With sentiment suggesting that Bitcoins (BTC) and the crypto markets are getting ready, old-time traders are warning and urging investors to be especially skeptical during the bull run.
Crypto Fear and Greed Index back to 75. The sentiment rate, which looks at volatility, market volume and social network activity, is 75 equal to greed. It dropped slightly from 84 – extreme greed. However, both values indicate that the bull run is ahead of us.
Co-founders of MyCryptoWallet and MyEtherWallet Taylor Monahan gave some Twitter good advice on Twitter that she learned during the 2017 bull run. She pointed to the irrational detachment of the bull market, which constantly attracts fraudsters who feed on the vulnerable.
Like moths on flame
“They will make a lot of money and people will lose because the exuberance and FOMO and greed and hype are the most powerful things on earth,” she wrote. Monahan believes that the time for accumulation has already passed and has urged users to invest 90% to 95% of their crypto assets in the cold storage. She suggests that you do not look for new coins:
“Pick a few long-term legit coins that you like. Be invested in them. Do research. Do not follow the shills […] You will win if you take profits consistently, not if you try to call top.”
Monahan also stressed restraint and said that people who “make a huge debt to get a crypto will not win, but will lose their house and savings for their children.” Don’t be defeated. Investors should only risk 5% of their net worth, and once a loss occurs, they should not try to recover those losses.
“Have fun with it but once it’s gone, it’s gone. Don’t double down. Don’t take from your savings account or your cold storage.”
It is hard to do
Crypto analyst Chris Burniske said it was “hard to be adequately prepared” for a bull run. He expects the enthusiasm of the “crypto enthusiast” to be ten times higher than it was in 2017, which means that assets can be bought and sold in the face of wild predictions.
“Speculation cycles have accompanied promising new technologies for hundreds of years,” said Burniske.
Podcaster Anthony Pompliano often reports advice on what to do during a bull run.
Collection of information
Manipulating the market is more difficult than before, but it will definitely continue to happen in 2020. Crypto whales have the ability to change the price of certain digital assets using a variety of techniques.
And remember, these whales can sometimes be paid influencers. Even those who do not pay to promote the project are biased in favor of their own investments. Monahan’s advice: “Trust no one.”
“Even good people are motivated by the coins they hold and the relationships they have. You may eventually see the edge but you will never know fullness. Make decisions based on multiple sources and your knowledge and your gut.”
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