Hi Guys,
It has been a bloodbath! Are we still alive? Over the last couple of days I have gotten so many questions, Amresh buy, sell? buy more? Do nothing? I am a HODLer. I buy when I can regardless of how the market is performing. So my obvious answer is: buy if you can. Sell? No way.
It is amazing how human psychology works. We are social animals. When we are fearing we all fear. When we can eliminate this limitation everything is possible. True great investors have made the highest returns by being contrarians i.e. buy when the herd is selling and sell when the herd is buying. Crypto investors are by definition contrarians. We are buying crypto because we have been put off by the traditional financial model.
Ask a crypto holder what he or she thinks of the current financial system and all hell breaks loose. The herd still needs to see this. In the months November, December 2017 we seemed to get there. Lots of media attention for crypto, primarily because of the rise of bitcoin. It did some good to the market. I have seen people entering the crypto market because of this media attention. A good indicator.
What I am also positive of is that more and more people started to talk about it. Under normal circumstances this would be an indication to get out of that market. If your maid or taxi-driver starts to talk about stock investing you know it’s time to get out. But with crypto investing this is a good signal. It indicates that the ordinary crowd is entering. This makes the market stronger as the crypto coins gain value by being adopted. The more people that use a specific coin the more valuable the coins becomes. Crypto is all about community and community building, hence the more people talk about it the better.