TL;DR - if you want rewards from crypto - put in a little work yourself as well - rewards will soon follow, because unlike the traditional stock market, in crypto, people can have an impact - provided it’s a large enough amount of them.
Everybody has different opinions and I believe that nobody is that far from the truth, however, I see a bigger picture and the biggest reason for the volatility and drops not being raised by most people: the number of people involved in crypto.
The main issue with volatility and dumps (as well as with the pumps) is the fact that we don’t have that many people involved in crypto, therefore, the “so-called whales” with a few million to their name, can use leverage short/long and make waves in a market that doesn’t really have big players to challenge them.
If they went to the traditional stock market, they would probably be eaten alive and liquidated, but in crypto, with a low market cap, with lots of projects that haven’t released their products yet and haven’t started to gain real-world adoption, it’s still a market of speculators and there’s plenty of opportunities.
Here are some numbers:
- the first drop wiped - 12 billion out of the market cap
- second drop - 5 billion
- third drop - another 5 billion
In order to move a 100 billion market cap - you’d only need probably 20–50 million $ to do so - hell let’s make it 100. How does this stack up to the traditional stock market?
“NYSE, representing $18.5 trillion in market capitalization, or about 27% of the total market for global equities”
The conclusion to this point is that until big players find good projects/reasons to start investing in crypto, these swings are still decided by mini-whales.
I am a crypto enthusiast. I want to help. What can be done to offset speculators/market manipulators? Can I do anything at all?
Glad you asked.
Technology-wise, I believe things have changed dramatically over the past year. The men have been separated from the boys and the age of dumb money has dawned. On the bright side, people involved in crypto have become smarter, faster than I would have thought and it’s a pleasing thought because I hate to see people losing money for not being savvy enough.
- Crypto has stopped making moves on rumors and fake news
- Exchanges have become more secure
- KYC/AML has become a nice standard practice for the majority of serious projects
- but the most important thing is that crypto never sleeps and the technology is evolving at an incredible pace and even though we have been rocking a bear market, there are a bunch of projects that have been working hard on their products
What can you do?
You probably understand where I’m going with this by now. Crypto means the power to the people, but in order for power to be given to the people, people must partake in the power-sharing. If people are unaware and uneducated of the possible benefits and rewards, then they don’t get any power and crypto doesn’t get stronger either. Here are some tips on how to be an influence, instead of following the pack:
- The markets have gone down 85–95% - what more can you ask for? - now is a good time to average down your costs if you have been holding, or buy small chunks of BTC/ETH/XRP every month as an investment.
- Educate your peers about crypto - people will not join in on something they don’t understand. If you can’t explain your favorite crypto project to your dad in 1 sentence and him to understand immediately - you’re doing something wrong.
- If you are a bright young man or a woman, get your brain to work, build a killer blockchain app and be one of the innovators yourselves. The thing with blockchain is that with the market being small, there’s a huge opportunity for smart people with amazing ideas to get things done and the rewards are equally amazing.
I just hope you realize that albeit 10 years have passed since this amazing tech has come alive, we’re still very early and there’s plenty of opportunities.
As a send-off I am giving out an 80$ sign-up gift to my favorite money-sending app - Crypto.com Wallet & Card App (http://crypto.com/) which allows you to buy, sell, track and send crypto.
To get you started, I am sending you a sign-up bonus of $80.00 USD. Download the app and sign up, it's super easy. Use my referral link https://platinum.crypto.com/r/6higc8a6of (https://platinum.crypto.com/r/6higc8a6of) with my referral code: 6higc8a6of to claim your bonus.
I think I have about 20 codes left, so - first come first serve
If you guys want some more things added to the article or if I left anything out, feel free to leave a comment and I’ll oblige.
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