Is everything overpriced?
Originally posted on lifestylemanics.com
You heard the whole world makes money in crypto. Everything is at least 3x since last year. You look at the charts, and you can’t believe your eyes. If you invested 1 year ago, now you were rich.
You finally grew some and decided to put some money in your favorite crypto. Should you now? I am happy you decided to read this article because it will save you a lot of money.
Besides the great technology behind it, crypto is great because it can make you huge profits in a short period. The same profits would take years or even decades to achieve in the stock market.
However, the same way you make gains, you can also make losses if you don’t know what you’re doing (gambling).
Just because the charts go to the moon doesn’t mean you should buy.
I made this mistake, it is tempting, but don’t do it. This is called FOMO (Fear Of Missing Out), when you’re knees are shaking and want to enter a parabolic trend.
So, everything is nearly parabolic now. Should you start investing now? The answer is it depends.
Side note, I love the answer “it depends.” It makes everybody seem smart and interesting even though they know nearly shit about the topic. It also fits well with every question.
Leaving aside the part that I made myself an amateur, which I am, it depends if you want to invest now in crypto.
If you want to 10x your investment in a month, please leave investing for other people. You better go buy lottery tickets. It is very possible, but the chances are very low, and the risks very high.
This applies to any investment at any time. Investing is for patient people. You know why? Because no trend goes only. Corrections and crashes come regularly and if you are not patient, you will panic-sell.
After you panic-sold, Murphy’s law punches you in the face and the chart bounces back. If you were patient, you would have known that profits will come.
If you plan to hold for a few months, then no. Stay away for now. We will have either a big correction in autumn, either the bear market will begin in autumn. Nothing is for sure, but it is a possibility.
Crypto goes in 4-year cycles. The next bull market will be in 4 years when most crypto assets will be doubled in value from what we have now. Thus, if you plan to buy and hold (Hodl!) for at least 4 years, you can invest whenever you want.
Never invest the money you need in the next 6 months. Unless you like being stressed and making emotional (bad) decisions. Always invest the money you don’t even notice is missing.
I made this mistake, and it made me stressed as fuck; I kept looking on the charts 10–20 times per day. This is not healthy and wise. Crypto is very volatile, and looking at the portfolio and charts more than once per day is not a good idea.
Crypto is in its early stages and has a lot of room to grow. It is similar to what Web 1.0 was in the early 90s. Crypto and blockchain will revolutionize finance and the entire digital world.
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