Why Keeping Oneself Updated with the Latest Altcoin News Matters
When technological advancements are happening daily, the only way to avoid falling behind is to get informed. Since cryptocurrency falls in the category of ever-changing fields, being mindful of the latest news can facilitate better investment decisions.
Just in the past 12 months, Bitcoin underwent a 300-percent price increase and decrease. Additionally, the lawmakers from around the world deliberately addressed the digital coin market by imposing regulations. Thus, the changes surrounding the cryptocurrency world are directly driven by external factors.
Arguably, one of the most important reasons to keep up with the crypto-related news boils down to legality concerns. Just recently, for instance, Pakistan announced a complete ban of all digital coins. This unequivocally affected millions of investors from the regions and impacted their long-term strategies. The ones that anticipated such a turn of events, however, were more likely to minimize any adverse effects. Hence why keeping up with the news is as useful as it is straight-forward.
Although Bitcoin witnessed the most radical drop in value, it is not the only platform whose price diminished. In fact, all of the following cryptocurrencies experienced a similar trend:
Ethereum: Coin price decreased by over a $1,000 in less than a year;
Litecoin: Lost $300 in value since December of 2017;
Ripple: Went down by 85 percent since January of 2018.
So, assuming that certain trends in the cryptocurrency market are driving the values down is not a far-reaching statement. Nevertheless, millions of investors have been forced to recognize capital loses. Could this have been avoided by entertaining the latest developments that many news outlets were reporting?
There is no real way to assume how one could invest better by keeping up with the news. Regardless, remaining highly aware of the environment in which cryptocurrencies operate could lead to more organic forecasts. Meaning, predicting the direction in which some digital coin would go might be slightly easier. Thus, being up-to-date on the latest developments could help one invest during the market’s expansion and sell during the downturn.
At one point in time, Monero, ZCash, and Maker were nothing more than start-up ventures with a solid whitepaper. One successful ICO and many upgrades later, these three are now amongst the most valued cryptocurrencies in the world. For many investors, however, the period when significant gains could be made has passed. After all, each of the three aforementioned altcoins’ prices has stabilized. So, although making gains is still possible, reaching unprecedented returns is not as likely.
Those who religiously follow the developments in the market are much more likely to capitalize on assets like the previous three. Just consider, for instance, an investor that learned about Monero’s ICO by reading a news publication. After purchasing their investment for approximately $2.5 back in 2014, they would now have $113 per coin. In translation, a gain of 4,400 percent would have been achieved in less than four years!
Wake Up and Smell the Coffee
Knowing when to let go of an asset is just as important as knowing when to obtain it. That means that investors should have ways to timely evaluate a failing market. For instance, the altcoin sector has seen an 86-percent decrease in the last 9 months. For many buyers, this constitutes a scenario where selling their digital coins should take place immediately. Regardless of how accurate such a forecast is, one would be unaware of it absent recent reports. Thus, keeping up with the altcoin news could ultimately help one diagnose a declining market in time!