Psychology and Strategy in Cryptos

The cryptocurrency market is driven by fear, greed, and FOMO, causing many to buy at the top and sell at the bottom.

Recent example: those who bought in November, during the peak, ended up seeing the price fall slowly and sold at a loss. When the market recovers, more buyers will enter at the top, repeating the cycle.

Emblematic cases:

Bitcoin 2017: +20,000% to $3,602,676,253,720, followed by a drop of -80%.

Mantra (OM): +20,000% in 2 years, but a drop of -90% in 10 minutes last week.

Key strategy: take partial profits at highs. This protects against sharp drops and allows one to take advantage of appreciation potential without losing already realized gains.