Chasing ‘hot shots’ is less likely to make you rich!
Off to the market! And what are we buying today? The most popular cryptocurrencies? Yahoo Finance once featured Floki Inu; the meme coin based on Elon Musk’s dog. Funny how that sounds but the rocket man has cemented his reputation as the king of memes and everything that comes with it.
Doge, Shiba, and floki…each of these projects hit the ground running with the mouth-watering gains they post. They do this despite not having any tangible use case…well, memes and ‘charity’ are good use cases nowadays. Anyways, ‘numbers go up!’.
So, you are going to ditch your stable coins or some of your previous investments for the ‘next 100x’? It’s human nature to chase trends and the fear of missing out is a huge drive. Investors rush to these hot shots with hopes of reaping from the next possible gains.
This works, sometimes. It’s an uncertain market anyways and anything is possible, but being a successful investor hardly comes from jumping on trends. 50% gains, the rush kicks in. Speculators take the space and the project in question gets mentioned everywhere. The trend goes on, enthusiasts buy in with only a little idea of what the project is really about.
TA analyses, hypes from influencers, gains on trading pairs…these things are enough to sweep anyone off their feet. But regardless of how hot the hype blows, clever investors will certainly do their research before buying in.
What’s your ‘hot shot’ story? Various tales will surround the rush. Successful or not, conditions differ. But…
Cryptocurrency trends are birthed by an idea or concept gaining relevance over time. Memes, DeFi, NFT…these ideas existed way before they caught the attention of the greater number of people in the space.
The real gainers in any case of these concepts breaking out are the pioneers who believed in these ideas and supported them with their time and their capital. Being amongst the pioneer investors in any concept could fetch you over a 1000x gain as the case may be. This, however, comes with its challenges.
Chasing trends keeps an investor ‘restless’. Traders are meant to do this normally, but investors who buy tokens with a plan to hold on to them until the gains start coming are meant to exercise patience. Patience is a joke word for an investor chasing trends.
2-5X gains (or some terrible to manageable losses) and the hype dies; then unto the next one. A patient and more enduring investor who makes enough research probably already made some crazy gains from the same project and is still holding on knowing the hype could return with even heavier waves.
Chasing trending projects puts an investor in the way of higher risks and lesser gains as the hype and trends are naturally meant to cool off at a point. Buy high, sell low…a common story amongst trend chasers.
Cryptocurrency investment gives room for countless opportunities, but reaping from them would require clever decisions and a lot of patience too. The more time you spend chasing trends, the more risks you’re exposed to and the more losses you may incur.
Depending on how far the project goes, a lucky investor might make tangible gains from chasing trends, but that only means that a patient investor who invested before the hyped kicked in already made way more. Well, it’s better to make little gains than to miss out entirely, but most times, things don’t work exactly as presumed.
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Hello buddy @joelagbo, just like I recently published, investment based on trend is not always a smart choice. Appropriate study on the project mixed with proper patience is a tool for smarter achievement.
Personal researches help, they aren't a sure route to success but following trends is an even worse route.
Ina market where thousands of coins are released on a daily basis, one could be forced to buy a coin thinking they are buying it cheap and not knowing that they are buying rubbish.
Lol, with what see these days, this is very true.
Hello @joelagbo my friend,
The picture in your post is very nice. But this is a stock image it is not meant to be used for free. Original image source . and Plagiarism found in you post Text Source
It's a good sign that you mention the source .But Steemit platform doesn't allow these kind of activity.I suggest you to create your original content.
If you want you can use copyright-free images in your post which is completely free. Hope you don't do this kind of work anymore.Some free image site links below:
Thank You
This is probably a bot and doesn't even need a reply. But if not, these sites don't always have the best images. I use them where possible. Apart from that, using images from other sites isn't wrong as long as they are cited. For the "original post", the medium account is mine and the article was completely prepared by myself.
Thanks for your confirmation my friend