Complex network Crypto, Fomo and ROI market correlation
The cryptom market has been a wild ride in recent years, and prices are wild between maximums and minimal values. But what determines these prices? Is it simply a question of offer and demand or is more of it?
A key factor that affects the crypto market – is the correlation – the tendency to move related assets. This concept was first introduced by Nicholas Taleb, a Lebanese-American philosopher and statistics, in his 2007 book “Black Swan: The impact of extremely unlikely”.
fomo: Fear of loss
Another key factor in the cryptic market volatility – KRIPTO is Fomo – Fear of Lack. When investors believe that their wealth is in danger due to a potential reduction in prices or changes in market conditions, they are more concerned and are more willing to risk. This can lead to an increase in purchasing activities, which in turn increases prices.
For example, when the price of bitcoin suddenly increased in 2017, many investors who bought it at lower prices happened nervously that their investment collapsed. As a result, they sold shares that allowed prices to be further reduced. This has created a kind of snow ball, several investors buy bitcoins in an effort to use prices.
Ni: Investment profitability
Let’s talk about her – profitability of investment now. In traditional markets, investors usually seek high returns through investments that offer a higher risk remuneration ratio. However, it may be much less due to the natural volatility of the market in cryptocurrencies.
For example, if the investor puts $ 100 in bitcoin and loses 50% of its value per year, only $ 50 is lost, not an initial investment of $ 100. This means that investors who participate in markets with high-risk investment cryptomes, with a high remuneration-because margins or investments in the lever have often committed to submit more capital in advance.
Correlation and Fomo: complex relationship
So how do the correlation and Fomo interact? The key factor is how these drivers interact. When investors are in high -end anxiety due to Fomo, they can more often engage in high -risk behavior, such as margin trading or lever investment.
This can create a kind of snow ball, several investors buy cryptocurrencies in an effort to use Fomo prices. However, this also means that these drivers can create bubbles – periods of intensive speculation and volatility of prices.
Conclusion
Finally, the crypt market is a comprehensive network of correlation, Fomo and rums. While correlation can lead to related assets together, it is only a part of a much larger equation. Fomo can lead to extreme prices, while high investment can create bubbles that eventually burst.
As investors, it is necessary to understand these drivers to know about investments in cryptocurrency. Acknowledging the role of correlation and FOMO in modeling market prices we can get valuable information about the complex world of cryptocritic transactions.
More tips for investor crypt
If you are an investor who wants to view in the complex world of encryption markets, there are some other tips:
* Diversify your portfolio : Distribute your investments in different assets to minimize the risk.
*!
* Stay informed
: Be aware of market reports, trends and analysis from reputable sources.
The last watching of these tips will be better equipped to browse in a complex world of cryptographic markets and knowledge of your investments.
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