FEAR AND GREED IN CRYPTOCURRENCY TRADING

Hello to everyone in this great community today. I say a wonderful afternoon to you all and I hope everyone is doing just great today. Today is a wonderful day and I will like to discuss an important topic regarding trading cryptocurrency.

We all know that cryptocurrency market trading requires technical analysis before executing a trade entry in the market but aside that, traders are known for a particular thing and this is what I will be talking about today. I have titled today's topic FEAR AND GEEED IN CRYPTOCURRENCY TRADING.

This is a wonderful discussion to join me in but before I move forward, it is important that we known the meaning of FEAR AND GREED in cryptocurrency trading and this I will be explaining to us below.

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WHAT IS FEAR IN CRYPTOCURRENCY MARKET TRADING?

The word Fear in cryptocurrency trading is talking about a scenario whereby a trader after performing technical analysis and then execute his trade or trades as the case may be, he or she gets scared when the trade began to go to the opposite direction of his entry.

This is a state whereby many traders out of fear losses their assets in the cryptocurrency market. Fear can cause a whole lot of loss when one is not groomed enough to withstand it while trading cryptocurrency. Fear has set many traders back to where they all began.

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Trading cryptocurrency with emotions is very bad as this can cause one to make wrong decisions when trading in the cryptocurrency market. The fear of losing your assets is the beginning of the losses that would be incurred.

It is strictly advisable to stay away from the market if you are afraid of losing your assets because trading with emotions can cause a whole lot of damage that would be hard to come back from. That is why as a trader, it is expedient that you make your analysis well and make sure you do not trade with emotions.

Fear can make one miss out the big profits that is to come. A trader might make a well detailed analysis of the market and just a false breakout from the trend to the opposite direction can make one to loss profits and hence on seeing that false breakout, the trader then exit the market not knowing it was just a spike in price value or vice-versa.

Now since we all have understood the meaning of fear in cryptocurrency trading, we should also take a look at the word Greed when trading.

WHAT IS GREED IN CRYPTOCURRENCY TRADING?

Greed on the other hand is a scenario whereby a trader's trade has hit the take profits but he want to remain in the market to gain more profit from the market.

Greed has caused a lot to many traders and it is the reason why many traders has lost their assets and to date still finds it hard to recover. The eagerness to gain more is a bad omen especially when traders cryptocurrency.

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We all know that cryptocurrency is volatile and as such it can not be trusted to a fault as we get to see fluctuation of asset price value and this is a great turn down regarding the cryptocurrency. For the fact that traders are aware that the cryptocurrency market trading is uncertain and anything is likely to happen should give them an edge in the market but most time, many traders will get all caught up in the market because of Greed.

You would notice that a trader is already in profit and at that point it is expected of that trader to exist the market immediately but the feelings of wanting more is always prevailing as we human are insatiable and then a huge movement of the price to the opposite direction of your the trade is now seen, causing a trader who was already in profit began to lose his asset because of greed.

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It is advisable to not trade with emotions in the cryptocurrency market as though it can cause a huge loss in assets and also trading with greed can make one to lose assets too. So it is not good to trade in both situations. fear and greed in cryptocurrency trading is not a good thing and as such it is not recommended to anyone trading cryptocurrency.

I hope this information is beneficial to you all. Thank you and stay blessed.