Just felt like sharing some thoughts after seeing the market behaviour in btc the past week. Feel free to disagree.
Most of the times new people buying in crypto gets screwed due to these factors:
1) FUD - Fear, Uncertainty, Doubt - Dumps due to fear and entering a trade with an amount that they are unable to manage
2) FOMO - Fear Of Missing Out - Pumps due to fear of missing out in a rush, and usually with an amount that they are unable to manage due to greed.
3) Trend Traders - Traders who trade using their own TA (technical analysis), other people's TA, social media hype, memes, news. All the TA signals gets amplified or overemphasised and you get screwed by trying to time the market.
4) Whale Manipulators - Tries to instigate the market with larger than normal pump and dump volumes. You react by doing what they want, usually panic selling.
5) You don’t understand what you are buying. You can never trust something that you don’t understand, 99% of the time, hence -> panic selling -> losing money.
Safest way to invest or buy in to crypto that you should do:
1) Buy fundamentally sound, long-standing coins with long price history (BTC,ETH,ADA,etc): Buy at the dips, slowly DCA (Dollar cost average in), HOLD what you bought when it DUMPS and DCA more, sell a portion and NOT ALL when it PUMPS / goes hyperbolic for cash to buy in next DUMP/dip. WHATEVER YOU DO, DON'T PANIC SELL.
2) For new coins that gets pumped out of now where: buy in only with what you can lose, and sell/cash out at intervals. DON'T TRY TO GUESS THE TIPPING POINT.
3) Don’t destroy your daily life by looking at the charts every single minute and react emotionally, or invest with what you cant afford to lose. You can never win by reacting emotionally.
4) Research and learn about the fundamentals and technology. Knowing what you are buying in gives you the confidence to hold your ground.
Non exhaustive but Hope it helps. If only everyone in the community understands where crypto is going, buying in coins like btc, eth, Ada or even other alt coins should be a stress free decision that you are taking for your future.
Not financial advice, please do your own due diligence 👍
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