We analyze what is the appropriate strategy when choosing between investing or blindly betting on tokens
The market predicts with absolute certainty.
There is no crystal ball that can tell you the exact movements from one day to the next. Berkshire Hathaway’s Warren Buffett From a distance, those who have been successful time and time again may seem prescient or prescient. BRK
is an obvious example, but in reality they make educated guesses based on countless hours of due diligence.
Too many retail investors make decisions based on little or no research, choosing intuition over rational thinking. This is evident in any market, but may be most evident in the cryptocurrency market.
coins like bitcoin
and Ethereum
They can experience wild price swings and behave in seemingly erratic ways. This becomes even more apparent when it comes to smaller cap coins or meme coins like Shiba Inu. SHIB
and Dogecoin Governor
.
However, despite the volatility and apparent lack of logic, there are some real factors that can indicate what the currency’s price action might be. Let’s take Bitcoin as an example. About every four years, the rewards issued to miners on the network are cut in half. This essentially creates a supply shock. As anyone who has taken an economics course can attest, reduced supply will lead to higher prices. Historically, this has been largely true.
Smart investors see these patterns and can take advantage of them. This is the main difference between investing and gambling.
However, many other coins lack predictable markings. Their behavior is very volatile, and when they bet against them, investors can lose. Seasonal Tokens is a new cryptocurrency project that creates a system that is notified of BTC supply shocks to help traders predict price movements more reliably.
The project contains four tokens: Summer
,autumn
,winter
and spring
, designed to raise and lower prices in a predictable manner.
The price of each token is affected by its mining reward, and the reward is distributed to those who choose to provide liquidity. By adjusting these rewards, the ecosystem could theoretically change the relative supply and demand of each token.
Using this method, traders can trade continuously from each season to the next, increasing the number of tokens they hold and hopefully their value.
