I know a lot of people that invested because of the hype of the crypto Bull Run, they heard crypto is the trending thing and they decided to follow the trend. I always tell people, when you are buying a coin and expecting the price to shoot up within a few days, you are gambling and not investing. Because when you have those expectations you automatically be a weak hand, little price crash, you start panicking and start panic selling.
Now to be a crypto investor, you need to put your learning first, don’t just be among the jumpers who jump and follow the crowd blindly. It’s extremely dangerous to that. I will explain that.
For instance, a particular crypto is getting a lot of hype and price jump. Everyone is talking about it and buying making the price spike.
You see this crypto trending everywhere, on all social media platforms like Twitter, telegram, WhatsApp and all. The crypto get stuck in your head and you can’t stop thinking about it, you should pause and ask yourself this question “if everyone is buying it up and they know about it, who is left to buy?”. Of course the first setup of people that bought when it was cheaper have to get their profit, so they sell and take profit, the coin dumps and you get angry and sell yours and lose part of your initial investment. So this is likely always going to happen if you jump in out of FOMO, then boom, the early buyers will dump on you. I think about this too, so I rather wait and buy the dip.
This will always and certainly happen to you when you don’t understand what you are doing and always following the crowd. So it’s always advisable you invest in the knowledge of what you would like to do.