You are viewing a single comment's thread from:
RE: Bitcoin market thoughts
"Please don't tell me that you have that much faith in companies share."
It's not so much having more faith in companies than in crypto, as it is in knowing "how" to read the information you have at hand. More often than not, there are many tell-tale signs of a company not being what it is being promoted to be. The real skill is being able to spot those tell-tale signs so as to avoid such companies. Such skills are acquired over time through a combination of knowledge and experience, which is why seasoned investors / traders nearly always make money regardless of the direction of the markets, whereas the newcomer almost always loses his money (or at least fails to make a significant profit) in such ventures. Good luck!
The "how to read" is the million dollar question in every trade or investment. Indeed, this is a skill and I totally agree with you about this.
The truth is that your previous statement ("No one can predict the future price of any crypto currency. Unlike owning shares in a company, where you at least have a little knowledge of the company's financial status") said to me that you were reject the fact that someone could have profit from cryptos...
(followed you. I like the knowledge trading! )
"said to me that you were reject the fact that someone could have profit from cryptos"
No, No, No, on the contrary! I think there are numerous opportunities to make a lot of money in the crypto markets. My only point was that unlike the info we have available regarding traditional shares in companies, for whatever that is worth, we have a lot less info regarding crypto currencies. Much like trading traditional stocks, I see there are 2 approaches to trading crypto. One is to buy the coin, and hold it in the hopes that it will go up at some point. The other is to seek out coins with quite volatile pricing, and day trade those currencies. I use the latter approach, and find that in the long run, unless a coin really starts to fly, I will make more money than the buy and hold approach. I'm sure we all wish we had bought Bitcoin when it was trading at just a few cents, or even a few dollars, and held it until now. But with more than 2700 coins now available, finding one that will produce similar long term results is not much better than buying a lottery ticket.
"finding one that will produce similar long term results is not much better than buying a lottery ticket."
More luckily is to be struck by a thunder... Five times...
I do like the second approach, too. I like that I am getting involved more, than hodle and wait.