Bitcoin survived another dip in a trembling market
Bitcoin survived another dip to £7k ($10k) in a trembling market
Around 24 hours ago, the total market cap of all cryptoassets was the same as it is now. The average change across the top 100 projects by market cap in that time was just 0.3%. The 10 worst performing tokens only lost 9% on average — and the best performing 10 just 13%!
These fluctuations seem like nothing compared to the spectacular returns and whopping crashes we are used to. To be fair, today there were still random altcoins doubling their prices or losing 90% of their value. Those coins, however, were always only for the crazy ones.
Perhaps that’s why, amid an apparent lack of things to cover, the Wall Street Journal decided to out CoinMarketCap’s founder by publishing photographs of his apartment block and details about his personal life. A dangerous and irresponsible move!
Anyway, the current market situation isn’t clear. In this case it appears that it was just a short-lived dip among the top cryptoassets, with prices recovering quickly — but no one really knows the driving force behind the swing.
Clearly crypto markets never disappoint those who think they made ‘Vegas gambling boring’, despite many Twitter traders [feeling impatient]9https://twitter.com/Dawgnuts626/status/955978457820745728) in this bearish market. If you also feel dull, keep reading on how to prepare yourself for the next bull run!
Learn more, learn better! You can’t ever lose what you learn.
Capitalizing on your curiosity is the surest way to better position yourself for whatever market trend comes next, but learning by itself is not enough to make money. Even Bill Ackman, a famous investor, couldn’t stop his fund losing money three years in a row!
To make matters worse, those losses were in the calmer waters of equities. As a side note, the next time you hear that “cryptoassets are in a bubble”, remember that the stock markets are currently in a massive 104 month bull run, which some say is only the beginning!
Back to crypto and our suggestions! Firstly, learn about this unique asset class. Go through good beginner guides, read some great books about it and see how it isn’t correlated with other asset classes. Also, don’t forget to read Satoshi’s whitepaper!
Next, don’t overtrade. Take a pause from the markets if you lose money — day trading is a full-time job that very few people are capable of turning into a profitable one! The risks are well-known in other asset classes, but in crypto some are still losing (200 bitcoins!) with leverage trading on Bitmex against a one-month bearish market!
Finally, analyse your activity. You can’t make money if you don’t understand the good and bad decisions you made and why you made them. From simple portfolio trackers to more complex spreadsheets and financial models, there’s plenty to choose from — just watch out for viruses!
Filter the noise and stay ahead of the pack
Check out this tool that compares the prices for different projects as if they had the same market cap and never feel tempted to invest in a token just because it looks cheap again!
Check out this great analysis on IOTA’s miota token valuation by Multicoin Capital, a cryptoasset investment fund. In brief, they say it’s ‘sharply overvalued’!
An insight a day could give you more profits to play
You don’t buy that crypto markets can move without reason? Here’s a cool farfetched piece from the free Financial Times’ Alphaville blog on the recent dips!
You don’t like those who spread negative news about your favourite cryptoasset? “Just Because It’s Bad for Your Coin Doesn’t Mean It’s FUD”!
You don’t like reading the long articles we share here? We hear you. Listen to this great podcast on “Mental Models for Understanding Crypto Tokens”!