This is a typical recommendation coming from stock and Forex markets. There is a probability of a strong and significant price wave when rumors appear. Those who buy on rumors have greater risks as there are still no facts to prove them. However, they also have better profit opportunities as trends are in their initial phases in moments when such rumors appear.
Common sense doesn't apply for some traders. In October, Spatafora started trading bitcoin, litecoin and ethereum to learn about the market and understand whether any of the coins were undervalued. Instead, he found that many of the investors exhibited irrational exuberance in believing the virtual currencies would never stop their climb in the market.
Ethereum'is on the trouble! Almost all the altcoins trades above the major counter-trendline but Ethereum'is not on the list anymore. It has a break downwards from the trendline and from the strong area which is not the good sign but we can find something positive also, currently, it has an opportunity to make a new higher low on the market structure and it shows ...
This analysis can be done by searching for information on the number of transactions performed per day and the investments that banks or financial institutions have made in Bitcoin companies. In addition, information on the growth of companies of Bitcoin and blockchain can indicate a possible growth of cryptocurrency, as well as new use cases such as international payments and payment processors.
Only invest what you can lose. During the recent crash in January 2018, hobby-investors got burned. Reports of frustration and losses came at the cost of broken monitors, smashed laptops, and heavy monetary losses. While the rules are in more particular order of importance, it’s safe to assume that this is the most important rule, the rule to rule the rules. As soon as your money is converted into cryptocurrency, consider it lost forever. There is absolutely no guarantee you can get it back. Losses don’t simply come from dips in the market; extraordinary factors such as hacks, bugs, and government regulation can mean you’ll never see any of your money again. If you are investing money you can’t afford to lose, you need to take a step back and re-evaluate your current financial situation, because what you’re about to do is an act of desperation. This includes: using credit cards, taking out mortgages, applying for loans, or selling everything and traveling the world (as glamorous as that sounds).