I get the same questions and comments everyday during this period of the cycle:
"Is now a good time to buy?"
"What is happening?"
"Why is it crashing?"
"Should I sell?"
"I hear XYZ is the reason for this sell off!"
If you are asking and talking like the above examples you need to learn the boom/bust cycle that cryptocurrency has.
We are the veteran group here! We don't complain when coins drop 80% in less than a week! We BTFD!
What is BTFD? Buy The Fucking Dip! It is self explanatory, if you liked STEEM at $5 why don't you LOVE STEEM at $3.50? If you are chasing the next trend and hoping for a quick payout, you probably are loosing money!
The veterans of crypto don't ask "Should I sell?" during a crash! They know the time to sell (if they wanted to) has already passed and the HODL phase has begun! Selling during the HODL phase is what leads to huge panic and quick drops in prices which are then bought up by the same veterans who didn't during the crash!
So then when do I sell? Sell on the way UP after you have over 200% profit is my guideline and only take off your initial investment until you are at least 10x up. Once you have seen a really nice profit, take off another chunk! But do not panic sell the dips and do not FOMO buy the rallies! These are the classic N00b mistakes!
So you hear XYZ is the reason for the crash? Please do tell me more about how one single thing can determine the outcome of hundreds of billions of dollars and millions of people. The real truth is anytime you look at human emotions you have the same cycle, the economy/wallstreet calls it the "business cycle", a series of boom periods followed by bust periods.
In conclusion, the cycle is simple and it goes like this:
- Veterans see opportunity in a coin and begin buying (BTFD)
- Veterans begin to promote the coin and project while continuing to buy more
- Prices begin to skyrocket as FOMO (Fear Of Missing Out) sets in
- Veterans begin to sell off some of their coins as the market begins moving up too high too fast
- FUD spreads and fear sets in resulting in a loss of buyers. This is the top and when you see that beginning down swing
- The crash happens, n00bs ask why and begin selling BELOW where they purchased loosing money and most of the time never return. Begin the HODL stage!
- See step 1! Rinse, Wash, Repeat!
Happy Steeming!