Do you think that in the cryptocurrency world, you can just throw in ten thousand and leave it for ten years, then sell when it rises to a million?
The reality is, you put in ten thousand, and the next day it's down to five thousand, and you can't sleep a wink that night; for the next year, even if you wake up in the middle of the night, you have to pull out your phone and open the app to check the market.
After a grueling year, your coins fluctuate between one thousand and six thousand, and you grit your teeth saying: "I'll wait until it hits nine thousand, even if I take a loss, I’ll sell off and leave."
Then a bull market hits, and the price of the coin finally climbs to eight thousand five. You think, based on past patterns, it must pull back to six thousand, so you hurriedly sell at eight thousand five, hoping to buy back cheaper later and earn a two thousand five price difference. You've made this move a few times before, but this time it's different—right after you sell, the price doesn't pull back at all, it skyrockets to nine thousand, and you miss the chance to get back in.
You make a tough decision, thinking if you don't get back in now, you'll completely miss out. You take the eight thousand five you got from selling and buy back at nine thousand, reducing the amount of coins you hold.
Then the price drops from nine thousand back to seven thousand, and you regret it deeply, unable to stop yourself from messing around again; watching it slowly rise to twelve thousand, you finally make a profit, but that wait took another year.
In the end, you sell the coins and realize the annualized return is only 20%, and you still feel like you're akin to Buffett.
Going all in, cutting losses, chasing highs and selling lows, this is the true reflection of a novice.
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