After the market started to get hot last year, one of the most common things for investors in the cryptocurrency circle is definitely to shoot their legs. Today the coin is missed, shoot the thigh, tomorrow the coin is sold to fly, shoot the thigh, the day after tomorrow not to catch the big wool airdrop, or shoot the thigh. Although patting the thigh is a kind of flirtation after missing out, it also reflects many people’s remorse for their investment strategy.
Hot spots are all over the place and missing out is the norm
People who are familiar with the past bear market are often caught off guard when the bull market comes, and the first thing they don’t adapt to is the explosive amount of information. The phrase “one day in the cryptocurrency world, one year on earth” is well reflected in the bull market. Every week or even two or three days, the hotspots will change drastically and people’s mindset will follow the ups and downs, and they may end up seeing all the projects and have no way to start.
DEFI is a typical example, previously unheard of DEFI project are beginning to get the attention of the funds, and even become the red hot chicken, today this doubled, tomorrow that doubled, wait until you pay attention to the time, basically has gone up a wave. Then in the end to invest or not, may still be a problem to think about.
Similarly in addition to DEFI, there are many popular ways to play in the market, such as arithmetic tokens, NFT + DEFI mining and so on. Sometimes you know that this simply does not last, or the valuation is too high, but the end result is a smack in the face, and then the market proceeds to hype. For example, the arithmetic tokens, we all know the valuation is obviously high, but in the end, we are still willing to pick up the pieces.
The bull market’s speculative expectations, the source of the bubble
The bubble of the high valuation coins in the bull market itself is an unhealthy process, for the mainstream coins, it is actually quite normal, after all, the big money playing or a safe, but the small coins here have a different valuation logic, is the expectation.
I have consulted some people who frequently speculate in the circle of cottage, their views generally favor “even if it is a garbage, as long as the project side can release a new way to play, then it can be turned into the mainstream”. The general argument is that the coin is now very junk, fundamentally speaking, it simply does not work, but often many people are betting that one day the project side can release good news, and then pull up the price of the coin, so that they can “sit on the sedan chair”.
This is precisely why even the seemingly unreasonable valuation of bitcoin arithmetic tokens, after the coin price is speculated high, began the DEFI liquidity mining routine, and then be used as a shovel, so that the price of such arithmetic tokens continue to rise, while in fact the real market price of arithmetic is relatively low, which is also one of the reasons for the hype.
The economic model is unreasonable, it can be changed, the total amount of tokens is unreasonable, it can be changed, the incentive mechanism is unreasonable, it can be changed, even POW, POS can be changed, this is essentially a way to improve, and this way if placed on the mainstream coins, the effect may be limited, but if placed on the garbage cottage, then it will be new and complete the metamorphosis of the project itself.
Why it is difficult for ordinary people to catch 100 times coins
Most of the projects in the market have basically gone up by about 10 times, so there are some people who fantasize whether they can catch the 100 times coins. Some people also take this as fun and keep researching each project, but in reality most people still can’t catch 100 times coins.
The most important thing is that you can’t catch the 100 times coins, for example, when it is falling, you dare to take the bottom, when it is rising, you dare to catch the high. Some newbies just entered the market feel easy to make money because they dare to chase high and bottom, while the old drivers are used to the bear market, a little bit up, they may throw away their chips, so they will lose the opportunity.
The other is the manipulation of the market makers. Essentially, the market majors are out to make money, so they are bound to go through a process of sucking up chips, pulling them up and handing them out on top of a certain coin. The majors have a wealth of tools to use and will write detailed plans and push them out before manipulating the market, but for the average retail investor, many may casually complete the process from understanding to investing in a single minute. The main force will keep washing before pulling up, making their chips highly concentrated. If your coin does not rise, then there are only two situations, the first is that there is no controlling banker inside this coin, and the second is that the banker of this coin has not finished absorbing the chips. After completing the absorption of chips, the final project side with the release of good news, or destruction, or airdrop, so that the market enthusiasm to reach the highest, and then through the judgment of the overall situation, and then choose to pull up to wash the plate or pull up the shipping process.
This series of processes occur when it is inevitable that a small number of people need to make money, or also a small number of leakage, and finally attract most people to enter, to achieve the final envelope. Also here there are project parties who are serious about their work and then realize the value return process of the coin price, that is, it went up and finally did not fall down or fell down very little, which is called value coin by most of us.
Under the law of two or eight, reaching the average level is a victory
There are generally two ways to improve happiness index, the first is to improve your ability to achieve class crossing, and the second is to lower your expectations and be satisfied with the status quo. The first is a competitive approach that not only brings overall improvement, but also makes it difficult to meet one’s own expectations. In short, if everyone scores 100, the difficulty of the next test will increase, which will again stimulate the desire to compete, that is, after making efforts to become happy, one will find that one is still unhappy after a while, and then one has to continue to work hard. The second is a kind of resting on the status quo, satisfied with the status quo may seem to be a process that is not progressive, but also not conducive to social development, but often for the individual is very friendly, as long as the status quo, then they will always be the happiest.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/do-you-regret-not-keeping-up-with-the-popular-projects-in-the-bull-market/
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