Life of Cryptocurrency Trader

Cryptocurrency trading becomes fashion during the time of the bull run. In the uptrend movement, everyone jumps onto the ship & considers it as an easy money-making option & this is probably the biggest mistake one can make. People often only talk about the financial aspects of it. However, nobody talks about the economic aspects of crypto. The economic aspect is as important as the financial aspect, which holds for any new startup or experiment. Cryptocurrency is about the unique technology “blockchain” behind it & it is an EXPERIMENT for now. Every experiment comes with a risk of going to zero that many traders overlook. Many people take it as a sure-shot ticket to the moon, which is appropriate assuming if this experiment is successful. Many people who trade cryptocurrency don’t think about it at all & thus lose money. Trading is a highly professional job, just like the stock market. It is not easy to track every stock & determine which stock will go up & down. There are more than 2000 currencies, & each one is unique in its way. During the bull trend, major of the coins pump 10-15x minimum & thus makes it one of the events to look up to. Like every good thing, the bull market tends to over. However, people jump on the boat after seeing insane gains (but the gains have already been made). They buy the hype, which is never a good idea & in a result make losses. In a bull market, everyone is a crypto trader & they are the first ones to leave the market. One should know that cryptocurrency trading is not a cakewalk.

Many of us have seen the posts, which shows how holding a share worth 1000 Rs is now in Cr after 20 years. People generally look at the final price of Cr. However, misses the point of holding the asset for 20years. The most difficult part is holding on to the stocks even after having 500% in profit. Just like stocks, in cryptos, insane gains are made via holding or HODL (a famous word in the crypto community). The problem is the greed of getting rich overnight & some people have become so overnight. But, the ratio of such people is very low & we want to take them as our inspiration. Before reaching the stage of overnight success one has to sail through the rough waves. Thus, there are many phases that grips or torture the daily life of a crypto trader. Like life, cryptocurrency trading consists of many phases.

The most depressing & disheartening phase of the crypto industry is this phase. When there is no news, people are not talking about it, the progress is slow & there is a dilemma if this thing will ever shine. Yet, it is one of the most important phases to buy, as those people who look for short-term gains don’t pay attention to the progress. A perfect opportunity to accumulate coins that can become something big in the future. Most of the crypto traders accumulate in this phase & wait for their turn to make some huge gains. Newbies miss this phase because of the lack of interest in the industry.

After months or sometimes years of non-movement or sideways movement, there comes a time when the uptrend starts & there are daily gains visible on the portfolio. This part is most fascinating, as the greens are always good for the eyes. This moment is needed to be cherished & a price to be remembered. As this should be treated as support for one’s trade.

After the price rises silently, suddenly the hype is created among the holders & everyone will share screenshots of the gains they have made while holding the crypto. During a bull run, a 10x gain is the minimum one expects & some of the projects outperform others by 100x as well. Thus there will always be someone who will be showing off his or her massive gains.

If one coin rise parabolically, then it needs to be covered in the News. Which usually is not covered by them. When this happens, one should stay alert & pay attention to the prices. The News covers a larger audience & their reach is more. So, if they cover the price actions, millions of people will get to know about this asset class, people jump in for some quick & easy money; without realizing the technology behind it. This coverage should be treated as the first sign of a future correction. Because of its reach, the News becomes the biggest source for the influx of funds & eventually helps in creating the bubble. A bubble that will blast sooner or later & while doing so will remove all the weak hands. Once prices are being covered in the News, one should brace up for the price correction.

The most painful part of the journey is the selling. Big whales who accumulated during the first phase have already gained 15 to 20x on their assets & they already made enough for this leg of the bull market & once the market becomes too big, it is time to sell. Thus, they sell from their original level. However, people who bought the news are the biggest sufferer of this. Because they jumped the last & especially they bought the news. When people talk about money before reading about the product then it is a dangerous time. This time is bloodbath on the streets & all the new people who came because of the news are the first ones to fall down & with bringing down many more weak hands.

The selling continues till weak hands are flushed out of the system & then the cycle repeats. Big whales accumulate, accumulate & accumulate till the prices are covered in the news. The Crypto market is nothing compared to the traditional market, in this market one can experience as far as 90% retracement, which is not normal for any other industry. This retracement shakes out many newbies & weak hands. So, this is not for everyone & also one should not put his or her life savings in this volatile asset. Though the gains are massive, the losses are of a similar nature.

Timing the market is nearly impossible. The best strategy is to invest each month on a fixed date; only when if one is sure about the technology. All the weak-hearted people can skip this brutal, violent & volatile market. One can refer to the link to invest in crypto currency.