Altcoin price crash
Following this mornings crash in altcoins, the 10% drop in my portfolio has nearly retraced back. I thought this would be a good time to make an important point.
When prices go up and down there must be a buyer for each sale and a seller for each buy. There is someone on the side of each trade.
As Bitcoin went up, my altcoins crashed heavily, Bitcoin is still rising, now at $1,755 on Coinbase and yet most of my altcoins have recovered.
For the altcoins to recover there must be buyers, as such there will be people making good margins on these movements, in turn, there are likely many losers. If you use Poloniex, you only have to read the chat box to see people saying how much money they have lost.
So who are these losers:
- People who chase markets, if you chase a price rise you are likely too late
- People who margin trade and get caught by a significant move
- People who 'all in' on a single coin which crashes
It is scary reading on Reddit about the fortunes people have lost.
Please, if you invest, do so carefully. Please have a strategy and stick to it.
On the flip side, if anyone bought Ethereum this morning, nice one, likely a good entry point.