Hello again! This is Metapiziks from Planet Crypton just logging some observations why a lot of Earth crypto traders are somehow losing money when they trade crypto.
Summarizing my observations I find that a lot of people are too lazy to research about coins. I think the lure of fast money is really inherent among earthlings and so if a friend or if enough people in a forum/group they are a member in recommend some coins and tell them "It's going to moon," they'd jump on it.
There's someone I know who asked me for a recommendation, and I actually gave some. But then a few months later we touched base and we talked about those coins and that he bought, one of the coins I mentioned to him before. Then he asked me if what price should he sell. Oh, my! I was shocked because he was waiting for me to tell him when to sell. I just actually told him that I am still holding them but in reality I sold mine a long time ago (at a profit).
So there are these types of people who wants everything to be laid on a silver platter.
I notice too on a lot of groups that I am a member of that people are always asking is it good to buy or sell. I already know those people will lose a lot of money. You'd actually trust someone you don't know to decide for you to sell or buy?
Okay, so for this installment, I am going to share how, you, as the sole holder of all liability of your funds, can have an idea on how to not be dependent on hearsays and rumors and "because your friend told you so," in short, trading blindly.
First, you have a friend called Google. Google the coin you want to buy and add the word whitepaper. For example you like Gala coin, so write on Google's search bar "Gala+crypto+whitepaper."
The whitepaper will tell you about what the project is all about. A few minutes of reading won't hurt you especially if you're putting in thousands of dollars.
After reading, you can type: "Gala+crypto+news." This one I just do to see if they are getting covered by major publications or major news sites.
You can also go to Twitter and LinkedIn and see how many followers your chosen coin is. Of course, the more followers the better. Not necessarily all the followers are invested in it too but at least if a certain coin has some followers it means they are putting some effort in marketing the coin.
Things to take note are total supply of coins, team behind the coin and road map. The road map will tell you if they are actually hitting their development targets.
Mostly these coins have their own websites. If they don't have a website, don't bother anymore.
Okay, so say you have read up some of the stuff about the coin you'd like to buy, the next thing to look at is price history. So you got impressed that say Gala has some up and coming powerhouse games and you feel the team behind Gala Games are solid enough, however, you have to look at too if the current price is a good entry price.
So you got into a group and somebody says, "Gala to go to $100. Buy now!"
Just do a simple computation. You get the total number of gala coins and multiply it to $100. Coinbase.com says Gala have 7 billion circulating supply, so multiply that by $100 and you should get $700 billion. Just think about it if a game can truly be worth that much?
The thing to know if how much most likely Gala can go is look at other game coins like Sand, Mana or Axie. Let's take Sand for example. Sand has 3 billion max supply. At Sand's current price at around $5, so multiply by 3 billion, that should give you $15 billion market capitalization.
At $15 billion reference point for Sandbox, you can at least now gauge that maybe Gala can go to $2.14, assuming Gala can match Sandbox's market cap.
The next thing to do is looking at price charts. I normally feel bad buying at the high, moreso at the all-time high. But if momentum is really that strong I actually just buy a little and buy more when it dips. Especially if you notice a kind of pattern is forming or when you notice that the price is just moving within a set of range, then I would really wait for the coin to be at least on the low range of the price.
So again, know your coins by researching a bit because your money is your responsibility. You can't really ask your friend or your forum mate to pay for your losses.
Lastly, when you are well informed, you will just have stronger confidence on your chosen coin no matter how much low it dips. Avoid buying when you don't know anything about the coin.
Hope you learned something.
