The Traps Behind the Surge in Cryptocurrency: Have You Been Trapped?
Some tokens, like DOT, SAND, and MANA, can surge by 100% in a day, which seems very tempting. But don't be fooled; these surges may be traps specifically set for retail investors. Let's uncover the true nature of these 'good opportunities'.
Influencers and Liquidity Traps
When influencers and celebrities hype up a token online, it becomes popular. But you need to be cautious:
• Once a token rises, it’s hard to return to its historical peak because of increased supply and fierce competition.
For example, token X used to be $5 each with a total of 10 million, giving it a market cap of $50 million. Now there are 30 million, selling for only $2 each, but the market cap is $60 million. To get back to $5, the market cap would need to be $150 million, which is tough!
Whales Manipulating the Market
• Whales and market big shots work together to drive up the price, creating an atmosphere that makes retail investors follow suit.
• As soon as retail investors enter, the price rises, but when whales sell, the price drops, leaving retail investors trapped.
The Dilemma for Retail Investors
• Once trapped, they hesitate to sell, always hoping for a rebound, which leads to greater losses.
• They have no plan, just waiting for a rebound, but often end up losing more the longer they wait.
The Tactics of Whales and Market Big Shots
• After driving up the price, whales begin to sell, causing the price to drop.
• The price fluctuates, retail investors buy at high points and sell at low points, incurring even more losses.
How to Protect Your Investment?
Don’t chase highs: Entering the market during a surge often means buying at the highest point. If you miss out, just let it go; don’t regret the money.
Investment Wisdom:
• Buy during pullbacks: Look for opportunities during market downturns; don’t chase prices.
• Diversify your investments: Don’t put all your money into one token; spreading investments reduces risk.
• Set goals: Take profits when you make money; don’t be greedy.
• Keep learning: Understand the market, tokens, and economics; knowledge is your umbrella of protection.
If you always miss the right timing and are confused about how to operate, and want to learn, you need to meet one condition: have strong initiative; act decisively, like and comment, and I’ll help you make big money!
