (in the case of wallets & exchanges), then I think it’s a relatively safe bet to see adoption in the future.
I expected all the new traders to flake out of Robin Hood at the first crash, and that is exactly what happened. The same thing happened with E*TRADE & retail investors back in the day. I’m not sure why this was such a surprise. When a bunch of people jump in and start trading cryptocurrency‘s, options, and with margin; that is not going to end well🤣
Use your brain, both sides. This is an art, not a science. If it was a science, everybody with an algorithm would be winning.