Investors, even the savvy ones, believe in the dismal science of economists analyses. More often than not, investors gave the analyses way more credibility than deserved.
Article on "Why Every Investor Should Be Looking At Cryptocurrency".
In search of the 'headwind' of the market, investors look to analyses and reports released by 'spot-on' economists, particularly those from the big houses. But just how spot-on are they?
... Perhaps, not so.
Given that the analyses are from taken from reliable sources, but the outcome of the analyses are often 'distorted'.
Why?
By handpicking data, economists have the ability to manipulate the 'pre-determined' outcome. And once the analyses are released to the public, the market-takers will chase after the direction that the market is heading (or has already headed).
Hence, the primal believe that some economists are often right about the market direction... Is not quite right.
The mass investors who jumped into the market- after the market has already moved in favor of 'pre-determined' direction- are generally the ones who gets burned.
Nonetheless, it is still possible for mass investors to make money... And that's in the crypto-market. Where no one economist can sway the market to move in a given direction.
And one of them being: Cryptocurrencies are largely dependent on demand and supply- where these demand and supply are often due to mid to long term changes in conventional financial policies. Think India's demonetisation etc...
In conventional investment markets, the arbitrage opportunities are often very short-lived. In fact, they are like fireflies and investors may already miss the boat when the arbitrages opportunities surfaced.
On the other hand, cryptocurrency market- which uses decentralised exchanges- can have very substantial arbitrage to profit from between different exchanges...
I.e. Just recently, BitX (Nigeria's exchange) sold bitcoin at a $500 premium as compared to the general average selling price of bitcoin... And I mean... $500 more for the same kind of bitcoin that you and I have.
It is not an everyday thing but a hundred or two isn't uncommon these days.
Find out what Gavin Smith, CEO of First Global Credit Limited has to say about exploiting arbitrage on the article. And also other information in details.
