Keep calm and HODL!
Originally posted on lifestylemaniacs.com
We are in a lot of stress and shit at the moment. We moved from greed to extreme fear in a month. The big issue is uncertainty: is the bull market over or not? What we know for sure is that we are in a dump.
I may be a masochist, but this big dump was necessary. There were too many gamblers in the crypto space putting their money into shit coins that could go to the moon.
Not to mention extremely greedy people who use high leverage or put all their money into coins without good fundamentals or without researching.
“Be fearful when others are greedy, be greedy when others are fearful.” — Warren Buffet
I must confess, I have been studying crypto and investing for only a year now. Until then, I have been also a gambler since 2017 in crypto and forex and I lost a lot of money. I was ready to quit, but then I decided to invest in learning.
I am still in profit, which is fortunate, but I guarantee more than half the crypto “investors” are in a big loss. However, 75% of the crypto investors who are still holding are under stress, myself included.
Before we continue, please give this article a clap. I think I deserve it as I am thinking of your wellbeing.
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Before we entered the crypto space, we needed to be prepared for this. I hope you didn’t think that crypto just goes up 10x and that is that — I was hoping it would; me like money.
If you are extremely stressed like me, it is because of these reasons.
I put all my saved money into crypto. How greedy of me, right? A month ago I sold some profits into USDT and almost had all my initial investment cashed out.
However, the dark devil from the left of my shoulder told me: “Look how everything goes up, don’t you want some more short-term profits? Don’t be a fool and buy, what can go wrong?”. Everything!
I re-invested and now I regret it. I bought more than I was ready to lose, because of greed. Now, I deserve my well-learned lesson.
The money invested is also the money I need for a new well-needed car, which I should buy in a month. This brings us to our second lesson.
Corrections happen every month around the 15th day and they may last for 2 months just to recover. If you invested a few days or weeks before this correction, you need to wait 3 months just to not be at a loss or in a small profit.
Crypto goes in cycles based on Bitcoin’s 4-year halving. When you invest in crypto, plan to hold for 4 years and there is a very high possibility you will be in profit.
I repeat, crypto is highly volatile and you may see a 10% increase in an hour, and afterward a 10% decrease, or vice versa. It is also a waste of time and energy.
If you are not a swing trader, you should check your portfolio maximum at every 12 hours (2 times per day).
Always invest or trade with a plan. It doesn’t matter which market you choose, you always need to have a plan if you want to make profits.
If you don’t have a plan, you’re not an investor, nor a trader, but a gambler.
I am a combination of investor and trader. I use fundamental analysis to choose a good asset but also use technical analysis to know when to enter and exit.
My mistake is that I didn’t exit Bitcoin a month ago when the indicators told me I should. Bitcoin kept going down and it is a matter of days or weeks until the entire crypto market follows it.
Bitcoin is the leader, where Bitcoin goes, crypto floes (sooner or later). There are also seasons: Bitcoin season, altcoin season, major correction, repeat. Guess in which part we are now?
I expect we are in half of the bull market and a big correction was necessary to mark this timestamp. The 200D MA supports Bitcoin, whereas the 50D MA supports the top altcoins
BTCUSD 1D chart on TradingView
As we can see, the sell volume is decreasing and the RSI is less than 20. We are going up for sure from now on. Just keep calm and HODL!
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Disclaimer: I am not a financial adviser and don’t recommend investing in anything as nothing is guaranteed. Everything I write on the topic is for informational and educational purposes only. Always do your research.