Crypto Education: Do You Know the Psychology of a Market Cycle? Avoid Buying in Euphoria.
Every financial market, including crypto, moves in cycles driven by human psychology. Understanding them helps you avoid being the "sardine" that buys at the top and sells at the bottom.
The classic cycle includes:
Disbelief: After a drop, "this asset is dead."
Hope: A slow recovery begins.
Optimism: More people start to believe in the rise.
Euphoria: "It's the new revolution! I'm going to sell my house to buy!". This is where the danger lies, and smart investors take profits.
Then comes complacency, anxiety, and panic.
Understanding which phase we are in gives you a huge advantage. What phase do you think we are in now?
