Crypto currency trading is very different from the standard and primary market for a lifetime. The profiles of traders are very different and the traditional market moves thanks to them. Younger investors, who enter the market with little knowledge, have encouraged the emergence of “gurus” that they find on the net and that profit by taking advantage of their lack of experience.
Fragile hands or soft hands are created: those who buy after a succession of green candles and sell after a succession of red candles without regard to further studies, where psychology and panic control do not exist.
The low capitalizations (which involve high volatility), the enormous amount of crypto-currencies with their respective common projects and those that leave day by day, make the market of the crypto-currencies a completely different place to the traditional market, since, being not centralized , Is a market that never rests and where to operate intraday with low capitalizations, in the medium term with altcoins or long term with the projects that support these crypto-currencies is something striking for potential traders.
Concepts such as pump & dump, whales and so on have taken on great importance, terms that literally mean “inflate and throw”, are no more than fraudulent strategies than the aforementioned whales (large group of investors or investors with large capital) They often use to overvalue a crypto-divisk and sell at that high price with its consequent big drop in very little time frame, and is that, market capitalization in crypto-currencies is still light years of market capitalizations of a lifetime.
Bitcoin is the main gateway for trading crypto-currencies, 99% of the crypto-currencies can only be acquired with the “mother criptomoneda”, so that FIAT money (Euro, Dolar …) we must acquire bitcoins for a posteriori power Acquiring other cryptones; This is why, to a large extent, Bitcoin has the largest capitalization of all crypto-currencies, and yet it is such a small capitalization that, as we can see from day to day, its value oscillates in a pronounced way; Then we should think of crypto-currencies of lower capitalization and how easy it is for whales or investment groups to modify at will the value of certain crypto-currencies. Groups that sell their pumps and dumps to “traders” to also benefit from this move in low capitalization currencies. In this way they hunt a large number of inexperienced investors who, obnubilados by the growth of the value of that currency, accede quickly to buy in well already high points of the pump.
These are the profiles that cause the market to be easily influenced along with ignorance due to the great novelty of this type of market, this is not only seen in the world of new trading with small crypto-currencies but also, in moments of confusion Like the current ones, in the generic users of Bitcoin outside the world of the speculation, since these months we were accustomed to green numbers almost every day.
It is now when the part of assuming losses arrives, the most complicated part of all in the psychology of trading.
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