Topic: Market dynamics (Read 186 times)

I would not refer to speculation as vague expectations. Speculation is to make an inference based on inconclusive evidence, And that's the basic of trading and investing in cryptocurrencies. Except you are a whale, you have no influence on future situations and can only analyse (technically and foundamentallt) and predict.


That's right. Make decisions based on your research and conclusions, you can consider opinions of others when reaching a conclusion, but don't take recommendations and suggestions, even from crypto influencers. Always DYOR.

Since the inception of bitcoin in 2008,over 1000 crptos have been introduced into the system,so many have died out and a lot more have thrived in the ever competitive market.As a trader in order to avoid huge loses there about some dynamics to be put in place,as the rise of cryptocurrency hasn't been without crises,such as the collapse of mt Gox in 2014 to the hack of ethereum in 2016..
   Avoid speculations:most people trade only out of vague expectations or will I call it hope,this network has risen far above faceless speculations except of course one is a soothsayer,excitements such as that more often than not leads to crashes and huge loses incured
   FOMO:most times trading increases sporadically when there is a new coin around,when government endorses a crypto,or when a huge whale places a huge bet on a currency,for the fear of missing out a lot of people trod into such projects and make investments basically on the hype it's getting,that is not such a wise thing to do as it could be a disastrous trading mechanism
  Peer influence:this plays a particularly large role in trading,though on a small scale,much of peer influence trading is more or less a speculative one,as they are actually hoping not to miss out in the next "bitcoin rise"..so most times decisions taken are usually correlated to those of their peers..

 Understanding the market dynamics would go a long way to ensure effective trading,and help to make predictions to minimize the effects of fluctuations.Try studying the coinsmarketcap and learn to make your own predictions.