Bitcoin and Ether prices are up around 20% on the seven-day chart. But a recent study warned that crypto investors should research carefully before they start trading during the bull run.
When the market makes such a move, crypto traders are usually aggressive. They make trades for a profit, buying long positions that they think will make the most income. This can lead to an increase in volatility in the cryptocurrency exchange market. Furthermore, traders usually predict each other’s moves. As a result, the market can become increasingly volatile with short-term, self-fulfilling expectations.
A recent study found that 91% of cryptocurrencies launched in 2014 are now wiped out. 704 which are now dead cryptocurrencies were released in 2017. And 2018 was the worst year of crypto extinction, with 751 coins dead:
“We reviewed data on over 2,400 dead coins from Coinopsy, compiling data on the current status of each coin. We then analyzed the performance of each coin over the last 10 years, noting when coins were killed off and why.”
The research found several common themes in dead coins: scams, jokes, short-lived ICOs, and abandoned or no volume.
However, it is worth noting that we shouldn’t give a bad impression of coins just by looking at the crashed ones. This failure rate is similar to the rate across the economy as new restaurants opened, and new websites died in the Dot Com era.
That is not to say that cryptocurrencies are too difficult or risky to learn. But research highlighted the importance of staying informed, alert, and aware of what you’re doing.
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