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Market Overview

What are the core principles and key players of the cryptocurrency market?
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Speculation

The emerging crypto markets are nothing more than justified or unjustified bubbles. We can only speculate...

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In this free starter you get more information about; crypto assets in general, an overview of the market with its participants and most important what to do next? In case of unfamiliar terms, strategies or abbreviations, you can seek help on the internet! We recommend using google/youtube or YourCryptoLibrary.

Be aware that a critical mind is needed in this information world. Search results can vary from reliable to completely unreliable. So don’t believe everything you read on the internet.

What are crypto assets?

Most of the cryptocurrencies are aiming to be sovereign money that is uncensorable and ultimately a big ‘Fuck You’ to the banks. Bitcoin, the largest and most popular digital currency, was created in response to the economic crisis of 2008.

With the current global climate and distrustful attitude to the current establishment of bankers a global ‘mass movement’ is forming. Resulting in one of the largest capital shift of our generation, the so-called ‘’crypto revolution’, is in the making…

By crypto assets, we generalize different categories each part of a unified market.To plan accordingly and position yourself in the market it is therefore important to understand which those categories are.

  • Crypto Blue Chips: Bitcoin, Ethereum
  • Platforms: Ethereum, Binance Coin, Solana
  • Gaming: SandBox, Axie Infinity, Merit Circle
  • NFT: OpenSea, Magic Eden
  • Privacy: Monero, Zcash
  • Finance/Bank Settlement: Ripple
  • Blockchain solutions: Vchain
 

This list goes on and on, and the blockchain and cryptocurrency world is even more extensive and detailed, in such a way that it is even impossible to list them all in this document. Think about Smart Contracts, Payments, Trading, Gambling, Wallets and so on…

An overview of the market

For you, as a possible trader or investor, it is important to understand what the cryptocurrency market is about. You will quickly realize that crypto markets are heavily influenced by emotion and sentiment. Emotions that are so strong that it ties groups together. Where you have believers on one side and non-believers on the other. 

Some say there are similarities to that of a cult. Because in a cult you have different leaders, rituals and lingo only insiders know. In crypto you have those same beliefs around the future and vision of real money, which leaders and coins are worthy and which are not. 

We’ll take a look at some examples;

  • Satoshi: Bitcoin God.
  • Vitalik Buterin: Ethereum God.
  • Beliefs: Bitcoin Maximalism, The Flippening, Future of Finance
  • Rituals: Buy the dip, Diamond Hands (rituals that many people are very rich and/or dirt poor)
  • Lingo: HODL, FOMO, FUD, GM, WGMI
 

Still, it is important to recognize the possible potential effects of cryptocurrency and where you can distinguish between the life- changing technology and nonsense that you will encounter. Because despite everything, the result of crypto is already fixed, it will transform the world as we know it today…

Market participants

Of course, we cannot lump everyone together but we can try to understand how certain types of individuals will behave in the crypto markets. This is important to know where all things fall into place and which category you belong. 

True Believers

10-40% of crypto asset holders are in love with their particular currency. They believe it will change the world in the long run and proclaim their message any way they can. So the commitment is great. 

The number of true believers a particular crypto counts will be a good indicator of its financial future. The group will do everything to defend or support its currency through thick and thin. Until they have to say goodbye to their money and the tremendous love turns into disappointment and hatred. It may also be that when the group identity is harmed or there is obvious fraud, the masses will turn against the crypto or devs. 

Among the true believers, there are still different types. Someone who holds on to their coins and is not happy until they are on ‘the moon’. A symbolic place that will always be shifted. There is no question of exit strategy. Because when the time comes, coin X will be the new normal. 

Speak about ‘Never ending euphoria’.

Speculators

One difference is that some investors are stuck in positions and forced to believe in the bright future of the currency they are in. They hope the price recovers and will be the first to break even leaving the market. 

Most speculators or investors get stuck in a position, and are called “bag holders”. These are people who, after a drop of 20% or more, are forced not to sell at a heavy loss. “They are bag holders not out of free choice but because they simply have to!” 

The new generation

The younger generation, who have seen their lives transformed by the Internet revolution, still have their full lives to see crypto unfold. They think long term and thus have no incentive to sell in the short term. 

Also, these individuals prefer their own type of “asset,” rather than age old markets that their parents are involved in.

The old generation

The old generation has experience and the knowledge by seeing different markets pass through. They have seen various bubbles form and burst and experienced enough crashes to realize that bankers cannot be trusted and there is no certainty in this world.

This is important for several reasons. The older generation have more assets than younger people. These individuals of more mature age have seen their wealth triple and understand that there is something of value in this emerging world. 

But on top of this, there are several other market participants, think Whales (big business), BOTS (automatic traders), Noobs (people just starting out).

Why is it important to know the market participants?

First, we need to realize that each of these participants is a core part of this market. We can identify and start to move towards how these individuals are going to interpret the information we are given. 

How are they going to assess market conditions and ‘assets’. 

Still, this will remain mostly unpredictable and one cannot speak of certainties. There are several moves in this market that will amaze you with how irrational it all is. Hence, technical analysis is completely ignored at times. 

Be aware that a large portion of the asset holders are ready with a significant portion to dump your cherished tokens if necessary. 

Price Action of Bitcoin

Crypto equals speculation

It cannot be said otherwise. Trading crypto is more like gambling than trading shares of companies. Trading is done in a totally different way than traditional markets. Several pro traders do not understand that the same principles do not always apply in these markets. 

So the technical analysis of crypto assets is different and can sometimes be totally pointless. 

One moment it will seem to work, the next day it doesn’t work at all. 

Crypto trading is speculation in every way. How it will be used, where it will be used, speculating on the fact that other “investors” believe this could hold something of value. 

Who owns what?

For several crypto assets, no one really knows how many of these coins are owned by large groups of whales. You can see the public addresses to some extent, but you can’t know for sure who controls them. Manipulation of these unregulated markets brings the greatest uncertainty with it.

In the traditional market this information is communicated and made public. In crypto this will not be done all the time. That way you have to be cautious and assume more than 50% is owned by insiders.

Unregulated exchanges

In the traditional markets, you have almost all exchanges that are regulated by governments. Exchanges in crypto are not always regulated and don’t have to follow the same rules traditional ones have to.

This creates problems in estimating the ‘real’ value of a cryptocurrency. But also problems with liquidity and price movements. Potentially opening the market up to manipulation. 

Therefore it’s important to understand what exchanges have to offer and where you can sign-up with trustworthy regulated exchanges. Visit our exchange page here.

Exchanges come and go in crypto

Don’t be discouraged by this bleak reality representation. Don’t confuse the usefulness projects that are among the 99% crap projects. Cryptocurrency and blockchain will provide a narrative that will create the financial and information systems and the human consciousness. 

There is and will be value in these markets that can be extracted into your portfolio. Anyone who has a plan and process can make 100% to 400% in these markets. This can be done in relatively short time frames. 

You have to remain patient, planned and controlled and be different than most of the people who participate in this game. Control yourself and fight the urge that wants you to overtrade. Do not follow the habits of the majority without some reflection. This mindset will cripple and crush you in the inevitable disaster scenario it will bring to you. 

The first step in your journey begins with being informed. Be aware that this is an information battle. Whoever has read the first and the best information will be the best prepared. It is commitment and willpower that distinguishes the profitable trader from the losing one. If you want to make money you need to improve and educate yourself. 

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