HOW COIN VOLATILITY SINKS NEWBIE TRADER CONFIDENCE

abeekuharmony (45)in #ethereum • 7 years ago (edited)

THE SCARE
The crypto markets this week has had a preview of what an crypto apocalypse would look like as five top-10 coins posted weekly losses of at least 9%. The ethereum price bore the brunt of the damage, while bitcoin dipped but managed to stay afloat. It was a very confusing day for traders like myself who are trying to get a hold of this whole crypto-trading hustle.

~For a minute you feel like, I'M DONE!~

THE BITCOIN SAFE HAVEN FALLACY
As Ethereum’s price seems to wobble more , traders usually run back to Bitcoin to save themselves the load of anxiety that makes you sign into Poloniex & Coinbase every 10 seconds. This flighty behavior of panic selling is not a good thing, however if you're an expert an swing trading and really know what you're up to, awesome! Goodluck with that. You will definitely lose profits when you lunge between coins as all Crypto coins keep plunging into a sea of red.

THE CONFIDENCE KILL
For all its disruptive potential, bitcoin’s notorious volatility is still a factor that has to be considered when investing; imagine if the dollar went up and down this quickly, we’d all have whiplash, not to mention anxiety. Since crossing $400 on June 12 in a victorius advance, the ethereum price has declined by almost 40%. At its present value of $246, ethereum is worth less than I bought a month ago. For someone like myself who hasn't experienced any major profit hike in crypto trading, it seems like a roller-coaster through the dark alleys of Hogwarts, the cold chilly alpines of Everest and the dry hot Saharan deserts. Many articles online advice that you hold coins rather than risking them in such volatile periods but what is the real gain? Holding a coin doesn't necessarily guarantee your targeted profits.

HERE COMES ANOTHER TOP COINPRICE EXPLOSION?
As these events get underway, experts believe Ethereum is going to have some fuel pumped into its engine. And investors that held through the rough patch will be pleased. Bitcoin and Litecoin may take a hit as investors sell off coins to buy back Ethereum.
course, no one can be 100% certain of how whales will behave no matter how good your trading skills and coin history calculations could be. But the past week made a strong case for coin jumping as had happened in recent crypto history. They say there's always a scary dip preceding a massive surge. Another factor is that a handful of traders pointed out was that cryptocurrencies sometimes follow each other in terms of their price movements. It looks like Newbie traders like myself will have no other option than to flow with the tide and hope good advice comes our way.