Between crypto investment and trading, which do you recommend for a crypto enthusiast with low capital?
Personally; i think when you have low capital and you are an ethusiast; it is best to choose trading; by choosing trading you have an opportunity to learn and practice; you get an opportunity to develop and perfect a working strategy without feeling the impacts of losses or mistakes. Believe me, if with your little capital you are able to understand the philosophy and psychology and motives involved in trading; investment will come easiest for you.
Which of the coins should such person trade or invest in?..
I do not like to choose coins for enthusiasts; but if you are trading for profits or investment, bitcoin, litecoin and etherum comes handy if you can do your own research about them. Altcoins investment are superb too if you can find the right one
This really depends on the reason's you're getting into crypto in the first place. It also depends on if your life depends on the capital you're expending and your experiences with investments and trading prior to crypto.
It's critical to understand that whatever capital you put into crypto, presume that you will never get a return or may lose a substantial portion of that investment or trade. If you make a profit, great.
For newcommers, I do not recommend trading, I recommend investing in the top 5-15 cryptos with substantial liquidity and a overall a solid presence. The further you go down the crypto market ranks, the more risk you incur.. for better or worse.
To Wenbing's point, trading is not as easy as some make it appear to be. Yes, if you become highly skilled in understanding the underlining psychology in crypto, are excellent with micro-managing and have a solid understanding of all the core principals of what makes a successful trader, then by all means. But trading is not for everyone and the vast majority who day trade, lose or on average, make as much return as someone who "goes long."
I do not personally trade, I do not have the aptitude or patience for trading crypto's anymore.
Will the price of BTC ever go down in 2020?
I do not speculate on crypto prices. There are hundreds of crystal ball readers who will be more than happy to give you their predictions. But just understand, never trust anyone or any authority on crypto prices. That's a ticket to disaster and massive losses. No one has your interest in mind but yourself, trust only yourself. Crypto is money and everyone is trying to do everything in their power to get that money. That's the rule of the game.
That being said, TA and etc. are all tools based on the history of crypto. Every prediction and analysis is where crypto has been and the current state of crypto, then one draws a conclusion for the future. The bottom line is no one knows anything or where crypto is headed. More importantly, it's fundamental to understand sentiment of people in crypto. More often than not, it's a significantly more potent tool than any TA can yield, but sentiment is very abstract area and nearly impossible to get a full grasp on without big data.
What a detailed explanation! You said we only know two things in crypto, which are; crypto past and crypto presence. But, there are traders and investors that have mastered the art of predicting the future prices, and almost always appear to be as they predicted.
What can one do to ensure that one's prediction of the future of crypto prices is accurate?
No one has truly mastered the art of predicting future prices. More often than not, you're being highly misled. The very few who day-trade and are successful. They're usually not the average individual's who are tweeting or shilling out the coins they are invested in on a daily basis. There is a lot of noise in crypto, from news, to "influencers," to shillers and a whole lot of manipulation in between. The majority of day-traders lose heavily.
There is nothing you can do to ensure a prediction is accurate, the future is not certain and will never be certain. No one has a crystal ball. All you can do is estimate with the current data, knowledge and etc that you currently have. There of course many things you can do to reduce risk, such as controlling markets with more liquidity, social engineering, analyzing big data, and etc. But if you're not actively at the helm or leading these efforts or have direct insight, then you're just a pawn, a fish for the whales. There are many who seek to social engineer or pretend they have capital or insight, but again, the majority are creating this illusion, for the more ignorant, who believe without actually understanding what's occurring to them.
I'll stress again, no one has a crystal ball. If you truly read even the best estimates and wash away the excuses or inter-personally make excuses for them, then you will find the truth.. that they know no more about the future of crypto than you do. That's the honest reality. The ones who do make an accurate prediction, most likely did it out of pure-luck or predicted based on common knowledge and understanding. There are general and blanket statements you can make, like "Bitcoin will go to 20k again." But this is a purely empty statement, because I did not associate when. Bitcoin will go to 20k again in the next 100-years. Do you believe me? If you're in crypto and invested in Bitcoin this statement seems laughable, since the majority will almost concur with my line of reasoning even without evidence. All I would need to do is draw some trend-lines, do some elementary-school drawings of technical analysis, and suddenly I will become a "prediction expert" What if now I predicted Bitcoin will go to 50k in the next 1 day and backed it up with the most ridiculous TA chart? I'm willing to be I would get people to believe me.
The point I'm making is that predictions find the grey area based on current trends, sentiments, volume, capital.. etc. If they are even remotely close, that indvidiaul is claimed to be an expert. If you have significant capital or are a big name making a prediction, then of course that prediction must be correct! Not the case at all. They have their personal investments at stake and often are claiming 50-100k Bitcoin, but in reality are ready to cash out at any insignificant profit. Predictions that can be argued one way or another. Predictions mostly based on past trends, but mostly just sentiment "how do you feel about Bitcoin's current price/market as a whole."
Anyways, this is something that truly is frustrating in crypto for me. There are so many opinions and so much noise, they actively devalue the entire crypto sphere with their "Get rich quick, get rich quick in 1 day" mentality. The most detrimental and dangerous types of individuals to crypto are these types of morons.
