Anyone, really anyone can participate in the world of cryptocurrencies, not only the smart investor but also Moonboys, Pump Chasers, and Paperhands. While the smart investor can become a millionaire by investing in cryptocurrencies, Moonboys, Paperhands, and Pump Chasers get rekt.
Here is what I mean.
Take a look at the latest Loopring charts for example. The latest price action was insane, in other words: Loopring pumped.
Now the Loopring group on Telegram was always a quiet group more focussed on the product and less on the price of the token.
It all changed with this insane price action, the pump. Look at the stats.
The number of messages and of new users exploded. The group was literally flooded with pump chasers and the trash talk began.
Most of the messages were stuff like "Why pump, when pump, when moon, when rocket?" and all kinds of similar brainless stuff.
When LRC went down like -2%, questions came like "Why is it dumping?" Asking such a question shows that some people are not made for crypto and its wide price fluctuations.
This is actually a typical phenomenon that you can witness in all crypto groups when the price of a coin or token pumps.
Moonboys and pump chasers start aping into the pump and start entering the according to groups at the same time.
Pump chasers are chasing every pump. They look for the biggest gainers on Coinbase or wherever and then the FOMO (Fear of Missing out) kicks in. They think that many people are making a lot of money right now with this coin while they are missing out.
This feeling of FOMO is especially prevalent when a cryptocurrency rises in its value significantly over a relatively short time. They probably think that this pump goes on forever and everyone else gets rich while they are watching from the sidelines. But in the end, they are the ones who bought the top.
Pumpchasers and Moonboys do trading without due diligence and research. They are just aping into signals and FOMO into pumps without caring about the product or some tokenomics. They know absolutely nothing about their investment, they buy it because it is pumping. That's the only reason.
Of course, after such a massive pump, some kind of correction sets in when long-term holders start taking profits.
The price of the asset gets down and the moonboy gets panics: "Price is down -2%, why is it dumping?"
Then they start wining: "I am at loss."
Just to say it very clear: As long as you haven't sold your asset, you haven't made any loss or profit. Everything is just "on paper. At the moment you have hit that sell button, you made either a profit or a loss.
One thing is for sure: If you only follow your emotions when you trade then it is the surest way to get poor. Don't be a pump chaser who buys in at the top and ends up panic selling after the price correction.
My Final Conclusion
After reading my post, please promise me that you will never ape into the next pump. I described how you shouldn't trade or invest in cryptocurrencies. If you like to know how to do it the right way then please continue reading with the two posts that I linked at the end of this post.
I hope that I could provide you with some useful information and that reading my post is somehow valuable for you. The intention of my post is just to help you to avoid the Degen mode of a pump chaser. Become a professional trader or a smart investor instead. This post really reflects my own opinion and there are no referral links attached.
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You may also like: Don´t Ape Into Signals Nor FOMO Into Pumps - Instead, Trade Like A Pro And Not Like A Degen! 🤓
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