A quick tip for investors.
Volume is the key to determine if an investment will be successful.
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So many investors follow trends and fads. Some people start investing when something becomes popular, but they later get caught and lose their money. This is due to the fact that while investing their money, individuals fail to consider the number of trading operations.
According to the standard economics rule, higher prices result from higher demand, while lower prices result from higher supply. The same is true of investing in cryptocurrencies. If a certain cryptocurrency's price is going to rise, there should be an increase in trading activity over several weeks or months.
You simply need to be ready for the decline in value of an asset if you invest in it.
Let us use $shibainu as an example.
A study on Shiba inu made me to find out that Shiba's volume in 2020 was trading at less than $100k but then it started gaining volume from $1000 to $20000 to $20000 and on and on till it got to $1m and down to billions of dollars.
Increase in volume indicates interest. People started getting interested and I bet you if you had put your money when shiba was having a trading volume of about $500k, you would have been a millionaire by now but we missed it.
You have an opportunity not to miss the next one. How prepared are you? We are still in the bear market, another wonderful opportunity to carry out your research and invest in a coin that it's price is low now, then wait for the Bull market season because it will surely come.
Make you carry out your own deligent research before investing on any project. This content is not a financial advice but just some tips that can be of help.
Thank you.