Are you putting unrealistic expectation on your crypto goals? I noticed a lot of the new people expected to easily make it big within their first year in crypto, and somehow not be affected by the volatility.
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Making money is never gonna be quick and easy. Even if you get lucky, and manage to do it quickly and easily, it likely came at the cost of high risk. If you take less risk, then you have to be more patient. Even in crypto, most people have a rough first year, as they first experience the high volatility. The seas don't get any less rough over time, but once you stick around for a while, and get your head far enough above water, it becomes more manageable. 1- Crypto can make you rich, but at the cost of high risk.A lot of people jumped in without evaluating the risk/reward. They see big potential reward, but don't want to pay attention to the equally high risk that comes with that big reward. And as a result didn't have a good strategy for that. If you aren't prepared for that, and didn't have a strategy in place, you are gonna get blindsided. 2- Volatility.Understand the volatility of what you're investing in. There's a lot of misunderstanding about this. And that may stem from people dismissing TA too quickly. It's true that most TA is bullshit, because most people make shit TA on Youtube without understanding what they're doing. But TA is first and foremost a tool. There are elements in TA that helps you understand what the market is doing, and what the trends are. That helps you understand better the market's history, and also the volatilty. If Bitcoin suddenly goes parabolic to $63K, that's not adoption or the tech suddenly doing something amazing. That's just volatility, and a market operating within that volatility. If Bitcoin goes from $63K to 28K, that doesn't mean the tech and adoption is going bad. It's just volatility. It doesn't even mean we're into a crypto winter. As we've seen, it can bounce right back to $68K. It's definitely not comparable to stock indices like the S&P 500. Bitcoin has a very high index of volatility. And it's important to understand how that works in the context of that market, before throwing money in to that market. Or before letting emotions cloud your judgement. That volatility can look scary. 4- Long term vs short term.A lot of people jump into Bitcoin after seeing how well it's been doing in the past 10 years. And seeing those beautiful long term chars, and rainbow charts. Creating unrealistic expectations that they will easily get that short term. If you want those long term benefits, you have to be very patient. Those charts look beautiful zoomed out, but there's been a lot of pain and traps along the way. If you are only in crypto short term, for less than 2 years, or even less than 1 year, it's hard to expect benefits from any long term trends. You're more likely gonna experience the short term volatility more than anything. You also have to understand the market. If there's any major change. Past performance doesn't guarantee future performance. 5- Start putting your emotions aside, and think numbers not narrative.One of the biggest trap of people in any form of investment, is they get attached to a narrative. Narratives can start creating unrealistic expectations. It can put you in the trap of thinking the market will only do one thing. Too many people get attached to a specific narrative. Usually a storyline that involves just one specific aspect of what's going in a market, or within a project, and they get too emotionally attached to that storyline. Trading bots, quants, and the big market players don't really care about your storyline. The only thing you should get attached to, is the numbers and the data. The only story to get attached to, is how those translate to risk vs reward for your strategy in this market. Conclusion:Trade away your unrealistic expectations, your narratives, your emotions, for both short term and long term plans and a strategy based on data and an understanding of what you're investing in. That includes understanding volatility. Trading and investing is never gonna be an easy game. It takes some chess level planning for multiple scenarios. A lot of risk assessment. And not every investment is for everybody. The risk/reward and volatility of crypto isn't for everybody. submitted by /u/fan_of_hakiksexydays |
