Many of us who are in this market come here for one thing : the promise of finding financial freedom with a small capital through a token that will do a 100x in one day, like we see on social media. However, the reality is much more complex. Many will not achieve their financial goal and will even lose more money than they invested. In this article, I’m going to explain the reasons why it’s much tougher to achieve your financial goal than many think.
Photo by Kenny Eliason
The Greed
When it comes to money, greed is the most dangerous emotion ! First of all, entering this market with the ambition to make a huge amount of money is greed itself. But when greed leads us towards putting all of our money into some very low-cap memecoins that have just been launched on Raydium, it becomes problematic.
I’m not saying that greed is 100% a bad thing, it’s important to take some risks in order to evolve in life or with money. But those risks should be controlled, and understanding that making money with investments can take time is essential, and that’s okay.
Not Understanding Cycles
Every market evolves in a cycle. Some markets are correlated with each other from time to time, such as crypto and stocks. Others do the opposite, for example, bonds with stocks or crypto.
It’s important to know that the crypto market historically follows a 4-year cycle that revolves around the Bitcoin halving, which reduces the block rewards for miners by half, thus diminishing inflation and the selling pressure from newly mined blocks.
Understanding where we are before making investment decisions is crucial. People who think that because the price is pumping even during a full month is a signal of the start of the bull run are wrong. The bull run usually takes 2 years, with a lot of retracements that can be very strong — up to -60% for some altcoins. However, during the bull run, the price action is still bullish, with higher highs being made in the long term.
Conclusion
There are many obstacles to achieving financial freedom. It’s important to detect them. I will share with you my tips to avoid them as best as you can in coming articles.
As always thank you for reading !
My favorite Crypto Faucet : Cointiply (referral)
Read exclusive articles on publish0x and if you want to support me for free you can sign in with this link
Disclaimer : This is not a financial advice, you need to do your own research !
