The world is bustling with people, all for profit; the world is moving, all for profit! Hello everyone, I am your friend Lao Cui Talking about Coins, focusing on digital currency market analysis, and strive to deliver the most valuable currency market information to the majority of coin friends. Welcome the attention and likes of the majority of coin friends, and reject any market smoke bombs!
In this article, I will talk to you about investing in small currencies, because a large part of the users who have found Lao Cui recently are doing small currencies, especially some people are doing contracts for small currencies, which is indeed a bit beyond Lao Cui's expectations. After communicating with everyone, I found that everyone's understanding of small currencies is still relatively lacking. Friends often confuse small currencies with altcoins and talk to Lao Cui about some unknown small currencies. Lao Cui has not done a specific investigation. Everyone should know that all the currencies in the currency circle, including those that are not listed, are at least hundreds of currencies. Lao Cui really can't understand so much knowledge alone. Especially for newly issued currencies, Lao Cui is even more difficult to understand.
Today, I will share with you my opinion on small currencies. First of all, the most blind thing is to look at endorsements. Many big guys promote this currency a little bit, and everyone blindly rushes to buy it. This is the effect that other big guys want. A very typical example is the platform currencies such as FIL and SHIB. They are very hyped, but in fact, they are of no help to the currency circle. The technical publicity is usually new technology, black technology, and even breaking the tradition of the currency circle, and so on. In fact, these news cannot be verified. To put it bluntly, it is a publicity gimmick to get everyone to buy. This type of currency can usually be purchased in the short term, but cannot be held for a long time.
Especially recently, many small currencies have ushered in a surge in the glory of the bull market, which has indeed attracted the attention of many friends. So many coin friends have found Lao Cui and want to invest in this kind of currency. Why do small currencies also rise so much? This requires talking about the underlying logic. The emergence of Bitcoin is like the foundation of a house. Other currencies are built on this foundation. The appreciation of land will naturally make the house more valuable. In fact, it ultimately depends on whether Bitcoin appreciates. The current growth of small currencies is only due to the rapid appreciation of Bitcoin, and then small currencies will follow the rise. This has created a false impression that the volatility of small currencies in the short term is greater than that of Bitcoin. But if everyone asks Lao Cui to recommend small currencies to coin friends, Lao Cui really can't tell which one will have a volatility greater than the growth of Bitcoin in the short term. The volatility of the compensatory rise is all unpredictable, and the overall growth will basically not exceed the amplitude of Bitcoin and Ethereum.
Then there are the altcoins. You can observe the fluctuations of altcoins, which are actually more obvious. In the bull market stage, many currencies did not experience large fluctuations. So in the short term, these currencies can be excluded. Based on the research and development and optimization of Bitcoin, it is easier to judge. As long as there is no channel circulation of its own (TRC20 and ERC20), such channels are altcoins. The characteristic of altcoins is that they are like dogs lifting door curtains---all relying on a mouth. It is completely based on the hype of public opinion to make the currency appreciate, and then cut everyone's knife. Those with conscience will increase and cut everyone's knife a few more times. Their characteristic is that they are born to cut leeks, so their trend is almost not moving with the overall market, and it depends entirely on the intention of the dealer. Therefore, altcoins must not be touched.
As long as it is based on Bitcoin research and development, small currencies can indeed be invested, but the rate of return is definitely not as good as Bitcoin, Ethereum and Binance Coin. For spot trading, it is definitely the first choice and worth holding for a long time. However, due to the limitation of its size, small currencies are easily manipulated by large funds to grow and fall, so small currencies must not be selected in the contract method. The smaller the size, the easier it is to be manipulated, which is why everyone thinks that in the short term, the growth form of small currencies is better than Bitcoin and Ethereum. It is all controlled by capital behind the scenes. Remember that contracts cannot be selected in the form of small currencies. Contracts can only do the fluctuations of Bitcoin and Ethereum, and short-term fights are very easy to be manipulated by large funds. This series of risks must also be avoided.
Finally, to sum up, the first choice for spot trading is Bitcoin, Ethereum and Binance Coin. Secondly, if the amount of funds is limited, you can choose small currencies (with their own circulation channels). Finally, don't touch altcoins. These are the choices we can give you in the bull market. As long as you steadily follow the answer given by Lao Cui, you will definitely make a profit! I wish you all great wealth and good health!
Lao Cui’s message: Investing is like playing chess. Experts can see five, seven or even more than ten steps ahead, while those with lower chess skills can only see two or three steps ahead. Experts consider the overall situation and the general trend, and do not focus on one piece or one place. Their goal is to win the game in the end. While those with lower chess skills will fight for every inch of land, frequently switch between long and short positions, and only try to win in the short term, resulting in frequent setbacks.
This material is for learning reference only and does not constitute a buying or selling recommendation. If you buy or sell based on this material, you will be responsible for the consequences! #热门话题 #near #BTC