Anyone who has gone through the growth season from 2021 until now, and is still in the market, surely has at least once determined to buy an Altcoin to hold long-term, continuously DCA, and eventually cut losses. Or after a long time, several years, looking back at the account, feeling bored and not wanting to talk about it.
At every Uptrend moment or just a wave increase within the year, we hear many stories. From hearing to seeing, then believing and loving... Then we FOMO at the peak, and below are some common reasons, hopefully, you can refresh your memory before entering the next wave.
First, the most common reason is "trust in the project's technology and faith in the 3.0 blockchain revolution".
- Remember that the field we are playing is drawn from technology, but the essence is playing "finance".
- Besides traditional companies, large tech companies, which are widely applied in reality but sometimes replaced in just a few years, think about how long these blockchain projects without real application, that do not solve anything for society can survive?
- Looking back, we will see the shining stars of the industry, the Top coins of each season with the "promise of technology" will mostly no longer appear, or if they do, they are very faint. Not generating profits for holders in the next season.
- Bitcoin and Ethereum have been around for how long, and they are still not widespread yet, my friends.
- We are participating in a financial playground, with technology being the story. We earn profits based on the expectations of others. The technology is built to increase the crowd's expectations, creating liquidity for the market makers, but in reality, how much is the application worth!..!??
=> Abandon the mindset of holding a token for several years just because it has good technology.
The second reason is not recognizing the market trend, leading to choosing the wrong timing to buy, FOMOing with the crowd.
- Looking back at the last two Bitcoin cycles, it's easy to see that after each Halving, BTC will create a new peak. That is also the best time to participate in Altcoins.
- Looking back at the annual cycle, it's easy to recognize that the first three months and the last three months of the year are the market's upward phases. That is also the best time to participate in Altcoins.
=> Why must one hold a coin from this season to another (4 years), from this year to the next? To endure so much pressure about prices, about holding losses, about anxiety and fear due to FUD, Scam. Why not stand outside and wait for a good market phase to play...?
Thirdly, due to the two previous mistakes, it leads to this third mistake. A psychological mistake.
- Being blinded by the "tech hype", not recognizing the cyclical nature of the market. Buying based on preferences, on a friend's advice, or following the crowd.
- Poor position, poor capital management, long-term losses.. This leads to confusion and burdened mindset. Making wrong decisions, trying to recover, and earn back the lost money.
- When entering an Uptrend season, being late (due to being deceived by the market for years, a cautious mindset) leads to FOMO, comparing oneself to others, longing for the past, and having high expectations for the future. Then getting burned again.
=> In general, if you are always in a state of distress, worry, impatience, hope, pain.. Then you cannot make money from investing. Or if you are lucky to earn some, sooner or later you will lose it again in the future.. Invest and manage risks well, don't fall into this situation. A few personal shares, not an expert...!!
Wishing you a joyful morning.
