Crypto Market Investment Anaylsis

in #steemitclub6 years ago (edited)
  1. When will the bear market end ? 
  2. Is ICOs investing still profitable or is it better to switch my investment into Bitcoin and Etherium ?    
  3. what's my investing strategy ?

In today's Article with you guys I'm going to be as open and honest as possible and share my personal views on all of these questions so jump to  the first question 

When will the bear market end?

This is  actually the easiest question to answer   because the answer is I don't know no investor in the entire world can predict  market movements not just cryptocurrencies  but regular financial markets as well if   you want proof of that simply look at  the best investor of all time "Warren Buffett"  he says himself ,  he has no   clue where the market is going move in the short term bear in mind that he's  the best investor of all time if someone else was able to predict the markets  then surely they would be better than him 

  Is investing into ICOs  still profitable?

 The answer is yes, and  no as well you can definitely still make some profits by investing into ICOs but there are fewer ICOs going up in value than they used to, and those which do, are going up less so yes you can still make  profit.But no it's fair to write  you're  not able to make as much profit now as  was possible in the past.

I'm going to write some random numbers out here now these are just off the top of my head I'm not really saying these are exactly same as written. I  haven't got this from anywhere but it is my experience I  believe they're probably only around  three percent of I CEOs are still  profitable, It  may sound like a crazy crazy low number. I'll explain why?

 First when I look up and  I see ICOs, immediately eliminate 90% of them because this ICO space is utterly  ridiculous there are so many terrible projects out there I'd say 90% immediately I just eliminate. The remaining 10% I'd say 7 percent used to be profitable but aren't huge, and  that leaves you with probably just around about 3%.

 Before I move on to explain why ICOs investing is now less  profitable I would like to clarify once Now  I'm describing  in terms of US dollars I'm  not talking in terms of ETH. Therefor if someone believe like the ETH is going to increase in value  so again the best strategy is to accumulate as much as possible, these  icos are still profitable but  not in terms of US dollar right now. So I wanted to  make that clarification because this  point comes up a couple more times in this article  so please  bear this in mind throughout this article. 

Now I  will explain about why ICOs are now less profitable than they once were at their ridiculous peak. The answer isn't exactly rocket science the whole market is down and everything  is relative. It's been very difficult to  make money by investing into the bear market, So obviously it's also going to be very difficult to make money investing into ICOs.

 Well if we look at a historical  snapshot at the start of this year it becomes pretty obvious let's look at  hypothetical project with a token sale cap of 30 million dollars to keep our  example simple no bonuses or anything  like that for our money to double so if  I invest $1 for that to go to $2 the  market cap  have to double so for that's going from 30 million dollars to  60 million dollars at the beginning of  the year 60 million dollars you have to jump into the market at position 267 as shown in picture  because we can see here the position 267 on 7, January  was just above that sixty million dollar.

 

Now let's jump ahead to the day and  look at these figures if we're still  expecting same return then means we're  still looking for a sixty million dollar  cap but now that puts the position at a  hundred and forty one so rather than being around two hundred and seventy the we're looking at one hundred fourty that's twice as high in the  market to achieve the same return. I say everything is relative it's better  to compare the positions in the market  more so than the actual market caps to  achieve the same return if you need twice as higher position it's obviously  gonna be harder to make profit by  investing into ICOs  will this always be the case have we now.

 Did we miss the opportunity to make money by  investing into ICOs?

Well as I said number one there  is still a very small  section of ICO's the best ones which are still very profitable but number two this all changes once again if projects change their ICO cap so as an  investor I'm simply looking at the percentage return if I double my money I don't really care if that means the hard cap increase from thirty million dollars to sixty million dollars or if it  increased from fifteen million to thirty million.For me 2x return has immense importance, and obviously  as an investor that's the only thing I'm concerned with.So if we look at today's market and we scroll down let's go back  to that hypothetical ICO and now  launching in today's market conditions so they're smart they understand you're  not gonna raise thirty million dollars  in the current market conditions but you  might be able to raise ten million  dollars instead. if they decide to go  down that route and have a cap of ten million dollars I only need them to  increase to 20 million for me to double my money.

Look at the coin market cap twenty million dollars is  position 283 in the market so very similar to what sixty million dollars used to be.What I'm getting at here is that if the same hypothetical ICOs lowers their caps they can still come  into the market at same position number and I'm able to double my investment because they've lowered that cap. So ICO  investing is currently not that profitable but it could all change once again if projects decide to lower their caps. Are they going  do? that I don't know. it's impossible for anyone to say it.

Once again I would say there's a lot of  projects which are currently talking  about delaying their ICOs until more favorable market conditions so definitely a lot of projects aren't going t0 be consider  this option(Reducing HardCap), but some projects  which want to push ahead immediately  will consider this as an option. So I believe we're probably  see fewer ICOs, while  more choosing to delay, but if  some projects do lower their caps we'll still have those  great investing opportunities.


Is it better to invest into Bitcoin or  ETH instead of ICOs?

 There are a lot of people saying that this is a better  investing strategy as ICO investing is  very hard to make money at this point in  time I have a few different responses and I will explain in next episode how to manage your funds in bear market, Off course the burning question the day  It too late here, haven't energy to discuss more, 

I will continue right from here, Please give your feed back and will answer your all question in comments box.

Best of luck dear mates  

 

@engrcryptos
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you r doing marvelous job...keep it up

thanks for giving get infomative article

Great article... For new users in cryptocurrency market. This article will definitely help wohave confusion about where to invest money..
Great going...

Hopefully next post will b more informative

yes we will wait for this..

Most of the ico's are scam now..its difficult to identify which one is best for investment

Dear I have mentioned I leave 90% ICOs agree with you

You have a minor misspelling in the following sentence:

hundred and forty one so rather than being around two hundred and seventy the we're looking at one hundred fourty that's twice as high in the  market to achieve the same return.
It should be forty instead of fourty.

Thanks but it is the difference of American and British english

Anyhow thanks for pointing

Informational blog

Next part more depth analysis you will see

you r doing great job...keep it up