Something to put into perspective..
According to www.coinmarketcap.com:
856 currencies and a Market Cap of over $ 150 Billion USD! That looks great right? But wait, let's look our TOP 10 Cryptocurrencies.
88% of the TOTAL MARKET CAP belongs to just 10 Cryptos.
Now the volume, just a couple months ago, the market were struggling just to have a billion of trading volume in a day, in the last days we've surpassed the 10B barrier.
Taking today as an example:
85% of the TOTAL VOLUME were traded for just 6 COINS
Let's go deeper
Taking BTC which is the TOP between the TOP, THE GOAT, THE NUMBER 1.
OVER 2B of VOLUME in 24H, damn, that's huge, you could think that the market is totally liquid. BUT WAIT AGAIN!
There is no 1 market for BTC, that total volume adds up 400 different markets, that's right 400!
The TOP traded pair today for BTC were XRP/BTC in Poloniex but that just made 7% of it!
My point is... there is no such thing as liquidity for the Cryptocurrencies
I'm not presenting this facts to alarm you, i'm doing it to show the reason behind all that volatility, people get excited when the price of any jump 20% but freak the hell out when it drops 40% next day.
Think of an institutional player tryna invest just 30 million, something like 100 thousand ETH for example.
If he puts a single position to buy the price would jump to the fucking sky!
So, know well in what you're in. If you want to profit hard from a crypto you have to be prepared to ride the long waves UP and DOWN and HODL my friend!
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