Are we there yet? Are we there yet? This question comes to my mind when I look at the crypto space and the homemade investors speaking their mind about taking quick profits. This translates for a major problem (or opportunity) for the crypto market as the participants are becoming more and more too short-term in their thinking which leads to wild swings in crypto tokens prices. And this effect moves like a ripple for every participant in the crypto space, including those like me with a long-term view and investment strategy.
Hypnotized by the price
Being patient is a virtue and in the crypto space this translates into not allowing yourself to be swayed by the noise in the market when looking at the portfolio. Instead of being hypnotized by the price of your assets, focus on increasing their numbers by putting your tokens at work. That doesn't mean that you shouldn't follow the price as you still need to understand why a token is moving into a certain direction, but don't let your decisions be driven by the price but rather by what causes that movement.
Hype of the social media
The rise of social media has fueled the I WANT IT NOW mentality by creating hype on the crypto projects even without the fundamentals supporting it. Marketing schemes can make you lose your mind when it comes to investing in crypto and can get yourself in the middle of a pump and dump cycle. This appeals to the emotional side of the market participants which are jumping onboard after reading a tweet or energetic post, instead of taking the time, doing DYOR and analyzing the entry into a crypto project or the other.
What can you do?
As a crypto participant or investor, I think we should take a step back and digest slowly and in detail any piece of information relevant to our portfolio. Simply we should take the time to weigh up the facts and don't rush into any decision. As some of my friends do, another thing would be to stop looking at the crypto prices each day or even each hour of it. A sneaky peak once a week might suffice not to be decoupled from the market and know if there are any big movements for the cryptocurrencies in our portfolio.
We are living in a world that is always on the move, but when making financial decisions like investing or trading on the crypto markets, we should take our time to do so. Learning from mistakes might come at a cost and we've seen or heard about what short term investors, impatience and even panic can do. It is simply a path to downfall sooner or later in my opinion and even not healthy for our state of mind. So I have only few words to say in conclusion: Stay strong, HODL long!
Posted Using InLeo Alpha
