Hi Steemians, it is your friend steemer here again.
I was recently reading an article on 7-crypto trading tips on https://cryptopotato.com/7-crypto-trading-tips-common-mistakes/. It is an interesting article that discusses about value of bitcoins vs other alt-coins on the basis of technical analysis. When you are talking about crypto the most common mistake we make is not looking at the fundamentals of a coin. In every investing method we have to weigh in the market capital and also how the coin is trading but the most important point is the news that drives the emotions of people who are investing into the alt-coins or bitcoin
Putting value in the real value of the coin instead of looking at what everyone is investing in, is the biggest mistake that we make (following the crowd). I think when we follow the crowd without looking at the fundamental value of the coin and the value it can offer to the world, we look at pumping the coin to an unrealistic value.
Whenever I look a coin, I look at its project and the fundamental value it provides, this drives the real value and the potential to earn from its growth. I like crypto also because you can trade in micro-transaction and many people don’t realize this. The only challenge I see is the transaction costs that keep going higher so that increases the minimum amount you need to spend to get your chunk of that crypto.
It is always advisable that we diversify our portfolio even with coins because you never know when a project goes down and that has happened many times with cryptos and ICO’s. It is a common mistake that an investor does as value of one coin has increases, we look at other low value coins because we have only a limited amount of risk to take and we want more. I would say look at quality of the project and the quantity does not matter because if the project is good then it will sell and the market capital will rise.
Thanks for reading and I would like to hear your comments.