Don’t sell your coins for ones that are going up.
September 12th Tweet This. Trading or investing in cryptocurrency is a psychological war against yourself. Stock traders often say that investing in traditional markets requires extreme mental discipline. That discipline is how they control themselves when the market is volatile.
How they stop from making stupid decisions, and keep on track with their strategy. If traditional trading requires extreme discipline, crypto requires the mental fortitude of Jedi. The crypto market is more volatile than any market the world has ever seen. You need to be the emotional equal to Yoda meditating on top of a mountain during a meteor shower. I started off as a investor but fell deeper down the rabbit hole. I work with an accelerator helping token sales , and recently joined the team of a project I fell in love with.
I like to think this gives me a comprehensive understanding of fundamentals at play. What this understanding of the players involved in this market has given me is.. Well, the knowledge that this market is almost completely sentiment driven. Crypto has more retail investors than any other market.
The charts are pretty similar, it would seem, The more people that google Bitcoin, the higher the price goes. The Search Volume graph seems more smooth because less data points were used to plot the graph. When a market is sentiment driven, price movement is driven by emotion. To come out on top in a market driven by emotion, you have to remove emotion from your trading. When the market gets bloody, you might even be wondering if Bitcoin will ever go back up again.
This is for everyone else, the retail investors that make up the majority of this market. Two more weeks pass. He offers you advice, knowing that your coin is still in the gutter. You stare out your window, not at the beautiful LA skyline, but at the street below. Sure, I spent a lot of time actually studying and applying what I learned to my trading, but I also spent a lot of time aimlessly staring at a computer screen for hours on end. I learned that the majority of my mistakes where made in moments like those.
It made me more emotional, and it made me overtrade. Two things I now know to avoid at all cost. Sometimes the best thing you can do, is set a limit-order, and walk away. Trading Bitcoin Cryptocurrency Blockchain Ico. Reza Jafery October Reza Jafery September This is Why Bitcoin is Going Up. Reza Jafery June Reinventing Mortgages with Block Reza Jafery February Reza Jafery January The Art of Dodging Cryptocurrency Scammers.
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Don’t try to catch the exact bottom.
It's not something I didn't see before, or worrying, for what matters. So I thought it would be useful to share my thoughts about why this inverse correlation between the price of Bitcoin and altcoins happens, if only to get contradicted and proven wrong - if that's the case. All altcoins are valued against Bitcoin, not fiat. Although we see in various price trackers the value in fiat, like USD, that's the value in Bitcoin of that alt, translated into fiat. Well, that means that almost all trades in the crypto universe are made first between Bitcoin and alts, and after that in Bitcoin and fiat. What happens when the price of Bitcoin goes up, is that traders will sell their altcoins for Bitcoin, banking on further price increase and then,when the Bitcoin correction is coming, they sell their Bitcoin and buy those alts cheaper.
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Once again, the crypto market is in an upswing. The more I look, the more it seems that Bitcoin and the other cryptos are beginning to find their place among the other markets. As we know, crypto is an exciting new asset class. Until now, it has been very segregated from the rest of the markets, but that's now changing at a rapid pace. In , we saw Bitcoin as a high-risk asset correlating with the stocks, which is traditionally a high-risk market.
It's not something I didn't see before, or worrying, for what matters. So I thought it would be useful to share my thoughts about why this inverse correlation between the price of Bitcoin and altcoins happens, if only to please click for source contradicted and proven wrong - if that's the case.
All altcoins are valued against Bitcoin, not fiat. Although we see in various price trackers the value in fiat, like USD, that's the value in Bitcoin of that alt, translated into fiat. Well, that means that almost all trades in the crypto universe are made first between Bitcoin and alts, and after that in Bitcoin and fiat. What happens when the price of Bitcoin goes up, is that traders will sell their altcoins for Bitcoin, banking on further price increase and then,when the Bitcoin correction is coming, they sell their Bitcoin and buy those alts cheaper.
Of course, there are exceptions. Sometimes, the fundamentals of a certain altcoin are fragile, and Bitcoin price rising is just the final clue for a major sell off. Some coins are "pegged" to the dollar, like Tether, and they will have the same value in fiat, no matter what the Bitcoin price is. And so on and so forth. But the main cause for this inverse correlation is that alts are flowing into Bitcoin, for a future buy back at a cheaper price still in Bitcoin.
Well, When bitcoin goes down what goes up don't think so. But I also don't know how electricity works, or how the plural is formed in Swahili, so you should always make your own due diligence when it comes to complex stuff like.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me dragosroua. If you're new to Steemit, you may find these articles relevant that's also part of my witness activity to support new members of the platform :.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:. I enjoy buying when alts. Great Post! I think earlier on in the year all coins were rising together, but now we have, as you say, the trading between BTC and the rest. With a higher inflation rate than USD, the only surprise is that Steem does not plunge further, which I believe it. It will happen in about when bitcoin goes down what goes up years, but it's good to know.
Just 5 years from now, if Steemit still exists that is, the total amount of Steem will be over If I could bet safely on it, I would bet Steemit will not exist 20 years from now, and even if it still exists by then, Steem will be already grossly devalued due to inflation than what it is. It may also be less tempting to join a platform which does not reward good content, which is already the situation now, unless you are an established poster.
For the record Steemit deleted my previous attempt at commenting, which goes to show you how lousy it when bitcoin goes down what goes up over 18 months since its inception. For the record too I got a Steem undelegate after my previous comment.
For the record, there is no "platform" that rewards you, there's no central authority which establishes your "value" or "non-value", there is only you and your network of followers. That's all there is to it. Yes, it does have a steep learning curve and yes, it's hard to build an audience. But when it was easy? We are using a platform now, use whatever word you like. If you have a better word for it, I am open to adopting your suggestion. There are rules to it, and the rewards are subject to these rules.
Economics is affected by inflation. Some people have a grasp of what inflation is, and some of these people have a nice stash of Bitcoin, fiat, or whatever you may want to trade your Steem. Such people affect the value of Steem. Now I should add to my previous comment, that it will stop rewarding spam.
The difference being that spam is so much easier to post than good content. Thank you for explaining about this inverse correlation, it is very useful especially for those who are new in this domein, like me.
All the best for you! Bought SP for 5 bitcoin a couple of days ago, which is the bad news : The good news is that I'm using the steem power to offer a delegation service, on a month to month basis. It's an interesting development of the ecosystem. I came to the same conclusion about the price, but read some hit pieces on btc gold, so underestimated fork fomo. Great post, I appreciate your work, I'm a 20 years experienced trader from Italy, I leave you my upvote and follow, it would be an honor to have you among my own followers!
Not necessarily. I think in order for Steem to rise at the same time as bitcoin rises there needs to be more money in the crypto market. If bitcoin price rises, but the marketcap stays flat, that just indicates money is going from altcoins to bitcoins. When bitcoin goes down what goes up Policy Terms of Service.
So here's what I think it happens. Ok, so what? Common reasons: Disagreement on rewards Fraud or plagiarism Hate speech or trolling Miscategorized content or spam. Authors get paid when people like you upvote their post.
Sign up. Yeah, I know the drill It is a Beautiful Thing. Never have to get caught up in FOMO So you suggest buying promising altcoins while they are cheap? Since I don't care about money, but only about the principles, it makes sense for me. Regardless, it makes no harm if you tell your opinion.
Makes sense. I've bought a couple of batches of Steem this week, using fiat and via Ether. A few more weeks to wait and Steem should be rising again The rest is economics, meaning the token is worth whatever people will want to spend for it. Thanks for share. Excellent post thanks for sharing Be optimistic. Good bruh. I'm guessing the entire crypto market would crash at that point.
At leastwe now know who the BTC-whales are!
Why Is Ethereum The Only Coin That Goes Up When Bitcoin Goes Down?
The network is not controlled by the main server or a group of main servers. So, you should always speak to a financial advisor before making any major decisions. Not quite as much as John McAfee does, but still a lot. Never invest more than you can afford to lose. Sign up http://trackmyurl.biz/what-ticket-is-bitrex-used-for-bitcoin-cash-3830.html. You need to be the emotional equal to Yoda meditating on top of a mountain during a meteor shower. Whenn lot of people have made large profits by buying Bitcoin at a low price and then selling it for a high price. He believes that by the end ofit will go back up. What is Cardano?