What is the reason for the decline in alternative currencies and your loss in this course?
Why is this course different from previous courses?
What is the reason for the collapse and abandonment of projects?
Tips to reduce your losses and enhance your chances of recovering your capital and possibly also making a profit!
Tips for new traders and investors in cryptocurrencies
Necessary information
1/🧵
We start because of the decline in alternative currencies and the loss of most in this course
In my humble opinion and experience in the market
I noticed that most currencies in this cycle have a common denominator, which is inflation that most people do not pay attention to when buying
More than 80% of projects are:
10% of currencies are offered for trading
90% of currencies for the team and investors with a rapid closing schedule and very bad inflation, and every period the market is flooded with these currencies; these actions have one result »»» stability of the currency price if the project is strong or often a collapse of the price week after week
The second reason is the absence of oversight and the leniency of the Trump administration with cryptocurrencies opened the door for founders and project teams to be scammers to take a piece of the pie; we did not see this when Gary Gensler was the head of the Securities and Exchange Commission
2/🧵
Why is this cycle different from previous cycles?
In my humble opinion, this is due to the entry of investment funds among them
Blackrock
Fidelity
Vaneck
Their focus is one and it is Bitcoin, which caused most liquidity to concentrate on it
Since the entry of funds, Bitcoin has seen a continuous rise from areas of 40,000 to a peak of 126,000, but alternative currencies did not have a significant share of this liquidity
For alternative currencies, it was difficult to create a crypto project in previous cycles due to a lack of developers and the difficulty of regulations, unlike this cycle where you can create, for example, a decentralized trading platform with just one click + creating currencies in seconds
And because of the abundance of currencies that we see every day, new projects are launched that take liquidity, this has caused liquidity to be scattered and not concentrated
3/🧵
What is the reason for the collapse and abandonment of projects?
The abundance of projects in this cycle made us see strong competition for users
Users = profits for the network = continuity and support for the team for continuous development
This matter is almost impossible currently with the abundance of projects and the scattering of users; even phone farms used by scam projects to mislead people that their network or project is being used by many people faced demand 😅
Secondly, the absence of oversight for market makers and giving them the green light to manipulate strongly
4/🧵
Tips that reduce your losses and enhance your chances of recovering your capital and possibly even profiting!
First thing is an investment advice ⚠️
If you have inflated currencies that are going from one bottom to another, I see that you should exchange them for strong currencies with little inflation like Solana, for example, or platform currencies that are mirrors of the platforms and it's essential they maintain their reputation
Jumping from one currency to another is really dangerous and in past cycles it caused many losses because liquidity was concentrated and available; you could switch your currency and then it would rise, but this cycle is completely different; alternative currencies are almost dead and liquidity is only in strong currencies
This is how I see capital recovery possible and also profit, but this is just my opinion and not
Advice ⚠️
5/🧵
If you are new to the field, my advice to you is to stay away from all new currencies that all operate in an inflated format as I mentioned
10% of currencies are offered for trading
90% of currencies flood the market and fill the pockets of investment firms and project developers
Even if you find a non-inflated currency, the market maker can cause its collapse due to the absence of oversight and the greed of the founders
Work with DCA and buy in stages, not all in for strong currencies only
6/🧵
We have reached the end of the thread; this is a personal opinion based on my humble experience in this field and not asserting that my opinion is right or anything like that
I hope you like it and I'm sorry if I took too long ❤️🤝
