A cryptocurrency is a digital currency that is created and managed through the use of advanced encryption techniques known as cryptography.
You're only look at the top results for the biggest gainers and losers on Coinmarketcap when you make investing decisions. Most of these coins were just pumped. See #l. Sometimes these coins make for good investments, but only if the product is strong or there are enough investors that won't move on to another coin after they've made their profits.
You're investing in a coin that is already worth millions like BAT or Basic Attention Token and thinking you're going to double your money in just a few days.
All I can say is that this is not very likely to happen in 1 or 2 days with a coin worth this much. BAT coin is currently worth $345 million, and forit to double overnight it would have to reach a market cap of about $700 million. This is not impossible, but it is very unlikely to happen quickly. Basic Attention Token might be a good long-term investment, but it is probably not a great short-term investment.
I'm thinking of this because this says very little about the value of an asset. If youI vere to think logically about the value gasoline for that matter. I doubt your way, f looking at its value would be to attempt to predict if others would be willing to ay the same price for the gallon. You know you need it, you know it's going to be lsed, so you simply purchase it.
I'm aware some might disagree with me on this matter, but I'm willing to backup. my claims. An exclusive speculative market is extremely vulnerable to short term sentiment. If someone is speculating on Steem for example, that speculator is hardly interested in the long term valuation and a lot more in the short to medium profits to be made. This in turns gives Steem its current volatility making it harder for Long term investors to make the leap.
You're not selling for profit... If you think a coin has just been pumped then it likely won't stay that way for too long. Take for example STQ (Storiqa) a month ago or so. It got listed on Indodax and had a market cap of $50 million. which then rose to $150 million in just 2 days. This kind of growth is usually very unsustainable. So if you had sold Storiqa at the top you would have just doubled or tripled your investment. But if you wait too long it will crash and you will have lost this opportunity. Storiqa is back to a current market cap of about 26 million. There is always a chance that a coin like Storiqa takes off and never hits the ground again, but more than likely it will rise and fall in cycles.
Since it seems a little obvious to me at the moment that the speculative market is mainly driven by market sentiment, it's also obvious that if someone would want to do something to improve the value of an asset, that contribution should be tocused on improving sentiment. In other words, a positive representation of the asset, a proposed application, a working product.
