
The present volatility of the global market makes it easy for any traditional investor to be emotionally unstable. An investor may end up devastated after checking the price of stocks and monitoring markets. Therefore, it is essential to know that your emotions can be affected by fluctuations in the stock market. It more important to adopt the right attitude whenever a sudden market change occurs.
To understand the term "market-cycle psychology", one needs to note that the phrase combines two words — market-cycle and psychology. Psychology refers to the functions of the human mind and how they affect behavior. Market-cycle relates to the patterns that different markets attain at a given period.
When we place both terms together, we would see that the human mind plays a considerable role in the trends or patterns of a given market and at a given time. In this article, we will show the relationship between market-cycles and psychology.
Market cycle psychology refers to the emotional reaction of traders to respective market trends. Just as psychology has to do with human behavior, market-cycle psychology is human behavior towards the sudden changes in a given market. Analysts use the term often whenever explanations of the sudden change in price movements are needed.
Human emotions and behavior are the leading causes of market fluctuations. This means that an investor's sentiment or attitude is the foundation of market-cycle psychology. Market psychology has to do with investors' views towards the rise and fall of asset prices.
There are two specific terms when explaining the market's volatility. The terms bullish market and bearish market are direct consequences of a shift in a given asset price. A bullish market is when there is favorable market sentiment. Here, the prices of goods rise at a constant rate. In contrast, a bearish market is when there is unfavorable market sentiment. Here, the cost of goods declines at a steady pace.
Individuals influence the overall sentiment of a given market. Therefore, a bullish or bearish market results from the conceptions of investors and individuals of that particular financial market. According to theories of market psychology, change is a dynamic process. The price of an asset can change instantly, depending on the attitude or sentiments of individuals. It may be challenging to carry out successful transactions if investors are emotionally rigid, so prices of assets tend to shift because human beings are generally emotionally unstable.
The activities of a given market are dependent on traders' emotions. For instance, when an asset's price increases, it is always associated with traders' positive attitudes. In economics, the higher the demand, the higher the price and, subsequently, a reduced asset supply. So, when there is a positive sentiment amongst traders, there is a bullish market.
Similarly, when traders' attitudes are negative, there will be increased supply due to a price decline, which leads to a bearish market. These explanations show that human emotions affect market behavior.
Although investors' attitudes may influence the market, they can still change — increase or decrease independently. Now, here's the big question: what happens when there are changes in the market-cycle, and how do they affect an individual's psychology?
There are several emotions associated with a bullish trend. An individual may become optimistic, and others greedy or even both at the same time. However, these emotions will lead to an increased demand for the asset.
The consequence of these emotions on a bullish market will be explained as we proceed. Let's take, for instance, the price of an asset increases as the emotions of investors remain positive — continuous bullish sentiment. If the price continues to increase at a steady rate, it is wise to predict that the interest level may drop. However, let's assume that demand for assets increases with inflated prices.
Now, this is where greed comes in. Because the market keeps increasing with constant positivity from individuals, many individuals tend to go the extra mile. They tend to buy as much as possible with the hope of a continuous increase in the market cycle, giving less concern to its volatility.
This act of greed continues, and the market gets to an utmost point — over an extensive bullish run. At this point, maximum financial risks are inevitable. Judging by past occurrences, the market starts to undergo a considerable downslide because it can no longer sustain the continuous increase. An effect of the sudden downslide is the loss of dividends.
Now, let us look at the opposite of what was explained earlier. The primary emotion associated with a bearish market is complacency. Yes, the market is down, and traders are leaving the market. Even with all these concepts, some investors would still believe that the bullish run has not ended.
This type of market leads to traders becoming anxious. Traders in this scenario may start looking for answers trying to justify their beliefs of a bullish run. They tend to keep hold of their assets even as it keeps declining. What then happens when the prices drop further?
When the price of an asset declines, selling activity increases. At this point, many investors become afraid, and the market eventually capitulates. The market capitulates when every holder of an asset sells towards rock bottom. However, the market may become stabilized later on, and hope is restored.
Understanding how psychology affects the market cycle can bring about huge benefits. Two things are often associated with the market as regards increase or decrease. First, the market tends to be very productive when a lot of people are psychologically down. Secondly, when people are psychologically upbeat, the market tends to decline. Therefore the market cycle is counter-productive.
The moment traders realize the sentiments of individuals in a particular market; it becomes straightforward to profit. However, this ability to use psychological information to increase their yield is uncommon. However, one thing is sure: the moment of panic should be exploited, and the moment of greed should be overlooked.
According to what was illustrated earlier, you should know what these moments suggest. Nonetheless, this means that as a trader looking to benefit from the uncertainty of the entire trading community, you need to buy when prices are low and sell when prices are high.
This concept may not be easy to master, as buying the dip can still lead to even more drops. Therefore, many investors result in using market analytics to monitor price movements. Market analytics involves using tools that show the psychological state of a market at a specific time.
There is no doubt that psychology affects the market cycle. Yes, market-cycle psychology is easy to explain but applying it remains a pressing issue. Even the best investors still have a problem adopting the right attitude to suit a given market's psychology
MDEX is the decentralized exchange (DEX) platform built on Heco, the Huobi exchange blockchain. It is strategically positioned as the optimal choice for Eco-token transactions and the largest DeFi ecosystem with DEX, IMO, and DAO integration.
It is a decentralized exchange based on Automated Market Maker (AMM) technology on the HECO and Binance Smart Chain (BSC) with a tune of over $5 billion in total value locked. They aim to create cross-chain compatibility between leading chains to create a composite DEX ecosystem.
MDEX became the first project to integrate a dual mining mechanisms into its ecosystem. It utilizes a Liquidity and Transaction mining mechanism:
Liquidity Mining: Various liquidity pairs are available on its LP mining platform, including LP and single stakes. Currently, the platform holds one of the largest TVLs on the Heco chain. They offer a wide range of LP tokens available in the Heco ecosystem.
Its APYs are the largest on the Heco chain and quite competitive with other Dexes available in other chains. Users can start accessing the LP mining incentives and APYs by connecting to the pool.
Transaction Mining: MDEX is the first platform to integrate transaction mining which rewards users for transacting on the platform. By trading using the DEX, users get rewarded for all trade actions done on the DEX.
High APY revenue of transaction mining up till 26th Feb 2021 (source: mdex.com)
Decentralized Autonomous Organization (DAO): MDEX runs a DAO structure using its token MDX to achieve governance. MDX holders can propose to initiate a token listing by voting or collateralizing.
Initial Miner Offering (IMO): Similar to the Initial Coin Offering (ICO) on the Ethereum chain and the Initial Dex Offering (IDO) on BSC Dex chains, MDEX will standardize fundraising activities. Fundraising will be facilitated through its IMO platform. The token will help achieve a standard fundraising token based on the HT-IMO, the decentralized fundraising protocol on MDEX.
The platform is active with various incentives mechanism for its numerous LP pools, listings, and pairs. By interacting with its official Medium handle, can stay updated with the new pools, revised reward mechanisms, and new additions and information.
Four days ago, the platform passed its Certik audit, according to the team, “with flying colors.”
The project has a 93/100 score which shows a healthy indication of its codes and its platform features as safe for use.
MDX token distribution
The project is dubbed the “DeFi Golden Shovel” in Chinese cryptocurrency circles. The immediate roadmap plan is on achieving cross-chain interoperability with various chains.
The platform is looking prime to go multichain with the integration of top chains such as BSC and ETH to achieve a multi-chain era in DEX. According to its released Medium post:
“MDEX will gradually support ETH (layer 2 network), BSC, OKExChain, DOT, NEAR, and other public chains so that assets are inter-connected. In this way, we seek to build a pan-eco transaction protocol.”
On January 6, the project went online.
On January 19, liquidity mining & trading mining were open; the liquidity of the day reached US$275 million; and the transaction volume amounted to US$521 million.
On January 24 (18 days after its launch), the single-day transaction volume exceeded US$1 billion.
On February 1 (26 days after its launch), the liquidity exceeded US$ 1 billion.
On February 3, the Boardroom (Board of Directors) mechanism was launched, and the MDEX ecological fund, worth $15 million USD in MDEX was established.
On February 19, the single-day transaction volume exceeded US$2 billion.
On February 25th, MDEX ranked first in the CoinMarketCap global DEX rankings. It accounted for 53.48% of global DEX trading volume. The daily transaction volume reached a whopping $5 billion USD.
March 10 marked 51 days of MDEX being live. The cumulative transaction volume exceeded $100 billion USD.
On March 12, the total amount of repurchased and burnt MDX exceeded 10 million.
On March 16, MDEX Version 2.0 was released.
On March 18, the 24-hour transaction volume exceeded US$2.2 billion.TVL exceeded US$2.3 billion which builds a new record.
On March 19, in total 143 million MDX are distributed in the form of transaction mining subsidies + liquidity mining rewards, worth US$577 million.
The transaction fees over the first two months were over US$340 million. The platform's 7-day transaction fees rank 3rd, only after Bitcoin and Ethereum.
On Apr 8, Mdex launched on BSC, supporting single currency mining, liquidity mining, trading mining and asset cross-chain.
Within two hours of launch on Binance Smart Chain, the TVL of MDEX exceeded $1.5 billion. The total transaction volume exceeded $268 Million and the TVL on HECO and BSC is now over 5 billion.
The high transaction fees on the Ethereum saw a slice in ETH dominance. Many users in the DeFi sector have gravitated to other blockchain infrastructures like Huobi and Binance Smart Chain.
MDEX integration of other chains like ETH and BSC in the future will make it a multichain DEX service. It will offer unique features like transaction mining and an increase in TVL. Due to the user incentive mechanism of transaction mining and repurchase rewards, MDEX currently has relatively low transaction costs, and users benefit from transactions. Overall, MDEX presents low fees, incentives for transactions, low slippage, and ever-increasing LP pairs will make the platform attractive to users and maintain its dominance as the leading DEX in the ecosystem.
Overall it is vital to proceed with caution when purchasing tokens that have just been listed. For those who have not already read our articles on safety in the BSC it is crucial to reference the following items, HERE and HERE.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
For those who wish to learn more about MDEX, check out the following resources and media pages:
Lola (AMA HOST): Can the team member of HOLDEFI say hi?
Cengiz: Hi everybody, Glad to be here. I'm from Holdefi project and ready to answer your questions.
Feel free to ask anything about Holdefi ☺️
Lola (AMA HOST): You're welcome Cengiz. Glad to have you with us today.
Hope you're good.
Cengiz:Thanks
Me too😉😊
Lola (AMA HOST): Good👍
Let's move on to the questions.
At the 2nd half, the Community would be dropping their questions and you can pick any 3 questions of your choice.
Shall we start now
Cengiz: OK lets start.
Q1. Can we get to know more about you and your team? What are your roles and past experiences?
Cengiz:We are a +30 person company based in Turkey and have more than four years of experience in the cryptocurrency and blockchain world. We had a lot of success in the local sector, and today we are looking to implement our first global project.
Lola (AMA HOST): Great. What a team! More than team. And How have been your experience with them?
What's your role?
Cengiz: I am content leader of this lovely team.
We have Blockchain Development team, Web development, Marketing, R&D, Content, Graphic Design and management.
Lola (AMA HOST): Ohh. Great.
Q2. A lot of Projects are either on BSC or ETH. Rare to see Multichain Projects. Why did you choose to be on both? Is there anything behind this great move?
Cengiz: We have developed Holdefi on ethereum blockchain from the start. But today it is not hidden to anyone that BSC growth was really amazing and has its own community and fans. So we have decided to launch Holdefi protocol and token also on BSC besides ethereum.
Lola (AMA HOST): That's really good
Q3. Holdefi is an Opensource non-custodial money market protocol that allows users to be depositors or borrower. How can users participate?
Cengiz: Depositors provide liquidity to the market to earn a passive income, and everyone can borrow from this liquidity and repay it after a while. The Borrower must add collateral before borrowing any tokens. The value of the collateral should be greater than the value of the assets they want to borrow. This collateral is, in fact, a guarantee that they will repay the borrowed assets.
Lola(AMA HOST): Okay. Aside from the Collateral, will there be any interest?
Cengiz: No.
Collatoral is only a guarantee for repaying the borrowed assets.
Lola (AMA HOST): Okay. Thanks 😊
Q4. What offer do you have for HLD token holders?
Cengiz: HLD has many use cases include but are not limited to: Protocol governance, Burning, Liquidity mining, staking, Revenue sharing.
I will also share some links at last for reading more about the details.
Lola (AMA HOST): Okay. That would be nice.
Q5. Is there any requirements to join in the HLD IDO? And what should participants expect?
Cengiz: Our IDO has been finished. Now HLD is being traded on PancakeSwap and UniSwap. HLD also being added to centralized exchanges in the near future.
Lola (AMA HOST): All right. Thanks for the Update.
Q6. Can you also tell the Community about the revenue sharing and Liquidity mining?
Cengiz: Liquidity mining in summary means when people provide liquidity to Holdefi protocol they can earn/mine HLD token.
Revenue sharing also means Holdefi protocol revenue from the fees will be shared with the token holders.
Q7. What's the Future plans of this HOLDEFI?
Cengiz: Staking, competitions, Holdefi-V2, and many many plans are coming. We have a whole long-term plan that I do not want to spoil now😉, but our path is very long and certainly, those who joined us from the beginning could be very lucky.
Lola (AMA HOST): Wow! That's quite impressive. Then we are ready to journey with you to the Future. ☺️
Q8. Can you explain to the community about HLD pools?
Cengiz: If you mean HLD pools on UniSwap and PancakeSwap, Liquidity provided tokens by the team are going to be locked for years.
Lola (AMA HOST): Can you give exact period? Like for how many years?
Cengiz: We did not make final decision yet but I think at least 4 years. Maybe we will do that with the third party like TrustSwap. We will announce to the community when we made it.
Q9. Can you tell the Community what makes your Project different from others?
Cengiz: I can mention some of them here.
At Holdefi we have a feature called Promotion that we can do it on different markets which is Increase interest rates.
This feature helps us to increase the liquidity of our pools quickly and grow fast.
or on the otherside, we can decrease the borrow rate for borrowers to attract them to the platform
We seperate the market and collateral pools so that users can withdraw their money at any time. it is what other platforms do not have right now!
This pic also can describe promotion feature better.
Again community can find more details in our documents. I will share the links in the end of our conversation.
Lola (AMA HOST): All right.
Q10. Do share with us all the links that the readers can find out more and also follow the development of the project.
Cengiz: Holdefi website:
Lola (AMA HOST): Thanks Cengiz.
Can we also have the roadmap or is there a lite paper link we can check through too?
Cengiz:Yes you can find our whitepaper and other details at https://docs.holdefi.com/
Lola (AMA HOST): Okay. That's great.
Q11. Lastly, our favourite question in BSC News, do you have any alpha or juicy news that you can share with us today?
Cengiz:
We are in the last phases of Holdefi codes audit and tests, So Holdefi mainnet will be launched at the end of April early May.😊
Lola (AMA HOST): Great. Can't wait for it!
Cengiz: 🙈
Lola (AMA HOST): Thanks for this wonderful AMA, short and Precised. 😊
Cengiz: Thank you for inviting me here for this AMA.
There is no doubt that psychology affects the market cycle. Yes, market-cycle psychology is easy to explain but applying it remains a pressing issue.
The present volatility of the global market makes it easy for any traditional investor to be emotionally unstable. An investor may end up devastated after checking the price of stocks and monitoring markets. Therefore, it is essential to know that your emotions can be affected by fluctuations in the stock market. It more important to adopt the right attitude whenever a sudden market change occurs.
To understand the term "market-cycle psychology", one needs to note that the phrase combines two words — market-cycle and psychology. Psychology refers to the functions of the human mind and how they affect behavior. Market-cycle relates to the patterns that different markets attain at a given period.
When we place both terms together, we would see that the human mind plays a considerable role in the trends or patterns of a given market and at a given time. In this article, we will show the relationship between market-cycles and psychology.
Market cycle psychology refers to the emotional reaction of traders to respective market trends. Just as psychology has to do with human behavior, market-cycle psychology is human behavior towards the sudden changes in a given market. Analysts use the term often whenever explanations of the sudden change in price movements are needed.
Human emotions and behavior are the leading causes of market fluctuations. This means that an investor's sentiment or attitude is the foundation of market-cycle psychology. Market psychology has to do with investors' views towards the rise and fall of asset prices.
There are two specific terms when explaining the market's volatility. The terms bullish market and bearish market are direct consequences of a shift in a given asset price. A bullish market is when there is favorable market sentiment. Here, the prices of goods rise at a constant rate. In contrast, a bearish market is when there is unfavorable market sentiment. Here, the cost of goods declines at a steady pace.
Individuals influence the overall sentiment of a given market. Therefore, a bullish or bearish market results from the conceptions of investors and individuals of that particular financial market. According to theories of market psychology, change is a dynamic process. The price of an asset can change instantly, depending on the attitude or sentiments of individuals. It may be challenging to carry out successful transactions if investors are emotionally rigid, so prices of assets tend to shift because human beings are generally emotionally unstable.
The activities of a given market are dependent on traders' emotions. For instance, when an asset's price increases, it is always associated with traders' positive attitudes. In economics, the higher the demand, the higher the price and, subsequently, a reduced asset supply. So, when there is a positive sentiment amongst traders, there is a bullish market.
Similarly, when traders' attitudes are negative, there will be increased supply due to a price decline, which leads to a bearish market. These explanations show that human emotions affect market behavior.
Although investors' attitudes may influence the market, they can still change — increase or decrease independently. Now, here's the big question: what happens when there are changes in the market-cycle, and how do they affect an individual's psychology?
There are several emotions associated with a bullish trend. An individual may become optimistic, and others greedy or even both at the same time. However, these emotions will lead to an increased demand for the asset.
The consequence of these emotions on a bullish market will be explained as we proceed. Let's take, for instance, the price of an asset increases as the emotions of investors remain positive — continuous bullish sentiment. If the price continues to increase at a steady rate, it is wise to predict that the interest level may drop. However, let's assume that demand for assets increases with inflated prices.
Now, this is where greed comes in. Because the market keeps increasing with constant positivity from individuals, many individuals tend to go the extra mile. They tend to buy as much as possible with the hope of a continuous increase in the market cycle, giving less concern to its volatility.
This act of greed continues, and the market gets to an utmost point — over an extensive bullish run. At this point, maximum financial risks are inevitable. Judging by past occurrences, the market starts to undergo a considerable downslide because it can no longer sustain the continuous increase. An effect of the sudden downslide is the loss of dividends.
Now, let us look at the opposite of what was explained earlier. The primary emotion associated with a bearish market is complacency. Yes, the market is down, and traders are leaving the market. Even with all these concepts, some investors would still believe that the bullish run has not ended.
This type of market leads to traders becoming anxious. Traders in this scenario may start looking for answers trying to justify their beliefs of a bullish run. They tend to keep hold of their assets even as it keeps declining. What then happens when the prices drop further?
When the price of an asset declines, selling activity increases. At this point, many investors become afraid, and the market eventually capitulates. The market capitulates when every holder of an asset sells towards rock bottom. However, the market may become stabilized later on, and hope is restored.
Understanding how psychology affects the market cycle can bring about huge benefits. Two things are often associated with the market as regards increase or decrease. First, the market tends to be very productive when a lot of people are psychologically down. Secondly, when people are psychologically upbeat, the market tends to decline. Therefore the market cycle is counter-productive.
The moment traders realize the sentiments of individuals in a particular market; it becomes straightforward to profit. However, this ability to use psychological information to increase their yield is uncommon. However, one thing is sure: the moment of panic should be exploited, and the moment of greed should be overlooked.
According to what was illustrated earlier, you should know what these moments suggest. Nonetheless, this means that as a trader looking to benefit from the uncertainty of the entire trading community, you need to buy when prices are low and sell when prices are high.
This concept may not be easy to master, as buying the dip can still lead to even more drops. Therefore, many investors result in using market analytics to monitor price movements. Market analytics involves using tools that show the psychological state of a market at a specific time.
There is no doubt that psychology affects the market cycle. Yes, market-cycle psychology is easy to explain but applying it remains a pressing issue. Even the best investors still have a problem adopting the right attitude to suit a given market's psychology