Scramble for the Cryptocurrency: Avoid the Myth and Get Right Information
The cryptocurrency craze is catching up with many. For those who have been around since the invention of Bitcoin like me can attest to the current Fear of Missing Out (FoMo) panic buying of coins. This was evident towards the end of 2017. The trends are worrying and you should be worried as well. The scramble for the cryptocurrency needs the right information before diving in.
Cryptos are highly volatile and a simple pump from the mainstream media can make or break a digital coin. Take for instance the pampering of Bitcoin by CNBC and are not telling the consumer about chances of a retrace. The hype created saw the market capitalization skyrocket to an all-time high of approximately $179 billion in September before going down to $97 billion according to CoinMarketCap.
There is a tendency of mainstream media using their influence to lure cryptocurrency enthusiasts into buying particular coins. I was amazed by CNBC trying to show its following how to buy Ripple (XRP) and giving a price range of $2.50 and $3.30 early December 2017. Surely if you understand the dynamics of the digital money markets, you would not listen to a word of it.
Doing a Sincere Background Check
Well, I did a simple background check on XRP at CoinMarketCap and discovered that it was $0.23 early December and rose to $3.75 early January which translates to gains of 1600%. With these figures, many were lured into believing the coin is on the rise and no turning back. It is a time like this when you need the right information about your target token.
Doing a personal research is the only way you get in-depth information for informed decision making. At times, logic plays major role when it comes to buying digital assets. You do not have to listen to CNBC rhetoric of enticing you with BTC at $1900, XRP at $3.25 or even a token that has no future. Let your personal background check reign supreme cryptocurrency market.
Some media houses use hype and not the hard facts to entice their listeners, readers and viewers into impulsive buying. Buy what you are looking for and not you are being forced to purchase. A coin that is stuck under $1 for months will not appreciate simply because CNBC says so; it has to evolve through the market stages before gaining traction. Market forces are not necessarily dictated by the media.
Clearly CNBC are in business that is totally different from yours. You need the right tools to your research. Go for credible sources that have your best interest at heart. I highly doubt that CNBC is one you should go for even for a second opinion.
The Cryptocurrency Intricacies
Some players in the industry create fear uncertainty and doubt to capitalize on panic buying and selling. This causes prices to drop and investors take the advantage to buy and hold. When prices are favorable, they sell at profits. This has been compounded with South Korea imposing a ban on cryptocurrencies. According to CoinMarketCap, some prices are excluded in their pairings when it comes to high cap coins especially before the Korean proposed ban. The bleeding of the market early January is a clear indication of what happens when you look at the market through sources that do not have facts about the entire market.
There are also Ponzi schemes in the market and like Bitconnect, they do not stay long. With such in the market, you do not have to join for fear of missing out; get your interests addressed first and decide if it is the right proposition for you. Bitconect thrived on BTC growth and when the price tumbled, the scheme came down crashing.
Cryptocurrency in its good intentions is decentralized and the value of the coin is highly volatile. It cannot sustainably support high yield investment schemes and affiliate programs. If these are supported by any coin or coins, never even give them a second thought; they collapse the way they surface.
Market Capitalization Shifts
According to CoinMarketCap data the market cap was at $834 billion early January and $414 mid same month but improved to $619 in mid-February. No one could have predicted the $60 million cap in June 2017 would turn out to be $800 in January 2018. When the market was healthy, the hype was low and many people started buying in December, the positions could not hold leading to the market shedding. Most cryptocurrencies and Altcoins were in the red with few showing green.
The market seems to be on the uptrend; however, it is important to be cautious. There seems to be some light in the near future. Despite the September scare, many coins are rising and CNBC is clueless on what is happening in the digital money markets.
So, how do You Make Money?
Depending on what you are investing in, buying when prices are at the lowest ebb means you gain when the tide is high. The timing is very critical and your entry and exit points should be well informed. At least you can focus on the 2018 are well informed and search for coins like MIOTA and BCash that celebrated New Year on a positive note.
The current droop is negligible when compared to other markets. Before the crypto-market turn bearish, we could be talking of market capitalization of $10 trillion. I would not advise you to look at the major currencies but Altcoins as well with major focus on privacy centric coins. Many investors are looking for the best way to move their online wealth anonymously. However, you need to brace for more dips and swings going to the future.