The theory behind trading cryptocurrency! does the stock market repeat himself?!

in #cryptocurrency6 years ago

Cryptocurrency trade

Hey guys! how are you doing today? hope you all doing good!
so today I wanted to talk about trading cryptocurrency... I guess you all heard about it XD:

so lets start:
Will-Trading-Crypto-Get-You-Hacked.jpg

As you all know cryptocurrency is basically "The money of the internet" at least BITCOIN. You can transfer funds from all over the world in few minutes with small fees and 100% secure by the Blockchain technology.

So there is out there people that trade and making money with the market movement,
For example: Bob buy 1 bitcoin at 9500$ USD and sell it at 10,000$ USD.
so Bob make 500$ net profit for his bitcoin, right ?

(You can see Bitcoin chart at https://www.tradingview.com/chart/)

There is some theory about trading crypto currency, lets start.
The market is untradeable due serval reason:
1. FUD (FUD is the fear, uncertainty, and doubt ) - because of the anonymous of the cryptocurrency that is untraceable and can not be influence by the states (print money, burn money, change money etc...) countries are scared, and making FUD and bad statements about accepting cryptocurrency.
2. Small volume (Market-cap "only" 460,000,000$ USD from today check (coin market cap)) - The amount of money that is in the market is not enough for a stable tradable market, let say for example: I have 20 bitcoin in a trade platform and I am making a "sell market order" and the price is 10,000$ and there is just 1 bitcoin for sell at this price so the algorithm of the platform will go to the next closer available bitcoin for sell, could be 9950$ the lees and less, so when you make a market order you can loose money because there is no enough liquidity, and this could cause price manipulation, flash crash, and no trade strategy could work with this kind of market...
3. Price manipulation as you all know there is lot of rumors but I will touch this subject next time.

So is it profitable to trade cryptocurrency?

The real answer is no , this market is too new, unstable for "safe" investment.

My personal advice:

should you learn how to trade or just invest in crypto?
absolutely yes! in my opinion history repeat himself like the stock market at the 17 century when the price was playing thousand and thousand of percentage each month and so much people regret that they did not put only 200$ !!
do you want to regret in 10 years and say: " I should buy some crypto 10 year ago", remember this is not a financial advice, but you need to understand the situation, because I want you guys to be profitable and make money!

so please upvote me down there for more interesting thought, and follow me for more idea and learn how to trade!

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