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 certain point because of which most forecasts even from public figures and eminent experts cannot be trusted. The thing is that there is a division of the information space into two opposing camps – supporters and opponents of the cryptocurrency. This trend is most easily traced on the example of forecasts of the bitcoin course. Large holders of BTC distribute positive forecasts, and skeptics assure that bitcoin is just a bubble that is about to burst.
However, the situation with bitcoin is really 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 it in one way or another. Based on this, there is a temptation to assume that looking for the correct forecasts for other cryptocurrencies is more relevant and has a chance for success.
Undoubtedly, a reliable forecast is the guarantee of an effective earning strategy on the cryptocurrency. Knowing how the price of the asset will change, you can clearly plan when, how many, and which coins to buy. Moreover, you can understand which coins to use for trading in short positions and which ones should be left for later.
Which Sources are Trustworthy?
In general, of course, you can trust the reasoned opinions of individual experts. But it must be people who:
- are not interested in promoting or dropping specific cryptocurrencies. That is, analyzing the forecasts of the bitcoin course, it’s better to pass by the people who own a huge amount of coins and are interested in exaggerating the value of their assets.
- have a sufficient number of worked out forecasts in their list. If at least 7 out of 10 expert predictions are embodied, it makes sense to seriously consider it as a source of information for making investment decisions.
In most cases, do not rely on the forecasts of developers of cryptocurrency. They are interested in attracting as many users as possible to their project. In that way, their forecasts about their own cryptocurrency are always overvalued while for other coins, they are underestimated.
If everyone is optimistic and predicts growth – it is quite possible that this will lead to an increase in demand for cryptocurrency and an increase in its value. Nevertheless, a much more reliable approach is the development and independent use of such tools as fundamental analysis and technical analysis of the cryptocurrency, so that the final investment decisions really reflect the investor’s opinion in the context of one’s interests and not the hard-to-guess interests of the author of a particular forecast.