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Puh, this week has been emotional for most of us. Each one has an opinion on the recent crash. Here are my thoughts on the recent crash and what I am doing.
The Price Of Volatility
The cryptocurrency market has made millionaires and I believe that you still can become one of them. The chances and possibilities in crypto are still huge but there is a price you have to pay and is the high volatility. Cryptocurrency prices go up and down all the time. They pump massively and crash hard. That?s crypto, man! If you can not handle a -50% crash then you can also not handle a 100x pump.
Don`t FOMO, Be Cool
You need to be cool as a cryptocurrency investor. Cryptocurrencies are not for investors with a faint heart. When you lose your coolness, you will start making mistakes, stupid mistakes lead my emotions and not by your rational mind. I just feel sorry for all those new crypto investors who aped into the hyped meme coin marked and sold with loss in fear. Greed comes first followed by fear.
FOMO is an important term in crypto space and means “Fear Of Missing Out.” This feeling is especially prevalent when a cryptocurrency rises in its value significantly over a relatively short time. It can be described as a feeling of anxiety that other people are getting rich while you are missing out
The problem with FOMO is that your investment decisions are based upon emotion instead of logic and reasoning. It can often lead to a situation where trades are made for an asset that is overpriced, incurring much greater risks of financial losses.
When a cryptocurrency rises in its value significantly over a relatively short time you are already too late to the party. FOMOing in at this point is always dangerous.
Understand your Investment.
Looking back at the latest doge pump, I have the impression that
1. There are more speculators than real investors in crypto and
2. Many people invest in stuff they don?t understand hoping to get rich quickly.
But one of the first things that you need to understand is this: You should only invest in stuff that you really understand because hoping to make quick money, while not understanding cryptocurrencies is a bad idea! So please, before you invest in cryptocurrencies, learn as much as possible about them. It is essential when it comes to investing. It`s a common mistake that people invest their money in stuff that they don`t understand and in the end, they end up getting rekt by meme coins.
Market Manipulation And FUD
There has always been FUD as a part of market manipulation and there always will be.
Elon Musk says Bitcoin is bad for the environment and China is banning Bitcoin ... again ... and again. China never liked cryptocurrency and announces Bitcoin bans frequently, so what! This is nothing big but when a single person can manipulate the tiny cryptocurrency market by farting out some tweets, then there is something wrong. There are a hell lot of degen traders in crypto following the wrong guys.
However, the message is that markets are manipulated, especially the relatively tiny cryptocurrency market. There have always been market manipulations, there has always been FUD and there always will be but I don?t care, I stay cool.
Long-Term Thinking
Make sure that you have a long-term strategy. The cryptocurrency markets are highly volatile, which means that the prices fluctuate widely. This can result in your investment being temporarily negative. Therefore, it makes sense to pursue a long-term investment strategy, which in the cryptocurrency market means around a year.
You have to see that there is a difference between investing and speculating. If you just do some day-trading then you are just speculating but speculation has nearly nothing to do with an investment.
If you want to know my personal long-term investment strategy, the diversification of my portfolio, and how I try to spot low market cap gems, you may check out one of my recent posts Sell The News And Buy The Dip ?? Cryptonator`s Ultimate Crypto Investment Guide.
Dips Are For Buying
Really all of my friends were asking me about crypto during the massive pump at the beginning of the year. As soon as Bitcoin was above 50,000 dollars, all of my friends began to FOMO in. That?s human nature but when you look at it rationally, it?s simple: Pumps are not for buying. Dips are for buying.
Honestly, that?s super simple but degens are not doing it. They are aping in to buy the top and sell the dip in fear of losing everything. That?s the recipe for losing money. It?s just crazy.
So keep in mind that dips are for buying, not only for buying but also for earning. Now is a good time to buy and to earn cryptocurrencies but a bad time for selling them. Many platforms have fixed fiat rewards like Publish0x. You are receiving more ETH, AMPL, and FARM per tip now than about two weeks ago.
My Final Words
I hope that sharing my thoughts on this recent dip somehow helps you to make the best out of the current situation. Be cool and think long-term.
I also like to mention that nothing in this post is sponsored. It really reflects my own opinion.
Thank you guys as always for reading, liking, following, and tipping ??
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