Like Mushrooms After the Rain .:. Be Careful With "Comeback Cryptocurrencies"
It looks that Bitcoin is on its' way to reach ATH this year! Actually, how it is rallying, maybe it will do it in this month... But, we will see how it goes... My personal opinion is that it is just a matter of time, and I have the patience to wait... But, how about you? And not just you, but others that are coming (back) into the cryptocurrency world?
image created in canva.com
Two types of crypto people
In general, there are two types of people... The first type is people who were here in the last bull run, and who were here during "the hard times", or better called, "accumulation time"... If you were here BEFORE the last bull run 3-4 years ago than you KNOW the full crypto cycle.
So, what we were doing all this time? Well, personally, when altcoins started to go downfall I have stopped cashing out... As I was mining #Ethereum, I was paying my bills, food, and other stuff with PART of my earnings, leaving the other part for accumulation... But, as I said, when the decline started, I stopped to cash out... That was the beginning of my accumulation period, in which I am still at the moment...
But, I didn't do the same with all the cryptocurrencies that I bought in that crazy time... I have sold some, and some of them I didn't and still have them in my wallets... We will come back later to them...
The second type of people is seasonal crypto enthusiasts... They would like to be part of this everything, but only in that part when markets are in GREEN and their investment is going up... They have come to space last time when Bitcoin was hitting its ATH, and they are coming back right at these moments... and will come even more in the next period...
The "problem" with these people is that they bring a lot of FOMO into space... I mean, FOMO is always present, and it can be good in some way, but it is usually the "hard learning school"... I was like that in the last bull run when I was rushing into some crypto projects that were just a pump and dump coins...
Where are we now?
I would say that we are in the pre-altcoin bull-run phase... And there are a couple of signs that are showing us that... The one is these BTC swings up and down... I don't know if you are noticed, but a couple of months ago, when Bitcoin will go up, altcoins couldn't follow and they were going down... When Bitcoin was going down, altcoins were going down... You get the point, every BTC swing was painful for altcoin as they would react with losing value...
If you check how markets (and altcoins) are doing at the moment, you will notice a difference... When BTC is going up, the MOST of altcoins can't follow and go a bit down, but almost immediately when BTC stops for a bit, alts consolidate themselves and push a bit up... That's something that I find as a good indicator for a healthier altcoin time...
Now, let's go back to the main topic and these other consequences of Bitcoin rally to the ATH... As I said before, I still have some cryptocurrencies that I have bought a couple of years ago, and I'm following their Discord channels... Well, there was almost nothing to follow for the last year or two, but lately, almost EVERY single coin developer has started RIGHT now to update the wallet, or do some "website redesign" thing, or just announce that development is still ON... lol...
It's the smell of the money and the possibility to catch the next wave and milk something from their "successful project" and idea that only their coin can accomplish... Don't get me wrong, there can be some of them that will comeback, but the possibilities are very low that that will happen... To be honest, I have seen some of the coins that have already done the same thing 3 years ago, and this is their "second comeback"!
Over 7700 cryptocurrencies
There are over 7700 cryptocurrencies listed on CMC and most of them are useless or abandoned, but, be aware, a lot of them with "resurrect" with this BTC rally... Be very careful with your investments and please DYOR (do your own research) BEFORE investing in some of the coins...
It's not enough to check how old the coin is... You should check how much development was happening on them during the last year or two, do they have the trading volume at all? On which exchanges? Who are their main competitors and do they have a chance at all to beat them?
Personally, I will try to avoid these coins as I got burned on some of them before and I don't want to experience the same thing again... Will I invest in some new promising project? Probably... But I will invest a lot more time investigating them before making any money investments...
Don't forget to follow, reblog, and browse my Hivepage to stay connected with all the great stuff!
You can also find me on LEO Finance .:. Twitter .:. LBRY
Posted Using LeoFinance Beta
https://twitter.com/ph1103/status/1331343229288112131
This is very interesting detailed analysis. Thank you.
Yes, many altcoins will relaunch with BTC going up to cash in.
I also have some old alt-coins. but not very optimistic on getting something back.
Yes, two thumb rule to follow,
Always do your own research.
Invest only that you are ready to lose.
Posted Using LeoFinance Beta
Luckily, I don't have too much of these "oldies"... But, I have already noticed that 2-3 of them announced some new wallet versions, masternode patches, etc... :) They have the advantage of "being old blockchains" and people fall for that...
!ENGAGE 10
Posted Using LeoFinance Beta
ENGAGEtokens.So much valuable information in this post, which is a must read for a lot of investors/traders that are new to the crypto world. Even though I have been in it for awhile, I am seeing new patterns that the "old time" cryptos are doing, popping back up & acting like they were at the scene the whole time....
It blows my mind how many crypto spam tweets that are circling around as well as supposed crypto "gurus" are doing videos & posts, spewing their "knowledge" (& I use that world lightly lol). However, I am definitely NOT surprised....when the money comes to light, everyone & everything comes out of the woodwork....
I cannot stress how important it is to use critical thinking. Even when I share information I might know about trading, markets or crypto in general, I will always tell people to do their research & see what's the best move for them. I have been fortunate enough not to go through the cons you & others have been through in crypto but I have had losses in regular stock trading. While it wasn't as vast as other trader's losses, it still hurt & then the feeling of anxiety kicks in....not fun!
So, it pays to watch some of these things BEFORE investing. I don't like getting into anything I don't understand. But now having a little BTC, LTC & ETH under my belt, I am excited to see where this all leads...
Let's see BTC go to 20K!! ;) Thanks for this awesome read & I hope there will be more winners in this game than losers... Stay amazing! :) 🧡
Posted Using LeoFinance Beta
And we are just at the beginning... lol... As BTC isn't officially hit the ATH... When that happens, then we will see all the scum, scam, and everything else all over Twitter and other social media...
We have to take double care to not get scammed, as they have become smarter with every next scam...
!ENGAGE 15
Posted Using LeoFinance Beta
ENGAGEtokens.Very informative for someone like me who was not around during the 2017 bull run. Hope I can avoid investing in mushroom coins :)
Well, they know to hide behind the sweet story and promises... The biggest alarm is if they didn't do anything in the last year or two... SKip those coins... :)
Posted Using LeoFinance Beta
I don't know many but I know one that I am staying away from 😇
All shit project will now keep coming to cash in cryptocurrency buzz and fraud the people who might be just starting.
Apart from scam projects we have other common types of fraud that also rises like.
Send one ,Get two.
cloud mining
send some money to claim your BTC.
Mine BTC with secret algo .
etc. etc.
Oh, yes... I forgot about some of these that you have listed... As I didn't use them back in 2017...
But you are right... cloud mining, sending money to get some, etc... Also, there will be probably websites where you can "stake" your coins... With this De-Fi hype, I'm 100% sure that we will see some of the big websites exit scamming...
!ENGAGE 15
Posted Using LeoFinance Beta
ENGAGEtokens.Great article. Those are helpfull informations for someone like me.
Thank you for your kind words! I hope that it will help you to avoid suspicious coins and websites and earn you more money with smarter investing...
Posted Using LeoFinance Beta
I believe that your analysis is spot on when we look at what happened during the last ATH. I see a certain difference that this time around the altcoin season could be limited to a certain number of assets. I mean by now people figured out that there are a lot of scam coins out there and also as you said the portfolio of tokens and coins has drastically increased over time (7700 coins !!!!). I think that the supply of available btc is slowly but surely getting to its limits and people will mainly start to invest in ETH and Defi. The question is which other coins and tokens will be pumping in the next altcoin season?
Not sure about this... As people who are coming back into space have no idea what was going on in the past two-three years... :) And also, as I said in another comment, we will see some new scam ideas around De-Fi hype, for sure...
!ENGAGE 15
Posted Using LeoFinance Beta
ENGAGEtokens.This is a very good description of what is happening in the crypto world over the long term.
I think on the one side there are two words (or the lack thereof...) that can summarize the situation... "consistency" and "patience".
On the other side, there are two other words that can summarize the problem... "greed" and "laziness"...
In the first instance, there needs to be consistency. As you point out, with many of these coins there was no activity during the last 3 - 4 years. But now suddenly all these developers magically come back to life... There is no consistency!
Likewise, many of these "investors/traders" wanted to jump on the bandwagon in the last bull run. Yet there was no proper research done and just a huge lack of knowledge combined with greed and laziness.
You make such an accurate statement when you refer to "the smell of money!
When people get the "smell of money" they sometimes do crazy things!
This is by far the best advice that can be given to anybody who considers investing in any coin...Bitcoin included.
You cannot just rush in and start buying coins just because "Joe Soap" and a whole "flock of sheep" who is blindly following him is shouting out about a lot of money that can be made.
Yes, there is FOMO... but sometimes I get the feeling that people are just too lazy to do their own research. It is much easier to just follow the crowd. Everybody is doing it... so there must be money to be made...and FOMO, as well as greed, start kicking in.
What people also don't realize is that the few who are making good money, are consistent and they've been involved through the dips, through the hard times. They understand what is happening and they have patience and perseverance.
By the time the market is in the GREEN as you put it here, it is normally either too late or it becomes very risky if you don't know what you are doing.
Everybody thinks there is money to be made because of all the hype. Then they lose money either through being greedy and/or a lack of knowledge.
Anyhow, I fully agree with you that Bitcoin is on its way to reaching an ATH this year!
And looking at the Stock-to-Flow model, I think there is a huge potential for growth in 2021.
Despite this, and thinking about what you discuss in your post, I also see many people getting hurt in the process.
I guess it comes down to one question...are you teachable or un-teachable?
If you are un-teachable, I suppose you have to learn the hard way...
Wow! This was only supposed to be a comment, but I got so carried away about this topic I almost ended up leaving a post instead of a comment...sorry about that...lol.
Anyway, thank you for writing about such an important topic and spreading this very, very important message.
Okay... This was a post and not a comment... :) And you can freely create one great post from this!
I will not go deep inside things as we are, obviously on the same page...
I would divide here 2 types of people (again)... Actually, both types are lazy to do research... One type is lazy because it finds it time-consuming, so they just follow...
But the other type is those who think that they aren't "smart enough" to do the research... And that is a big pity as there are a lot of people who CAN, but they have been brain-washed that they can't... I see this a lot in some of my friends (online and offline) and makes me sad... But, the root is again laziness or lack of time... I'm not sure...
Thanks again for your fantastic comment and I hope that you will make some nice money from your knowledge... ;)
!ENGAGE 25
Posted Using LeoFinance Beta
ENGAGEtokens.Thank you for the tokens! I do appreciate it!