Hello everyone,
Anybody here depressed by the current price of steem at $0.95 USD? Aren't we all waiting for that great run up to $10 per steem?
Well, my perspective on all this has changed overtime and especially since I started learning the Wyckoff Method at Learncrypto.io. I learned to embrace the trend and play the game of the big operators.
I Lost a Lot of Money Not Knowing This
Back in July 2016, there was a giant run up from $0.35 to around $5 per steem. I was a millionaire in Canadian dollars for a few days. I saw all of those people around me powering down and putting their money into either bitcoin or steem dollars. All the way down, I didn't cash out...hoping the crypto gods would turn this downtrend that took almost 6 months to reverse. Foolish I was.
Looking back, with what I know now, it would have been self evident that I would divest so that I could buy back when the bottom of the downtrend showed up and by doing so, multiply my stakes on steem.
Ignorance IS NOT Bliss
-Jim Rohn
Big Operators Go On Campaigns
Just like anything, the distribution of steem tokens follow an 80/20 curve. There are large whales on steem as there are large whales on the exchanges. (They may not be the same persons)
What large operators do is have campaigns. Sometimes those campaigns can go for weeks and months. The end of that campaign is usually a major announcement made about a particular cryptocurrency.
Since they know a major announcement is coming and that it will be a great time to sell, they willingly go and put downward pressure on the price by spreading negative news and putting a lot of their tokens for sale on the market. (if you own 80% of the tokens on a given exchange, it's fairly easy to do)
As the market is flooded with supply and the price is tumbling down, the large operator(s) creates a panic in the market where people sell at low prices to cut their loses.
When the price has reach a satisfactory low and the major announcement is just around the corner. They buy back the tokens by reversing the trend of supply and demand. They start buying back everything they can at the lowest price possible while keeping an artificial sell wall. Once they bought all the tokens they wanted, they take away that sell wall and initiate that trend reversal.
At that time, the major announcement is out and a lot of attention is directed towards that cryptocurrency that went up by 20% or more. When the run up shows fatigue, it's time for the large operator(s) to sell their tokens to people who's just heard about it and decided to invest at the peak.
Rince and repeat.
Conclusion - Ignorance Is Not Bliss
All of this may seem unfair or dishonest...it may well be but that opinion won't change the game. You have two choices when it comes to this.
Either you decide that you don't want to spend the time learning all of this stuff and become a long term hodler. (nothing wrong with that and there is a lot of money long term is that strategy)
or
You decide to take a course and read books to learn more about how the game work and make the most of it.
PS: The last run up to $1.60 was in perfect sync with the release of the SMT whitepaper. (wink wink nudge nudge)
PS(2): Two major announcements are coming. The first is SteemFest (I bet the whole new front end with community will be released) and the second is the Smart Media Token testnet.
PS(3): The LearnCrypto.io link is a referral link. I believe this course is fantastic and I worth taking. Your course will be the same price whether or not you use my link.
I was surprised to see it dip down again so quickly after the SMT announcement. It felt a bit ridiculous - what was all that added value that took us to $1.50, just dust in the wind?
Thanks for your insights, it helps to make sense of the whole situation. Looking forward to a bright future on steem...
as the saying goes, buy on the rumor and sell on the news
This is a game of whales, they start and finish. We have the panic that we are selling, it's in the hands of whales, and we need to wait until they play enough.
OMG. Excellent info. I think I'm going to pick up some steem. The announcement at SteemFest will definitely take SteemIt to the top.
I think we see this sort of thing with just about all cryptocurrencies, lots of hype and excitement and not a lot of education or knowledge going on and people get FOMO that turns to FUD as soon as the price starts to waver from the highs. Not that I have an amazing knowledge base, but I try and do some research before jumping all the way into something!
Not necessarily a bad thing in and of itself, hopefully as more people get involved more people gain knowledge and we eventually start to see a little less volatility/FUD, but that is likely several if not many years away!
@cryptoctopus,
You are absolutely correct and it's a good advice for the people who is new to this market field! Whales or top investors hold the market moves. Therefore, we should not to be panic! You are a whale also! So most important thing is you decided to help others! Respect!
Cheers~
Every penny i earn here, i buy steem under 1$. I know that those are easy money..
Steem stays steady around $1 - $1,30 for a few month's. Nothing to worry about!
Excellent post. Not only well-written, but also very informative about a subject relevant to most of us.
While I am probably not quite as cynical about any possible manipulations by whales, it is well known that such manipulations happen in most markets. Therefore, if it is happening with Steem, I would not be surprised.
Regardless, it does present a great buying opportunity. I've been watching the price for days, hoping to buy some Steem Power. Actually, I'll probably buy soon. Given the current price, it's a steal. If it drops another 10 or 20 cents, I might regret (momentarily) not waiting for that drop. But if it goes up 20 or 50 cents before I buy, I'll have major, long-term regrets.
As the saying starts, "Buy low ...."
(note: I bought my first bitcoin when it was dropping from the $200 level. I bought, it kept dropping. It dropped to about $60, but I did not buy any more. To this day, I regret not buying then. I could have increased my bitcoin holdings 3-fold. I won't make the same mistake with Steem or any other crypto.)
let whales to play & hodl. steem is ready to fly to moon. useful article @cryptoctopus
@resteemia
lol this gif is hilarious!
Great article.
Buying the dip is a good trading strategy and will work well with STEEM since we already dipping hard and well in the past few weeks. And with the two major announcements you pointed out, we could pick up and maybe this time just so high everyone want to jump in.
In technical trading, after every downtrend, with a strong support comes a trend reversal that suggest price to go up. Steem really need support and if it find it, with the two announcements coming, we might be up for something good.
But actually i think steemit needs more investors than users but we have people helping to get more users than investors. There are many investors out there wanting to get into crypto but don't know where to actually put their money. How do we target such people and make them realize the potential of steem that's about to be unleash?
STEEM price is about to pick up and this is not FOMO, FUD or a professional advice, this is just the opinion of a 19 old steemians
well, you've got a good point of view. When it comes to investors, SMTs will be absolutely vital to that strategy. Dozens and dozens of business are going crazy and asking about it. Once ICOs start happening, this is where we will reach all time highs in my opinion.
Yeah SMTs are going to play crucial contribution to the mooning of STEEM and the discovering of steem potentials by big institutional investors. And that's one of the reasons many steemians thinks they are game changers anyways.
The only scenario i can imagine that steem will not grow is if the cryptocurrency industry doesn't grow or stop growing. But the way things are moving now, it suggest that the cryptocurrency industry is sort of like destined to grow, so for sure STEEM will pick up too.
well, you've got a good point of view. When it comes to investors, SMTs will be absolutely vital to that strategy. Dozens and dozens of business are going crazy and asking about it. Once ICOs start happening, this is where we will reach all time highs in my opinion.
True. I believe the same. With the news of SMT investors would rush in. I am eagerly waiting.
Today steem is now nearly $0.90 ill be picking up my fare share here just before steemfest! Unlike stocks crypto trades even more heavily on news.
I have spent a year now watching cryptocurrency pump and dump and everything you wrote in this post is damn true.
There are many cryptocurrency investors and traders but only smart ones survive @cryptoctopus
I have spent a year now watching cryptocurrency pump and dump and everything you wrote in this post is damn true.
There are many cryptocurrency investors and traders but only smart ones survive @cryptoctopus
Thank you for sharing this. I will look into the course. Information is power. I sometimes add refeal links in my social media posts and I used to feel , well a little shady. I realize that I am adding value to people and my time and effort also has value. So thank you for sharing the link. I think now is a great time to buy Steem. I am a Hodl'er . I just buy on the dips if I can. I realize I can make alot more money trading but I do not have enough information at this time to be competent at it. Sometimes , honestly I think I have it figured out, I have all the answers and then they change the questions. I am curious to see what happens around PS(2). I would also be curious to see a report showing how many people are powering down leading up to PS(2). I think that would be a pretty good indicator of things to come.
it's a buyers market! so buy, Buy, BUY! ON IT'S LOW - it's going to go higher eventually! invest in your future and the future of the platform. and don't get scared if steem slips some more, just buy, buy, buy!
Sounds unethical.
the content is so interesting !!!!!
The Steem dip should be considered as a bless, a second chance to all the people who regreted not having bought Steem before.
amen!
Great pointers. Thanks for laying it out in an easy way to understand; this makes a lot of sense!
nice post my friend, thanks for telling us about how to learn cryptos, you also talk about SMT's and steem price, SMT induction is a game changer to me, it doesn't matter which website going to implement SMT's, the coolest thing is that all the SMT's are created in top of steemit blockchain and they traded in SMT/steem pair, it's really exciting to see how steemit tackles with those SMT but i am sure it will be huge, so many SMT, so many opportunities, obviously peoples picks up the best one, but one thing for sure steem will go to the moon. Stay blessed and have a very cheerful and fantastic week ahead.
If SMT's catch on it will have the same effect ERC-20 tokens had on the price of ETH. ETH saw 40X returns from last year. A 10-20X run up in Steem is likely if they explode in popularity + Steemit will likely release communities soon like how Reddit works. Ned just hired a bunch of Steem devs. Should be good times ahead as this thing comes out of beta next year.
If SMT's catch on it will have the same effect ERC-20 tokens had on the price of ETH. ETH saw 40X returns from last year. A 10-20X run up in Steem is likely if they explode in popularity + Steemit will likely release communities soon like how Reddit works. Ned just hired a bunch of Steem devs. Should be good times ahead as this thing comes out of beta next year.
I regret not buying when the price was < .10
I wonder if I'll get another opportunity.
no doubt some whales do that game, but this time its not just the steem, all the altcoins went down, so it might not be just about upcoming announcements
Great post. I have followed this currency for sometime now and watch it go from .25 to $4 twice now. I wished I had purchased steem at around .11 cents or .25 cents and invested several thousand dollars into the currency at that price point. I think dealing in the currency on a regular basis is the smartest move. Buy some at .50 cents, buy some at .90 cents, but some at 3.5 and DOLLAR COST AVERAGE. Timing any market can be difficult but I'm a firm believer in some of what you are writing about here. There are larger factors in force and your article is good at pointing that out.
If you were to buy $1000 USD of Steem at .11 cents and sell for $4 dollars you would have about $36,000 USD in only a few months time. When the currency hit the top many people sold and so would I to hedge my bets and to keep liquid.
Interesting post, and you have a new follower, too.
You're exactly right, markets are manipulated, that's a fact. We all know that having a lot of money brings privileges, and being able to make a lot more money is one of them. That's why I tend to be more of a buy-and-hold kind of guy. lol I know I'll be investing some BTC into Steem as soon as the price of BTC rebounds a bit more.
@cryptoctopus - Sir... according to you this is a good time for buy STEEM.... SMT make a pulse on STEEM & I have faith about it Sir.... So, I understood what you said.... Your opinions are always worked well Sir.... Buy Steem hodl them, the future of Steem looks bright.... Nice you decided to share your experiences & thoughts Sir.... Therefore, I wish to ReSteem your post Sir....
+W+ [UpVoted & ReSteemed]
Oh yeah. You just gave the best advice in finance ever. Its a game and the whales know how it play it well. This is true in the traditional financial markets as well. They are not working in tandem either its just the market constantly shaking out the weak hands. Warren Buffett || "The stock market is a device for transferring money from the impatient to the patient."
So - what is the deal now, would you buy steem now or will it decline more - gimme your advise :-)?
the downtrend hasn't stopped. So I'm waiting until it reaches bottom to buy.
thanks for the advise - will follow you, if you are wrong i will send you my lawyer lol
Excellent work @cryptoctopus, you showing us huge points steem price climbing & then how to use invest procedure. Its easily learn to steemit community use your turning points. I have not lot experience about BTC and other cryptocurrency modules. I`m learning yet. steem always climbing with drop down and rise up. Why I buy and hold steem, drop down time we can buy more steem keep it hold after rising up we can redeem our powerful steem with extra rewards priority condition.As you know all of us try to get more rewards and beneficiary advantages. Look at this blog, all of procedure has here.
GOOD post......
Steem will rocket in price. I have no doubt about that. I see the current drop in price as a fantastic buy opportunity. I am sure a lot of whales will take advantage of this...
Sounds unethical.
It's the trading game.
I meant "put downward pressure on the price by spreading negative news" not selling tokens. So the trading game is unethical? I wonder does it have to be.
This is a good sum-up of how the crypto exchange market currently works ^^ Most people tend to buy-in when they see prices go up, while the most profit is made when it's at a lowest peak. I am still foremost a hodler though, don't like all these mind games too much...
Very very nice post
I'm leaning towards stocking up on bitcoin until the 2x fork and then buy some steem. I think alts will continue to bleed and bitcoin will rise back up until the 2x fork.
If my prediction is correct I'll definitely be cashing back out of bitcoin after the fork and probably putting it all back into steem hoping for that pump!
As there is two sides of a coin, we can enjoyed this down trend @cryptoctopus..π
Because we can increase our Steem from buying now.. Then we can enjoy up and down trends too..
I really appreciate your article..
Upvoted and cheers..
I agree ignorance is not bliss. Thanks for reporting on this, always good to know new things about Cryptocurrency.
but i really hope it goes up back again :)
I wouldn't mind a little price drop if it wasn't because the site is messing up
Plenty of cryptos have nothing more than a whitepaper and have higher marketcap. It's not about the tech at the end of the day.
You are giving me hope, but do you think STEEM will rise again?
From what I understand, it's inevitable.
I really hope you are right! :)
I also noticed this kind of reverse market reaction in bitcoin when it was going down two years ago. Big merchant adoption, and the price went down. It was at a long time coming down. anyway, I am going to be holding a bag of liquid Steem! The problem is, people do tend to buy high and sell low.
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Excellent post. Not only well-written, but also very informative about a subject relevant to most of us.
While I am probably not quite as cynical about any possible manipulations by whales, it is well known that such manipulations happen in most markets. Therefore, if it is happening with Steem, I would not be surprised.
Regardless, it does present a great buying opportunity. I've been watching the price for days, hoping to buy some Steem Power. Actually, I'll probably buy soon. Given the current price, it's a steal. If it drops another 10 or 20 cents, I might regret (momentarily) not waiting for that drop. But if it goes up 20 or 50 cents before I buy, I'll have major, long-term regrets.
As the saying starts, "Buy low ...."
(note: I bought my first bitcoin when it was dropping from the $200 level. I bought, it kept dropping. It dropped to about $60, but I did not buy any more. To this day, I regret not buying then. I could have increased my bitcoin holdings 3-fold. I won't make the same mistake with Steem or any other crypto.)
i also like this....
Great insight & very good advise. It's going to make ma look at the market from a different perspective...
I have an amazing knowledge base, but I try and do some research before jumping all the way into something!
Thanks so much, I find it so educative as a newbie
Thanks for this interesting post.
Youβre absolutely right about the importance of knowing how to play the game.
Initially, I thought powering down was bad for the stock; but, learned thereβs a method to the madness. Now, I have a plan for the next time STEEM spikes upward; reserving some as a safety net should it take an βinevitableβ dive, ready to replenish on the low-buy.
Thanks for the heads up on two major announcements are coming_.
I will definitely observe to see if the βtheoryβ holds.
I guess the best takeaway from this post is to always learn more about how the game works.
Peace.
I wrote an article on the long term strategy of investing, just thought I'd post it here because as mentioned in this articles long term is viable for those who believe in an investment yet don't want to spend time learning the short game or dislike it.
https://steemit.com/bitcoin/@steemjaunty/investment-strategy-when-to-buy-this-cryptocurrency-or-stock-the-noob-question