Do you know that only the most skilled and disciplined investors are running away with big profits over time, while dreamers and noobs end up holding useless coins. And here’s the reason why:
1. Unpredictable market
In the first place, the unpredictable market is not an easy game and most end up losing. Anyone can make big profits if they invest at the right time - like in December 2017, when no one could lose - but investing at the right time requires luck. It is extremely hard to time the market now and most professional traders got it wrong. While it might go up as it did in 2017, it could also come crashing down like 2018. Some day traders may get lucky and outperform the market in the short-run, but it is notoriously difficult to outperform the market over the long-run.
2. Hard to know which coin to invest in
At today’s market cap for cryptocurrencies, the combined market cap of the top 20 coins makes up 89% of the entire market. As returns in the cryptocurrency market follow a power law distribution, we can expect that a few coins will net colossal returns, while others perish. With respect to emerging technologies, it’s very common for a single asset to significantly outperform another while the others go to zero. But it is challenging to find out which to invest in. And, you might want to hold on to a bad investment because of the time and money you’ve already put in but there’s a good chance that the coin has already had its heyday and never bounces back.
3. Traders’ common destructive tendencies
The sudden rise in the price of Bitcoin at the end of 2017 led to more and more people publicly declaring that they wished they had invested in the flagship cryptocurrency early. People got FOMO and started investing as it was going up in 2017, but soon enough they lost a ton of money. Two common destructive tendencies: FOMO (fear of missing out), which can lead to buying high, and FUD (fear, uncertainty, and doubt), which can lead to selling low - are dangerous, especially for novice traders who are likely to botch their attempts to time the market and lose money or make less than they would simply hold onto their coin.
4. Knowledge of cryptocurrency is not universal
The fever for Bitcoin and cryptocurrency, however, has not yet led to any remarkable increase in public understanding about the space. According to a survey over 1,000 American adults, only 21% of those surveyed know where to buy crypto, while an overwhelming 78% said that they do not. Findings also indicate that knowledge of cryptocurrency remains low.
Now, if you’re at the beginning, I get it that you’re eager to trade. But don’t rush it. Do you know the basics of blockchain technology and Bitcoin? Do you know what circulating vs total supply means? Do you understand what inflation is? Do you know about exchanges, wallets, private keys, and public keys? If you can’t answer these basic questions, please take some essential time to prepare yourself to develop a basic cryptocurrency trading strategy.
Like I said before: Only the most skilled and disciplined investors win, while the others lose. So I personally recommend that you not engage in the cryptocurrency market by yourself and seek for supporting services, like staking. Staking is the process of holding funds to support the operations of a blockchain network through a reward-driven process. Staking allows users to earn rewards directly on-chain for holding a given currency. If you’re interested in cryptocurrency staking, CryptoStake is created for you. On CryptoStake platform, cryptocurrency holders stake their coins so that the company could start the minting process to double those coins. The total Return on Investment is 150% of their staking amount; with daily profit and instant withdrawal. CryptoStake is a brilliant financial strategy to get passive income.
Join us by creating an account at CryptoStake and start this wonderful experience!
1. Unpredictable market
In the first place, the unpredictable market is not an easy game and most end up losing. Anyone can make big profits if they invest at the right time - like in December 2017, when no one could lose - but investing at the right time requires luck. It is extremely hard to time the market now and most professional traders got it wrong. While it might go up as it did in 2017, it could also come crashing down like 2018. Some day traders may get lucky and outperform the market in the short-run, but it is notoriously difficult to outperform the market over the long-run.
2. Hard to know which coin to invest in
At today’s market cap for cryptocurrencies, the combined market cap of the top 20 coins makes up 89% of the entire market. As returns in the cryptocurrency market follow a power law distribution, we can expect that a few coins will net colossal returns, while others perish. With respect to emerging technologies, it’s very common for a single asset to significantly outperform another while the others go to zero. But it is challenging to find out which to invest in. And, you might want to hold on to a bad investment because of the time and money you’ve already put in but there’s a good chance that the coin has already had its heyday and never bounces back.
3. Traders’ common destructive tendencies
The sudden rise in the price of Bitcoin at the end of 2017 led to more and more people publicly declaring that they wished they had invested in the flagship cryptocurrency early. People got FOMO and started investing as it was going up in 2017, but soon enough they lost a ton of money. Two common destructive tendencies: FOMO (fear of missing out), which can lead to buying high, and FUD (fear, uncertainty, and doubt), which can lead to selling low - are dangerous, especially for novice traders who are likely to botch their attempts to time the market and lose money or make less than they would simply hold onto their coin.
4. Knowledge of cryptocurrency is not universal
The fever for Bitcoin and cryptocurrency, however, has not yet led to any remarkable increase in public understanding about the space. According to a survey over 1,000 American adults, only 21% of those surveyed know where to buy crypto, while an overwhelming 78% said that they do not. Findings also indicate that knowledge of cryptocurrency remains low.
Now, if you’re at the beginning, I get it that you’re eager to trade. But don’t rush it. Do you know the basics of blockchain technology and Bitcoin? Do you know what circulating vs total supply means? Do you understand what inflation is? Do you know about exchanges, wallets, private keys, and public keys? If you can’t answer these basic questions, please take some essential time to prepare yourself to develop a basic cryptocurrency trading strategy.
Like I said before: Only the most skilled and disciplined investors win, while the others lose. So I personally recommend that you not engage in the cryptocurrency market by yourself and seek for supporting services, like staking. Staking is the process of holding funds to support the operations of a blockchain network through a reward-driven process. Staking allows users to earn rewards directly on-chain for holding a given currency. If you’re interested in cryptocurrency staking, CryptoStake is created for you. On CryptoStake platform, cryptocurrency holders stake their coins so that the company could start the minting process to double those coins. The total Return on Investment is 150% of their staking amount; with daily profit and instant withdrawal. CryptoStake is a brilliant financial strategy to get passive income.
Join us by creating an account at CryptoStake and start this wonderful experience!
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