The article is a bit long but valuable for those new to this market to refer to.

How does the Bitcoin - Altcoin - USD cycle take all the money from traders? Very good article, you should read it now!

Pitfalls in the Bitcoin – Altcoin – USD cycle

Preliminary information about the trio BTC - Altcoin and USD

A huge, huge rotation with each betting cycle lasting many months, investors who are not alert to take profits and cut losses will spin like a pinwheel, you will soon see your USD amount decrease rapidly.

First of all, you need to analyze the following: When you start trading, your account will be converted into one of the following 3 things:

BTC – Altcoin or USD

What do big investors driving the market (Sharks) need? It's USD, not BTC or Altcoin. That is USD from your pocket, there will be times when sharks collect BTC, there will be times when sharks collect Altcoin, but as long as they end up tricking you into taking all the USD. BTC/Altcoin can both increase, but can decrease sharply, but at any time USD is the real value, and exactly how much you lose/gain.

The spiral begins

Please give me an example of a tornado that started in April this year. To steer this spiral, two things need to be stimulated: Greed and impatience as well as a comprehensive overview of the market.

The plan was implemented by increasing the price of BTC first. The long and continuous price increase of BTC from the end of March to April, until May reaching the $2000 mark, caused the BTC fever to really begin. Massive media information, super optimistic forecasts, From data on user interest through the Google search engine, it can be seen that BTC reached the peak of interest on May 25. /2017 was also the day it dropped its price very strongly to $1500 - $1700.

First of all, BTC is the hottest, most famous name that attracts most of us to become traders, not ETH or XRP or LTC. From BTC we first learned about coins, then we learned about trading. Thus, BTC's mission every time it increases its price is to use popularity and stimulate greed to attract new players into the market. These are delicious, lucrative prey, both inexperienced and rich in money. So this round is mainly to attract USD to participate first.

Second vortex

After the prey has bought a large amount of BTC, the price of BTC will level off and move sideways for many days or fluctuate with a small amplitude, which is something new traders do not like. Where are the days when 1BTC increases $200, $300 every day? Temper will be fully utilized. At this time, Altcoin will be pushed up in price. When looking at Altcoins, although very small and anonymous, they keep increasing by 20%, 30%, even 50% every day, at this time the person holding BTC will pay money to buy Altcoin. According to statistics for the period May-June: All Altcoins increased, any Altcoin you buy will win. To the point where you can buy any coin, just wait a few days for it to increase sharply (pump). There are many people in this period who have made the mistake: As soon as they see coin A increase, they sell coin B to buy coin A, a moment later coin A decreases, coin B increases. (Not including junk coins, sign up once and leave forever at Bittrex).

From the recent lowest mark created by Altcoins, most Altcoins have been pushed up 3 - 5, even 10 times!

So by continuously increasing the price for many days and months, you have now invisibly imposed a new price milestone for Altcoin in your mind, this price is very high. For example: If Strat keeps fluctuating in 1 month from 39,000 STS (1STS = 1/100,000,000 BTC), the lowest time being 35,000, I guarantee there will be dozens of investors with the idea: 32,000 , 30,000 STS is very cheap, buy everything. Then more careful people will see: 25,000 is a good buy, the price will never drop to that level, too delicious to buy (The lowest price recorded is only 9,000 STS). This is similar to any Altcoin, including large ones like ETH.

The more time goes on, the more patience is lost, the player waits forever and doesn't see it drop to the price they initially planned to buy, they will have the default that it cannot drop to a certain point A, B, C. And they bought Altcoin for short-term trading and surfing. Initially, these players will be successful, buying altcoins and winning much better than storing BTC. So this stage is to convert the player's USD/BTC to Altcoin, at which point they have taken all your money.

3rd vortex

It can be said that every player who bought and held Altcoin in May 6 and even early July has reached its peak. By pushing up the price of Altcoin, you have given all your initial USD in exchange for Altcoin. Being steadfast in the price caused by the second spiral prevents you from cutting your losses when the price drops. If there was a survey, I think at least 80% of new traders die because they don't cut losses. That is the harmful effect of trust caused by the second spiral. Things you don't believe are the bottom, but they are still the bottom. Today is still the bottom, tomorrow that mark will be the towering peak. Altcoins fall to price levels that you can't even imagine. Confidence in Altcoin plummeted. By forcing the price of BTC and Altcoin down before August 1, sharks have collected both BTC and Altcoin at this time. Not at the present time (August 18, 2017), you have to compare Altcoin prices in USD to know when it is cheapest.

In terms of pure trading, you only need to care like that. As for the Altcoin/BTC price factor at this time, it is to kill the Margin players, take all their money, the holders can't get any more now, they have committed suicide. In essence, if the current price is just normal trading, buy and hold, the price of Altcoin/USD is not as terrible as the previous time on August 1.

So after getting your BTC, your Altcoin, of course you have to push up the price of BTC to start the new process and also take profits in USD. Who holds the most BTC during this period, when falling into the psychological trap of a storm, I am sure you will hold less BTC than sharks, they are the drivers, they have tactics and only They just keep a large enough amount of BTC.

In the BTC - Altcoin - USD spirals, there are often a number of smaller rounds:

Cheap Altcoin/BTC price: To reduce your BTC, although the price in USD is not cheap due to high BTC price. After that, the price of BTC continues to decrease, and you lose a lot of money: both the amount of BTC and the decrease in BTC.

High Altcoin/BTC price: To deceive your feelings, although the price in USD is not high at all because the BTC price is completely normal and low at this time. To buy altcoins now you need a lot of BTC, the shark will take all your BTC or the USD you put in to buy BTC, then buy Altcoin.

Small profit-taking rounds: There will be a few small-scale profit-taking rounds that are easy to see: After the price of Altcoin/BTC increases, it will be time for the price of BTC/USD to increase (Reason: Sharks have escaped from Altcoin => BTC, need to push BTC price to => USD).

Strong drop in BTC price: Taking money from people who only trade BTC (BTC/USD), often happens when the number of new investors throwing money in reaches the threshold, showing signs of decreasing.

You can learn more about this confusing price issue through this article: Altcoin/BTC price: Loss or profit, bottom or no bottom

I think at some point, you thought to yourself not to trade any Altcoins, only to trade the pair BTC/USD or simply Coin/USD. And actually, this is the safest and most headache-free way to trade. It's a pity that greed and the Altcoin trap are so perfect, combined with the cunning of the exchanges, that most of the small Altcoins that have pushed their prices up 5 or 10 times cannot be traded in USD. Having to trade in Coin/BTC pairs will make you confused about whether you are making a profit or losing money.

If you just simply traded BTC/USD, you honestly wouldn't have lost that much. Even making a profit and laughing loudly, but everything is over now.

The BTC - Altcoin - USD spiral will take all your money

Analyze, predict and plan for the future

First of all, let me say again that this is just a personal conspiracy theory based on what happened. Therefore, it is only a source of information for your reference. According to my prediction, if the spiral repeats like March 2017, the scenario will be as follows:

BTC kept its price to the point where people felt it was difficult to reach 3k5, remember how difficult it was for BTC to reach 2k5 when it reached 2k7 and was about to reach 3k (May 2017) and then how it exploded on the 25th. /05/2017 ($3000 -> $1700, with floors $1300, $1200 in a few hours). If the old scenario is completely matched, BTC will have 1 Flash Dump: Discount in the form of balloon explosion and sell-off. Basically, the money is all in BTC right now, Altcoin can't attract blood 😀, it's taking the most money right now.

If BTC drops that quickly, it will rise again very quickly. Basically, the person holding BTC won't lose too much if they don't burn their Margin account or sell off, but it's quite a bit.

After Flash Dump, BTC recovered very well, BTC returned to a stable level and increased gently. Now it's back to the stage for Altcoin like the second spiral. If you're on Margin, I don't have any advice, but if you're holding Altcoin, according to this reasoning, Altcoin will become a money-sucking machine again. , after BTC finished its performance: Continuous price increase for more than 1 month (Spin 1).

If you haven't done anything yet, wait until the vortex 3: The price drops to the floor, both BTC and Altcoin, it will be a long time before the vortex 2 comes. Or wait until the 2nd spiral officially starts, buy Altcoin and do as you did before, when you bought any Altcoin and won. And this time, you have to be afraid and know how to cut your losses.

There is a personal investment principle of mine: When the price of BTC is cheap, I spend more money to buy BTC, when the price of Altcoin is cheap, I buy more Altcoin, but with Altcoin, cheap things are very fragile, thinking that they are cheap can be super cool. . And finally, when USDT is cheap: There are people selling lower than 22.5 or taking Remitano's BTC price/BTC/USD price, sometimes you can buy at only 22.3, 22.2 and even cheaper, at this time I will increase my USDT amount. . Everything has its turn, BTC is at its peak, Altcoin will have its turn, and eventually there will be a time when people spend 25,000 or even more to buy USDT. And it's important to learn to cut your losses, you can't be stubborn, patience is not the same as stubbornness. Drawing from my own experience, I would like to send to you: The most important method for short-term trading

Finally, I still reiterate that if there is nothing too surprising in the coin market (The surprise is big enough to cause collapse), then trading the BTC/USD pair is still the safest and most classic. Nowadays, people avoid Altcoins like they avoid sick people, but then if there are 5-10 coin pumps, and then buy signals in a series of coins, I believe the vast majority will run away from BTC -> Altcoins soon. . You too, don't need to avoid trading Altcoin, it's a great opportunity to make profits, but remember to always follow the market to escape to BTC/USD when needed. At least before there are strong fluctuations in the fate of BTC, when you hold BTC or USD in your hand, you can rest assured.

Source: Hoai Phong

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