Lose money in Crypto recently? It is not because you are stupid....

in #cryptocurrency6 years ago (edited)

I was reading a job ad that said: "Being Correct = Making money" and "Let the Market tell you what is right".

But yet, does it?

Investors in crypto are highly intelligent, adaptive and for the most part extremely logical. Understanding block chain, smart contracts, proof-of-work, hash rates, "Tangle", ERC22 is no small feat.

The terms and logic is endless and is changing so rapidly it is hard to keep up.

Some "gurus" have made money via crypto and thus they are geniuses and can teach others to do the same. The belief of the selling point is that you can continue making money because they have a significant edge in the amount of work they put in.

But is this really the case?

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Markets mostly move in Trends

I have been around the block when it comes to the financial markets. When I was growing up, there were workshops on investing in web companies (2000) later when I started trading, there were countless schools teaching forex trading (2008-2009) prior to that was the futures traders in their commodities cycles (early 90s).

Now countless gurus are talking about Cryptos (including myself).

But if being right = making money, what happens when the entire market turns? or stagnates like how it has done recently?

I love the sandbox I am in called eToro because not only can i help others invest their money, but it gives me an avenue to understand psychology in the markets real-time. maxresdefault.jpg

A good fresh example is last year when the dollar weakened suddenly and dramatically. Was there a reason for such an incident? Maybe on hindsight, but at the time. Not really.

What happened to "Popular Investors" who focused on Forex? Most of them got in trouble. These are smart people who have honed their craft in trading over many years, but got wiped out by a market beyond their control.

We are all subject to market forces.

It does not take a genius to buy and hold.

In an upward moving market such as Bitcoin, BCH and such. Gurus who have made money this way may or may not have just been plain lucky. Best way to tell is how they have taken losses.

Some even are part of ponzi schemes and have made money while the rest of us be damned.

If they disappear completely off their YouTube channels or become Private on the eToro wall. You probably have an answer.

#cryptonick

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