Cryptomarket Analogy

By jwenqc | Struggling Noob | 28 Mar 2020


Lets take for example a cup of  milk tea.  The content as the price of crypto.  

Milk Coffee

In normal condition it should have a stable price. 

 

 What make its price fluctuate up and down?

Wave

When you drop something or dip your finger into a cup of liquid it creates wave which size corresponds to the amount of force applied into it. In cryptomarket when we buy or sell it creates fluctuation on the price depending on the volume. Bigger volumes creates bigger fluctuation  and it  takes longer before it stabilize while smaller volume creates smaller fluctuations and it takes shorter before it stabilizes. This fluctuations presents an opportunity. Expert Investors takes advantage of this by buying at low price and selling when it gets higher. 

Since crypto is still at a young age, it is still so volatile to use as a normal currency. So while it is still volatile it presents opportunity to gain but there is also a chance to lose. In the long run if you can afford to hold it for longer period it promises a better future. 

I see that in the future, the price will stabilize and it will be the standard exchange. But for now we will try to benefit from its volatility.  Rides each wave, jump when it is about to fall and ride the next wave.  

 

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jwenqc
jwenqc

All senses: Green. https://coinforged.xyz


Struggling Noob
Struggling Noob

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