Facts: Why Investors Lose Money When Trading Bitcoin

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It’s a simple game if you understand it. Most see trading as a gamble but it should not be.

It’s a game of doubles. There are the bulls who run the show and the bares who suffer the burden of the loss. As true as that might be, not every bare makes a loss. You are either a ‘prey’ or the ‘preditor’ and since not everyone is well covered financially to become the predictor becoming a smart play is very crucial.

Knowing when to stake is the key. Bitcoin has over and over again showed a predictable pattern. Whichever direction the curve is headed it is never smooth. Its a bumpy graph either upstream or downhill. Every time bitcoin makes a significant fall say $200 or more in a span of 24hr demand increases almost always. As a result, the prices take a step upward to cover the demand. It may be as little as $50 but it always crashes in something.

Major Reasons Why Cryptocurrency Fluctuates

There are two major reasons why bitcoin price drops drastically In a small period of time. By drastically I mean in 24hr, skyrocketing or plummeting with margins of around 10% or more.

Major international news tends to affect bitcoin price either positively or negatively.it all depends on how much demand for bitcoin fluctuates which sometimes beats the purpose for creating bitcoin. For example, earlier this month when Trump announced shutting all travels from the UK to try and carb covid19, bitcoin price crashed and has not recovered since then. With a good platform to get this news as they break you can easily never make any losses due to such factors.

The other almost unavoidable reason for a massive fluctuation in prices is a bull trap. This is trading is when the predictor becomes hungry and starts chasing the prey. Smart prey can avoid this but if caught off-guard you are in for huge trouble. The bull might be unpredictable whenever there is speculation of a bull trap chances are 50/50 it’s going happen.

Bitcoin, of course, is the top dog cryptocurrency, which means whichever way the graph points the rest of the altcoins follows. This is unless the is a specific factor affecting any other altcoin individually.