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Marketing Application in Crypto Investment - The Market

Updated: Feb 14, 2023

I developed an interest in trading as a child in 2000 and began studying the stock market around the same time. In 2015, I enrolled in a paid course for stock investment and started trading S&P500, Forex, and Options. At first, I experienced success, earning around 50-100$ per day. However, the Brexit and Black Swan events of 2016 resulted in a significant loss of 50,000$. I made another mistake when I traded without a stop loss during the early days of President Trump's term. Despite expert predictions of a significant decline in the S&P500, I held onto a negative position, ultimately losing another 10,000$. During a year, I made mistakes and lost a total of 60,000$.

To improve my results, I systematically tested different methods and indicators, starting with small investments and gradually increasing the amount. I applied the Product Life Cycle theory of marketing to my investment experience and discovered similarities between Elliot Waves and Fibonacci ratios. Since 2018, I have used these two tools in analyzing cryptocurrency investments and achieved favorable outcomes.

Today, I plan to start the first post about my Marketing Application in Cryptocurrency Investment. The first topic I want to cover is "The market".

The explosion of the cryptocurrency market can be explained by several marketing theories. The growth of the cryptocurrency market can be driven by two main factors, which are similar to those in any other industry: penetration and consumption. Penetration refers to the number of new users entering the market, and consumption represents the overall value of the market and its assets. These two elements are interdependent and can have a significant impact on the growth and development of the cryptocurrency market. Understanding the relationship between penetration and consumption can help traders and investors make informed decisions and potentially benefit from market trends.

In fact, you and I can realize one theory. It is the "network effect," which states that a product or service becomes more valuable as more people use it. This is relevant to the cryptocurrency market because the value of a cryptocurrency is often determined by the number of people using it. As more people adopt and invest in a particular cryptocurrency, its value can increase, leading to a snowball effect where even more people become interested in it.

Another theory is the "hype cycle," which describes the pattern of a technology's growth and mainstream acceptance. The hype cycle suggests that new technologies, such as cryptocurrencies, go through a period of inflated expectations before eventually reaching mainstream adoption. The hype around cryptocurrencies, driven by media coverage and market speculation, may have contributed to the market's explosive growth.

Additionally, the marketing strategy used in the Crypto market can be considered as a disruptive one, where a new entrant uses a new business model to disrupt an established market by providing a better value proposition. This can be seen in the case of Cryptocurrency, which disrupted the traditional banking systems and offered decentralization, security, and fast transactions.

Overall, the explosion of the cryptocurrency market can be explained by a combination of these marketing theories, as well as the unique features and benefits of cryptocurrencies, which have been effectively communicated and promoted to a wide audience.

It's quite hard to explain it simply. I hope you can understand my meaning and find it valuable to you.

I will keep this note as my Cryptocurrency investment Diary.

Best regards

Ryan Holmes

Cryptocurrency Investment Diary, 16 Feb 2019


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