Best Practice: It's always a good idea to understand what you are trading and what actually drives its value. Bitcoin is one of the most interesting assets I have ever come across in my entire life. It has no empirical way of calculating its intrinsic value and it worths more than gold. I witnessed when it costed only a few dollars years ago, then when it soared at its peak (20,000 usd per coin) and then when it plummeted down to 3,200 usd. What make cryptocurrency (bitcoin and many others) so unique is that its price is driven purely by our behaviours. Unlike Currencies or commodity where government or instituitions can sometime intervene to move price in certain directions indirectly (Monetary policy). In simple terms, we rocketed it to 20,000 usd and then slammed it down to 3,200 usd. We, traders and investors, dictates the value of Bitcoin
Fundamental Side:
Cryptocurrencies aren't backed by government. Investing in Cryptocurrencies doesn't guarantee gain or losss. There is no clear instrinsic value. No empirical evidence that I know of suggests that its current price is fair price. However, what we do know that the number of active addresses that have BTC is increasing (Check the link below. Thanks Glassnode). This suggests that people are hoarding it.
studio.glassnode.com/metrics?a=BTC&...
Technical Side:
No clear exhibit of price pattern. No clear divergent. No clear trendline. I highly suggest stay out of it (for now) until it forms a clearer pattern.
Key takeaways: Don't rush. Wait for a clear price pattern. and DON'T make a long term investment in cryptocurrencies unless you know exactly what you are doing.
Fundamental Side:
Cryptocurrencies aren't backed by government. Investing in Cryptocurrencies doesn't guarantee gain or losss. There is no clear instrinsic value. No empirical evidence that I know of suggests that its current price is fair price. However, what we do know that the number of active addresses that have BTC is increasing (Check the link below. Thanks Glassnode). This suggests that people are hoarding it.
studio.glassnode.com/metrics?a=BTC&...
Technical Side:
No clear exhibit of price pattern. No clear divergent. No clear trendline. I highly suggest stay out of it (for now) until it forms a clearer pattern.
Key takeaways: Don't rush. Wait for a clear price pattern. and DON'T make a long term investment in cryptocurrencies unless you know exactly what you are doing.