Right now the crypto currency markets are having the equivalent of a black Friday sale. If you ever needed a reason to buy you definitely have one now. But I will be sitting this one out.
Hey guys its Jason here, you would have to be living under a rock over the past couple of weeks if you didn’t know that crypto investors are seriously losing their cool. At the time of writing 99 out of the top 100 coins are in decline, and I don’t think it I’d be exaggerating if I said that we have officially entered a bear market.
I’m no analyst so I won’t attempt to dazzle you with some BS on where the bottom is or when it will come. But considering where we have come from its fair to say that most coins are now severely undervalued. Therefore it only makes sense that if you can allocate cash to invest in crypto currency you should be thinking about doing it now, obviously it goes without saying that you still need to do your due diligence.
The massive elephant in the room is the Bitcoin fork risk, this has essentially spread massive uncertainty across all crypto markets which has panicked investors into selling their coins while they can. In my opinion one of two scenarios will happen; Bitcoin does not fork, the network accepts the new protocols and we see a broad based rally across all crypto currencies. Or Bitcoin splits and investors will move or reinvest their crypto cash into alternative coins, which will fuel another rally but not as broad based. If this scenario transpires your ability to pick the right coin will determine how well you do.
Why I’m not getting involved
Years ago I used to trade forex and spread betting, whilst I was mildly successful and finished better than when I started I knew trading wasn’t for me. If you’re new to crypto trading you may be seduced by the potential returns buoyed by articles such as this telling you why you should be in. But what you will almost certainly underestimate is the affect your trading will have on your emotional state. When markets are up you will feel like you’re walking on air, you’ll walk around with an extra spring in your step, and you will now feel that you have risen above the petty politics of daily life.
Fast forward to a downturn and trust me it will come. The smile is still there because overall you’re still in profit and you’ve told yourself it’s just temporary and all will be alright soon. But in the back of your head you can’t shake that fact that you lost money in a matter of minutes or hours. If the downturn continues you will find that you will be constantly checking the price, life becomes a distraction and you’ve lost the smile and the spring in your step.
Fast forward to where we are now, a bear market. Queue the paranoia and panic if you haven’t cut your losses already by selling, you’re frantically searching for reasons or reassurance for why you should stay the course or when things will get better.
This is why I won’t be taking part, any type of trading is more of a test of emotional resilience than your skill in finding the best times to enter and exit the markets. If you are considering investing prepare yourself for this emotional rollercoaster. It goes without saying that you should only invest money that you can afford to lose. So if you’re thinking about maxing out your credit card or borrowing money to enter the market, just stop and think about how you intend to pay the debt back if the market moves against you.
Having said all of that, if you think you have what it takes to deal with these emotional side-effects. Now is definitely the time to buy most coins on the cheap, just make sure you do your research before jumping in.
Happy Trading!!
Once again thanks for reading fellow Steemians! As always if you received some value out of this post please hit the upvote button or drop a comment, and if you are interested in the content im blogging about be sure to follow me. ✌✌
Dude, I don't have the experience you do but I day traded for a minute while I was in school and it was a total nightmare. Crypto markets never close so why should I sleep? I might miss the perfect time to sell!
Oh, Poloniex is crashing and I can't short my ::whatevercoins:: perfect, I just lost so much profit...
Life is better without trading, for sure.
Have an upvote, resteem and follow.
Agreed bro, you have to have a certain mindset to trade effectively. Im just going to stick to mining coins, not as much stress.
Thanks for your support!
Life is full of stresses and it's best to avoid as many as possible.