Expert’s Forecasts on Major Cryptocurrencies
Most investors are afraid of investing in cryptocurrency at their own risk, so they are constantly looking for useful information and recommendations on the Internet. But by looking for the answers to such questions as a forecast of the bitcoin rate or forecast of the value of cryptocurrency, the potential investor will get thousands of results, most of which are not even worth attention. Is it possible to find reliable forecasts and do they exist at all?
On What Does the Opinion of Experts Depend?
There is a point which makes most forecasts (even from public figures and experts) not trustworthy. The thing is that the global community is divided into two camps – yea and nay sayers of the cryptocurrency movement. The trend is most easily traced when you look at the example of Bitcoin forecasts. Majority of BTC holders voice positive forecasts. On the other hand, skeptics assure us that Bitcoin is simply a bubble ready to burst any second.
However, the situation with Bitcoin is ambiguous, since the fluctuations in the exchange rate of this coin greatly affect the value of most other cryptocurrencies and many people are interested in influencing its price in some way. Based on this, there is a temptation to assume that looking for the truthful forecasts for other cryptocurrencies is more relevant and may actually be successful.
Undoubtedly, a reliable forecast is the guarantee of an effective earning strategy. Knowing how the price of the asset will change, you can clearly plan when, how many, and which cryptocurrencies to buy. Moreover, you can understand which coins you should use for short and long position trading.
Is the Source Trustworthy?
Usually, it is OK to trust reasoned opinions of the experts. But the person must:
- be not interested in dropping or promoting specific cryptocurrencies. That is, analyzing the forecasts of the bitcoin course, it’s better to walk past the people who own a huge amount of tokens and are interested in exaggerating the true potential of their assets.
- have a decent number of forecasts in their list that were correct. For example, if less than 7 out of total 10 predictions came to be true you should not consider it a good source to base your decisions on.
You should never rely on the forecasts made by the developers of cryptocurrency. Because there is a conflict of interest. Developers want to attract more users to their project. In that way, their forecasts for their own token are always overestimated while for other coins, they are underestimated.
If everyone is optimistic and predict growth – most likely there will be increased demand and cryptocurrency price will grow. Nevertheless, it is much better to develop and use your own technical and fundamental analysis skills. That way you can be 100% sure about the decisions you are making. Decisions that are not influenced by possible hidden motives of “an expert” who you don’t really know. But you may be able to build a network of reliable people that offer advice. Usually, it comes at a price of trial and error which may cost you dearly.