Altcoins are in right now, success stories all around, millionaires in their twenties making better returns than the best institutions. How is all this possible without anyone losing? Answer: it's not. Altcoins are mostly what's called Pump & Dumps, which means highly manipulated and fundamentally very inefficiently priced. Now with Ethereum's ($ETH) business success and the creation of the Blockchain Application Layer things are only getting better.
Numerous ICO's raising millions of funds for projects with no equity or ownership, just mere speculation. For young traders that just started getting a taste of the markets it's the perfect gateway drug, but on the sell side there's a trader that's been around and is ten steps ahead of you. It's the first experience for young traders of the real world. Lies, emotions and wolves everywhere.
To make money in any market, there's two exchanges that take place, your entry and your exit, the difference between those is either your win or your loss. Altcoins are a long-only market, not including the few margin markets that are available. In altcoins the entry is a long test of patience of early adopters and speculators called the accumulation phase, this is no different than any other fund accumulating a stock position under the radar. Information in this phase is only shared by a few insiders, price will then move up in anticipation which eventually goes into the exit or distribution phase, along the way the primary market force will have already sold a bunch on the way up to FOMO market buyers and will start to put up large sell orders and start taking bids out of late comers, it is as this point PR will be at it's peak, hype generates demand which the main players need to exit.
Above is an illustration of the Pump & Dump cycle I just described, Alpha Trends trade mostly stocks so this shows you this cycle is universal. The Blockchain Application layer provides for much believable projects and the SEC even warned exchanges against listing some tokens that can be considered securities. In short what we are looking at is a huge bubble backed by young speculators who are simply flowing in through the success stories of their peers, as history tells us though, every market has an excess phase or panic phase and this time will be no different.
Numerous ICO's raising millions of funds for projects with no equity or ownership, just mere speculation. For young traders that just started getting a taste of the markets it's the perfect gateway drug, but on the sell side there's a trader that's been around and is ten steps ahead of you. It's the first experience for young traders of the real world. Lies, emotions and wolves everywhere.
To make money in any market, there's two exchanges that take place, your entry and your exit, the difference between those is either your win or your loss. Altcoins are a long-only market, not including the few margin markets that are available. In altcoins the entry is a long test of patience of early adopters and speculators called the accumulation phase, this is no different than any other fund accumulating a stock position under the radar. Information in this phase is only shared by a few insiders, price will then move up in anticipation which eventually goes into the exit or distribution phase, along the way the primary market force will have already sold a bunch on the way up to FOMO market buyers and will start to put up large sell orders and start taking bids out of late comers, it is as this point PR will be at it's peak, hype generates demand which the main players need to exit.
Above is an illustration of the Pump & Dump cycle I just described, Alpha Trends trade mostly stocks so this shows you this cycle is universal. The Blockchain Application layer provides for much believable projects and the SEC even warned exchanges against listing some tokens that can be considered securities. In short what we are looking at is a huge bubble backed by young speculators who are simply flowing in through the success stories of their peers, as history tells us though, every market has an excess phase or panic phase and this time will be no different.
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