Points Of Maximum Greed & Fear In The Crypto Market
Everything done in the crypto market is sometimes technical and sometimes psychological, while some people are strategic in making their crypto trading decisions based on technical analysis and certain access to information, then there is you and I who are the retail crypto investors who sometimes invest based on emotions and FOMO. I won’t lie, I aped in big time on dogecoin because Elon Musk started becoming really interested in dogecoin, although I was lucky at first to be one of the few people who had aped in early, but later on, I bought at the peak when Elon Musk was about to appear at the SNL(Saturday Night Life) show.
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Its mean nature to want to FOMO when there seems to be bountifulness, for instance, you see where people are rushing to or see a trend, you want to rush there because you are scared of missing the opportunity, same thing with crypto, we see where the grass is greener (literally, the chart is green), that is where we want to move to. This is where there is maximum greed, lots of people tend to buy massively at the top. I dont know the psychology bending that, but it has proven to always be like that over time. Then when its time for maximum fear, we see that in the crypto bottom, this part has a lot of people scared as hell. They become really fearful and afraid because they feel this is the end. crypto has been declared dead and its end has been assumed so many times, but over time, crypto usually end up bigger and better, just like the rest time, this is just a phase.
In my experience, its supposed to be the opposite, according to warren buffet, be fearful when the rest are greedy and be greedy when the rest are fearful, this should be the way to see the crypto market for maximum profit. When people are extremely greedy at the top and over buying the top, you should be fearful and sell. This will help you take profit at the top, because times like that, the price usually falls down deeply as a lot of people will also be taking profit at the top, the early adopters. Then bottom when people are fearful and willingly to sell off their crypto token for lower price should be the point to be more greedy. Scoop the bottom, you are getting them 5X+ more cheaper. So maximum greed should be at the bottom and maximum fear should be at the top.
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The biggest thing to remember is that we are still in the early stages. We are only 14 years out from the beginning of crypto. When we were 14 years out from the start of the web, there was a lot of uncertainty. Don't let the FUD get us down. Blockchain will survive.