Sioux Falls’ CoinLion weighs in on recent volatility in cryptocurrency

Your Money Matters

SIOUX FALLS, S.D. (KELO) — Cryptocurrency has been a growing topic in the financial world for a little more than a decade, but recently the fast-growing industry took a significant dip.

“We focus on auto trading within the Cryptocurrency space,” CoinLion CEO Eric McDonald said. 

CoinLion is a Sioux Falls based crypto trading company designed ‘for people who have no idea what they’re doing’.

“We try to make this as simple as possible because crypto is a little confusing, so we spend a lot of time white gloving this, so people know what they’re getting into,” McDonald said. 

Part of that is understanding that you’re entering a routinely volatile investment space.

“Every month for the last six months, you see a large pull back, sometimes it’s 17 percent, sometimes it’s 30 percent,” McDonald said. “We saw recently a pull back of about almost 50 percent over the course of 12 days. So from my perspective, that’s not a surprise. It’s almost like clockwork. Every three weeks you see crypto have a strong pull back.”

But even with the recent drop, he says Bitcoin and Ethereum, the two main forms of Cryptocurrency, are still growing.

“When I say it’s pulled back 40 to 50 percent, if you look at what it’s done year over year, it’s still up about 300 to 400 percent. It was up about 700 percent, now it’s only up about 350 percent, still really good,” McDonald said. 

While some are waiting for the time a crypto dip won’t recover, McDonald believes this type of decentralized currency is here to stay and will only grow in the future.

“When you see a dip like this, you get two reactions, one is of panic, I’m going to sell, or this is my opportunity I’m going to buy in, this is a great time to be buying, in my opinion,” McDonald said. 

While McDonald says clients aren’t pulling their 401ks or IRAs from the traditional stock market, he says many large financial firms like PayPal and J.P. Morgan are now investing in cryptocurrency, which is helping to decrease the risk of the growing market.

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