Johnny Lyu--recently posted an update on his Twitter account linking to a short article he wrote on Medium. He said that we should ride the dragons in this bear market and seek liquidity. https://medium.com/kucoinexchange/finding-liquidity-in-a-bearish-market-episode-2-ride-the-dragons-aed8e64ed593
In his article he wrote about how retail investors or small-volume investors are trading a lot less in this current market causing a lot less liquidity and smaller order books with which to trade. He says that retail investors or those without tons of capital to risk are trend riders and cannot resist the temptation to sell when the market dips and the urge to buy when the market jumps again.
He says that, "However, just like the western and eastern cultures have completely opposite interpretation of Dragon, one man’s trash may be another man’s treasure. When it comes to professional traders, or institutional investors, or you could call them large-volume users in general, the scenario is very different. What distinguishes these market forces from smaller participants most prominently is that the big fishes calculate, and we here are talking about seriously head-scratching math."
He writes that big investors calculate with complex mathematical models about where the market is headed. He continues that a slow market allows these big investors to really look into the fundamentals of coins and really find the right coins with potential. He believes this will also lead to a healthier and more efficient market in the long-term. “Plus, I believe after the quarters-long and still ongoing correction to the frothy market, more big players from outside, traditional financial market participants specifically, will be lining up to step into the crypto world."
He continues that Kucoin is getting ready to launch version 2.0 with a plan to appeal to more institutional or high-volume traders which will have more features with more advanced API for traders including, fill or kill, immediate or cancel and good till time.
He also hints at projects that are looking at the tokenization of internet projects as a source of real value in this market, saying that if they are able to tokenize a valuable asset such as this then they may have tons of potential. However, if the blockchain technology is not really adding any value to the internet, then it will be a waste of time, resources, and money. I wish he could elaborate more on which projects he is talking about here, but it is a vague comment.
One of the last thoughts he leaves us with is,"Thus, ride the eastern dragon to the moon, or be eaten up by the western dragon? Be vigilant, my friend."
A bear market can be a good thing for the patient trader or investor. It can reset the market and weed out the unsustainable projects and separate those with true potential and value. I completely agree with the sentiment that you gotta stick with the dragons in such times like Bitcoin and Ethereum among other high market cap coins that will survive the turmoil and lead the recovery....though it is nice if you identify a winner among the less established actors that can give an astronomical ROI.
Yes, most of these low cap coins will just be washed away. Which ones is hard to say, but it is already happening right now. If the team is active and capable of being creative in this bear market then they will survive. But there are too many coins that are all competing with each other for the same tech, and the pie slices are getting smaller.
For people who do not have the courage to take the risk of trading, the best solution is to buy when the price is small and wait long time until the price increases to sell.
like a giant bat, it's really scary
an investor on the blockchain must really be able to analyze the right time to buy and sell. For me it is quite difficult because I have not experienced it yet.
yes, a smart investor will always see a gap as an opportunity. there must be risks but decisive actions
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