In the world of digital currencies, "price rise" is often confused with "true value." There is a prevailing belief that pumping massive liquidity into a currency is the key to happiness and joy for millions of traders, but a closer look behind the scenes of the markets reveals a different reality.
1. The collective liquidity trap:
Financial markets do not create money from nothing; they redistribute it. When liquidity flows abundantly towards a certain currency based on collective sentiment, it often follows a precise algorithmic path. This path is designed to catch "late entry points," where the dreams of beginners turn into "exit liquidity" for big investors.
2. Algorithms do not understand emotions:
Some believe that the market moves to please people, while the truth is that the primary driver is 'data'. Algorithms and market makers monitor areas of accumulation of buy and sell orders. When joy and reassurance reach their peak among the public, that is the technically perfect moment to reverse the trend.
3. Towards a Mature Investment:
The real evolution of the cryptocurrency market does not come from 'random speculation' that feeds off the dreams of the simple, but comes from understanding the rules of the game. The awareness that the market is a 'competitive environment' and not a 'charitable association' is the first step to protecting capital.
Summary:
Sustainable joy in this field is not achieved by chasing the green candles resulting from temporary liquidity pumping, but by transitioning from the emotion of 'fomo' to the logic of 'analysis and hedging'. The truth may be bitter, but it is the only shield against the volatility of algorithms.
Our wishes for the world of cryptocurrencies are integrity, transparency, and progress towards the better.
Alert:
Before making any investment or financial decisions, do your own research.
