*Disclaimer - This is not financial advice but my own personal opinion. Always consult a professional financial advisor before investing.
Verge. It’s not my favourite cryptocurrency, it never has been. Almost paradoxically I do own some, and have done for some time. Maybe it was the hype and energy of the verge community that made my buy, maybe it was the emotion surrounding it. Whatever it was I bought some, and before two days ago I’ve regretted it ever since. No longer do I allow emotions into my investment decisions and its an important lesson I’ve learnt.
However, my foreboding has been proven wrong. After all the controversy, hype and emotion XVG has actually garnered a brilliant partnership. Pornhub has 28.5 annual visits and 81 million visits daily. That’s incredible numbers. In fact Amazon Alexa puts Pornhub as the 34th most popular site on the internet. I can’t stress enough the amount of people being exposed to cryptocurrency who’ve never thought about it or seen it before. This opens up so many avenues, for everyone in the space. Although me and many other people are skeptical of Verge’s business practices, we should at least be grateful for what this may do for crypto.
So, if this was such a great announcement then why did this happen?
If you look at where the news was announced we see a huge dip, even though the partnership was a big one. Now once again I’ve got to share a paradox with you. I swing traded XVG (as part of my planned strategy) and sold at the high, the thing I’m railing against. However, I did keep my original XVG investment in and only traded my swing funds. So I’m not completely railing against myself.
This huge drop we saw was maybe a reaction to the fact that some people overhyped it, or just the fact that most people saw profit, leaving the bag holders to take the hit. Whatever the reason it does bring one question to mind, are we really a community that invested in the tech, or are most people here for the money? I would think, like me you're a bit of both. I love the blockchain tech, and I also love investing and trading. That’s where the crux begins, when do peoples love of technology get overridden by their primal desire for immediate gains?
Money still talks in crypto, and it always will. Even when huge announcements come around they can’t overpower the desire for immediate gains. Is this a bad thing? I’m not sure, I just think it exists and that we should all be aware of it. Start implementing it into your strategies. If you’re a long term HODLer then don’t fret, if you’re active in your trades then maybe have a look into it. Sell these highs, and buy those oversold lows, build your wealth up for the future.
So this article was just to bring your attention to this strange phenomenon, the selling of assets on good news! Make sure you are aware of it in the future, and be aware of the psychology around it. With all the talk of emotionless trading and investing, unless you’re talking about bots all traders experience highs and lows. Thus, investing and trading are much more interlinked with psychology than you’ve ever thought. XVG is a prime example.
The next time there’s a big announcements on one of my investments, I’ll surely be more attentive. You can’t ignore that although you may be here for the tech, money talks and even the biggest announcement may paradoxically lead to a burn. I hope this has been informative and interesting for you guys!
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