A very crucial time for cryptocurrencies

in #mgsc6 years ago (edited)

It's a golden rule of investing"Be fearful when others are greedy and be greedy when the market is in bloodbath i.e. at it's lowest point".
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The world's known investor Warren Buffet believed in this theory and once he bought the shares of company"Coca-Cola"
which was at it's low and people were panic selling it. And you know what happened next, he became the world's richest investor.

Now that bitcoin is at it's low, the common thinking of the majority of investors is "The Bitcoin is going to die now, it won't come up again".
That being said it is the right time to be optimistic about the crypto-market and start investing in it because the cryptocurrency market is so volatile that it will spike up back to its all-time high anytime soon and people who are thinking negative will loose the chance again. Don't forget it has always come up whenever people lost their belief in it.
According to me, anybody makes a loss only when he/she sells that thing. If you keep on holding it, you won't make a loss ever. But at the same time, you need to make sure that the crypto or stock or anything you are investing in, has some intrinsic value out there in the market.

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The whales (people having very large sums of money into crypto) use this fear and greediness of common people for their own profitability by spreading rumours into the market which drives the price low and people start panic selling their crypto. And there the whales enter the market again so that they could buy everything at super low prices.

This mentality works both ways, this concept is called "Pumping and Dumping"
The whales boost the price upwards without any reason and people start FOMO (fear of missing out) which drives the price much higher. Then again the whales come into action, they start dumping their crypto in large sums which leads to a big price fall and makes other people to panic sell again.

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So I think these small things gave you a better idea of the market and understand it in a better way.

All the photos have been taken from www.google.com