Bitcoin and Altcoins trading looks like a waving river. It is a process very quick, which changes too rapidly and never stops. So if you swim against the wave, you will sooner disappear completely. For improving skills in a sphere of crypto trading and market understanding, it is better to learn from mistakes of others.
This article is written after getting a huge experience in the crypto field and after having thousands of crypto trade positions through the last years. So, let's start.
A very first mistake which happens too often is to look at the coin’s price rather than the market cap. Just as you appreciate a company by its market cap performance, which is calculated by multiplying the number of shares times a single share’s price, the same is done for Altcoins. The list of existing coins in circulation times the coin’s price. It is only the psychological influence on the buyers. There is no difference whether one Ripple equals one dollar, and there are a billion Ripples out, or if one Ripple equals a thousand dollars and there are a million units of Ripple. Therefore, from now on, when examining coins for investment on CoinMarketCap, look mainly at the more substantial figure, which is the market cap, and focus less on the price for one coin.
Crypto is really unpredictable. While you are getting profits of hundreds of percent, the section withstands now and will continue getting dozens of billions of dollars erased flat out in the future.
When Bitcoin loses its value against the US dollar Altcoins usually happens the same process.
As I marked earlier, there are two ways to check investment in Altcoins – vs Bitcoin and vs the US dollar. This is the main mistake for those who missed the Bitcoin train and are looking to cash in on the other altcoins. Those investors have to examine the investment dollar-wise since they exchange US dollars or out FIAT in order to buy crypto.
Good users know good and don't afraid their mistakes. What is much more important to analyze and learn them. This way you will improve your skills for understanding the market.