How to Win at the Crypto Investment Gameby@cryptoengineer
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How to Win at the Crypto Investment Game

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Buying cryptocurrencies is a game. The main rule is to strike a balance between opportunism (gains) and losing money. Cryptocurrency market cycles are influenced by two main factors: 1. Traditional economies and profit cycles 2. The psychology behind investors' behavior is primarily greed and fear We can use "raw" materials from inefficient markets to outperform other market players. This leads to mispricing, where some tokens are either underpriced or overpriced. Inefficiencies, mispricing, misperceptions, and mistakes that other people make are opportunities for superior performance. You need to be on the right side of those mistakes. To be better than the market and other investors, you should have Insight, Different reactions and behavior, and Luck. In investment, assuming something sounds excessively great to you, you are correct. The majority of investors think that mastering it is the key to success in the cryptocurrency market. But investing is not a game of chance. In the long run, the person who can predict prices better in the short term might not come out on top. Prices always represent the expectations of investors and include: 1.Fundamentals 2.Psychology 3.Nonfundamental factors affecting supply and demand

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Buying cryptocurrencies is a game. The main rule is to strike a balance between opportunism (gains) and losing money. Both winners and losers want to win this game. They have different approaches to how to play the game.

https://twitter.com/CryptosEngineer/status/1508867326212464650

Numerous new individuals are drawn to the cryptocurrency market by the promise of incredible profits. It could change the game for the majority of them. The only way they can make a lot of money that will change their lives is in this way. Many investors compare it to a lottery, where you bet to increase your chances of winning.

Cryptocurrency is distinct from lottery games. While luck is necessary, it is insufficient to stay longer. Many investors think they can influence returns. People frequently believe that there is a universally effective strategy for this game. You will succeed if you discover it. Where do I look for it, then?

I'll share the following 3 crypto investing game rules with you today:

  • Rules can change
  • No one will tell you how to win
  • Investing is not a guessing game

Market Cycles

https://editorial.fxstreet.com/miscelaneous/gvelazquez-20191028-trading-psychology-curve-637079229362738644.jpg

https://editorial.fxstreet.com/miscelaneous/gvelazquez-20191028-trading-psychology-curve-637079229362738644.jpg

While there are many cyclical rules in cryptocurrency investing, some can change over time. The key to mastering this game is understanding this dynamic. Cryptocurrency market cycles are influenced by two main factors:

  • Traditional economies and profit cycles have less of an impact than the real world, which has more. Cryptocurrency market conditions are impacted by events in the real economy. Price is affected by growth, regulations, and inflation. To succeed in online markets, you must understand the offline world.

  • The psychology behind investors' behavior is primarily greed and fear. No one is buying when there is fear, and cash is king. Fundamentals are irrelevant when market participants are greedy. By investing in riskier assets, everyone is seeking higher profits.

Every cycle is unique. Additionally, we are unsure of the current timing. This is only readily apparent when examining the chart's left side.

We can use "raw" materials from inefficient markets to outperform other market players. This leads to mispricing, where some tokens are either underpriced or overpriced.

Since everyone wants to profit from this, it is difficult to identify these inefficiencies. A deal must have a purpose if it is to exist. Why don't other investors see it? You should always be aware of who is purchasing or selling from you on the other side of the transaction:

  • Who is going to “pay” it by long-run underperformance (why other investors may take the wrong position)?

  • Why other smart investors do not arbitrage away perceived opportunity (why don’t have other smart investors)?

Inefficiencies, mispricing, misperceptions, and mistakes that other people make are opportunities for superior performance. You need to be on the right side of those mistakes.

This is my checklist for finding these opportunities:

  • Don't you overlook some hidden risks?
  • Why does someone want to sell it to you?
  • Do you know more about the assets than the seller?
  • Why someone else didn't buy it before you?

So, how to outperform in any market? To be better than the market and other investors, you should have:

The task is not easy, but how else do you want to get a market edge? Many investors want to simplify this process by outsourcing this to Signal Groups.

Signal Groups

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Some people are better at something. We can also see this phenomenon in the investment world. Some:

  • Investors like Warren Buffet have better results than average investors
  • Country indexes like SPY are betting others
  • Crypto projects are existing in different cycles

Investors seek out those who have more knowledge than them because of this. These experts are accessible on a variety of social media platforms, including Twitter, Telegram, and Discord. Of course, this knowledge is very beneficial. You might gain a benefit over competitors. If you can, think about:

This will resemble playing a game with swindles. It is then clear that this information must be costly and secure. Assuming you share it with anybody, your edge will vanish. Do you want more proof that you need to pay for admittance to this?

In investment, assuming something sounds excessively great to you, you are correct. This is additionally the situation with signal groups, paying little heed to which medium they use.

What verification of their past performance do you have? Your group can be right for just any random reason. Past performance doesn't ensure future outcomes. With many different signal groups, large numbers of them will be correct. Sadly, we don't have the devices to express this ahead of time.

Keep in mind, that this market is repeating, so we have promising and less promising times. The best failures can be winners in various economic situations. Despite cycles, a great many people are just worried about the cost of their tokens.

Price

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The price dominates discussions about cryptocurrencies. Everyone wants to guess this magic number. It is comparable to an alchemist's philosophical stone. Why is the price so crucial? The majority of investors think that mastering it is the key to success in the cryptocurrency market. But investing is not a game of chance. In the long run, the person who can predict prices better in the short term might not come out on top. This is what I wished to convey in my Cryptocurrency Investment Framework. You need to be successful in many areas.

And what is the price then? This is information. Prices always represent the expectations of investors and include:

  • Fundamentals
  • Psychology (how investors feel about fundamentals and value them)
  • Nonfundamental factors affecting supply and demand

These three factors interact with one another, and the result is a price. Each price reflects a brief agreement on value among buyers, sellers, and uncertain traders at the time of the transaction. Every chart pattern you see on the screen has a group of traders behind it. As an investor, you must comprehend this game mechanic, identify players, and practice winning.

Price is determined by 4 main factors:

  • Mood and Momentum - Price is determined in large part by mood and momentum, which, in turn, are driven by behavioral factors (panic, fear, greed).

  • Liquidity & Trading Ease - While the value of an asset may not change much from period to period, liquidity and ease of trading can, and as it does, so will the price.

  • Incremental information - Since you make money on price changes, not price levels, the focus is on incremental information (news stories, rumors, gossip) and how it measures up, relative to expectations

  • Group Thinking - To the extent that pricing is about gauging what other investors will do, the price can be determined by the "herd".

3 Rules

Three rules that I've shared with you today can help you win crypto games. Switch to gambling if you simply enjoy playing. Winning in a crypto game can alter your financial situation. It has its mechanic, just like every game:

  • Rules can change
  • No one will tell you how to win
  • Investing is not a guessing game

Learn these and practice to increase your chance. Luck can be helpful to win in one stage, but not a game.


What Next?

In future posts, I will discuss the new process Cryptocurrency Investment Framework.

Stay tuned and follow me on Twitter to get a sneak peek of what is coming!

Disclaimer: Nothing in this article constitutes professional investment advice. Please do your own thorough research before making any investment decisions.

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