Prior to my first crypto purchase, back in 2017 I have never had any experience with any sort of investments, with trading or the finance world. I was just a working man, with a workers mentality and life could never be better than what my horizons were back then. I've yet managed to live on an exotic island, but things and mentality have changed over the span of over three years in crypto.
I was talking with my father on the phone yesterday and at some point the discussion got to his inherited agricultural land that he owns in my grandma's village. Granny passed away over five years ago and no one is working that land for many many many years. The area has been on continuous development for that matter and agriculture is not the same as it used to be when I was a kid.
I asked my father yesterday why isn't he selling the land, if not working it or doing anything with it and he told me that it's too soon. Plenty of villagers have sold theirs for peanuts money and the scarcer it becomes the higher the price goes. That's when I thought, man this guys is a better investor than I am, although he's not an actual investor and if he'd been in crypto earlier he'd probably made more money than I did.
Had he sold his piece of land recently he could have cashed in a few grands on it, but that will probably 2x or 3x in a five or so years down the road. His plan though is to be among the last ones selling land over there and score the highest price possible. Pretty much what all of us want here in crypto.
Most of the crypto markets participants are making two major mistakes in my opinion. One is that they sell too much too soon, out of the fear of not loosing what they already see as sure profits and the other is selling too late, lead by greed of locking in massive profits, instead of chasing for the meat in between. I've been in the second category the past bull market and learnt that on my own experience.
Especially for someone that hasn't been around in a previous boom and bust cycle it is hard to comprehend and envision where this market might get during the current one, what price ranges could the crypto assets reach to. That's no easy task for sure. Hence selling becomes an easy task. You just hit the button, your order gets filled and there you are, parked on USDT. Few weeks or months later you see prices sky rocketing and you might make a bigger mistake.
You might FOMO and buy back just to see even the profits you already had locked in, flushing away down the crypto toilet. As my father said during the talk regarding his land, it's easy to sell, but it's a bit harder to buy at a fair price, or even as a bargain and be able to sell later on nice profits. This talk got me thinking on some other crypto related topic, namely the Wall Street cheat sheet.
I've had a post a few days ago regarding on where I think we could be on that roller coaster chart and I just realized I was wrong on my judgement. I thought at that time that we're on the optimistic phase, but no we're not. Seeing how the majority is already looking at taking profits and calling for the top every other day I'd say we're actually in the disbelief phase. We haven't seen the fun part yet.
Many of the altcoins haven't even gotten to their previous ATHs, LTC being one such example. Litecoin is also one of AUM of Grayscale and these guys know what they invest in, they're not amateurs. I know some are saying that plenty of altcoins won't ever reach their 2017 ATHs but I disagree. I believe that the crypto markets are still more than irrational and we will have shitcoins getting exorbitant and extreme FOMOed.
We're just not there yet. We're in the disbelief phase and that's not the point where one should look into taking profits on long term investments. It's easy to sell, as my father was saying yesterday, and it's even easier to get comfortable, but no real money is meant out of comfortable positions. Bottom line I consider there's still plenty of room for the upside and we're quite away from parabolic spikes...
Images courtesy of pixabay.
Thanks for attention,
Adrian