You are probably familiar with the terms Elon Musk and crypto. The former, the founder of Tesla and SpaceX, Elon Musk, recently made headlines for his attempt to purchase the social media platform, Twitter. The latter, crypto, is one of the biggest investment and tech crazes of the 21st century. “But what do they have to do with one another?” You might be asking. In this article, we’ll take a look into the world of cryptocurrency, and explore some of Elon Musk’s crypto trading habits.
Ironically, Musk once broke headlines for a viral social media post on the platform he would later go on to purchase. In his tweet, Elon mentioned his interest in crypto, and in particular the cryptocurrency DogeCoin. This alone is not particularly interesting, but when you examine the results of this tweet it becomes truly fascinating. But, let’s start at the beginning.
What is Crypto?
Before we get into the world of the Tesla CEO turned international talking point, we first need to understand what crypto is. If you are already knowledgeable about the world of cryptocurrency feel free to skip this section. But if you, like many others, aren’t totally sure why crypto matters, don’t worry, we have you covered.
In the simplest terms, cryptocurrency is a form of virtual currency. The virtual currency cannot be counterfeit or duplicated and is not under the distribution of any one central authority. This effectively means that the currency is completely secure from any sort of government influence. Cryptocurrency allows users to make secure financial transactions online and can allow for trading across borders. It is currently too volatile to be effective in most retail settings, but eventually, the goal is for cryptocurrency to become commonplace in society.
Speaking on the subject of volatility, crypto is currently a massive investment market for many consumers, Elon Musk included. Perhaps you know the story about the guy who spent what amounts to 300 million USD in Bitcoin on a couple of Papa John’s pizzas? Despite this guy’s unfortunate decision, many have seen massive financial profits thanks to crypto investments. In fact, many would say that the rise of cryptocurrency has made more millionaires than anything else in recent history.
Cryptocurrency investments come with great risks, but also with the opportunity for massive rewards. Perhaps by studying the habits of massive market influencers, like Musk, we can better understand how to take advantage of the crypto currency marketplace.
Elon’s Crypto Portfolio
The first thing to examine when looking into Elon Musk’s crypto trading habits is his portfolio. There are almost endless options for cryptocurrency, so it may surprise you to note that Musk only owns three variants. Bitcoin, Ethereum, and DogeCoin. You would think that one of the largest names in crypto would have a more diverse portfolio, but the Tesla CEO has only publicly spoken about owning these select few.
One reason for Musk’s small number of crypto investments may be the market’s incredible volatility. By owning a wide array of crypto you open yourself up to a lot of risk in a widely swinging market. It may in fact be better to operate with only a select trustworthy few.
Bitcoin for example is probably the most dependable example of cryptocurrency. With millions of investors backing the currency and name recognition, Bitcoin is the most secure crypto investment. However, as many from previous years will tell you, even that market is unstable. Prices and values can swing wildly on a day-to-day or even hourly basis.
Ethereum is another similar example in which it has a large following and a recognizable name at this point. DogeCoin however is somewhat of a pet project for Elon. The hype surrounding DogeCoin really all starts with an Elon tweet, as we’ll examine next.
Musk is A Market Whisperer
Perhaps what is most interesting about Musk in the crypto world is not his trading habits, but his influence on the market. To elaborate further, one such example came back in April of 2021. At the time DogeCoin was trading for around 5 cents per. Queue an Elon Musk tweet regarding the cryptocurrency and next thing you know DogeCoin is trading at 75 cents. That’s a 1500% increase in value in just one day. Early owners of the cryptocurrency profited massively thanks to Musk’s influence on the market, and this is just one example.
One of the craziest things about Elon Musk is the platform he has built. As one of the top minds in the tech and science fields, Musk has given massive access to his life. Whether it be through his Twitter profile, celebrity appearances, or appearances on podcasts like the Joe Rogan Experience.
Musk has given unprecedented access to the life and mind of one of the world’s top brains. Because of this access he has built a huge following. This means that when he shares his financial opinions, the market can shift massively as a result. Whether you like him or not, it’s important to understand Elon Musk’s crypto trading habits.
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