WHY ONLY 10% OF INVESTERS MAKE MONEY IN CRYPTO MARKETS AND HOW TO BECOME PART OF THEM.

AVOID THE HERD!

The herd is always wrong

The tricky part with making money in Crypto is that it is essentially zero sum. Your loss is someone else’s gain, and vice versa. It’s a competition, amongst the same pool of people fighting for the same sum of resources.

The herd is by default always wrong, as the movement of a coin up or down is dependent on people buying at higher and higher prices, or vice versa.

The higher the price of a coin goes, the more required buyers there are to sustain the higher price. Eventually, the coin goes so far up that we run out of buyers, as there is a fixed amount of potential people who can buy.

Imagine there are 100 people in a room, and there are two sides to this room (Green and red). Green = people who have bought, and red = people who have sold.

If 100 people go to the green side, you run out of new people to continue to go to the green side, and thus the only outcome is for people to go back to the red side.

This is how markets function. There is a fixed amount of people who can buy and sell Crypto, and as investors it is our job to sell when the herd has bought, and buy when the herd has sold.

There is nuance to this though:

YOUR GOAL AS AN INVESTOR IS TO BEAT THE CROWD, TO ENSURE YOU ARENT PART OF THE 90% BUT 10 %.

Let me give you a live example, as of Now based on the pictures below, where by there is alot of red, blood everywhere on the street. Plus the fear greed index which is now 20. The question really is simple, WHAT IS THE MAJORITY THINKING NOW?

Obviously at this moment, the 90% has to be selling, because we are at peak fear. Now, you just have to do the exact opposite of that. You buy. Next time, when the greed index is so high, and everyone is so confident and optimistic about the market. There you sell.

Because come to think of this logically, you dont want to sell the red and buy the green. But if you arent careful in the crypto markets, you will always catch yourself, buying the top and selling the bottom.