Are You Investing, Or Just Gambling?

Photo by Keenan Constance on Unsplash

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.

Markets are impossible to predict with absolute certainty. 

There is no crystal ball that will tell you the exact movements from day to day. From afar, those that find success time after time may look prescient or clairvoyant – Warren Buffett of Berkshire Hathaway Inc. BRK comes to mind – but in reality, they make highly educated guesses informed by countless hours of due diligence. 

Too many retail investors make decisions based on little to no research, opting for gut instincts rather than rational thought. This is evident in any market but perhaps most acutely in the cryptocurrency market. 

Cryptos like Bitcoin BTC/USD and Ethereum ETH/USD can have wild price swings and behave in a seemingly erratic fashion. And this becomes significantly more apparent when dealing with smaller-cap coins or meme coins like Shiba Inu SHIB/USD and Dogecoin DOGE/USD.

However, despite the volatility and apparent lack of logic, there are real factors that can inform the price action of a coin. Take Bitcoin for example. Roughly every four years the rewards doled out to miners on the network are cut in half. This essentially creates a supply shock. And as anyone who has taken econ 101 can attest, a decrease in supply will lead to an increase in price. Historically this has mostly held true.

Smart investors see these patterns and can leverage them for their benefit. This is the key distinction between investing and gambling. 

However, many other coins lack predictable markers. Their behavior truly is erratic, and investors can lose when gambling with them. Seasonal Tokens, a new crypto project, has created a system informed by this BTC supply shock to help traders more reliably predict price movements.

The project contains four tokens – Summer SUMMER/USD, Autumn AUTUMN/USD, Winter WINTER/USD and Spring SPRING/USD –  designed to rise and fall in price in a predictable manner. 

The price of each token is influenced by its mining rewards and the rewards doled out to those choosing to provide liquidity. By adjusting these rewards, the ecosystem – in theory – can change the relative supply and demand for each token.

With this method, traders can successively trade from each season into the next, ever-increasing the number of tokens they hold and – hopefully – their value.

If you are interested in learning more, check out https://seasonaltokens.org/.

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.