How to Find the True Pearls At the Cryptocurrency Markets?
A deep look into the matter often reveals true values. An attempt to unearth value beyond the glitter.
‘Only when the tide goes out do you discover who’s been swimming naked’
With this slightly trite saying, the American business magnate Warren Buffett likes to make fun of those who invest in the securities of high-risk companies in bull markets and then wonder about enormous losses in periods of weakness. Experience shows that investors are often satisfied with the vague hope of a certain profit in the future, make bad decisions and above all do not adhere to a sound investment strategy. The ingenious Warren Buffet himself strives for a long-term value investing approach after carefully selecting securities with great potential. What should we do with this realization, after all, we are not all Warren Buffets, are we?
Let’s face it
Currently, it can be a rather daunting endeavor to assess a certain blockchain project or cryptocurrency coin in terms of its inherent value. Which coin metrics shall I look at? Is it the market cap, the trading volume, the price stability or the strong marketing backed up by some heavyweight financial players? How can I find out if a certain blockchain project is undervalued and has very big potential? When I diligently do my own research, how shall I compile relevant data and continuously keep track of it? How exactly shall I proceed when building a strong cryptocurrency portfolio? Is holding a profitable strategy for me?
With innovative computerized technology, we can create powerful tools that guide the common investor in finding individual investment strategies, in helping to make good choices and in giving a hand with real-time deep analysis. While providing key parameters that everyone can easily understand, such smart technology can bring sustainable financial growth. Independence, transparency, and self-empowering become core elements in newly created investment opportunities.
There are plenty of tools and indicators for evaluating traditional assets. They are well developed and well accessible to the interested investor. Currently, the contrary is true for cryptocurrency traders. Although cryptocurrency trading platform and cryptocurrency coins are sprouting like mushrooms, where are reliable cryptocurrency assessment tools? Where are the helper tools that can assist me as an interested newcomer or as an experienced trader? How can I even handle the massive flood of information?
Many people just want to make a quick buck hoping for a fantastic upswing in the coin price. Even worse, some people choose holding their coins as their preferred investment strategy — a strategy that may or may not pay out. Until the mood changes. Shocked cryptocurrency investors then often accept high price losses, since masses of investors can suddenly lose confidence and sell emotion-loaded in the midst of a spiraling downward trend. Some more experienced investors may now turn their attention to more substance than to appearance.
Now, what can be done? In the cryptocurrency market, we have to take into account that Bitcoin has still more than fifty percent market dominance. Due to that inherent circumstance, market manipulations and extreme price volatility go hand in hand. Moreover, a few market movers are able to create sudden price swings. How shall we avoid unnecessary risks and pursue a more coherent investment approach? How can I get some pearls - after all I want a pearl necklace?
Creating fishing grounds
A number of observations and conclusions will help us to outline the parameters for finding real pearls:
- On the cryptocurrency markets there is often more hype than substance.
✅ We need an unbiased algorithmic data analysis to determine value.
- Cryptocurrency as an alternative payment solution is just one of many possible blockchain applications.
✅ We need useful asset classes to build balanced cryptocurrency portfolios.
- Due to extremely volatile market movements, it is very difficult to develop a coherent and profitable investment strategy.
✅ We need investment strategy tools that can adapt in real time.
- Blockchain technology is at an early stage of developing its potential.
✅ We need flexibility and openness for new blockchain developments.
- From a rapidly growing number of crypto currency projects, some will stand out as “blue chips” in the crypto currency market.
✅ We need strong indicators that can accurately assess future potential.
- There are malicious market participants who are destroying our confidence in innovative blockchain projects.
✅ We need intelligent AI detectors that can warn of abnormal and unhealthy market manipulation.
- Due to the complexity of the matter, it is difficult for an interested investor to get along with it.
✅ We need simple cryptocurrency trading tools that anyone can use.
Let’s go pearl fishing
We can see that the cryptocurrency market is going through probably healthy adjustments. Nevertheless, we do not have to passively wait and lose hard-earned money. We can objectively assess market data, community data, and development-specific information. We can bring together relevant data, analyze it with traditional indicators and test it with more sophisticated real-time algorithms that reflect cryptocurrency specific benchmarks. Our findings have to be tested over again until useful patterns reveal themselves. Only with such an approach, we can fish the pearls out of the cryptocurrency data lake. Over time, the hard facts have to be supplemented and fine-tuned. It is a task that humans alone cannot do. We need powerful machines that can go through data in split seconds and reveal unbiased signals.
Well, sounds good so far, but how useful are such innovative investment tools? One fact should be clear to us: Innovation is only as good if gets broadly accepted in simple everyday usage. That’s why trading tools shall be simple to use and understandable even without being a full-time trader. And of course, the best investment tools cannot prevent poor human choices. A computerized tool that shall help us still needs a clear user mindset. Personal financial situations and individual investment goals remain important. It is no secret that higher risk involves also the acceptance for potential higher loss. New cryptocurrency trading tools should help us to make more effective and accurate decisions.
The SparkBase team has set out for achieving this goal and making it usable for every cryptocurrency trader. The self-imposed goal is nothing less than following: Building the industry-leading cryptocurrency portfolio builder assisted by AI-powered investment strategy tools and personalized portfolio rebalancing — you can increase your investments, exceed benchmarks & benefit from upcoming opportunities at any time.