Control of emotions is a key factor for effective investments
The last weeks have been extremely interesting and dynamic for the crypto market. Bitcoin reached its record value of 42,000 USD. This is more than twice as much as during the record-breaking ratings in December 2017. Interest in Bitcoin has increased significantly and the topic has been analyzed by the world's largest media. The last few days brought a decrease in these ratings, but it is worthwhile to analyze investors' behavior on this occasion.
The cryptocurrency market is significantly different from the traditional stock exchange. The following changes are more dynamic. Consequently, profit from trading in specific crypto-assets can be achieved in a much shorter time. On the other hand, the dynamics of the cryptocurrency investment process requires more caution on the part of investors.
It is said that emotions are the worst advisor. This principle works perfectly well in the case of crypto investments. Due to the possibility of significant price fluctuations, the ability to remain calm is even essential. However, many investors, especially beginners, very often panic when they see the exchange rates fall. Such behavior can bring a lot of losses that could be avoided by controlling the emotions.
The last drop in Bitcoin's quotations, although it seems significant, was expected by experts and analysts and they consider it necessary. According to Jehan Chu, founder of Kinetic Capital, this adjustment may be a good starting point for long-term investors. The expert also expects Bitcoin's price to rise to $50,000 by the end of the first quarter of 2021 and to rise to $100,000 by the end of the year. David Lifchitz from ExoAlpha is of a similar opinion, who sees the latest correction as an opportunity to build a good base towards $50,000 and more.
Control of emotions is a key factor for effective investments. It is important to remember the rule that trading is 10% buying, 10% selling, and 80% waiting.
Smart Trade Coin Team