The world of altcoins is a chaotic one. New people who become interested in cryptocoins not only have a lot to learn but they also have to sort through and process complex events at all times. One never knows exactly what’s going to happen with any altcoin - as has been proven time and time again.
Individuals who ascribe to a ‘structured Universe‘ idea about alternative cryptocurrencies may become disillusioned when Chaos rears its head. In a structured Universe the good guys always win, hard work is rewarded, and those who have the best product always rise to the top. In the real world, nothing like that ever happens. Rarely is there any sort of smooth sailing formula that always works for success. For altcoins this is even more true because the industry itself and the concepts behind ‘value‘ are still being defined.
From a practical standpoint this means it really is very rewarding to play very close attention if you’re into trading altcoins. If you turn your back for a second you can see any gains you have almost instantly evaporate. Unlike the ‘real stock market,‘ altcoins can rise and drop mainly on volume, regardless of any news. You often hear people using old school analogies like ‘buy on the rumor and sell on the news’ but trying to make those old saying fit alts is often a complete stretch. There have been many recent examples where good news or bad news had no real impact on price action.
How Can New People Learn About Altcoins?
New people will basically have to jump in and immerse themselves in altcoins if they have enough interest. Since the landscape is constantly changing maintaining an academic-only view of the subject won’t help anyone achieve trading success. New students of the game will have to constantly study price movements and learn how the markets work. Casual observers are likely to play hunches and hope for the best. Those who want consistent returns have to go much further. Luckily, there really is no shortage of information out there. It’s also pretty easy to communicate directly with project leaders so there’s almost not excuse for keeping yourself out of the loop.
Stay informed and keep alert and you can capitalize on the chaos. If you stay uninformed and trade on emotions you can realistically expect to cough up your BTC into the waiting hands of someone who is more skilled and full of guile. Each day more sophisticated traders are entering Altcoin City. They are going to make money when others make mistakes. New people who don’t do proper research can end up losing lots to these savvier parties.
Don’t Put More Money Into Altcoins Than You Can Afford To Lose
This warning is handed out again and again but it bears repeating. Trading cryptos is dangerous. Don’t over-commit with more funds than you can safely squander. People can - and do - lose real money every day even though they’re trading ‘virtual currencies.’ It happens to the best traders, and even more frequently to the bad ones! Try and keep your ego in check even if you’ve been having a run of success.
Even though it’s dangerous, it’s hard to tell anyone to skip trading altcoins altogether. There are opportunities where you can get 10 or 20 times your initial investment back! That’s getting tougher to do in the ‘traditional‘ investment areas.
Altcoins are so new that there will continue to be giant returns for those with the courage, studiousness, and discipline to see trades through to their ends. The key is to strike a balance between being patient and being complacent! You will have to actively watch your trades. You can never take anything for granted. When an altcoin falls out of favor, it falls hard and fast. The rise is quick and high and the decline is sharp and severe! Keep these cycles in mind and understand that Chaos is at play and you’ll do great.
Have you made or lost money trading altcoins? Comment below and let us know how you’re doing! Thanks for stopping by.