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RE: Cryptocurrency downtrend continues...
You'd think there needs to be some sort of bounce at least pretty soon huh.... The way things are getting hammered you would almost think it. I thought it was going to happen a couple days ago after ETH daily RSI touched 17.
I think that's a common misconception that a lot of people have right now, the Gamblers Fallacy. "the price has been falling therefore it needs to go back up". I'm not saying your wrong, just it's a well known phenomenon amongst investors.
I think everyone is crazy trying to 'pick the bottom', just wait for a bottom to form first and then buy it on the way up. Then you have a very small risk reward ratio.
I have come to conclusion that life is a big gamble. It is how to mitigate loses that makes winners. Definitely buying in but at a slow and steady pace and not going in big when the whole market seems to continue falling.
There is no way to time the bottom. Just need to be ready to take advantage of it when it arrives ;) Best way I can think of is slowing investing in little by little. I believe in crypto more than I believe in stocks. That is how crazy I am :p
How do you know there will even be a bottom ? :-) The problem with picking tops and bottoms, you can't predict them well, can't see them forming, it's only looking in hindsight on a chart they become obvious.
I suppose that's the gamble, buy and hope it's the right price and it goes up from there, or lose everything if it doesn't. It's a terrible risk management strategy, but crypto doesn't seem to follow any sensible rules lol :-)
You make very well thought out points. Yet thinking about why there are not many more rich people on the planet when the stock market is near all time highs it makes me wonder a lot. The fact that I am not in it is likely why I am still poor. There is no way I can become rich if I do not take gambles. But I may still lose in the end if crypto never recovers.
I am fine with that because I can still use it on the internet like exchange for more steem and so on. I invest in things that I will have a use for and not just appreciate. That way I can mitigate some of the losses.
for sure, you have to speculate to accumulate as they say, nothing ventured nothing gained...
I don't mean you in particular but most people take too big a risk. The vast majority of people I've asked say they'll hold their crypto all the way down to zero !
The reason rich people are rich is because they understand risk and reward,and if something is losing them money they cut it dead and move on to the next opportunity. In crypto that might mean selling coins for a small loss that are costing you money in order to buy more coins that are going up in value that will make you 10 times the money.
I know we've spoken about this before and I understand your approach to crypto is very holistic and wholesome (like mine), so I don't mean to direct my comments at you. I think you're one of the very few sensible people I've spoken to about crypto, most people are just dumb...