Well, If you have been a part of the Crypto world from under 1 year, chances are you bought a Shitload of cryptocurrencies between October to December. The Crypto mania was at its peak in November when every single coin was gaining 20%-50% gains in a single day and you thought you could easily gain 10X-100X returns.
When most of us were in 10X gains, that was an opportunity to take out profit but we were too greedy for more, hence now we are holding these heavy bags in this bear market.
Why are Majority of People Down?
Not just because we are too greedy but because we weren’t aware of how the market cycle works.
Ask any Crypto investor who sold his/her entire portfolio when bitcoin was above $18000 then you will get to know the importance of having a market strategy. They had their entry and exit strategy in place.
Now, you think the train has left the station and you regret missing it but don’t worry my friends, this train will return again soon.
Even after 9 years, the crypto market is still in its infancy stage and is still very volatile compared to other traditional markets like the London Stock exchange, NYSE etc.. Bitcoin price trend of 2018 is bearish and it is still dominating 50% of market cap today as of writing this and its impact on every other coin is still nothing short of blessing and a nightmare at the same time.
Majority of the exchanges/markets have Bitcoin as the entry and exit currency which majority of people use to trade altcoins. Whenever bitcoins movies a little up or down, people start converting their altcoins to bitcoin and hence price falls lower and lower.
What to do – HODL or SODL?
With altcoins being -90% or more down, you might be thinking of selling before this market becomes more bearish. But if you don’t want to get too technical and wish to understand one thing which always works, it’s the power of market cycles.
See this chart below and see the bitcoin trend which it is following from last few years,
The market is fairly new for the majority of investors and is still in its infancy and so-called Youtubers out there selling there courses are just filling their pockets. They themselves are trying to learn the Crypto market by comparing it with other markets and doing TA (Technical Analysis).
But, nobody really knows, if, TA applies the same way for a market as volatile as Crytpo or not. We all are just guessing.
The most common issue with new crypto investors like myself is that we pay attention to the hourly or daily chart but when we zoom out a little and see the monthly or weekly chart, we see bitcoin has always been on an uptrend.
As you can see in the chart above, bitcoin price goes in cycles and nobody knows how long the next cycle will be but its surely coming up sooner or later. And with products being launched for masses to make it easier for them to adopt crypto, its just going to get better.
Don’t worry my friend, you didn’t miss the train – You are going to catch it at next station.