This will be a controversial post.
The purple line is where I repositioned myself after the recent bull run. I would like to tell people what I'm doing in this particular situation. It doesn't seem financially sound, however this should be more than just a financial advice.
This coin has brought me significant amounts of money, and I will be forever grateful. It is my time (and should be your time too) to hold the bags a little bit. I've had many opportunities here to sell my reinvestment (I'm always keeping my initial investment in the game). However, I didn't. And I won't.
I know that this won't reach many people but I hope someone will read it. Cardano and ADA coin is not and should not be just a get rich quick scheme. Also, people should invest in it because of the idea, not just for riding waves. Don't sell, instead keep it, and secure your long term position.
When we sell, we drop the price. Some investors are very new to this, and they got in because they saw that a different movement was happening. First trading experiences are very emotional, and those people are extremely prone to overreaction when negative movements happen. It is hard for new traders to put time into perspective, and to know that one mildly bad week, day or morning means nothing the day after the massive surge.
Many more experienced traders (I'm guilty of it too) are taking advantage of such predictable and emotional behaviour. You have the right to do so, and there is not much wrong about it. But keep in mind that this is not just eroding the trust into an asset with low market cap, it is also eroding the community of novice retail buyers.
We should encourage those people to get into investing.
In the end, whether you're aware of it or you're just looking for candles on the charts, we are all here because the governments around the world are eroding the trust in local currency. The whole asset market is in the bubble because of that, and be it stocks, crypto or whatever, it's all the same in this economy. You don't need to be extra smart to earn some money.
The only difference now is that for the first time a small retail trader can take some advantage of our corrupt system, and receive part of the money he deserves as a refund for the governments corrupt monetary policy.
If you are wondering, ok, how will I profit if I don't sell? It's really simple, and look at it as a long term insurance instead of short term profit.
If you buy a few thousand ADA coins, or a bitcoin, or whatever asset you're investing into, don't look for the time to sell.
You will have the opportunity to use it as a collateral to get cheap credits for when you need the money. You don't need to sell it in order to get money. Selling will just cause unnecessary lack of trust.
Remember that the prices of everything are just relative measures between a certain currency and an asset.
If you think crypto is volatile, just look at any FOREX chart be it EUR/USD or USD/CAD and you will find the same hills and valleys you find with Bitcoin. When we value assets with fiat currency, it is like measuring the length of something with a variable distance unit. It makes no sense and it gets you nowhere.
However, when you un-zoom the chart and look from far away, you will see who wins.
The purple line is where I repositioned myself after the recent bull run. I would like to tell people what I'm doing in this particular situation. It doesn't seem financially sound, however this should be more than just a financial advice.
This coin has brought me significant amounts of money, and I will be forever grateful. It is my time (and should be your time too) to hold the bags a little bit. I've had many opportunities here to sell my reinvestment (I'm always keeping my initial investment in the game). However, I didn't. And I won't.
I know that this won't reach many people but I hope someone will read it. Cardano and ADA coin is not and should not be just a get rich quick scheme. Also, people should invest in it because of the idea, not just for riding waves. Don't sell, instead keep it, and secure your long term position.
When we sell, we drop the price. Some investors are very new to this, and they got in because they saw that a different movement was happening. First trading experiences are very emotional, and those people are extremely prone to overreaction when negative movements happen. It is hard for new traders to put time into perspective, and to know that one mildly bad week, day or morning means nothing the day after the massive surge.
Many more experienced traders (I'm guilty of it too) are taking advantage of such predictable and emotional behaviour. You have the right to do so, and there is not much wrong about it. But keep in mind that this is not just eroding the trust into an asset with low market cap, it is also eroding the community of novice retail buyers.
We should encourage those people to get into investing.
In the end, whether you're aware of it or you're just looking for candles on the charts, we are all here because the governments around the world are eroding the trust in local currency. The whole asset market is in the bubble because of that, and be it stocks, crypto or whatever, it's all the same in this economy. You don't need to be extra smart to earn some money.
The only difference now is that for the first time a small retail trader can take some advantage of our corrupt system, and receive part of the money he deserves as a refund for the governments corrupt monetary policy.
If you are wondering, ok, how will I profit if I don't sell? It's really simple, and look at it as a long term insurance instead of short term profit.
If you buy a few thousand ADA coins, or a bitcoin, or whatever asset you're investing into, don't look for the time to sell.
You will have the opportunity to use it as a collateral to get cheap credits for when you need the money. You don't need to sell it in order to get money. Selling will just cause unnecessary lack of trust.
Remember that the prices of everything are just relative measures between a certain currency and an asset.
If you think crypto is volatile, just look at any FOREX chart be it EUR/USD or USD/CAD and you will find the same hills and valleys you find with Bitcoin. When we value assets with fiat currency, it is like measuring the length of something with a variable distance unit. It makes no sense and it gets you nowhere.
However, when you un-zoom the chart and look from far away, you will see who wins.
Comment:
People will be searching for BTC and ETH alternative, once they realize that they are fundamentally worthless.
Both BTC and ETH have amazingly high fees, and are almost useless as a currency. Those were great early concepts, and they do have a collectioners value, however they are useless as an asset.
BTC may stay strong because it can still be used as digital gold. But real gold and silver actually do have intrinsic value (for electronic components). Once you remove the value storage as a characteristics of these assets, they have no intrinsic value as a currency.
ADA has a massive intrinsic value, worth 1 trillion + dollars. Invest in it like you would invest in PayPal, don't invest in it just because you hope to earn easy money.
Both BTC and ETH have amazingly high fees, and are almost useless as a currency. Those were great early concepts, and they do have a collectioners value, however they are useless as an asset.
BTC may stay strong because it can still be used as digital gold. But real gold and silver actually do have intrinsic value (for electronic components). Once you remove the value storage as a characteristics of these assets, they have no intrinsic value as a currency.
ADA has a massive intrinsic value, worth 1 trillion + dollars. Invest in it like you would invest in PayPal, don't invest in it just because you hope to earn easy money.
So when you see price drops (look at the recent history of ADA), you can always get options or futures to profit of the sudden price movements at a high leverage.
However, you should never use more than 1% of your funds on such quick trades, and do it only as a supplement to increase your profits in the long term investment.
Never go against the long term trend, you will burn yourself.