Why does cryptocurrency always seem to make people lose money? Let's hear the truth!
The market is like a big clock that cycles every four years, with rises and falls, very predictable. But strangely, even knowing this pattern, many people still lose a lot. We need to talk about why this is happening and how to avoid pitfalls.
The Four-Year Cycle of Cryptocurrency
Cryptocurrency goes through a cycle every four years. First, there is a long bear market, then suddenly a big bull market, with a sharp rise. For example:
From 2014 to 2018, the bear market lasted 177 weeks, while the bull market went crazy for 34 weeks. From 2018 to 2022, the bear market was a bit shorter, lasting 157 weeks, while the bull market took a breather for 47 weeks. Now, from 2022 to 2026, we are still stuck in the bear market, waiting for the next wave of bull market.
Red Phase: The price spikes, then starts to fall. At first, everyone stays calm, but as it drops more, they panic and end up having to sell at a loss.
Yellow Phase: The price stabilizes a bit, but the pain from the last drop is still fresh in memory, so they hesitate to take action. When the price really starts to rise, they hesitate again, resulting in missed opportunities to make money.
Green Phase: The price skyrockets, and everyone is thrilled. But at this point, without a proper plan, it's easy to get carried away by excitement.
Cycle Trap: Emotions go against the market
When emotions collide with the market, many retail investors stumble. They know the market rules, but when emotions take over, all logic is thrown out the window.
Red Phase: When the price is high, they feel like a stock god, refusing to sell even as it drops, and eventually panic when it falls to the bottom.
Yellow Phase: The price stabilizes, but they still feel tense inside and dare not buy again. Green Phase: Once it starts to rise, they forget everything and only think about making money, only to be stunned when the next bear market arrives.
How can one make money in cryptocurrency?
Simply put, investing in cryptocurrency requires not only understanding the cycles but also having self-control and managing one's emotions. If you want to make money, don't follow the market's emotional swings.
Recently, I plan to back a potential coin that is about to explode, doubling my investment should be quite simple. At the same time, I also plan to find some potential coins to hold until the end of the year, expecting a growth of over ten times is not a problem. If you want to follow along, leave a comment, follow, like, and share for free.