My bitter story

[Roman1715]

Good day to all members of this community!
I am a new user in this community and, one might say, in cryptocurrency in general.
Regarding the recent events in the world of cryptocurrency, I have a natural question: why cryptocurrency, which mainly follows Bitcoin, is still dependent on political events and often behaves unpredictably. Tell me if it is really possible to somehow influence this so as not to lose almost all savings in cryptocurrency again due to political events.

[LayerzWallet]

firstly it depends on your time preference - NOBODY that bought bitcoin and held it for at least 3 years have lost any money - NOBODY

secondly - there is bitcoin, and there is crypto - bitcoin is hard money, everything else (sol, eth etc etc ) are technology companies, they come and go, they go up and down and are highly susceptible to sentiment

[NotATether]

You could only lose money to the recent short (which has previously only been seen inside memes) if you had leveraged positions in altcoins. 2x leverage on Bitcoin did not get wiped out. In fact, neither did 3x, 4x or 5x. Only above 5x longs got liquidated like 10x, 20x etc.

Other altcoins went down by 70-90%, and it probably is not a wise idea to be trading those anyway, and if you do.... trade them without leverage. And for the love of god, please do not hold your entire savings inside leveraged positions on an exchange while we're at it.

[mu_enrico]

As far as I know, no risky assets are free from market events. Even so-called "risk-free assets" can be affected by market events to some degree. For example, if you buy government bonds and the country defaults, you're screwed.

Firstly, the old mantra, "only risk what you can afford to lose," is the principle of investing. If you're scared to take risks, then don't, since all investments contain risk.

Secondly, you can pick lower-risk crypto such as Bitcoin instead of altcoins. Or you can diversify (a less popular method in this forum, lol). Up to you.

[albon]

It is an independent financial system not controlled by governments, but like any other financial sector, it is indeed affected by the market conditions and the psychological state of investors.. This is what makes fundamental analysis and keeping up with the news are very important in this field as they can help you determine the overall market trend..

In any case, if you are a long-term investor, you should not worry because Bitcoin may be affected by these political tensions, interest rate decisions,, and news in the short term, but it proves resilient in the end, and this is what we have witnessed through its previous price fluctuations.

You can also always keep a portion of your capital in stablecoins to protect your assets from volatility, as they were created for this purpose, such as USDT.

[Roman1715]

thank you for the detailed answer

[EluguHcman]

Good day to all members of this community!
I am a new user in this community and, one might say, in cryptocurrency in general.
Regarding the recent events in the world of cryptocurrency, I have a natural question: why cryptocurrency, which mainly follows Bitcoin, is still dependent on political events and often behaves unpredictably. Tell me if it is really possible to somehow influence this so as not to lose almost all savings in cryptocurrency again due to political events.

Okay I can say that I understand your honest question and your point of skeptic.
Bitcoin or crypto is a decentlized and on-chain networking monetary system which market activities is being driven by speculations such as "economy" and "political" news.

So most investors are psychologically attached to react on their decisions based on news and informations that is potential to have impact on the international economy levels, so investors get influence over it to protect their self interests which leads to encourage or discourage adoptions.

So as Bitcoin has been designed to be volatile is it tied to how the price is being unpredictable while it scarcity gives it the maximum edge to hedge against inflation.
So never mind, neither politics, jurisdiction nor authorities regulates the Bitcoin market. They can only cause price and adoption manipulations through the speculations (news).

You also have to understand that not all coins are worth holding like Bitcoin with it utility use cases. Most of the Alt Coins are traditional tokens which gains values by hyping controlled by the developers, so they mostly pump the coin to attract investors interest and after then leaves the project to dump which is where investors feels the utmost regrets of investing in crypto currency not Bitcoin that is an independent digital value.

So therefore, you must be able to differentiate between Alt Coins and Bitcoin so that as a newbie you don't fall in trap of investing in any of the shitcoins.

[Lucius]

~snip~
Tell me if it is really possible to somehow influence this so as not to lose almost all savings in cryptocurrency again due to political events.

How will you influence someone not to manipulate the market if they can? If you had the opportunity to manipulate the crypto market and make $100 million today, would you pass up the opportunity? This is not your bitter story, but the story of the majority who are getting involved in something they are not up to.

You can still learn from your failures, it's just a question of whether you want to do it.

firstly it depends on your time preference - NOBODY that bought bitcoin and held it for at least 3 years have lost any money - NOBODY
~snip~

No one except those who have been hacked or have forgotten their passwords.

[Doan9269]

Regarding the recent events in the world of cryptocurrency, I have a natural question: why cryptocurrency, which mainly follows Bitcoin, is still dependent on political events and often behaves unpredictably. Tell me if it is really possible to somehow influence this so as not to lose almost all savings in cryptocurrency again due to political events.

Only those without the knowledge of Bitcoin or cryptocurrency will think that whenever there's a market fall after reacting on a political news has a permanent effect on the price of bitcoin, but things are not always the same way many think of it, remember that you're dealing with a volatile currency, so expect the volatility to always go up and down and be well prepped in expectation of any on this.

When there's a massive fall like this, we are expected to hold, because bitcoin will certainly rise again with time, this is not a time of pulling out of the market and selling off, instead you hold and do more the same time, because bitcoin has always been able to rise back after any kind of fall, depending on it season and the reason for the fall, but know that there's always the assurance for its consistency, then if you can't afford the risk, don't go for it, because it may requires more time to hold.

[HONDACD125]

Good day to all members of this community!
I am a new user in this community and, one might say, in cryptocurrency in general.
Regarding the recent events in the world of cryptocurrency, I have a natural question: why cryptocurrency, which mainly follows Bitcoin, is still dependent on political events and often behaves unpredictably. Tell me if it is really possible to somehow influence this so as not to lose almost all savings in cryptocurrency again due to political events.

First of all, those who had invested in Bitcoin, or even altcoins, in spot market, which means that they had bought actual assets and were holding them, none of them lost any money in the recent dump that was so sudden. The ones who lost so much money, some even lost all their life savings, I heard that an investor from Ukraine lost around $56m and then committed suicide because of it, they were all into futures trading, which is risky, and can make you lose money, of course. Futures is different than spots. In spot trading, you buy an asset with your money, and it's up to you whether you want to sell it or not, and if it goes up, your assets will have a higher value, if it goes down, they will have a lower value, but you don't lose anything as long as you don't sell at a loss yourself.

In futures trading, you basically make a bet on the price of an asset, like if you think it will go up, you will long it, and if you think it will go down, you will short it, you also use leverage, which allows you to use 5x, 10x, or higher amounts of your capital, which means you can open a position worth $200 with only $20 if you use 10x leverage, but the higher the leverage, the higher the risk.

So, you need to learn about all these things first, and then you will understand this industry and trading sphere more closely.

[UchihaSarada]

As far as I know, no risky assets are free from market events. Even so-called "risk-free assets" can be affected by market events to some degree. For example, if you buy government bonds and the country defaults, you're screwed.

Firstly, the old mantra, "only risk what you can afford to lose," is the principle of investing. If you're scared to take risks, then don't, since all investments contain risk.

Secondly, you can pick lower-risk crypto such as Bitcoin instead of altcoins. Or you can diversify (a less popular method in this forum, lol). Up to you.

If there is a market, there is risk as if that market is lively, not deadly, it must have price movements up and down. Therefore that market must have its volatility that surely can be affected by different news especially in modern society when the world is flat, globalization progress and very quickly news spreading rate on social media.

Bitcoin market is not an exemption and altcoin markets as shown by history, are more sensitive and vulnerable with news, and Bitcoin corrections. In any market massacre, Bitcoin is the best cryptocurrency in holding its price, while altcoins are the worst.

The advice is very simple: If you want profit, hold bitcoin; if you want to minimize your loss, hold bitcoin. You see, no place for altcoins.

[Trx3]

I am very aware of the attack and some fools still believe that it just happened with no reason behind it when it's very clear that it was a coordinated attack.

Look at them blaming people for doing leverage, the same trading feature that introduced stop loss, I am sure tha you used stop loss too and stil lost everything? Correct me if I am wrong here because this was what really went down on binance exchange and Coinbase.

Leverage trading is risky but people don't always lose everything because they have stop loss in place but this time around they choose to bug the hell out of the stop loss feature and everyone lost everything.

Don't listen to people blaming you, the only way you lose everything as a leverage trader is avoiding stop loss, if you use stop loss and your trade go against you, your stop loss with hit and thats it.

This was a crime and an attack that trump family want to hide under the rug, CZ will end up in jail again, not now for sure but I can't guarantee that he won't in the future.

[BIT-BENDER]

I will blame investors for the reason why politics and political activities usually affects Bitcoin and the Cryptocurrency market. Firstly most investors are only their for profit, they don't care about the other values Bitcoin can offer to users, and their is no investors that is out for profit that isn't concerned with the news.

Let's be honest the action of economically relevant countries like China, US, UK and so on will have a ripple effect on the market and that is what we are experiencing.

[Merit.s]

It's better that you safe yourself all these dramas of political events affecting the market by investing only into bitcoin and hodli for long so that whatever market manipulation takes place, it wouldn't affect your investment rather you will see it as a buying opportunity to add more stash to your bitcoin portfolio.

If you must trade, don't trade with high leverage and only use the amount of money that you can afford to lose. Don't also claim to be a professional trader and take money from people to trade for them.

[Callido]

I will blame investors for the reason why politics and political activities usually affects Bitcoin and the Cryptocurrency market. Firstly most investors are only their for profit, they don't care about the other values Bitcoin can offer to users, and their is no investors that is out for profit that isn't concerned with the news.

We are the market, bitcoin bull and bear happens because of massive buy or massive sell.

Without profits from bitcoin investment, people will be less interested, how many persons are using or receiving bitcoin as currency for payment. Short term investors/traders are those who wait for news before buying and when it cools off or goes sideways they plan on selling which crashes the market.

[Ziskinberg]

Volatility is what makes bitcoin unique, and makes the whole crypto market unpredictable as well, so I think it will stay that way because that is the nature of any cryptocurrency.

Just like any investment, bitcoin is not free from any other world events, specifically political events, so expect that if the said events turn positive, bitcoin as well will also behave the positive way, and therefore influence the whole crypto market in a positive way.

Bitcoin is the blood of the crypto market, so whatever the behavior or position of bitcoin, it leaves an impact to the current position of the crypto market, and that’s how crucial and influential bitcoin is to the whole cryptocurrency system.

[PX-Z]

Bitcoin is not dependent of anything such events, people or traders are just over thinking stuff and decide they sell or buy, with panic or what, based on what they decide/feel from those events thus, bitcoin price reacts and become volatile when such global events happens. But few ignores it and continue holding.

[tabas]

I have a natural question: why cryptocurrency, which mainly follows Bitcoin, is still dependent on political events and often behaves unpredictably.

It's not really heavily influenced by political events but sometimes, it's directly related to it because that's how market works. Whenever there are news that could blow the other financial markets, then Bitcoin is also gonna be affected by it later on. Before, we don't care about the news, geopolitics, political events from the US and as well as other financial news. But because of how the narrative shows that there's some direct correlation on it lately, people have thought that they're all interconnected even if they're not.

Tell me if it is really possible to somehow influence this so as not to lose almost all savings in cryptocurrency again due to political events.

You have nothing to worry about that. You're not goin to lose all your savings because of these political agendas and events, what might make you lose your money is when you get hacked and fell to some scams.

[Emeraldo]

The price of Bitcoin dances toward what the government want the price to be. Since their has been different countries buying and accumulating Bitcoin, I don't expect the price to be stable. It is like opportunity to control the price of the world Bitcoin that belongs to everybody. Bitcoin is going to start moving well anytime and any day the government want it. This is not about being decentralized or not but this is about have the power to influence.

[khaled0111]

It’s obvious that you missed the days where some influencers were able to manipulate the whole crypto market just by posting a one or two lines tweet.
Political events can easily move and affect the crypto market, that’s correct and, in fact, this applies to all other markets as well, except that the crypto market is more volatile since it’s not as mature as the others.
That’s the exact reason why most successful traders and market analysts follow the news continuously and invest a lot of money on that.