Even though the entire cryptocurrency and none crypto assets on the stock market price are down currently but the level at which my various altcoins portfolio crashed backward baffles me, please can anyone explain for me how the altcoins market works.
It's very hard to give general advice on why the alt coin markert drops. What kind of coins are you holding and what are the sizes of your individual positions. When it comes to alt coin trading and investing the biggest factor for me is diversification. I have seen too many promising projects losing 90% of its value, that's why I am not going to put my eggs all in one basket. The largest part of my portfolio is bitcoins, I strongly believe that the most famous crypto coin is going to keep rising. The smallest part of my portfolio are meme coins, here I only invest a few bucks so when they lose value its not really affecting my overall portfolio.
The biggest driver of the alt coin market is bitcoins. If the bitcoins drops in value than its going to pull down the whole market. In December the new covid mutation started spreading around the world and investors are panicking. It's not a serious panic since we don't have many facts yet about omicron variant. It's going to take weeks to analyse if all the vaccines are really useless against it. Against such big news like covid pandemic we can't really protect us, it's general market risk and doesn't mean that your coins are bad.
News influenced things inside the market, we can't tell which direction it will heading.
We should always analyze and not to allow emotion to conquer our fears while seeing this kind of market sways.
If you have good analysis, then you'll be able to work things the right way.
You'll be able to work and play to the intent that you want with your investment. Keep being updated and
not to put your guard down, it will lessen the chance of losing your money.
Today's market conditions are difficult to predict, we have to do a lot of analysis to find out what will happen in the market in the future, if we are able to make good predictions and analysis, then we will get a conclusion to start investing, that's why panic will not produce any results. Thus, investments must be carefully prepared, otherwise any investment will have problems in the future.