Hello Leofinance community, many may have already noticed that we are in a few days of bull market, and it is a very good thing for everyone. Those of us who have been here in the crypto world for a few years now can be aware of all the good things that this type of period brings us. Those who hold coins for the long term, waiting for precisely this type of event where coins go up as much as 15-20%, benefit a lot.
But we also know that in these moments when the market begins to have some price rallies is that we must be more cautious, the detail is that when the markets turn green is that many want to enter, and here is the big problem, when the market is bearish, few want to enter "because it does not generate confidence ", but it is when the big buyers, those who have large capitals are buying.
But when the market starts to rise, when many minorists want to start entering, being carried away by the great advertisements, is when those same big ones who bought in the fall get ready to sell to that great mass of buyers who, driven by emotion rather than by a serious analysis, want to buy in the rise.
This is when the large holders of capital get much more capital, because they know how to wait, they know when to enter and when to get out. It is not a matter of being very smart, or having PhDs, it is only a matter of knowing how to interpret what commonly happens in these periods when many supposed "great gurus " of social networks start bombarding with information that now yes, Bitcoin at 100k....run to sell the house to invest....
This is what makes many enter to buy right now, thinking in short term profits, becoming millionaires overnight, although it is true that some run with that great stroke of luck, let's be honest, the reality is that is not everyone's luck. And it is preferable to have reasonable but steady gains than to be waiting for a big stroke of luck, because this can make us risk much earlier a fortuitous event that may well never happen, at least not for us.
And even end up being disappointed if what you expect is just a big stroke of luck that will get you out of poverty quickly and all that they say. The same thing happens when at these times many come in to get rich quick, and instead of the price continuing to rise, it drops to levels below what they bought it for. It is then when, if the price remains for a long time below the price at which they invested, they want to sell, or they know how to wait.
They sell at a loss, and end up saying that all this is a scam, that they will not go back to the crypto world, etc, etc.... The issue is that people do not know how to wait, people are not educated in financial matters, neither in traditional finances nor in finances related to cryptocurrencies, this is a big mistake, but unfortunately it will continue to happen.
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BEERKING.Great words of caution, and well put, definitely something to consider as these pumps keep happening...