We all know what the FOMO (Fear Of Missing Out) is, but most of us don't know how to react when it happens. Let's take a concrete case. SOL surged today by more than 15%.
What are the possible options?
1) You can wait for a correction and buy the dip. You just need to be patient, it will correct tomorrow, next week or next month, but it will correct for sure.
2) You can short it once it seems to be at the top. It is quite risky. However, you can do it cautiously, by putting only small amounts without any leverage.
3) You can try to understand the reasons of the pump and check the other cryptos which could surge due to the same reasons - e.g., SOL might have pumped for several reasons: the announcement regarding the ability to mint multiple NFTs on Solana with very low fees, or the Android phone launch... Announced for April 13 - and hence in that case, most cryptos of the Solana ecosystem could benefit from the same announcement, e.g., Raydium (RAY).
Personally, I decided to wait until April 13:
- If the launch happens on expected date without any problem, there will be a bit of excitement, and then it will drop. Good time to short.
- If there is any problem at launch, it will simply drop sooner than expected. In that case, I will start shorting SOL immediately on April 13.
Trading is not only buying, it is also shorting. You can earn money when it goes down. Please be cautious with leverage, you do not need it for crypto.
Disclaimer: this article does not contain any financial advice. The information is provided for general informational and educational purposes only.
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