The BTC Dominance Index is an indicator that shows bitcoin’s share in the total capitalization of cryptocurrencies. The higher dominance is, the more considerable influence of BTC on marketAccording to the analytical website Coinmarketcap, the total value of all cryptocurrencies in the world is $985 billion, of which $380 billion, that is 39.5%, accounts for bitcoin. This index is called the “dominance of BTC”. The TradingView service began calculating the index in March 2014, and during the first three years, the index was at a level of more than 95%. BTC DOMINANCE INDEX IN 2014-2017 In 2017, the ICO boom began, after which retail investors started actively investing in altcoins. This caused bitcoin’s dominance to fall and the capitalization of other crypto projects to rise. During the “bear cycle”, when the crypto market was in decline in the 2018-2020s, BTC’s dominance was growing, but the price of bitcoin itself was declining. This is because the volatility of altcoins is much higher than that of the main cryptocurrency. Due to this, altcoins rise more in a bull market and fall more in a bear market. BTC DOMINANCE INDEX FOR ALL TIME BTC dominance does not necessarily correlate with the price. When bitcoin’s value falls, and other cryptocurrencies’ prices fall at a similar rate – BTC dominance will remain at the same level.How to use BTC dominance in trading?BTC Dominance Index shows the interest of investors in the main cryptocurrency. If the dominance is growing, users accumulate Bitcoin and get rid of other assets. If the dominance is falling – then the priority is to buy altcoins. Thus, the dominance index is an auxiliary tool for forming an investment portfolio. The index gives traders an understanding of whether to move funds from bitcoin to altcoins, invest more actively in altcoins, or wait out market fluctuations by converting capital into stablecoins.#BTC #xrp
1.Disbelief. After a bearish trend, many novice traders hesitate to jump back into trading. They often choose caution, re-entering the market only once a clear upward trend starts forming. During this phase, seasoned traders usually seize the opportunity to buy assets. As a result, beginners frequently miss optimal entry points, later ruing their caution.2. Hope. This stage can be likened to overconfidence. During brief periods when the asset's price climbs, novices might lower their defenses, investing more than they should, while neglecting the possibility of price retractions or corrections. To sidestep such oversights, it's beneficial to familiarize oneself with the Elliott Wave Theory.3. Optimism & Belief. Greed commonly influences beginners at this juncture, leading them to overreach. They might, for example, start to utilize more significant leverage in hopes of amplifying potential profits. The advice from market pros: “If you're not adept at reading market indicators, it's wise to limit leverage to 1:5.”4. Total Euphoria. This is the most treacherous stage for a novice trader. They often feel they've cracked the market's code, making them feel invincible. In their overconfidence, they may forget the unpredictability of the market and neglect essential safety measures like setting a stop-loss. A wise guideline during these times: “If you've earned more than you projected, close your position and step back.” Earning $100 is far preferable to losing $500.5. Complacency. When the market trend starts to reverse, those traders who were riding high on euphoria just a day earlier typically console themselves by thinking it's merely a temporary correction and believe the price will bounce back shortly. They might resist taking action, holding onto their positions longer than is prudent.6. Anxiety & Panic. These emotions come into play when the market's movement sharply diverges from the trader's expectations. During this turbulent phase, they usually make the most mistakes. They might sell assets at a lower value than they bought or make rash investments, trying to recover their losses.7. Depression. This is when disappointment sets in, either with the chosen asset or the entire market. Burned by their experiences, many traders exit the market, promising themselves they won't venture back.For those who remain resilient, the emotional roller coaster starts its cycle again, albeit with less intensity each time. With every round, the fervor of these emotions lessens. By understanding the psychological highs and lows experienced by every market participant, you can guard against potential setbacks. Recognizing how emotions can hinder your market awareness may help you make more informed decisions.Successful investors consistently detach themselves from emotional turbulence and make their moves precisely when the majority are panicking.
Wall Street Cheat Sheet: Trading Psychology Every newcomer on the trading floor grapples with a rollercoaster of emotions that seem to shift chaotically. However, seasoned market players recognize that these emotions don't change at random; they follow a particular sequence. Understanding this sequence is crucial to ensure that emotions don't undermine sound decision-making. Psychologists studying the challenges faced by traders have identified a tight-knit relationship between the changing market cycles and traders' moods. They argue that these two factors are intertwined, emphasizing that the market isn't just a theoretical concept; it is deeply rooted in the behavioral tendencies of its participants. In other words, there's a clear correlation between price fluctuations and the psychological dispositions of traders. Seasoned Wall Street traders have crafted a cheat sheet for newcomers. It displays a chart that juxtaposes the progression of a representative asset with the evolving emotions of a trader during price fluctuations. To prevent financial missteps in the market, it's essential to grasp these emotions and not allow them to dominate decision-making processes.
#MyFirstFeedPost Hello, Binance Square! 📊 Total transactions: 10M+ Wallet addresses: 2.5M+ Total blocks: 130K+ Wondering what are these metrics and what's behind them? Meet the HAQQ Explorer! First up, what's a blockchain explorer? It's like a search engine for public blockchains. Explorers allow you to check every transaction posted on the blockchain from wallet addresses in real-time. Think of it as Google but for blockchains. In our case, we have the HAQQ Explorer. With HAQQ Explorer, you can: View transactions as they happen Check the balance of any address Verify the details of smart contracts All transparently and in real-time! Ever made a transaction and wanted to check its status, whether confirmed or rejected? With the HAQQ Explorer, you can track it in real time, ensuring peace. Why is this important? Transparency. With the HAQQ Explorer, you can verify transactions, check balances, and cross-check the integrity of any contract on the network. Remember the popular blockchain maxis: Don’t trust, but verify? For an EVM equivalent chain like HAQQ, community members interact with dApps running as smart contracts. It is important that anyone can easily paste a contract address on the HAQQ Explorer to see activities going on in the smart contracts. How many tokens it has minted, when it was deployed, and other vital info that may be required to make a decision when interacting with such contracts. HAQQ recently recently surpassed 2.5 million wallet addresses. A phenomenal milestone for us! That's comprising ISLM holders, community members, HAQQ builders, and HAQQ Wallet users. Each wallet represents a personal account on our network. 130K+ blocks? Each block is a set of transactions bundled together. It's like a page in the grand ledger of our blockchain. And new blocks are added to the network roughly every 5.7 seconds.