While many cryptocurrency projects are still in price discovery mode, many others have exploded over the past couple of months to reach higher highs, attaining new record values and enriching its believers. The crypto space looks so fertile currently and for the first time in a very long time, investing in every cryptocurrency looks like a mastery move. Like the game of chess, the tactics are playing out and majority are looking like hardcore traders; well, this is just the space rewarding everyone who believed. Regardless of how strong or weak a project’s fundamentals may be, the higher probability is that early investors are currently in gains…huge ones, relatively. It wouldn’t be so in a bear market.
Bitcoin is smashing new levels and testing stronger support at very good prices while also reaching out for new highs and making the news headlines. Ethereum has also followed up this move to retain its position at the second spot despite a good number of projects boasting better technology and user experience. Many low cap cryptocurrencies have multiplied their values over a hundred times and even more. Some investors are yet to believe what the space is dishing out to its believers while others believe ‘things are just getting started’. Well I’m in both categories, what a ride it has already been and it appears our space shuttle still have more gas in it.
Flashback to about a year ago, the charts looked almost completely different from what we have currently. The pandemic sweeping throughout the world had forced many investors to load up fiat and send their cryptocurrency and stock investments to the dumps. Price suffered highly, double digit losses, recovery seemed far-fetched. Human instinct took over. Rather than play with uncertainty, why not take the little you currently can? Many investors did so. Amidst global unrest and turmoil, stacking up on a more generally accepted medium of exchange is a good ‘precaution’.
Guess it's time to leave this ship! source
The crypto space is a very dynamic zone with only little impossibilities and endless possibilities, especially when it comes to price movements. Several attempts a predicting price movement goes wrong and for a cryptocurrency investor, ‘luck rules’.
Price movements trigger emotions from both long term and short-term investors, while long term investors seem to be more in control of their emotions when it comes to reactions to price movements, fact remains that they feel an equal urge to react to it. Most times, the urge to sell gets more pressing and it gets so hard to keep on holding these assets. In gains or the other way round, there’s always a pressing urge to either cut losses or take gains while they still last.
While the weak hands sold their stakes at losses or little gains, others bought the dips. Regardless of what caused the dip in price, there always exists a chance for a recovery, especially in the crypto space…impossibility is just a word thrown around for no reason. No matter how bad a project dipped, it could turn its fortunes around if the right moves are made. While this is not always the case, this time was positive. What are the chances of the right moves being made and what are the possibilities of the market reacting as expected towards these moves? These important questions needs to be considered before buying a dip.
Barely a year later, things have flourished in a flamboyant fashion. The total cryptocurrency market capitalization have grown over five times its former figure and almost every tangible project have seen some good returns. The weak hands are unarguably regretting their life decisions. Selling at a loss makes this even more painful and more educative…lol.
Fact is, the crypto space is a home of opportunities and the in midst of countless opportunities, there are chances of missing out on a good number of opportunities. Chances of getting hold of rewarding opportunities are also high. Despite selling at a loss and missing some good gains as the crypto market recovered, the ‘dumpers’ who have learnt their lessons still stand a chance of reaping from the ravaging bull market…if only they really learnt their lessons.
