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In general, the issue with cryptocurrency is there is very little actual economy around it (that is, buying and selling actual goods, not just exchanging for di
by stephen_g 4y ago
In general, the issue with cryptocurrency is there is very little actual economy around it (that is, buying and selling actual goods, not just exchanging for different cryptocurrencies and tokens), so much of the value isn't really backed by anything.
It's mostly just speculation, which becomes a "greater fool" thing - you're only going to win if you time it right, there's enough pumping happening for you to profit, and get out before the next crash.
- koonsolo 4y ago> you're only going to win if you time it right People who try timing it will always fail. I tried trading and timing, and if I compare that to just holding bitcoin and no timing or no altcoin trading, I would have ended up with more. I'm not the only one it seems due to the famous HODL. Same as with the stock market, just buy and hold for a long time. Hard to beat that strategy.
- stephen_g 4y agoI agree with your first line. Almost everybody who try to time it will fail, I should have made that clear. Mostly the people who "timed it right" did it by accident. But I disagree with the last bit. Holding is a terrible strategy with crypto now, because there's no economy to buffer it, and there are so many scams that drop the price of basically all the cryptocurrency market when they collapse. There are still more after FTX to go. There was a time when speculating and holding for enough time could make ridiculous amounts of money. But at this point the only way to win is not to play (or be one of the scammers and do a rug-pull, but please don't).