Did you want to become rich overnight? Did you know the stories of people who lost everything? I am not denying that the crypto world never makes you rich; instead, this market has more potential than any other market. It depends on your cognition of what you have selected: opportunity or trap.
Fake projects
The crypto world is a big ocean, and many short storms are created and destroyed. Every day, the news media and social media recommended a new project with a guarantee of a 100-fold increase. In reality, many new crypto projects have no practical applications. Even, some crypto projects don’t have technical support, and their team never have the technological background. But they can paint the big cakes for you. They always promise not only high returns but quick returns. When you study them, they identify as fake identities. Their strength is to package nothing into a more meaningful project. After some time, they run away. Such projects always rise rapidly, the owners react quickly, sell off the project, and wipe out all the investor money.
To whom you are fighting
Did you know the world’s real wealth still lies in fiat currencies? However, printed money is only found in banks and other financial institutions. The crypto world is the place where bankers and retail investors fight with each other. Market makers built attractive positions for investors that require less money, and offer everyone to buy these positions. It is always an arrangement; after some time, when prices start soaring, the retail investors buy frantically. The market makers sell-off in large quantities at high prices and make a big profit. It’s another FOMO sentiment scheme that sells off through social media or with celebrity power.
Human psychology
The crypto world is highly volatile, and therefore it always amplifies your sentiment fluctuations. Greed and fear are the two most important human sentiments that impact your investment psychology. If you are greedy, it means that you are refusing the exit from the crypto world. When the prices have risen significantly, eventually, the coins you have bought will return to the starting point on the roller coaster. When you have fear, it means when prices face a short-term decline, you never consider subsequent rebounds and quickly respond and do the panic selling. To remain profitable in the crypto world, you have to control these two emotions.
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