Futures and what they are eaten with
🖱I want to start with the enormous misconception of cryptocurrency market inhabitants - 'futures affect asset prices!'
Futures are a bet on the rise/fall of an asset's price (if you want a more academic understanding, read the definition of futures online)
Next - a logical question: how do the bets of gambler traders affect the price of the asset?
The correct answer: No way.
In fact, futures work like this:
Petya goes long on the BTC asset, while Vasya goes short on BTC
If suddenly the price of BTC falls, then Vasya makes money on his position, while Petya loses because his intuition deceived him - the bet 'didn't work out.'
And the exchange makes money on both, as it takes a commission)
🖱TA (TECHNICAL ANALYSIS)
Only the exceptionally gifted do not understand that technical analysis does not work in the cryptocurrency market) To be precise, it only does if you do not take into account the 'sharks of the market' / info-gypsies who say otherwise and try to impose their trading courses on you, shouting that their Lamborghini was bought thanks to cosmic earnings from this very trading. Millionaires tell that all this is thanks to the magical, universal strategy they developed in the sweat of their brow, and not to the hyped info-courses.
'And indeed clever people. But why doesn't TA work then?'
By improvising with drawing triangles, arrows, and even hearts on the chart, you will never guess where the price will go. With technical analysis, it is impossible to predict the Fed's interest rate decision or what the macro data will be next week. This is one of the glaring examples of the helplessness of technical analysis.
And in general, no one ever knows where the market will go, and even Buffett with his vast experience cannot predict it accurately. Therefore, one can calmly assert - futures = casino.
But, without a doubt, there will always be 100 stories of how people rose from rags to riches, thanks to merciful trading. The metamorphosis is that there will always be 10,000 stories of those who fell from riches into rags, thanks to that very merciful trading 😉.
In summary: futures are a doomed story in the market, especially now, in the transition from one phase to another. Sharp downturns often occur.
or conversely a rise, it is impossible to keep track of everything, so the risk of going into loss is indescribable. But, if you want to play at an online casino and the Dragon money doesn’t open, you now always know where to turn to)
🖱Based on the above, I advise all my readers to trade spot; it is precisely in spot trading that one can make huge money. It will take more time and nerves, and most likely there won't be enormous percentages like in magical trading. After all, profit over the long term is always greater, and money will never be lost in the bet.
There is one very true and wise saying that is literally a rule of the game for trading:
'The best investor is a dead investor'
There is a separate article on this topic. I recommend reading it for general development and to fully understand what has been written above.
