The Crypto market is in full swing, the buzz and gains feel like 2017 and 2018 again. For those of us that have been around since then, I bet there is a tonne of mistakes you made, because I know I did. And hopefully, that gives us an edge this time around.
During the last bull run, many people lost considerable amounts of money. People were chasing those 10X gains. The new money that came into the market got swallowed as many people invested in high-risk ICO's after missing out on the gains made by Bitcoin. And I can see the same happening with Defi this time round as new money comes into the market. Greed!
If you are new to crypto, don't get sucked into the greed. Trading is risky. Hodling on the other hand is way less risking. So go grab yourself a bag and sit back. Don't waste your time on the hourly candles, the more you zoom in, the less you will see. the less you see, the more you panic. It's vicious. Trust me.
Cryptocurrency and blockchain technology is still considered an emerging market. You are not late to the party. In fact, you still have time to stock up.
So what makes me think this way. Well, Cryptocurrency is an emerging market. Established markets had to start off somewhere too so we can look to other markets and try to make some comparisons.
This first chart is the current Market Cap for cryptocurrency as per coinmarketcap.
This second chart is the Bitcoin chart, also from coinmarketcap
These two charts are very similar as you would expect as Bitcoin is the dominant coin in cryptocurrency. But if you look at any of the other charts within the crypto market, many will follow the same pattern.
This next chart is the Nasdaq chart. Many people have made comparisons between this chart and the crypto market. They are very very similar, although they span a different time period and scale. It's this difference in scale and time period, but the similarity in patterns that have had people guessing where cryptocurrency is on this timeline. So I might as well add my guess too.
Next up is the Dow Jones. Another well-established market that has its dips over time, but overall the lows get higher and the highs keep climbing. This time scale is different again, yet interesting to see the general pattern is not too dissimilar to both Crypto and the Nasdaq.
Finally, this is a chart for gold
All of these charts show a zoomed-out view. No 1-hour candles here, let alone 1 minute. And what all of them show is markets growing over time. With a similar pattern. There is going to be big swings in the crypto market as new money enters. Don't be that noob that gets wrecked chasing the 10x gains. Sit back and ride the waves, show patients not greed and your investment should follow the pattern.
Someone made a comment to me recently that although the crypto highs were getting higher, when the low comes, that will be lower too. Based on the charts above, this is not something I believe will happen. My plan is to hodl. Maybe take a little profit here and there and buy back in at a dip, but I don't think I will risk much for accumulation when the market is heading in the right direction!
This is not trading or financial advice. Cryptocurrency is a volatile market and you could lose ALL of the money you invest. Only invest what you can afford to lose.
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