Crypto Winter Enters Its 3rd Year.

Crypto Winter. Author: edwinchuen. Wiki Commons. Used with permission.

Crypto Winter Enters Its 3rd Year.
 
 
A lot has happened since Bitcoin hit a high of $69,000 on Nov. 9, 2021.
 

• FTX is kaput,
• SBF is in jail and will be sentenced (for life?) on March 28, 2024,
• Binance will pay a $4.3 billion fine for money laundering and other criminal charges, 
• CZ, the former CEO of Binance, will be sentenced for his role in the shady shenanigans on Feb. 23, 2024, and,
• Bitcoin is still down by almost half, at $37,079/coin.

 
What have we learned from this?
 
Don’t Go All In
Rebalance
Is Crypto Really a Safe Haven?
Is Your Cash Really FDIC-Insured in a Brokerage Account?
Will CZ Go to Jail?
Bitcoin ETFs
 
And here’s more information on each point.
 
Don’t Go All In
We should never go all-in on any one asset. Diversification is key, no matter how good the story is. At our retreats and in my books, I encourage investors to think of cryptocurrency as a hot slice or two of their overall wealth strategy. Below is a sample pie chart based upon a 30-year-old. You can personalize your own pie chart using our free Web App. Email [email protected] for a link to it.
 

For context of how our pie chart system works, read The ABCs of Money or attend our online Financial Freedom Retreat. Email [email protected] for more information.

Rebalance
The pie chart system with regular rebalancing prompts us to capture gains at the high, and buy low in the crypto winter (if you still believe in it). Although HODL was popular when crypto was high, few were adhering to it. The average holding time of Bitcoin, Ethereum and Cardano in 2021 was under 90 days. Even today, when investors are frozen from the long period on crypto ice, Bitcoin’s average hold time is just 101 days.
 
 
Is Crypto Really a Safe Haven?
It’s essential to know what’s safe in a world where crypto values are still down by almost half, 4 U.S. banks failed and bonds lost more than stocks. Safe assets are supposed to protect our principal investment. Currencies are not supposed to be worth $69,000 one year and just $37,000 the next. Imagine if the dollar or euro did that! (We spend one full day on What’s Safe at our New Year, New You Financial Freedom Retreat.)

Is Your Cash Really FDIC-Insured in a Brokerage Account?
As we learned with the failures of Blockfi, Voyager Digital and FTX, FDIC insurance covers failed banks, not brokerages. So, even if the brokerage has a cash sweep program with an FDIC-insured member bank, if the brokerage fails, the cash is not FDIC-insured. Below are blogs with in-depth reviews of getting your cash as safe as possible.
 
Is Your FDIC-Insured Cash Really Safe?
https://www.nataliepace.com/blog/is-your-fdic-insured-cash-really-safe-better-double-check#/
 
Bonds. Banks. The Treacherous Landscape of Keeping Our Money Safe.
https://www.nataliepace.com/blog/bonds-banks-the-treacherous-landscape-of-keeping-our-money-safe#/
 
Monero. Crypto. Cash. BRICS.
Videoconference.
https://youtu.be/c0Ib__YTaBU
Blog
https://www.nataliepace.com/blog/monero-a-token-of-trust#/
 
 
Will CZ Go to Jail?
According to a court filing, Changpeng Zhao’s sentencing is scheduled for Feb. 23, 2024. Speculation has it that he’ll serve under 18 months. The U.S. Department of Justice noted in its filing today that they could argue for up to 10 years. DOJ officials consider CZ to be a flight risk, particularly since the UAE doesn’t extradite to the U.S.
 
No doubt, there will be high drama in this case over the next few months. In the meantime, CZ resigned as CEO of Binance on Nov. 21, 2023. There are other terms to his agreement. Binance will pay over $4.3 billion in fines.
 
Bitcoin ETFs
Financial services companies have had a rough year. Many have low credit scores. So, it’s important to purchase your funds from a company that has a strong credit rating, has been around for a long time and is well capitalized. These are just a few of the reasons why we don’t want to purchase our funds from companies that just started up recently, or others that might be trying to hop onto a hot fad. Before you purchase a Bitcoin ETF, know the company that is offering it. If we’ve never heard of the company before, we’ve got a thousand-piece puzzle to complete on that enterprise before we should buy their pitch. If we can’t find the company’s credit rating, it might be best to just say, “No.”
 
Bottom Line
Cryptocurrency is not a stable currency yet (unless you’re laundering money, working in the Black Market, or trying to get around sanctions, and care more about the transaction than the stability of the value). Cryptocurrency is still mostly a trading platform.
 
There is still a lot of fraud in this space, from FTX in 2022 to the Trade Coin Club ruse launched by Joff Paradise that we warned our readers of on June 25, 2017. You might be lured in by a celebrity (like FTX had), a cool name (like Monero), FUD of the U.S. dollar (like original Bitcoin buyers were), or a billionaire (like CZ). However, if you’re not willing to trade the coin (buying low and selling high, like the whales are doing), then you could end up HODLing a lot of losses – for years.


Join us at our Jan. 13-15, 2024 New Year, New You Financial Freedom Retreat. Learn nest egg strategies, how to get hot and diversified (including in EVs, crypto and AI), and what's safe in a Debt World. You'll even discover how to save thousands annually with smarter big-ticket choices. Yes, it's a complete money makeover. 

Email [email protected] to register. Learn the 15+ things you'll master and read testimonials in the flyer (link below) and on the home page at NataliePace.com. Register by Nov. 30, 2023 to receive the best price. ​

Many people, including educated men and women, often get into trouble when they neglect to follow simple and fundamental rules of the type provided [by Natalie]. This is why I recommend them with enthusiasm." Professor Gary S. Becker. Dr. Becker won the 1992 Nobel Prize in economics for his theories on human capital 

Join us for our Online New Year, New You Financial Freedom Retreat. Jan. 13-15, 2024. Email [email protected] or call 310-430-2397 to learn more. Register by Nov. 30, 2023 to receive the best price. Click for testimonials, pricing, hours & details.

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Natalie Wynne Pace is an Advocate for SustainabilityFinancial Literacy & Women's Empowerment. Natalie is the bestselling author of The Power of 8 Billion: It's Up to Us and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 5th edition of The ABCs of Money and the 2nd edition of Put Your Money Where Your Heart Is were released in 2021. Follow her on Instagram. 
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Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden.​

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Important Disclaimers
Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations.

ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience.  

Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.