With Wall Street mainly focused on the economic downturn this year, crypto was initially considered a haven from inflation. But, the plans slightly backfired on those seeking shelter through digital currencies. After all, it is a heavily traded commodity. The 2022 crypto winter is entering its fourth month, with many investors panicking before the end of the year.
As per Forbes, the average winter lasts four years, but some informed decisions could be made to reduce the losses and increase overall gains for many investors. The fact remains - all major crypto price tags have dropped, alongside the actual value of money. But the downturn, like any market crisis, is where much money could be made. What could be the silver lining?
This challenging question boggles even the most well-informed minds. Bitcoin (BTC) and other currencies are not quite like something you could find in any publicly traded company or commodity. If a company is used as an example, the dividends paid can trickle down to shareholders easily, clearly showing the company's strength against an entire sector.
For crypto, with no mechanism to provide investors with constant income – besides borrowing – its value is the only thing that continues to draw investors in. However, the speculative nature of this market is held together with concrete industrial uses arising from technological advancements surrounding the market.
Coins like BTC and Ethereum (ETH) have beneficial technologies that help them retain high-value positions, but the market is expanding, and the currency is becoming more scarce. They are also very much part of the mainstream market, and the mainstream market always recovers. For instance, long-term yielding stocks are the backbone of many people's pension plans, with their savings heavily resting on private equity with 1% to 3% yearly value increases. It's only time before the world sees the same trend with crypto. But how to know what is happening?
Making informed decisions
Lux Algo says the best thing about trading crypto is that the traders enjoy volatility. On the other hand, micro-volatile trades surround the crypto market since the value of its most traded coins, ETH and BTC, are stuck somewhere in the middle. With most of the industry operating seemingly behind closed doors, the new entrants to the trading game rarely understand the connection between crypto and the non-virtual economy.
Payroll trends and liquidity of the Federal reserve heavily impact investors' spending ability, leaving little wiggle room for possible passive strategies. Despite that, they are the most common approaches seen today. Money is being lost, with little available to push into the market. As per Sean Mack, the founder of Lux Algo, the biggest problem lies behind understanding the data.
With over 50,000 users worldwide, Lux Algo is one of the most popular vendors dealing with technical indicators of market fluctuation. Lux Algo, the trading platform founded by Sean Mack in 2020, offers investors some needed clarity. Mack says it can be hard to separate the truth from panic and make informed decisions with all the noise surrounding the current markets.
People looking to invest do respond best to visual stimuli. Data visualization can heavily impact the decision-making process of every potential investor. As per him, that is precisely what Lux Algo offers. Besides that, the opportunity of entering the market at a relatively lower cost could pan out long-term.
Salvation always lies in data
Sean Mack started Lux Algo with the primary goal of providing clarity to investors dealing with technical indications. The platform's tools can be used for scalping, swing trading, day trading, options trading, and much more across the stocks, indices, forex, futures, currencies, and commodities markets. The Lux Algo brand has created many of the most popular tools on TradingView, making the information interpretable to all its users. One example of the features the team created for this is signal optimization.
For Mack, who has a background in visual arts, simplifying the investing process and bringing more people to the market is very important. Also, considering the crypto market has such high returns, the younger investor might be drawn to it organically. Catering to the younger investors is one of the more critical aspects of business that Lux Algo does. Especially to the content-obsessed Gen Z.
It's a matter of mission for Lux Algo to impact that kind of new trend, which is why Mack is currently exploring different types of visualization methods. Like he says: "Gen Z is there, and they're looking at charts. Younger people like to speculate on markets and predict where markets are going to go. We want to cater to them."