As we pointed out in one of our last articles: Before aiming for the stars in crypto one should do some homework and research the potential pitfalls, scams, FOMO into Pump and Dumps.
The list is not endless but it is bigger than in any other market. Most forget that this market is not regulated and only a few percent of the market participants get rich quick.
Unfortunately, for the majority the opposite is the truth. Unless you entered the market at the exact right time and were lucky or smart enough to hold the few percentages of cryptos that made insane gains, you still had to be very good with timing and sell at the top of the wave.
What makes this market so attractive is that the barriers of entry for new participants are exceptionally low compared with traditional investment opportunities like stocks or real estate. But the low entry barrier is also one of the first pitfalls. It requires practically zero knowledge or experience to trade these markets. If it was not so tragic, it would be almost funny that the majority of traders do not even know their trading style.
Before reading this article further it is highly advised to dive into our post and learn more about the five common types of trading styles: Crypto Trading 101: 5 Types of Trading Styles
If you are new to trading this article is a great introduction. You can learn about different trading styles from a Pro Trader who gained his knowledge from years of experience. What works in traditional investment classes does not necessarily work in crypto.
You are not really able to determine the value of a company as it is the case with traditional companies. Let‘s take the example of the company “Salesforce” which is a tech stock you should be familiar with, if you are into forward looking technologies in hypergrowth.
Another good example are the so-called FANG Stocks (Facebook, Amazon, Netflix, Google) that are valued higher than the entire German Automobile Industry. But even to estimate the worth of public companies is tricky, if you do not have any financial background.
But there are financial instruments that can help to determine the value of a company. However it is a long and complex work to piece it all together. You typically start with reading an annual report where you compare the assets of the company versus the depths and compare the earnings of the current quarter or year with the previous one.
And this is just to get started. Does not sound very exciting, does it?
In the crypto sphere it works exactly the opposite way, there is no bullet proof way to determine a company‘s worth, let alone the current income versus costs.
It is mostly all built on a vision, sophistically written on a whitepaper, using fascinating terminologies and plans how to transform the world. When you read some whitepapers you get the feeling that anything is possible in the blockchain world, that soon everything will be decentralized and the mentioned FANG stocks, the dinosaurs that were cutting edge yesterday will soon be replaced. And then it‘s betting time. Betting on a decentralized Facebook called Faceblock. What makes it difficult that there are at least 10 other, similar projects that have similar aims. In the end, one or none will be able to carry out the visions in their Whitepapers. Even more disturbing is the fact that there is no industry with more scams than in the crypto currency market. The mentioned “project” Faceblock never intended to build anything, just collected funds to start developing the project and then suddenly disappeared.
Some might say this is a very pessimistic characterisation and that there are endless opportunities. We agree with that 100%. But there are also endless pitfalls.
We all know what makes the difference between a struggling and a successful trader. The ability to buy low and sell high. Sounds like a no-brainer and yet unachievable for the majority of market participants, as statistics are telling us. When it comes to investing in tokens, things get a little bit more complex as you need to factor in a few more valuables:
- Is there actual demand for the token?
- Will the token appreciate in demand or price?
- Has the project a chance to be completed?
- Are there enough incentives to buy?
- Is the initial (self) evaluation realistic?
In the next weeks during our Crowdsale we are going to reveal the absolute basics
that one needs in order to have a chance to survive in this market.
Find out more by following this link: All You Need to Know About Tycoon.io
Our vision is not only to enable more people in the crypto sphere to survive,
but to establish a platform that enables even a rookie trader to thrive.
In the coming days, we will reveal secrets that can make or break your trade, the common and uncommon pitfalls of this market…and more!
So keep your eyes open and get ready for game changing knowledge that sets you light years apart from both the retail trader with solid experience but also from Pro Traders that trade for a living. Big words indeed. But rest assured that we will deliver.
Register today and get ready to start your trading journey on the Tycoon platform.
Join the Crowdsale on shop.tycoon.io and experience a whole new way to earn handsome profits from digital assets.