LIVE[Understand The Market And Save Yourself]
Your coin isn't special, no matter how great it is.
The correlation between the price movements of various cryptocurrencies and Bitcoin (BTC), the leading cryptocurrency. Correlation refers to the degree to which two variables move in relation to each other. In this context, if a cryptocurrency is said to be highly correlated with Bitcoin, it means that its price movements tend to mirror those of Bitcoin to a significant extent.
- High Market Cap Cryptocurrencies: These tend to have a stronger correlation with Bitcoin. Simply put, when Bitcoin's price changes, the prices of these larger cryptocurrencies are likely to move in the same direction. This is because high market cap coins are seen as more stable and established, drawing investor behaviors and market trends similar to Bitcoin.
- Low Market Cap Cryptocurrencies: These are usually more volatile and may not follow Bitcoin's price movements as closely. Their smaller size makes them prone to larger price swings, influenced by speculative trading and market dynamics. While they may respond to overall cryptocurrency market trends, including Bitcoin's movements, their price changes are less predictable.
If you want to become a professional investor, you need to balance the risk and reward ratio.
Invest at least 80% in the coins with large to medium market cap that are closely correlated with Bitcoin.
Don't let the greed overtake your rationality.
In the long run, you will be a winner with millions in wallet.