Cryptos are going crazy and every where you look, every chart you view, prices are doubling, tripling, or even more than that. And if you don't have your emotions in check, you might give into the evil of FOMO and buy at the top, thinking you will never have that opportunity again.
BUT, what if I told you that opportunity will be there again. That you will be able to buy the bottom and enjoy your own profits and lambos. This is because the universal law of history repeating itself also applies to the wonderful lucrative world of cryptocurrency.
The Cycle
So what exactly repeats itself? Simply said the elusive cycle. And now you might ask "but what is the cycle wise guy". Well, if you zoom out of pretty much any financial price chart within cryptocurrencies, you will almost always notice a certain trend. Zoom out far enough and you will clearly be able to pinpoint when the bull market ended in 2017 and where most of the coins reached their previous ATHs. Zoom out at the right scale and you will see that cryptos can rise exponentially, pull back to a higher bottom, go sideways a bit and then continue on the next rise. This process constantly repeats itself.
Below we see an example of a cycle. If that were to be zoomed in, it might look like the price is going down, but zoom out far enough and you start noticing that the average median is always in an uptrend. Of course this only works if the cryptocurrency is actually based on a valuable project, so no pump and dump 'shitcoins'.
Take Control of your Emotions!
Taking advantage of this concept of cycles is actually pretty simple. All those emotions I referred to at the beginning of this post should be nowhere near your decision process when buying or selling crypto. The term FOMO (Fear Of Missing Out) is at the center of this. FOMO is cancer to crypto trading, long or short term, so avoid that at all cost and if possible burn it with a flamethrower. FUD (Fear, uncertainty, and doubt) is also one those pesky things. People who want the price to go down spread FUD. Those with 'weak hands' sell in panic, while those who know how to play the game, buy all of that up.
Once you remove emotion from reason, trusting the cycle will become a natural way of maneuvering in the crypto space. Bitcoin speeding up to the moon? You certainly won't buy that. Instead you will calmly and patiently wait for that inevitable pullback and anticipate the bottom to buy your share.
And if the price drops drastically just as you bought something, engage with nerves of steel and HODL with all your might. Patience will surely be a virtue.
Be sure to not panic. So we can pass each other in our respective lambos in the future. :)
This is not absolute financial advice of course. Always do your own research!
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