Why do people believe in cryptocurrency and how to make money in a falling market
A Life / / December 19, 2019
Alex Reinhardt
Serial businessman, A venture capitalist, business development expert, co-founder and CEO PLC Group AG, Switzerland.
By December 2017 the market was overheated rumors and speculation about the future of Bitcoin. Every day there were new projects that promised blokcheyn introduction of technology in various spheres. The market was waiting for exemptions from the SEC (Securities and Exchange Commission and Exchange Commission) and new opportunities for fabulous earnings. All were full of optimism.
People believed that bitcoin will grow constantly, and he began to grow. Once started double and unwarranted growth, it could not be stopped. Everyone wanted to jump in the rocket that will carry it into a paradise for millionaires.
Bitcoin course: where it is taken and where lost
The explosive increase in the rate was triggered by an irrational belief of people and ignorance of the laws of the market. The thirst for quick kills and entailed an incredible growth of Bitcoin.
It is important to understand that all market-based instruments has its own laws, its life cycle, the fundamental causes that affect the price.
The growth of Bitcoin was originally planned for subsequent speculation. As soon as he reached the peak, the big professional players began to sell. They were followed by intermediate level players. Meanwhile, "kriptohomyaki" On the contrary, waiting, hoping for a miracle and as a result have lost everything.
Do not drop, and the correction kriptorynka
When skeptics say that Bitcoin course was to bring down deliberately, in this there is some cunning. Let us look at the facts: when compared to August 2016, current price several times higher. If we look at the course 2014–2015 years, and compare with the current values, then the situation becomes even more significant.
Those who want to professionally deal with investments, you need to look at the market in the long retrospect and prospect. Then it becomes clear that there is nothing special about today. Year after year, everything goes according to the same scenario. Grow first, then the price adjustment, and then bounce back.
I am optimistic about the prospects for market development. A huge potential for growth rate.
The main reasons for the high volatility, ie rate volatility - speculation and low demand. Yes, yes, low demand, which is due to a limited number of users kriptoindustrii.
Thus, according to a studyWhy have not we all bought cryptocurrency yet?, Only 8% of Americans own cryptocurrency, and in the world, the figure is less than 1%. According to various estimates, the world no more than 25-30 million people use cryptocurrency, and they created a capitalization of about US $ 300 billion. It is negligible.
Irrational and rational: why would grow kriptorynok
Blokcheyn technology are increasingly penetrate the different spheres of our life, and the number of active users increases. This entails an increase in demand. As for speculation, it is a feature of any market. It is important to understand that people are the belief in cryptocurrency initially irrational. People in their actions guided by the opinion of the majority.
Over the past five years, the people were told that bitcoin will cost 50, 100 and 500 thousand dollars. People want to believe it. And who would have no arguments cited, they will not change their beliefs. Because all of the year saw the bitcoin grew. Therefore, somewhere in the subconscious thought remains that, despite the fall, growth is inevitable. But if bitcoin will always fall for two years, then even the most desperate optimists may change your opinion.
However, there are all preconditionsBinance CEO Says Bitcoin Price Correction in 2018 is Similar to 2014, Occurs Every Year growth rate for bitcoins in the long run. As I said above, the new technology is becoming more popular. Growing and developing the community. Actively goes kriptorynka legalization process, which attracts new players and a lot of money.
Another question is how to make money in a market where there are no rules, and irrational behavior of users has a significant influence on the course. You can always make money, but you need to know a few important things.
Golden Formula kriptorynka
The formula for success in the kriptorynke there. Ignoring it is easy to fall into the danger zone. And those who remember about it, yet never went negative.
Took cryptocurrency - forget about it for three years. Hide keys in the safe deposit box and forget about the course.
As you can adhere to the following algorithm as a basic strategy: each month to invest some fixed amount in the selected cryptocurrency, and no matter how much it costs at this point. This strategy is a three-year helps an investor to almost 99.9% remain in the plus zone.
Three "no" for safe operation with cryptocurrency
- Do not break the golden rule kriptorynka: cryptocurrency buy - forget about it for three years.
- Do not panic. Do not pay attention to the volatility. If suddenly the course went down and all around screaming that all was lost, do not give in, do not take any action. Remember the rule of the first three years.
- Do not play with the stock exchange and does not play the stock market, if you do not have the expertise. 97% of all traders lose their money within 3-9 months. Today kriptobirzhi not regulated, are not licensed and do not guarantee safety of your funds. To trust them with your money - an unreasonable risk.
Remember that the main thing in the game on the market - is to carefully weigh the risks of its own making. Do not stop believing in kriptoindustriyu, because everything is just beginning.
see also
- What are bitcoins and how to store them →
- Why bitcoin should believe and invest in the securities →
- 6 most common myths about Bitcoin →