Post
Topic
Board Economics
Re: My Advice on Investing in Crypto
by
ruletheworld
on 16/04/2018, 00:33:26 UTC
For me it is a dumb thing to enter a market and start to trade without knowing a structural things about how it actualy operates, so patience and researches!
Even the most patient, knowledgeable and intelligent person in the world might go wrong with cryptocurrency.
Sometimes no amount of technical knowledge can help you to predict some of the market shifts - most ICO trading is like this.
Every ICO is promising amazing gains and ROI - in the past, even some highly famous project turned out to be 'not that good' (to say lightly).
That's very true, but those who've seen these cycles before know what to look out for. There were ICOs being done since 2014-15 era. That's when it was undervalued. If every project with half a person technical team starts doing an ICO, you know the market is not sustainable no matter what, although the timing to predict its demise is harder. The market then over-reacts and allocates less money to interesting projects as well since everything is in a bear market and such is the sentiment. Rinse and repeat.

The point is, market cycles are caused by human psychology and that's more important to know than mere technical knowledge.