Transition model from stocks to flows: wat cryptogeld beleggers moeten weten

Starting to invest in cryptocurrency can be a daunting step. Cryptocurrencies are unashamedly unpredictable, making informed investment decisions difficult, especially for new investors. In light of these issues, you can take advantage of the stock-flow model to make a more structured decision.

As with traditional exchanges, smart crypto investments are based on predicting where the values of various assets may go. You can find many cryptocurrency price prediction models, but the stock-to-flow ratio has become one of the most popular, as it has been designed with actual bitcoin price changes in mind over the years. Here’s a closer look at this model, how it works and why you need to understand how to use the inventory-to-flow transition in cryptography.

Why Other Models Aren’t Perfect
Many popular cryptocurrency investment models today are based on traditional, often less volatile Sundays. While they have a history of credibility with more traditional types of investment, cryptocurrency is a completely different beast because of its innovation for other reasons. Since crypto is more sensitive to emerging factors such as investor behavior, traditional models may not be as reliable in the long run.

Some models, such as Elliott Wave Theory, attempt to predict changes in the emotions and psychology of investors. They often fail because they depend on so many unknown and affecting factors. Investors ‘ decisions are not always the same, and may be more than just price changes, so predicting them is not as easy as it seems based on these models.

Other models, such as the rainbow chart, are based on historical data, but the future is not always the same as the past. For example, when Bitcoin hit an unprecedented high of $ 1,000 in 2013, many investors thought it was too expensive to buy. After bitcoin’s steady rise, this price looks cheap in retrospect, so in this case the Rainbow chart can get you out of the way.

What is the” stock to flow ” model?
The” from stocks to flow ” model adopts a simpler approach

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