I have seen it happen over and over again, like a scene from a movie that keeps replaying over and over. First market is in the red, then prices start going up and can't seem to stop going up. Everyone becomes euphoric and can't stop screaming "Up Only" and for good reason. It is literally the Up Only season, everything seems to go up. From solid fundamental coins to meme tokens and shit coins they all will be in the green. Fear and Greed Index and usually over 80% with everyone becoming extremely greedy and wanting to make as much money as they can. And then it happens again, there is a wicked dump and we see reports of billions of dollars worth of liquidations and lost. It's almost like they are just mere numbers but it is some people's life savings and some other mortgage money or children's school fees going down the drain. All those who thought they could make life changing money or generational wealth are forced to start all over again with nothing.
It has happened much too many times and yet so many still fall for it when it happens again. As I write this, Bitcoin is currently above $61,000 and Ethereum is above $3,700. While this is good news as it means we all make money it is also worrisome. The Bitcoin Fear and Greed Index stands at 78% Greed and the Ethereum Fear and Greed Index stands at 72% Greed. This means that a lot of people aren't taking out profit but are rather leveraging more and looking to make more money. When we get the crash that is almost certain to happen it will be very bloody for these set of people.
Another set of people at risk are those who are taking profit but buying into altcoins at these prices. It is generally believed that when Bitcoin and Ethereum boom in price, money generally moves into altcoins also as alts provide more gains. So a lot of people buy alts hoping for astronomical gains. This has been found not to be the case though as those who make gains are those who bought when the market was red. The risk of buying at these prices is that when the market eventually dumps like it surely will, those who bought at these prices will be very well and heavily underwater.
You don't want to be the guy who buys tokens at All Time Highs and then has to hope that prices beat All Time High to at least record some gains. The ones who make the most profit are those who invest in a token early. We have seen a lot of stories of many who lose it all when the market crashes. In my 3 years in the industry I have come across some of the most heartbreaking stories. Men losing it all, having to abandon their children, going homeless, losing their life savings and retirement plans.
Please be cautious, it's all about the long term, the one who gains the most is he who is there for the long term. Don't invest more than you can afford to lose and be sure to do your due diligence. That being said, Up Only and hope all our bags make it to the moon 馃殌馃殌.
