The main problem for financial markets is uncertainty. The worst thing for those who trade in those markets is panic!
Therefore, when such investments are made, the main point to be considered for the investor is to stay away from panic when problems arise due to uncertainties. Last week, we saw an environment where these uncertainties emerged.
While the news of FTX’s bankruptcy created serious uncertainty in terms of crypto asset markets, we encountered a short-term sharp decline and uncertainty environment created by the sales in Borsa Istanbul on Thursday morning. Both issues brought along a wave of panic for those who invested without a thorough understanding of these markets.
That’s why we always stand on the same point.
In this type of markets, first of all, you should not make your choice short-term. You should always keep in mind that daily returns can turn into losses in a very short time. You should act knowing that getting rich quick is close to impossible in the markets as in many areas of life.
Otherwise, any uncertainty that arises may cause you to panic and you may face much greater damage.
For this very reason, all experts often state that the basic principle in these markets is to act with a long-term perspective.
If you are going to invest in crypto assets, it is important to put the project represented by that crypto asset on the basis of your investments with a long-term perspective. Likewise, if you are going to invest in stock markets, you should focus on the medium and long-term projections of the companies you invest in.
A casual point of view can certainly tempt you from time to time with very attractive returns. However, it should not be forgotten that at such times it is necessary to be more cautious. In an environment where resource inflows become continuous, the increase in asset prices is of course inevitable. However, it is equally inevitable that every asset will eventually return to its true value.
So your main concern should be the long-term value.
This is perhaps the most overlooked point in the financial markets!
What will happen next?
Everyone is so confused.
Especially in the crypto asset market, FTX’s experiences raise the question of whether similar problems will arise in other major exchanges in the coming period. Last week was critical in this respect. With the news of the collapse of FTX, the question of whether the fluctuation and uncertainty in the crypto asset markets will bring exit from other exchanges came to the fore.
It is important in this respect that no aftershock has occurred so far. In the short term, at least the acute crisis seems to have been overcome. However, it should not be forgotten that the desired market depth is still not formed in crypto assets.
This is one of the main reasons for the high vulnerability!
However, this latest incident taught us another lesson.
Now, as much as you keep track of the assets invested in, it is imperative that you keep track of where you keep those investments!
