No doubt the market was indeed bad yesterday it's was a bloody monday. cryptocurrencies traders woke up at the virtual bloodbath with over fifty (50) cryptocurrencies by market cap was all in red zone. Through out yesterday every group, forums were all smelling blood.
Let know why holding coins at the top of the market cap is essential.
Typically in (Fiat) finance, you have to account for inflation. If you are not aware of inflation or what it means, it's a term that describes a supply of money and how more money is added into the economy over time therefore decreasing the value of your money.
For the majority of Cryptocurrencies, this is the opposite. There is a "finite" amount of coins and thus is deflationary, as you guessed it, is the opposite of inflation. This allows the coins value over time to increase based on demand. As many of us who have watched bitcoin (BTC), ethereum (ETH), ripple (XRP), etc rise exponentially over the past six (6) months in an explosion, there is only one serious reason for this. Demand has increased world wide.
As normal as cryptocurrencies have become for most of us traders, it is still a very shadowy investment to most people. It's not easy to buy for those that are not using computers every day, aside from Coinbase there are very few apps that make it easy to flip back and fourth, BTC value is not something people are automatically aware of and translation from BTC amounts to your countries Currency is always changing, this can be interpreted as instability to some and also confusing.
But this will all change. As this past six (6) months has changed. As this past year has changed. Cryptocurrencies is pushing to infuse itself into common social and cultural means. It is becoming more main stream and it's popping up in business and finance stories world wide. People are becoming millionaires in under a year. This too will all change. Traders will become more educated, markets will become more stable and along with this, the total market cap of Cryptocurrencies will continue to increase.
The "Power Coins" are BTC, ETH, XRP and LTC. There are others making an attempt to join that group. You need to own these coins. Dash, Strat, Waves, ZCash among others have sustainable and long and wealthy roads in front of them. I'm a trader and my patience runs thin holding coins that sit still for so long. However holding them at this stage is a must.
I encourage everyone to learn the basic trading skills that are needed to sustain longevity in this cryptoverse. There is simply too much free information out there to be idle. If you continue to rely on other people to tell you what coins to buy, you will continue to have a 50/50 shot at profit.
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