Buy High and Sell Low: The Idiotic Cycle of Investors

The idiotic cycle of Crypto Investors

The Bitcoin bull run is gathering momentum. All those who bought early this year are already sitting pretty in profits. But, there are others who will be coming in as soon as the news of Bitcoin price increase reaches the media outlets, with the pure intent to make the bank and become millionaires as quickly as possible even with a little money they have to invest. This set of people are usually newcomers into the crypto space. They fall in the idiotic cycle with their Investing psychology.

The first stage of the idiotic cycle begin when the news of Bitcoin price increase reaches mainstream news outlets. The hype of the price increase, and that the bull run started usually pulls a lot of newcomers who know nothing or little about Bitcoin into Crypto Investing. They have just one intention, to become millionaires as soon as possible. They are motivated with such news as Microstrategy sitting on $xxx million Bitcoin profits.

In their minds, they can become millionaires with $1k invested in Bitcoin as the price keeps going up. Their calculation is like, "price will go up 15% every week for a year and we can become millionaires this time next year" Sharp Investors!

"The math is simple! 20% increase a week in 52 weeks, My $1k will be over $1.5 million!" Bravo! What a flawless calculation and investment strategy for the future, if this holds true. But, will it hold? This is just the first stage in the idiotic cycle.

The second stage begins when Bitcoin drops by 10%, then, you hear words like "I invested just after Bitcoin made a 15% increase, and now I am in a 10% loss! What happened to my money? This is a scam, let me sell to get my money and go, it's over!"

It's the news of the price crash that usually triggers the second stage in the circle. The first response from newcomers is always, "What happened to my money?" A sensible reaction after having the first taste of crypto volatility. They buy high and sell low, and leave in a loss.

You will think this will be the last time for them with crypto, but then comes the third stage of the idiotic cycle. They will be back again at the slightest hearing of a raise in price, after losing a part of their initial investment for no reason.

This time they appear to be smarter and confident, with such words as, "I realized that I was wrong in my first investment. I did the math again, I can make the millionaire quicker by Investing in a new coin like this ElonDoge coin currently trending. It did 5x in a day, so I am buying it and can be financially free in few weeks!"

Nothing with Elon's name can be wrong. Elon Musk will take us to the moon. And this is where they get wrecked and got nothing but left with more losses, and even get completely liquidated. No one can stop these people, it's just the way it has been.

Many newcomers know nothing about crypto Investing. Some don't even know the difference between Bitcoin and Ethereum, or blue chips coins and altcoins. They are only interested in the Bitcoin price graph, and nothing else.

Let it go up! Let it go up! They exclaimed even without any understanding of how the crypto market works. They are only concerned about making the bank as soon as possible.

This is so idiotic, considering that they keep losing again and again and again. We can stop some of these people from continuing in this cycle, but would they care? I doubt not! They want to make millions overnight and would not care about such things as holding for the long term.

A lot of people fail to understand that it's not those who invested in a bull run that makes the money in crypto Investing. The Bears makes the money, while the bulls come to take the money. If you want to make money in crypto Investing, invest at the bottom and ride the bear to the top. That's how profits come in Crypto.

Posted Using InLeo Alpha