Topic: Is there anything in crypto that makes logical sense really? (Read 388 times)
Sometimes you can catch pumps but you have to be so lucky.
I equate the exchanges to futures speculation. There's a few coins with merchant adoption but many with none. Until such time as a coin becomes a viable replacement for wages, retail purchases, and the such it's all a guessing game based on press releases.
But yeah, both good & bad news seem to cause price fluctuations that's hard to understand. Even run ups on coins with no real purpose are amazing, but when the market cap increases it opens the door for more day traders to come in and move some shares back and forth just enough to get a profit and get out. Then it's back to being a fairly useless coin that somehow generated interest 1-2 days.
But yeah, both good & bad news seem to cause price fluctuations that's hard to understand. Even run ups on coins with no real purpose are amazing, but when the market cap increases it opens the door for more day traders to come in and move some shares back and forth just enough to get a profit and get out. Then it's back to being a fairly useless coin that somehow generated interest 1-2 days.
This is what I understand,
1) Bad news -> huge panic sell -> recover some immediately and most of it after few days
2) repeat
1) Bad news -> huge panic sell -> recover some immediately and most of it after few days
2) repeat
If there is two things i've learned in trying to trade for the last 6 months it is this:
If a coin has bad news, expect a dump
If a coin has good news...expect a bigger dump!
I honestly think there is no rhyme or reason to anything.
If a coin has bad news, expect a dump
If a coin has good news...expect a bigger dump!
I honestly think there is no rhyme or reason to anything.
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